The Data Group Income Fund announces full year and fourth quarter results for 2006



    HIGHLIGHTS
    ----------

    
    -   Q4 Revenues of $108.8 million, Q4 Gross Profit of $27.3 million and
        Q4 Net Income of $4.3 million
    -   Full Year Revenues of $286.7 million, Full Year Gross Profit of
        $75.0 million and Full Year Net Income of $27.9 million (including
        future income tax recovery of $16.2 million)
    -   Q4 Distributable Cash of $8.3 million or $0.354 per unit and Cash
        Distributions of $6.8 million or $0.290 per unit
    -   Full Year Distributable Cash of $24.5 million or $1.326 per unit and
        Cash Distributions of $21.4 million or $1.159 per unit
    -   Q4 Adjusted EBITDA of $13.2 million
    -   Full Year Adjusted EBITDA of $33.1 million
    

    BRAMPTON, ON, March 8 /CNW/ - The DATA Group Income Fund (TSX: DGI.UN)
("the Fund") today announced financial and operating results for the full year
and fourth quarter ended December 31, 2006.
    The Fund, directly and indirectly, owns all of the outstanding
partnership units of The Data Group Limited Partnership (the "Data Group") and
all of the outstanding shares of the Data Group's general partner, Data
Business Forms Limited. The Data Group is a leading provider of total document
management solutions, including printed products, and operates as three
divisions. DATA East and West (which provided approximately 83% of total
revenue in calendar year 2006) sells a broad range of printed products and
document management services directly to end users. Sundog (which provided
approximately 9% of total revenue in calendar year 2006) is a commercial
printer specializing in the production of high-quality annual reports,
marketing materials and event tickets. Multiple Pakfold (which provided
approximately 8% of total revenue in calendar year 2006) sells forms and
labels to independent brokers and resellers.
    "We enjoyed a solid quarter with increases in revenue and Adjusted EBITDA
due to the acquisition of Relizon Canada in the third quarter of 2006.
Overall, 2006 was a year of significant achievements for the Data Group.
Thanks to the support of our customers and employees we continued to meet our
objectives of increasing cash available for distribution to our unitholders,"
said David Odell, President and Chief Executive Officer.

    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 the Fund, Data Business Forms Limited ("DBFL") and/or its
successor, the Data Group, 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,
the 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 the
Fund's current views regarding future events and operating performance, are
based on information currently available to the Fund, 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 or achievements of
the Fund and the Data Group to be materially different from any future
results, performance or achievements that may be expressed or implied by such
forward-looking statements. The principal assumptions that the Fund made in
the preparation of these forward-looking statements include the ability of
management to achieve approximately $7.0 million per annum in pre-tax
operating and other synergies and cost savings, and other benefits expected to
be realized, and the timing and net present value thereof, based on the
achievement of operational efficiencies from restructuring, integration and
other initiatives relating to the combination of the respective businesses
previously carried on by DBFL and Relizon Canada Inc. ("Relizon Canada"); the
accuracy of estimated synergies in respect of expected cash flows, cost
savings and profitability from the combination of the DBFL and Relizon Canada
businesses; the risk that the DBFL and Relizon Canada businesses will not be
integrated successfully; the risk that any savings, growth prospects or other
synergies from the combination of those businesses will not be fully realized
or will take longer to realize than expected; competition from competitors
supplying similar products and services; the Data Group's ability to grow its
sales or even maintain historical levels of its sales of printed business
documents; increases in the costs of paper and other raw materials used by the
Data Group; the Data Group's ability to maintain relationships with its
customers; and the implementation of proposed changes to the income tax
treatment of certain income trusts, such as the Fund, announced on October 31,
2006, which will, if implemented, subject the Fund to tax commencing in 2011
(the "2006 Proposed Tax Changes"), and the effect of that announcement on the
trading price of the Fund's units. Additional factors are discussed under the
heading "Risks and Uncertainties" in this press release and in the Fund's
other publicly available disclosure documents, as filed by the Fund 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, the Fund does not
intend, and does not assume any obligation, to update these forward-looking
statements.

    Non-GAAP Measures

    This press release includes certain non-GAAP measures as supplementary
information. When used in this press release, "EBITDA" means earnings before
interest, taxes, depreciation and amortization, and "Adjusted EBITDA" means
EBITDA adjusted for non-cash inventory fair value allocation charges.
Management believes that, in addition to net income, EBITDA is a useful
supplemental measure in evaluating the performance of the Data Group and/or
the Fund, as it provides investors with an indication of cash available for
distribution (or distributable cash) prior to debt service, capital
expenditures and income taxes. Cash available for distribution (or
distributable cash) means Adjusted EBITDA increased by, or reduced for,
partnership conversion costs, gain (loss) on sale of fixed assets, cash
interest expense, maintenance capital expenditures, pension contributions in
excess of expense and cash income taxes. Specifically, management views cash
available for distribution as an operating performance measure, as it is a
measure generally used by Canadian income funds as an indicator of financial
performance. EBITDA, Adjusted EBITDA and cash available for distribution are
not earnings measures recognized by GAAP and do not have any standardized
meanings prescribed by GAAP. Therefore, EBITDA, Adjusted EBITDA and cash
available for distribution are unlikely to be comparable to similar measures
presented by other issuers.
    Investors are cautioned that EBITDA and Adjusted EBITDA should not be
construed as an alternative to net income or loss determined in accordance
with GAAP as indicators of the Data Group's or the Fund's performance or to
cash flows from operating, investing and financing activities as measures of
liquidity and cash flows. For a reconciliation of cash provided by (used in)
operating activities to Adjusted EBITDA to cash available for distribution,
see Table 3 below. If the calculation of cash available for distribution for
the period from January 1, 2006 to December 31, 2006 had included $4.0 million
of special pension contributions to the defined benefit pension plan of the
former Relizon Canada, the Fund's cash available for distribution for that
period would have decreased by $4.0 million or $0.170 per unit. If the
calculation of cash available for distribution for the period from
December 21, 2004 to December 31, 2005 had included pension contributions
funded from the Fund's initial public offering in December 2004, the Fund's
cash available for distribution for that period would have decreased by
approximately $5.0 million or $0.336 per unit.

