DCM Data Communications Management Corp

FULL YEAR HIGHLIGHTS

• Revenues of $447.7 million were up +63.5%, or +$173.9 million vs. 2022.

• Gross profit of $118.9 million increased +41.2% or $34.7 million.

• Gross profit came in at 26.6% of revenue came compared to 30.8% last year reflecting lower MCC gross profit margin contributions. As a reminder, the opportunity to enhance MCC gross profit margins was one of the key attributes of the MCC acquisition deal logic and improving our consolidated gross profit margins remains a strategic focus of our business.

• SG&A expenses were $87.2 million for the full year or 19.5% of revenues, compared to 19.9% of revenues in 2022.

• Adjusted EBITDA1 was $53.4 million for the full year, an increase of +30.3% vs. the prior year.

• Adjusted EBITDA represented 11.9% of revenues for the full year, compared to 15.0% for 2022. Growth in Adjusted EBITDA was driven by the addition of the MCC business, continuing our focus on improving gross profit margins, and controlling our SG&A expenses.

• Total credit facilities outstanding at year-end of $101.9 million, down approximately -30.0% since the MCC acquisition. Net debt, after deducting a $16.1 million cash balance (net of bank overdraft), was $84.2 million, down -39.0% since that time.

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, today reported its fiscal 2023 and fourth quarter 2023 financial results.

MANAGEMENT COMMENTARY

“We are pleased to report on the results of our performance in 2023,” said Richard Kellam, President & CEO of DCM. “This was a transformative year for DCM highlighted by the completion of our acquisition of Moore Canada Corporation (“MCC”) and the significant progress we made in our post-merger planning and execution.”

“Our focus throughout the year was to build on the positive momentum we experienced in our business prior to the announcement of the MCC acquisition and to set a clear direction for our entire team beginning on Day 1 of the combined business in late April. We moved quickly to bring our teams together, design our new organization and select key leadership to take us forward, prioritizing our large Commercial and Operations teams. We completed this effort within the first six months of Day 1.”

“We also moved quickly to complete a thorough analysis of our manufacturing footprint and announced a decision in early July to consolidate our plant network from 14 to 10 facilities to drive greater efficiencies in producing and delivering our products and services. We completed the closure of the first of these facilities in Edmonton, Alberta before the end of the year and are on track with our detailed plan to close the remaining three plants and transfer production to other facilities in our network.”

“Our Commercial team delivered solid performance throughout the year, expanding revenue with existing clients, winning new logos, and building a strong new business pipeline focused on the value we can deliver to clients with our combined product and service offerings. We are pleased to report that in a year of significant change, the team delivered organic year over year revenue growth of 2%, which we believe is a great start for this new team.”

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 measures. For a description of the composition of these non-IFRS measures, and a reconciliation to their most comparable IFRS measure, net income, see the information under the heading “Non-IFRS Measures”, the information set forth on Table 2 and Table 3 herein, and our Management Discussion & Analysis for the year ended December 31, 2023.

FOURTH QUARTER RESULTS

• Revenues of $130.0 million were up +77.9%, or +$56.9 million, compared to the fourth quarter of 2022.

• Gross profit of $32.8 million, increased +39.1%, or +$9.2 million compared to last year.

• Gross profit came in at 25.2% of revenue compared to 32.2% last year.

• SG&A expenses were 19.5% of revenues or $25.3 million, up modestly from 18.7% of revenue year over year.

• Adjusted EBITDA was $15.0 million, up +19.5% compared to the fourth quarter of 2022.

• Adjusted EBITDA represented 11.6% of revenues compared to 17.2% of revenues last year.

OTHER BUSINESS HIGHLIGHTS

In June 2023 and December 2023 respectively, DCM completed the sale and leaseback of its Oshawa, Ontario warehouse facility and its Fergus, Ontario manufacturing plant, each of which was acquired as part of the Company’s acquisition of MCC. The total gross proceeds from these transactions amounted to $30.5 million. Total net proceeds of $29.5 million were used to repay an acquisition-related credit facility.

On January 11, 2024, DCM completed the sale and leaseback of its Trenton, Ontario warehouse facility, also acquired as part of the Company’s acquisition of MCC. DCM realized gross proceeds on the Trenton sale of $9 million and net proceeds of $8.5 million have been applied towards paying down the Company’s revolving credit facility.

