DATA Communications Management Corp. (TSX: DCM) (“DCM” or the
"Company"), a leading provider of marketing and business
communication solutions to companies across North America,
announces its consolidated financial results for the year ended
December 31, 2021.
FISCAL 2021 AND FOURTH QUARTER 2021 HIGHLIGHTS
- Total revenues in fiscal 2021 were $235.3 million. Revenue in
the second half of 2021 was flat vs. the prior year, while revenue
in the first half of 2021 was down 16.8% compared to the first half
of 2020, evidence that our business has stabilized. Our core print
and technology revenue was up 10.3% in the second half of the year
compared to the prior year, excluding COVID-related resales and
other product resales from total revenue. The business is well
positioned for recovery as consumer movements continue to
accelerate.
- Fourth quarter revenue of $60.9 million was up from $60.6
million in the comparable period in 2020. The fourth quarter of
2021 represented the second sequential quarter of revenue growth,
with revenue up 7.0% compared to the third quarter of 2021, which
in turn was up 3.1% compared to the second quarter of 2021. This
positive trend is expected to continue as we enter the first
quarter of the new year, which is typically the seasonally
strongest quarter for DCM.
- Gross margin in 2021 was 29.5% of revenue, and gross profit was
$69.5 million compared to 28.1% and $72.9 million, respectively, in
the prior year. Gross profit was up 10.2% in the second half of
2021 compared to the prior year. Our continued focus on operational
excellence, factory consolidation, client mix, and revenue
management are contributing to these positive trends in gross
margin.
- Gross profit in the fourth quarter of $17.7 million (29.1% of
revenue) was up 18.0% compared to $15.0 million (24.8% of revenue)
in the same period in 2020. This positive trend mirrored the
sequential quarterly revenue growth we experienced, with gross
profit up 2.9% compared to the third quarter, which in turn was up
8.9% compared to Q2.
- SG&A expenses in the year were $56.0 million, down 0.9%
from $56.5 million in the prior year. Excluding mark-to-market
expenses for RSUs and DSUs of $3.5 million ($1.9 million in 2020)
and a one-time non-cash $1.5 million charge for the write-down of
intangible assets due to a strategy change on the treatment of
internally developed software, total SG&A would otherwise have
declined by $3.6 million.
- SG&A expenses in the fourth quarter of 2021 were $15.4
million, compared to $12.4 million in 2020; excluding the effects
of the non-cash mark-to-market expenses and intangible asset
write-down, SG&A expenses would have increased only $1.3
million, related to higher selling and commission expenses.
- Net income was $1.6 million compared with a net income of $13.3
million in the prior year; net loss in the quarter was $1.9
million, compared to net income of $3.4 million. Lower government
grant income and higher restructuring expenses accounted for much
of the difference in 2021. The Company is not expecting any
material restructuring expenses in 2022.
- Adjusted EBITDA was $33.3 million or 14.1% of revenue in 2021,
compared to $41.5 million or 16.0% of revenue in the prior year.
Excluding the CEWS and CERS grant income during the year of $4.6
million for 2021 and $10.7 million for 2020, Adjusted EBITDA would
be $28.7 million, compared to $30.8 million in the prior year. On
this basis,
Adjusted EBITDA in the second half of 2021 would be $16.4
million, up 33.9% from $12.3 million in the first half of 2021.
Further adjusting for RSU and DSU mark-to-market expenses would
result in adjusted EBITDA of $34.3 million in 2021, compared to
$32.7 million in 2020.
- Adjusted EBITDA was $7.3 million or 11.9% of revenue in the
fourth quarter of 2021, compared to $7.4 million (12.2% of revenue)
in the comparable period. Deducting the benefits of government
grant income, adjusted EBITDA would be $7.2 million, compared to
$5.6 million, or an increase of 28.6%.
- EBITDA, Adjusted EBITDA and Adjusted EPS 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 March 24, 2022 for the year ended December 31,
2021.
- Basic and diluted EPS of $0.04 and $0.03, respectively in 2021,
compared with $0.31 in 2020; basic and diluted Adjusted EPS of
$0.17 in 2021 compared with $0.37 and $0.36 in 2020, respectively.
