D+H Announces Fourth Quarter and Full Year 2016 Earnings

TORONTO, March 7, 2017 /CNW/ - DH Corporation (TSX:DH) ("D+H" or the "Company"), a leading provider of technology solutions to domestic and global financial institutions, reported its financial results for the three months and year ended December 31, 2016.

Fourth Quarter Highlights:

  • Performance at the mid to upper end of our guidance
     
  • Revenues up 0.4%, to $425.8 million from $424.1 million and Adjusted revenues down 2.6%, to $426.5 million from $437.7 million
     
  • EBITDA up 6.7%, to $124.7 million from $116.8 million and Adjusted EBITDA down 19.6%, to $120.8 million from $150.1 million
     
  • Goodwill impairment of $70.5 million in GTBS segment and a $50.5 million reclassification of forward FX hedge loss for a total of $121.0 million
     
  • Net cash from operating activities up 4.9% to $100.9 million
     
  • Debt repayments of $31 million

 

"Our results were in line with our expectations and the outlook we provided along with our third quarter results, with adjusted revenue coming in at the upper end of our guidance and adjusted EBITDA at the midpoint", said Gerrard Schmid, Chief Executive Officer of DH Corporation.

He went on to add "Specifically, our results reflect strength in both U.S. and Canadian Lending and a return to historical declination patterns in cheque volumes in Canada. GTBS performed below its historic growth profile and also faced a more difficult comparison to strong results in last year's fourth quarter.  Accordingly we recognized a goodwill impairment on this segment. However, recent performance does not alter our view of the long term growth potential within GTBS and we remain encouraged by several positive attributes of the business. In aggregate we are pleased with the net cash that we generate across D+H, that has supported our ongoing investments in the company as well as our dividend and debt repayments".

Fourth Quarter and Full Year 2016 Financial Results:

  • Revenues increased 0.4% in the fourth quarter to $425.8 million from $424.1 million in the same quarter in the prior year. Revenues increased due to growth in our Canadian segment revenues with growth in our lending solutions offset by a decrease in our payments solutions, lower revenues in our Global Transaction Banking Solutions ("GTBS") segment and in Lending and Integrated Core ("L&IC") revenues were consistent relative to the prior year with growth in lending solutions offset by a decrease in our integrated core solutions.
     
  • For the full year, revenues increased 11.5% to $1,679.9 million from $1,506.6 million in 2015 primarily due to the full year inclusion of the GTBS segment acquired April 30, 2015, growth in our Canadian segment lending solutions partially offset by a decrease in our payments solutions, and growth in our L&IC segment with increases in our integrated core solutions, partially offset by a decrease in our lending solutions.
     
  • Adjusted revenues(1) in the fourth quarter decreased 2.6% to $426.5 million from $437.7 million in the prior year period. For the full year, adjusted revenues increased 10.2% to $1,684.4 million from $1,528.2 million over 2015. Changes to the fourth quarter and year are consistent with the revenues for the quarter and year discussed above.
     
  • Income from operating activities before depreciation and amortization ("EBITDA")(1) in the fourth quarter increased 6.7%, to $124.7 million from $ 116.8 million in the prior year period. The increase in EBITDA was primarily due to lower acquisition-related and integration costs, global delivery initiatives that were incurred in the fourth quarter of 2015 and did not recur in the fourth quarter of 2016, changes in non-cash foreign exchange gains, and to a lesser extent by an increase in Canadian segment revenues. The growth in EBITDA was partially offset by increased professional and consulting fees, increased direct costs in our Canada and L&IC segments and unfavourable exchange rate variances over the prior year comparable period on certain accounts on our balance sheet.
     
  • EBITDA for the year ended 2016 of $418.5 million decreased by $6.2 million, or 1.4%, primarily due to lower revenue in L&IC lending solutions due to the LaserPro renewal cycle, increased direct expenses and increased costs associated with product development and risk initiatives. The decrease in EBITDA was further impacted by a decline in our Canadian segment cheque business, reduced revenues in our GTBS cash management business and increased corporate infrastructure investments. The decline in EBITDA was partially offset by the full year inclusion of our GTBS segment results in 2016 and, to a lesser extent, the strengthening of the U.S. dollar.
     
  • Adjusted EBITDA(1) in the fourth quarter decreased 19.6% to $120.8 million (28.3% margin), from $150.1 million (34.3% margin) in the same prior year period. The decrease is primarily attributable to reduced revenues in our GTBS segment, increased professional and consulting fees in GTBS, reduced integrated core revenues and increased direct costs in our L&IC segment, and unfavourable exchange rate variances on certain amounts in our balance sheet.
     
