DCM

DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) (“DCM” or the "Company"), a provider of marketing and business communication solutions to companies across North America, is pleased to report continued momentum in the third quarter of 2022 with revenue up +11.4%, gross profit up +15.8%, net income up +175.8% and EBITDA1 up +25.7%, compared to the third quarter of 2021, respectively. For the nine months ended September 30, 2022, revenue is up +15.1%, gross profit is up +17.1%, net income is up +201.0%, and EBITDA is up +34.2%, compared to 2021, respectively. Revenue growth has been driven by a combination of expansion revenue with existing clients, and new business wins. Gross margin growth exceeded revenue growth, reflecting the Company’s commitment to operational success and driving higher levels of net income.

THIRD QUARTER 2022 HIGHLIGHTS - BUILDING A BIGGER BUSINESS

• Revenue for Q3 2022 was up 11.4%, or +$6.5 million, vs. Q3 year ago (YA), for total revenues of $63.4 million;
• Gross profit accelerated 15.8%, or +$2.7 million, vs. YA to $19.9 million;
• Gross profit as a percentage of revenues grew 1.2 percentage points to 31.4%, vs. 30.2% YA;
• Net income increased 175.8%, or +$1.8 million, vs. YA to $2.8 million;
• EBITDA grew 25.7%, or +$1.6 million, vs. YA to $8.0 million;
• No restructuring expenses or other “adjustments” to EBITDA in the third quarter of 2022. The Company’s current outlook anticipates no restructuring charges in the balance of fiscal 2022;
• Term debt lower by 26.2%, or -$8.9 million, vs. year end 2021 to $25.1 million;
• Basic and diluted EPS of $0.06, compared with $0.02 in third quarter of 2021.

THIRD QUARTER 2022 OPERATIONAL HIGHLIGHTS – BUILDING A BETTER BUSINESS

• We have been awarded more than $30 million of new business year to date, a combination of expansion revenue with existing clients and new business wins, and our tech-enabled services pipeline remains strong;
• With regards to ESG, we are pleased to report we have reforested almost 470,000 trees in connection with our PrintReleaf initiative, offsetting one hundred percent of our clients’ paper usage;
• Productivity improvements continued, with revenue per associate reaching $287,800, up more than 40% over the last five years.

MANAGEMENT COMMENTARY

"I’m happy to report that the positive momentum in our business has continued, with strong third quarter results," says Richard Kellam, CEO and President of DCM.

"We continue to make positive progress on our digital journey. Substantially all our new business wins are tech-enabled solutions. And we’ve secured more than $30 million of new business, both from new clients and expansion revenue with current clients, through the first nine months of 2022. Our pipeline of business continues to be strong."

"Our team’s focused efforts at managing a highly volatile raw material market are paying off with positive trends in gross margin, further highlighting our operational success. Our operational effectiveness initiatives are expected to continue to deliver continued improvements in productivity per associate."

"I would like to thank the entire DCM for a strong quarter and first nine months of 2022, and a special big thanks to the team’s continued, relentless focus on building both a better and a bigger business. Results like these only come when everyone is moving forward together. And finally, I would also like to thank our clients for continuing to trust DCM with their complex communication and workflow needs."

THIRD QUARTER 2022 EARNINGS CALL

The Company will host a conference call and webcast on Wednesday, November 9, 2022, at 9.00 a.m. Eastern time. Mr. Kellam, and James Lorimer, CFO, will present the third quarter 2022 results followed by a live Q&A period.

Instructions on how to access both the webcast and telephone call are available below. For those unable to join live, a replay of the webcast will be available on the DCM Investor Relations page.

DCM will be using Microsoft Teams to broadcast our earnings call, which will be accessible via the options below:

Join on your computer or mobile app Click here to join the meeting

Or call in (audio only) +1 647-749-9154,,52984123# Canada, Toronto Phone Conference ID: 529 841 23#

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

TABLE 1 The following table sets out selected historical consolidated financial information for the periods noted.

