DCM Data Communications Management Corp

DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) (“DCM” or the "Company"), a leading provider of marketing and business communication solutions to companies across North America, is pleased to report accelerated momentum in the second quarter of 2022 with revenue up +23.4%, gross profit up +29.0%, net income up +490.7% and EBITDA1 up +48.7%, compared to the second quarter of 2021, respectively. Through the first half of fiscal 2022, revenue is up +16.8%, gross profit is up +17.7%, net income is up +211.8%, and EBITDA is up +38.1%, compared to the first half of 2021, respectively. Strong client demand for the Company's solutions and services is leading this growth.

SECOND QUARTER 2022 HIGHLIGHTS - BUILDING A BIGGER BUSINESS

• Revenue for Q2 2022 was up 23.4%, or +$12.9 million, vs. Q2 year ago (YA), for total revenues of $68.1 million;

• Gross profit accelerated 29.0%, or +$4.6 million, vs. YA to $20.4 million;

• Net income increased 490.7%, or +$3.1 million, vs. YA to $3.8 million;

• EBITDA grew 48.7%, or +$3.1 million, vs. YA to $9.5 million;

• Adjusted EBITDA1 grew 30.0%, or +$2.2 million, vs. YA to $9.5 million;

• No restructuring expenses or other “adjustments” to EBITDA in the second quarter of 2022. The Company’s current outlook anticipates no restructuring charges in the balance of fiscal 2022;

• SG&A expenses decreased by 3.8%, or -$0.5 million, vs. YA to $13.8 million;

• Term debt lower by 17.4%, or -$5.9 million, vs. year end 2021 to $28.1 million;

• Basic and diluted EPS of $0.09 and $0.08, respectively, compared with $0.01 in second quarter of 2021.

SECOND QUARTER 2022 OPERATIONAL HIGHLIGHTS – BUILDING A BETTER BUSINESS

• We have been awarded more than $22 million of new business year to date, from both existing and new clients, and our tech-enabled services pipeline remains strong at +$10 million;

• Thirteen change management projects in place, with the objective to accelerate attainment of our 5-year strategic goals;

• Our first-ever digital lead generation program was introduced, with the intent to help drive commercial sales;

• More than 40 of our clients are now engaged with our PrintReleaf program; and we have reforested over 332,000 trees through this innovative sustainability program, since its introduction last fall.

MANAGEMENT COMMENTARY

"Our second quarter results are further evidence that our unrelenting focus on building both a better and a bigger business is paying off," says Richard Kellam, CEO and President of DCM. "Our positive momentum that started in the second half of 2021 continues – and as you’ve heard me say multiple times before: “momentum builds momentum.” We continue to focus on our strategic shift from a “print first” to a “digital first” company. New client wins, as well as expansion revenues from existing clients are driving this momentum; almost all of which are attributed to our tech-enabled workflow solutions."

“The biggest challenge we currently face in our business is access to raw materials. This has resulted in longer lead times and increased inventory, having an impact on our working capital line of credit. However, our +23.4% revenue growth, +48.7% increase in EBITDA and +490.7% increase in net income, is evidence that this has been a good investment.”

"Our pipeline of business remains strong, and we expect this positive momentum to continue through the balance of 2022. We are seeing ongoing benefits from the operational initiatives we implemented last year, and our constant focus on cost controls continues to help us build a better business."

SECOND QUARTER 2022 EARNINGS CALL

The Company will host a conference call and webcast on Wednesday, August 10, 2022, at 9.00 a.m. Eastern time. Mr. Kellam, and James Lorimer, CFO, will present the second 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, 914477492# Canada, Toronto

Phone Conference ID: 914 477 492#

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 June 30, 2022 and 2021

April 1 to June 30, 2022

April 1 to June 30, 2021

 

January 1 to June 30, 2022

 

January 1 to June 30, 2021

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

 

 

(Restated)

 

 

 

(Restated)

Revenues

$

68,103

$

55,207

 

$

137,360

 

$

117,568

 

 

 

 

 

 

 

Gross profit

 

20,442

 

15,842

 

 

40,766

 

 

34,635

 

 

 

 

 

 

 

Gross profit, as a percentage of revenues

 

30.0 %

 

28.7 %

 

 

29.7 %

 

 

29.5 %

 

 

 

 

 

 

 

