DCM Pre-releases Q1 2022 Results and Announces Earnings Release Details

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 announced preliminary financial results for the first quarter of 2022 and that it expects to release its financial results for the first quarter 2022 the evening of May 10, 2022.

Q1 2022 Preliminary Financial Results

DCM is currently finalizing its financial results for the three months ended March 31, 2022. While complete financial information and operating data are not yet available, set forth below are certain preliminary results of DCM’s financial results for this quarter, subject to final adjustments and other developments that may arise between now and the time such financial results are finalized. Based on preliminary results, management expects:

• Revenue for the first quarter of 2022 of approximately $69 million, an increase of approximately 11% compared to that in the first quarter of 2021;
• Gross profit of approximately $20 million, an increase of approximately 8% compared to the first quarter of 2021;
• EBITDA equal to Adjusted EBITDA of approximately $9.4 million in the first quarter of 2022, compared to $7.3 million and $9.3 million, respectively, in the first quarter of 2021, with EBITDA up approximately 29% compared to last year; Adjusted EBITDA in the first quarter of 2021 benefited from the add-back of $3.4 million of restructuring expenses and included $1.9 million of government grant income;
• No restructuring expenses or other “adjustments” to EBITDA in the first quarter of 2022. The Company’s current outlook anticipates no restructuring charges in the balance of fiscal 2022;
• 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 March 24, 2022 for the year ended December 31, 2021.

“We are very pleased to provide this update to shareholders, in advance of our presentation later today at the Planet MicroCap Showcase 2022 at Bally’s Hotel & Casino in Las Vegas, Nevada,” said Mr. Kellam. “The momentum we carried out of 2021 set us up to deliver one of our best comparable quarters since 2018. We expect this positive momentum in our business to continue through the balance of 2022. We look forward to providing our complete financial results on May 10, 2022.”

To access DCM’s live Planet MicroCap Showcase 2022 presentation, please click the webcast link below:

Planet MicroCap Showcase 2022 in Las Vegas

Date: Wednesday, May 4, 2022

Time: 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)

Webcast: https://www.webcaster4.com/Webcast/Page/2862/45075

Q1 2022 Earnings Call

The Company will host a conference call and webcast on Wednesday, May 11, 2022, at 9.00 a.m. Eastern time. Richard Kellam, President and CEO of DCM, and James Lorimer, CFO, will present the first quarter 2022 results followed by a live Q&A period.

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,,387296132# Canada, Toronto

Phone Conference ID: 387 296 132#

The Company’s full results will be posted on its Investor Relations page and on www.sedar.com. A video message from Richard Kellam, DCM’s President and CEO will also be posted on the Company’s website.

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. 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 pieces, our goal is to make every interaction with us 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 the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

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 that future 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’s discussion and analysis, annual information form, and 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 presentation 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 references to certain non-IFRS measures and ratios. 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, one-time 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 revenues divided by Adjusted EBITDA and Adjusted net income (loss) as a percentage of revenues means revenues divided by adjusted net income (loss), 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 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.

A reconciliation of net income (loss) to EBITDA and a reconciliation of net income (loss) to Adjusted EBITDA, will be included in Table 3 of the Management's Discussion & Analysis for the first quarter of 2022 which will be filed on www.sedar.com once the Company’s financial results for such period are finalized; and a reconciliation of net income (loss) to Adjusted net income (loss) and a presentation of Adjusted net income (loss) per share, will be included in Table 4 of such MD&A as well.

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