Data Communications Management Corp. Announces Third Quarter 2022 Financial Results
DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) reported strong Q3 2022 results with revenue increasing by 11.4% to $63.4 million, and gross profit rising 15.8% to $19.9 million. Net income saw a remarkable growth of 175.8% to $2.8 million, and EBITDA increased by 25.7% to $8.0 million. For the nine-month period, revenue rose 15.1%, gross profit 17.1%, and net income surged 201.0%. No restructuring expenses were reported. The company secured over $30 million in new business, continuing its operational success and commitment to digital transformation.
- Revenue increased by 11.4% to $63.4 million in Q3 2022.
- Gross profit rose 15.8% to $19.9 million in Q3 2022.
- Net income surged 175.8% to $2.8 million in Q3 2022.
- EBITDA grew 25.7% to $8.0 million in Q3 2022.
- Reported $30 million in new business wins year-to-date.
- Selling, general and administrative expenses increased from 19.9% to 23.4% of revenues.
THIRD QUARTER 2022 HIGHLIGHTS - BUILDING A BIGGER BUSINESS
-
Revenue for Q3 2022 was up
11.4% , or+ , vs. Q3 year ago (YA), for total revenues of$6.5 million $63.4 million -
Gross profit accelerated
15.8% , or+ , vs. YA to$2.7 million $19.9 million -
Gross profit as a percentage of revenues grew 1.2 percentage points to
31.4% , vs.30.2% YA; -
Net income increased
175.8% , or+ , vs. YA to$1.8 million $2.8 million -
EBITDA grew
25.7% , or+ , vs. YA to$1.6 million $8.0 million - No restructuring expenses or other “adjustments” to EBITDA in the third quarter of 2022. The Company’s current outlook anticipates no restructuring charges in the balance of fiscal 2022;
-
Term debt lower by
26.2% , or -$8.9 million $25.1 million -
Basic and diluted EPS of
$0.06 $0.02
THIRD QUARTER 2022 OPERATIONAL HIGHLIGHTS – BUILDING A BETTER BUSINESS
-
We have been awarded more than
$30 million - With regards to ESG, we are pleased to report we have reforested almost 470,000 trees in connection with our PrintReleaf initiative, offsetting one hundred percent of our clients’ paper usage;
-
Productivity improvements continued, with revenue per associate reaching
$287,800 40% over the last five years.
MANAGEMENT COMMENTARY
"I’m happy to report that the positive momentum in our business has continued, with strong third quarter results," says
"We continue to make positive progress on our digital journey. Substantially all our new business wins are tech-enabled solutions. And we’ve secured more than
"Our team’s focused efforts at managing a highly volatile raw material market are paying off with positive trends in gross margin, further highlighting our operational success. Our operational effectiveness initiatives are expected to continue to deliver continued improvements in productivity per associate."
"I would like to thank the entire DCM for a strong quarter and first nine months of 2022, and a special big thanks to the team’s continued, relentless focus on building both a better and a bigger business. Results like these only come when everyone is moving forward together. And finally, I would also like to thank our clients for continuing to trust DCM with their complex communication and workflow needs."
THIRD QUARTER 2022 EARNINGS CALL
The Company will host a conference call and webcast on
Instructions on how to access both the webcast and telephone call are available below. For those unable to join live, a replay of the webcast will be available on the DCM Investor Relations page.
DCM will be using Microsoft Teams to broadcast our earnings call, which will be accessible via the options below:
Join on your computer or mobile app
Click here to join the meeting
Or call in (audio only)
+1 647-749-9154,,52984123#
Phone Conference ID: 529 841 23#
The Company’s full results will be posted on its Investor Relations page and on www.sedar.com. A video message from
TABLE 1 The following table sets out selected historical consolidated financial information for the periods noted.