Selling, general and administrative expenses (1)

 

13,781

 

14,323

 

 

27,425

 

 

29,227

As a percentage of revenues

 

20.2 %

 

25.9 %

 

 

20.0 %

 

 

24.9 %

 

 

 

 

 

 

 

Adjusted EBITDA

 

9,478

 

7,292

 

 

18,926

 

 

16,579

As a percentage of revenues

 

13.9 %

 

13.2 %

 

 

13.8 %

 

 

14.1 %

 

 

 

 

 

 

 

Net income for the period

 

3,757

 

636

 

 

7,470

 

 

2,396

 

 

 

 

 

 

 

Adjusted net income

 

3,757

 

1,319

 

 

7,470

 

 

4,534

As a percentage of revenues

 

5.5 %

 

2.4 %

 

 

5.4 %

 

 

3.9 %

 

 

 

 

 

 

 

Basic earnings per share

$

0.09

$

0.01

 

$

0.17

 

$

0.05

Diluted earnings per share

$

0.08

$

0.01

 

$

0.16

 

$

0.05

Adjusted net income per share, basic

$

0.09

$

0.03

 

$

0.17

 

$

0.10

Adjusted net income per share, diluted

$

0.08

$

0.03

 

$

0.16

 

$

0.10

Weighted average number of common shares outstanding, basic

 

44,062,831

 

43,926,019

 

 

44,062,831

 

 

43,926,019

Weighted average number of common shares outstanding, diluted

 

46,501,606

 

46,174,209

 

 

46,529,426

 

 

45,750,869

(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 June 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 June 30, 2022 and 2021

 

April 1 to June 30, 2022

April 1 to June 30, 2021

January 1 to June 30, 2022

January 1 to June 30, 2021

(in thousands of Canadian dollars, unaudited)

 

 

 

 

(Restated)

 

(Restated)

Net income for the period (1)

 

$

3,757

$

636

$

7,470

$

2,396

 

 

 

 

 

 

Interest expense, net

 

 

1,343

 

1,716

 

2,598

 

3,128

Amortization of transaction costs

 

 

86

 

176

 

173

 

321

Current income tax expense

 

 

1,522

 

1,126

 

2,660

 

1,672

Deferred income tax (recovery) expense (1)

 

 

(47)

 

(642)

 

440

 

(663)

Depreciation of property, plant and equipment

 

 

781

 

776

 

1,561

 

1,582

Amortization of intangible assets (1)

 

 

403

 

418

 

811

 

863

Depreciation of the ROU Asset

 

 

1,633

 

2,168

 

3,213

 

4,407

EBITDA

 

$

9,478

$

6,374

$

18,926

$

13,706

 

 

 

 

 

 

Restructuring expenses

 

 

—

 

918

 

—

 

4,325

Other income

 

 

—

 

—

 

—

 

(1,452)

Adjusted EBITDA

 

$

9,478

$

7,292

$

18,926

$

16,579

(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 June 30, 2022 for further details on the impact of the amended accounting standard.

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 income reconciliation

For the periods ended June 30, 2022 and 2021

 

April 1 to June 30, 2022

April 1 to June 30, 2021

January 1 to June 30, 2022

January 1 to June 30, 2021

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

 

 

 

(Restated)

 

(Restated)

Net income for the period (1)

 

$

3,757

$

636

$

7,470

$

2,396

 

 

 

 

 

 

Restructuring expenses

 

 

—

 

918

 

—

 

4,325

Other income

 

 

—

 

—

 

—

 

(1,452)

Tax effect of the above adjustments

 

 

—

 

(235)

 

—

 

(735)

Adjusted net income

 

$

3,757

$

1,319

$

7,470

$

4,534

 

 

 

 

 

 

Adjusted net income per share, basic

 

$

0.09

$

0.03

$

0.17

$

0.10

Adjusted net income per share, diluted

 

$

0.08

$

0.03

$

0.16

$

0.10

(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 June 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)

June 30, 2022

 

December 31, 2021

 

$

 

$

 

 

 

(Restated)

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

775

 

$

901

Trade receivables

 

56,812

 

 

51,567

Inventories

 

17,182

 

 

12,133

Prepaid expenses and other current assets

 

2,324

 

 

2,580

Income taxes receivable

 

318

 

 

860

 

 

77,411

 

 

