FULL YEAR 2024 HIGHLIGHTS COMPARED TO 2023
- Revenues of $480.0 million in 2024 were up 7.2%, or $32.2 million vs. $447.7 million in 2023
- Gross profit of $130.1 million increased by 9.4% or $11.2 million vs. $118.9 million
- Gross profit as a percentage of revenues of 27.1%, up 50 basis points compared to 26.6%
- Adjusted EBITDA1 of $63.9 million, up 19.7% or $10.5 million vs. $53.4 million
- Adjusted EBITDA as a percentage of revenues of 13.3%, vs. 11.9%
- Achieved targeted $30 - $35 million in annualized synergies exiting 2024
Data Communications Management Corp. Reports 2024 Financial Results
For further information, contact
Mr. Richard Kellam
President and Chief Executive Officer
DATA Communications Management Corp.
Tel: (905) 791-3151
Mr. James E. Lorimer
Chief Financial Officer
DATA Communications Management Corp.
Tel: (905) 791-3151
ir@datacm.com
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 reported fourth quarter and fiscal year 2024 financial results.
MANAGEMENT COMMENTARY
“2024 was a pivotal year for DCM highlighted by the successful completion of the complex integration of the Moore Canada Corporation (“MCC”) acquisition which we accomplished on budget and nearly a full year ahead of our original schedule,” said Richard Kellam, President & CEO of DCM. “We are now well-positioned to leverage our larger scale, incremental capacity, expanded product mix and the skills and capabilities of our team to drive profitable growth, return to pre-acquisition levels of +30% gross profit margins, and deliver strong free cash flow1 going forward.”
“With the actions we took during 2024 to complete the integration of the MCC business into DCM, we were pleased to be able to recently announce a special dividend to shareholders and the commencement of a regular quarterly dividend program reflecting our confidence in DCM’s growth potential and our commitment to enhancing shareholder returns,” Kellam added.
“While we are pleased with our start to 2025, we continue to carefully monitor economic conditions and the geopolitical environment for developments that could impact our results. These include the recent introduction of cross-border tariffs, raw material cost increases and any softening of demand in our end markets. We are actively pursuing opportunities to mitigate against these risks, including initiatives to diversify our supply chain.”
FOURTH QUARTER 2024 RESULTS COMPARED TO 2023
- Revenues of $116.2 million were down 10.6%, or $13.7 million vs. $130.0 million
- Gross profit of $30.4 million, decreased 7.2%, or $2.3 million vs. $32.8 million
- Gross profit as a percentage of revenue of 26.2%, up 100 basis points compared to 25.2%
- Adjusted EBITDA was $15.8 million, up 5.2%, or $0.8 million vs. $15.0 million
- Adjusted EBITDA represented 13.6% of revenues compared to 11.6%
- Total Net Debt1 at quarter end of $78.9 million, down 8.1%, or $6.9 million vs. $85.8 million
OTHER BUSINESS HIGHLIGHTS
Special Dividend and Recurring Dividend Program
On February 20, 2025, DCM announced that its board of directors had declared an initial special cash dividend of $0.20 per share, payable on March 25, 2025 to shareholders of record on March 12, 2025. The Company also announced that its board had approved the commencement of a recurring, quarterly dividend program, with 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 dividend program is made possible by the Company’s significantly improved financial leverage subsequent to completing the acquisition of MCC and higher levels of free cash flow expected to be generated in 2025 and in the future.
Operational Initiatives Completed in 2024
DCM’s Fergus, Ontario facility ceased production activities in October 2024 and its Trenton, Ontario facility ceased production in November 2024, and their operations have been successfully consolidated into the Company’s Drummondville, Quebec and Brampton, Ontario facilities, respectively. These plant closures follow the previous closure of the Company’s Edmonton, Alberta facility in November 2023 and the consolidation of the Company’s two Toronto, Ontario commercial print facilities into its Bond Avenue facility in June 2024. The Company’s lease obligations at its Fergus and Trenton facilities ended December 31, 2024, and January 15, 2025, respectively, completing the Company's planned facility consolidations following the MCC acquisition.
The Company also completed the migration of clients from MCC legacy applications, including customer-facing technology applications, to the Company’s DCM FLEX platform, and internal billing and invoicing systems to its ERP platform.
