DLC Releases Q3-2024 Results; Achieves $19.7 Billion in Funded Volumes for Q3-2024 (11% Increase over Prior Year)
VANCOUVER, British Columbia, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Dominion Lending Centres Inc. (TSX:DLCG) ("DLCG" or the "Corporation") is pleased to report its financial results for the three ("Q3-2024") and nine months ended September 30, 2024. For complete information, readers should refer to the interim financial statements and management discussion and analysis which are dated November 5, 2024 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.
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").
Gary Mauris, Executive Chairman and CEO, commented, "The DLC Group maintained its strong momentum from the first half of the year, achieving an 11% increase in funded volumes and a 13% increase in revenues for Q3-2024 compared to Q3-2023. We are pleased that the adoption of our technology connectivity platform ‘Velocity' continues to grow, increasing to 73% of DLCG-submitted volumes in Q3-2024. As we look ahead, we are focused on our core objectives of recruitment and retention of franchises and brokers, and onboarding of brokers onto Velocity. The DLC Group, its franchisees, and its mortgage professionals have worked hard to achieve the continued success, and we feel well positioned to capitalize on market conditions as interest rates decline."
Q3-2024 Summary:
Q3-2024 funded volumes of $19.7 billion, representing an 11% increase as compared to Q3-2023;
Q3-2024 revenue of $22.1 million, representing a 13% increase compared to Q3-2023;
Q3-2024 adjusted EBITDA of $12.2 million as compared to $10.1 million in Q3-2023;
The Corporation's Q3-2024 net income of $5.3 million is consistent with Q3-2023, primarily from higher income from operations from increased funded volumes, and increased revenues offset by higher non-cash finance expense on the Preferred Share liability;
The 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 Q3-2024; and
On October 2, 2024, the Corporation entered into an acquisition agreement with KayMaur Holdings Ltd. and certain minority holders to acquire ("Proposed Acquisition") all of the issued and outstanding Preferred Shares in exchange for $137 million payable as follows: 30,500,000 class "A" common shares (having a 20 day volume weighted average price of $4.00 per share on the date of announcement) and an aggregate cash payment of $15.0 million. The Proposed Acquisition is subject to a number of conditions, including approval by the Exchange. If such conditions are met, the Corporation anticipates closing to occur at or near the end of 2024.
Selected Consolidated Financial Summary:Below is a summary of our financial results for the three and nine months ended September 30, 2024 and September 30, 2023.
Three months ended Sept. 30,
Nine months ended Sept. 30,
(in thousands, except per share and KPIs)
2024
2023
Change
2024
2023
Change
Revenues
$
22,073
$
19,578
13%
$
54,497
$
46,759
17%
Income from operations
10,215
8,879
15%
21,063
14,397
46%
Adjusted EBITDA (1)
12,218
10,116
21%
25,746
17,913
44%
Adjusted EBITDA margin
55%
52%
3%
47%
38%
9%
Free cash flow attributable to common shareholders (1)
5,609
4,607
22%
10,529
5,424
94%
Net income (2)
5,271
5,271
-
11,987
2,067
480%
Adjusted net income (1)
3,754
3,115
21%
7,792
4,973
57%
Diluted earnings per Common Share (2)
0.11
0.11
-
0.25
0.04
525%
Adjusted diluted earnings per Common Share (1)
0.08
0.06
33%
0.16
0.10
60%
Dividends declared per share
$
0.03
$
0.03
-
$
0.09
$
0.09
-
Funded mortgage volumes (3)
19.7
17.7
11%
47.8
42.3
13%
Number of franchises (4)
521
526
(1%)
521
526
(1%)
Number of brokers (4)
8,784
8,081
9%
8,784
8,081
9%
% of DLCG funded mortgage volumes submitted through Velocity
73%
64%
9%
72%
63%
9%
(1)
Please see the Non-IFRS Financial Performance Measures section of the accompanying MD&A for additional information.
(2)
Net income for the three and nine months ended September 30, 2024 includes $2.0 million and $4.5 million of non-cash finance expense on the Preferred Share liability (September 30, 2023, $0.9 million and $8.0 million expense). 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 for additional information.