For the periods ended September 30, 2022 and 2021

July 1 to September 30, 2022

 

July 1 to September 30, 2021

 

January 1 to September 30, 2022

 

January 1 to September 30, 2021

(in thousands of Canadian dollars, except share and per share amounts, unaudited)

 

 

 

 

(Restated)

 

 

 

(Restated)

Revenues

$

63,399

 

 

$

56,892

 

 

$

200,759

 

 

$

174,460

 

 

 

 

 

 

 

 

 

Gross profit

 

19,904

 

 

 

17,187

 

 

 

60,670

 

 

 

51,822

 

 

 

 

 

 

 

 

 

Gross profit, as a percentage of revenues

 

31.4

%

 

 

30.2

%

 

 

30.2

%

 

 

29.7

%

 

 

 

 

 

 

 

 

Selling, general and administrative expenses (1)

 

14,864

 

 

 

11,300

 

 

 

42,289

 

 

 

40,527

 

As a percentage of revenues

 

23.4

%

 

 

19.9

%

 

 

21.1

%

 

 

23.2

%

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

7,988

 

 

 

9,437

 

 

 

26,914

 

 

 

26,016

 

As a percentage of revenues

 

12.6

%

 

 

16.6

%

 

 

13.4

%

 

 

14.9

%

 

 

 

 

 

 

 

 

Net income for the period

 

2,816

 

 

 

1,021

 

 

 

10,286

 

 

 

3,417

 

 

 

 

 

 

 

 

 

Adjusted net income

 

2,816

 

 

 

3,345

 

 

 

10,286

 

 

 

7,879

 

As a percentage of revenues

 

4.4

%

 

 

5.9

%

 

 

5.1

%

 

 

4.5

%

 

 

 

 

 

 

 

 

Basic earnings per share

$

0.06

 

 

$

0.02

 

 

$

0.23

 

 

$

0.08

 

Diluted earnings per share

$

0.06

 

 

$

0.02

 

 

$

0.22

 

 

$

0.08

 

Weighted average number of common shares outstanding, basic

 

44,062,831

 

 

 

44,056,907

 

 

 

44,062,831

 

 

 

43,970,128

 

Weighted average number of common shares outstanding, diluted

 

46,501,606

 

 

 

46,477,944

 

 

 

46,516,249

 

 

 

46,025,059

 

(1) SG&A and deferred income tax expense include the impact of the IFRS Interpretations Committee’s agenda decision regarding configuration or customization costs in a cloud computing arrangement. Prior periods have been retrospectively restated to derecognize previously capitalized costs in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Refer to note 3 of the condensed interim consolidated financial statements for the period ended September 30, 2022 for further details on the impact of the amended accounting standard.

TABLE 2 The following table provides reconciliations of net income to EBITDA and of net income to Adjusted EBITDA for the periods noted.

EBITDA and Adjusted EBITDA reconciliation

For the periods ended September 30, 2022 and 2021

 

July 1 to September 30, 2022

July 1 to September 30, 2021

January 1 to September 30, 2022

January 1 to September 30, 2021

(in thousands of Canadian dollars, unaudited)

 

 

 

 

(Restated)

 

(Restated)

Net income for the period (1)

 

$

2,816

 

$

1,021

 

$

10,286

$

3,417

 

 

 

 

 

 

 

Interest expense, net

 

 

1,233

 

 

1,587

 

 

3,831

 

4,715

 

Amortization of transaction costs

 

 

84

 

 

117

 

 

257

 

438

 

Current income tax expense

 

 

1,143

 

 

383

 

 

3,803

 

2,055

 

Deferred income tax (recovery) expense (1)

 

 

(236

)

 

(121

)

 

204

 

(784

)

Depreciation of property, plant and equipment

 

 

760

 

 

820

 

 

2,321

 

2,402

 

Amortization of intangible assets (1)

 

 

402

 

 

445

 

 

1,213

 

1,308

 

Depreciation of the ROU Asset

 

 

1,786

 

 

2,101

 

 

4,999

 

6,508

 

EBITDA

 

$

7,988

 

$

6,353

 

$

26,914

$

20,059

 

Restructuring expenses

 

 

—

 

 

3,084

 

 

—

 

7,409

 

Other income

 

 

—

 

 

—

 

 

—

 

(1,452

)

Adjusted EBITDA

 

$

7,988

 

$

9,437

 

$

26,914

$

26,016

 

(1) SG&A and deferred income tax expense include the impact of the IFRS Interpretations Committee’s agenda decision regarding configuration or customization costs in a cloud computing arrangement. Prior periods have been retrospectively restated to derecognize previously capitalized costs in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Refer to note 3 of the condensed interim consolidated financial statements for the period ended September 30, 2022 for further details on the impact of the amended accounting standard.

TABLE 3 The following table provides reconciliations of net income to Adjusted net income and a presentation of Adjusted net income per share for the periods noted.

