Datamark Systems Group Inc.

Datamark Systems Group Inc.

May 12, 2005 16:37 ET

Datamark Systems Group Inc. Announces Results for the First Quarter Ended March 31, 2005

MONTREAL, QUEBEC--(CCNMatthews - May 12, 2005) - Datamark Systems Group Inc. (TSX:DMK) All amounts are expressed in Canadian dollars.

Consolidated sales for the first quarter ended March 31, 2005 were $28,002,000, compared to $28,061,000 for the first quarter of 2004. Although sales for the first quarter of 2005 were similar to the same period of last year, the sales mix was favourable with more revenues derived from commercial printing and labels and less from traditional business forms. Sales for the first quarter of 2005 benefited from the purchase and installation of a six-colour press in the second half of 2004.

Cost of sales decreased by 2.8% to $19,704,000 compared to $20,280,000 for the first quarter of last year. The decrease in cost of sales reflects ongoing efforts to reduce operating costs in order to maintain margins in a price competitive market. As a result of the improved sales mix and cost control, gross profit increased to $8,298,000 or 29.6% of sales for the first quarter of 2005 compared to $7,781,000 or 27.7% of sales for the same period last year.

Net earnings increased by 56% to $834,000 from $533,000. Basic earnings per share increased to $0.07 per share from $0.04.

Datamark previously announced that it is exploring a reorganization of Datamark into an income trust. Datamark is also exploring other options that will maximize shareholder value. Management is continuing to evaluate a possible conversion. There can be no assurance that a conversion transaction will occur.

Datamark Systems Group Inc. is dedicated to providing efficient and innovative document Management solutions. The company's operating divisions and subsidiaries, Datamark Systems, Proforms and Les Impressions Intra-Media Inc. provide a full range of products and services including forms, labels, airline products and short and long run commercial printing. Document management services encompass warehousing and distribution as well as customized inventory and cost reporting. Datamark Systems Group Inc.'s plants and distribution centers are in Quebec, Ontario, Manitoba and Alberta. Datamark Systems Group Inc. is listed on the Toronto stock Exchange under the symbol DMK.

Contact Information

  • Datamark Systems Group Inc.
    Jeffrey Zunenshine
    (450) 663-7878, Ext.410