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HIGHLIGHTS

RECENT EVENTS

  • Progress on ERP transition across our core DCM business
  • Increases in available credit on revolving credit facility
  • Shareholder conference call scheduled for November 18, at 11:00 a.m. Eastern time

THIRD QUARTER 2019

  • Revenues of $63.2 million compared with $74.9 million in the prior year
  • Gross margin as a percentage of revenue decreased to 24.1% from 24.4% in the prior year comparative period
  • Adjusted EBITDA of $2.2 million, compared to $5.2 million in the prior year (See Table 6 and Table 7 and “Non-IFRS Measures” below). Excluding the effects of adopting IFRS 16 Leases (“IFRS 16”), Adjusted EBITDA was $(0.6) million
  • Net loss of $5.9 million, including restructuring expenses of $2.7 million compared to net income of $0.8 million, including one-time business reorganization costs of $0.2 million in the prior comparative period
  • Adjusted net loss of $3.9 million, compared to Adjusted net income of $1.0 million in the prior comparative period (See Table 8 and Table 9 and “Non-IFRS Measures” below). Excluding the effects of adopting IFRS 16, Adjusted net loss was $3.4 million

BRAMPTON, Ontario–(BUSINESS WIRE)–DATA Communications Management Corp. (TSX: DCM) (“DCM” or the “Company”), a leading provider of marketing and business communication solutions to companies across North America, announces its consolidated financial results for the three and nine months ended September 30, 2019.

“While our third quarter results were poor, we have made steady progress in capturing the backlog of business which occurred when we launched ERP. Our September revenue numbers were in line with historical norms and we experienced a strong October. We believe our fourth quarter revenue will compare favorably to our 2018 fourth quarter record revenue,” said Gregory J. Cochrane, CEO. “Our lenders have been totally supportive and have provided us extra borrowing capacity to help us through the most challenging part of our ERP implementation, which is now behind us. In addition, our suppliers and customers have been patient and supportive. Our objective for 2020 is to return to the path as we set out at the beginning of this year and to become a leading marketing and business services leader to our clients throughout North America.”

PROGRESS ON ERP TRANSITION

As a result of the significant disruption in DCM’s business caused by the implementation of a new ERP system since June 3, 2019, the Company’s liquidity has been constrained by delays in production, shipments and billings to its customers. Significant progress has been made throughout the third quarter to remediate many system issues pivotal to the proper functionality of the system, however clean up and remediation efforts are ongoing. Production and shipping volumes have begun to return to normal levels commensurate with activity prior to the implementation of the new ERP system, however DCM continues to experience challenges with issuing accurate billings to its customers which in turn has increased its accounts receivable by nearly double its normal levels (for the DCM core business that transitioned to the new ERP system). DCM has leveraged its Bank Credit Facility (as defined below) during the third quarter, in addition to obtaining additional financing from Crown (as defined below), to enable it to continue to meet its commitments to its valued suppliers until billings and collections issues are resolved with its customers. Management continues to work with its lenders, while exploring other financing alternatives to provide additional liquidity to the business while it continues to address its ERP issues, stabilize and position itself for growth going forward (see “Liquidity”).

INCREASED PROCEEDS UNDER THE CROWN CREDIT FACILITY

On August 16, 2019, DCM entered into a third amendment to its non-revolving term loan facility with Crown Capital Partner Funding, LP (the “Crown Facility”), a fund managed by Crown Capital LP Partner Funding Inc. (“Crown”), whereby Crown advanced a second non-revolving term loan in the principal amount of $7 million, for total advances in the principal amount of $19 million on this facility. The terms are consistent with the provisions of the original Crown Facility agreement that DCM established on May 8, 2018. In addition, a total of 550,000 warrants have been issued to Crown in connection with this amendment. Each warrant entitles the holder to acquire one DCM common share at an exercise price of $1.08 for a period of 3.7 years, commencing on August 16, 2019.

INCREASE TO AVAILABLE CREDIT UNDER THE BANK CREDIT FACILITY

On July 31, 2019, DCM entered into a third amendment to increase the revolving commitment under its a revolving credit facility (the “Bank Credit Facility”) with a Canadian chartered bank (the “Bank”) from $35 million to $42 million for the period July 31 to December 31, 2019.