Adjusted net income reconciliation

For the periods ended September 30, 2022 and 2021

 

July 1 to September 30, 2022

July 1 to September 30, 2021

January 1 to September 30, 2022

January 1 to September 30, 2021

(in thousands of Canadian dollars, except share and per share amounts, unaudited)

 

 

 

(Restated)

 

(Restated)

Net income for the period (1)

 

$

2,816

 

1,021

 

$

10,286

$

3,417

 

 

 

 

 

 

 

Restructuring expenses

 

 

—

 

3,084

 

 

—

 

7,409

 

Other income

 

 

—

 

—

 

 

—

 

(1,452

)

Tax effect of the above adjustments

 

 

—

 

(760

)

 

—

 

(1,495

)

Adjusted net income

 

$

2,816

$

3,345

 

$

10,286

$

7,879

 

 

 

 

 

 

 

Adjusted net income per share, basic

 

$

0.06

$

0.08

 

$

0.23

 

0.18

 

Adjusted net income per share, diluted

 

$

0.06

$

0.07

 

$

0.22

 

0.17

 

(1) SG&A and deferred income tax expense include the impact of the IFRS Interpretations Committee’s agenda decision regarding configuration or customization costs in a cloud computing arrangement. Prior periods have been retrospectively restated to derecognize previously capitalized costs in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Refer to note 3 of the condensed interim consolidated financial statements for the period ended September 30, 2022 for further details on the impact of the amended accounting standard.

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 over 60 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, transformative tech-enabled solutions, and end-to-end service offering. Whether we’re 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.

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 and 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. The principal factors, assumptions and risks that DCM made or took into account in the preparation of these forward-looking statements include: the COVID-19 Pandemic has adversely affected, and may continue to adversely effect, our business, operating results and financial condition and this continuing adverse effect could be material; there is limited growth in the traditional printing business, which may impact our ability to grow our sales or even maintain historical levels of sales of printed business communications documents; increases in the cost of, and supply constraints related to, paper, ink and other raw material inputs used by DCM, as well as increases in freight costs, may adversely impact the availability of raw materials and our production, revenues and profitability; our ability to continue as a going concern is dependent upon management’s ability to meet forecast revenue and profitability targets for at least the next twelve months in order to comply with our financial covenants under its credit facilities or to obtain financial covenant waivers from our lenders if necessary; we may not be successful in obtaining capital to fund our business plans on satisfactory terms (or at all), including, without, limitation, with respect to investments in digital innovation (such as the development and successful marketing and sale of new digital capabilities), capital expenditures, and potential acquisitions; all of our outstanding indebtedness under our bank credit facility is subject to floating interest rates, and therefore is subject to fluctuations in interest rates; our credit agreements governing our senior indebtedness contain numerous restrictive covenants that limit us with respect to certain business matters, including, without limitation, our ability to incur additional indebtedness, re-pay certain indebtedness, pay dividends, make investments, sell or otherwise dispose of assets and merge or consolidate with another entity; we may not be able to successfully implement our digital growth strategy on a timely basis or at all; competition from competitors supplying similar products and services, some of whom have greater economic resources than us and are well-established suppliers; and our operating results are sensitive to economic conditions, which can have a significant impact on us, and uncertain economic conditions may have a material adverse effect on our business, results of operations and financial condition, including, without limitation, our ability to realize the benefits expected from restructuring and business reorganization initiatives, reducing costs, and reducing and paying our long-term debt. 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’s discussion and analysis and in DCM’s other publicly available disclosure documents, as filed by DCM on SEDAR (www.sedar.com). 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 MEASURES

