DATA Communications Management Corp. Announces Preliminary Full Year 2022 Financial Results

Rhea-AI Summary

DATA Communications Management Corp. (DCMDF) has reported preliminary financial results for the fiscal year ending December 31, 2022, showing robust growth. Total revenue is expected between $270 million and $274 million, a rise of 15%-16.5% from 2021. Gross profit is forecasted to increase by 20%-21%, reaching 30.5%-31% of revenue. EBITDA is projected at $35.5 million to $36.5 million, a significant 41%-45% jump. Selling, General & Administrative expenses decreased by approximately 3%. Notably, total debt has been reduced by about 35%. Full results will be disclosed on March 21, 2023.

Positive

• Total revenue expected between $270 million and $274 million, a +15% to +16.5% increase from FY 2021.
• Gross profit projected to rise by +20% to +21%.
• EBITDA estimated at $35.5 million to $36.5 million, a +41% to +45% increase.
• SG&A expenses down by 2.8% to 3.3% points as a percentage of revenue.
• Total debt reduced by approximately 35%.

Negative

• None.

BRAMPTON, Ontario--(BUSINESS WIRE)-- 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 preliminary full year financial results for 2022 demonstrating the Company’s continued strong momentum.

For the fiscal year ended Dec. 31, 2022, compared to the same period in 2021, DCM expects to report:

• Total revenue in the range of $270 million to $274 million, a +15% to +16.5% increase vs. fiscal year (FY) 2021
• Gross profit as a percentage of revenue in the range of 30.5% to 31%, with gross profit increasing between +20% and +21% vs. FY 2021
• Selling General & Administrative expenses in the range of 21% to 21.5% of revenue, down 2.8% to 3.3% percentage points vs. FY 2021
• EBITDA¹ in the range of $35.5 million to $36.5 million, a +41% to +45% increase vs. FY 2021
• Total debt, net of cash on hand, down approximately 35% vs. FY 2021
• No restructuring charges in FY 2022

“These strong expected results for 2022 reflect our continued progress throughout the year on our path to building a better and bigger business,” said Richard Kellam, President & Chief Executive Officer of DCM. “This was a pivotal year for DCM, highlighted by the strong operational and financial performance we delivered which puts us ahead of our five-year financial plan objectives,” continued Mr. Kellam.

DCM plans to provide full financial results for the fourth quarter and full year 2022 on March 21, 2023 after market close and to hold an investor conference call and webcast at 9:00 am EST on March 22, 2023. Until that time, these preliminary results are estimates only and are subject to change based on the completion of all quarter-end and year-end close and audit processes. Details on the fiscal 2022 earnings call will be provided in advance of the call.

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 more than 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 offerings. 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

This release contains "forward-looking statements" by DCM. Forward-looking statements can be identified by words such as: “expect,” "may," "should," “intend” and "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements regarding DCM’s expected financial results for fiscal 2022 and the ability of DCM to achieve its five-year financial plan objectives.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations, and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, unanticipated changes in DCM’s expected financial results for 2022 based on the completion of all quarter-end and year-end close and audit processes currently underway by DCM in connection with the independent audit of DCM’s financial statements for fiscal 2022.

Any forward-looking statement made by us in this release is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by applicable securities laws, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

NON-IFRS MEASURES

This press release includes certain non-IFRS measures as supplementary information. When used in this press release, EBITDA means earnings before interest and finance costs, taxes, depreciation and amortization. In addition to net income (loss), DCM uses non-IFRS measures and ratios, including EBITDA, 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. EBITDA is not an earnings measure recognized by IFRS and does not have any standardized meaning prescribed by IFRS. Therefore, EBITDA is unlikely to be comparable to similar measures presented by other issuers.

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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/20230222006085/en/

Mr. Richard Kellam

President & Chief Executive Officer

DATA Communications Management Corp.

(905) 791-3151



Mr. James E. Lorimer

Chief Financial Officer

DATA Communications Management Corp.

(905) 791-3151

ir@datacm.com

Source: DATA Communications Management Corp.

FAQ

What were DCMDF's revenue expectations for 2022?

DCMDF expects total revenue to be between $270 million and $274 million, indicating a 15% to 16.5% increase compared to 2021.

What is the projected EBITDA for DCMDF for FY 2022?

DCMDF's EBITDA is anticipated to be in the range of $35.5 million to $36.5 million, representing a growth of 41% to 45% from FY 2021.

When will DCMDF release its full financial results for 2022?

DCMDF plans to release its full financial results on March 21, 2023.

How much has DCMDF reduced its total debt?

DCMDF has decreased its total debt by approximately 35% compared to FY 2021.