Organizational Initiatives
Operational and other organizational initiatives have resulted in a net reduction in total headcount of 435 associates, from approximately 1,860 at the time of closing the MCC acquisition to approximately 1,425 at the end of 2024. This reduction is net of several new hires across the organization as the Company strategically added talent to the team. The Company has now completed substantially all its planned organizational changes following the MCC acquisition.
Capital Investments
The Company completed its planned accelerated investment in new state-of-the-art capital equipment in 2024 in support of its growth objectives. In aggregate, the Company invested more than $21 million in new capital equipment and now expects that capital expenditures in 2025 and going forward will return to more normalized levels.
This new capital equipment and its enhanced capabilities are already providing opportunities in new markets and applications targeted for growth, including paperboard packaging, prime and shrink wrap labels, high-volume personalized direct mail, and customer communications management applications, a new business for DCM as a result of the MCC acquisition.
AI-enabled Technology Investment
The Company also expanded its suite of marketing technology solutions, including the launch of its AI-enabled digital asset management SaaS offering, ASMBL in the summer of 2024, and the acquisition in November 2024 of its AI-enabled social media analytics SaaS offering, Zavy. These applications provide opportunities to provide additional value-added services to our existing client base, and to target new clients outside our typical client profile both in North America and globally with innovative marketing-technology applications.
2025 PRIORITIES
DCM has established the following strategic priorities for 2025.
- 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 positioning us to drive operating efficiencies.
- Continue to drive gross margin improvement through top line revenue growth, operating efficiencies, and strategic revenue management initiatives.
- Demonstrate agility and adaptability to effectively navigate an uncertain economic and geopolitical environment.
LONG TERM OBJECTIVES
The Company reaffirms its long-term growth 5-year objective of +5% revenue CAGR, gross profit as a percentage of revenues in excess of 30% and Adjusted EBITDA margin in excess of 14% on an annual basis. The Company also maintains its long-term net debt to adjusted EBITDA objective of less than 1.0x.
Q4 AND FISCAL 2024 EARNINGS CALL DETAILS
The Company will host a conference call and webcast on Thursday, March 13, 2025 at 9:00 a.m. EST.
Mr. Kellam and James Lorimer, CFO, will present the fourth quarter and fiscal 2024 results followed by a live Q&A.
Register for the webcast prior to the start of the event: Microsoft Virtual Events Powered by Teams
All attendees must register for the webinar prior to the call. Please complete the phone field in the form at the above link (prior to the start of the event) if you wish to dial in.
The Company’s full results will be posted on its Investor Relations page and on SEDAR+. A video message from Mr. Kellam will also be posted on the Company’s website.
Footnotes:
1 Adjusted EBITDA, Adjusted EBITDA as a percentage of revenues, Adjusted net income (loss), Adjusted net income (loss) as percentage of revenues, Net Debt to Adjusted EBITDA and Free cash flow are non-IFRS Accounting Standards measures. For a description of the composition of these and other non-IFRS Accounting Standards measures used in this press release, and a reconciliation to their most comparable IFRS Accounting Standards measure, where applicable, see the information under the heading “Non-IFRS Accounting Standards Measures”, the information set forth on Table 2 and Table 3 herein, and our most recent Management Discussion & Analysis filed on SEDAR+.
