DATA Communications Management Corp. Announces Initiation of a Dividend Program and Declares Special Dividend

Yahoo

20-02-2025

Special cash dividend of $0.20 per share payable on March 25, 2025 to shareholders of record on March 12, 2025
Initial regular quarterly dividend of $0.025 per share payable on April 4, 2025 to shareholders of record on March 21, 2025
BRAMPTON, Ontario, February 20, 2025--(BUSINESS WIRE)--DATA Communications Management Corp. (TSX: DCM; OTCQX: DCMDF) ("DCM" or the "Company"), a leading Canadian provider of print and digital solutions that help simplify complex marketing communications and workflow, today announced that its Board of Directors (the "Board") has declared a special dividend to shareholders and approved the commencement of a regular quarterly dividend program.
"The Board's approval of this dividend program reflects our commitment to enhancing shareholder returns and underscores our confidence in DCM's growth potential and free cash flow1 generation capabilities moving forward, following the accelerated integration of the Moore Canada Corporation business into DCM," said J.R. Kingsley Ward, Chair of the Board.
Special Dividend
The Board has approved the declaration of a special cash dividend of $0.20 per common share to be paid on March 25, 2025 to shareholders of record on March 12, 2025. Approximately $0.10 of the special dividend is designated as an eligible dividend and $0.10 is designated as an ineligible dividend for Canadian income tax purposes.
Regular Dividend Program
The Board has also initiated a recurring, quarterly dividend program. In connection with the new dividend program, the Board has approved an initial quarterly dividend of $0.025 per common share to be paid on April 4, 2025 to shareholders of record as of March 21, 2025. The initial quarterly dividend will be designated as an eligible dividend for Canadian income tax purposes. The Board currently intends to review its dividend policy on an annual basis.
With these announcements, DCM has committed an initial $12.4 million to distribute to shareholders.
This dividend program is made possible by the Company's significantly improved financial leverage subsequent to the acquisition and accelerated integration of Moore Capital Corporation and higher levels of free cash flow expected to be generated in 2025 and in the future.
_____________________1 Free cash flow is a non-IFRS Accounting Standards financial measure we use to monitor the availability of discretionary cash as part of our capital management. For a reconciliation of free cash flow to its most comparable IFRS Accounting Standards measure, total cash generated from operating activities, see "Non-IFRS Accounting Standards Measures and other Financial Measures" below.
About DATA Communications Management Corp.
DCM is a leading Canadian tech-enabled provider of print and digital solutions that help simplify complex marketing communications and operations workflow. DCM serves over 2,500 clients including 70 of the 100 largest Canadian corporations and leading government agencies. Our core strength lies in delivering individualized services to our 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, our goal is to make complex tasks surprisingly simple, allowing our clients to focus on what they do best.
Additional information relating to DCM is available on www.datacm.com, and in the disclosure documents filed by DCM on SEDAR+ at www.sedarplus.ca.
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. They should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such 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. We caution readers of this press release not to place undue reliance on our forward-looking statements since a number of factors could cause actual future results, conditions, actions, or events to differ materially from the targets, expectations, estimates, or intentions expressed in these forward-looking statements.
The principal factors, assumptions and risks that DCM made or took into account in the preparation of these forward-looking statements and which could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements are described in further detail in our most recent annual and interim Management Discussion and Analysis filed ("MD&A") on SEDAR+, and include but are not limited to the following: industry conditions are influenced by numerous factors over which the Company has no control, including: declines in print consumption; the impact of tariffs and responses thereto (including by governments, trade partners and customers), which may include, without limitation, retaliatory tariffs, export taxes, restrictions on exports to the U.S. or other measures, and the effect of governmental regulations and policies in general; our ability to achieve and meet our revenue, profitability, free cash flow and debt reduction targets for 2025 and in the future; while we have received consents from our lenders for the declaration and payment of the special dividend and regular recurring dividend, including the exclusion of the special dividend from our fixed charge coverage ratios, our financial leverage may increase, and there is no guarantee that we will pay such dividends in the future; and, our ability to comply with our financial and other covenants under our credit facilities, which may preclude us from paying future dividends if our outlook and future financial liquidity changes.
Additional factors are discussed elsewhere in this press release and under the headings "Liquidity and capital resources" and "Risks and Uncertainties" in DCM's Management Discussion and Analysis and in DCM's other publicly available disclosure documents, as filed by DCM on SEDAR+.
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 press release 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, whether as a result of new information, future events or results or other factors.
NON-IFRS ACCOUNTING STANDARDS MEASURES AND OTHER FINANCIAL MEASURES
This press release includes certain non-IFRS Accounting Standards measures, ratios, and other financial measures as supplementary information. This supplementary information does not represent earnings measures recognized by IFRS Accounting Standards and does not have any standardized meanings prescribed by IFRS Accounting Standards. Therefore, these non-IFRS Accounting Standards measures, ratios and other financial measures are unlikely to be comparable to similar measures presented by other issuers. Investors are cautioned that this supplementary information should not be construed as alternatives to net income (loss) determined in accordance with IFRS Accounting Standards as an indicator of DCM's performance.
Free cash flow is a non-IFRS Accounting Standards financial measure we use to monitor the availability of discretionary cash as part of our capital management. It is defined as total cash generated from operating activities, less net capital expenditures (comprised of purchase of property, plant and equipment (including transfers from noncurrent assets), less proceeds on disposal of property, plant and equipment, other than proceeds on sale and leaseback of properties), less lease principal payments. A reconciliation of free cash flow to its most comparable IFRS Accounting Standards measure, total cash generated from operating activities, is included in "Additional Reconciliations of Non-IFRS Accounting Standards Financial Measures" in our most recent interim MD&A filed on SEDAR+.
Definitions of other such supplementary information, together with a reconciliation of net income (loss) to such supplementary financial measures, can be found in our most recent annual and interim MD&A and filed on SEDAR+ at www.sedarplus.ca.
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Contacts
Mr. Richard KellamPresident and Chief Executive OfficerDATA Communications Management Corp.Tel: [phone]
Mr. James E. LorimerChief Financial OfficerDATA Communications Management Corp.Tel: (905) [e-mail]