  • Our full year 2016 Adjusted EBITDA decreased 5.2% to $449.9 million (26.7% margin), from $474.7 million (31.1% margin) in the prior year. The decrease is primarily attributable to lower revenue in L&IC lending solutions due to the LaserPro renewal cycle and increased costs associated with rationalization, product development, and risk initiatives within the GTBS segment. Adjusted EBITDA was also impacted by a decline in our Canadian segment cheque business due to lower cheque revenues partially offset by growth in our lending solutions, reduced revenues in our GTBS cash management business and increased corporate infrastructure investments. The decline in Adjusted EBITDA was partially offset by the full year inclusion of our GTBS segment results in 2016 and, to a lesser extent, the strengthening of the U.S. dollar.
     
  • In the fourth quarter of 2016, the Company recognized an impairment of goodwill of $121.0 million, comprised of $70.5million of impairment on goodwill in the GTBS segment and $50.6 million related to the reclassification from OCI to net (loss) income of losses incurred on forward foreign exchange contracts established at the time of the Fundtech acquisition to hedge the foreign currency exposure associated with the USD purchase price. We also recognized an impairment loss of $16.2 million related to our acquired intangible assets in our cash management business. The impairment loss was driven by a year-over-year reduction in cash flows originating from the elongation of the sales cycle for our payment hub technologies and from the repositioning of our cash management business, coupled with varying market related assumptions used in the goodwill valuation analysis. This charge does not impact management's view of our market competitiveness and the long term growth potential within GTBS.
     
  • Consolidated net loss of $94.4 million (loss of $0.88 per share, diluted) in the fourth quarter decreased from net income of $13.3 million ($0.13 per share, diluted) in the prior year period, primarily due to an impairment on goodwill and an impairment on intangible assets. These decreases were partially offset by an increase in income tax recovery, an increase in EBITDA, and a decrease in finance expense.
     
  • Consolidated net loss of $67.7 million (loss of $0.63 per share, diluted) for the full year 2016 decreased from net income of $84.0 million ($0.84 per share, diluted) in the prior year period, primarily due to an impairment of goodwill and an increase in impairment on intangible assets, an increase in finance expense, and a decline in EBITDA. These decreases were partially offset by an increase in income tax recovery.
     
  • Adjusted net income(1) decreased to $57.0 million in the fourth quarter from $82.7 million in the same period in the prior year.
     
  • Adjusted net income per share, diluted(1) was $0.53 in the fourth quarter compared to $0.78 in the same period in the prior year.
     
  • Adjusted net income per share, diluted(1) was $2.01 for the full year compared to $2.55 in the same period in the prior year.
     
  • Net cash from operating activities increased by 4.9% in the fourth quarter, to $100.9 million from $96.1 million in the same period in prior year. Adjusted net cash from operating activities(1) decreased by 11.0% in the fourth quarter, to $100.0 million from $112.4 million in the same prior year period.
     
  • Net cash from operating activities increased by 32.6% for the full year, to $293.5 million from $221.4 million in the same in the prior year. Adjusted net cash from operating activities(1) increased by 17.2% for the full year, to $330.8 million from $282.2 million in the prior year.
     
  • Loans, borrowings and convertible debentures totalled $1.9 billion at December 31, 2016 compared to $2.1 billion at December 31, 2015. The Company repaid $31.0 million of debt during the fourth quarter of 2016 and a total of $131.0 million since the acquisition of Fundtech.
     
  • The Total Net Funded Debt to EBITDA(1) ratio was 3.276x at December 31, 2016, compared to 3.451x following the closing of the acquisition of Fundtech on April 30, 2015, and 3.185x at December 31, 2015. In the fourth quarter of 2016, the Company renegotiated debt covenants to extend the timing of the step down in the net debt to EBITDA covenant requirement.
     
  • During the fourth quarter of 2016, the Company announced a reduction of its quarterly dividend from $0.32 per share to $0.12 per share, effective January 1, 2017, which is consistent with the ongoing strategic transformation of D+H into a leading FinTech company.

 

Fourth Quarter and Full Year 2016 Results

The selected financial information included in this press release is qualified in its entirety by and should be read together with the audited consolidated financial statements for the year ended December 31, 2016 and the Management's Discussion and Analysis ("MD&A") for the three months and  year ended December 31, 2016, which can be found at dh.com and in the disclosure documents filed by the Company with the securities regulatory authorities at sedar.com.