For the periods ended |
|
|
|
|
|
|
|
||||||||
(in thousands of Canadian dollars, except share and per share amounts, unaudited) |
|
||||||||||||||
|
|
|
(Restated) |
|
|
|
(Restated) |
||||||||
Revenues |
$ |
63,399 |
|
|
$ |
56,892 |
|
|
$ |
200,759 |
|
|
$ |
174,460 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
|
19,904 |
|
|
|
17,187 |
|
|
|
60,670 |
|
|
|
51,822 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit, as a percentage of revenues |
|
31.4 |
% |
|
|
30.2 |
% |
|
|
30.2 |
% |
|
|
29.7 |
% |
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses (1) |
|
14,864 |
|
|
|
11,300 |
|
|
|
42,289 |
|
|
|
40,527 |
|
As a percentage of revenues |
|
23.4 |
% |
|
|
19.9 |
% |
|
|
21.1 |
% |
|
|
23.2 |
% |
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
|
7,988 |
|
|
|
9,437 |
|
|
|
26,914 |
|
|
|
26,016 |
|
As a percentage of revenues |
|
12.6 |
% |
|
|
16.6 |
% |
|
|
13.4 |
% |
|
|
14.9 |
% |
|
|
|
|
|
|
|
|
||||||||
Net income for the period |
|
2,816 |
|
|
|
1,021 |
|
|
|
10,286 |
|
|
|
3,417 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted net income |
|
2,816 |
|
|
|
3,345 |
|
|
|
10,286 |
|
|
|
7,879 |
|
As a percentage of revenues |
|
4.4 |
% |
|
|
5.9 |
% |
|
|
5.1 |
% |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share |
$ |
0.06 |
|
|
$ |
0.02 |
|
|
$ |
0.23 |
|
|
$ |
0.08 |
|
Diluted earnings per share |
$ |
0.06 |
|
|
$ |
0.02 |
|
|
$ |
0.22 |
|
|
$ |
0.08 |
|
Weighted average number of common shares outstanding, basic |
|
44,062,831 |
|
|
|
44,056,907 |
|
|
|
44,062,831 |
|
|
|
43,970,128 |
|
Weighted average number of common shares outstanding, diluted |
|
46,501,606 |
|
|
|
46,477,944 |
|
|
|
46,516,249 |
|
|
|
46,025,059 |
|
(1) SG&A and deferred income tax expense include the impact of the IFRS Interpretations Committee’s agenda decision regarding configuration or customization costs in a cloud computing arrangement. Prior periods have been retrospectively restated to derecognize previously capitalized costs in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Refer to note 3 of the condensed interim consolidated financial statements for the period ended
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 |
|
|
|
|
|
|||||||
(in thousands of Canadian dollars, unaudited) |
|
|||||||||||
|
|
|
(Restated) |
|
(Restated) |
|||||||
Net income for the period (1) |
|
$ |
2,816 |
|
$ |
1,021 |
|
$ |
10,286 |
$ |
3,417 |
|
|
|
|
|
|
|
|||||||
Interest expense, net |
|
|
1,233 |
|
|
1,587 |
|
|
3,831 |
|
4,715 |
|
Amortization of transaction costs |
|
|
84 |
|
|
117 |
|
|
257 |
|
438 |
|
Current income tax expense |
|
|
1,143 |
|
|
383 |
|
|
3,803 |
|
2,055 |
|
Deferred income tax (recovery) expense (1) |
|
|
(236 |
) |
|
(121 |
) |
|
204 |
|
(784 |
) |
Depreciation of property, plant and equipment |
|
|
760 |
|
|
820 |
|
|
2,321 |
|
2,402 |
|
Amortization of intangible assets (1) |
|
|
402 |
|
|
445 |
|
|
1,213 |
|
1,308 |
|
Depreciation of the ROU Asset |
|
|
1,786 |
|
|
2,101 |
|
|
4,999 |
|
6,508 |
|
EBITDA |
|
$ |
7,988 |
|
$ |
6,353 |
|
$ |
26,914 |
$ |
20,059 |
|
Restructuring expenses |
|
|
— |
|
|
3,084 |
|
|
— |
|
7,409 |
|
Other income |
|
|
— |
|
|
— |
|
|
— |
|
(1,452 |
) |
Adjusted EBITDA |
|
$ |
7,988 |
|
$ |
9,437 |
|
$ |
26,914 |
$ |
26,016 |
|
(1) SG&A and deferred income tax expense include the impact of the IFRS Interpretations Committee’s agenda decision regarding configuration or customization costs in a cloud computing arrangement. Prior periods have been retrospectively restated to derecognize previously capitalized costs in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Refer to note 3 of the condensed interim consolidated financial statements for the period ended
TABLE 3 The following table provides reconciliations of net income to Adjusted net income and a presentation of Adjusted net income per share for the periods noted.