Adjusted EPS in the fourth quarter 2021 of $0.00, compared to
$0.08. Please see "Non-IFRS Measures" and Table 3 below.
2021 OPERATIONAL HIGHLIGHTS – BUILDING A BETTER
BUSINESS
- Continued progress at driving productivity improvements. Total
employee count at the end of 2021 was 922, down 14.5% from the
prior year, and down 34.7% since 2017. Revenue per employee of
$255,200 this year grew by 6.1% compared to $240,600 last year, and
is up 24.4% since 2017.
- The leadership team was streamlined to deliver accelerated
decision-making. Six senior positions were eliminated in total this
year along with two full layers of management, and spans of
responsibility were increased across the company.
- The consolidation of our Mississauga and Edmonton facilities
was completed, which, along with other operating expense savings
are expected to deliver $3.5 million in annualized savings.
Further, accelerating the move to a hybrid work environment with
reduced offices, combined with our leadership optimization and
other headcount reductions, we are expecting to deliver an
annualized $11.4 million in overhead savings.
- Continued progress paying down debt; total debt stood at $37.0
million at the end of 2021 down 23% from 2020, and down more than
50% since a recent high at the end of 2019. The refinancing of our
subordinated debt facility was completed in the fourth quarter, and
is expected to reduce interest expenses by approximately $1.5
million in 2022 alone.
- We also completed a number of other key initiatives, some of
which include: associate engagement, client engagement, the
introduction of an environmental, social and governance strategy,
and further development of our internal analytics and
reporting.
- Focus on “digital first” strategy was implemented during the
year, with a current sales pipeline exceeding $10 million for
digital asset management and related technology-services
opportunities, spanning more than 50 clients.
MANAGEMENT COMMENTARY
"We are very pleased with the progress we made in 2021. Since I
joined DCM on March 8, 2021, we’ve implemented a clear strategy to
move from a “print first” company to a “digital first” company with
a clear five-year strategic plan to drive our execution," said
Richard Kellam, CEO and President of DCM. "We believe we are very
well positioned for growth, given our clarity of strategy, our
positioning in the marketplace, the strength of our team, and
importantly the positive results we delivered in the second half of
2021, and specifically the fourth quarter. In my 36 years in
business, I’ve always found that momentum builds momentum. We are
very excited about the future of DCM."
FISCAL 2021 AND FOURTH QUARTER EARNINGS CALL
The Company will host a conference call and webcast to review
Fiscal 2021 and Q4 2021 results on Friday, March 25, 2022 at 9.00
a.m. Eastern time. DCM will be using Microsoft Teams to broadcast
the 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,,242779691# Canada,
Toronto Phone Conference ID: 242 779 691#
The Company’s full results will be posted on its Investor
Relations page and on www.sedar.com. A video message from Richard
Kellam, DCM’s President and CEO will 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 December 31, 2021
and 2020
October 1 to December 31,
2021
October 1 to December 31,
2020
January 1 to December 31,
2021
January 1 to December 31,
2020
(in thousands of Canadian dollars, except
share and per share amounts, unaudited)
(Restated)
(Restated)
Revenues
$
60,871
$
60,589
$
235,331
$
259,314
Gross profit
17,713
15,008
69,535
72,942
Gross profit, as a percentage of
revenues
29.1
%
24.8
%
29.5
%
28.1
%
Selling, general and administrative
expenses (1)
15,431
12,375
55,957
56,481
As a percentage of revenues
25.4
%
20.4
%
23.8
%
21.8
%
Adjusted EBITDA
7,270
7,387
33,286
41,476
As a percentage of revenues
11.9
%
12.2
%
14.1
%
16.0
%
Net income for the period/year
(1,857
)
3,374
1,565
13,299
Adjusted net income
(200
)
3,946
7,684
15,766
As a percentage of revenues
(0.3
) %
6.5
%
3.3
%
6.1
%
Basic (loss) earnings per share
$
(0.04
)
$
0.08
$
0.04
$
0.31
Diluted (loss) earnings per
share
$
(0.04
)
$
0.08
$
0.03
$
0.31
Adjusted net income per share, basic
and diluted
