DATA Communications Management Corp. Announces Integration of its Multiple Pakfold Operations into its Brampton, Ontario Facility

BRAMPTON, Ontario--()--DATA Communications Management Corp. (TSX: DCM) (“DATA” or the “Company”) is pleased to announce plans to integrate DATA’s Multiple Pakfold operations into its Brampton, Ontario facility. As a result, DATA will exit Multiple Pakfold’s facility before the end of 2017 and relocate the division’s staff and production capabilities into DATA’s 269,000 square foot Brampton, Ontario facility.

Multiple Pakfold is a leading supplier of business forms, cheques and labels to the trade printing market, with approximately 100 employees operating in a 60,000 square foot facility in Mississauga, Ontario and with sales offices in Calgary, Alberta, Mississauga, Ontario and Montreal, Quebec. Multiple Pakfold specializes in “short run” printing for its clients, who include independent print brokers serving small to medium sized businesses and small buying groups, office supply companies and other printers.

DATA’s Brampton, Ontario facility is focused on the production of long-run forms, roll products and labels for DATA’s enterprise clients, and includes a total of 229,000 square feet of production and warehousing capacity, together with its head office and administration. When this move is completed, DATA will operate six “centres of excellence” across Canada.

Multiple Pakfold will continue to serve its trade printing clients as a distinct market segment. DATA expects to benefit from improved efficiencies in balancing work and staffing across its short-run and long-run forms and labels business, allowing it to absorb incremental capacity into its largest production facility in the country. In excess of $0.8 million in annualized savings is expected from this transition, primarily related to rent and facilities savings. DATA expects to incur approximately $0.8 million in restructuring expenses relating to the Multiple Pakfold move, primarily consisting of early lease exit charges and relocation of equipment in the fourth quarter of 2017. It is expected that substantially all of Multiple Pakfold’s employees will relocate to DATA’s Brampton facility.

“We continue to optimize our operations to make DATA more focused, agile and unified,” said Michael G. Sifton, Chief Executive Officer of DATA. “Together with this initiative, we are moving some work between our Drummondville, Quebec and Brampton plants to prepare for the onboarding of the large financial services client we recently announced, to improve operating margins,” Mr. Sifton added.

About DATA Communications Management Corp.

DATA is a leading provider of business communication solutions, bringing value and collaboration to marketing and operation teams across North America. 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, print services, labels and asset tracking, 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, retail, healthcare, lottery and gaming, 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 will adversely affect DATA’s financial results; the risk that DATA may not be successful in reducing the size of its legacy print business, realizing the benefits expected from restructuring and business reorganization initiatives, reducing costs, reducing and repaying its long-term debt, 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; the failure to realize the expected benefits from acquisitions and risks associated with the integration of acquired businesses; 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.

Contacts

DATA Communications Management Corp.
Mr. Michael G. Sifton, (905) 791-3151
Chief Executive Officer
or
Mr. James E. Lorimer
Chief Financial Officer, (905) 791-3151
ir@datacm.com

Contacts

DATA Communications Management Corp.
Mr. Michael G. Sifton, (905) 791-3151
Chief Executive Officer
or
Mr. James E. Lorimer
Chief Financial Officer, (905) 791-3151
ir@datacm.com