TABLE 1 |
The following table sets out selected historical consolidated financial information for the periods noted. |
For the periods ended December 31, 2024 and 2023 |
October 1 to
|
|
October 1 to
|
|
January 1 to
|
|
January 1 to
|
||||||||
(in thousands of Canadian dollars, except share and per share amounts, unaudited) |
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Revenues |
$ |
116,225 |
|
|
$ |
129,964 |
|
|
$ |
479,956 |
|
|
$ |
447,725 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit |
|
30,413 |
|
|
|
32,760 |
|
|
|
130,067 |
|
|
|
118,911 |
|
|
|
|
|
|
|
|
|
||||||||
Gross profit, as a percentage of revenues |
|
26.2 |
% |
|
|
25.2 |
% |
|
|
27.1 |
% |
|
|
26.6 |
% |
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative and research and development expenses |
|
20,732 |
|
|
|
25,300 |
|
|
|
92,408 |
|
|
|
87,244 |
|
As a percentage of revenues |
|
17.8 |
% |
|
|
19.5 |
% |
|
|
19.3 |
% |
|
|
19.5 |
% |
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
|
15,788 |
|
|
|
15,012 |
|
|
|
63,908 |
|
|
|
53,390 |
|
As a percentage of revenues |
|
13.6 |
% |
|
|
11.6 |
% |
|
|
13.3 |
% |
|
|
11.9 |
% |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) for the period |
|
699 |
|
|
|
(6,358 |
) |
|
|
3,570 |
|
|
|
(15,854 |
) |
|
|
|
|
|
|
|
|
||||||||
Adjusted net income |
|
2,574 |
|
|
|
1,362 |
|
|
|
11,325 |
|
|
|
12,827 |
|
As a percentage of revenues |
|
2.2 |
% |
|
|
1.0 |
% |
|
|
2.4 |
% |
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share |
$ |
0.01 |
|
|
$ |
(0.12 |
) |
|
$ |
0.06 |
|
|
$ |
(0.31 |
) |
Diluted earnings (loss) per share |
$ |
0.01 |
|
|
$ |
(0.12 |
) |
|
$ |
0.06 |
|
|
$ |
(0.31 |
) |
Adjusted net income per share, basic |
$ |
0.05 |
|
|
$ |
0.02 |
|
|
$ |
0.21 |
|
|
$ |
0.25 |
|
Adjusted net income per share, diluted |
$ |
0.04 |
|
|
$ |
0.02 |
|
|
$ |
0.20 |
|
|
$ |
0.25 |
|
Weighted average number of common shares outstanding, basic |
|
55,308,952 |
|
|
|
55,022,883 |
|
|
|
55,222,122 |
|
|
|
50,832,543 |
|
Weighted average number of common shares outstanding, diluted |
|
57,481,819 |
|
|
|
55,022,883 |
|
|
|
57,731,674 |
|
|
|
50,832,543 |
|
TABLE 2 |
The following table provides reconciliations of net income to EBITDA and of net income to Adjusted EBITDA for the periods noted. |
EBITDA and Adjusted EBITDA reconciliation |
|||||||||||||
For the periods ended December 31, 2024 and 2023 |
|
October 1 to
|
October 1 to
|
January 1 to
|
January 1 to
|
||||||||
(in thousands of Canadian dollars, unaudited) |
|
||||||||||||
Net income (loss) for the period |
|
$ |
699 |
|
$ |
(6,358 |
) |
$ |
3,570 |
|
$ |
(15,854 |
) |
|
|
|
|
|
|
||||||||
Interest expense, net |
|
|
5,291 |
|
|
5,667 |
|
|
21,483 |
|
|
15,321 |
|
Amortization of transaction costs |
|
|
140 |
|
|
137 |
|
|
560 |
|
|
457 |
|
Current income tax expense |
|
|
333 |
|
|
367 |
|
|
2,338 |
|
|
1,209 |
|
Deferred income tax expense (recovery) |
|
|
710 |
|
|
(2,671 |
) |
|
(664 |
) |
|
(7,799 |
) |
Depreciation of property, plant and equipment |
|
|
1,062 |
|
|
2,058 |
|
|
6,200 |
|
|
6,165 |
|
Amortization of intangible assets |
|
|
495 |
|
|
829 |
|
|
2,011 |
|
|
2,881 |
|
Depreciation of the ROU Asset |