$
0.00
$
0.08
$
0.17
$
0.37
Adjusted net income (loss) per share,
diluted
$
0.00
$
0.08
$
0.17
$
0.36
Weighted average number of common
shares outstanding, basic
44,062,831
43,442,668
43,993,494
43,146,866
Weighted average number of common
shares outstanding, diluted
46,439,445
44,258,933
46,136,507
43,316,630
(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 consolidated financial statements
for the year ended December 31, 2021 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 December 31, 2021
and 2020
October 1 to December 31,
2021
October 1 to December 31,
2020
January 1 to December 31,
2021
January 1 to December 31,
2020
(in thousands of Canadian dollars,
unaudited)
(Restated)
(Restated)
Net (loss) income for the period/year
(1)
$
(1,857
)
$
3,374
$
1,565
$
13,299
Interest expense, net
1,124
260
5,839
6,076
Debt modification losses and prepayment
fees
473
78
473
703
Amortization of transaction costs
503
146
941
553
Current income tax expense (recovery)
183
(754
)
2,238
(491
)
Deferred income tax (recovery) expense
(1)
(371
)
561
(1,159
)
4,208
Depreciation of property, plant and
equipment
731
762
3,133
3,541
Amortization of intangible assets (1)
2,282
522
3,589
1,876
Depreciation of the ROU Asset
1,920
1,674
8,428
8,399
EBITDA
$
4,988
$
6,623
$
25,047
$
38,164
Restructuring expenses
2,282
748
9,691
2,821
Other income
—
—
(1,452
)
—
One-time business reorganization costs
(2)
—
16
—
491
Adjusted EBITDA
$
7,270
$
7,387
$
33,286
$
41,476
(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 consolidated financial statements
for the year ended December 31, 2021 for further details on the
impact of the amended accounting standard.
(2) One-time business reorganization costs
include non-recurring headcount reduction expenses for employees
that did not qualify as restructuring costs.
TABLE 3 The following table
provides reconciliations of net (loss) income to Adjusted net
(loss) income and a presentation of Adjusted net (loss) income per
share for the periods noted.
Adjusted net (loss) income
reconciliation
For the periods ended December 31, 2021
and 2020
October 1 to December 31,
2021
October 1 to December 31,
2020
January 1 to December 31,
2021
January 1 to December 31,
2020
(in thousands of Canadian dollars, except
share and per share amounts, unaudited)
(Restated)
(Restated)
Net (loss) income for the period/year
(1)
(1,857
)
$
3,374
1,565
13,299
Restructuring expenses
2,282
748
9,691
2,821
One-time business reorganization costs
(2)
—
16
—
491
Other income
—
—
(1,452
)
—
Tax effect of the above adjustments
(625
)
(192
)
(2,120
)
(845
)
Adjusted net income
(200
)
3,946
7,684
15,766
Adjusted net income per share,
basic
-0.00
0.08
0.17
0.37
Adjusted net income per share,
diluted
-0.00
0.08
0.17
0.36
Weighted average number of common
shares outstanding, basic
44,062,831
43,442,668
43,993,494
43,146,866
Weighted average number of common
shares outstanding, diluted
46,439,445
44,258,933
46,136,507
43,316,630
Number of common shares outstanding,
basic
44,062,831
43,867,030
44,062,831
43,867,030
Number of common shares outstanding,
diluted
46,439,445
44,683,295
46,205,844
44,036,795
(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 consolidated financial statements
for the year ended December 31, 2021 for further details on the
impact of the amended accounting standard.
(2) One-time business reorganization costs
include non-recurring headcount reduction expenses for employees
that did not qualify as restructuring costs.
About DATA Communications Management Corp.
DCM is a leading provider of marketing and workflow solutions
that solve the complex branding, communications, logistics and
regulatory challenges of some of North America’s biggest brands.
Powered by purpose-built technology like our DCMFlex™ workflow
management platform and our ASMBL digital asset management
solution, we help clients bring their brands to life and create
more meaningful connections with customers. We serve market leaders
in key verticals such as financial services, retail, healthcare,
energy, and the public sector, supporting them with marketing
scale, speed, efficiency and insight that drives their
competitiveness and improves their performance.
