DLC Releases Annual 2024 Results; Achieves Annual Funded Volumes of $67.4 Billion (19% Increase over Prior Year)

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VANCOUVER, British Columbia, March 27, 2025 (GLOBE NEWSWIRE) — Dominion Lending Centres Inc. (TSX:DLCG) (“DLCG” or the “Corporation”) is pleased to report its financial results for the three months (“Q4-2024”) and year ended December 31, 2024 (“annual”). For complete information, readers should refer to the annual audited consolidated financial statements and management discussion and analysis which are dated March 27, 2025 and are available on SEDAR+ at www.sedarplus.ca and on the Corporation’s website at www.dlcg.ca. All amounts are presented in Canadian dollars unless otherwise stated.

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DLCG includes the Corporation and its three main subsidiaries: MCC Mortgage Centres Canada Inc. (“MCC”), MA Mortgage Architects Inc. (“MA”), and Newton Connectivity Systems Inc. (“Newton”). The Corporation’s acquisition of all of the series I, class “B” preferred shares (the “Preferred Shares”) completed on December 17, 2024 is referred to herein as the “Preferred Share Acquisition”.

Gary Mauris, Executive Chairman and CEO, commented, “We are pleased to report annual funded volume growth of 19% over the prior year which helped drive a 23% increase in revenues and a 47% increase in adjusted EBITDA. We are proud of our strong network of franchisees and mortgage professionals and would like to thank them for their continued hard work in 2024. The adoption of our technology connectivity platform ‘Velocity’ was a significant contributor to our success, as was our “Gold Rush” campaign which made it easier for brokers to stay connected with their clients. Looking ahead, we believe we are well-positioned to take advantage of favourable market conditions should interest rates further decline and as a significant number of mortgage renewals are on the horizon.” 

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Q4-2024 and Annual Summary:

Q4-2024 funded volumes of $19.6 billion and annual funded volume of $67.4, representing a 38% and 19% increase as compared to 2023, respectively;Q4-2024 revenue of $22.3 million and annual revenue of $76.8 million, representing a 41% and 23% increase compared to 2023, respectively;Q4-2024 adjusted EBITDA of $10.2 million and annual adjusted EBITDA of $36.0 million as compared to $6.5 million in Q4-2023 and $24.4 million in annual 2023.The Corporation’s Q4-2024 net loss of $138.8 million and annual net loss of $126.8 million was primarily due to non-cash finance expense on the Preferred Share liability. The difference between the fair value of consideration granted for the Preferred Share Acquisition and the book value of the Preferred Shares (which were accounted for on an amortized cost basis) was recognized as a loss on acquisition within finance expense on the Preferred Share liability (refer to the Preferred Shares section of the accompanying MD&A); andThe Corporation declared a quarterly dividend of $0.03 per class A common share (“Common Share”), resulting in a dividend payment of $1.4 million in Q4-2024.

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Selected Consolidated Financial Summary:
Below is a summary of our financial results for the three months and year ended December 31, 2024 and for the comparable periods in December 31, 2023.

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(1) Please see the Non-IFRS Financial Performance Measures section of the accompanying MD&A for additional information.
(2) Net income for the three months and year ended December 31, 2024 includes $144.5 million and $149.1 million of non-cash finance expense on the Preferred Share liability (December 31, 2023 – $1.9 million and $9.9 million expense). Refer to the Preferred Shares section of the accompanying MD&A.
(3)  Funded mortgage volumes are presented in billions.
(4)  The number of franchises and brokers are as at the respective period end date (not in thousands).
(5)  The percentage change is not a meaningful figure.

During the three months and year ended December 31, 2024, revenues increased over the three months and year ended December 31, 2023 from higher Newton revenues, primarily due to an increase in Velocity adoption and lender contract renewals. In addition, revenue increased from an increase in mortgage brokers under a DLC corporately-owned franchise and from acquired corporately-owned franchises, contributing to higher revenues from brokering of mortgages. Further, our funded mortgage volumes increased during the three months and year ended when compared to 2023’s equivalent periods, which contributed to increased revenues during those periods.

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Income from operations increased from higher revenues but were partly offset by an increase in operating expenses during the three months and year ended December 31, 2024 when compared to the three months and year ended December 31, 2023. The increase in operating expenses is primarily from an increase in general and administrative costs from technology support and licensing costs and from advertising expenses. In addition, direct costs increased from higher franchise recruiting and support costs and share-based payments expense increased from additional RSUs granted in 2024.

The Corporation’s adjusted net income, adjusted EBITDA, and adjusted EBITDA margins increased during the three months and year ended December 31, 2024 when compared to the three months and year ended December 31, 2023 from an increase in revenue partly offset by an increase in operating expenses. As the Corporation’s operating expenses are largely fixed in nature and are not necessarily proportionate to changes in revenues, an increase in the Corporation’s revenues has a more pronounced impact on adjusted net income, adjusted EBITDA, and adjusted EBITDA margins.