At the Company’s request, the Bank is also reviewing the potential to provide additional funding by way of an increase to the credit available under its Bank Credit Facility from $42 million to up to $50 million (“Proposed Bank Credit Facility”) to provide additional financial liquidity should the remediation of the short-term liquidity constraints arising from the ERP implementation take longer than anticipated.

In the interim, on November 14, 2019, a fourth amendment was made to the Bank Credit Facility to provide a short-term increase of available credit from $42.0 million to $45.0 million until December 31, 2019, or the date an agreement is reached under the Proposed Bank Credit Facility, should that come sooner.

RIGHTS OFFERING

Subject to receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange, we intend to pursue a rights offering under which eligible shareholders will receive rights to subscribe for common shares of the company. It is expected that our directors and senior officers will participate in the rights offering. Further details of the proposed rights offering will be set out in a rights offering circular filed with securities regulatory authorities. The net proceeds from the proposed offering, if completed, would be used to enhance the company’s liquidity in the near term.

While it is the Company’s intention to execute on its refinancing plan, obtain additional debt and equity financing and mitigate the working capital constraints caused by the implementation of the new ERP system before the end of the year, there can be no assurance that DCM will be successful in these efforts. Failure to obtain adequate financing and/or on satisfactory terms could have a material adverse effect on the Company’s results of operations and financial condition.

SHAREHOLDER CONFERENCE CALL

DCM will host a conference call to discuss its third quarter results on Monday November 18, 2019 at 11:00 a.m. Eastern time. Participants may listen to the call by dialing Toll-Free: (844) 868-9648 or: (647) 689-5136, followed by entering Conference ID#: 6096173. The operator will ask for participants’ registration information. A replay of the call will be available from 2:00 p.m. Eastern time November 18, 2019 until midnight Eastern time November 25, 2019 by calling: Toll-free: (800) 585-8367 or: (416) 621-4642, followed by Conference ID#: 6096173.

RESULTS OF OPERATIONS

All financial information in this press release is presented in Canadian dollars and in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”).

TABLE 1 The following table sets out selected historical consolidated financial information for the periods noted.

For the periods ended September 30, 2019 and 2018

January 1 to September 30, 2019

 

January 1 to September 30, 2018

(in thousands of Canadian dollars, except share and per share amounts, unaudited)

 

Proforma without IFRS 16 adjustment

 

IFRS 16 adjustments

 

As reported

 

As reported

Revenues

$

211,387

 

 

$

 

 

$

211,387

 

 

$

241,617

 

Cost of revenues

160,965

 

 

(1,314

)

 

159,651

 

 

183,292

 

Gross profit

50,422

 

 

1,314

 

 

51,736

 

 

58,325

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

50,684

 

 

(188

)

 

50,496

 

 

50,969

 

Restructuring expenses

7,595

 

 

 

 

7,595

 

 

809

 

Acquisition costs

 

 

 

 

 

 

319

 

 

58,279

 

 

(188

)

 

58,091

 

 

52,097

 

(Loss) income before finance costs and income taxes

(7,857

)

 

1,502

 

 

(6,355

)

 

6,228

 

 

 

 

 

 

 

 

 

Finance costs

 

 

 

 

 

 

 

Interest expense, net

3,748

 

 

2,719

 

 

6,467

 

 

3,664

 

Amortization of transaction costs

400

 

 

 

 

400

 

 

469

 

 

4,148

 

 

2,719

 

 

6,867

 

 

4,133

 

(Loss) income before income taxes

(12,005

)

 

(1,217

)

 

(13,222

)

 

2,095

 

 

 

 

 

 

 

 

 

Income tax (recovery) expense

 

 

 

 

 

 

 

Current

(79

)

 

 

 

(79

)

 

985

 

Deferred

(3,149

)

 

 

 

(3,149

)

 

(297

)

 

(3,228

)

 

 

 

(3,228

)

 

688

 

Net (loss) income for the period

$

(8,777

)

 

$

(1,217

)

 

$

(9,994

)

 

$

1,407

 

 

 

 

 

 

 

 

 

Basic (loss) earnings per share

$

(0.41

)

 

$

(0.06

)

 

$

(0.46

)

 

$

0.07

 

Diluted (loss) earnings per share

$

(0.41

)

 

$

(0.06

)

 

$

(0.46

)

 

$

0.07

 

Weighted average number of common shares outstanding, basic

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

 

20,821,844

 

Weighted average number of common shares outstanding, diluted

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

 

20,931,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The adoption of IFRS 16 resulted in a lower net income by $1.2 million for the nine months ended September 30, 2019 versus on a pre IFRS 16 basis. Lease payments were previously expensed directly through the statement of operations as cost of sales or SG&A expenses for a total of $8.1 million. Under IFRS 16, (i) the $8.1 million lease payments are recognized as a reduction of lease liabilities which are presented as finance lease payments on the condensed interim consolidated statement of cash flow, (ii) a depreciation expense of the ROU Asset is recognized in cost of sales and SG&A for an aggregate amount of $6.6 million , and (iii) finance charges on the lease liability were recognized as interest expense of $2.7 million.