|
|
4,550 |
|
|
4,665 |
|
|
18,038 |
|
|
12,677 |
|
EBITDA |
|
$ |
13,280 |
|
$ |
4,694 |
|
$ |
53,536 |
|
$ |
15,057 |
|
Acquisition and integration costs |
|
|
6,170 |
|
|
704 |
|
|
8,773 |
|
|
10,903 |
|
Restructuring expenses |
|
|
1,032 |
|
|
10,570 |
|
|
4,378 |
|
|
20,308 |
|
Net fair value (gains) losses on financial liabilities at fair value through profit or loss |
|
|
(2,194 |
) |
|
(956 |
) |
|
(279 |
) |
|
7,122 |
|
Other gains |
|
|
(2,500 |
) |
|
— |
|
|
(2,500 |
) |
|
— |
|
Adjusted EBITDA |
|
$ |
15,788 |
|
$ |
15,012 |
|
$ |
63,908 |
|
$ |
53,390 |
|
TABLE 3 |
The following table provides reconciliations of net income (loss) to Adjusted net income and a presentation of Adjusted net income per share for the periods noted. |
Adjusted net income reconciliation |
|||||||||||||
For the periods ended December 31, 2024 and 2023 |
|
October 1 to
|
October 1 to
|
January 1 to
|
January 1 to
|
||||||||
(in thousands of Canadian dollars, except share and per share amounts, unaudited) |
|||||||||||||
|
|
|
|
|
|
||||||||
Net income (loss) for the period |
|
$ |
699 |
|
$ |
(6,358 |
) |
$ |
3,570 |
|
$ |
(15,854 |
) |
|
|
|
|
|
|
||||||||
Acquisition and integration costs |
|
|
6,170 |
|
|
704 |
|
|
8,773 |
|
|
10,903 |
|
Restructuring expenses |
|
|
1,032 |
|
|
10,570 |
|
|
4,378 |
|
|
20,308 |
|
Net fair value (gains) losses on financial liabilities at fair value through profit or loss |
|
|
(2,194 |
) |
|
(956 |
) |
|
(279 |
) |
|
7,122 |
|
Other gains |
|
|
(2,500 |
) |
|
— |
|
|
(2,500 |
) |
|
— |
|
Tax effect of the above adjustments |
|
|
(633 |
) |
|
(2,598 |
) |
|
(2,617 |
) |
|
(9,652 |
) |
Adjusted net income |
|
$ |
2,574 |
|
$ |
1,362 |
|
$ |
11,325 |
|
$ |
12,827 |
|
|
|
|
|
|
|
||||||||
Adjusted net income per share, basic |
|
$ |
0.05 |
|
$ |
0.02 |
|
$ |
0.21 |
|
$ |
0.25 |
|
Adjusted net income per share, diluted |
|
$ |
0.04 |
|
$ |
0.02 |
|
$ |
0.20 |
|
$ |
0.25 |
|
Weighted average number of common shares outstanding, basic |
|
|
55,308,952 |
|
|
55,022,883 |
|
|
55,222,122 |
|
|
50,832,543 |
|
Weighted average number of common shares outstanding, diluted |
|
|
57,481,819 |
|
|
55,022,883 |
|
|
57,731,674 |
|
|
50,832,543 |
|
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 DATA Communications Management Corp. is available on www.datacm.com, and in the disclosure documents filed by DATA Communications Management Corp. 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 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; labour disruptions at suppliers and customers, including Canada Post; 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.
NON-IFRS ACCOUNTING STANDARDS MEASURES
NON-IFRS ACCOUNTING STANDARDS 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. Definitions of 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 Management Discussion and Analysis and filed on SEDAR+ at www.sedarplus.ca.
Consolidated statements of financial position |
|
|
|||||
(in thousands of Canadian dollars, unaudited) |
December 31, 2024 |
|
December 31, 2023 |
||||
|
$ |
|
$ |
||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
6,773 |
|
|
$ |
17,652 |
|
Trade receivables |
|
103,445 |
