HIGHLIGHTS
THIRD QUARTER 2016
- Net Loss of $1.9 million,
including restructuring expenses of $1.8
million, compared to Net Loss of $1.8
million, including restructuring expenses of $5.8 million in the prior comparative period
- Adjusted Net Loss of $0.5
million, a decrease of $3.0
million compared to the prior comparative period (See Table
3 and "Non-GAAP Measures" below)
- Adjusted EBITDA of $1.9 million,
a decrease of 71.9% year over year (See Table 2 and "Non-GAAP
Measures" below)
- Revenues of $65.8 million, a
decrease of 11.2% year over year
YEAR TO DATE 2016
- Net Income of $1.0 million,
including restructuring expenses of $2.5
million, compared to Net Loss of $32.6 million, including a goodwill impairment
charge of $26.0 million and
restructuring expenses of $12.0
million in the prior comparative period
- Adjusted Net Income of $2.8
million, an increase of $0.5
million compared to the prior comparative period (See Table
3 and "Non-GAAP Measures" below)
- Adjusted EBITDA of $12.1 million,
a decrease of 5.3% year over year (See Table 2 and "Non-GAAP
Measures" below)
- Revenues of $210.2 million, a
decrease of 6.0% year over year
BRAMPTON, ON, Nov. 2, 2016 /CNW/ - DATA Communications
Management Corp. (TSX: DCM) ("DATA" or the "Company") announced its
consolidated financial results for the third quarter and the nine
months ended September 30, 2016.
"In the third quarter of 2016, the DATA team moved several
important strategic projects forward. These included: managing the
shutdown of our Edmonton, Alberta
facility ahead of schedule and at significantly less expense to
date than budgeted; the implementation of new computer networks for
improving service levels, new data storage facilities and PC
platforms; and the advancement of our internal ERP/MRP replacement
project. These initiatives are essential for the future success of
our business. Offsetting these successes were revenue headwinds, as
we continue to compete in a difficult economic and competitive
environment," said Michael G.
Sifton, President and Chief Executive Officer of DATA.
DATA is ahead of plan to exit its Edmonton, Alberta facility by the end of 2016.
During the third quarter of 2016, DATA incurred restructuring
expenses related to that initiative of $0.7
million, and currently expects to incur another $1.1 million of restructuring expenses in the
fourth quarter of 2016. The total expected restructuring expenses
related to that initiative of approximately $1.8 million is significantly below DATA's
original $3.5 million estimate, and
is primarily attributed to lower severance expenses than budgeted.
DATA is downsizing significantly in Edmonton to a 10,000 square foot sales,
customer experience and high-volume digital print production
facility to strategically serve the local market.
Separately, DATA announced that Gregory
J. Cochrane will be joining DATA's executive team as
President in late November 2016.
Mr. Cochrane brings a long and distinguished background in
the communication and marketing services business. His
primary focus will be to drive sales and business development
strategies. Michael G. Sifton will relinquish the title of
President but will continue in his role as CEO, primarily focused
on financial and strategic initiatives. Effective today Mr.
Cochrane will be stepping down from his role on DATA's board of
directors (the "Board of Directors").
For the past several quarters, DATA has been focused on making
its business more agile, focused, optimized and unified. DATA is
now actively pursuing growth opportunities it sees in its markets
which leverage its key competencies of managing complexity and
providing superior execution for its clients' business and
marketing communications needs.
At November 2, 2016, September 30, 2016 and December 31, 2015, DATA had 11,975,053,
11,975,053 and 9,987,528 common shares outstanding,
respectively. On May 27, 2016,
DATA announced that it intended to complete a non-brokered private
placement of up to 198,751,793 common shares at a price of
$0.014 per common share for gross
proceeds to DATA of approximately $2.8
million in two tranches. On May
31, 2016, the first portion of private placement was
completed and DATA issued 167,856,012 common shares. On
July 4, 2016, following receipt of
disinterested shareholder approval at DATA's annual and special
meeting of shareholders held on June 30,
2016, the second portion of the private placement was
completed and DATA issued 30,895,781 common shares. On
July 4, 2016, DATA consolidated its
issued and outstanding common shares on the basis of one
post-consolidation common share for each 100 pre-consolidation
common shares (the "Share Consolidation"). After giving effect to
the Share Consolidation, the 1,197,504,525 common shares then
outstanding were consolidated into 11,975,053 common shares. No
fractional common shares were issued, and any fractional share
entitlements resulting from the Share Consolidation were rounded up
to the nearest whole number of common shares. The exercise price
and number of common shares issuable, and other entitlements, under
awards granted pursuant to DATA's long-term incentive plan have
been proportionately adjusted to reflect the Share Consolidation.
Additionally, the conversion price of DATA's outstanding
6.00% Convertible Unsecured Subordinated Debentures (the "6.00%
Convertible Debentures") was proportionately adjusted to reflect
the Share Consolidation.
RESULTS OF OPERATIONS
All financial information in
this press release is presented in Canadian dollars and in
accordance with generally accepted accounting principles ("GAAP")
measured under International Financial Reporting Standards
("IFRS"), as issued by the International Accounting Standards Board
("IASB") for publicly accountable entities, unless otherwise
noted.
Table
1
|
The following table
sets out selected historical consolidated financial information for
the periods noted.
|
|
|
|
|
|
|
|
|
For the periods
ended September 30, 2016 and 2015
|
July 1
to Sept.
30, 2016
|
|
July 1
to Sept.
30, 2015
|
|
Jan. 1
to Sept.
30, 2016
|
|
Jan. 1
to Sept.