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: risks relating to the
continuing impact of the COVID-19 pandemic, the impact of which
could be material on DCM’s business, liquidity and results of
operations; increases in the costs of freight, paper, ink, and
other raw material inputs used by DCM in the conduct of its
business; supply chain disruptions which may limit the availability
of raw materials and impact our production and revenues; the
Company's 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
its financial covenants on its credit facilities or to obtain
financial covenant waivers from its lenders if necessary; risks
relating to DCM’s ability to access sufficient capital to fund its
liquidity and business plans, including, without limitation, under
its existing revolving credit facility, on favourable terms or at
all; the risk that DCM will not be successful in negotiating
amendments to the terms of its existing credit facilities
including, without limitation, the financial covenants of DCM under
these facilities; the limited growth in the traditional printing
industry and the potential for further declines in sales of DCM’s
printed business documents relative to historical sales levels for
those products; the risk that changes in the mix of products and
services sold by DCM will adversely affect DCM’s financial results;
the risk that DCM may not be successful in reducing the size of its
legacy print business, realizing the benefits expected from
restructuring and business reorganization initiatives, reducing
costs, reducing and repaying its long term debt, and growing its
digital and marketing communications businesses; the risk that DCM
may not be successful in managing its organic growth; DCM’s ability
to invest in, develop and successfully market new digital and other
products and services; competition from competitors supplying
similar products and services, some of whom have greater economic
resources than DCM and are well-established suppliers; DCM’s
ability to grow its sales or even maintain historical levels of its
sales of printed business documents; the impact of economic
conditions on DCM’s businesses; risks associated with acquisitions
and/or investments in joint ventures by DCM; the failure to realize
the expected benefits from the acquisitions it has made and risks
associated with the integration and growth of such businesses;
DCM’s ability to maintain and grow relationships with its customers
and suppliers; litigation risks; and risks related to a disruption
of operations from adverse labour relations, higher labour costs,
or both. 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,
one-time 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 revenues divided by Adjusted
EBITDA and Adjusted net income (loss) as a percentage of revenues
means revenues divided by adjusted net income (loss), 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.
Consolidated statements of financial
position
(in thousands of Canadian dollars,
unaudited)
December 31, 2021
December 31, 2020
$
$
(Restated)
Assets
Current assets
Cash and cash equivalents
901
578
Trade receivables
51,567
65,290
Inventories
12,133
8,514
Prepaid expenses and other current
assets
2,580
1,521
Income taxes receivable
860
—
68,041
75,903
Non-current assets
Other non-current assets
625
581
Deferred income tax assets
5,465
5,236
Restricted cash
515
515
Property, plant and equipment
8,416
9,783
Right-of-use assets
33,476
42,341
Pension assets
2,531
203
Intangible assets
4,042
6,241
Goodwill
16,973
16,973
140,084
157,776
Liabilities
Current liabilities
Trade payables and accrued liabilities
37,589
39,999
Current portion of credit facilities
11,743
6,172
Current portion of promissory notes
—
1,154
Current portion of lease liabilities
6,123
8,032
Provisions
3,280
1,186
Income taxes payable
841
1,608
Deferred revenue
3,269
2,798
62,845
60,949
Non-current liabilities
Provisions
1,196
90
Credit facilities
24,556
39,567
Promissory notes
—
975
Lease liabilities
32,976
40,321
Deferred income tax liabilities
—
282
Pension obligations
7,499
8,271
Other post-employment benefit plans
2,971
3,507
132,043
153,962
Equity
Shareholders’ equity / (Deficiency)
Shares
256,478
256,260
Warrants
881
850
Contributed surplus
2,791
2,354
Translation reserve
173
192
Deficit
(252,282
)
(255,842
)
8,041
3,814
140,084
157,776
Consolidated statements of
operations
(in thousands of Canadian dollars, except
per share amounts, unaudited)
For the three months ended
December 31, 2021