DCM management to date has focused on four key areas of post-merger integration in connection with the MCC acquisition:

1. Operational initiatives primarily intended to drive higher levels of gross profit as a percentage of revenues by reducing our overall cost of goods sold and implementing operating efficiencies, including the planned consolidation of four plants.
2. Organizational initiatives primarily intended to drive both higher levels of gross profit and lower levels of SG&A expenses, including the integration of key functional teams, particularly our Commercial and Operations teams and the reduction of duplicative positions.
3. Procurement initiatives, primarily intended to lower our consolidated purchasing costs and secure improved terms.
4. Revenue growth focus, primarily through aligning our commercial selling efforts, including expanding and leveraging our combined print and communications workflow solutions and our digital offerings.

DCM continues to expect total annualized synergies from the MCC acquisition of between $30 million to $35 million to be substantially realized over the next 12 months from these operational, organizational and procurement initiatives.

2024 PRIORITIES

DCM has established the following strategic priorities for 2024:

1. To substantially complete the integration of MCC by moving ahead with our plant consolidation plans and harmonizing our back-office systems;
2. Remain focused on driving improvements in our gross profit margins, particularly in the legacy MCC business;
3. Continue to focus on growing our business, by taking advantage of our larger scale, our expanded product and service offerings, and the capabilities of our combined team;
4. Generate continued increases in free cash flow, to enable us to reduce our net debt further and allow us to consider further strategic opportunities for investment and capital allocation.

FISCAL 2023 AND FOURTH QUARTER 2023 EARNINGS CALL

The Company will host a conference call and webcast on Wednesday, March 20, 2024, at 9.00 a.m. Eastern time. Mr. Kellam, and James Lorimer, CFO, will present the fiscal 2023 and fourth quarter 2023 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: Click here to join the meeting Meeting ID: 291 583 190 545 Passcode: 9334kz Download Teams | Join on the web

Or call in (audio only) +1 647-749-9154,,120708552# Canada, Toronto Phone Conference ID: 120 708 552#

Find a local number | Reset PIN

Learn More | Meeting options

The Company’s full results will be posted on its Investor Relations page and on www.sedarplus.ca. 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 December 31, 2023 and 2022

October 1 to December 31, 2023

 

October 1 to December 31, 2022

 

January 1 to December 31, 2023

 

January 1 to December 31, 2022

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

 

 

 

 

 

 

 

 

 

Revenues

$

129,964

 

 

$

73,045

 

 

$

447,725

 

 

$

273,804

 

 

 

 

 

 

 

 

 

Gross profit

 

32,760

 

 

 

23,554

 

 

 

118,911

 

 

 

84,224

 

 

 

 

 

 

 

 

 

Gross profit, as a percentage of revenues

 

25.2

%

 

 

32.2

%

 

 

26.6

%

 

 

30.8

%

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

25,300

 

 

 

13,636

 

 

 

87,244

 

 

 

54,439

 

As a percentage of revenues

 

19.5

%

 

 

18.7

%

 

 

19.5

%

 

 

19.9

%

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

15,012

 

 

 

12,565

 

 

 

53,390

 

 

 

40,965

 

As a percentage of revenues

 

11.6

%

 

 

17.2

%

 

 

11.9

%

 

 

15.0

%

 

 

 

 

 

 

 

 

Net income for the period

 

(6,358

)

 

 

3,680

 

 

 

(15,854

)

 

 

13,966

 

 

 

 

 

 

 

 

 

Adjusted net income

 

1,362

 

 

 

6,302

 

 

 

12,827

 

 

 

17,388

 

As a percentage of revenues

 

1.0

%

 

 

8.6

%

 

 

2.9

%

 

 

6.4

%

 

 

 

 

 

 

 

 

Basic earnings per share

$

(0.12

)

 

$

0.08

 

 

$

(0.31

)

 

$

0.32

 

Diluted earnings per share

$

(0.12

)

 

$

0.08

 

 

$

(0.31

)

 

$

0.30

 

Adjusted net income per share, basic

$

0.02

 

 

$

0.14

 

 

$

0.25

 

 

$

0.39

 

Adjusted net income per share, diluted

$

0.02

 

 

$

0.13

 

 

$

0.25

 

 

$

0.37

 

Weighted average number of common shares outstanding, basic

 

55,022,883

 

 

 

44,062,831

 

 

 

50,832,543

 

 

 

44,062,831

 

Weighted average number of common shares outstanding, diluted

 

55,022,883

 

 

 

46,796,407

 

 

 

50,832,543

 

 

 

46,572,066

 

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, 2023 and 2022

 

October 1 to December 31, 2023

October 1 to December 31, 2022

January 1 to December 31, 2023

January 1 to December 31, 2022

(in thousands of Canadian dollars, unaudited)

 

 

 