    Recent Developments

    Relizon Canada Acquisition

    On August 31, 2006, the Fund acquired from The Relizon Company (the
"Relizon Canada Acquisition") all of the shares of Relizon Canada for a
purchase price of $141.0 million. The purchase price consisted of a cash
payment of $112.0 million and 2,964,328 trust units of the Fund. The Purchase
Price was adjusted down by $1.0 million based on the closing calculation of
the working capital of Relizon Canada.

    Reorganization

    On September 30, 2006, the Fund reorganized its structure to carry on in
a limited partnership (being the Data Group) the business previously carried
on by DBFL (the "Reorganization"). The purpose of the Reorganization was to
establish a "flow-through" organizational structure which will enable the Fund
to maximize cash available for distribution and provide a more flexible legal
and operating structure, including future expansion opportunities.

    
    Table 1   The following table sets out selected historical financial
              information for the periods noted. The results of operations of
              the Relizon Canada business are included for the period from
              August 31, 2006 to December 31, 2006.

                     Consolidated Financial Information
                     ----------------------------------
               For the periods ended December 31, 2006 and 2005
               ------------------------------------------------
                     (in thousands of dollars, unaudited)


                             Oct. 1    Oct. 1    Jan. 1    Jan. 1    Dec. 21,
                               to        to        to        to      2004 to
                             Dec. 31,  Dec. 31 , Dec. 31,  Dec. 31,  Dec. 31,
                              2006      2005      2006      2005      2005
                                $         $         $         $         $

    Revenues                 108,846    55,980   286,650   215,025   220,740
    Cost of revenues          81,530    40,024   211,633   159,175   164,188
                            --------- --------- --------- --------- ---------
    Gross profit              27,316    15,956    75,017    55,850    56,552

    Selling, general and
     administrative
     expenses                 18,587    10,231    51,754    39,767    40,867
    Integration costs            164         -       164         -         -
    Amortization               2,411     1,652     7,558     6,618     6,803
                            --------- --------- --------- --------- ---------
                              21,162    11,883    59,476    46,385    47,670
                            --------- --------- --------- --------- ---------
    Income before interest
     and income taxes          6,154     4,073    15,541     9,465     8,882
                            --------- --------- --------- --------- ---------

    Interest expense on
     long-term debt            1,817       573     3,865     2,044     2,126
                            --------- --------- --------- --------- ---------
    Income before income
     taxes                     4,337     3,500    11,676     7,421     6,756

    Future income tax
     recovery                      -      (116)  (16,215)   (2,545)   (2,745)
                            --------- --------- --------- --------- ---------

    Net income for the
     period                    4,337     3,616    27,891     9,966     9,501
                            --------- --------- --------- --------- ---------
                            --------- --------- --------- --------- ---------


    Table 2   The following table sets out selected historical financial
              information by business segment for the periods noted. The
              results of operations of the Relizon Canada business are
              included for the period from August 31, 2006 to December 31,
              2006.

                     Consolidated Financial Information
                     ----------------------------------
               For the periods ended December 31, 2006 and 2005
               ------------------------------------------------
       (in thousands of dollars, except percentage amounts, unaudited)


                                       Oct. 1    Oct. 1    Jan. 1    Jan. 1
                                         to        to        to        to
                                       Dec. 31,  Dec. 31,  Dec. 31,  Dec. 31,
                                        2006      2005      2006      2005
                                          $         $         $         $

    Revenues
      DATA East and West(1)             98,278    45,090   241,791   168,272
      Sundog                             6,029     5,868    26,299    25,484
      Multiple Pakfold                   5,711     5,787    23,198    25,139
      Intersegment                      (1,172)     (765)   (4,638)   (3,870)
                                      --------- --------- --------- ---------
                                       108,846    55,980   286,650   215,025
                                      --------- --------- --------- ---------

    Gross Profit
      DATA East and West                24,291    13,261    61,954    43,389
      Sundog                             1,953     1,776     9,154     8,524
      Multiple Pakfold                   1,072       919     3,909     3,937
                                      --------- --------- --------- ---------
                                        27,316    15,956    75,017    55,850
                                      --------- --------- --------- ---------

    Gross Profit, as a percentage
     of revenue
      DATA East and West                 24.7%     29.4%     25.6%     25.8%
      Sundog                             32.4%     30.3%     34.8%     34.4%
      Multiple Pakfold                   18.8%     15.9%     16.9%     15.7%
                                      --------- --------- --------- ---------
                                         25.1%     28.5%     26.2%     26.0%
                                      --------- --------- --------- ---------

    Selling, general and
     administrative expenses            18,588    10,231    51,754    39,767
                                      --------- --------- --------- ---------
      As a percentage of revenue         17.1%     18.3%     18.1%     18.5%
                                      --------- --------- --------- ---------
      Adjusted EBITDA                   13,213     6,469    33,111    25,018
                                      --------- --------- --------- ---------
      Adjusted EBITDA margin, as a
       percentage of revenue             12.1%     11.6%     11.6%     11.6%
                                      --------- --------- --------- ---------
      Net income                         4,337     3,616    27,891     9,966
                                      --------- --------- --------- ---------
                                      --------- --------- --------- ---------
    Note:
    (1) The results of operations of Relizon Canada are included for the
        period from August 31, 2006 to December 31, 2006.
    