This press release includes certain non-IFRS measures as supplementary information. Except as otherwise noted, when used in this press release, EBITDA means earnings before interest and finance costs, taxes, depreciation and amortization and Adjusted EBITDA means EBITDA adjusted for restructuring expenses, and one-time business reorganization costs. Adjusted net income (loss) means net income (loss) adjusted for restructuring expenses, onetime business reorganization costs, and the tax effects of those items. Adjusted net income (loss) per share (basic and diluted) is calculated by dividing Adjusted net income (loss) for the period by the weighted average number of common shares of DCM (basic and diluted) outstanding during the period. Adjusted EBITDA as a percentage of revenues means Adjusted EBITDA divided by revenues and Adjusted net income (loss) as a percentage of revenues means adjusted net income (loss) divided by revenue, in each case for the same period. In addition to net income (loss), DCM uses non-IFRS measures and ratios, including Adjusted net income (loss), Adjusted net income (loss) per share, Adjusted net income (loss) as a percentage of revenues, EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of revenues to provide investors with supplemental measures of DCM’s operating performance and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. DCM also believes that securities analysts, investors, rating agencies and other interested parties frequently use non-IFRS measures in the evaluation of issuers. DCM’s management also uses non-IFRS measures in order to facilitate operating performance comparisons from period to period, prepare annual operating budgets and assess its ability to meet future debt service, capital expenditure and working capital requirements. Adjusted net income (loss), Adjusted net income (loss) per share, EBITDA and Adjusted EBITDA are not earnings measures recognized by IFRS and do not have any standardized meanings prescribed by IFRS. Therefore, Adjusted net income (loss), Adjusted net income (loss) per share, EBITDA and Adjusted EBITDA are unlikely to be comparable to similar measures presented by other issuers.

Investors are cautioned that Adjusted net income (loss), Adjusted net income (loss) per share, EBITDA and Adjusted EBITDA should not be construed as alternatives to net income (loss) determined in accordance with IFRS as an indicator of DCM’s performance. For a reconciliation of net income (loss) to EBITDA and a reconciliation of net income (loss) to Adjusted EBITDA, see Table 3 in the most recent Management's Discussion & Analysis filed on www.sedar.com. For a reconciliation of net income (loss) to Adjusted net income (loss) and a presentation of Adjusted net income (loss) per share, see Table 4 in the Company's most recent Management's Discussion & Analysis filed on www.sedar.com.

Condensed interim consolidated statements of financial position

 

 

 

(in thousands of Canadian dollars, unaudited)

September 30, 2022

 

December 31, 2021

 

$

 

$

 

 

 

(Restated)

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

1,945

 

 

$

901

 

Trade receivables

 

54,332

 

 

 

51,567

 

Inventories

 

21,355

 

 

 

12,133

 

Prepaid expenses and other current assets

 

2,614

 

 

 

2,580

 

Income taxes receivable

 

14

 

 

 

860

 

 

 

80,260

 

 

 

68,041

 

Non-current assets

 

 

 

Other non-current assets

 

519

 

 

 

625

 

Deferred income tax assets

 

5,479

 

 

 

5,465

 

Restricted cash

 

—

 

 

 

515

 

Property, plant and equipment

 

6,899

 

 

 

8,416

 

Right-of-use assets

 

33,190

 

 

 

33,476

 

Pension assets

 

652

 

 

 

2,531

 

Intangible assets

 

2,904

 

 

 

4,042

 

Goodwill

 

16,973

 

 

 

16,973

 

 

$

146,876

 

 

$

140,084

 

 

 

 

 

Liabilities

 

 

 

Current liabilities

 

 

 

Trade payables and accrued liabilities

$

39,788

 

 

$

37,589

 

Current portion of credit facilities

 

13,936

 

 

 

11,743

 

Current portion of lease liabilities

 

6,803

 

 

 

6,123

 

Provisions

 

1,538

 

 

 

3,280

 

Income taxes payable

 

2,967

 

 

 

841

 

Deferred revenue

 

2,802

 

 

 

3,269

 

 

 

67,834

 

 

 

62,845

 

Non-current liabilities

 

 

 

Provisions

 

—

 

 

 

1,196

 

Credit facilities

 

19,719

 

 

 

24,556

 

Lease liabilities

 

32,247

 

 

 

32,976

 

Pension obligations

 

6,080

 

 

 

7,499

 

Other post-employment benefit plans

 

3,040

 

 

 

2,971

 

 

$

128,920

 

 

$

132,043

 

 

 

 

 

Equity

 

 

 

Shareholders’ equity

 

 

 

Shares

$

256,478

 

 

$

256,478

 

Warrants

 

869

 

 

 

881

 

Contributed surplus

 

3,041

 

 

 

2,791

 

Translation Reserve

 

210

 

 

 

173

 

Deficit

 

(242,642

)

 

 

(252,282

)

 

$

17,956

 

 

$

8,041

 

 

$

146,876

 

 

$

140,084

 

Condensed interim consolidated statements of operations

 

 

(in thousands of Canadian dollars, except per share amounts, unaudited)

For the three months ended September 30, 2022

 

For the three months ended September 30, 2021

 

$

 

$

 

 

 

(Restated)

 

 

 

 