30, 2015
|
(in thousands of
Canadian dollars, except per share amounts,
unaudited)
|
$
|
|
$
|
|
$
|
|
$
|
Revenues
|
65,842
|
|
74,116
|
|
210,172
|
|
223,565
|
Cost of
revenues
|
51,537
|
|
55,730
|
|
160,345
|
|
172,268
|
Gross
profit
|
14,305
|
|
18,386
|
|
49,827
|
|
51,297
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
13,944
|
|
13,439
|
|
42,540
|
|
43,581
|
Restructuring
expenses
|
1,787
|
|
5,756
|
|
2,479
|
|
12,015
|
Impairment of
goodwill
|
—
|
|
—
|
|
—
|
|
26,000
|
|
|
|
|
|
|
|
|
(Loss) income before
finance costs and income taxes
|
(1,426)
|
|
(809)
|
|
4,808
|
|
(30,299)
|
|
|
|
|
|
|
|
|
Finance
costs
|
|
|
|
|
|
|
|
|
Interest
expense
|
838
|
|
1,481
|
|
2,575
|
|
4,229
|
|
Interest
income
|
(4)
|
|
(3)
|
|
(8)
|
|
(10)
|
|
Amortization of
transaction costs
|
111
|
|
135
|
|
467
|
|
305
|
|
945
|
|
1,613
|
|
3,034
|
|
4,524
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
(2,371)
|
|
(2,422)
|
|
1,774
|
|
(34,823)
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
|
|
|
|
Current
|
46
|
|
167
|
|
1,378
|
|
250
|
|
Deferred
|
(552)
|
|
(826)
|
|
(612)
|
|
(2,496)
|
|
(506)
|
|
(659)
|
|
766
|
|
(2,246)
|
|
|
|
|
|
|
|
|
Net (loss) income for
the period
|
(1,865)
|
|
(1,763)
|
|
1,008
|
|
(32,577)
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to common shareholders
|
(1,865)
|
|
(1,763)
|
|
1,008
|
|
(32,577)
|
Basic (loss) earnings
per share
|
(0.16)
|
|
(7.51)
|
|
0.09
|
|
(138.68)
|
Diluted (loss)
earnings per share
|
(0.15)
|
|
(7.51)
|
|
0.09
|
|
(138.68)
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
- basic
|
11,964,978
|
|
234,906
|
|
10,840,273
|
|
234,906
|
Weighted average
number of common shares outstanding
|
|
|
|
|
|
|
|
|
- diluted
|
12,534,940
|
|
234,906
|
|
11,025,630
|
|
234,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at September
30, 2016 and December 31, 2015
|
As at
Sept. 30,
2016
|
|
As at
Dec. 31,
2015
|
|
|
|
|
(in thousands of
Canadian dollars, unaudited)
|
$
|
|
$
|
|
|
|
|
Current
assets
|
71,565
|
|
80,125
|
|
|
|
|
Current
liabilities
|
55,905
|
|
90,298
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
122,705
|
|
134,067
|
|
|
|
|
Total non-current
liabilities
|
45,558
|
|
24,750
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
21,242
|
|
19,019
|
|
|
|
|
Table
2
|
The following table
provides reconciliations of net income (loss) to EBITDA and of net
income (loss) to Adjusted EBITDA for the periods noted. See
"Non-GAAP Measures".
|
EBITDA and
Adjusted EBITDA Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the periods
ended September 30, 2016 and 2015
|
|
July 1
to Sept.
30, 2016
|
|
July 1
to Sept.
30, 2015
|
|
Jan. 1
to Sept.
30, 2016
|
|
Jan. 1
to Sept.
30, 2015
|
(in thousands of
Canadian dollars, unaudited)
|
|
$
|
|
$
|
|
$
|
|
$
|
Net (loss) income for
the period
|
|
(1,865)
|
|
(1,763)
|
|
1,008
|
|
(32,577)
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
838
|
|
1,481
|
|
2,575
|
|
4,229
|
Interest
income
|
|
(4)
|
|
(3)
|
|
(8)
|
|
(10)
|
Amortization of
transaction costs
|
|
111
|
|
135
|
|
467
|
|
305
|
Current income tax
expense
|
|
46
|
|
167
|
|
1,378
|
|
250
|
Deferred income tax
recovery
|
|
(552)
|
|
(826)
|
|
(612)
|
|
(2,496)
|
Depreciation of
property, plant and equipment
|
|
988
|
|
1,198
|
|
3,237
|
|
3,572
|
Amortization of
intangible assets
|
|
517
|
|
487
|
|
1,532
|
|
1,445
|
EBITDA
|
|
79
|
|
876
|
|
9,577
|
|
(25,282)
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses
|
|
1,787
|
|
5,756
|
|
2,479
|
|
12,015
|
Impairment of
goodwill
|
|
—
|
|
—
|
|
—
|
|
26,000
|
Adjusted
EBITDA
|
|
1,866
|
|
6,632
|
|
12,056
|
|
12,733
|
Table 3
|
The following table
provides reconciliations of net income (loss) to Adjusted net
income (loss) and a presentation of Adjusted net income (loss) per
share and Pro forma Adjusted net income (loss) per share for the
periods noted. See "Non-GAAP Measures".