    Results of Operations

    The DATA Group Income Fund

    Overview

    On August 31, 2006, the Fund acquired the shares of Relizon Canada. At
the time of the Relizon Canada Acquisition, both Relizon Canada and DBFL
operated primarily within the same market segments. Since the date of the
Relizon Canada Acquisition, the Data Group has been engaged in the integration
of the former Relizon Canada and DBFL businesses, with a view to achieving
operating and corporate synergies through the combination of those businesses.
On March 1, 2007, the Fund announced a restructuring plan designed to realize
on those synergies. See "Outlook". The following discussion and analysis
includes the results of operations of the former Relizon Canada business for
the period from August 31, 2006 to December 31, 2006. Those operations now
form part of the Data Group's DATA East and West division and represent the
principal reason for changes in the Fund's results of operations for 2006
compared to 2005.

    Revenues

    For the quarter ended December 31, 2006, the Fund recorded revenues of
$108.8 million, an increase of 94.4% or $52.9 million compared with the same
period in 2005. The revenue increase, before intersegment revenues, was
substantially the impact of a $52.3 million increase in the DATA East and West
segment resulting from the acquisition of Relizon Canada. For the year ended
December 31, 2006, the Fund recorded revenues of $286.7 million, an increase
of $71.6 million or 33.3% compared with the same period in 2005. The full year
increase, before intersegment revenues, is the net result of a $73.5 million
increase in the DATA East and West Segment (which includes the results of the
Relizon Canada business for the period from August 31, 2006 to December 31,
2006), a $0.8 million increase in the Sundog segment offset by a $1.9 million
decrease in the Multiple Pakfold segment. A more detailed discussion of the
results of operations of each of the Fund's reporting segments is set out
below.

    Cost of Revenues and Gross Profit

    For the quarter ended December 31, 2006, cost of revenues increased from
$40.0 million for the same period in 2005 to $81.5 million in 2006. This
resulted in a gross profit in the fourth quarter of 2006 of $27.3 million,
which represented an increase of $11.4 million or 71.2% from $16.0 million in
the fourth quarter of 2005. In the quarter, a charge of $2.4 million relating
to a portion of the fair market value allocated to the inventory acquired
pursuant to the Relizon Canada Acquisition (the "Relizon Inventory
Allocation"), increased cost of revenues and was allocated to the DATA East
and West segment. Cost of revenues, excluding the Relizon Inventory
Allocation, increased $39.1 million or 97.7% to $79.1 million. The increase
was a result of a $37.7 million increase in the DATA East and West segment
resulting substantially from the acquisition of Relizon Canada. This resulted
in a gross profit increase in the current quarter of $13.8 million to
$29.7 million from $16.0 million in the fourth quarter of 2005. The increase
in gross profit was attributable to a $13.5 million increase in the DATA East
and West segment resulting substantially from the acquisition of Relizon
Canada. As a percentage of revenue the gross profit, excluding the Relizon
Inventory Allocation, decreased to 27.3% from 28.5% in the same period in
2005.
    For the year ended December 31, 2006, cost of revenues increased from
$159.2 million for the same period in 2005 to $211.6 million in 2006. This
resulted in a gross profit for the year ended December 31, 2006 of
$75.0 million, which represented an increase of $19.2 million or 34.3% from
$55.8 million in the same period of 2005. The full year Relizon Inventory
Allocation increased cost of revenues in 2006 by $4.9 million. In 2005 a
$5.8 million charge relating to the fair value of inventory acquired pursuant
to the purchase of Data Business Forms Limited was recognized by the Fund (the
"DBFL Inventory Allocation"). Cost of revenues, excluding both fair value of
inventory allocations, increased $53.3 million or 34.7% to $206.7 million.
This resulted in a gross profit for the year ended December, 31 2006 of
$79.9 million which represented an increase of $18.3 million or 29.7% compared
to the prior year. As a percentage of revenue, before the 2006 and 2005
purchase accounting inventory fair value allocations, gross profit decreased
for the year ended December 31, 2006 to 27.9% from 28.7%.

    Selling, General and Administrative Expenses

    Selling, general and administrative ("SG&A") expenses, including
administrative expenses of the Fund, for the quarter ended December 31, 2006,
were $18.6 million as compared to $10.2 million in the same period of 2005.
Excluding the expenses incurred by the operations of the Relizon Canada
business, SG&A expenses were consistent with the comparative period. The SG&A
expenses were impacted by $0.7 million of moving expenses in the DATA East and
West segment from the move to a new Edmonton facility offset by $0.2 million
of reduced selling expenses and $0.5 million of reduced corporate expenses.
For the year ended December 31, 2006, SG&A expenses increased $12.0 million to
$51.8 million compared to $39.8 million in 2005. Excluding the expenses
incurred by the operations of the Relizon Canada business, SG&A expenses
increased $0.8 million or 2.1%. This increase was attributable to $0.6 million
of expenses in connection with the Reorganization, $0.7 million of moving
expenses in the DATA East and West segment from the move to a new Edmonton
facility offset by $0.5 million of reduced corporate expenses. The Data Group
has also incurred $0.2 million of integration costs in 2006 that are
attributable to severance expenses in the DATA East and West segment.

