DCM expects to report fiscal 2024 revenue in the range of $478 to $480 million, and Adjusted EBITDA1 in the range of $62 to $64 million
Objective to return gross profit margins to +30% remains on track
Final audited financial results to be announced after-market close on March 12, 2025, with a conference call and webcast at 9:00 a.m. EST on Thursday March 13, 2025
BRAMPTON, Ontario, February 27, 2025--(BUSINESS WIRE)--DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) ("DCM" or the "Company"), a leading Canadian provider of print and digital solutions that help simplify complex marketing communications and workflow, today announced unaudited preliminary financial results for the fiscal year ended December 31, 2024.
"We completed the complex integration of Moore Canada Corporation ("MCC") on budget and nearly a full year ahead of our original schedule," said Richard Kellam, President & CEO of DCM. "The actions we took during 2024 to accelerate the consolidation of our plant network, integrate our ERP and back-office systems, and harmonize our offerings to customers required a significant investment of time, resources, and attention by our teams. These actions, along with decisions we made to exit certain low margin accounts, shifts in project timing for some large enterprise clients, and the Canada Post strike at year-end impacted our growth in 2024."
"With the internal focus of the integration behind us and our restructuring complete, we believe we are well positioned to leverage our larger scale, expanded product mix and the skills and capabilities of our team to deliver on our commitment to driving profitable growth, returning to pre-acquisition levels of +30% gross profit margins, and delivering strong free cash flow1 going forward," Kellam added.
Fiscal 2024 Preliminary Results Based on preliminary results, for the full fiscal year 2024, DCM expects to report:
Total revenues in the range of $478 to $480 million
Gross Profit as a percentage of revenues of approximately 27%
Adjusted EBITDA in the range of $62 to $64 million
Total Net Debt1 at the end of 2024 of approximately $79 million
These preliminary results are based on the Company’s current expectations and may be adjusted as a result of the completion of customary annual audit procedures.
Q4 and Fiscal 2024 Planned Release Details The Company plans to release its fourth quarter and fiscal 2024 results after-market close on Wednesday, March 12, 2025, and host a conference call and webcast on Thursday, March 13, 2025, at 9:00 a.m. EST. Mr. Kellam and James Lorimer, CFO, will present the results followed by a live Q&A.
All attendees must register for the webinar prior to the call. Please complete the phone field in the form at the above link (prior to the start of the event) if you wish to dial in.
The Company’s full results will be posted on its Investor Relations page and on SEDAR+. A video message from Mr. Kellam will also be posted on the Company’s website.
1 Adjusted EBITDA, Free Cash Flow and Net Debt are non-IFRS Accounting Standards measures. For a description of the composition of these and other non-IFRS Accounting Standards measures used in this press release, and a reconciliation to their most comparable IFRS Accounting Standards measure, where applicable, please see our most recent Management Discussion & Analysis filed on www.sedarplus.ca.
About DATA Communications Management Corp. DCM is a leading Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. DCM serves over 2,500 clients including 70 of the 100 largest Canadian corporations and leading government agencies. Our core strength lies in delivering individualized services to our clients that simplify their communications, including customized printing, highly personalized marketing communications, campaign management, digital signage, and digital asset management. From omnichannel marketing campaigns to large-scale print and digital workflows, our goal is to make complex tasks surprisingly simple, allowing our clients to focus on what they do best.
Additional information relating to DCM is available on www.datacm.com, and in the disclosure documents filed by DCM 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 most recent annual and interim Management Discussion and Analysis filed on SEDAR+, and include but are not limited to the following: declines in print consumption; the impact of tariffs and responses thereto (including by governments, trade partners and customers), which may include, without limitation, retaliatory tariffs, export taxes, restrictions on exports to the U.S. or other measures, and the effect of governmental regulations and policies in general; our ability to achieve and meet our revenue, profitability, free cash flow and debt reduction targets for 2025 and in the future; while we have received consents from our lenders for the declaration and payment of the special dividend and regular recurring dividend, including the exclusion of the special dividend from our fixed charge coverage ratios, our financial leverage may increase, and there is no guarantee that we will pay such dividends in the future; and, our ability to comply with our financial and other covenants under our credit facilities, which may preclude us from paying future dividends if our outlook and future financial liquidity changes.
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+.
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 our most recent annual and interim Management Discussion and Analysis and filed on SEDAR+ at www.sedarplus.ca.