|
Adjusted Net
Income (Loss) Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the periods
ended September 30, 2016 and 2015
|
|
July 1
to
|
|
July 1
to
|
|
Jan. 1
to
|
|
Jan. 1
to
|
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
(in thousands of
Canadian dollars, except share and
|
|
|
|
|
|
|
|
|
per share amounts,
unaudited)
|
|
$
|
|
$
|
|
$
|
|
$
|
Net (loss) income for
the period
|
|
(1,865)
|
|
(1,763)
|
|
1,008
|
|
(32,577)
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses
|
|
1,787
|
|
5,756
|
|
2,479
|
|
12,015
|
Impairment of
goodwill
|
|
—
|
|
—
|
|
—
|
|
26,000
|
Tax effect of the
above adjustments
|
|
(468)
|
|
(1,490)
|
|
(649)
|
|
(3,111)
|
Adjusted net (loss)
income
|
|
(546)
|
|
2,503
|
|
2,838
|
|
2,327
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) per share, basic
|
|
(0.05)
|
|
10.66
|
|
0.26
|
|
9.91
|
Adjusted net income
(loss) per share, diluted
|
|
(0.04)
|
|
10.66
|
|
0.26
|
|
9.91
|
Pro forma Adjusted
net income (loss) per share,
|
|
|
|
|
|
|
|
|
basic
(1)
|
|
(0.05)
|
|
0.21
|
|
0.24
|
|
0.19
|
Pro forma Adjusted
net income (loss) per share,
|
|
|
|
|
|
|
|
|
diluted
(1)
|
|
(0.04)
|
|
0.20
|
|
0.23
|
|
0.19
|
Weighted average
number of common shares
|
|
|
|
|
|
|
|
|
outstanding -
basic
|
|
11,964,978
|
|
234,906
|
|
10,840,273
|
|
234,906
|
Weighted average
number of common shares
|
|
|
|
|
|
|
|
|
outstanding -
diluted
|
|
12,534,940
|
|
234,906
|
|
11,025,630
|
|
234,906
|
Number of common
shares outstanding
|
|
11,975,053
|
|
234,906
|
|
11,975,053
|
|
234,906
|
Note:
|
(1)
|
Pro forma Adjusted
net income (loss) per share, basic, a non-GAAP measure, assumes
Adjusted net income (loss) per share, basic were calculated on the
basis of the total number of common shares outstanding of
11,975,053 at September 30, 2016, rather than the weighted average
number of common shares outstanding at the respective period ends,
given the significant changes in the number of common shares of
DATA outstanding during comparable periods. Pro forma Adjusted net
income (loss) per share, diluted, assumes Adjusted net income
(loss) per share, diluted were calculated on the basis of the total
diluted number of common shares outstanding of 12,545,015 at
September 30, 2016, rather than the weighted average diluted number
of common shares outstanding at the respective period ends, given
the significant changes in the number of common shares of DATA
outstanding during comparable periods.
|
Revenues
For the quarter ended September 30, 2016, DATA recorded revenues of
$65.8 million, a decrease of
$8.3 million or 11.2% compared with
the same period in 2015. The decrease in revenues was due to
non-recurring projects from last year, general volume declines from
customers for print-related products and services, the threatened
Canada Post labour interruption, which reduced demand for work
destined directly or indirectly for the mail stream, and economic
softness in Western Canada and was
partially offset by growth in revenues from new customer orders.
For the nine months ended September 30,
2016, DATA recorded revenues of $210.2 million, a decrease of $13.4 million or 6.0% compared with the same
period in 2015. The decrease in revenues for the nine months ended
September 30, 2016 was primarily due
to non-recurring projects and a greater decline in volume from
existing customers for print-related products and services than
offsetting growth in revenues from new customers.
Cost of Revenues and Gross Profit
For the
quarter ended September 30, 2016,
cost of revenues decreased to $51.5
million from $55.7 million for
the same period in 2015. Gross profit for the quarter ended
September 30, 2016 was $14.3 million, which represented a decrease of
$4.1 million or 22.2% from
$18.4 million for the same period in
2015. Gross profit as a percentage of revenues decreased to
21.7% for the quarter ended September 30,
2016 compared to 24.8% for the same period in 2015. For the
nine months ended September 30, 2016,
cost of revenues decreased to $160.3
million from $172.3 million
for the same period in 2015. Gross profit for the nine months
ended September 30, 2016 was
$49.8 million, which represented a
decrease of $1.5 million or 2.9% from
$51.3 million for the same period in
2015. Gross profit as a percentage of revenues increased to 23.7%
for the nine months ended September 30,
2016 compared to 22.9% for the same period in 2015.
The decrease in gross profit as a percentage of revenues for
the quarter ended September 30, 2016
was due to the decrease in revenues, product mix, which was skewed
towards certain higher paper content and lower margin business and
compressed margins on recently negotiated large repeat contracted
customers and was partially offset by the cost reductions realized
from prior cost savings initiatives implemented in 2015. Those cost
savings initiatives included headcount reductions, which helped
reduce direct and indirect labour costs, respectively. The
increase in gross profit as a percentage of revenues for the nine
months ended September 30, 2016 was
due to the cost reductions realized from prior cost savings
initiatives implemented in 2015 and was partially offset by the
decrease in revenues, product mix and compressed margins on
recently negotiated large repeat contracted customers.
Selling, General and Administrative
Expenses
Selling, general and administrative
("SG&A") expenses for the quarter ended September 30, 2016 increased $0.5 million or 3.8% to $13.9 million compared to $13.4 million in the same period in 2015. As a
percentage of revenues, these costs were 21.2% of revenues for the
quarter ended September 30, 2016
compared to 18.1% of revenues for the same period in 2015. SG&A
expenses for the nine months ended September
30, 2016 decreased $1.0
million or 2.4% to $42.5
million compared to $43.6
million for the same period of 2015. As a percentage of
revenues, these costs were 20.2% and 19.5% of revenues for the nine
month periods ended September 30,
2016 and 2015, respectively. The increase in SG&A
expenses for the quarter ended September 30,
2016 was primarily attributable to higher third quarter
SG&A expenses related to share-based compensation expense,
increased marketing expenses and additional corporate costs related
to the change in DATA's legal name on July
4, 2016 (the "Name Change"). The decrease in SG&A
expenses for the nine months ended September
30, 2016 was primarily attributable to cost savings
initiatives implemented in 2015, including headcount reductions
across sales, general and administration functions, and was
partially offset by higher SG&A expenses related to share-based
compensation expense, increased marketing expenses and additional
corporate costs related to changes in the Board of Directors in the
second quarter of 2016, the Name Change and the Share
Consolidation.