    Adjusted EBITDA

    For the quarter ended December 31, 2006, Adjusted EBITDA was
$13.2 million, or 12.1% of revenue. Adjusted EBITDA for the three months ended
December 31, 2006 increased $6.7 million or 104.3% from the same period in the
prior year and the Adjusted EBITDA margin for the three months ended
December 31, 2006, as a percentage of revenue, increased slightly from 11.6%
of revenue in 2005 to 12.1% of revenue in 2006. The increase was substantially
attributable to the acquisition of Relizon Canada. For the year ended
December 31, 2006, Adjusted EBITDA was $33.1 million or 11.6% of revenue. As
compared to 2005, Adjusted EBITDA for the year ended December 31, 2006
increased by $8.1 million and the Adjusted EBITDA margin for the year ended
December 31, 2006, as a percentage of revenue, was consistent at 11.6% of
revenue.

    Interest Expense

    Net interest expense on long-term debt relating to the Data Group's
credit facilities and the Convertible Debentures was $1.8 million for the
quarter ended December 31, 2006 compared to $0.6 million for the same period
in 2005. Net interest expense increased due to the additional interest expense
on the $30.0 million drawn under the Data Group's credit facilities and the
issuance of $35.0 million aggregate principal amount of Convertible
Debentures, in each case to fund the Relizon Canada Acquisition. For the year
ended December 31, 2006, net interest expense increased from $2.0 to
$3.9 million for the same reasons.
    Interest income of $0.1 million was earned during the quarter ended
December 31, 2006, consistent with the prior year. For the year ended
December 31, 2006, interest income of $0.4 million was earned, compared to
$0.2 million in 2005. This interest income was substantially related to the
cash and cash equivalents held by the Data Group.

    Income Taxes

    The Fund reported pre-tax income of $6.2 million and no tax expense for
the quarter ended December 31, 2006 and pre-tax income of $11.7 million and a
tax recovery of $16.2 million for the year ended December 31, 2006. The
recovery of future taxes arose from the reorganization of the legal structure
of the Fund described above under "Recent Developments - Reorganization" and
the reduction of substantively enacted tax rates for corporations in future
years, which received Royal Assent on June 22, 2006. Other than the
recognition of certain tax attributes that remain in DBFL, and subject to
proposed changes to the Income Tax Act (Canada) discussed below, the Data
Group and the Fund are no longer expected to pay income taxes and,
accordingly, do not recognize future income tax assets and liabilities on
temporary differences or recognize unused tax losses or credits relating to
the Data Group. On October 31, 2006, the Minister of Finance (Canada)
announced the 2006 Proposed Tax Changes which, if implemented, would subject
income trusts such as the Fund to tax at corporate rates on the taxable
portion of their distributions. These proposed changes would apply beginning
with the 2011 taxation year of the Fund. If the 2006 Proposed Tax Changes are
implemented in their current form, the Fund would expect to pay taxes
commencing in 2011 and will have to recognize future income tax assets and
liabilities on temporary differences to the extent they will reverse in 2011
and subsequent years. See "Outlook".

    Net Income

    Net income for the quarter ended December 31, 2006 was $4.4 million
compared to net income of $3.6 million for the quarter ended December 31,
2005.  For the year ended December 31, 2006 net income was $27.9 million
compared to $10.0 million in 2005.  The increase in comparable profitability
was due to the factors discussed above.

    DATA East and West

    This segment includes the operations of the Relizon Canada business for
the period from August 31, 2006 to December 31, 2006. For the quarter ended
December 31, 2006, revenue at the Data Group's DATA East and West segment
increased $53.2 million or 118.0% to $98.3 million from $45.1 million for the
same period in the prior year. For the year ended December 31, 2006, revenue
increased $73.5 million or 43.7% to $241.8 million from $168.3 million in
2005.
    The increase in revenue in the quarter and year is due to a number of
factors. The major factor for the increase is the acquisition of Relizon
Canada. Other factors affecting revenue continue to be increased sales of
lottery slips, variable imaging, laser cut sheets, offset by a decline in
direct mail and traditional business forms.
    Gross profit in the quarter ended December 31, 2006 increased
$11.0 million to $24.3 million from $13.3 million in the same period of 2005.
After adjusting for the Relizon Inventory Allocation, gross profit increased
$13.5 million to $26.7 million. The gross profit, adjusted for the Relizon
Inventory Allocation, as a percentage of revenue, declined to 27.2% in the
fourth quarter of 2006 from 29.4% for the same period in 2005. The decline in
gross profit percentage was due to lower margins in the Relizon Canada
business.
    For the year ended December 31, 2006, after adjusting for the purchase
accounting inventory fair value allocations as described above ($4.9 million
attributable to the Relizon Inventory Allocation and $5.8 million attributable
to the DBFL Inventory Allocation), gross profit increased 36.1% to
$66.9 million from $49.2 million in 2005. Gross profit, as a percentage of
revenue, before the 2006 and 2005 purchase accounting inventory fair value
allocations, declined to 27.7% from 29.2% in 2005. The decline in year to date
gross profit is consistent with the factors discussed for the current quarter.
    As part of the Fund's restructuring plan announced on March 1, 2007, the
Fund will close three of its plants located in Hemmingford, Quebec;
Orangeville, Ontario; and Medicine Hat, Alberta. These plant closures are
designed to reduce excess production capacity within the DATA East and West
division following the combination of the former Relizon Canada and DBFL
businesses. See "Outlook".