Selected Consolidated Financial Information 2

Three months ended December 31

Year ended December 31

(C$ millions unless otherwise indicated, unaudited)

2016

2015

2016

2015

Revenues

       

Revenues

$

425.8

$

424.1

$

1,679.9

$

1,506.6

 

Add: Acquisition accounting adjustments

0.7

13.6

4.6

21.6

Adjusted revenues1

$

426.5

$

437.7

$

1,684.5

$

1,528.2

EBITDA1

       

EBITDA1

$

124.7

$

116.8

$

418.5

$

424.7

 

Add: Acquisition accounting adjustments

(0.8)

10.8

(2.9)

11.0

 

Add: Acquisition-related and other charges

(0.3)

16.3

3.1

60.8

 

Add: Realignment of global operations and related restructuring expenses

(0.6)

34.2

 

Add: Foreign exchange (gain) loss

(2.3)

6.2

(3.0)

(21.8)

Adjusted EBITDA1

$

120.8

$

150.1

$

449.9

$

474.7

Adjusted EBITDA margin1

28.3%

34.3%

26.7%

31.1%

Net (loss) income

       

Net (loss) income

$

(94.4)

$

13.3

$

(67.7)

$

84.0

 

Add: Non-cash items

54.1

75.4

218.0

190.3

 

(Less) add: Acquisition-related and other charges

(0.3)

16.3

3.1

60.8

 

(Less) add: Realignment of global operations and related restructuring expenses, including depreciation and amortization

(0.6)

34.4

 

Add: Impairment of intangible assets

16.4

6.3

16.4

6.3

 

Add: Impairment of goodwill5

121.0

121.0

 

Add: Tax effect of above adjustments

(39.2)

(28.6)

(111.1)

(86.5)

Adjusted net income1

$

57.0

$

82.7

$

214.1

$

254.9

Net (loss) income per share, diluted (C$)

$

(0.88)

$

0.13

$

(0.63)

$

0.84

Adjusted net income per share, diluted1 (C$)

$

0.53

$

0.78

$

2.01

$

2.55

Liquidity

       

Net cash from operating activities

$

100.9

$

96.1

$

293.5

$

221.4

 

(Less) add: Acquisition-related and other charges

(0.3)

16.3

3.1

60.8

 

(Less) add: Realignment of global operations and related restructuring expenses

(0.6)

34.2

Adjusted net cash from operating activities1

$

100.0

$

112.4

$

330.8

$

282.2

Uses of Adjusted net cash from operating activities1:

       
 

Capital expenditures

(26.5)

(27.7)

(96.0)

(103.3)

 

Cash Dividends

(34.2)

(24.7)

(125.8)

(93.9)

Adjusted net cash from operating activities after capital expenditures and cash dividends1

$

39.3

$

60.0

$

109.0

$

85.0

 

Net debt repayment

(31.0)

(30.0)

(81.0)

(156.5)

Adjusted net cash from (used in) operating activities after capital expenditures, cash dividends and net debt repayment1

$

8.3

$

30.0

$

28.0

$

(71.5)

 

Adjusted revenue by type for the three months ended and year ended December 31, 2016 and 2015.

Adjusted revenues by type 1, 2

           

(In thousands of dollars, unless otherwise noted)

Three months ended December 31

Year ended December 31

 

2016

 

2015

 

$ Change

% Change

2016

 

2015

 

$ Change

% Change

SaaS

$

108,241

 

25%

$

104,887

24%

$

3,354

3.2%

$

427,379

25%

$

363,230

24%

$

64,149

17.7%

Software Licenses (Perpetual and Term)

49,548

 

12%

55,653

13%

(6,105)

(11.0)%

161,071

10%

172,031

11%

(10,960)

(6.4)%

Maintenance

57,897

 

14%

61,253

14%

(3,356)

(5.5)%

233,391

14%

201,444

13%

31,947

15.9%

Professional Services

45,439

 

11%

49,993

11%

(4,554)

(9.1)%

179,389

11%

139,372

9%

40,017

28.7%

Transaction Processing Services

83,306

 

20%

79,693

18%

3,613

4.5%

337,620

20%

307,529

20%

30,091

9.8%

Canadian Payments Products/Solutions

76,751

 

18%

79,326

18%

(2,575)

(3.2)%

314,632

19%

316,689

21%

(2,057)

(0.6)%

Other 4

5,286

 

1%

6,904

2%

(1,618)

(23.4)%

30,955

2%

27,870

2%

3,085

11.1%

Total

$

426,468

 

100%

$

437,709

100%

$

(11,241)

(2.6)%

$

1,684,437

100%

$

1,528,165

100%

$

156,272

10.2%

 

Revenues and Adjusted revenues by service area for the three months ended and year ended December 31, 2016 and 2015.