Restructuring Expenses
For the three and nine
month periods ended September 30,
2016, DATA incurred total restructuring expenses of
$1.8 million and $2.5 million, respectively, primarily related to
headcount reductions and a charge to onerous contracts in both
periods. The charge to onerous contracts of $0.4 million related to a lease exit charge for a
closed facility in Richmond Hill,
Ontario. For the three months ended September 30, 2015, DATA incurred restructuring
expenses of $5.8 million due to
changes in senior management, headcount reductions across DATA's
operations and a charge to onerous contracts. The charge to
onerous contracts of $0.7 million
during the three months ended September 30,
2015 related to a lease exit charge for a closed warehouse
facility in Brampton, Ontario.
For the nine months ended September
30, 2015, DATA incurred restructuring expenses of
$12.0 million comprised of (i)
$10.6 million of restructuring
expenses due to changes in senior management, headcount reductions
across DATA's operations and the closure of certain manufacturing
locations, and a (ii) charge to onerous contracts of $1.4 million for lease exit charges for closed
facilities in Calgary, Alberta and
in Brampton Ontario.
Adjusted EBITDA
For the quarter ended
September 30, 2016, Adjusted EBITDA
was $1.9 million, or 2.8% of
revenues. Adjusted EBITDA for the quarter ended September 30, 2016 decreased $4.8 million or 71.9% from the same period in the
prior year and Adjusted EBITDA margin for the quarter, as a
percentage of revenues, decreased from 8.9% of revenues in 2015 to
2.8% of revenues in 2016. For the nine months ended September 30, 2016, Adjusted EBITDA was
$12.1 million, or 5.7% of revenues.
Adjusted EBITDA for the nine months ended September 30, 2016 decreased $0.7 million or 5.3% from the same period in the
prior year and Adjusted EBITDA margin for the period, as a
percentage of revenues, remained largely unchanged from the prior
year at 5.7% of revenues in 2016. The decrease in Adjusted EBITDA
for the three and nine month periods ended September 30, 2016 was attributable to lower
levels of revenues and gross profit compared to the prior
comparable periods and higher SG&A expenses in the quarter
ended September 30, 2016.
Interest Expense
Interest expense, including
interest on debt outstanding under DATA's credit facilities, on its
outstanding 6.00% Convertible Debentures, on certain unfavourable
lease obligations related to closed facilities and on DATA's
employee benefit plans, was $0.8
million for the quarter ended September 30, 2016 compared to $1.5 million for the same period in 2015, and was
$2.6 million for the nine months
ended September 30, 2016 compared to
$4.2 million for the same period in
2015. Interest expense for the three and nine month periods
ended September 30, 2016 was lower
than the same periods in the prior year primarily as a result of
reductions in the aggregate principal amount of outstanding 6.00%
Convertible Debentures and debt outstanding under DATA's credit
facilities, respectively.
Income Taxes
DATA reported a loss before income
taxes of $2.4 million and a deferred
income tax recovery of $0.6 million
for the quarter ended September 30,
2016 compared to a loss before income taxes of $2.4 million, a current income tax expense of
$0.2 million and a deferred income
tax recovery of $0.8 million for the
quarter ended September 30, 2015.
DATA reported income before income taxes of $1.8 million, a current income tax expense of
$1.4 million and a deferred income
tax recovery of $0.6 million for the
nine months ended September 30, 2016
compared to a loss before income taxes of $34.8 million, a current income tax expense of
$0.3 million and a deferred income
tax recovery of $2.5 million for the
nine months ended September 30, 2015.
The current income tax expense was due to the taxes payable
on DATA's estimated taxable income for the three and nine month
periods ended September 30, 2016,
respectively. In addition, the current tax expense for the
nine months ended September 30, 2016
includes a recovery of taxes paid in a prior period offset by a
reclassification from deferred taxes. The deferred income tax
recoveries were due to changes in estimates of future reversals of
temporary differences and new temporary differences that arose
during the three and nine month periods ended September 30, 2016 and 2015, respectively.
Net (Loss) Income
Net loss for the three months
ended September 30, 2016 was
$1.9 million compared to net loss of
$1.8 million for the same period in
2015. Net income for the nine months ended September 30, 2016 was $1.0 million compared to a net loss $32.6 million for the same period in 2015. The
decrease in comparable profitability for the three months ended
September 30, 2016 was substantially
due to lower restructuring and interest expenses and was partially
offset by lower gross profit during the three months ended
September 30, 2016. The increase in
comparable profitability for the nine months ended September 30, 2016 was substantially due to lower
restructuring and interest expenses and was partially offset by
lower gross profit during the nine months ended September 30, 2016 and a goodwill impairment
charge during the nine months ended September 30, 2015. The increase in
comparable profitability for the nine months ended September 30, 2016 was partially offset by a
larger current income tax expense and a smaller deferred income tax
recovery during the nine months ended September 30, 2016.
Adjusted Net (Loss) Income
Adjusted net loss
for the three months ended September 30,
2016 was $0.5 million compared
to Adjusted net income of $2.5
million for the same period in 2015. Adjusted net
income for the nine months ended September
30, 2016 was $2.8 million
compared to Adjusted net income of $2.3
million for the same period in 2015. The decrease in
comparable profitability for the three months ended September 30, 2016 was attributable to lower
revenues, gross profit and higher SG&A expenses which was
partially offset by lower interest expense in 2016. The increase in
comparable profitability for the nine months ended September 30, 2016 was attributable to lower
SG&A and interest expenses and was partially offset by lower
revenues and gross profit in 2016.
WORKING CAPITAL
Working capital in the third quarter of 2016 was negatively
impacted by:
- Differences in the timing of receivables and payables, which
resulted in a higher relative reduction in trade payables;
- Declines in deferred revenue resulting from lower activity from
certain large customers who pay in advance for production to be
held in inventory, and
- Lower volumes from some of DATA's larger customers resulting in
lagging inventory turns, together with inventory management
associated with the Edmonton
move.
INVESTING ACTIVITIES
Capital expenditures for the three and nine months ended
September 30, 2016 were $0.5 million and $1.3
million, respectively. These capital expenditures, which
were financed by cash flow from operations, were related primarily
to maintenance capital expenditures.