TABLE 2 The following table sets out selected historical consolidated financial information for the periods noted.

For the periods ended September 30, 2019 and 2018

July 1 to September 30, 2019

 

July 1 to September 30, 2018

(in thousands of Canadian dollars, except share and per share amounts, unaudited)

 

Proforma without IFRS 16 adjustment

 

IFRS 16 adjustments

 

As reported

 

As reported

Revenues

$

63,215

 

 

$

 

 

$

63,215

 

 

$

74,925

 

Cost of revenues

48,346

 

 

(384

)

 

47,962

 

 

56,664

 

Gross profit

14,869

 

 

384

 

 

15,253

 

 

18,261

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

17,863

 

 

(55

)

 

17,808

 

 

15,547

 

Restructuring expenses

2,724

 

 

 

 

2,724

 

 

9

 

Acquisition costs

 

 

 

 

 

 

6

 

 

20,587

 

 

(55

)

 

20,532

 

 

15,562

 

(Loss) income before finance costs and income taxes

(5,718

)

 

439

 

 

(5,279

)

 

2,699

 

 

 

 

 

 

 

 

 

Finance costs

 

 

 

 

 

 

 

Interest expense, net

1,344

 

 

916

 

 

2,260

 

 

1,256

 

Amortization of transaction costs

177

 

 

 

 

177

 

 

168

 

 

1,521

 

 

916

 

 

2,437

 

 

1,424

 

(Loss) Income before income taxes

(7,239

)

 

(477

)

 

(7,716

)

 

1,275

 

 

 

 

 

 

 

 

 

Income tax (recovery) expense

 

 

 

 

 

 

 

Current

395

 

 

 

 

395

 

 

430

 

Deferred

(2,194

)

 

 

 

(2,194

)

 

7

 

 

(1,799

)

 

 

 

(1,799

)

 

437

 

Net (loss) income for the period

$

(5,440

)

 

$

(477

)

 

$

(5,917

)

 

$

838

 

 

 

 

 

 

 

 

 

Basic (loss) earnings per share

$

(0.25

)

 

$

(0.02

)

 

$

(0.27

)

 

0.04

 

Diluted (loss) earnings per share

$

(0.25

)

 

$

(0.02

)

 

$

(0.27

)

 

0.04

 

Weighted average number of common shares outstanding, basic

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

Weighted average number of common shares outstanding, diluted

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

 

21,759,414

 

The adoption of IFRS 16 resulted in a lower net income by $0.5 million for the three months ended September 30, 2019 versus on a pre IFRS 16 basis. Lease payments were previously expensed directly through the statement of operations as cost of sales or SG&A expenses for a total of $2.8 million. Under IFRS 16, (i) the $2.8 million lease payments are recognized as a reduction of lease liabilities which are presented as finance lease payments on the condensed interim consolidated statement of cash flow, (ii) a depreciation expense of the ROU Asset is recognized in cost of sales and SG&A for an aggregate amount of $2.3 million for a net operating loss effect of $0.4 million, and (iii) finance charges on the lease liability were recognized as interest expense of $0.9 million.

TABLE 3 The following table sets out selected historical consolidated financial information for the periods noted.

