DATA Communications Management Corp. Reports Continued Progress Advancing Its Plant Optimization and Strategic Capital Investments

Rhea-AI Summary

DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) reported progress in consolidating its plant network from 14 to 10 main production facilities to improve operating efficiency following its 2023 acquisition of Moore Canada The company completed the consolidation of its Thistle Printing and Toronto commercial printing operations at 180 Bond Ave. in Toronto, investing in new equipment and facility upgrades. DCM has accelerated production and equipment moves from Fergus and Trenton, Ontario factories to Drummondville, Quebec and Brampton, Ontario factories. The company expects to substantially complete these two remaining planned plant closures and associated production transfers by the end of 2024.

Positive

• Consolidation of plant network from 14 to 10 main production facilities to improve operating efficiency
• Investment in new state-of-the-art equipment and facility upgrades at the Toronto plant
• Strategic capital investments in technology and equipment to enhance production quality and efficiency
• Expected completion of plant consolidation by end of 2024, potentially leading to cost savings

Negative

• Potential short-term disruptions and costs associated with plant closures and consolidations

Company Expects to Substantially Complete Operations Integration by End of 2024

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 continued progress consolidating its plant network from 14 to 10 main production facilities to improve its operating efficiency following the Company’s 2023 acquisition of Moore Canada Corporation (“MCC”).

Most recently, DCM completed the consolidation of its Thistle Printing and Toronto commercial printing operations, bringing together the two facilities at 180 Bond Ave. in Toronto. DCM has invested in new state-of-the-art equipment in the plant and completed other upgrades to the facility, providing additional capacity for future growth and production efficiencies.

“I am very pleased with the progress our teams have made over the last 12 months in the planning and execution of our strategy to optimize our operations network,” said Richard Kellam, President & CEO of DCM. “We are also making strategic capital investments in the latest technology and equipment in our remaining plants consistent with our commitment to providing high quality solutions for our clients, and investing in markets where we see strong potential for growth.”

The company has also accelerated production and equipment moves from its Fergus, Ontario and Trenton, Ontario factories to its Drummondville, Quebec and Brampton, Ontario factories, respectively. DCM expects to substantially complete these two remaining planned plant closures and associated production transfers by the end of 2024.

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. DCM serves 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 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.

Additional factors are discussed 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801602014/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

Source: DATA Communications Management Corp.

FAQ

What progress has DATA Communications Management Corp. (DCMDF) made in its plant optimization strategy?

DCM has consolidated its Thistle Printing and Toronto commercial printing operations, invested in new equipment, and accelerated production moves from Fergus and Trenton to Drummondville and Brampton. The company expects to complete its plant network consolidation from 14 to 10 facilities by the end of 2024.

How many production facilities will DCM (DCMDF) have after completing its consolidation plan?

After completing its consolidation plan, DCM will have 10 main production facilities, down from the original 14.

When does DATA Communications Management Corp. (DCMDF) expect to complete its plant consolidation process?

DCM expects to substantially complete the remaining planned plant closures and associated production transfers by the end of 2024.

What investments has DCM (DCMDF) made in its Toronto facility?

DCM has invested in new state-of-the-art equipment and completed upgrades to its Toronto facility at 180 Bond Ave., providing additional capacity for future growth and production efficiencies.