FINANCING ACTIVITIES
On May 31, 2016, DATA completed a
portion of a non-brokered private placement and issued a total of
1,678,567 common shares at a price of $1.40 per common share. On July 4, 2016, following receipt of disinterested
shareholder approval at the annual and special meeting of DATA's
shareholders held on June 30, 2016,
DATA completed the remaining portion of the private placement and
issued an additional 308,958 common shares at a price of
$1.40 per common share. During
the three months ended September 30,
2016, DATA received gross proceeds of $0.4 million, less issue expenses of $0.1 million for net proceeds of $0.4 million from the remaining portion of the
private placement. During the nine months ended September 30, 2016, DATA received gross proceeds
of $2.8 million, less issue expenses
of $0.1 million for net proceeds of
$2.7 million in aggregate from both
portions of the private placement.
During the three months ended September
30, 2016, DATA repaid $1.4
million of principal amounts outstanding under its credit
facilities and obtained $5.6 million
in advances under its credit facilities. During the nine
months ended September 30, 2016, DATA
obtained $49.5 million in cash from
advances under its credit facilities and repaid $43.3 million and $11.6
million of the principal amounts outstanding under its prior
and existing credit facilities, respectively. During the nine
months ended September 30, 2016, DATA
incurred $1.3 million of transaction
costs related to the establishment of new credit facilities.
About DATA Communications Management Corp.
At DATA, we are experts at planning and driving business
communications. We help marketers and agencies unify and execute
communications campaigns across multiple channels, and we help
operations teams streamline and automate document and
communications management processes. Our core capabilities
include direct marketing, commercial print services, labels and
automated identification solutions, event tickets and gift cards,
logistics and fulfilment, content and workflow management, data
management and analytics, and regulatory communications. We serve
clients in key vertical markets such as financial services,
healthcare, lottery and gaming, retail, not-for-profit, and energy.
We are strategically located across Canada to support clients on a national basis,
and serve the U.S. market through our facilities in Chicago, Illinois.
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 the System for Electronic Document Analysis and Retrieval
(SEDAR) at www.sedar.com.
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 DATA, 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 DATA's current views regarding
future events and operating performance, are based on information
currently available to DATA, and speak only as of the date of this
press release. These forward-looking statements involve a
number of risks, uncertainties and assumptions and 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 DATA to be materially different from any future results,
performance, objectives or achievements that may be expressed or
implied by such forward-looking statements. The principal factors,
assumptions and risks that DATA made or took into account in the
preparation of these forward-looking statements include: the
limited growth in the traditional printing industry and the
potential for further declines in sales of DATA's printed business
documents relative to historical sales levels for those products;
the risk that changes in the mix of products and services sold by
DATA which are related to reduced demand for its printed products
will adversely affect DATA's financial results; the risk that DATA
may not be successful in reducing the size of its legacy print
business, reducing costs, reducing its long-term debt, repaying or
refinancing its outstanding 6.00% convertible unsecured
subordinated debentures, and growing its digital communications
business; the risk that DATA may not be successful in managing its
organic growth; DATA's ability to invest in, develop and
successfully market new digital and other products and services;
competition from competitors supplying similar products and
services, some of whom have greater economic resources than DATA
and are well-established suppliers; DATA's ability to grow its
sales or even maintain historical levels of its sales of printed
business documents; the impact of economic conditions on DATA's
businesses; risks associated with acquisitions by DATA; increases
in the costs of paper and other raw materials used by DATA; and
DATA's ability to maintain relationships with its customers.
Additional factors are discussed elsewhere in this press release
and under the headings "Risk Factors" and "Risks and Uncertainties"
in DATA's management's discussion and analysis and in DATA's other
publicly available disclosure documents, as filed by DATA on SEDAR
(www.sedar.com). 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, DATA does not intend and
does not assume any obligation to update these forward-looking
statements.
NON-GAAP MEASURES
This press release includes certain non-GAAP measures as
supplementary information. Except as otherwise noted, when used in
this press release, EBITDA means earnings before interest and
finance costs, taxes, depreciation and amortization and Adjusted
net income (loss) means net income (loss) adjusted for the impact
of certain non-cash items and certain items of note on an after-
tax basis. Adjusted EBITDA for the three and nine month
periods ended September 30, 2016 and
the three months ended September 30,
2015 each means EBITDA adjusted for restructuring expenses.
Adjusted EBITDA for the nine months ended September 30, 2015 means EBITDA adjusted
September 30, 2015 for restructuring
expenses and goodwill impairment charges. Adjusted net income
(loss) for the three and nine month periods ended September 30, 2016 and the three months ended
September 30, 2015 each means net
income (loss) adjusted for restructuring expenses and the tax
effects of those items. Adjusted net income (loss) for the
nine months ended September 30, 2015
means net income (loss) adjusted for restructuring expenses,
goodwill impairment charges and the tax effects of those items.
Adjusted net income (loss) per share, (basic and diluted) is
calculated by dividing Adjusted net income for the period by the
weighted average number of common shares (basic and diluted)
outstanding during the period. Pro forma Adjusted net income
(loss) per share, basic and diluted each assumes Adjusted net
income (loss) per share was calculated on the basis of the total
number of common shares outstanding at September 30, 2016, rather than the weighted
average or the weighted average diluted number of common shares
outstanding at the respective period ends, given the significant
changes in the number of common shares of DATA outstanding during
those periods. DATA believes that, in addition to net income
(loss), Adjusted net income (loss), Adjusted net income (loss) per
share, Pro forma Adjusted net income (loss) per share, EBITDA and
Adjusted EBITDA are useful supplemental measures in evaluating the
performance of DATA. Adjusted net income (loss), Adjusted net
income (loss) per share, Pro forma Adjusted net income (loss) per
share, EBITDA and Adjusted EBITDA are not earnings measures
recognized by IFRS and do not have any standardized meanings
prescribed by IFRS. Therefore, Adjusted net income (loss), Adjusted
net income (loss) per share, Pro forma Adjusted net income (loss)
per share, EBITDA and Adjusted EBITDA are unlikely to be comparable
to similar measures presented by other issuers.
