Solid Results. Soon maybe we will see news of the sale of the non core assets and pay off the credit facility.....2022 will be growth phase.....Newton just saw integration too. Nice!
2021-11-16 16:31 ET - News Release
Mr. Gary Mauris reports
DLC RELEASES Q3 2021 RESULTS; ACHIEVES OVER $75 BILLION IN FUNDED MORTGAGE VOLUMES FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2021
Dominion Lending Centres Inc. has released its financial results for the three and nine months ended Sept. 30, 2021. For complete information, readers should refer to the interim financial statements, and management discussion and analysis, which are available on SEDAR and on the corporation's website. All amounts are presented in Canadian dollars unless otherwise stated.
Reference herein to the Dominion Lending Centres Group of Companies (the DLC Group or core business operations) includes the corporation and its three main subsidiaries, MCC Mortgage Centres Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and excludes the non-core business asset management segment and the corresponding historical financial and operating results. The non-core business asset management segment represents the corporation's share of income in its equity accounted investments in Club16 LP and Cape Communications International Inc., the expenses, assets and liabilities associated with managing the non-core assets, the credit facility with Sagard Credit Partners, and public company costs.
Q3 2021 financial highlights
- The DLC Group achieved record quarterly funded mortgage volumes during Q3 2021 in the amount of $22.6-billion, representing a 61-per-cent increase as compared witj Q3 2020; further, year-to-date 2021 funded mortgage volumes for the nine months ended Sept. 30, 2021, were $57.9-billion, representing a 71-per-cent increase compared with the prior year;
- Record DLC Group revenue of $22.3-million generated over Q3 2021, representing a 59-per-cent increase as compared with Q3 2020;
- Record DLC Group adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $13.8-million in Q3 2021, representing a 64-per-cent increase as compared with Q3 2020;
- Subsequent to the end of the quarter, the corporation further improved leverage by making a repayment on its Sagard credit facility of $2.6-million (U.S.) ($3.2-million (U.S.)) from free cash flows, resulting in the facility having an outstanding principal balance of $22.1-million as at the date hereof.
Gary Mauris, executive chairman and chief executive officer, commented: "We are very proud of our franchisees and mortgage professionals. Their tremendous hard work has directly contributed towards another record quarter for the DLC Group. Similar to Q2 2021, the Q3 2021 results for funded volumes, revenues and adjusted EBITDA are the highest quarterly financial and operating results in the DLC Group's 15-year history. We are so incredibly proud of our team for maintaining the strong momentum we've achieved thus far in 2021 to produce record results again for our shareholders."
Selected consolidated financial highlights
Herein are the highlights of the company's financial results for the three and nine months ended Sept. 30, 2021. The comparative results for the three and nine months ended Sept. 30, 2020, reflect the segregation of the non-core assets as discontinued operations. The current period results for the three and nine months ended Sept. 30, 2021, include the non-core assets as equity accounted investments within the non-core business asset management segment. The discontinued operations are only included in net income and net earnings (loss) per common share.
Q3 2021 highlights
Net income for the three and nine months ended Sept. 30, 2021, decreased compared with the same periods in the previous year primarily due to finance expense on the preferred share liability and an increased net loss in the non-core business asset management segment, partly offset by higher DLC Group revenues from an increase in funded mortgage volumes. The corporation did not have discontinued operations during the three months ended Sept. 30, 2021, compared with income from discontinued operations during the three months ended Sept. 30, 2020.
Adjusted net income and adjusted EBITDA for the three and nine months ended Sept. 30, 2021, increased compared with the same periods in the previous year primarily from increased revenues from higher funded mortgage volumes, partly offset by higher operating expenses from higher personnel costs and advertising fund expenses.
The increase in adjusted net income and adjusted EBITDA contributed to the increase in free cash flow attributable to common shareholders during the three and nine months ended September 30, 2021, when compared with the three and nine months ended Sept. 30, 2020.
About Dominion Lending Centres Inc.
The DLC Group is Canada's leading network of mortgage professionals. The DLC Group operates through Dominion Lending Centres and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and has operations across Canada. The DLC Group's extensive network includes approximately 7,500 agents and 515 locations. Headquartered in British Columbia, the DLC Group was founded in 2006 by Gary Mauris and Chris Kayat.
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