|
|
|
117,956 |
|
Inventories |
|
23,843 |
|
|
|
28,840 |
|
Prepaid expenses and other current assets |
|
5,989 |
|
|
|
5,313 |
|
Income taxes receivable |
|
3,432 |
|
|
|
2,640 |
|
Assets held for sale |
|
— |
|
|
|
8,650 |
|
|
|
143,482 |
|
|
|
181,051 |
|
Non-current assets |
|
|
|
||||
Other non-current assets |
|
9,104 |
|
|
|
2,900 |
|
Deferred income tax assets |
|
8,224 |
|
|
|
9,801 |
|
Property, plant and equipment |
|
34,812 |
|
|
|
30,358 |
|
Right-of-use assets |
|
162,510 |
|
|
|
159,801 |
|
Pension assets |
|
3,142 |
|
|
|
1,962 |
|
Intangible assets |
|
8,282 |
|
|
|
10,616 |
|
Goodwill |
|
22,747 |
|
|
|
22,265 |
|
|
$ |
392,303 |
|
|
$ |
418,754 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Current liabilities |
|
|
|
||||
Bank overdraft |
|
880 |
|
|
|
1,564 |
|
Trade payables and accrued liabilities |
$ |
59,890 |
|
|
$ |
75,766 |
|
Current portion of credit facilities |
|
15,175 |
|
|
|
6,333 |
|
Current portion of lease liabilities |
|
10,525 |
|
|
|
10,322 |
|
Provisions |
|
8,016 |
|
|
|
16,325 |
|
Deferred revenue |
|
6,199 |
|
|
|
6,221 |
|
|
|
100,685 |
|
|
|
116,531 |
|
Non-current liabilities |
|
|
|
||||
Provisions |
|
1,279 |
|
|
|
1,004 |
|
Credit facilities |
|
68,515 |
|
|
|
93,918 |
|
Lease liabilities |
|
158,603 |
|
|
|
144,993 |
|
Deferred income tax liabilities |
|
60 |
|
|
|
— |
|
Pension obligations |
|
18,354 |
|
|
|
26,386 |
|
Other post-employment benefit plans |
|
1,409 |
|
|
|
3,606 |
|
Asset retirement obligation |
|
3,438 |
|
|
|
3,552 |
|
|
$ |
352,343 |
|
|
$ |
389,990 |
|
|
|
|
|
||||
Equity |
|
|
|
||||
Shareholders’ equity |
|
|
|
||||
Shares |
$ |
284,592 |
|
|
$ |
283,738 |
|
Warrants |
|
219 |
|
|
|
219 |
|
Contributed surplus |
|
3,078 |
|
|
|
3,135 |
|
Translation Reserve |
|
307 |
|
|
|
177 |
|
Deficit |
|
(248,236 |
) |
|
|
(258,505 |
) |
|
$ |
39,960 |
|
|
$ |
28,764 |
|
|
$ |
392,303 |
|
|
$ |
418,754 |
|
Consolidated statements of operations |
|
|
|||||
(in thousands of Canadian dollars, except per share amounts, unaudited) |
For the three months
|
|
For the three months
|
||||
|
$ |
|
$ |
||||
|
|
|
|
||||
|
|
|
|
||||
Revenues |
$ |
116,225 |
|
|
$ |
129,964 |
|
|
|
|
|
||||
Cost of revenues |
|
85,812 |
|
|
|
97,204 |
|
|
|
|
|
||||
Gross profit |
|
30,413 |
|
|
|
32,760 |
|
|
|
|
|
||||
Expenses |
|
|
|
||||
Selling, commissions and expenses |
|
9,140 |
|
|
|
11,014 |
|
General and administration expenses |
|
10,517 |
|
|
|
13,016 |
|
Research and development expenses |
|
1,075 |
|
|
|
1,270 |
|
Restructuring expenses |
|
1,032 |
|
|
|
10,570 |
|
Acquisition and integration costs |
|
6,170 |
|
|
|
704 |
|
Net fair value (gains) losses on financial liabilities at fair value through profit or loss |
|
(2,194 |
) |
|
|
(956 |
) |
Other gains |
|
(2,500 |
) |
|
|
— |
|
|
|
23,240 |
|
|
|
35,618 |
|
|
|
|
|
||||
Income (loss) before finance costs and income taxes |
|
7,173 |
|
|
|
(2,858 |
) |
|
|
|
|
||||
Finance costs |
|
|
|
||||
Interest expense on long term debt and pensions, net |
|
2,037 |
|
|
|
2,742 |
|
Interest expense on lease liabilities |
|
3,254 |
|
|
|
2,925 |
|
Amortization of transaction costs |
|
140 |
|
|
|
137 |
|
|
|
5,431 |
|
|