Investors are cautioned that Adjusted net income (loss),
Adjusted net income (loss) per share, Pro forma Adjusted net income
(loss) per share, EBITDA and Adjusted EBITDA should not be
construed as alternatives to net income (loss) determined in
accordance with IFRS as an indicator of DATA's performance.
For a reconciliation of net income (loss) to EBITDA and a
reconciliation of net income (loss) to Adjusted EBITDA, see Table 2
above. For a reconciliation of net income (loss) to Adjusted net
income (loss) and a presentation of Adjusted net income (loss) per
share and Pro forma Adjusted net income (loss) per share, see Table
3 above.
CONSOLIDATED
STATEMENTS OF FINANCIAL POSITION
|
|
|
|
|
|
(in thousands of
Canadian dollars, unaudited)
|
|
September 30,
2016
|
|
December 31,
2015
|
|
|
$
|
|
$
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
—
|
|
871
|
|
Trade
receivables
|
|
29,366
|
|
38,051
|
|
Inventories
|
|
37,344
|
|
37,053
|
|
Prepaid expenses and
other current assets
|
|
4,855
|
|
4,150
|
|
|
71,565
|
|
80,125
|
Non-current
assets
|
|
|
|
|
|
Deferred income tax
assets
|
|
3,340
|
|
2,070
|
|
Restricted
cash
|
|
425
|
|
—
|
|
Property, plant and
equipment
|
|
12,076
|
|
14,422
|
|
Pension
asset
|
|
—
|
|
770
|
|
Intangible
assets
|
|
4,233
|
|
5,614
|
|
Goodwill
|
|
31,066
|
|
31,066
|
|
|
|
|
|
|
|
122,705
|
|
134,067
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Bank
overdraft
|
|
829
|
|
—
|
|
Current portion of
Credit facilities
|
|
5,827
|
|
43,095
|
|
Current portion of
Convertible debentures
|
|
11,040
|
|
—
|
|
Trade
payables
|
|
24,565
|
|
29,766
|
|
Provisions
|
|
3,446
|
|
5,723
|
|
Income
taxespayable
|
|
1,941
|
|
903
|
|
Deferred
revenue
|
|
8,257
|
|
10,811
|
|
|
55,905
|
|
90,298
|
Non-current
liabilities
|
|
|
|
|
|
Provisions
|
|
773
|
|
1,483
|
|
Credit
facilities
|
|
30,994
|
|
—
|
|
Convertible
debentures
|
|
—
|
|
10,912
|
|
Deferred income tax
liabilities
|
|
4
|
|
76
|
|
Other non-current
liabilities
|
|
1,616
|
|
1,362
|
|
Pension
obligations
|
|
9,418
|
|
8,354
|
|
Other post-employment
benefit plans
|
|
2,753
|
|
2,563
|
|
|
101,463
|
|
115,048
|
|
|
|
|
|
Equity
|
|
|
|
|
Shareholders'
equity
|
|
|
|
|
|
Shares
|
|
237,432
|
|
234,782
|
|
Conversion
options
|
|
128
|
|
128
|
|
Contributed
surplus
|
|
1,103
|
|
385
|
|
Accumulated other
comprehensive income
|
|
215
|
|
306
|
|
Deficit
|
|
(217,636)
|
|
(216,582)
|
|
|
21,242
|
|
19,019
|
|
|
|
|
|
|
|
122,705
|
|
134,067
|
CONSOLIDATED
STATEMENTS OF LOSS
|
|
|
|
|
|
|
|
|
|
(in thousands of
Canadian dollars, except per
|
|
For the
three
|
|
For the
three
|
share amounts,
unaudited)
|
|
months
ended
|
|
months
ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
$
|
|
$
|
|
|
|
|
|
Revenues
|
|
65,842
|
|
74,116
|
|
|
|
|
|
Cost of
revenues
|
|
51,537
|
|
55,730
|
|
|
|
|
|
Gross
profit
|
|
14,305
|
|
18,386
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Selling, commissions
and expenses
|
|
7,676
|
|
7,549
|
|
General and
administration expenses
|
|
6,268
|
|
5,890
|
|
Restructuring
expenses
|
|
1,787
|
|
5,756
|
|
|
15,731
|
|
19,195
|
|
|
|
|
|
Loss before
finance costs and income taxes
|
|
(1,426)
|
|
(809)
|
|
|
|
|
|
Finance
costs
|
|
|
|
|
|
Interest
expense
|
|
838
|
|
1,481
|
|
Interest
income
|
|
(4)
|
|
(3)
|
|
Amortization of
transaction costs
|
|
111
|
|
135
|
|
|
945
|
|
1,613
|
|
|
|
|
|
Loss before income
taxes
|
|
(2,371)
|
|
(2,422)
|
Income tax expense
(recovery)
|
|
|
|
|
|
Current
|
|
46
|
|
167
|
|
Deferred
|
|
(552)
|
|
(826)
|
|
|
(506)
|
|
(659)
|
|
|
|
|
|
Net loss for the
period
|
|
(1,865)
|
|
(1,763)
|
|
|
|
|
|
Basic loss per
share
|
|
(0.16)
|
|
(7.51)
|
|
|
|
|
|
Diluted loss per
share
|
|
(0.15)
|
|
(7.51)
|
CONSOLIDATED
STATEMENTS OF INCOME (LOSS)
|
|
|
|
|
|
(in thousands of
Canadian dollars, except per
|
|
For the
nine
|
|
For the
nine
|
share
amounts, unaudited)
|
|
months
ended
|
|
months
ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
$
|
|
$
|
|
|
|
|
|
Revenues
|
|
210,172
|
|
223,565
|
|
|
|
|
|
Cost of
revenues
|
|
160,345
|
|
172,268
|
|
|
|
|
|
Gross
profit
|
|
49,827
|
|
51,297
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
Selling, commissions
and expenses
|
|
23,855
|
|
25,347
|
|
General and
administration expenses
|
|
18,685
|
|