Adjusted net income reconciliation
For the periods ended |
|
|
|
|
|
||||||
(in thousands of Canadian dollars, except share and per share amounts, unaudited) |
|||||||||||
|
|
|
(Restated) |
|
(Restated) |
||||||
Net income for the period (1) |
|
$ |
2,816 |
|
1,021 |
|
$ |
10,286 |
$ |
3,417 |
|
|
|
|
|
|
|
||||||
Restructuring expenses |
|
|
— |
|
3,084 |
|
|
— |
|
7,409 |
|
Other income |
|
|
— |
|
— |
|
|
— |
|
(1,452 |
) |
Tax effect of the above adjustments |
|
|
— |
|
(760 |
) |
|
— |
|
(1,495 |
) |
Adjusted net income |
|
$ |
2,816 |
$ |
3,345 |
|
$ |
10,286 |
$ |
7,879 |
|
|
|
|
|
|
|
||||||
Adjusted net income per share, basic |
|
$ |
0.06 |
$ |
0.08 |
|
$ |
0.23 |
|
0.18 |
|
Adjusted net income per share, diluted |
|
$ |
0.06 |
$ |
0.07 |
|
$ |
0.22 |
|
0.17 |
|
(1) SG&A and deferred income tax expense include the impact of the IFRS Interpretations Committee’s agenda decision regarding configuration or customization costs in a cloud computing arrangement. Prior periods have been retrospectively restated to derecognize previously capitalized costs in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. Refer to note 3 of the condensed interim consolidated financial statements for the period ended
About
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
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) |
|
|
|
||||
|
$ |
|
$ |
||||
|
|
|
(Restated) |
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
1,945 |
|
|
$ |
901 |
|
Trade receivables |
|
54,332 |
|
|
|
51,567 |
|
Inventories |
|
21,355 |
|
|
|
12,133 |
|
Prepaid expenses and other current assets |
|
2,614 |
|
|
|
2,580 |
|
Income taxes receivable |
|
14 |
|
|
|
860 |
|
|
|
80,260 |
|
|
|
68,041 |
|
Non-current assets |
|
|
|
||||
Other non-current assets |
|
519 |
|
|
|
625 |
|
Deferred income tax assets |
|
5,479 |
|
|
|
5,465 |
|
Restricted cash |
|
— |
|
|
|
515 |
|
Property, plant and equipment |
|
6,899 |
|
|
|
8,416 |
|
Right-of-use assets |
|
33,190 |
|
|
|
33,476 |
|
Pension assets |
|
652 |
|
|
|
2,531 |
|
Intangible assets |
|
2,904 |
|
|
|
4,042 |
|
|
|
16,973 |
|
|
|
16,973 |
|
|
$ |
146,876 |
|
|
$ |
140,084 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Current liabilities |
|
|
|
||||
Trade payables and accrued liabilities |
$ |
39,788 |
|
|
$ |
37,589 |
|
Current portion of credit facilities |
|
13,936 |
|
|
|
11,743 |
|
Current portion of lease liabilities |
|
6,803 |
|
|
|
6,123 |
|
Provisions |
|
1,538 |
|
|
|
3,280 |
|
Income taxes payable |
|
2,967 |
|
|
|
841 |
|
Deferred revenue |
|
2,802 |
|
|
|
3,269 |
|
|
|
67,834 |
|
|
|
62,845 |
|
Non-current liabilities |
|
|
|
||||
Provisions |
|
— |
|
|
|
1,196 |
|
Credit facilities |
|
19,719 |
|
|
|
24,556 |
|
Lease liabilities |
|
32,247 |
|
|
|
32,976 |
|
Pension obligations |
|
6,080 |
|
|
|
7,499 |
|
Other post-employment benefit plans |
|
3,040 |
|
|
|
2,971 |
|
|
$ |
128,920 |
|
|
$ |
