Data Communications Management Corp. · TSX:DCM
Data Communications Management — Investor Presentation (January 2025)
32 slides from Data Communications Management's investor presentation, January 2025
Slide 1: Data Communications Management Corp. Investor Presentation
DATA COMMUNICATIONS MANAGEMENT CORP. INVESTOR PRESENTATION DCM – TSX | DCMDF – OTCQX January 2025
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS INFORMATION DISCLOSURE. Forward-looking Statements Non-IFRS Measures Certain statements in this presentation constitute “forward-looking” statements This presentation includes certain non-IFRS measures as supplementary that involve known and unknown risks, uncertainties an
Slide 3: About DCM
> ABOUT DCM
Slide 4: About Us
HEAD OFFICE: Brampton, Ontario ABOUT US. FOUNDED: 1959 CANADA’S LEADING TECH- MARKET CAPITALIZATION: ENABLED PROVIDER OF PRINT ~$120.6MM (basic) AND DIGITAL SOLUTIONS ~$130.4MM (f.d.) THAT HELP SIMPLIFY COMPLEX PRESIDENT & CEO: MARKETING COMMUNICATIONS Richard Kellam AND OPERATIONS WORKFLOW. LISTING
Slide 5: DCM at a Glance
+400 DCM AT Enterprise clients 20 SCALE Facilities across A GLANCE. 1625 Employees Canada, U.S. 2023 Revenue $473.8M GROWTH (+63.5% vs. 2022) PROFITABILITY • Long-term client contracts 2023 Adj. EBITDA • High retention rate $53.4M (+30.3% vs. 2022) Free cash flow $16.5M (+31.9% vs. 2022) CAD $ Milli
Slide 6: What We Do
WHAT WE DO. WE PROVIDE TECH-ENABLED PRINT AND MARKETING WORKFLOW SOLUTIONS. PERSONALIZED COMMUNICATIONS BUSINESS PROCESS OUTSOURCING MARKETING SOLUTIONS
Slide 7: 400 Enterprise Clients
Handling massive complexity 400 ENTERPRISE Serving diverse industry verticals CLIENTS. High retention rate (>95%)
Slide 8: A Large, Fragmented Canadian Commercial Print Market
A LARGE, FRAGMENTED CANADIAN COMMERCIAL PRINT MARKET.
Slide 9: Acquired Our Largest Competitor Moore Canada Corporation in April 2023
ACQUIRED OUR LARGEST COMPETITOR MOORE CANADA CORPORATION IN APRIL 2023 ALMOST DOUBLING OUR REVENUE ~2x REVENUE PAID ~$100M, NET OF REAL ESTATE ASSET SALES
Slide 10: Revenue
$447.7M REVENUE. $273.8M $235.3M CAD $ Millions 2021 2022 2023
Slide 11: Gross Profit
$118.9M $84.2M GROSS PROFIT. $69.5M CAD $ Millions 2021 2022 2023
Slide 12: Adjusted EBITDA
$53.4M $41.0M ADJUSTED EBITDA* $33.6M CAD $ Millions 2021 2022 2023 * Adjusted EBITDA is a non-IFRS measure, for a reconciliation to its most comparable IFRS Accounting Standards measure, net income, see “Non-IFRS Accounting Standards Measures”
Slide 13: Q3 & YTD 2024 Financial Results
Q3 & YTD 2024 FINANCIAL RESULTS
Slide 14: Q3 2024 and YTD 2024 Revenue
Q3 2024 YTD 2024 REVENUE REVENUE. $108.7M $363.7M -$14.0M vs. Q3 2023 vs. $317.8M YTD 2023 -11.4% +14.5% vs. Q3 2023 vs. YTD 2023 +$46.0M VS. PRIOR YEAR EXIT LOWER MARGIN BUSINESS, LEGACY SYSTEMS MIGRATION, ENTERPRISE ACCOUNT BUDGET SHIFTS
Slide 15: Q3 2024 and YTD 2024 Adjusted EBITDA
Q3 2024 YTD 2024 ADJUSTED EBITDA* ADJUSTED EBITDA* +6.6% +25.4% VS. Q3 2023 VS. YTD 2023 $12.6M $48.1M +$0.8M VS. Q3 2023 VS. $38.4M YTD 2023 11.6% 13.2% OF REVENUE VS. OF REVENUE VS. 9.6% IN Q3 2023 12.1% YTD 2023 REALIZING SYNERGY BENEFITS +$9.7M VS. PRIOR YEAR *Adjusted EBITDA is a non-IFRS measu
Slide 16: Net Debt Reduction Since MCC Acquisition
NET DEBT REDUCTION SINCE MCC ACQUISITION (millions) $145.3 NET $78.3 $75.1 $77.2 DEBT* 24-Apr-23 Q1 2024 Q2 2024 Q3 2024 -$68.1M -46.9% NET DEBT REDUCTION SINCE MCC ACQUISITION * Net debt is a non-IFRS measure, for a reconciliation to its most comparable IFRS Accounting Standards measure, credit fac
Slide 17: Revenue per Employee
REVENUE PER EMPLOYEE* HEADCOUNT AT END OF PERIOD REVENUE PER EMPLOYEE ($ THOUSANDS) $303.8 1859 $300.9 $293.0 $302.4 1787 1625 $255.2 $240.6 1,433 $225.2 $231.7 1,221 1,078 922 910 2018 2019 2020 2021 2022 April 24 2023 Q3 2024 2018 2019 2020 2021 2022 April 24 2023 Q3 2024 2023* YTD 2023* YTD *Tota
Slide 18: Technology Innovation