    Sundog

    Revenues at the Data Group's Sundog division for the quarter ended
December 31, 2006 increased 2.7% to $6.1 million from $5.9 million for the
same period in the prior year. For the year ended December 31, 2006, revenue
increased 3.2% to $26.3 million from $25.5 million in 2005. The increase in
revenue is due to continued demand for commercial printing in the Alberta
marketplace. For the calendar year, the revenue increase was due to increased
annual report production and commercial print orders offset by a major
customer rebranding that took place in the prior year that did not repeat in
2006.
    For the quarter ended December 31, 2006, gross profit increased 10.0% to
$2.0 million from $1.8 million in 2005. Gross profit as a percentage of
revenue increased to 32.4% from 30.3% in the comparable period of 2005. For
the year ended December 31, 2006, gross profit increased $0.6 million or 7.4%
to $9.2 million from $8.5 million in 2005. The overall increase in gross
profit was due to reduced material costs required in the product mix, reduced
spoilage levels and lower direct labour costs.

    Multiple Pakfold

    Revenue at the Data Group's Multiple Pakfold division for the quarter
ended December 31, 2006 declined 1.3% to $5.7 million from $5.8 million for
the same period in 2005. For the year ended December 31, 2006, revenue
declined 7.6% to $23.2 million from $25.1 million in 2005.
    The decrease in revenue in the quarter was due to the loss of third party
orders in circumstances where production for those orders was moved to the
United States. The decrease for the year was due to these same factors and to
the loss of a significant order from a third party as previously noted in the
Fund's third quarter 2006 management's discussion and analysis ("MD&A").
    For the quarter ended December 31, 2006, gross profit increased by 16.7%
from $0.9 million to $1.1 million for the same period in 2006. The gross
profit margin was 18.8% compared to 15.9% for the same period in 2005. For the
year ended December 31, 2006, gross profit was flat at $3.9 million in 2006
and in 2005. The gross profit margin for the year was 16.9% compared to 15.7%
in 2005. The improvement in gross margin percent, despite the loss of revenue,
is due to improved operating efficiencies as a result of product mix change.
    On March 1, 2007, the Fund announced that it will close its Dorval,
Quebec plant in order to reduce excess production capacity within its Multiple
Pakfold division and is designed to improve margins within this segment of the
Data Group's business. See "Outlook".


    
    Table 3   The following table sets out selected historical financial
              information for the periods noted. The results of operations of
              the Relizon Canada business are included for the period from
              August 31, 2006 to December 31, 2006.

             Cash Available for Distribution and Adjusted EBITDA
             ---------------------------------------------------
               For the periods ended December 31, 2006 and 2005
               ------------------------------------------------
        (in thousands of dollars, except per unit amounts, unaudited)


    Period ended                       Oct. 1    Oct. 1    Jan. 1    Dec. 21,
                                         to        to        to      2004 to
                                       Dec. 31,  Dec. 31,  Dec. 31,  Dec. 31,
                                        2006      2005      2006      2005
                                          $         $         $         $

    Cash provided by operating
     activities                         11,147     6,948    20,484    19,376
                                      --------- --------- --------- ---------
    Changes in non-cash working
     capital                            (4,488)   (1,064)   (2,123)   (7,948)
    Pension contribution in excess
     of expense                          2,461        89     6,383     5,989
    Amortization of deferred
     financing fees                       (191)      (76)     (452)     (314)
    (Loss) gain on disposal of fixed
     assets                                  4        (1)        3      (245)
    Other                                   42         -        33         -
    Interest expense                     1,817       573     3,865     2,126
    Non-cash inventory fair value
     allocation charges                  2,421         -     4,918     6,668
                                      --------- --------- --------- ---------
    Adjusted EBITDA                     13,213     6,469    33,111    25,652
                                      --------- --------- --------- ---------
    Add:
      Trust reorganization costs(1)          -         -       651         -
      Loss (gain) on disposal of
       fixed assets                         (4)        1        (3)      245
    Less:
      Cash interest expense(2)           1,536       497     3,325     1,812
      Maintenance capital
       expenditures(3)                   1,912     1,178     3,585     2,372
      Pension contributions in
       excess of expense(4)              1,461        89     2,383       989
      Cash income taxes(5)                   -         -         -         -
                                      --------- --------- --------- ---------
    Cash available for distribution(6)   8,300     4,706    24,466    20,724
                                      --------- --------- --------- ---------
    Distributions to Unitholders(7)      6,801     4,305    21,380    17,421
                                      --------- --------- --------- ---------
    Excess of cash available for
     distribution over actual
     distributions                       1,499       401     3,086     3,303
                                      --------- --------- --------- ---------
                                      --------- --------- --------- ---------
    Per unit(8)
    Cash available for distribution
     per unit(8)                         0.354     0.317     1.326     1.395
                                      --------- --------- --------- ---------
    Distributions to Unitholders
     per unit(8)(9)                      0.290     0.290     1.159     1.172
                                      --------- --------- --------- ---------
    Excess of cash available for
     distribution per unit over actual
     distributions per unit(8)           0.064     0.027     0.167     0.223
                                      --------- --------- --------- ---------
    Payout ratio                         81.9%     91.5%     87.4%     84.0%
                                      --------- --------- --------- ---------
    Notes:
    (1) Costs directly incurred to reorganize the organizational structure of
        the Fund into a 'flow-through entity' have been added back as they
        represent a one-time cost with expected future benefit to the Fund's
        Unitholders.
    (2) Cash interest expense is interest expense calculated in accordance
        with GAAP, less the interest cost associated with amortization of
        deferred finance fees, accretion of convertible debentures and
        unfavorable lease obligation.
    (3) Maintenance capital expenditures are additions, replacements or
        improvements to property, plant and equipment to maintain the Data
        Group's business operations. These expenditures involve the
        replacement of printing and digital equipment, computers and software
        and leasehold improvements.
    (4) Excludes special contributions to the Data Group's defined benefit
        pension plans of $1.0 million in the fourth quarter of 2006,
        $3.0 million made in the third quarter of 2006 and $5.0 million in
        2004 as these were funded from the proceeds raised for the Relizon
        Canada Acquisition and the Fund's initial public offering,
        respectively.
    (5) Cash income taxes are current income taxes calculated in accordance
        with GAAP.
    (6) Cash available for distribution has not been adjusted for changes in
        non-cash working capital so as to remove the impact of timing
        differences in cash receipts and cash disbursements, which generally
        reverse themselves but can vary significantly across quarters.
    (7) Distributions are in respect of the distributions declared.
    (8) Per unit calculations are based upon the number of units outstanding
        at the end of each month consistent with the number of units upon
        which distributions are declared and paid and not the weighted
        average number of units outstanding.
        For the three months ended December 31, 2006, 23,475,659 units were
        outstanding and 14,861,333 units were outstanding as at December 31,
        2005.
    (9) The Fund declared $0.8 million of distributions on the 8.6 million
        units issued on August 31, 2006, upon the exchange of subscription
        receipts for units of the Fund, for the month of August while no
        corresponding Adjusted EBITDA was earned by the Fund from the
        operations of the Relizon Canada business save the one business day
        of August 31, 2006.
    