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Net loss increased during the three months and year ended December 31, 2024, compared to the prior year periods. The increase in net loss during the three month and year ended is primarily from finance expense on the Preferred Share liability. The difference between the fair value of the consideration granted for the Preferred Share Acquisition and the book value of the Preferred Shares (which were accounted for on an amortized cost basis) was recognized as a loss on acquisition within finance expense on the Preferred Share liability (refer to the Preferred Shares section of the accompanying MD&A).

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Free cash flow increased during the three months and year ended December 31, 2024, primarily from higher adjusted cash flows from operations from higher income from operations and lower maintenance CAPEX.

Non-IFRS Financial Performance Measures
Management presents certain non-IFRS financial performance measures which we use as supplemental indicators of our operating performance. These non-IFRS measures do not have any standardized meaning, and therefore are unlikely to be comparable to the calculation of similar measures used by other companies and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Non-IFRS measures are defined and reconciled to the most directly-comparable IFRS measure. Non-IFRS financial performance measures include adjusted EBITDA, adjusted net income, adjusted earnings per share, and free cash flow. Please see the Non-IFRS Financial Performance Measures section of the Corporation’s MD&A dated March 27, 2025 for further information on key performance indicators. The Corporation’s MD&A is available on SEDAR+ at www.sedarplus.ca.

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The following table reconciles adjusted EBITDA from income before income tax, which is the most directly-comparable measure calculated in accordance with IFRS:

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(1) Other expense (income) for the three months and year ended December 31, 2024 relates to the reversal of the liquidation rights liability on the sale of Impact (see the Related Party Transactions section of this document), foreign exchange loss, loss on contract settlement, and costs associated with the Preferred Share Acquisition. Other (income) expense for the three months and year ended December 31, 2023 relates to a loss on the disposal of an intangible asset, foreign exchange loss and loss on contract settlement.
(2) Amortization of franchise rights and relationships of $1.2 million and $5.1 million for the three months and year ended December 31, 2024, respectively (December 31, 2023 – $1.2 million and $4.9 million) is classified as a charge against revenue and has not been added back for adjusted EBITDA.

The following table reconciles free cash flow from cash flow from operating activities, which is the most directly-comparable measure calculated in accordance with IFRS:

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(1) Other non-cash items for the three months and year ended December 31, 2024 relates to the reversal of the liquidation rights liability on the sale of Impact (see the Related Party Transactions section of the accompanying MD&A), share-based payments on PSO plan and promissory note income. The three months and year ended December 31, 2023 includes losses on disposal of an intangible asset.
(2) Free cash flow attributable to the Preferred Shareholders is determined based on free cash flow of the Core Business Operations (as defined in the Preferred Shares section of the accompanying MD&A).

The following table reconciles adjusted net income from net income, which is the most directly-comparable measure calculated in accordance with IFRS:

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(1) The Preferred Share liability is revalued at the end of each reporting period to reflect our most recent outlook and forecast. Refer to the Preferred Shares section of the accompanying MD&A.
(2) Other expense (income) for the three months and year ended December 31, 2024 relates to the reversal of the liquidation rights liability on the sale of Impact (see the Related Party Transactions section of the accompanying MD&A), foreign exchange loss, loss on contract settlement and costs associated with the Preferred Share Acquisition. Other expense for the three months and year ended December 31, 2023 relates to a loss on the disposal of intangible assets.
(3) Adjusted net income attributable to the Preferred Shareholders is determined based on adjusted net income of the Core Business Operations (as defined in the Preferred Shares section of the accompanying MD&A).

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Forward-Looking Information
Certain statements in this document constitute forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as “anticipate,” “believe,” “estimate,” “will,” “expect,” “plan,” or similar words suggesting future outcomes or outlooks. Forward-looking information in this document includes, but is not limited to, our anticipation of further interest rate reductions and expected record amount of mortgage renewals.

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Changes in interest rates;The DLC Group’s ability to maintain its existing number of franchisees and add additional franchisees;Changes in overall demand for Canadian real estate (via factors such as immigration);Changes in overall supply for Canadian real estate (via factors such as new housing-start levels);At what period in time the Canadian real estate market stabilizes;Changes in Canadian mortgage lending and mortgage brokerage laws and regulations;Changes in the Canadian mortgage lending marketplace;Changes in the fees paid for mortgage brokerage services in Canada; andDemand for the Corporation’s products remaining consistent with historical demand.

Many of these uncertainties and contingencies may affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made in this document are qualified by these cautionary statements. The foregoing list of risks is not exhaustive. The forward-looking information contained in this document is made as of the date hereof and, except as required by applicable securities laws, we undertake no obligation to update publicly or revise any forward-looking statements or information, whether because of new information, future events or otherwise.

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About Dominion Lending Centres Inc.
Dominion Lending Centres Inc. is Canada’s leading network of mortgage professionals. DLCG operates through Dominion Lending Centres Inc. and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and has operations across Canada. DLCG extensive network includes over 8,500 agents and over 500 locations. Headquartered in British Columbia, DLC was founded in 2006 by Gary Mauris and Chris Kayat.

DLCG can be found on X (Twitter), Facebook and Instagram and LinkedIn @DLCGmortgage and on the web at www.dlcg.ca. 

Contact information for the Corporation is as follows:

NEITHER THE TSX EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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