132,043 |
|
|
|
|
|
||||
Equity |
|
|
|
||||
Shareholders’ equity |
|
|
|
||||
Shares |
$ |
256,478 |
|
|
$ |
256,478 |
|
Warrants |
|
869 |
|
|
|
881 |
|
Contributed surplus |
|
3,041 |
|
|
|
2,791 |
|
Translation Reserve |
|
210 |
|
|
|
173 |
|
Deficit |
|
(242,642 |
) |
|
|
(252,282 |
) |
|
$ |
17,956 |
|
|
$ |
8,041 |
|
|
$ |
146,876 |
|
|
$ |
140,084 |
|
Condensed interim consolidated statements of operations |
|
|
|||||
(in thousands of Canadian dollars, except per share amounts, unaudited) |
For the three months
|
|
For the three months
|
||||
|
$ |
|
$ |
||||
|
|
|
(Restated) |
||||
|
|
|
|
||||
Revenues |
$ |
63,399 |
|
|
$ |
56,892 |
|
|
|
|
|
||||
Cost of revenues |
|
43,495 |
|
|
|
39,705 |
|
|
|
|
|
||||
Gross profit |
|
19,904 |
|
|
|
17,187 |
|
|
|
|
|
||||
Expenses |
|
|
|
||||
Selling, commissions and expenses |
|
7,175 |
|
|
|
5,516 |
|
General and administration expenses |
|
7,689 |
|
|
|
5,784 |
|
Restructuring expenses |
|
— |
|
|
|
3,084 |
|
|
|
14,864 |
|
|
|
14,384 |
|
|
|
|
|
||||
Income before finance costs, other income and income taxes |
|
5,040 |
|
|
|
2,803 |
|
|
|
|
|
||||
Finance costs |
|
|
|
||||
Interest expense on long term debt and pensions, net |
|
676 |
|
|
|
988 |
|
Interest expense on lease liabilities |
|
557 |
|
|
|
599 |
|
Amortization of transaction costs |
|
84 |
|
|
|
117 |
|
|
|
1,317 |
|
|
|
1,704 |
|
Other income |
|
|
|
||||
Government grant income |
|
— |
|
|
|
184 |
|
|
|
|
|
||||
Income before income taxes |
|
3,723 |
|
|
|
1,283 |
|
|
|
|
|
||||
Income tax expense |
|
|
|
||||
Current |
|
1,143 |
|
|
|
383 |
|
Deferred |
|
(236 |
) |
|
|
(121 |
) |
|
|
907 |
|
|
|
262 |
|
|
|
|
|
||||
Net Income for the period |
$ |
2,816 |
|
|
$ |
1,021 |
|
Other comprehensive income: |
|
|
|
||||
Items that may be reclassified subsequently to net income |
|
|
|
||||
Foreign currency translation |
|
24 |
|
|
|
42 |
|
|
|
24 |
|
|
|
42 |
|
Items that will not be reclassified to net income |
|
|
|
||||
Re-measurements of pension and other post-employment benefit obligations |
|
(1,346 |
) |
|
|
540 |
|
Taxes related to pension and other post-employment benefit adjustment above |
|
337 |
|
|
|
(126 |
) |
|
|
(1,009 |
) |
|
|
414 |
|
Other comprehensive (loss) income for the period, net of tax |
$ |
(985 |
) |
|
$ |
456 |
|
Comprehensive income for the period |
$ |
1,831 |
|
|
$ |
1,477 |
|
|
|
|
|
||||
Basic earnings per share |
$ |
0.06 |
|
|
$ |
0.02 |
|
|
|
|
|
||||
Diluted earnings per share |
$ |
0.06 |
|
|
$ |
0.02 |
|
Condensed interim consolidated statements of operations |
|
|
|||||
(in thousands of Canadian dollars, except per share amounts, unaudited) |
For the nine months
|
|
For the nine months
|
||||
|
$ |
|
$ |
||||
|
|
|
(Restated) |
||||
|
|
|
|
||||
Revenues |
$ |
200,759 |
|
|
$ |
174,460 |
|
|
|
|
|
||||
Cost of revenues |
|
140,089 |
|
|
|
122,638 |
|
|
|
|
|
||||
Gross profit |
|
60,670 |