    Outlook

    Management believes that the Fund will continue to meet its objectives,
continuing to meet its monthly per unit distributions to Unitholders of
$0.09656. The Fund's Board of Trustees does not currently anticipate
increasing distributions to Unitholders based on the contribution of the
Relizon Canada Acquisition, but will continue to monitor the Fund's cash
available for distributions and its payout ratio.
    As discussed in the Fund's MD&A of financial condition and results of
operations for the third quarter of 2006, management has developed a plan to
integrate and restructure the Relizon Canada business. On March 1, 2007, the
Fund announced a restructuring plan resulting in the closure of four plants,
the elimination of 121 jobs and the transfer of 99 jobs to other facilities.
The plants to be closed in the proposed restructuring are located in Dorval,
Quebec; Hemmingford, Quebec; Orangeville, Ontario; and Medicine Hat, Alberta.
The plants are scheduled to be closed during the third quarter of 2007. As a
result of this plan, the Data Group has recognized restructuring and
provisions relating to the planned termination of certain employees of the
acquired business and for other costs to exit or terminate specific leases and
contracts which the Data Group intends to modify or terminate. In addition to
the plan announced on March 1, management has completed other initiatives to
reduce management, sales and administration expenses. These restructuring and
related liabilities are based on contractual obligations and management's best
estimates and have been recognized as assumed liabilities in the preliminary
purchase price allocation as they were contemplated at the time of the Relizon
Canada Acquisition, and were therefore included in the underlying net
identifiable assets acquired. The Data Group will continue to review its
operations and undertake restructuring initiatives to maintain a competitive
cost structure. These initiatives may result in the consolidation of
facilities, and the Data Group may incur additional severance costs,
accelerated further depreciation expense, and impairment charges related to
property, plant and equipment and costs attributable to the termination of
contracts for leases, supplier arrangements and other contractual obligations.
The Fund believes that restructuring charges are likely to occur in 2007 as
the Data Group continues to rationalize sales and operations as a result of
the Relizon Canada Acquisition and other initiatives. Additional unanticipated
costs may also be incurred to integrate the Relizon Canada business. Any costs
relating to the closure of facilities leased by the Data Group prior to the
acquisition will be expensed as incurred.
    On October 31, 2006, the Canadian Government announced a "Tax Fairness
Plan" that would, among other things, create a new tax regime for publicly
traded income trusts including the Fund. Under the proposed rules, the taxable
portion of an income trust's distributions would be subject to taxation in a
manner similar to the treatment of taxable income within a corporation. For
existing income trusts, the new rules would not become applicable until 2011
provided they limit their expansion to "normal growth" prior to that year. On
December 15, 2006, the Government issued guidelines with respect to what it
would consider "normal growth" for existing income trusts that wish to ensure
that they don't become subject to the proposed tax rules until 2011. Under
these guidelines, the amount of equity units that an income trust can issue to
finance growth up to 2011 may not exceed the value of its publicly traded
equity units on October 31, 2006 (subject to annual limits). The guidelines do
not explicitly limit the amount of debt that an income trust can issue to fund
growth, although as a practical matter this will be constrained by credit
considerations and/or financial covenants.
    On December 21, 2006, the Government released draft legislation for
comment. Considerable uncertainty still exists as the draft legislation does
not fully address all aspects of the tax regime introduced in the Tax Fairness
Plan (including the "normal growth guidelines"). Further, the proposed
legislation is now subject to review by a Parliamentary committee through an
expedited public hearing process. Timing for enactment of the legislation by
Parliament remains uncertain.
    If enacted in their present form, the proposed tax changes would, all
other things being equal, likely result in a reduction of cash available for
distribution from the Fund commencing in 2011. With respect to the proposed
limitations on equity unit issuances, Data believes that the Fund should be
able to fund its currently identified growth plan. However, with the current
uncertainty in the capital markets resulting from the proposed tax changes,
there can be no assurance that sufficient capital will be available to fund
further acquisitions or expansion projects. Data, with input from external
legal and financial advisors, is closely monitoring legislative developments
and carefully assessing the impact of the proposed legislation on the business
and financial outlook of the Fund and its broader effect on the income trust
sector as a whole, all with a view to adopting a strategy that will maximize
value to unitholders going forward once legislative framework is finalized.
    Management believes the acquisition of Relizon Canada has introduced a
marginal amount of seasonality into the business. The gift card business as
well as the buying pattern of a major customer appear to indicate that the
fourth quarter may have higher revenues and profit than the other
three quarters.
    The Data Group will continue its strategic focus on being the leading
document management service provider in Canada, concentrating on providing
high value-added products and services. The Data Group will also pursue
acquisition opportunities within its existing business segments.

