34 slides from Data Communications Management's investor presentation, April 2025
Slide 1: Data Communications Management Corp. Investor Presentation
DATA COMMUNICATIONS MANAGEMENT CORP. INVESTOR PRESENTATION DCM – TSX | DCMDF – OTCQX April 2025
Slide 2: Forward-Looking Statements and Information Disclosure
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 FOUNDED: ABOUT US. 1959 MARKET CANADA’S LEADING TECH- CAPITALIZATION: ~$102.3MM (basic) ENABLED PROVIDER OF PRINT ~$118.2MM (f.d.) AND DIGITAL SOLUTIONS PRESIDENT & CEO: THAT HELP SIMPLIFY COMPLEX Richard Kellam MARKETING COMMUNICATIONS LISTING: AND OPERATIONS WORKFLOW
Slide 5: DCM at a Glance
+400 DCM AT Enterprise clients 20 SCALE Facilities across A GLANCE. 1400 Employees Canada, U.S. 2024 Revenue $480.0M GROWTH (+7.2% vs. 2023) PROFITABILITY • Long-term client contracts 2024 Adj. EBITDA • High retention rate $63.9M (+19.7% vs. 2022) CAD $ Millions
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: A Large, Fragmented Canadian Commercial Print Market
A LARGE, FRAGMENTED CANADIAN COMMERCIAL PRINT MARKET.
Slide 8: 400 Enterprise Clients
Handling massive complexity 400 ENTERPRISE Serving diverse industry verticals CLIENTS. High retention rate (>95%)
Slide 9: Diverse, Blue-Chip Clients
DIVERSE, BLUE-CHIP CLIENTS. Revenues by End Market Revenues by Client 2024 2024 Financial Top 10 All others, Retail 2% 27% 11% Clients, 30% Manufacturing 5% Services 6% Transportation $480.0M 18% 101 - 250, +2,500 Healthcare 8% 13% Lottery Next 40, 8% 51 - 100, Government 34% 9% 12% Energy 8% 9% Oth
Slide 10: Returning Capital to Shareholders
Special dividend $0.20 cash PER SHARE1 RETURNING Quarterly dividend CAPITAL TO SHARE- $0.025 cash PER SHARE2 HOLDERS. Dividend yield 4.5% 3 1. Payable on March 25, 2025, to shareholders of record on March 12, 2025 2. Payable on April 4, 2025, to shareholders of record on March 21, 2025 3. Implied di
Slide 11: Fiscal 2024 Financial Results
FISCAL 2024 FINANCIAL RESULTS
Slide 12: 2024 Revenues
2024 REVENUES. $500.0 $480.0 $447.7 $400.0 2024 Revenues +$32.3M and +7.2% vs. 2023 (in $millions) $300.0 $273.8 $235.3 $200.0 3-YR CAGR 26.8% $100.0 $- 2021 2022 2023 2024
Slide 13: 2024 Gross Profit
2024 GROSS PROFIT. $150.0 80.0% $130.1 70.0% $118.9 2024 Gross Profit +$11.2M and +9.4% 60.0% vs. 2023 Gross Profit (in $millions) $100.0 Gross Margin $84.2 50.0% 2024 Gross Margin $69.5 40.0% +50BPS vs. 2023 30.0% $50.0 30.8% 29.5% 26.6% 27.1% 20.0% 3-YR CAGR 10.0% 23.2% $- 0.0% 2021 2022 2023 2024
Slide 14: 2024 Adjusted EBITDA
2024 ADJUSTED EBITDA. $75.0 50.0% $63.9 2024 Adjusted 40.0% EBITDA $53.4 +$10.5M and +19.7% Adjusted EBITDA (in $millions) vs. 2023 Adjusted EBITDA Margin $50.0 $41.0 30.0% $35.6 Adjusted EBITDA Margin 20.0% +140BPS $25.0 vs. 2023 15.1% 15.0% 13.3% 10.0% 11.9% 3-YR CAGR 21.5% $- 0.0% 2021 2022 2023
Slide 15: Revenue by Reporting Segment
REVENUE BY REPORTING SEGMENT. $20.0 $500.0 $14.7 $400.0 Tech-enabled Services & Fees $418.5 $396.3 Higher margin tech-services (in millions) $5.3 revenue of $20M, +$14.7M or $300.0 277% vs. 2022 (pre-MCC) $200.0 $239.4 4.2% of total revenue vs. 1.9% in 2022 $100.0 Product Sales $418.5M, up from $239
Slide 16: Driving Record Productivity
DRIVING RECORD PRODUCTIVITY. Revenue per Employee1 vs. Active # of Employees $337.5 3,000 $300.9 $302.4 Revenue per employee grew to Revenue per Employee (in $thousands) $293.0 2,500 $300.0 $337.5k +11.6% vs. 2023 $255.2 2,000 +15.2% vs. MCC acquisition 1,859 1,787 1,500 Operational & organizational
Slide 17: Synergies
