Datamark Systems Group Inc.
TSX : DMK

Datamark Systems Group Inc.

August 11, 2005 17:15 ET

Datamark Systems Group Inc. Announces Results for the Second Quarter and Six Months Ended June 30, 2005.

MONTREAL, QUEBEC--(CCNMatthews - Aug. 11, 2005) - Datamark Systems Group Inc. (TSX:DMK) Consolidated sales for the second quarter ended June 30, 2005 were $28,131,000, a decrease of 2.6% from $28,883,000 for the period ended June 30, 2004. This reflects increased sales of commercial printing and labels offset by lower sales of traditional business forms and of carbonized airline tickets. Consolidated sales for the six months ended June 30, 2005 were $56,133,000, a decrease of 1.4% from $56,944,000 for the six months ended June 30, 2004.

Cost of sales for the second quarter of 2005 totalled $20,131,000 compared to $20,763,000 in the second quarter of last year. Gross margin increased to 28.4% of sales from 28.1% in the 2004 quarter, mainly reflecting ongoing efforts to reduce operating costs. The cost of sales for the six months ended June 30, 2005 decreased to $39,834,000 or 71.0% of sales, compared to $41,043,000 or 72.1% of sales, for the same period last year. Gross margin for the six-month period was 29.0% of sales compared to 27.9% for six-month period of last year.

Net earnings for the second quarter of 2005 were $685,000 ($0.06 basic earnings per share) compared to $742,000 ($0.06 basic earnings per share) for the same period last year. Net earnings for the six months ended June 30, 2005 were $1,519,000 ($0.12 basic earnings per share) compared to $1,275,000 ($0.10 basic earnings per share) for the first six months of the previous year.

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 income trust 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
    President
    (450) 663-7878, ext.410