Revenues and Adjusted revenues by Service Area1,2

Three months ended December 31

 

Year ended December 31

 

(C$ millions unaudited)

2016

 

2015

 

2016

 

2015

 

Revenues by service area

               

Lending solutions

$

190.3

 

$

183.4

 

$

714.5

 

$

688.8

 

Global transaction banking solutions

88.7

 

89.3

 

363.7

 

232.3

 

Payments solutions

76.8

 

79.3

 

314.6

 

316.7

 

Integrated core solutions

70.0

 

72.1

 

287.0

 

268.9

 

Total revenues

$

425.8

 

$

424.1

 

$

1,679.9

 

$

1,506.6

 

Adjusted revenues1 by service area

       

Lending solutions

$

190.9

 

$

184.3

 

$

717.1

 

$

693.3

 

Global transaction banking solutions

88.7

 

101.9

 

365.1

 

248.8

 

Payments solutions

76.8

 

79.3

 

314.6

 

316.7

 

Integrated core solutions

70.1

 

72.2

 

287.6

 

269.4

 

Total Adjusted revenues1

$

426.5

 

$

437.7

 

$

1,684.4

 

$

1,528.2

 

 

Results by segment for the three months ended and year ended December 31, 2016 and 2015.

Results by Segment 2

       

Three months ended December 31

(C$ millions unless otherwise
indicated, unaudited)

GTBS

L&IC

Canada

Corporate

Consolidated

 

2016

 

2015

 

2016

 

2015

 

2016

 

2015

 

2016

 

2015

 

2016

 

2015

 

Revenues

$

88.7

 

$

89.3

 

$

162.5

 

$

162.4

 

$

174.6

 

$

172.4

 

 

 

$

425.8

 

$

424.1

 

Expenses

74.5

 

65.6

 

101.5

 

95.8

 

128.2

 

123.4

 

$

(3.1)

 

$

22.5

 

$

301.1

 

$

307.3

 

EBITDA1

$

14.2

 

$

23.7

 

$

61.0

 

$

66.6

 

$

46.4

 

$

49.0

 

$

3.1

 

$

(22.5)

 

$

124.7

 

$

116.8

 

EBITDA margin1

16.0%

 

26.6%

 

37.5%

 

41.0%

 

26.6%

 

28.4%

 

 

 

29.3%

 

27.5%

 

Adjusted revenues1

$

88.7

 

$

101.9

 

$

163.2

 

$

163.5

 

$

174.6

 

$

172.4

 

 

 

$

426.5

 

$

437.8

 

Adjusted EBITDA1

$

14.2

 

$

35.6

 

$

60.2

 

$

65.6

 

$

46.5

 

$

49.0

 

 

 

$

120.9

 

$

150.2

 

Adjusted EBITDA margin1

16.0%

 

34.9%

 

36.9%

 

40.1%

 

26.6%

 

28.4%

 

 

 

28.3%

 

34.3%

 

 

 

Results by Segment 2

         

Year ended December 31

(C$ millions unless otherwise
indicated, unaudited)

GTBS

L&IC

Canada

Corporate

Consolidated

 

2016

 

2015

 

2016

 

2015

 

2016

 

2015

 

2016

 

2015

 

2016

 

2015

 

Revenues

$

363.7

 

$

232.3

 

$

604.4

 

$

590.6

 

$

711.7

 

$

683.7

 

 

 

$

1,679.9

 

$

1,506.6

 

Expenses

294.0

 

178.5

 

408.6

 

369.2

 

524.4

 

495.2

 

$

34.3

 

$

39.0

 

$

1,261.3

 

$

1,081.9

 

EBITDA1

$

69.7

 

$

53.8

 

$

195.8

 

$

221.4

 

$

187.3

 

$

188.5

 

$

(34.3)

 

$

(39.0)

 

$

418.6

 

$

424.7

 

EBITDA margin1

19.2%

 

23.2%

 

32.4%

 

37.5%

 

26.3%

 

27.6%

 

 

 

24.9%

 

28.2%

 

Adjusted revenues1

$

365.1

 

$

248.8

 

$

607.6

 

$

595.7

 

$

711.7

 

$

683.7

 

 

 

$

1,684.4

 

$

1,528.2

 

Adjusted EBITDA1

$

70.2

 

$

68.5

 

$

192.4

 

$

217.7

 

$

187.3

 

$

188.5

 

 

 

$

449.9

 

$

474.7

 

Adjusted EBITDA margin1

19.2%

 

27.5%

 

31.7%

 

36.5%

 

26.3%

 

27.6%

 

 

 

26.7%

 

31.1%

 

 

Segment results in U.S. dollars for the three months ended and year ended December 31, 2016 and 2015.