As at September 30, 2019 and December 31, 2018

As at Sept. 30, 2019

 

As at December 31, 2018

(in thousands of Canadian dollars, unaudited)

 

Proforma without IFRS 16 adjustment

 

IFRS 16 adjustments

 

As reported

 

As reported

Current assets

$

101,029

 

 

$

(241

)

 

$

100,788

 

 

$

85,455

 

Current liabilities

66,825

 

 

7,933

 

 

74,758

 

 

64,716

 

 

 

 

 

 

 

 

 

Total assets

157,769

 

 

58,963

 

 

216,732

 

 

142,231

 

Total non-current liabilities

91,793

 

 

52,247

 

 

144,040

 

 

70,003

 

 

 

 

 

 

 

 

 

Shareholders’ equity

$

(849

)

 

$

(1,217

)

 

$

(2,066

)

 

$

7,512

 

Table 3 highlights the changes to the condensed interim consolidated statement of financial position as at September 30, 2019 as a result of the adoption of IFRS 16 as at January 1, 2019. The significant changes relate to the following:

  • DCM recognized a ROU Asset and a lease liability at the lease commencement date for substantially all of its leases which increased total assets and total liabilities (current and long-term portion);
  • The ROU Asset was adjusted for any lease payments made at or before the lease commencement date, less any lease incentives and onerous lease liabilities, which were previously classified within current assets and total liabilities (current and long-term portion), respectively; and
  • With respect to subleases where DCM is the lessor, DCM has reclassified the finance lease receivable from total liabilities to total assets, with the short-term portion allocated to current assets.

TABLE 4 The following table sets out selected historical consolidated financial information for the periods noted. See “Non-IFRS Measures” section above for more details.

For the periods ended September 30, 2019 and 2018

January 1 to September 30, 2019

 

January 1 to September 30, 2018

(in thousands of Canadian dollars, except percentage amounts, unaudited)

 

Proforma without IFRS 16 adjustment

 

IFRS 16 adjustments

 

As reported

 

As reported

Revenues

$

211,387

 

 

$

 

 

$

211,387

 

 

$

241,617

 

 

 

 

 

 

 

 

 

Gross profit

$

50,422

 

 

$

1,314

 

 

$

51,736

 

 

$

58,325

 

Gross profit, as a percentage of revenues

23.9

%

 

 

 

24.5

%

 

24.1

%

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

$

50,684

 

 

$

(188

)

 

$

50,496

 

 

$

50,969

 

As a percentage of revenues

24.0

%

 

 

 

23.9

%

 

21.1

%

 

 

 

 

 

 

 

 

Adjusted EBITDA (see Table 6)

$

6,397

 

 

$

8,065

 

 

$

14,462

 

 

$

15,680

 

As a percentage of revenues

3.0

%

 

 

 

6.8

%

 

6.5

%

 

 

 

 

 

 

 

 

Net (loss) income for the period

$

(8,777

)

 

$

(1,217

)

 

$

(9,994

)

 

$

1,407

 

 

 

 

 

 

 

 

 

Adjusted net (loss) income (see Table 8)

$

(2,515

)

 

$

(1,217

)

 

$

(3,732

)

 

$

3,304

 

As a percentage of revenues

-1.2

%

 

 

 

-1.8

%

 

1.4

%

TABLE 5 The following table sets out selected historical consolidated financial information for the periods noted. See “Non-IFRS Measures” section above for more details.

For the periods ended September 30, 2019 and 2018

July 1 to September 30, 2019

 

July 1 to September 30, 2018

(in thousands of Canadian dollars, except percentage amounts, unaudited)

 

Proforma without IFRS 16 adjustment

 

IFRS 16 adjustments

 

As reported

 

As reported

Revenues

$

63,215

 

 

$

 

 

$

63,215

 

 

$

74,925

 

 

 

 

 

 

 

 

 

Gross profit

$

14,869

 

 

$

384

 

 

$

15,253

 

 

$

18,261

 

Gross profit, as a percentage of revenues

23.5

%

 

 

 

24.1

%

 

24.4

%

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

$

17,863

 

 

$

(55

)

 

$

17,808

 

 

$

15,547

 

As a percentage of revenues

28.3

%

 

 

 

28.2

%

 

20.8

%

 

 

 

 

 

 

 

 

Adjusted EBITDA (see Table 7)

$

(601

)

 

$

2,768

 

 

$

2,167

 

 

$

5,242

 

As a percentage of revenues

-1.0

%

 

 

 

3.4

%

 

7.0

%

 

 

 

 

 

 

 

 

Net (loss) income for the period

$

(5,440

)

 

$

(477

)

 

$

(5,917

)

 

$

838

 

 

 

 

 

 

 

 

 

Adjusted net (loss) income (see Table 9)

$

(3,423

)

 

$

(477

)

 

$

(3,900

)

 

$

964

 

As a percentage of revenues

-5.4

%

 

 

 

-6.2

%

 

1.3

%

TABLE 6 The following table provides reconciliations of net (loss) income to EBITDA and of net loss to Adjusted EBITDA for the periods noted. See “Non-IFRS Measures” section above for more details.

