Mr. Richard Kellam reports

DATA COMMUNICATIONS MANAGEMENT CORP. ANNOUNCES PRELIMINARY FINANCIAL RESULTS FOR FISCAL 2024

Data Communications Management Corp. has released its unaudited preliminary financial results for the fiscal year ended Dec. 31, 2024.

"We completed the complex integration of Moore Canada Corp. (MCC) on budget and nearly a full year ahead of our original schedule," said Richard Kellam, president and chief executive officer of Data Communications. "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 preacquisition levels of plus-30-per-cent gross profit margins and delivering strong free cash flow1 going forward," Mr. Kellam added.

Fiscal 2024 preliminary results

Based on preliminary results, for the full fiscal year 2024, Data Communications expects to report:

• Total revenues in the range of $478-million to $480-million;
• Gross profit as a percentage of revenues of approximately 27 per cent;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) in the range of $62-million to $64-million;
• Total net debt (1) 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 (fourth quarter) and fiscal 2024 planned release details

The company plans to release its fourth quarter and fiscal 2024 results after the market close on Wednesday, March 12, 2025, and host a conference call and webcast on Thursday, March 13, 2025, at 9 a.m. EST. Mr. Kellam and James Lorimer, chief financial officer, will present the results followed by a live Q&A (question-and-answer) period.

Register for the webcast on-line prior to the start of the event.

All attendees must register for the webinar prior to the call. Please complete the phone field in the form (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 (international financial reporting standards) accounting standards measures. For a description of the composition of these and other non-IFRS accounting standards measures used in this news release and a reconciliation to their most comparable IFRS accounting standards measure, where applicable, please see the company's most recent management's discussion and analysis filed on SEDAR+.

About Data Communications Management Corp.

Data Communications is a leading Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. The company serves over 2,500 clients, including 70 of the 100 largest Canadian corporations and leading government agencies. Its core strength lies in delivering individualized services to its 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, the company's goal is to make complex tasks surprisingly simple, allowing its clients to focus on what they do best.

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