Revenues, Adjusted revenues1 and Adjusted EBITDA1

by Segment in U.S. dollars 2

Three months ended December 31

Year ended December 31

(US$ millions except where noted, unaudited)

2016

2015

2016

2015

GTBS Segment Revenues, Adjusted revenues1 and Adjusted EBITDA1

       
 

GTBS Segment revenues 3

$

66.5

 

$

66.8

 

$

275.0

 

$

178.6

 
 

GTBS Segment Adjusted revenues 1,3

$

66.5

 

$

76.0

 

$

276.0

 

$

190.9

 
 

GTBS Segment Adjusted EBITDA 1,3

$

10.7

 

$

26.2

 

$

53.4

 

$

51.9

 
 

GTBS Segment Adjusted EBITDA margin 1,3

16.0%

 

34.5%

 

19.3%

 

27.2%

 

L&IC Segment revenues

       
 

Lending solutions

$

69.3

 

$

67.4

 

$

239.6

 

$

250.9

 
 

Integrated core solutions

52.5

 

54.0

 

216.8

 

210.1

 
 

Total L&IC Segment revenues

$

121.8

 

$

121.4

 

$

456.4

 

$

461.0

 

L&IC Segment Adjusted revenues1 and Adjusted EBITDA1

       
 

Lending solutions

$

69.7

 

$

68.1

 

$

241.6

 

$

254.5

 
 

Integrated core solutions

52.6

 

54.1

 

217.2

 

210.5

 
 

Total L&IC Segment Adjusted revenues1

$

122.3

 

$

122.2

 

$

458.8

 

$

465.0

 

L&IC Segment Adjusted EBITDA 1

$

45.1

 

$

48.8

 

$

145.4

 

$

169.1

 

L&IC Segment Adjusted EBITDA margin 1

36.9%

 

39.9%

 

31.7%

 

36.4%

 

1. Non-IFRS measure. See the "Use of Non-IFRS Financial Information" section of this press release for further details.

2. Totals may not add due to rounding.

3. Reported results for GTBS for the year ended December 31, 2015 begin as of closing of the acquisition of Fundtech on April 30, 2015 and include the period from April 30, 2015 through December 31, 2015.

4. Other includes hardware sales, conference revenues and other billable costs.

5. Includes $50.6 million related to the reclassification of settlement loss on forward contracts, relating to the acquisition of Fundtech, from OCI to net (loss) income.

 

Dividend

DH Corporation today announced that its Board of Directors has declared a quarterly dividend of $0.12 per common share payable on March 31, 2017 to shareholders of record at the close of business on March 24, 2017. The dividend is an eligible dividend for Canadian income tax purposes.

Outlook

Refer to section 3 of the MD&A for the year ended December 31, 2016, dated March 7, 2017 for management's strategy and outlook.

Formation of Board Special Committee and 2017 Guidance

In December 2016, we acknowledged that a process has been established by our Board of Directors, including the formation of a Special Committee of independent Directors, to address expressions of interest from certain third parties to acquire DH. There can be no assurances that any transaction will result from this process. The Special Committee has retained professional advisors to assist in this effort. DH does not intend to comment further on these or other discussions unless a definitive agreement is reached with any third party or unless otherwise required by law.

As a result of the above mentioned process, the Company is currently not intending to provide specific financial guidance for fiscal 2017 until this process is complete, at which time it will assess whether financial guidance is warranted. Note that the Company will be reporting its 2017 results in its new segments in the first quarter report of 2017 along with segment revenue and EBITDA margin outlook.

MANAGEMENT CONFERENCE CALL AND WEBCAST

Teleconference:

A conference call to review these financial results, including a presentation, will take place at 8:30 a.m. (EDT) on Wednesday, March 8, 2017 hosted by Chief Executive Officer Gerrard Schmid and Chief Financial Officer Karen H. Weaver. To access the call, please dial 647-427-7450 (Local/Int'l) or 1-888-231-8191 (toll-free within North America). A replay of the call will also be available until March 15, 2017 by dialing 416-849-0833 (Local/Int'l) or 1-855-859-2056 (toll-free within North America), with Encore Password 52635296.

