Mr. Richard Kellam reports

DATA COMMUNICATIONS MANAGEMENT CORP. ANNOUNCES FIRST-QUARTER 2024 FINANCIAL RESULTS

Data Communications Management Corp. today released its first quarter 2024 financial results.

First quarter 2024 highlights

• Revenues of $129.3-million were up plus 69.9 per cent, or plus $76.1-million versus Q1 2023.
• Gross profit of $37.3-million increased plus 57.9 per cent or $13.7-million.
• Gross profit as a percentage of revenues of 28.9 per cent, a sequential improvement that shows the company's progress toward its goal of returning its gross margin to the plus 30 per cent range.
• SG&A (selling, general and administrative) expenses were $25.4-million or 19.6 per cent of revenues in Q1 2024, compared with 18.1 per cent of revenues in Q1 2023. Higher relative SG&A expenses in the quarter primarily related to a one-time consulting project.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $18.7-million, an increase of plus 46.2 per cent versus the prior year.
• Adjusted EBITDA represented 14.4 per cent of revenues, compared with 16.8 per cent for 2023, consistent with its planned objectives to improve.
• Adjusted EBITDA margins to more than 14 per cent.
• Net income was $1.5-million compared with a net loss of $2.4-million last year; adjusted net income was $4.9-million compared with $5.9-million last year.
• Net debt at the end of Q1 2024 was $78.3-million, down negative $66.9-million or negative 46.1 per cent since the closing of the MCC acquisition. The company ended the quarter with a net debt to trailing-12-month adjusted EBITDA (net of lease payments) ratio of 1.8 times. The company's commitment to paying down debt remains a key priority.

Management commentary

"I am pleased to report on the continued progress of our business in the first quarter of 2024, following a transformative year in 2023 when we completed our acquisition of Moore Canada Corp. (MCC) and made substantial progress in our post-acquisition integration," said Richard Kellam, president and chief executive officer of Data Communications.

"Our focus in the first quarter and for the balance of the year is on delivering our postacquisition integration commitments. These priorities include consolidating our plant network, integrating legacy MCC systems, completing our restructuring plans, focusing on profitable growth and realizing total annualized postacquisition synergies of between $30-million and $35-million within the next year.

"We are optimistic about our full year outlook based on order trends we are seeing, new logo wins and progress on our initiatives to drive improved operating performance, including strategic revenue management opportunities, improving product mix and leveraging our expanded suite of product and service offerings."

First quarter 2024 earnings call

The company will host a conference call and webcast on Tuesday, May 14, 2024, at 9 a.m. Eastern Time. Mr. Kellam, and James Lorimer, chief financial officer, will present the first quarter of 2024 results followed by a live Q&A (question-and-answer) period.

Instructions on how to access both the webcast and call are available herein.

Data Communications will be using Microsoft Teams to broadcast its earnings call, which will be accessible via the options listed herein.

On-line:  see link in the original version of this release

Meeting ID:  284 159 172 699

Pass code:  rVeV5u

Or call in (audio only):  1-647-749-9154, 174293459 followed by the pound key; Canada, Toronto

Phone conference ID:  174 293 459 followed by the pound key

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.

About Data Communications Management Corp.

Data Communications 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. Data Communications serves major brands in vertical markets including financial services, retail, health care, energy, other regulated industries and the public sector. It integrates seamlessly into its clients' businesses thanks to its deep understanding of their needs, transformative tech-enabled solutions and end-to-end service offering. Whether the company is running technology platforms, sending marketing messages or managing print workflows, its goal is to make everything surprisingly simple.

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