DLCG Dominion Lending Centres Inc

Dominion Lending Centres Inc. (TSXV:DLCG) (“DLCG” or the “Corporation”) is pleased to report its financial results for the three months ended March 31, 2021 (“Q1-2021”). For complete information, readers should refer to the interim financial statements and management discussion and analysis which are available on SEDAR at www.sedar.com and on the Corporation’s website at www.dlcg.ca. 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’s mortgage brokerage and data connectivity operations and the Corporation’s three main subsidiaries, MCC Mortgage Centres Canada Inc. (“MCC”), MA Mortgage Architects Inc. (“MA”), and Newton Connectivity Systems Inc. (“Newton), and excludes the Non-Core Business Asset Management segment and their 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 Limited Partnership and Impact Radio Accessories (collectively, the “Non-Core Assets”), the expenses, assets and liabilities associated with managing the Non-Core Assets, the credit facility with Sagard Credit Partners, and public company costs.

Q1-2021 Financial Highlights

• Record Q1 funded volumes of $13.4 billion, representing a 51% increase as compared to Q1-2020;
• Record Q1 DLC Group revenue of $13.9 million and record Q1 DLC Group Adjusted EBITDA of $8.4 million, representing a 46% and 85% increase respectively, as compared to Q1-2020; and
• DLC Group’s mortgage professionals have continued to adopt the usage of Newton, with 4,500 mortgage professionals using Newton’s Velocity as at Q1-2021, compared to 1,800 at Q1-2020, representing a 150% increase over the prior year.

Gary Mauris, Executive Chairman and CEO, commented, “The DLC Group maintained its strong momentum from 2020 as we achieved record Q1 funded volumes of $13.4 billion, while maintaining overall costs, as demonstrated by our strong Adjusted EBITDA margins during the quarter. A significant focus for DLC Group’s management team continues to be growth and mortgage professional adoption of Newton’s connectivity platform, Velocity. We are pleased with the continued positive feedback from the mortgage professional community and are encouraged by the significant growth in mortgage professional adoption of Velocity.”

Selected Consolidated Financial Highlights:Below are the highlights of our financial results for the three months ended March 31, 2021. The comparative results for the three months ended March 31, 2020, reflect the segregation of the Non-Core Assets as discontinued operations. The current period results for the three months ended March 31, 2021 include the Non-Core Assets as an equity accounted investment within the Non-Core Business Asset Management segment. The discontinued operations are only included in net loss and net earnings (loss) per Common Share.

	Three months ended March 31,
(in thousands, except per share)		2021		2020	Change
Revenues	$	13,888	$	9,498	46%
Income from operations		5,000		3,057	64%
Adjusted EBITDA (1)		7,019		4,047	73%
CDC (1)		3,767		2,462 (2)	53%
Free cash flow attributable to common shareholders (1)		3,471		451	NMF (3)
Net loss		(100)		(1,716)	94%
Net loss from continuing operations		(100)		(523)	81%
Net loss from discontinued operations		-		(1,193)	NMF (3)
Net (loss) income attributable to:
Common shareholders		(486)		(2,199)	78%
Non-controlling interests		386		483	(20%)
Adjusted net income (1)		1,744		871	100%
Diluted loss per Common Share		(0.01)		(0.06)	83%
Adjusted earnings (loss) per Common Share (1)	$	0.03	$	-	NMF (3)

(1)  Please see the Non-IFRS Financial Performance Measures section of this document for additional information.(2)  The Preferred Shares were issued on December 31, 2020; as such, no dividends were paid to the preferred shareholders based on CDC in the three months ended March 31, 2020.(3)  The percentage change is Not a Meaningful Figure (“NMF”).

	Three months ended March 31,
(in thousands)		2021		2020	Change
Adjusted EBITDA (1)
Core Business Operations	$	8,380	$	4,540	85%
Non-Core Business Asset Management		(1,361)		(493)	(176%)
Total Adjusted EBITDA (1)	$	7,019	$	4,047	73%

(1)  Please see the Non-IFRS Financial Performance Measures section of this document for additional information.

Q1-2021 HighlightsNet income increased from higher income from operations in the Core Business Operations of $6.4 million for the three months ended March 31, 2021, when compared to the previous year three months of $3.3 million as a result of increased DLC Group revenues from an increase in funded mortgage volumes, partly offset by higher other expense of $2.0 million quarter over quarter, from an increase in finance expense primarily from the accretion expense, net of the revaluation of the Preferred Share liability. The increase in the Core Business Operations net income was partly offset by a higher loss from operations from the Non-Core Business Asset Management segment of $1.4 million during the three months ended March 31, 2021, when compared to the three months ended March 31, 2020 of $0.3 million, from increased share-based payment expense on the Corporation’s restricted share units from a higher share price on March 31, 2021, and a loss from the equity accounted investments in the Non-Core Assets included within other expense. The Corporation did not have discontinued operations during the three months ended March 31, 2021, compared to a loss from discontinued operations during the three months ended March 31, 2020.

Adjusted net income for the three months ended March 31, 2021, increased compared to the same period in the previous year primarily from increased revenues from higher funded mortgage volumes.

About Dominion Lending Centres Inc.The DLC Group is Canada’s leading and largest network of mortgage professionals with over $51 billion in annual funded mortgage volumes in 2020. The DLC Group operates through DLC 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 ~7,000 agents and 514 franchises. Headquartered in British Columbia, the DLC Group was founded in 2006 by Gary Mauris and Chris Kayat.

Contact information for the Corporation is as follows:

James BellCo-President403-560-0821jbell@dlcg.ca

Robin BurpeeCo-Chief Financial Officer403-455-9670rburpee@dlcg.ca

Amar LeekhaSr. Vice-President, Capital Markets403-455-6671aleekha@dlcg.ca

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

Non-IFRS Financial Performance Measures Management presents certain non-IFRS financial performance measures which we use as supplemental indicators of our operating performance. Non-IFRS financial performance measures include EBITDA and Adjusted EBITDA, Adjusted net income, Adjusted earnings per share, CDC, and free cash flow. Readers are cautioned that these non-IFRS measures should not be construed as a substitute or an alternative to applicable generally accepted accounting principle measures as determined in accordance with IFRS. Please see the Corporation’s MD&A for a description these measures and a reconciliation of these measures to their nearest IFRS measure.