SYNERGIES* OPERATIONAL ORGANIZATIONAL PROCUREMENT REVENUE Achieved target of $30M-$35M in annualized synergies exiting 2024 * “Annualized synergies” have not been prepared in accordance with IFRS Accounting Standards, nor has a reconciliation to IFRS Accounting Standards been provided. For a descrip
Slide 18: Platform for Profitable Growth
PLATFORM FOR PROFITABLE GROWTH
Slide 19: Solid Base for Profitable Growth
SOLID BASE FOR PROFITABLE GROWTH. Integration initiatives fully completed Large market opportunity within existing product portfolio Unique platform of martech / AI-enabled digital capabilities Target new markets provide upsized growth opportunities Well-capitalized, positioned to deliver shareholde
Slide 20: Strong Balance Sheet to Pursue Growth Objectives
STRONG BALANCE SHEET TO PURSUE GROWTH OBJECTIVES. Net Debt and Net Debt to pro forma Total Credit Availability (in millions) Adjusted EBITDA1 $60.6 $160.0 10.0x $145.7 9.0x $50.0 $20.0 8.0x $120.0 Accordian Net Debt (in $millions) 7.0x $85.8 6.0x Excess $78.9 $80.0 5.0x availability $25.0 $34.7 Cash
Slide 21: Synergy in Action
SYNERGY IN ACTION Leveraging Combined Capabilities for GROWTH CCM 360 DCM Digital-first model Teams Tech + One Large Asset Manager Company Expanded/refined Case Study production capabilities Resources SALES ENABLEMENT + Innovation Multinational Distributor Case Study
Slide 22: Unlocking New Market Potential
UNLOCKING NEW MARKET POTENTIAL ENHANCED PRODUCT CATEGORIES IN GROWTH MARKETS PRIME LABELS PAPERBOARD PACKAGING CARD ENCODING/AFFIXING • Cosmetics • Beverage • Loyalty programs • Beverage • Nutraceuticals • Healthcare • Healthcare • Grocery In-store • Health & Beauty • Household • Meal delivery • Hos
Slide 23: Growth Beyond Boundaries
GROWTH BEYOND BOUNDARIES Expanding into new vertical markets GROCERY AUTOMOTIVE QSR FUEL/C-STORE TELCO RETAIL AGENCY CPG
Slide 24: AI-Enabled Marketing Platform
AI-ENABLED MARKETING PLATFORM Large FI Not For Profit Global CPG Case Study Case Study Case Study
Slide 25: 2025 Priorities
2025 PRIORITIES Drive profitable organic growth by leveraging our expanded suite of tech-enabled offerings, strengthening our presence in key industry verticals and securing new business wins. Deliver a return on new capital investments focused on enhancing our production capabilities and positionin
Slide 26: Long Term Financial Objectives
LONG TERM FINANCIAL OBJECTIVES. REVENUES GROSS PROFIT ADJUSTED EBITDA1 % OF REVENUES % OF REVENUES In excess of +14% +5% CAGR Return to +30% on annual basis We are reiterating our long-term objectives for growth and profitability 1. Adjusted EBITDA is a non-IFRS measure, for a reconciliation to its
Slide 27: Investment Highlights
> INVESTMENT HIGHLIGHTS
Slide 28: Capitalization and Ownership
CAPITALIZATION AND OWNERSHIP Ownership summary Capitalization “DCM” on TSX (Fully diluted) Recent Share Price (Mar. 31, 2025) $1.85 Directors and Officers 52 week high/low $3.45/$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 29: Highlights
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 completed Future growth enhanced by technology innovation and M&A Experienced leadership team that delivers results
Slide 30: 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 31: Non-IFRS Accounting Standards Measures
NON-IFRS ACCOUNTING STANDARDS MEASURES
Slide 32: 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 the periods noted, following adoption of “net fair value (gains) losses on financial liabilities at fair value through profit or loss”
Slide 33: 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 34: Thank You
we =6T HANK YOU