Revenues

$

63,399

 

 

$

56,892

 

 

 

 

 

Cost of revenues

 

43,495

 

 

 

39,705

 

 

 

 

 

Gross profit

 

19,904

 

 

 

17,187

 

 

 

 

 

Expenses

 

 

 

Selling, commissions and expenses

 

7,175

 

 

 

5,516

 

General and administration expenses

 

7,689

 

 

 

5,784

 

Restructuring expenses

 

—

 

 

 

3,084

 

 

 

14,864

 

 

 

14,384

 

 

 

 

 

Income before finance costs, other income and income taxes

 

5,040

 

 

 

2,803

 

 

 

 

 

Finance costs

 

 

 

Interest expense on long term debt and pensions, net

 

676

 

 

 

988

 

Interest expense on lease liabilities

 

557

 

 

 

599

 

Amortization of transaction costs

 

84

 

 

 

117

 

 

 

1,317

 

 

 

1,704

 

Other income

 

 

 

Government grant income

 

—

 

 

 

184

 

 

 

 

 

Income before income taxes

 

3,723

 

 

 

1,283

 

 

 

 

 

Income tax expense

 

 

 

Current

 

1,143

 

 

 

383

 

Deferred

 

(236

)

 

 

(121

)

 

 

907

 

 

 

262

 

 

 

 

 

Net Income for the period

$

2,816

 

 

$

1,021

 

Other comprehensive income:

 

 

 

 

Items that may be reclassified subsequently to net income

 

 

 

Foreign currency translation

 

24

 

 

 

42

 

 

 

24

 

 

 

42

 

Items that will not be reclassified to net income

 

 

 

Re-measurements of pension and other post-employment benefit obligations

 

(1,346

)

 

 

540

 

Taxes related to pension and other post-employment benefit adjustment above

 

337

 

 

 

(126

)

 

 

(1,009

)

 

 

414

 

Other comprehensive (loss) income for the period, net of tax

$

(985

)

 

$

456

 

Comprehensive income for the period

$

1,831

 

 

$

1,477

 

 

 

 

 

Basic earnings per share

$

0.06

 

 

$

0.02

 

 

 

 

 

Diluted earnings per share

$

0.06

 

 

$

0.02

 

Condensed interim consolidated statements of operations

 

 

(in thousands of Canadian dollars, except per share amounts, unaudited)

For the nine months ended September 30, 2022

 

For the nine months ended September 30, 2021

 

$

 

$

 

 

 

(Restated)

 

 

 

 

Revenues

$

200,759

 

 

$

174,460

 

 

 

 

 

Cost of revenues

 

140,089

 

 

 

122,638

 

 

 

 

 

Gross profit

 

60,670

 

 

 

51,822

 

 

 

 

 

Expenses

 

 

 

Selling, commissions and expenses

 

21,467

 

 

 

18,319

 

General and administration expenses

 

20,822

 

 

 

22,208

 

Restructuring expenses

 

—

 

 

 

7,409

 

 

 

42,289

 

 

 

47,936

 

 

 

 

 

Income before finance costs, other income and income taxes

 

18,381

 

 

 

3,886

 

 

 

 

 

Finance costs

 

 

 

Interest expense on long term debt and pensions, net

 

2,146

 

 

 

2,794

 

Interest expense on lease liabilities

 

1,685

 

 

 

1,921

 

Amortization of transaction costs

 

257

 

 

 

438

 

 

 

4,088

 

 

 

5,153

 

Other income

 

 

 

Government grant income

 

—

 

 

 

4,503

 

Other income

 

—

 

 

 

1,452

 

 

 

 

 

Income before income taxes

 

14,293

 

 

 

4,688

 

 

 

 

 

Income tax expense

 

 

 

Current

 

3,803

 

 

 

2,055

 

Deferred

 

204

 

 

 

(784

)

 

 

4,007

 

 

 

1,271

 

 

 

 

 

Net income for the period

$

10,286

 

 

$

3,417

 

 

 

 

 

Other comprehensive income:

 

 

 

Items that may be reclassified subsequently to net income

 

 

 

Foreign currency translation

 

37

 

 

 

(9

)

 

 

37

 

 

 

(9

)

Items that will not be reclassified to net income

 

 

 

Re-measurements of pension and other post-employment benefit obligations

 

(864

)

 

 

2,001

 

Taxes related to pension and other post-employment benefit adjustment above

 

218

 

 

 

(488

)