|
|
|
51,822 |
|
|
|
|
|
||||
Expenses |
|
|
|
||||
Selling, commissions and expenses |
|
21,467 |
|
|
|
18,319 |
|
General and administration expenses |
|
20,822 |
|
|
|
22,208 |
|
Restructuring expenses |
|
— |
|
|
|
7,409 |
|
|
|
42,289 |
|
|
|
47,936 |
|
|
|
|
|
||||
Income before finance costs, other income and income taxes |
|
18,381 |
|
|
|
3,886 |
|
|
|
|
|
||||
Finance costs |
|
|
|
||||
Interest expense on long term debt and pensions, net |
|
2,146 |
|
|
|
2,794 |
|
Interest expense on lease liabilities |
|
1,685 |
|
|
|
1,921 |
|
Amortization of transaction costs |
|
257 |
|
|
|
438 |
|
|
|
4,088 |
|
|
|
5,153 |
|
Other income |
|
|
|
||||
Government grant income |
|
— |
|
|
|
4,503 |
|
Other income |
|
— |
|
|
|
1,452 |
|
|
|
|
|
||||
Income before income taxes |
|
14,293 |
|
|
|
4,688 |
|
|
|
|
|
||||
Income tax expense |
|
|
|
||||
Current |
|
3,803 |
|
|
|
2,055 |
|
Deferred |
|
204 |
|
|
|
(784 |
) |
|
|
4,007 |
|
|
|
1,271 |
|
|
|
|
|
||||
Net income for the period |
$ |
10,286 |
|
|
$ |
3,417 |
|
|
|
|
|
||||
Other comprehensive income: |
|
|
|
||||
Items that may be reclassified subsequently to net income |
|
|
|
||||
Foreign currency translation |
|
37 |
|
|
|
(9 |
) |
|
|
37 |
|
|
|
(9 |
) |
Items that will not be reclassified to net income |
|
|
|
||||
Re-measurements of pension and other post-employment benefit obligations |
|
(864 |
) |
|
|
2,001 |
|
Taxes related to pension and other post-employment benefit adjustment above |
|
218 |
|
|
|
(488 |
) |
|
|
(646 |
) |
|
|
1,513 |
|
|
|
|
|
||||
Other comprehensive (loss) income for the period, net of tax |
$ |
(609 |
) |
|
$ |
1,504 |
|
|
|
|
|
||||
Comprehensive income for the period |
$ |
9,677 |
|
|
$ |
4,921 |
|
|
|
|
|
||||
Basic earnings per share |
$ |
0.23 |
|
|
$ |
0.08 |
|
|
|
|
|
||||
Diluted earnings per share |
$ |
0.22 |
|
|
$ |
0.07 |
|
Condensed interim consolidated statements of cash flows |
|
||||||
(in thousands of Canadian dollars, unaudited) |
For the nine months
|
|
For the nine months
|
||||
|
$ |
|
$ |
||||
|
|
|
(Restated) |
||||
Cash provided by (used in) |
|
|
|
||||
|
|
|
|
||||
Operating activities |
|
|
|
||||
Net income for the period |
$ |
10,286 |
|
|
$ |
3,417 |
|
Items not affecting cash |
|
|
|
||||
Depreciation of property, plant and equipment |
|
2,321 |
|
|
|
2,402 |
|
Amortization of intangible assets |
|
1,213 |
|
|
|
1,308 |
|
Depreciation of right-of-use-assets |
|
4,999 |
|
|
|
6,508 |
|
Interest expense on lease liabilities |
|
1,685 |
|
|
|
1,921 |
|
Share-based compensation expense |
|
238 |
|
|
|
420 |
|
Pension expense |
|
327 |
|
|
|
358 |
|
Loss on disposal of property, plant and equipment |
|
68 |
|
|
|
— |
|
Provisions |
|
— |
|
|
|
7,409 |
|
Amortization of transaction costs |
|
257 |
|
|
|
438 |
|
Accretion of non-current liabilities, capitalized interest expense and accretion of debt modification losses |
|
120 |
|