EBITDA and Adjusted EBITDA reconciliation

For the periods ended September 30, 2019 and 2018

January 1 to September 30, 2019

 

January 1 to September 30, 2018

(in thousands of Canadian dollars, unaudited)

 

Proforma without IFRS 16 adjustment

 

IFRS 16 adjustments

 

As reported

 

As reported

Net (loss) income for the period (1)

$

(8,777

)

 

$

(1,217

)

 

$

(9,994

)

 

$

1,407

 

 

 

 

 

 

 

 

 

Interest expense, net (1)

3,748

 

 

2,719

 

 

6,467

 

 

3,664

 

Amortization of transaction costs

400

 

 

 

 

400

 

 

469

 

Current income tax (recovery) expense

(79

)

 

 

 

(79

)

 

985

 

Deferred income tax recovery

(3,149

)

 

 

 

(3,149

)

 

(297

)

Depreciation of property, plant and equipment

3,109

 

 

 

 

3,109

 

 

3,486

 

Amortization of intangible assets

2,672

 

 

 

 

2,672

 

 

3,514

 

Depreciation of the ROU Asset (1)

 

 

6,563

 

 

6,563

 

 

 

EBITDA

$

(2,076

)

 

$

8,065

 

 

$

5,989

 

 

$

13,228

 

 

 

 

 

 

 

 

 

Restructuring expenses

7,595

 

 

 

 

7,595

 

 

809

 

One-time business reorganization costs (2)

878

 

 

 

 

878

 

 

1,324

 

Acquisition costs

 

 

 

 

 

 

319

 

Adjusted EBITDA

$

6,397

 

 

$

8,065

 

 

$

14,462

 

 

$

15,680

 

  1. 2019 results include the impact of the adoption of new accounting standard IFRS 16. Refer to note 3 of the condensed interim consolidated financial statements for the three and nine months ended September 30, 2019 and related management’s discussion & analysis for further details of the impact of the adoption of new accounting standards.
  2. One-time business reorganization costs include non-recurring headcount reduction expenses for employees that did not qualify as restructuring costs. This also includes one-time expenses for the joint venture with Aphria Inc. (the “JV”) that was dissolved on July 12, 2019.

TABLE 7 The following table provides reconciliations of net (loss) income to EBITDA and of net (loss) income to Adjusted EBITDA for the periods noted. See “Non-IFRS Measures” section above for more details.

EBITDA and Adjusted EBITDA reconciliation

For the periods ended September 30, 2019 and 2018

July 1 to September 30, 2019

 

July 1 to September 30, 2018

(in thousands of Canadian dollars, unaudited)

 

Proforma without IFRS 16 adjustment

 

IFRS 16 adjustments

 

As reported

 

As reported

Net (loss) income for the period (1)

$

(5,440

)

 

$

(477

)

 

$

(5,917

)

 

$

838

 

 

 

 

 

 

 

 

 

Interest expense, net (1)

1,344

 

 

916

 

 

2,260

 

 

1,256

 

Amortization of transaction costs

177

 

 

 

 

177

 

 

168

 

Current income tax recovery

395

 

 

 

 

395

 

 

430

 

Deferred income tax recovery

(2,194

)

 

 

 

(2,194

)

 

7

 

Depreciation of property, plant and equipment

959

 

 

 

 

959

 

 

1,162

 

Amortization of intangible assets

1,428

 

 

 

 

1,428

 

 

1,213

 

Depreciation of the ROU Asset (1)

 

 

2,329

 

 

2,329

 

 

 

EBITDA

$

(3,331

)

 

$

2,768

 

 

$

(563

)

 

$

5,074

 

 

 

 

 

 

 

 

 

Restructuring expenses

2,724

 

 

2,724

 

9

One-time business reorganization costs (2)

6

 

 

6

 

153

Acquisition costs

 

 

 

6

Adjusted EBITDA

$

(601

)

 

$

2,768

 

 

$

2,167

 

 

$

5,242

 

 
  1. 2019 results include the impact of the adoption of new accounting standard IFRS 16. Refer to note 3 of the condensed interim consolidated financial statements for the three and nine months ended September 30, 2019 and related management’s discussion & analysis for further details of the impact of the adoption of new accounting standards.
  2. One-time business reorganization costs include non-recurring headcount reduction expenses for employees that did not qualify as restructuring costs.

