Presentation on theme: "The DATA Group Income Fund Trusts in Focus TD Newcrest Conference September 25, 2007."— Presentation transcript:
The DATA Group Income Fund Trusts in Focus TD Newcrest Conference September 25, 2007
THE DATA GROUP INCOME FUND Corporate Overview David Odell President & Chief Executive Officer
THE DATA GROUP INCOME FUND Forward-Looking Statements Certain statements in this document are forward-looking statements, which reflect managements current beliefs and expectations regarding the Fund and The DATA Groups future growth, results of operations, performance, and business prospects and opportunities. Forward-looking statements involve risks and uncertainties related to factors that could cause actual results to differ materially from anticipated results, including those factors discussed in the Funds periodic filings with Canadian securities regulatory authorities. 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 document. Unless required by applicable securities law, the Fund does not intend and does not assume any obligation to update these forward-looking statements.
THE DATA GROUP INCOME FUND Solutions Beyond Print Began trading December 21, 2004 under symbol DGI.UN In business since 1959 23.5 million units outstanding and $35.0 million in convertible debentures Annualized distribution of $1.1587 per unit Leading provider of total document management solutions State-of-the-Art Manufacturing, Warehousing and Distribution
THE DATA GROUP INCOME FUND Diversified Long-Term Blue-Chip Customer Base 11,800 customers Majority of Top 25 >10 year relationships
THE DATA GROUP INCOME FUND Focus on Related Segments Marketing & Promotion Packaging Labels Financial Printing Book Publishing Business Documents Greeting Cards Stationery Newspapers Magazines Newspaper Inserts Event Tickets Canadian Printing Industry
THE DATA GROUP INCOME FUND Canadas Leader in Total Document Management Solutions Organize Manage Migrate
THE DATA GROUP INCOME FUND Broad High Value-Added Products and Services Total Document Management Services Event Tickets Print-On-Demand Forms Direct Mail Printed Products Stock Tab Annual Reports Marketing & Promotions Materials Labels Transportation Documents Transactional Documents Lottery Gift Cards
THE DATA GROUP INCOME FUND Update – Relizon Acquisition On August 31, 2006 acquired Relizon Canada Inc. Relizon Canada Inc. was our largest and best competitor Purchase price of $141.0 million $112.0 million in cash, issued 2.9 million units to the vendor Public offering of 5.650 million units at $9.50 each and $35.0 million 6.75% convertible debentures Increased credit facility to $90.0 million, drew $30.0 million for a total of $70.0 million outstanding
THE DATA GROUP INCOME FUND Update – Relizon Acquisition (contd) Solid financial and operating performance Significant opportunities to achieve meaningful synergies Leveraging complementary strengths as a larger combined business Increasing The DATA Groups size and financial strength Further enhancing The DATA Groups stable cash flow
THE DATA GROUP INCOME FUND Update – Relizon Acquisition (contd) Restructuring initiatives update: –Announced March 1, 2007 closure of 4 facilities –Resulted in elimination of 121 jobs and the transfer of 99 jobs –Completed other initiatives to reduce management, sales and administration –Announced sale/leaseback of Brockville facility for $4.5 million which is expected to close before October 15, 2007 –3 owned facilities listed for sale –Originally projected synergies at approximately $7.0 million per annum –We now estimate synergies to be $1.0 to $3.0 million higher at $8.0 million to $10.0 million per annum
THE DATA GROUP INCOME FUND Competitive Advantages High value-added products and services It truly is DATA, Solutions Beyond Print Unparalleled performance against service level and savings deliverables Proprietary systems –Highly efficient –Differentiation of offering –Very professional, highly-trained, consultative sales organization
Financial Overview Paul OShea Chief Financial Officer
THE DATA GROUP INCOME FUND 2006 Financial Results Fund revenue of $286.7 million Gross Profit of $79.9 million Gross Profit of 27.9% Adjusted EBITDA of $33.1 million Adjusted EBITDA of 11.6% of revenue Financial results for the period of January 1, 2006 to December 31, 2006
THE DATA GROUP INCOME FUND 2006 Distributable Cash Cash available for distribution of $24.5 million or $1.326 per unit Distribution to unitholders of $21.4 million or $1.159 per unit Excess cash per unit of $0.167 Payout ratio of 87.4% For the period January 1, 2006 to December 31, 2006
THE DATA GROUP INCOME FUND Q2 and YTD 2007 Financial Results Revenue of $97.2 million and $201.2 million Gross Profit of $25.4 million and $53.0 million Gross Profit of 26.1% and 26.3% Adjusted EBITDA of $7.4 million and $17.4 million Adjusted EBITDA of 7.6% and 8.6% of revenue Financial Results for the period January 1, 2007 to June 30, 2007
THE DATA GROUP INCOME FUND Q2 and YTD 2007 Distributable Cash Cash available for distribution of $4.4 million or $0.186 per unit in Q2 and $11.7 million or $0.499 per unit YTD Payout ratio of 156.2% in Q2 and 116.1% YTD Adjusting for integration costs of $2.4 million and capital expenditures of $1.0 million, a payout ratio of 88.1% in Q2 and 84.3% YTD Financial Results for the period January 1, 2007 to June 30, 2007
THE DATA GROUP INCOME FUND Balance Sheet - at June 30, 2007 Total current assets of $103.3 million Total assets of $377.5 million Total current liabilities of $55.3 million Long-term obligations including bank loans, convertible debentures, future income taxes & pension obligations of $127.4 million Total unitholder equity of $194.8 million
Summary David Odell President & Chief Executive Officer
THE DATA GROUP INCOME FUND Strategic Focus Continued concentration on revenue mix with the key focus upon value-added Integration of Relizon and DATA operations Maintain / build upon leadership position Stick to our knitting Exceed client S.L.A. expectations Pursue strategic, accretive acquisitions
THE DATA GROUP INCOME FUND Business Summary Long history as a cash generator Diverse mix of high quality blue-chip customers with whom we enjoy long-term relationships Leading or significant share in segments we participate in Multiple revenue streams derived from broad range of value-added products and services, resulting in little or no seasonality Reasonable capex requirements, disciplined investment process Nearly all business conducted in Canada, resulting in minimal exposure to foreign exchange risk
The DATA Group Income Fund Solutions beyond print.
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