 

 

(646

)

 

 

1,513

 

 

 

 

 

Other comprehensive (loss) income for the period, net of tax

$

(609

)

 

$

1,504

 

 

 

 

 

Comprehensive income for the period

$

9,677

 

 

$

4,921

 

 

 

 

 

Basic earnings per share

$

0.23

 

 

$

0.08

 

 

 

 

 

Diluted earnings per share

$

0.22

 

 

$

0.07

 

Condensed interim consolidated statements of cash flows

 

(in thousands of Canadian dollars, unaudited)

For the nine months ended September 30, 2022

 

For the nine months ended September 30, 2021

 

$

 

$

 

 

 

(Restated)

Cash provided by (used in)

 

 

 

 

 

 

 

Operating activities

 

 

 

Net income for the period

$

10,286

 

 

$

3,417

 

Items not affecting cash

 

 

 

Depreciation of property, plant and equipment

 

2,321

 

 

 

2,402

 

Amortization of intangible assets

 

1,213

 

 

 

1,308

 

Depreciation of right-of-use-assets

 

4,999

 

 

 

6,508

 

Interest expense on lease liabilities

 

1,685

 

 

 

1,921

 

Share-based compensation expense

 

238

 

 

 

420

 

Pension expense

 

327

 

 

 

358

 

Loss on disposal of property, plant and equipment

 

68

 

 

 

—

 

Provisions

 

—

 

 

 

7,409

 

Amortization of transaction costs

 

257

 

 

 

438

 

Accretion of non-current liabilities, capitalized interest expense and accretion of debt modification losses

 

120

 

 

 

64

 

Other post-employment benefit plans expense

 

204

 

 

 

104

 

Income tax expense

 

4,007

 

 

 

1,271

 

 

 

25,725

 

 

 

25,620

 

Changes in working capital

 

(10,072

)

 

 

2,033

 

Contributions made to pension plans

 

(731

)

 

 

(692

)

Contributions made to other post-employment benefit plans

 

(135

)

 

 

—

 

Provisions paid

 

(2,938

)

 

 

(5,226

)

Income taxes paid

 

(831

)

 

 

(1,035

)

 

 

11,018

 

 

 

20,700

 

 

 

 

 

Investing activities

 

 

 

Purchase of property, plant and equipment

 

(928

)

 

 

(615

)

Purchase of intangible assets

 

(75

)

 

 

(1,076

)

Proceeds on disposal of property, plant and equipment

 

56

 

 

 

—

 

 

 

(947

)

 

 

(1,691

)

 

 

 

 

Financing activities

 

 

 

Exercise of warrants

 

—

 

 

 

118

 

Decrease in restricted cash

 

515

 

 

 

—

 

Proceeds from credit facilities

 

5,900

 

 

 

—

 

Repayment of credit facilities

 

(8,921

)

 

 

(10,277

)

Repayment of promissory notes

 

—

 

 

 

(2,185

)

Lease payments

 

(6,574

)

 

 

(8,503

)

 

 

(9,080

)

 

 

(20,847

)

 

 

 

 

Change in Cash and cash equivalents during the period

 

991

 

 

 

(1,838

)

Cash and cash equivalents – beginning of period

$

901

 

 

$

578

 

Effects of foreign exchange on cash balances

 

53

 

 

 

(5

)

Cash and cash equivalents (Bank overdraft) – end of period

$

1,945

 

 

$

(1,265

)

________________ 1 Note: EBITDA and Adjusted EBITDA are not earnings measures recognized by International Financial Reporting Standards (IFRS), do not have any standardized meanings prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. EBITDA and Adjusted EBITDA should not be construed as alternatives to net income (loss) determined in accordance with IFRS as an indicator of DCM’s performance. For a description of the composition of EBITDA and Adjusted EBITDA, why we believe such measures are useful to investors and how we use those measures in our business, together with a quantitative reconciliation of net income (loss) to EBITDA and Adjusted EBITDA, respectively, see the information under the heading “Non-IFRS Measures” and Table 3 of DCM’s management’s discussion and analysis (MD&A) dated November 8, 2022 for the period ended September 30, 2022.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221108006208/en/

For further information, contact Mr. Richard Kellam President and Chief Executive Officer DATA Communications Management Corp. Tel: (905) 791-3151

Mr. James E. Lorimer Chief Financial Officer DATA Communications Management Corp. Tel: (905) 791-3151 ir@datacm.com