68,041

Non-current assets

 

 

 

Other non-current assets

 

582

 

 

625

Deferred income tax assets

 

4,906

 

 

5,465

Restricted cash

 

—

 

 

515

Property, plant and equipment

 

7,209

 

 

8,416

Right-of-use assets

 

34,694

 

 

33,476

Pension assets

 

1,864

 

 

2,531

Intangible assets

 

3,231

 

 

4,042

Goodwill

 

16,973

 

 

16,973

 

$

146,870

 

$

140,084

 

 

 

 

Liabilities

 

 

 

Current liabilities

 

 

 

Trade payables and accrued liabilities

$

35,570

 

$

37,589

Current portion of credit facilities

 

15,656

 

 

11,743

Current portion of lease liabilities

 

6,800

 

 

6,123

Provisions

 

788

 

 

3,280

Income taxes payable

 

2,591

 

 

841

Deferred revenue

 

2,756

 

 

3,269

 

 

64,161

 

 

62,845

Non-current liabilities

 

 

 

Provisions

 

1,055

 

 

1,196

Credit facilities

 

22,818

 

 

24,556

Lease liabilities

 

33,696

 

 

32,976

Pension obligations

 

6,086

 

 

7,499

Other post-employment benefit plans

 

3,019

 

 

2,971

 

$

130,835

 

$

132,043

 

 

 

 

Equity

 

 

 

Shareholders’ equity / (Deficiency)

 

 

 

Shares

$

256,478

 

$

256,478

Warrants

 

869

 

 

881

Contributed surplus

 

2,951

 

 

2,791

Translation reserve

 

186

 

 

173

Deficit

 

(244,449)

 

 

(252,282)

 

$

16,035

 

$

8,041

 

$

146,870

 

$

140,084

Condensed interim consolidated statements of operations

 

 

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

For the three months ended June 30, 2022

 

For the three months ended June 30, 2021

 

$

 

$

 

 

 

(Restated)

 

 

 

 

Revenues

$

68,103

 

$

55,207

 

 

 

 

Cost of revenues

 

47,661

 

 

39,365

 

 

 

 

Gross profit

 

20,442

 

 

15,842

 

 

 

 

Expenses

 

 

 

Selling, commissions and expenses

 

7,244

 

 

6,137

General and administration expenses

 

6,537

 

 

8,186

Restructuring expenses

 

—

 

 

918

 

 

13,781

 

 

15,241

 

 

 

 

Income before finance costs, other income and income taxes

 

6,661

 

 

601

 

 

 

 

Finance costs

 

 

 

Interest expense on long term debt and pensions, net

 

779

 

 

1,088

Interest expense on lease liabilities

 

564

 

 

628

Amortization of transaction costs

 

86

 

 

176

 

 

1,429

 

 

1,892

Other income

 

 

 

Government grant income

 

—

 

 

2,411

 

 

 

 

Income before income taxes

 

5,232

 

 

1,120

 

 

 

 

Income tax expense

 

 

 

Current

 

1,522

 

 

1,126

Deferred

 

(47)

 

 

(642)

 

 

1,475

 

 

484

 

 

 

 

Net Income for the period

$

3,757

 

$

636

Other comprehensive income:

 

 

 

Items that may be reclassified subsequently to net income

 

 

 

Foreign currency translation

 

26

 

 

(28)

 

 

26

 

 

(28)

Items that will not be reclassified to net income

 

 

 

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

 

3

 

 

205

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

 

(1)

 

 

(44)

 

 

2

 

 

161

Other comprehensive income for the period, net of tax

$

28

 

$

133

Comprehensive income for the period

$

3,785

 

$

769

 

 

 

 

Basic earnings per share

$

0.09

 

$

0.01

 

 

 

 

Diluted earnings per share

$

0.08

 

$

0.01

Condensed interim consolidated statements of operations

 

 

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

For the six months ended June 30, 2022

 

For the six months ended June 30, 2021

 

$

 

$

 

 

 

(Restated)

 

 

 

 

Revenues

$

137,360

 

$

117,568

 

 

 

 

Cost of revenues

 

96,594

 

 

82,933

 

 

 

 

Gross profit

 

40,766

 

 

34,635

 

 

 

 

Expenses

 

 

 

Selling, commissions and expenses

 

14,292

 

 