 

 

 

 

Net income for the period

 

$

(6,358

)

$

3,680

$

(15,854

)

$

13,966

 

 

 

 

 

 

Interest expense, net

 

 

5,667

 

 

1,134

 

15,321

 

 

4,965

Debt modification losses and prepayment fees

 

 

—

 

 

—

 

—

 

 

—

Amortization of transaction costs

 

 

137

 

 

87

 

457

 

 

344

Current income tax expense

 

 

367

 

 

1,653

 

1,209

 

 

5,456

Deferred income tax expense (recovery)

 

 

(2,671

)

 

269

 

(7,799

)

 

473

Depreciation of property, plant and equipment

 

 

2,058

 

 

644

 

6,165

 

 

2,965

Amortization of intangible assets

 

 

829

 

 

393

 

2,881

 

 

1,606

Depreciation of the ROU Asset

 

 

4,665

 

 

1,610

 

12,677

 

 

6,609

EBITDA

 

$

4,694

 

$

9,470

$

15,057

 

$

36,384

Acquisition and integration costs

 

 

704

 

 

1,870

 

10,903

 

 

1,870

Restructuring expenses

 

 

10,570

 

 

—

 

20,308

 

 

—

Net fair value (gains) losses on financial liabilities at fair value through profit or loss

 

 

(956

)

 

1,225

 

7,122

 

 

2,711

Adjusted EBITDA

 

$

15,012

 

$

12,565

$

53,390

 

$

40,965

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

Adjusted net income reconciliation

For the periods ended December 31, 2023 and 2022

 

October 1 to December 31, 2023

October 1 to December 31, 2022

January 1 to December 31, 2023

January 1 to December 31, 2022

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

 

 

 

 

 

 

Net income (loss) for the period

 

$

(6,358

)

$

3,680

 

$

(15,854

)

$

13,966

 

 

 

 

 

 

 

Acquisition and integration costs

 

 

704

 

 

1,870

 

 

10,903

 

 

1,870

 

Restructuring expenses

 

 

10,570

 

 

—

 

 

20,308

 

 

—

 

Net fair value (gains) losses on financial liabilities at fair value through profit or loss

 

 

(956

)

 

1,225

 

 

7,122

 

 

2,711

 

Tax effect of the above adjustments

 

 

(2,598

)

 

(473

)

 

(9,652

)

 

(1,159

)

Adjusted net income (loss)

 

$

1,362

 

$

6,302

 

$

12,827

 

$

17,388

 

 

 

 

 

 

 

Adjusted net income per share, basic

 

$

0.02

 

$

0.14

 

$

0.25

 

$

0.39

 

Adjusted net income per share, diluted

 

$

0.02

 

$

0.13

 

$

0.25

 

$

0.37

 

Weighted average number of common shares outstanding, basic

 

 

55,022,883

 

 

44,062,831

 

 

50,832,543

 

 

44,062,831

 

Weighted average number of common shares outstanding, diluted

 

 

55,022,883

 

 

46,796,407

 

 

50,832,543

 

 

46,572,066

 

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, 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 SEDAR+ at www.sedarplus.ca.

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 year ended December 31, 2023, 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

NON-IFRS ACCOUNTING STANDARDS AND OTHER FINANCIAL 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 fiscal year ended December 31, 2023 and filed on SEDAR+ at www.sedarplus.ca.

Consolidated statements of financial position

 

 

(in thousands of Canadian dollars, unaudited)

December 31, 2023

December 31, 2022

 

$

$

 

 

 

Assets

 

 

Current assets

 

 

Cash and cash equivalents

$

17,652

 

$

4,208

 

Trade receivables

 

117,956

 

 

54,630

 

Inventories

 

28,840

 

 

20,220

 

Prepaid expenses and other current assets

 

5,313

 

 

2,984

 

Income taxes receivable

 

2,640

 

 

15

 

Assets held for sale

 

8,650

 

 

—

 

 

 

181,051

 

 

82,057

 

Non-current assets

 

 

Other non-current assets

 

2,900

 

 

466

 

Deferred income tax assets

 

9,801

 

 

4,830

 

Property, plant and equipment

 

30,358

 

 

6,779

 

Right-of-use assets

 

159,801

 

 

33,505

 

Pension assets

 

1,962

 

 

2,364

 

Intangible assets

 

10,616

 

 

2,507

 

Goodwill

 

22,265

 

 

16,973

 

 

$

418,754

 

$

149,481

 

 

 

 

Liabilities

 

 

Current liabilities

 

 

Bank overdraft

 

1,564

 

