DATA Communications Management Corp. Reports Q2 2025 Financial Results

DCM DELIVERS STEADY OPERATING PERFORMANCE AMID CHALLENGING MARKET CONDITIONS

• Revenues were $113.8 million in the second quarter vs. $125.8 million in Q2 2024 
• Gross profit as a percentage of revenues of 26.8% compared to 27.3% in Q2 2024 
• SG&A expenses decreased to $19.9 million vs. $22.5 million in the prior year quarter
• Adjusted EBITDA¹ represented 14.6% of revenue vs. 13.4% in Q2 2024
• Adjusted EBITDA was $16.6 million vs. $16.9 million in Q2 2024 
• Pipeline of new business opportunities continues to grow
• Quarterly dividend of $0.025 per common share declared, payable on September 24, 2025 to shareholders of record  as of September 10, 2025  

¹ Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted net income (loss) and Adjusted net income (loss) as a percentage of revenues are non-IFRS Accounting Standards measures.  For a description of the composition of these and other non-IFRS Accounting Standards measures used in this press release, and a reconciliation to their most comparable IFRS Accounting Standards measure, where applicable, see the information under the heading “Non-IFRS Accounting Standards Measures”, the information set forth on Table 2 and Table 3 herein, and our most recent Management Discussion & Analysis filed on www.sedarplus.ca.

Brampton, Ontario – August 6, 2025 – DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) (“DCM” or  the “Company”), a leading Canadian provider of print and digital solutions that help simplify complex marketing  communications and workflow, today reported second quarter 2025 financial results.

MANAGEMENT COMMENTARY

“Despite challenging market conditions and stronger than expected revenue headwinds in the second quarter, we continued to  deliver solid operating performance with essentially flat adjusted EBITDA and higher adjusted EBITDA margin compared to last  year,” said Richard Kellam, President & CEO of DCM. “Uncertainty about trade policies, including tariffs, the direction of the  economy, and the ongoing labour issues at Canada Post have driven continued market headwinds. These factors have  negatively impacted business confidence, resulting in client budget reductions, delayed orders, and inventory drawdowns. As  such, revenues in the quarter were down 9.5% compared to last year. Given this ongoing uncertainty, the Company has  decided to withdraw all financial guidance until there is greater clarity on these external challenges.” 

“We are well-positioned financially to manage through the current market conditions with our strong cash flow, a disciplined  focus on maintaining margins, and managing overhead costs. We continue to be encouraged by our strong and growing  pipeline of new business opportunities, the highest level of which we’ve seen in years. We expect to more fully realize these  efforts as market conditions improve. Additionally, we have the flexibility to pursue M&A opportunities to strengthen our product  and service offerings and create more value for our clients,” added Kellam. 

DCM continues to be guided by four strategic priorities for 2025: 

▪ Maintain our focus on profitable organic growth 

▪ Deliver a return on our new capital investments

▪ Continue to drive gross margin improvement through operating efficiencies 

▪ Demonstrate agility and adaptability to effectively navigate an uncertain environment. 

OTHER BUSINESS HIGHLIGHTS

Dividend Declaration  

On August 6, 2025, DCM’s board of directors declared a quarterly dividend of $0.025 per common share, payable on  September 24, 2025, to shareholders of record at the close of business on September 10, 2025. This dividend is designated  as an “eligible” dividend for the purpose of the Income Tax Act (Canada) and any similar provincial legislation. 

Normal Course Issuer Bid Commenced 

On June 10, 2025, DCM announced that the Toronto Stock Exchange (the “TSX”) accepted a notice filed by the Company of  its intention to make a normal course issuer bid with respect to its outstanding common shares (the “Common Shares”). The  notice provided that the Company may, during the 12 month period commencing June 12, 2025 and ending no later than June  11, 2026, purchase, through the facilities of the TSX, up to 4,220,210 Common Shares, being approximately 10% of the “public  float” (as such term is defined in the policies of the TSX) of such Common Shares as at May 31, 2025. In June 2025, the  Company repurchased and cancelled 79,400 common shares for total consideration of $0.1 million, including transaction  costs.  

Amended Senior Revolving Credit Facility 

On June 2, 2025, DCM entered into a fourth amended and restated credit agreement (the “Bank Credit Facility”) with a  Canadian chartered bank, extending the maturity date of its senior secured revolving credit facility to May 31, 2028. The Bank  Credit Facility also included an expanded leasing facility to finance future equipment purchases along with a number of  reporting enhancements. 

Amended Senior Term Credit Facility 

On July 17, 2025, a third amended and restated credit agreement with Fiera Private Debt (“FPD”) was entered into to update  certain definitions and incorporate qualitative changes, with no impact to the financial terms of the FPD Facilities.  

Q2 2025 EARNINGS CALL DETAILS

The Company will host a conference call and webcast on Thursday, August 7, 2025 at 9:00 a.m. EST Mr. Kellam and James Lorimer, CFO, will present the second quarter 2025 results followed by a live Q&A. 

Register for the webcast prior to the start of the event: Microsoft Virtual Events Powered by Teams 

All attendees must register for the webinar prior to the call. Please complete the phone field in the form at the above link (prior  to the start of the event) if you wish to dial in. 

The Company’s full results will be posted on its Investor Relations page and on SEDAR+. A video message from Mr. Kellam  will also be posted on the Company’s website. 