|
|
64 |
|
Other post-employment benefit plans expense |
|
204 |
|
|
|
104 |
|
Income tax expense |
|
4,007 |
|
|
|
1,271 |
|
|
|
25,725 |
|
|
|
25,620 |
|
Changes in working capital |
|
(10,072 |
) |
|
|
2,033 |
|
Contributions made to pension plans |
|
(731 |
) |
|
|
(692 |
) |
Contributions made to other post-employment benefit plans |
|
(135 |
) |
|
|
— |
|
Provisions paid |
|
(2,938 |
) |
|
|
(5,226 |
) |
Income taxes paid |
|
(831 |
) |
|
|
(1,035 |
) |
|
|
11,018 |
|
|
|
20,700 |
|
|
|
|
|
||||
Investing activities |
|
|
|
||||
Purchase of property, plant and equipment |
|
(928 |
) |
|
|
(615 |
) |
Purchase of intangible assets |
|
(75 |
) |
|
|
(1,076 |
) |
Proceeds on disposal of property, plant and equipment |
|
56 |
|
|
|
— |
|
|
|
(947 |
) |
|
|
(1,691 |
) |
|
|
|
|
||||
Financing activities |
|
|
|
||||
Exercise of warrants |
|
— |
|
|
|
118 |
|
Decrease in restricted cash |
|
515 |
|
|
|
— |
|
Proceeds from credit facilities |
|
5,900 |
|
|
|
— |
|
Repayment of credit facilities |
|
(8,921 |
) |
|
|
(10,277 |
) |
Repayment of promissory notes |
|
— |
|
|
|
(2,185 |
) |
Lease payments |
|
(6,574 |
) |
|
|
(8,503 |
) |
|
|
(9,080 |
) |
|
|
(20,847 |
) |
|
|
|
|
||||
Change in Cash and cash equivalents during the period |
|
991 |
|
|
|
(1,838 |
) |
Cash and cash equivalents – beginning of period |
$ |
901 |
|
|
$ |
578 |
|
Effects of foreign exchange on cash balances |
|
53 |
|
|
|
(5 |
) |
Cash and cash equivalents (Bank overdraft) – end of period |
$ |
1,945 |
|
|
$ |
(1,265 |
) |
________________
1 Note: EBITDA and Adjusted EBITDA are not earnings measures recognized by International Financial Reporting Standards (IFRS), do not have any standardized meanings prescribed by IFRS and might not be comparable to similar financial measures disclosed by other issuers. EBITDA and Adjusted EBITDA should not be construed as alternatives to net income (loss) determined in accordance with IFRS as an indicator of DCM’s performance. For a description of the composition of EBITDA and Adjusted EBITDA, why we believe such measures are useful to investors and how we use those measures in our business, together with a quantitative reconciliation of net income (loss) to EBITDA and Adjusted EBITDA, respectively, see the information under the heading “Non-IFRS Measures” and Table 3 of DCM’s management’s discussion and analysis (MD&A) dated
View source version on businesswire.com: https://www.businesswire.com/news/home/20221108006208/en/
For further information, contact
Mr.
President and Chief Executive Officer
Tel: (905) 791-3151
Mr.
Chief Financial Officer
Tel: (905) 791-3151
ir@datacm.com
Source:
FAQ
What were DCM's earnings results for Q3 2022?
How much did DCM's net income increase in Q3 2022?
What is DCMDF's revenue growth for the first nine months of 2022?
What new business has DCM secured in 2022?
When will DCM host their Q3 2022 earnings call?