Webcast:

The conference call will also be webcast at http://event.on24.com/r.htm?e=1348212&s=1&k=FE02A3716973A8C89DF4DA6A21EDC67E and will be archived for 90 days after the call. The link to the webcast and an accompanying slide presentation will be posted in the Investors section of the D+H website under Events and Presentations at http://www.dh.com/investors/investor-events.

ABOUT D+H

D+H (TSX: DH) is a leading financial technology provider that the world's financial institutions rely on every day to help them grow and succeed. Our global payments, lending and financial solutions are trusted by nearly 8,000 banks, specialty lenders, community

banks, credit unions, governments and corporations. Headquartered in Toronto, Canada, D+H has more than 5,500 employees worldwide who are passionate about partnering with clients to create forward-thinking solutions that fit their needs. With annual revenues in excess of $1.5 billion, D+H is recognized as one of the world's top FinTech companies on IDC Financial Insights FinTech Rankings and American Banker's FinTech Forward rankings. For more information, visit dh.com

USE OF NON-IFRS FINANCIAL INFORMATION

D+H's financial results are prepared in accordance with International Financial Reporting Standards ("IFRS"). D+H reports several non-IFRS financial measures, including "Adjusted revenues", "Bookings", "Constant Currency", "Proforma Adjusted Revenues", "EBITDA", "EBITDA margin" (EBITDA divided by revenues), "Adjusted EBITDA", "Adjusted EBITDA margin" (Adjusted EBITDA divided by Adjusted revenues), "Adjusted net income", "Adjusted net income per share (diluted)" and "Adjusted net cash from operating activities". D+H also reports "Debt to EBITDA ratio", which is also not a defined term under IFRS. See "Non-IFRS financial measures and key performance indicators" in D+H's MD&A for the three months and year ended December 31, 2016 for a more complete description of these terms and for reconciliations to their most directly comparable IFRS measure, where applicable. Any non-IFRS financial measures should be considered in context with the IFRS financial statement presentation and should not be considered in isolation or as a substitute for IFRS revenues, net income or cash flows. Furthermore, D+H's financial measures may be calculated differently from similarly titled financial measures of other companies.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This press release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"), including without limitations, the statements contained in section entitled "Objectives, strategy and outlook". Statements concerning D+H's objectives, goals, strategies, priorities, intentions, plans, beliefs, expectations and estimates, and the business, operations, financial performance and condition of D+H are forward-looking statements. The words "believe", "expect", "anticipate", "estimate", "intend", "may", "will", "would", "could", "should", "continue", "goal", "objective", and similar expressions and the negative of such expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words.

Certain material factors and assumptions were applied in providing these forward-looking statements. Forward-looking information involves numerous assumptions including projections, completion of bookings, successful project implementation, operating expense levels, volumes and values for products and transaction processing services in the Canadian segment and implementation of our global operating realignment. Projections maybe impacted by macroeconomic factors, changes in the value of the Canadian and U.S. dollar relative to other currencies, the timing of client decisioning on technology investments, the pace of implementation of technology by the customer, in addition to other factors not controllable by the Company. D+H has also made certain macroeconomic and general industry assumptions in the preparation of such forward-looking statements. Management believes that the expectations reflected in forward-looking statements are based upon reasonable assumptions; however, Management can give no assurance that actual results will be consistent with these forward-looking statements. Not all factors which affect our forward-looking information are known, and actual results may vary from the projected results in a material respect, and may be above or below the forward-looking information presented in a material respect.

A comprehensive discussion of the risks that impact D+H can be found on the Company's most recently filed Annual Information Form and the most recently filed annual MD&A for the year ended December 31, 2016, available on SEDAR at www.sedar.com.

D+H does not undertake any obligation to update forward-looking statements should the factors and assumptions related its plans, estimates, projections, beliefs and opinions, including those listed above, change except as required by applicable securities laws.

All of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, the Company.

REGULATORY FILINGS AND ADDITIONAL INFORMATION

DH Corporation is listed on the Toronto Stock Exchange under the symbol DH. Further information can be found at dh.com and in the disclosure documents filed by DH Corporation with the securities regulatory authorities at sedar.com.

SOURCE DH Corporation