 

—

 

Trade payables and accrued liabilities

$

75,766

 

$

44,133

 

Current portion of credit facilities

 

6,333

 

 

11,667

 

Current portion of lease liabilities

 

10,322

 

 

6,791

 

Provisions

 

16,325

 

 

1,316

 

Income taxes payable

 

—

 

 

1,630

 

Deferred revenue

 

6,221

 

 

3,942

 

 

 

116,531

 

 

69,479

 

Non-current liabilities

 

 

Provisions

 

1,004

 

 

—

 

Credit facilities

 

93,918

 

 

15,380

 

Lease liabilities

 

144,993

 

 

33,011

 

Pension obligations

 

26,386

 

 

6,069

 

Other post-employment benefit plans

 

3,606

 

 

2,695

 

Asset retirement obligation

 

3,552

 

 

—

 

 

$

389,990

 

$

126,634

 

 

 

 

Equity

 

 

Shareholders’ equity

 

 

Shares

$

283,738

 

$

256,478

 

Warrants

 

219

 

 

869

 

Contributed surplus

 

3,135

 

 

3,131

 

Translation Reserve

 

177

 

 

207

 

Deficit

 

(258,505

)

 

(237,838

)

 

$

28,764

 

$

22,847

 

 

$

418,754

 

$

149,481

 

Consolidated statements of operations

 

 

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

For the three months ended December 31, 2023

 

For the three months ended December 31, 2022

 

$

 

$

 

 

 

 

 

 

 

 

Revenues

$

129,964

 

 

$

73,045

 

 

 

 

Cost of revenues

 

97,204

 

 

 

49,491

 

 

 

 

Gross profit

 

32,760

 

 

 

23,554

 

 

 

 

Expenses

 

 

 

Selling, commissions and expenses

 

11,014

 

 

 

6,501

General and administration expenses

 

14,286

 

 

 

7,135

Restructuring expenses

 

10,570

 

 

 

—

Acquisition costs

 

704

 

 

 

1,870

Net fair value (gains) losses on financial liabilities at fair value through profit or loss

 

(956

)

 

 

1,225

 

 

35,618

 

 

 

16,731

 

 

 

 

(Loss) income before finance costs, other income and income taxes

 

(2,858

)

 

 

6,823

 

 

 

 

Finance costs

 

 

 

Interest expense on long term debt and pensions, net

 

2,742

 

 

 

1,134

Interest expense on lease liabilities

 

2,925

 

 

 

—

Amortization of transaction costs

 

137

 

 

 

87

 

 

5,804

 

 

 

1,221

 

 

 

 

(Loss) income before income taxes

 

(8,662

)

 

 

5,602

 

 

 

 

Income tax expense

 

 

 

Current

 

367

 

 

 

1,653

Deferred

 

(2,671

)

 

 

269

 

 

(2,304

)

 

 

1,922

 

 

 

 

Net (loss) Income for the period

$

(6,358

)

 

$

3,680

Consolidated statements of operations

 

 

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

For the year ended December 31, 2023

 

For the year ended December 31, 2022

 

$

 

$

 

 

 

 

 

 

 

 

Revenues

$

447,725

 

 

$

273,804

 

 

 

 

 

Cost of revenues

 

328,814

 

 

 

189,580

 

 

 

 

 

Gross profit

 

118,911

 

 

 

84,224

 

 

 

 

 

Expenses

 

 

 

Selling, commissions and expenses

 

39,195

 

 

 

29,041

 

General and administration expenses

 

48,049

 

 

 

25,398

 

Restructuring expenses

 

20,308

 

 

 

—

 

Acquisition and integration costs

 

10,903

 

 

 

1,870

 

Net fair value (gains) losses on financial liabilities at fair value through profit or loss

 

7,122

 

 

 

2,711

 

 

 

125,577

 

 

 

59,020

 

 

 

 

 

(Loss) income before finance costs, other income and income taxes

 

(6,666

)

 

 

25,204

 

 

 

 

 

Finance costs

 

 

 

Interest expense on long term debt and pensions, net

 

8,315

 

 

 

2,742

 

Interest expense on lease liabilities

 

7,006

 

 

 

2,223

 

Amortization of transaction costs net of debt extinguishment gain

 

457

 

 

 

344

 

 

 

15,778

 

 

 

5,309

 

 

 

 

 

(Loss) Income before income taxes

 

(22,444

)

 

 

19,895

 

 

 

 

 

Income tax expense

 

 

 

Current

 

1,209

 

 

 

5,456

 

Deferred

 

(7,799

)

 

 