|
5,804 |
|
|
|
|
|
||||
Income (loss) before income taxes |
|
1,742 |
|
|
|
(8,662 |
) |
|
|
|
|
||||
Income tax expense (recovery) |
|
|
|
||||
Current |
|
333 |
|
|
|
367 |
|
Deferred |
|
710 |
|
|
|
(2,671 |
) |
|
|
1,043 |
|
|
|
(2,304 |
) |
|
|
|
|
||||
Net Income (loss) for the period |
$ |
699 |
|
|
$ |
(6,358 |
) |
Consolidated statements of operations |
|
|
|||||
(in thousands of Canadian dollars, except per share amounts, unaudited) |
For the year ended
|
|
For the year ended
|
||||
|
$ |
|
$ |
||||
|
|
|
|
||||
|
|
|
|
||||
Revenues |
$ |
479,956 |
|
|
$ |
447,725 |
|
|
|
|
|
||||
Cost of revenues |
|
349,889 |
|
|
|
328,814 |
|
|
|
|
|
||||
Gross profit |
|
130,067 |
|
|
|
118,911 |
|
|
|
|
|
||||
Expenses |
|
|
|
||||
Selling, commissions and expenses |
|
40,112 |
|
|
|
39,195 |
|
General and administration expenses |
|
47,467 |
|
|
|
44,245 |
|
Research and development expenses |
|
4,829 |
|
|
|
3,804 |
|
Restructuring expenses |
|
4,378 |
|
|
|
20,308 |
|
Acquisition and integration costs |
|
8,773 |
|
|
|
10,903 |
|
Net fair value (gains) losses on financial liabilities at fair value through profit or loss |
|
(279 |
) |
|
|
7,122 |
|
Other gains |
|
(2,500 |
) |
|
|
— |
|
|
|
102,780 |
|
|
|
125,577 |
|
|
|
|
|
||||
Income (loss) before finance costs and income taxes |
|
27,287 |
|
|
|
(6,666 |
) |
|
|
|
|||||
Finance costs |
|
|
|
||||
Interest expense on long term debt and pensions, net |
|
8,950 |
|
|
|
8,315 |
|
Interest expense on lease liabilities |
|
12,533 |
|
|
|
7,006 |
|
Amortization of transaction costs net of debt extinguishment gain |
|
560 |
|
|
|
457 |
|
|
|
22,043 |
|
|
|
15,778 |
|
|
|
|
|
||||
Income (loss) before income taxes |
|
5,244 |
|
|
|
(22,444 |
) |
|
|
|
|
||||
Income tax expense (recovery) |
|
|
|
||||
Current |
|
2,338 |
|
|
|
1,209 |
|
Deferred |
|
(664 |
) |
|
|
(7,799 |
) |
|
|
1,674 |
|
|
|
(6,590 |
) |
|
|
|
|
||||
Net income (loss) for the period |
$ |
3,570 |
|
|
$ |
(15,854 |
) |
|
|
|
|
||||
Other comprehensive income: |
|
|
|
||||
Items that may be reclassified subsequently to net income |
|
|
|
||||
Foreign currency translation |
|
130 |
|
|
|
(30 |
) |
|
|
130 |
|
|
|
(30 |
) |
Items that will not be reclassified to net income |
|
|
|
||||
Re-measurements of pension and other post-employment benefit obligations |
|
8,983 |
|
|
|
(6,525 |
) |
Taxes related to pension and other post-employment benefit adjustment above |
|
(2,284 |
) |
|
|
1,712 |
|
|
|
6,699 |
|
|
|
(4,813 |
) |
|
|
|
|
||||
Other comprehensive income (loss) for the period, net of tax |
$ |
6,829 |
|
|
$ |
(4,843 |
) |
|
|
|
|
||||
Comprehensive income (loss) for the period |
$ |
10,399 |
|
|
$ |
(20,697 |
) |
|
|
|
|
||||
Basic earnings (loss) per share |
$ |
0.06 |
|
|
$ |
(0.31 |
) |
|
|
|
|
||||
Diluted earnings (loss) per share |
$ |
0.06 |
|
|
$ |
(0.31 |
) |
Consolidated statements of cash flows |
|
||||||
(in thousands of Canadian dollars, unaudited) |
For the year ended
|
|
For the year ended
|
||||
|
$ |
|
$ |
||||
|
|
|
|
||||
Cash provided by (used in) |
|
|
|
||||
|
|
|
|
||||
Operating activities |
|
|
|
||||
Net income (loss) for the year |
$ |
3,570 |
|
|
$ |
(15,854 |
) |