Footnotes:  

¹ Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted net income (loss), Adjusted net income (loss) as  percentage of revenues, Net Debt to Adjusted EBITDA and Free cash flow are non-IFRS Accounting Standards measures.  For a description of the composition of these and other non-IFRS Accounting Standards measures used in this press release,  and a reconciliation to their most comparable IFRS Accounting Standards measure, where applicable, see the information  under the heading “Non-IFRS Accounting Standards Measures”, the information set forth on Table 2 and Table 3 herein, and  our most recent Management Discussion & Analysis filed on SEDAR+. 

Please see the below pdf for more information.

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About DATA Communications Management Corp.

DCM is a marketing and business communications partner that helps companies simplify the complex ways they communicate and operate, so they can accomplish more with fewer steps and less effort.  For 65 years, DCM has been serving major brands in vertical markets including financial services, retail, healthcare, energy, other regulated industries, and the public sector.  We integrate seamlessly into our clients’ businesses thanks to our deep understanding of their needs, our technology-enabled solutions, and our end-to-end service offering.  Whether we are running technology platforms, sending marketing messages, or managing print workflows, our goal is to make everything surprisingly simple.

Additional information relating to DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

For further information, contact:

Forward-looking statements

Certain statements in this press release constitute “forward-looking” statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, objectives or achievements of DCM, or industry results, to be materially different from any future results, performance, objectives or achievements expressed or implied by such forward-looking statements.  When used in this press release, words such as “may”, “would”, “could”, “will”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan”, and other similar expressions are intended to identify forward looking statements.  These statements reflect DCM’s current views regarding future events and operating performance, are based on information currently available to DCM, and speak only as of the date of this press release. 

These forward-looking statements involve a number of risks, uncertainties, and assumptions.  They should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such performance or results will be achieved.  Many factors could cause the actual results, performance, objectives or achievements of DCM to be materially different from any future results, performance, objectives or achievements that may be expressed or implied by such forward-looking statements.  We caution readers of this press release not to place undue reliance on our forward-looking statements since a number of factors could cause actual future results, conditions, actions, or events to differ materially from the targets, expectations, estimates or intentions expressed in these forward-looking statements.

The principal factors, assumptions and risks that DCM made or took into account in the preparation of these forward-looking statements and which could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are described in further detail in our Management Discussion and Analysis for the three months ended March 31, 2024, and include but are not limited to the following:

• Our ability to successfully integrate the DCM and MCC businesses and realize anticipated synergies from the combination of those businesses, including revenue and profitability growth from an enhanced offering of products and services, larger customer base and cost reductions;
• The expected annualized synergies that the Company expects to derive from the MCC acquisition have been estimated by the Company based on its experience integrating previously acquired businesses, other facilities and completing previous restructuring initiatives, and includes estimated benefits expected to be derived from the acquisition, including those related to facility sales and consolidations, operational improvements, eliminating redundant positions, and purchasing synergies;
• Our expected total annualized synergies estimates are principally based upon the following material factors and assumptions: (a) given the significant overlap in the nature of the two businesses, DCM will be able to eliminate duplication of overhead expenses across the combined DCM and MCC businesses in its SG&A functions; (b) given significant overlap in the nature of DCM’s and MCC’s production processes and available combined excess capacity, DCM will be able to consolidate manufacturing plants; (c) further operational and SG&A costs savings will be achievable once the above-noted initiatives are completed; (d) the combined business will achieve more favourable purchasing terms by virtue of the fact it is approximately twice the size of each of DCM and MCC pre-acquisition, and therefore able to command lower pricing from vendors based on larger volumes, and its expected ability to better harmonize purchasing strategies to leverage more favourable purchasing terms than each company had individually for similar goods or services; and (e) the combined business will be able to generate certain revenue synergies from cross-selling each other’s broader, combined, suite of capabilities; and
• Such expected annualized cost savings have not been prepared in accordance with IFRS Accounting Standards, nor has a reconciliation to IFRS Accounting Standards been provided, and the Company evaluates its financial performance on the basis of these non-IFRS Accounting Standards measures.  Therefore, the Company does not consider their most comparable IFRS Accounting Standards measures when evaluating prospective acquisitions.

Additional factors are discussed elsewhere in this press release and under the headings “Liquidity and capital resources” and “Risks and Uncertainties” in DCM’s Management Discussion and Analysis and in DCM’s other publicly available disclosure documents, as filed by DCM on SEDAR+ (www.sedarplus.ca).  Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected.  Unless required by applicable securities law, DCM does not intend and does not assume any obligation to update these forward-looking statements.

Non-ifrs accounting standards measures

This press release includes certain non-IFRS Accounting Standards measures, ratios and other financial measures as supplementary information.  This supplementary information does not represent earnings measures recognized by IFRS Accounting Standards and does not have any standardized meanings prescribed by IFRS Accounting Standards.  Therefore, these non-IFRS Accounting Standards measures, ratios and other financial measures are unlikely to be comparable to similar measures presented by other issuers. Investors are cautioned that this supplementary information should not be construed as alternatives to net income (loss) determined in accordance with IFRS Accounting Standards as an indicator of DCM’s performance.  Definitions of such supplementary information, together with a reconciliation of net income (loss) to such supplementary financial measures, can be found in Table 4 and Table 5 of our Management Discussion and Analysis for the three months ended March 31, 2024 and filed on SEDAR+ at www.sedarplus.ca.