473

 

 

 

(6,590

)

 

 

5,929

 

 

 

 

 

Net (loss) income for the period

$

(15,854

)

 

$

13,966

 

 

 

 

 

Other comprehensive income:

 

 

 

Items that may be reclassified subsequently to net income

 

 

 

Foreign currency translation

 

(30

)

 

 

34

 

 

 

(30

)

 

 

34

 

Items that will not be reclassified to net income

 

 

 

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

 

(6,525

)

 

 

640

 

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

 

1,712

 

 

 

(162

)

 

 

(4,813

)

 

 

478

 

 

 

 

 

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

$

(4,843

)

 

$

512

 

 

 

 

 

Comprehensive (loss) income for the period

$

(20,697

)

 

$

14,478

 

 

 

 

 

Basic (loss) earnings per share

$

(0.31

)

 

$

0.32

 

 

 

 

 

Diluted (loss) earnings per share

$

(0.31

)

 

$

0.30

 

Consolidated statements of cash flows

 

(in thousands of Canadian dollars, unaudited)

For the year ended December 31, 2023

 

For the year ended December 31, 2022

 

$

 

$

 

 

 

 

Cash provided by (used in)

 

 

 

 

 

 

 

Operating activities

 

 

 

Net (loss) income for the year

$

(15,854

)

 

$

13,966

 

Items not affecting cash

 

 

 

Depreciation of property, plant and equipment

 

6,165

 

 

 

2,965

 

Amortization of intangible assets

 

2,881

 

 

 

1,606

 

Depreciation of right-of-use-assets

 

12,677

 

 

 

6,609

 

Interest expense on lease liabilities

 

7,006

 

 

 

2,223

 

Share-based compensation expense

 

675

 

 

 

328

 

Net fair value losses on financial liabilities at fair value through profit or loss

 

7,122

 

 

 

2,711

 

Pension expense

 

1,245

 

 

 

351

 

(Gain)/ loss on disposal of property, plant and equipment

 

487

 

 

 

98

 

Provisions

 

20,308

 

 

 

—

 

Amortization of transaction costs, accretion of debt premium/ discount, net of debt extinguishment gain

 

457

 

 

 

344

 

Accretion of non-current liabilities

 

—

 

 

 

120

 

Accretion of asset retirement obligation

 

24

 

 

 

—

 

Other post-employment benefit plans expense

 

515

 

 

 

(16

)

Right-of-use assets impairment

 

464

 

 

 

—

 

Income tax (recovery) expense

 

(6,590

)

 

 

5,929

 

Changes in non cash working capital

 

5,863

 

 

 

(3,632

)

Contributions made to pension plans

 

(1,124

)

 

 

(869

)

Contributions made to other post-employment benefit plans

 

(471

)

 

 

(365

)

Provisions paid

 

(4,975

)

 

 

(3,160

)

Income taxes paid

 

(4,072

)

 

 

(3,822

)

 

 

32,803

 

 

 

25,386

 

 

 

 

 

Investing activities

 

 

 

Net cash consideration for acquisition of MCC

 

(130,953

)

 

 

—

 

Purchase of property, plant and equipment

 

(4,222

)

 

 

(1,475

)

Proceeds on sale and leaseback transactions

 

29,533

 

 

 

—

 

Purchase of intangible assets

 

(127

)

 

 

(71

)

Proceeds on disposal of property, plant and equipment

 

1,282

 

 

 

70

 

 

 

(104,487

)

 

 

(1,476

)

 

 

 

 

Financing activities

 

 

 

Issuance of common shares and warrants, net

 

24,221

 

 

 

—

 

Decrease in restricted cash

 

—

 

 

 

515

 

Proceeds from credit facilities

 

162,140

 

 

 

2,900

 

Repayment of credit facilities

 

(87,592

)

 

 

(12,616

)

Proceeds from exercise of warrants

 

489

 

 

 

—

 

Increase in bank overdrafts

 

282

 

 

 

—

 

Proceeds from exercise of options

 

751

 

 

 

—

 

Transaction costs

 

(1,801

)

 

 

—

 

Lease payments

 

(13,321

)

 

 

(8,730

)

 

 

85,169

 

 

 

(17,931

)

 

 

 

 

Change in cash and cash equivalents during the period

 

13,485

 

 

 

5,979

 

Cash and cash equivalents – beginning of period

$

4,208

 

 

$

901

 

Effects of foreign exchange on cash balances

 

(41

)

 

 

39

 

Cash and cash equivalents – end of period

$

17,652

 

 

$

6,919

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240319990323/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