    About The DATA Group Income Fund
    --------------------------------

    The DATA Group Income Fund owns a 100% interest in The DATA Group Limited
Partnership ("The DATA Group"). The DATA Group is a leading provider of
document management solutions including printed products. Founded in 1959, the
company operates 56 facilities in 11 regions across Canada and has a leading
market share in the total document management services segment.
    Additional information relating to The DATA Group Income Fund is
available on the System for Electronic Document Analysis and Retrieval (SEDAR)
at www.sedar.com and www.datagroupincomefund.com.


    
    Consolidated Balance Sheets
    (in thousands of dollars, unaudited)
                                                   December 31,  December 31,
                                                          2006          2005
                                                             $             $

    Assets

    Current assets
    Cash and cash equivalents                            4,767         8,903
    Accounts receivable                                 55,010        26,363
    Inventories                                         46,331        20,890
    Prepaid expenses and other current assets            3,788         2,470
    Income taxes recoverable                             2,056            66
                                                  ------------- -------------

                                                       111,952        58,692

    Property, plant and equipment                       53,497        14,946
    Goodwill                                           152,570        87,973
    Intangible assets                                   76,362        49,797
    Future income taxes                                    183             -
    Deferred finance fees                                2,601           601
                                                  ------------- -------------

                                                       397,165       212,009
                                                  ------------- -------------
                                                  ------------- -------------
    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities            52,939        20,208
    Accrued restructuring and integration
     provisions                                         10,473             -
    Distributions payable                                2,267         1,435
                                                  ------------- -------------

                                                        65,679        21,643

    Revolving bank facility                             70,000        40,000
    Convertible debentures                              34,155             -
    Future income taxes                                      -        16,032
    Unfavourable lease obligation                        1,355             -
    Pension obligations                                 10,619         4,735
    Post-employment 	benefits                               700             -
                                                  ------------- -------------

                                                       182,508        82,410
                                                  ------------- -------------
    Unitholders' Equity

    Units                                              215,164       137,519
    Conversion option                                      902             -
    Accumulated income                                  37,392         9,501
    Cumulative distributions                           (38,801)      (17,421)
                                                  ------------- -------------

                                                       214,657       129,599
                                                  ------------- -------------

                                                       397,165       212,009
                                                  ------------- -------------
                                                  ------------- -------------


    Consolidated Statements of Income and Accumulated Income
    (in thousands of dollars, except per unit amounts, unaudited)

                                                       For the       For the
                                                  three months  three months
                                                         ended         ended
                                                   December 31,  December 31,
                                                          2006          2005
                                                             $             $

    Revenues                                           108,846        55,980

    Cost of revenues (including depreciation of
     $2,051 and $682, respectively)                     81,530        40,024
                                                  ------------- -------------

    Gross profit                                        27,316        15,956
                                                  ------------- -------------

    Expenses
    Selling, commissions and expenses                   11,020         5,768
    General and administration (including
     depreciation of $177 and $62, respectively)         7,567         4,463
    Integration costs                                      164
    Amortization of intangible assets                    2,411         1,652
                                                  ------------- -------------

                                                        21,162        11,883
                                                  ------------- -------------

    Income before interest and income taxes              6,154         4,073

    Interest expense on long-term debt (net of
     interest income of $83 and $61, respectively)       1,817           573
                                                  ------------- -------------

    Income before income taxes                           4,337         3,500

    Future income tax recovery                               -          (116)
                                                  ------------- -------------

    Net Income for the period                            4,337         3,616
                                                  ------------- -------------
                                                  ------------- -------------

    Accumulated income - beginning of period            33,055         5,885
                                                  ------------- -------------

    Accumulated income - end of period                  37,392         9,501
                                                  ------------- -------------
                                                  ------------- -------------


    Basic income per unit                                 0.19          0.24
                                                  ------------- -------------
                                                  ------------- -------------

    Diluted income per unit                               0.18          0.24
                                                  ------------- -------------
                                                  ------------- -------------


    Consolidated Statements of Income and Accumulated Income
    (in thousands of dollars, except per unit amounts, unaudited)

                                                                     For the
                                                                 period from
                                                       For the   December 21,
                                                    year ended       2004 to
                                                   December 31,  December 31,
                                                          2006          2005
                                                             $             $

    Revenues                                           286,650       220,740

    Cost of revenues (including depreciation
     of $4,640 and $3,032, respectively)               211,633       164,188
                                                  ------------- -------------

    Gross profit                                        75,017        56,552
                                                  ------------- -------------

    Expenses
    Selling, commissions and expenses                   30,525        23,734
    General and administration (including
     depreciation of $455 and $267, respectively)       21,229        17,133
    Integration costs                                      164
    Amortization of intangible assets                    7,558         6,803
                                                  ------------- -------------

                                                        59,476        47,670
                                                  ------------- -------------

    Income before interest and income taxes             15,541         8,882

    Interest expense on long-term debt (net of
     interest income of $415 and $195, respectively)     3,865         2,126
                                                  ------------- -------------

    Income before income taxes                          11,676         6,756
                                                  ------------- -------------