Items not affecting cash |
|
|
|
||||
Depreciation of property, plant and equipment |
|
6,200 |
|
|
|
6,165 |
|
Amortization of intangible assets |
|
2,011 |
|
|
|
2,881 |
|
Depreciation of right-of-use-assets |
|
18,038 |
|
|
|
12,677 |
|
Share-based compensation expense |
|
460 |
|
|
|
675 |
|
Net fair value (gains) losses on financial liabilities at fair value through profit or loss |
|
(279 |
) |
|
|
7,122 |
|
Pension expense |
|
1,040 |
|
|
|
1,245 |
|
(Gain) loss on disposal of property, plant and equipment |
|
911 |
|
|
|
487 |
|
Loss on disposal of sale and leaseback |
|
(11 |
) |
|
|
— |
|
Provisions |
|
4,378 |
|
|
|
20,308 |
|
Amortization of transaction costs, net of debt extinguishment gain |
|
560 |
|
|
|
457 |
|
Accretion of asset retirement obligation, net of reversals |
|
(114 |
) |
|
|
24 |
|
Other post-employment benefit plans expense |
|
(1,904 |
) |
|
|
515 |
|
Right-of-use assets impairment |
|
445 |
|
|
|
464 |
|
Intangible assets impairment |
|
1,072 |
|
|
|
— |
|
Income tax expense (recovery) |
|
1,674 |
|
|
|
(6,590 |
) |
Changes in non cash working capital |
|
3,721 |
|
|
|
5,863 |
|
Employee incentive bonus accruals |
|
(108 |
) |
|
|
— |
|
Contributions made to pension plans |
|
(1,281 |
) |
|
|
(1,124 |
) |
Contributions made to other post-employment benefit plans |
|
(281 |
) |
|
|
(471 |
) |
Provisions paid |
|
(12,002 |
) |
|
|
(4,975 |
) |
Income taxes paid |
|
(3,360 |
) |
|
|
(4,072 |
) |
Total cash generated from operating activities |
|
24,740 |
|
|
|
25,797 |
|
|
|
|
|
||||
Investing activities |
|
|
|
||||
Acquisition of Zavy, net of cash acquired |
|
(363 |
) |
|
|
— |
|
Acquisition of MCC, net of cash acquired |
|
— |
|
|
|
(130,953 |
) |
Purchase of property, plant and equipment |
|
(12,307 |
) |
|
|
(4,222 |
) |
Proceeds on sale and leaseback transactions |
|
11,536 |
|
|
|
29,533 |
|
Purchase of intangible assets |
|
(360 |
) |
|
|
(127 |
) |
Proceeds on disposal of property, plant and equipment |
|
845 |
|
|
|
1,282 |
|
Purchase of non-current assets |
|
(9,426 |
) |
|
|
— |
|
Total cash used in investing activities |
|
(10,075 |
) |
|
|
(104,487 |
) |
|
|
|
|
||||
Financing activities |
|
|
|
||||
Issuance of common shares and warrants, net |
|
— |
|
|
|
24,221 |
|
Proceeds from credit facilities |
|
50,962 |
|
|
|
162,140 |
|
Repayment of credit facilities |
|
(68,083 |
) |
|
|
(87,592 |
) |
Repayment of Zavy loans |
|
(314 |
) |
|
|
— |
|
Proceeds from exercise of warrants |
|
— |
|
|
|
489 |
|
Increase in bank overdrafts |
|
(684 |
) |
|
|
282 |
|
Proceeds from exercise of options |
|
337 |
|
|
|
751 |
|
Transaction costs |
|
— |
|
|
|
(1,801 |
) |
Principal portion of lease payments |
|
(7,812 |
) |
|
|
(6,315 |
) |
Total cash (used in) provided by financing activities |
|
(25,594 |
) |
|
|
92,175 |
|
|
|
|
|
||||
Change in cash and cash equivalents during the year |
|
(10,929 |
) |
|
|
13,485 |
|
Cash and cash equivalents – beginning of year |
$ |
17,652 |
|
|
$ |
4,208 |
|
Effects of foreign exchange on cash balances |
|
50 |
|
|
|
(41 |
) |
Cash and cash equivalents – end of year |
$ |
6,773 |
|
|
$ |
17,652 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250312353056/en/