18,234
|
|
Restructuring
expenses
|
|
2,479
|
|
12,015
|
|
Impairment of
goodwill
|
|
—
|
|
26,000
|
|
|
45,019
|
|
81,596
|
|
|
|
|
|
Income (loss)
before finance costs and
|
|
|
|
|
income
taxes
|
|
4,808
|
|
(30,299)
|
|
|
|
|
|
Finance
costs
|
|
|
|
|
|
Interest
expense
|
|
2,575
|
|
4,229
|
|
Interest
income
|
|
(8)
|
|
(10)
|
|
Amortization of
transaction costs
|
|
467
|
|
305
|
|
|
3,034
|
|
4,524
|
|
|
|
|
|
Income (loss)
before income taxes
|
|
1,774
|
|
(34,823)
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
|
Current
|
|
1,378
|
|
250
|
|
Deferred
|
|
(612)
|
|
(2,496)
|
|
|
766
|
|
(2,246)
|
|
|
|
|
|
Net income (loss)
for the period
|
|
1,008
|
|
(32,577)
|
|
|
|
|
|
Basic earnings
(loss) per share
|
|
0.09
|
|
(138.68)
|
|
|
|
|
|
Diluted earnings
(loss) per share
|
|
0.09
|
|
(138.68)
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
|
|
|
|
(in thousands of
Canadian dollars, unaudited)
|
For the
three
|
|
For the
three
|
|
months
ended
|
|
months
ended
|
|
September 30,
2016
|
|
September 30,
2015
|
|
$
|
|
$
|
|
|
|
|
Net loss for the
period
|
(1,865)
|
|
(1,763)
|
|
|
|
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
Items that may be
reclassified subsequently to net loss
|
|
|
|
|
Foreign currency
translation
|
26
|
|
80
|
|
26
|
|
80
|
|
|
|
|
Items that will
not be reclassified to net loss
|
|
|
|
|
Re-measurements of
post-employment benefit obligations
|
(646)
|
|
(391)
|
|
Taxes related to
post-employment adjustment above
|
169
|
|
102
|
|
(477)
|
|
(289)
|
|
|
|
|
Other
comprehensive loss for the period, net of tax
|
(451)
|
|
(209)
|
|
|
|
|
Comprehensive loss
for the period
|
(2,316)
|
|
(1,972)
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
(in thousands of
Canadian dollars, unaudited)
|
For the
nine
|
|
For the
nine
|
|
months
ended
|
|
months
ended
|
|
September 30,
2016
|
|
September 30,
2015
|
|
$
|
|
$
|
|
|
|
|
Net income (loss)
for the period
|
1,008
|
|
(32,577)
|
|
|
|
|
Other
comprehensive income (loss):
|
|
|
|
|
|
|
|
Items that may be
reclassified subsequently to net income (loss)
|
|
|
|
|
Foreign currency
translation
|
(91)
|
|
153
|
|
(91)
|
|
153
|
|
|
|
|
Items that will
not be reclassified to net income (loss)
|
|
|
|
|
Re-measurements of
post-employment benefit obligations
|
(2,791)
|
|
760
|
|
Taxes related to
post-employment adjustment above
|
729
|
|
(198)
|
|
(2,062)
|
|
562
|
|
|
|
|
Other
comprehensive (loss) income for the period, net of
tax
|
(2,153)
|
|
715
|
|
|
|
|
Comprehensive loss
for the period
|
(1,145)
|
|
(31,862)
|
CONSOLIDATED
STATEMENTS OF CHANGES IN EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
(in thousands of
Canadian dollars,
|
|
|
|
Accumulated
|
|
|
unaudited)
|
|
|
|
other
|
|
Total
|
|
|
Conversion
|
Contributed
|
comprehensive
|
|
equity
|
|
Shares
|
options
|
surplus
|
income
|
Deficit
|
(deficit)
|
|
$
|
$
|
$
|
$
|
$
|
$
|
|
|
|
|
|
|
|
Balance as at
December 31, 2014
|
215,336
|
513
|
—
|
92
|
(197,528)
|
18,413
|
|
|
|
|
|
|
|
Net loss for the
period
|
—
|
—
|
—
|
—
|
(32,577)
|
(32,577)
|
Other comprehensive
income for the period
|
—
|
—
|
—
|
153
|
562
|
715
|
Total comprehensive
income (loss) for the
period
|
—
|
—
|
—
|
153
|
(32,015)
|
(31,862)
|
|
|
|
|
|
|
|
Balance as at
September 30, 2015
|
215,336
|
513
|
—
|
245
|
(229,543)
|
(13,449)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
December 31, 2015
|
234,782
|
128
|
385
|
306
|
(216,582)
|
19,019
|
|
|
|
|
|
|
|
Net income for the
period
|
—
|
—
|
—
|
—
|
1,008
|
1,008
|
Other comprehensive
loss for the period
|
—
|
—
|
—
|
(91)
|
(2,062)
|
(2,153)
|
Total comprehensive
loss for the period
|
—
|
—
|
—
|
(91)
|
(1,054)
|
(1,145)
|
|
|
|
|
|
|
|
Issuance of common
shares
|
2,650
|
—
|
—
|
—
|
—
|
2,650
|
Share-based
compensation expense
|
—
|
—
|
718
|
—
|
—
|
718
|
|
|
|
|
|
|
|
Balance as at
September 30, 2016
|
237,432
|
128
|
1,103
|
215
|
(217,636)
|
21,242
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
(in thousands of
Canadian dollars, unaudited)
|
|
For the
three
|
|
For the
three
|
|
|
months
ended
|
|
months
ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
$
|
|
$
|
|
|
|
|
|
Cash provided by
(used in)
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
Net loss for the
period
|
|
(1,865)
|
|