For the three months ended
December 31, 2020
$
$
(Restated)
Revenues
60,871
60,589
Cost of revenues
43,158
45,581
Gross profit
17,713
15,008
Expenses
Selling, commissions and expenses
6,569
5,385
General and administration expenses
8,862
6,990
Restructuring expenses
2,282
748
17,713
13,123
Income before finance costs, other
income and income taxes
—
1,885
Finance costs
Interest expense, net
1,124
260
Debt modification losses and prepayment
fees
473
78
Amortization of transaction costs
503
146
2,100
484
Other income
Government grant income
55
1,780
(Loss) income before income
taxes
(2,045
)
3,181
Income tax expense
Current
183
(754
)
Deferred
(371
)
561
(188
)
(193
)
Net (loss) Income for the year
(1,857
)
3,374
Basic (loss) earnings per share
(0.04
)
0.08
Diluted (loss) earnings per
share
(0.04
)
0.08
Consolidated statements of
operations
(in thousands of Canadian dollars, except
per share amounts, unaudited)
For the year ended December
31, 2021
For the year ended December 31,
2020
$
$
(Restated)
Revenues
235,331
259,314
Cost of revenues
165,796
186,372
Gross profit
69,535
72,942
Expenses
Selling, commissions and expenses
24,888
26,424
General and administration expenses
31,069
30,057
Restructuring expenses
9,691
2,821
65,648
59,302
Income before finance costs, other
income and income taxes
3,887
13,640
Finance costs
Interest expense on long term debt and
pensions, net
3,318
2,819
Interest expense on lease liabilities
2,521
3,257
Debt modification losses and prepayment
fees
473
703
Amortization of transaction costs
941
553
7,253
7,332
Other income
Government grant income
4,558
10,708
Other income
1,452
—
Income before income taxes
2,644
17,016
Income tax expense
Current
2,238
(491
)
Deferred
(1,159
)
4,208
1,079
3,717
Net income for the year
1,565
13,299
Other comprehensive income:
Items that may be reclassified
subsequently to net income
Foreign currency translation
(19
)
(62
)
(19
)
(62
)
Items that will not be reclassified to
net income
Re-measurements of pension and other
post-employment benefit obligations
2,643
(949
)
Taxes related to pension and other
post-employment benefit adjustment above
(648
)
239
1,995
(710
)
Other comprehensive income (loss) for
the year, net of tax
1,976
(772
)
Comprehensive income for the
year
3,541
12,527
Basic earnings per share
0.04
0.31
Diluted earnings per share
0.03
0.31
Consolidated statements of cash
flows
(in thousands of Canadian dollars,
unaudited)
For the year ended December
31, 2021
For the year ended December 31,
2020
$
$
(Restated)
Cash provided by (used in)
Operating activities
Net income for the year
1,565
13,299
Items not affecting cash
Depreciation of property, plant and
equipment
3,133
3,541
Amortization of intangible assets
3,589
1,876
Depreciation of right-of-use-assets
8,428
8,399
Interest expense on lease liabilities
2,521
3,257
Share-based compensation expense
488
54
Shares issued as payment for services
40
—
Pension expense
480
487
Loss on disposal of property, plant &
equipment
66
—
(Gain) disposal of property, plant, and
equipment
(196)
—
Provisions
9,691
2,821
Amortization of transaction costs and debt
modification losses
1,201
1,256
Accretion of non-current liabilities and
capitalized interest expense
(441)
(972)
Other post-employment benefit plans
expense (gain)
(118)
852
Income tax expense (note 14)
1,079
3,717
31,526
38,587
Changes in working capital
7,135
15,944
Contributions made to pension plans
(970)
(1,116)
Contributions made to other
post-employment benefit plans
(390)
(338)
Provisions paid
(6,491)
(5,623)
Income taxes paid (note 14)
(3,865)
181
26,945
47,635
Investing activities
Purchase of property, plant and
equipment
(1,832)
(268)
Purchase of intangible assets
(1,390)
(571)
Proceeds on disposal of property, plant
and equipment
—
4
(3,222)
(835)
Financing activities
Issuance of common shares and warrants,
net
—
173
Proceeds from credit facilities
21,000
—
Repayment of credit facilities
(30,696)
(32,865)
Exercise of warrants
118
—
Repayment of other liabilities
—
(333)
Repayment of promissory notes
(2,144)
(533)
Transaction costs
(489)
(227)
Lease payments
(11,202)
(11,336)
(23,413)
(45,121)
Change in Cash during the year
310
1,679
Cash and cash equivalents (bank
overdraft) – beginning of year
578
(1,093)
Effects of foreign exchange on cash
balances
13
(8)
Cash and cash equivalents – end of
year
901
578
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220324005919/en/
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
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