12,803

General and administration expenses

 

13,133

 

 

16,424

Restructuring expenses

 

—

 

 

4,325

 

 

27,425

 

 

33,552

 

 

 

 

Income before finance costs, other income and income taxes

 

13,341

 

 

1,083

 

 

 

 

Finance costs

 

 

 

Interest expense on long term debt and pensions, net

 

1,470

 

 

1,806

Interest expense on lease liabilities

 

1,128

 

 

1,322

Amortization of transaction costs

 

173

 

 

321

 

 

2,771

 

 

3,449

Other income

 

 

 

Government grant income

 

—

 

 

4,319

Other income

 

—

 

 

1,452

 

 

 

 

Income before income taxes

 

10,570

 

 

3,405

 

 

 

 

Income tax expense

 

 

 

Current

 

2,660

 

 

1,672

Deferred

 

440

 

 

(663)

 

 

3,100

 

 

1,009

 

 

 

 

Net income for the period

$

7,470

 

$

2,396

 

 

 

 

Other comprehensive income:

 

 

 

Items that may be reclassified subsequently to net income

 

 

 

Foreign currency translation

 

13

 

 

(51)

 

 

13

 

 

(51)

Items that will not be reclassified to net income

 

 

 

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

 

482

 

 

1,461

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

 

(119)

 

 

(362)

 

 

363

 

 

1,099

 

 

 

 

Other comprehensive income for the period, net of tax

$

376

 

$

1,048

 

 

 

 

Comprehensive income for the period

$

7,846

 

$

3,444

 

 

 

 

Basic earnings per share

$

0.17

 

$

0.05

 

 

 

 

Diluted earnings per share

$

0.16

 

$

0.05

Condensed interim consolidated statements of cash flows

 

(in thousands of Canadian dollars, unaudited)

For the six months ended June 30, 2022

 

For the six months ended June 30, 2021

 

$

 

$

 

 

 

(Restated)

Cash provided by (used in)

 

 

 

 

 

 

 

Operating activities

 

 

 

Net income for the period

$

7,470

 

$

2,396

Items not affecting cash

 

 

 

Depreciation of property, plant and equipment

 

1,561

 

 

1,582

Amortization of intangible assets

 

811

 

 

863

Depreciation of right-of-use-assets

 

3,213

 

 

4,407

Interest expense on lease liabilities

 

1,128

 

 

1,322

Share-based compensation expense

 

148

 

 

352

Pension expense

 

218

 

 

239

Loss on disposal of property, plant and equipment

 

9

 

 

—

Provisions

 

—

 

 

4,325

Amortization of transaction costs

 

173

 

 

291

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

 

120

 

 

(35)

Other post-employment benefit plans expense

 

136

 

 

70

Income tax expense

 

3,100

 

 

1,009

 

 

18,087

 

 

16,821

Changes in working capital

 

(12,415)

 

 

3,989

Contributions made to pension plans

 

(482)

 

 

(483)

Contributions made to other post-employment benefit plans

 

(88)

 

 

—

Provisions paid

 

(2,633)

 

 

(2,974)

Income taxes paid

 

(368)

 

 

(996)

 

 

2,101

 

 

16,357

 

 

 

 

Investing activities

 

 

 

Purchase of property, plant and equipment

 

(419)

 

 

(357)

Purchase of intangible assets

 

—

 

 

(1,045)

Proceeds on disposal of property, plant and equipment

 

56

 

 

—

 

 

(363)

 

 

(1,402)

 

 

 

 

Financing activities

 

 

 

Exercise of warrants

 

—

 

 

10

Decrease in restricted cash

 

515

 

 

—

Proceeds from credit facilities

 

7,800

 

 

—

Repayment of credit facilities

 

(5,918)

 

 

(7,355)

Repayment of promissory notes

 

—

 

 

(2,185)

Lease payments

 

(4,265)

 

 

(5,868)

 

 

(1,868)

 

 

(15,398)

 

 

 

 

Change in Cash and cash equivalents during the period

 

(130)

 

 

(443)

Cash and cash equivalents – beginning of period

$

901

 

$

578

Effects of foreign exchange on cash balances

 

4

 

 

28

Cash and cash equivalents – end of period

$

775

 

$

163

______________________________

1Note: 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 August 9, 2022 for the period ended June 30, 2022.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220809006028/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