33 slides from Data Communications Management's earnings presentation, May 11, 2022
Slide 1: Q1 2022 Report to Shareholders
Q1 2022 Report to Shareholders DATA Communications Management Corp. DCM-TSX | DCMDF-OTCQX May 11, 2022
Slide 2: Forward-looking Statements and Non-IFRS Measures
Forward-looking Statements Information Disclosure Forward-looking Statements Non-IFRS Measures Certain statements in this presentation constitute “forward-looking” statements that involve known This presentation includes certain non-IFRS measures as supplementary information. In and unknown risks, u
Slide 3: Better and Bigger Business
Better and Bigger Business DCM :
Slide 4: Five-year Financial Objectives
Five-year Financial Objectives From print first to digital first Targets: 5%+ 35-40% 18-20% 18-22% Revenue CAGR Gross Margins SG&A Adjusted EBITDA
Slide 5: Momentum
Momentum DCM °
Slide 6: Bigger Business
Bigger Business DCM °
Slide 7: Revenue
Revenue +11.1% $69.3M vs. Q1 2021 vs. $62.4M Q1 2021 Best growth rate in 17 quarters! 7
Slide 8: Gross Profit
Gross Profit +8.1% $20.3M vs. Q1 2021 vs. $18.8M Q1 2021 Highest gross profit since Q1 2020 8
Slide 9: Net Income
Net Income +111% $3.7M vs. Q1 2021 vs. $1.8 M Q1 2021 First quarter in the last 8 with $0 government subsidies 9
Slide 10: EBITDA
EBITDA +28.9% $9.4M vs. Q1 2021 vs. $7.3M Q1 2021 Best “clean/non-adjusted” results in +10 Years 10
Slide 11: New Business Wins
New Business Wins +$12M Financial services Healthcare Regulated industries Retail 100% of new business “tech-enabled” in Q1 2022 Manufacturing Hospitality Lottery services 11
Slide 12: Digital-First Acceleration
32% revenue Digital-First Acceleration 12
Slide 13: Digital-First Acceleration: $10M pipeline opportunities
$10M pipeline opportunities Digital-First Acceleration 13
Slide 14: Better Business
Better Business DCM *
Slide 15: SG&A
SG&A -8.5% -$1.3M 19.7% vs. Q1 2021 vs. Q1 2021 of Revenue Continued cost control focus
Slide 16: Employee Productivity
Employee Productivity Headcount at End of Period Revenue per Employee* (thousands) $255.2 $264.4 $231.7 $240.6 1,411 1,433 $225.2 $205.2 1,221 1,078 922 916 2017 2018 2019 2020 2021 Q1 '22 2017 2018 2019 2020 2021 TTM Productivity per employee continues to improve * Revenue per Employee is a non-GAA
Slide 17: Restructuring Expenses
Restructuring Expenses $0 $3.4M in Q1 2022 in Q1 2021 Right-sizing is complete and $0 restructuring forecast in 2022 17
Slide 18: Debt
Debt -7.7 % $34.2M at Q1 2022 vs. Q4 2021 vs. $37.1 Q4 2021 Continued focus on debt repayment 18
Slide 19: Current Term Debt Maturity Profile
Current Term Debt Maturity Profile Outstanding term credit facility balances (millions) $40.0 $34.2 $30.0 $11.0 $21.4 $2.2 $20.0 $9.4 $9.4 $1.2 $9.6 $10.0 $1.7 $4.9 $6.3 $4.7 $9.7 $7.9 $5.8 $- $- $1.8 31-Dec-21 2022 2023 2024 2025 2026 Bank Term Facility FPD III FPD IV FPD V FPD VI On track to zero
Slide 20: Environmental, Social & Governance
Environmental, Social & Governance Clear ESG strategy with sustainability at its core 20
Slide 21: Productivity Improvements
Productivity Improvements Wellington/ Multi Layer/ Mississauga Edmonton Old Digital Etobicoke Fewer Spans $14M in annualized savings Fewer Layers/ Brampton Calgary Adelaide New Digital Larger Spans Fully optimized footprint for future 21
Slide 22: James Lorimer
James Lorimer Chief Financial Officer 22
Slide 23: First Quarter 2022 Financial Results
First Quarter 2022 Financial Results Quarter ended March 31, in millions Selected financial information Q1 2022 Q1 2021 Better/(Worse) Revenues $69.3 $62.4 +$6.9 Gross profit $20.3 $18.8 +$1.5 Gross profit % of revenues 29.3% 30.1% -80 bps SG&A* $13.6 $14.9 +$1.3 Restructuring expenses $0.0 $3.4 +$3
Slide 24: Continued Revenue Momentum in Q1 2022
Continued Revenue Momentum in Q1 2022 Quarterly Revenue (millions) $69.3 $62.4 $60.9 $55.2 $56.9 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 2022 +11% y/y represents best comparative quarter since 2018 24
Slide 25: Continued Gross Profit Momentum in Q1 2022
Continued Gross Profit Momentum in Q1 2022 Quarterly Gross Profit (millions) $20.3 $18.8 $17.7 $17.2 $15.8 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 2022 gross profit +8% vs. Q1 2021 25
Slide 26: Committed to "Clean" EBITDA Growth
Committed to “Clean” EBITDA Growth Quarterly EBITDA (millions) $9.4 $7.3 $6.4 $6.4 $5.0 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q1 2022 EBITDA up ~30% vs. Q1 2021 26
Slide 27: Strong EBITDA in 2021 and on a Trailing Basis
Strong EBITDA in 2021 and on a Trailing Basis Quarterly EBITDA (millions) $9.3 $9.4 $9.4 $7.3 $7.3 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 $33.3M of Adjusted EBITDA in 2021 ~ $33.4M on TTM basis 27
Slide 28: Momentum
Momentum DCM 7?
Slide 29: Digital Start-up With
Digital Start-up With: • 250 enterprise clients • +2,000 SME clients Clients • Penetration across 8 key verticals • +60 commercial sales reps • +40 years managing digital assets • Advanced tech-enabled workflow Capabilities • API architecture • Significant install base of FLEX-enabled applications •
Slide 30: Momentum Builds Momentum
Momentum Builds Momentum Revenue vs. Prior Year 15.0% 11.1% 10.0% 5.0% Q1 ‘20 Q2 ‘20 Q3 ‘20 Q4 ‘20 Q1 ‘21 Q2 ‘21 Q3 ‘21 0.5% 0.0% -1.4% -0.8% Q4 ‘21 Q1 ‘22 -5.0% -10.0% -8.2% -9.2% -15.0% -13.7% -15.2% -20.0% -19.4% COVID Restrictions -25.0% 30
Slide 31: Better and Bigger Business
Better and Bigger Business 31
Slide 32: Thank you
Thank you SURPRISINGLY SIMPLE DCM" 32 7
Slide 33: Contact Information
Contact Information For more information, please visit www.datacm.com or reach out to: Investor, media and corporate development inquiries James Lorimer Richard Kellam Chief Financial Officer President & CEO jlorimer@datacm.com rkellam@datacm.com +1 (905) 494-4101 +1 (416) 451-1117 DCM – TSX | DCMDF