(1,763)
|
Adjustments to net
loss
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
988
|
|
1,198
|
|
Amortization of
intangible assets
|
|
517
|
|
487
|
|
Share-based
compensation expense
|
|
142
|
|
—
|
|
Pension
expense
|
|
147
|
|
152
|
|
Loss (gain) on
disposal of property, plant and equipment
|
|
49
|
|
(5)
|
|
Provisions
|
|
1,787
|
|
5,756
|
|
Amortization of
transaction costs
|
|
111
|
|
135
|
|
Accretion of
convertible debentures
|
|
21
|
|
76
|
|
Other non-current
liabilities
|
|
(277)
|
|
368
|
|
Other post-employment
benefit plans, net
|
|
64
|
|
77
|
|
Income tax credits
recognized
|
|
(124)
|
|
(181)
|
|
Income taxes
recovery
|
|
(506)
|
|
(659)
|
|
|
1,054
|
|
5,641
|
Changes in working
capital
|
|
(5,113)
|
|
(1,042)
|
Contributions made to
pension plans
|
|
(481)
|
|
(458)
|
Provisions
paid
|
|
(1,405)
|
|
(3,018)
|
Income taxes received
(paid)
|
|
57
|
|
(10)
|
|
|
(5,888)
|
|
1,113
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(459)
|
|
(526)
|
Purchase of
intangible assets
|
|
—
|
|
(302)
|
Proceeds on disposal
of property, plant and equipment
|
|
10
|
|
7
|
|
|
(449)
|
|
(821)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Proceeds from
issuance of common shares, net
|
|
370
|
|
—
|
Proceeds from credit
facilities
|
|
5,601
|
|
—
|
Repayment of credit
facilities
|
|
(1,422)
|
|
(1,000)
|
Proceeds from loan
payable
|
|
—
|
|
341
|
Repayment of loan
payable
|
|
(55)
|
|
(13)
|
Finance and
transaction costs
|
|
—
|
|
(20)
|
Finance lease
payments
|
|
—
|
|
(9)
|
|
|
4,494
|
|
(701)
|
|
|
|
|
|
Decrease in cash
and cash equivalents during the period
|
|
(1,843)
|
|
(409)
|
Cash and cash
equivalents – beginning of period
|
|
1,003
|
|
3,514
|
Effects of foreign
exchange on cash balances
|
|
11
|
|
48
|
(Bank overdraft)
cash and cash equivalents – end of period
|
|
(829)
|
|
3,153
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
(in thousands of
Canadian dollars, unaudited)
|
|
For the
nine
|
|
For the
nine
|
|
|
months
ended
|
|
months
ended
|
|
|
September 30,
2016
|
|
September 30,
2015
|
|
|
$
|
|
$
|
|
|
|
|
|
Cash provided by
(used in)
|
|
|
|
|
|
|
|
|
|
Operating
activities
|
|
|
|
|
Net income (loss) for
the period
|
|
1,008
|
|
(32,577)
|
Adjustments to net
income (loss)
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
3,237
|
|
3,572
|
|
Amortization of
intangible assets
|
|
1,532
|
|
1,445
|
|
Share-based
compensation expense
|
|
718
|
|
—
|
|
Pension
expense
|
|
442
|
|
456
|
|
Loss on disposal of
property, plant and equipment
|
|
238
|
|
34
|
|
Impairment of
goodwill
|
|
—
|
|
26,000
|
|
Provisions
|
|
2,479
|
|
12,015
|
|
Amortization of
transaction costs
|
|
467
|
|
305
|
|
Accretion of
convertible debentures
|
|
64
|
|
137
|
|
Other non-current
liabilities
|
|
394
|
|
438
|
|
Other post-employment
benefit plans, net
|
|
190
|
|
213
|
|
Tax credits
recognized
|
|
(124)
|
|
(181)
|
|
Income tax expense
(recovery)
|
|
766
|
|
(2,246)
|
|
|
11,411
|
|
9,611
|
Changes in working
capital
|
|
(77)
|
|
7,534
|
Contributions made to
pension plans
|
|
(1,399)
|
|
(1,397)
|
Provisions
paid
|
|
(5,466)
|
|
(6,962)
|
Income taxes
paid
|
|
(211)
|
|
(148)
|
|
|
4,258
|
|
8,638
|
|
|
|
|
|
Investing
activities
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(1,282)
|
|
(4,019)
|
Purchase of
intangible assets
|
|
(151)
|
|
(302)
|
Proceeds on disposal
of property, plant and equipment
|
|
134
|
|
639
|
|
|
(1,299)
|
|
(3,682)
|
|
|
|
|
|
Financing
activities
|
|
|
|
|
Proceeds from
issuance of common shares, net
|
|
2,650
|
|
—
|
Proceeds from credit
facilities
|
|
49,532
|
|
—
|
Repayment of credit
facilities
|
|
(54,868)
|
|
(3,000)
|
Proceeds from loan
payable
|
|
—
|
|
341
|
Repayment of loan
payable
|
|
(135)
|
|
(13)
|
Increase in
restricted cash
|
|
(425)
|
|
—
|
Finance and
transaction costs
|
|
(1,341)
|
|
(13)
|
Finance lease
payments
|
|
(18)
|
|
(27)
|
|
|
(4,605)
|
|
(2,712)
|
|
|
|
|
|
(Decrease)
increase in cash and cash equivalents
|
|
|
|
|
|
during the
period
|
|
(1,646)
|
|
2,244
|
Cash and cash
equivalents – beginning of period
|
|
871
|
|
812
|
Effects of foreign
exchange on cash balances
|
|
(54)
|
|
97
|
(Bank overdraft)
cash and cash equivalents – end of period
|
|
(829)
|
|
3,153
|
SOURCE DATA Communications Management Corp.