TABLE 8 The following table provides reconciliations of net (loss) income to Adjusted net (loss) income and a presentation of Adjusted net income per share for the periods noted.  See “Non-IFRS Measures” section above for more details.

Adjusted net (loss) income reconciliation

For the periods ended September 30, 2019 and 2018

January 1 to September 30, 2019

 

January 1 to September 30, 2018

(in thousands of Canadian dollars, except share and per share amounts, unaudited)

 

Proforma without IFRS 16 adjustment

 

IFRS 16 adjustments

 

As reported

 

As reported

Net (loss) income for the period (1)

$

(8,777

)

 

$

(1,217

)

 

$

(9,994

)

 

$

1,407

 

 

 

 

 

 

 

 

 

Restructuring expenses

7,595

 

 

 

 

7,595

 

 

809

 

One-time business reorganization costs (2)

878

 

 

 

 

878

 

 

1,324

 

Acquisition costs

 

 

 

 

 

 

319

 

Tax effect of the above adjustments

(2,211

)

 

 

 

(2,211

)

 

(555

)

Adjusted net (loss) income

$

(2,515

)

 

$

(1,217

)

 

$

(3,732

)

 

$

3,304

 

 

 

 

 

 

 

 

 

Adjusted net (loss) income per share, basic and diluted

$

(0.12

)

 

$

(0.06

)

 

$

(0.17

)

 

$

0.16

 

Weighted average number of common shares outstanding, basic

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

20,821,844

 

Weighted average number of common shares outstanding, diluted

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

20,931,490

 

Number of common shares outstanding, basic

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

Number of common shares outstanding, diluted

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

20,821,844

 

  1. 2019 results include the impact of the adoption of new accounting standard IFRS 16. Refer to note 3 of the condensed interim consolidated financial statements for the three and nine months ended September 30, 2019 and related management’s discussion & analysis for further details of the impact of the adoption of new accounting standards.
  2. One-time business reorganization costs include non-recurring headcount reduction expenses for employees that did not qualify as restructuring costs. This also includes one-time expenses for the JV that was dissolved on July 12, 2019.

TABLE 9 The following table provides reconciliations of net (loss) income to Adjusted net (loss) income and a presentation of Adjusted net income per share for the periods noted.  See “Non-IFRS Measures” section above for more details.

Adjusted net (loss) income reconciliation

For the periods ended September 30, 2019 and 2018

July 1 to September 30, 2019

 

July 1 to September 30, 2018

(in thousands of Canadian dollars, except share and per share amounts, unaudited)

 

Proforma without IFRS 16 adjustment

 

IFRS 16 adjustments

 

As reported

 

As reported

Net (loss) income for the period (1)

$

(5,440

)

 

$

(477

)

 

$

(5,917

)

 

$

838

 

 

 

 

 

 

 

 

 

Restructuring expenses

2,724

 

 

 

 

2,724

 

 

9

 

One-time business reorganization costs (2)

6

 

 

 

 

6

 

 

153

 

Acquisition costs

 

 

 

 

 

 

6

 

Tax effect of the above adjustments

(713

)

 

 

 

(713

)

 

(42

)

Adjusted net (loss) income

$

(3,423

)

 

$

(477

)

 

$

(3,900

)

 

$

964

 

 

 

 

 

 

 

 

 

Adjusted net (loss) income per share, basic and diluted

$

(0.16

)

 

$

(0.02

)

 

$

(0.18

)

 

$

0.04

 

Weighted average number of common shares outstanding, basic

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

Weighted average number of common shares outstanding, diluted

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

 

21,759,414

 

Number of common shares outstanding, basic

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

Number of common shares outstanding, diluted

 

21,523,515

 

 

 

21,523,515

 

 

 

21,523,515

 

 

 

21,759,414

 

  1. 2019 results include the impact of the adoption of new accounting standard IFRS 16. Refer to note 3 of the condensed interim consolidated financial statements for the three and nine months ended September 30, 2019 and related management’s discussion & analysis for further details of the impact of the adoption of new accounting standards.
  2. One-time business reorganization costs include non-recurring headcount reduction expenses for employees that did not qualify as restructuring costs.

Contacts

Mr. Gregory J. Cochrane

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

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