> TECHNOLOGY INNOVATION
Slide 19: ASMBL Launched in July 2024
ASMBL LAUNCHED IN JULY 2024 DCM’s proprietary, fully AI-enabled Digital Asset Management (“DAM”) solution DCM COMMERCIAL ONLINE SAAS SELLING Government Healthcare Financials Transportation Automotive Emerging Markets Retail Airlines Hospitality
Slide 20: Acquisition of Zavy
LEADING SOCIAL MEDIA ANALYTICS AND MANAGEMENT SAAS PLATFORM LARGE AND ACQUISITION FAST-GROWING MARKET OF ZAVY The social media analytics solutions and services market is expected to grow at a 24.9% CAGR over the next 5 years from US$4.8 billion in 2023 to US$14.7 billion in 20281. 1 Source: Marketsa
Slide 21: Investment Highlights
> INVESTMENT HIGHLIGHTS
Slide 22: 2024 Strategic Priorities
2024 STRATEGIC PRIORITIES MCC GROSS PROFIT GROWING OUR GENERATE HIGHER INTEGRATION IMPROVEMENT BUSINESS LEVELS OF FCF • Complete planned plant • Strategic revenue • Expanding product / • Focus on margin consolidation management services offerings improvement & • Harmonize technology • Lower overhead
Slide 23: M&A Strategy
M&A STRATEGY HIGH VALUE MARKETING TECHNOLOGY PRINT SERVICES SOLUTIONS • Strategic fit: • Complementary • Workflow • Clients services & clientele • Marketing technology • Capabilities • Vertical integration to • Growth leverage our print • Margin capabilities
Slide 24: Capitalization and Ownership
CAPITALIZATION AND OWNERSHIP Ownership summary Capitalization “DCM” on TSX (Fully diluted) Recent Share Price (Jan. 10, 2025) $2.18 Directors and Officers 52 week high/low $3.85/$1.71 (26.7%) Common Shares Outstanding 55.3M Options ($1.18 average ex. price) 4.2M ESOP (excl. Warrants ($3.16 average e
Slide 25: Investment Highlights
INVESTMENT HIGHLIGHTS LEADING POSITION IN THE CANADIAN MARKET FOCUSED ON PROFITABLE GROWTH TRACK RECORD OF DEBT REDUCTION AND CASH FLOW GENERATION MCC INTEGRATION AND SYNERGY REALIZATION AHEAD OF PLAN FUTURE GROWTH ENHANCED BY TECHNOLOGY INNOVATION AND M&A EXPERIENCED LEADERSHIP TEAM THAT DELIVERS R
Slide 26: Contact Information
For more information, please visit www.datacm.com or for investor, media and corporate development inquiries reach out to: CONTACT RICHARD KELLAM JAMES LORIMER INFORMATION President & CEO Chief Financial Officer rkellam@datacm.com jlorimer@datacm.com +1 (416) 451-1117 +1 (905) 494-4101 DCM – TSX | D
Slide 27: Non-IFRS Accounting Standards Measures
NON-IFRS ACCOUNTING STANDARDS MEASURES
Slide 28: EBITDA and Adjusted EBITDA Reconciliation
EBITDA AND ADJUSTED EBITDA RECONCILIATION The following table provides reconciliations of net (loss) income to EBITDA and of net (loss) income to Adjusted EBITDA for t he periods noted, following adoption of “net fair value (gains) losses on financial liabilities at fair value through profit or loss
Slide 29: EBITDA and Adjusted EBITDA Reconciliation
EBITDA AND ADJUSTED EBITDA RECONCILIATION The following table provides reconciliations of net (loss) income to EBITDA and of net (loss) income to Adjusted EBITDA for t he periods noted, following adoption of “net fair value (gains) losses on financial liabilities at fair value through profit or loss
Slide 30: Adjusted Net Income Reconciliation
ADJUSTED NET INCOME RECONCILIATION The following table provides reconciliations of net income to Adjusted net income and a presentation of Adjusted net income per share for the periods noted. . See “Non-IFRS Accounting Standards measures” section in our most recent interim and annual filings on SEDA
Slide 31: Adjusted Net Income Reconciliation
ADJUSTED NET INCOME RECONCILIATION The following table provides reconciliations of net income to Adjusted net income and a presentation of Adjusted net income per share for the periods noted. See “Non-IFRS Accounting Standards measures” section in our most recent interim and annual filings on SEDAR+
Slide 32: Thank You
weg = THANK YOU
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