    Future income tax recovery                         (16,215)       (2,745)
                                                  ------------- -------------

    Net income for the period                           27,891         9,501
                                                  ------------- -------------
                                                  ------------- -------------

    Accumulated income - beginning of period             9,501             -
                                                  ------------- -------------

    Accumulated income - end of period                  37,392         9,501
                                                  ------------- -------------
                                                  ------------- -------------


    Basic income per unit                                 1.57          0.64
                                                  ------------- -------------
                                                  ------------- -------------

    Diluted income per unit                               1.54          0.64
                                                  ------------- -------------
                                                  ------------- -------------


    Consolidated Statements of Cash Flows
    (in thousands of dollars, unaudited)

                                                       For the       For the
                                                 quarter ended quarter ended
                                                   December 31,  December 31,
    Cash provided by (used in)                            2006          2005
                                                             $             $

    Operating activities
    Net income for the period                            4,337         3,616
    Items not involving cash
      Depreciation of property, plant and equipment      2,228           744
      Amortization of intangible assets                  2,411         1,652
      Pension expense                                      578           311
      Contributions made to pension plans               (3,039)         (400)
      Amortization of deferred financing fees              191            76
      Gain on disposal of property and equipment            (4)            1
      Accretion of convertible debentures                   43             -
      Unfavourable lease obligation                        (55)            -
      Post-employment benefits                             (31)            -
      Future income taxes                                    -          (116)
                                                  ------------- -------------
                                                         6,659         5,884

    Changes in non-cash items relating to
     operating activities                                4,488         1,064
                                                  ------------- -------------

                                                        11,147         6,948
                                                  ------------- -------------

    Investing activities
    Purchase of property, plant and equipment           (1,912)       (1,178)
    Proceeds on disposal of fixed assets                    30             -
    Payment of acquisition costs for Relizon
     Canada Inc.                                          (631)            -
                                                  ------------- -------------

                                                        (2,513)       (1,178)
                                                  ------------- -------------

    Financing activities
    Cash payments for expenses of issuing
     trust units                                          (588)            -
    Financing costs                                       (385)            -
    Distributions to Unitholders                        (6,801)       (4,305)
                                                  ------------- -------------

                                                        (7,774)       (4,305)
                                                  ------------- -------------

    Increase in cash and cash equivalents during
     the period                                            860         1,465

    Cash and cash equivalents - beginning of
     period                                              3,907         7,438
                                                  ------------- -------------

    Cash and cash equivalents - end of
     period                                              4,767         8,903
                                                  ------------- -------------
                                                  ------------- -------------

    Supplemental cash flow information
    Interest paid                                        1,004         1,102



    Consolidated Statements of Cash Flows
    (in thousands of dollars, unaudited)
                                                                     For the
                                                                 period from
                                                       For the   December 21,
                                                    year ended       2004 to
                                                   December 31,  December 31,
                                                          2006          2005
                                                             $             $

    Operating activities
    Net income for the period                           27,891         9,501
    Items not involving cash
      Depreciation of property, plant and
       equipment                                         5,095         3,299
      Amortization of intangible assets                  7,558         6,803
      Pension expense                                    1,663         1,289
      Contributions made to pension plans               (8,046)       (7,278)
      Amortization of deferred financing fees              452           314
      Loss (gain) on disposal of property and
       equipment                                            (3)          245
      Accretion of convertible debentures                   57             -
      Unfavourable lease obligation                        (55)            -
      Post-employment benefits                             (36)            -
      Future income taxes                              (16,215)       (2,745)
                                                  ------------- -------------
                                                        18,361        11,428

    Changes in non-cash items relating to
     operating activities                                2,123         7,948
                                                  ------------- -------------

                                                        20,484        19,376
                                                  ------------- -------------

    Investing activities
    Purchase of property, plant and equipment           (3,585)       (2,372)
    Proceeds on disposal of property and equipment          34             1
    Acquisition of Data Business Forms Limited
     (net of cash acquired of $323)                       (374)     (114,807)
    Acquisition of Relizon Canada Inc. (net of
     cash acquired of $1,888)                         (113,097)            -
                                                  ------------- -------------

                                                      (117,022)     (117,178)
                                                  ------------- -------------

    Financing activities
    Repayment of acquired Data Business Forms'
     long-term debt                                          -       (53,913)
    Proceeds from issuance of trust units -
     net of expenses                                    50,402       137,519
    Proceeds from issuance of convertible
     debentures                                         33,600             -
    Proceeds from revolving bank facility               30,000        40,000
    Financing costs                                     (1,052)         (915)
    Distributions to Unitholders                       (20,548)      (15,986)
                                                  ------------- -------------
                                                        92,402       106,705
                                                  ------------- -------------

    (Decrease) increase in cash and cash
     equivalents during the period                      (4,136)        8,903

    Cash and cash equivalents -
     beginning of period                                 8,903             -
                                                  ------------- -------------

    Cash and cash equivalents - end of period            4,767         8,903
                                                  ------------- -------------
                                                  ------------- -------------

    Supplemental cash flow information
    Interest paid                                        3,052         2,496

    Non-cash investing and financing activities
    Acquisition of certain assets and settlement
     for non-cash consideration                              -        14,388
    Units issued in connection with business
     acquisition                                        27,243             -
    

    %SEDAR: 00021422E




For further information:

For further information: Mr. David Odell, President and CEO, Data
Business Forms Limited, Tel: (905) 791-3151; Mr. Paul O'Shea, Chief Financial
Officer, Data Business Forms Limited, Tel: (905) 791-3151

Organization Profile

THE DATA GROUP INCOME FUND

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