DLCG Announces Solid First Quarter Results with 46% Year-Over-Year Growth in Funded Mortgage Volumes to $16.4 Billion
Dominion Lending Centres (TSX: DLCG) reported strong Q1 2025 financial results, with funded mortgage volumes growing 46% to $16.4 billion compared to Q1 2024. The company achieved revenue of $18.7 million, up 37% year-over-year, while Adjusted EBITDA increased 61% to $8.0 million. Key highlights include adjusted net income reaching $0.06 per share ($4.9 million), improved Velocity platform adoption across their broker network from 68% to 79%, and a quarterly dividend of $0.03 per share.
The company's broker network expanded to 8,544 agents (up 5%), despite a slight decrease in franchises to 504. DLCG maintained strong financial health with adjusted total debt-to-EBITDA of 0.58x and generated significant free cash flow of $6.8 million, up from $0.7 million in Q1 2024.
Dominion Lending Centres (TSX: DLCG) ha riportato solidi risultati finanziari per il primo trimestre 2025, con volumi di mutui erogati in crescita del 46% a 16,4 miliardi di dollari rispetto al primo trimestre 2024. L'azienda ha registrato ricavi per 18,7 milioni di dollari, in aumento del 37% su base annua, mentre l'EBITDA rettificato è salito del 61% a 8,0 milioni di dollari. Tra i principali risultati si evidenzia un utile netto rettificato di 0,06 dollari per azione (4,9 milioni di dollari), un miglioramento nell'adozione della piattaforma Velocity nella rete di broker dal 68% al 79%, e un dividendo trimestrale di 0,03 dollari per azione.
La rete di broker dell'azienda è cresciuta fino a 8.544 agenti (con un aumento del 5%), nonostante una leggera diminuzione delle franchise a 504. DLCG ha mantenuto una solida salute finanziaria con un rapporto debito totale rettificato su EBITDA di 0,58x e ha generato un significativo flusso di cassa libero di 6,8 milioni di dollari, in aumento rispetto a 0,7 milioni nel primo trimestre 2024.
Dominion Lending Centres (TSX: DLCG) reportó sólidos resultados financieros en el primer trimestre de 2025, con volúmenes de hipotecas financiadas creciendo un 46% hasta 16.4 mil millones de dólares en comparación con el primer trimestre de 2024. La compañía alcanzó ingresos de 18.7 millones de dólares, un aumento del 37% interanual, mientras que el EBITDA ajustado creció un 61% hasta 8.0 millones de dólares. Los aspectos destacados incluyen un ingreso neto ajustado de 0.06 dólares por acción (4.9 millones de dólares), una mayor adopción de la plataforma Velocity en su red de corredores, que pasó del 68% al 79%, y un dividendo trimestral de 0.03 dólares por acción.
La red de corredores de la empresa se expandió a 8,544 agentes (un aumento del 5%), a pesar de una ligera disminución en las franquicias a 504. DLCG mantuvo una sólida salud financiera con una deuda total ajustada a EBITDA de 0.58x y generó un flujo de caja libre significativo de 6.8 millones de dólares, frente a 0.7 millones en el primer trimestre de 2024.
Dominion Lending Centres (TSX: DLCG)는 2025년 1분기 강력한 재무 실적을 보고했으며, 대출 실행 모기지 규모가 2024년 1분기 대비 46% 증가한 164억 달러를 기록했습니다. 회사는 전년 동기 대비 37% 증가한 1,870만 달러의 매출을 달성했으며, 조정 EBITDA는 61% 증가한 800만 달러에 달했습니다. 주요 성과로는 주당 0.06달러(490만 달러)의 조정 순이익, 중개인 네트워크 내 Velocity 플랫폼 채택률이 68%에서 79%로 향상, 그리고 주당 0.03달러의 분기 배당금이 포함됩니다.
회사의 중개인 네트워크는 8,544명으로 5% 증가했으며, 프랜차이즈 수는 다소 감소하여 504개가 되었습니다. DLCG는 조정 총부채 대비 EBITDA 비율 0.58배의 견고한 재무 건전성을 유지했으며, 2024년 1분기 70만 달러에서 크게 증가한 680만 달러의 자유 현금 흐름을 창출했습니다.
Dominion Lending Centres (TSX : DLCG) a annoncé de solides résultats financiers pour le premier trimestre 2025, avec un volume de prêts hypothécaires financés en hausse de 46 % à 16,4 milliards de dollars par rapport au premier trimestre 2024. La société a réalisé un chiffre d'affaires de 18,7 millions de dollars, en hausse de 37 % sur un an, tandis que l'EBITDA ajusté a augmenté de 61 % pour atteindre 8,0 millions de dollars. Parmi les points forts, on note un bénéfice net ajusté de 0,06 dollar par action (4,9 millions de dollars), une adoption améliorée de la plateforme Velocity au sein de leur réseau de courtiers, passant de 68 % à 79 %, ainsi qu'un dividende trimestriel de 0,03 dollar par action.
Le réseau de courtiers de l'entreprise s'est étendu à 8 544 agents (en hausse de 5 %), malgré une légère baisse des franchises à 504. DLCG a maintenu une solide santé financière avec un ratio dette totale ajustée sur EBITDA de 0,58x et a généré un flux de trésorerie disponible important de 6,8 millions de dollars, en hausse par rapport à 0,7 million au premier trimestre 2024.
Dominion Lending Centres (TSX: DLCG) meldete starke Finanzergebnisse für das erste Quartal 2025, mit finanzierten Hypothekenvolumen, das im Vergleich zum ersten Quartal 2024 um 46 % auf 16,4 Milliarden Dollar wuchs. Das Unternehmen erzielte einen Umsatz von 18,7 Millionen Dollar, ein Plus von 37 % gegenüber dem Vorjahr, während das bereinigte EBITDA um 61 % auf 8,0 Millionen Dollar anstieg. Zu den wichtigsten Highlights zählen ein bereinigter Nettogewinn von 0,06 Dollar pro Aktie (4,9 Millionen Dollar), eine verbesserte Akzeptanz der Velocity-Plattform im Broker-Netzwerk von 68 % auf 79 % sowie eine Quartalsdividende von 0,03 Dollar pro Aktie.
Das Broker-Netzwerk des Unternehmens wuchs auf 8.544 Agenten (plus 5 %), trotz eines leichten Rückgangs der Franchises auf 504. DLCG behielt eine starke finanzielle Stabilität mit einem bereinigten Gesamtverschuldungsgrad von 0,58x EBITDA bei und generierte einen erheblichen freien Cashflow von 6,8 Millionen Dollar, gegenüber 0,7 Millionen im ersten Quartal 2024.
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Vancouver, British Columbia--(Newsfile Corp. - May 7, 2025) - Dominion Lending Centres Inc. (TSX: DLCG) ("DLCG" or the "Corporation") today announced financial results for the three months ended March 31, 2025. DLCG is one of Canada's leading franchisors of mortgage professionals, with a national network of over 8,500 agents. The Corporation also owns Newton Connectivity Systems Inc., a financial technology company that provides an integrated end-to-end operating platform, called Velocity, designed to automate and streamline the entire mortgage application, approval, underwriting and funding process.
Financial Highlights for Q1 2025:
- Funded mortgage volumes grew
46% to$16.4 billion over Q1 2024; - Revenue was
$18.7 million for the first quarter of 2025, compared to$13.6 million for the same period last year – an increase of37% ; - Adjusted EBITDA of
$8.0 million rose61% compared to$5.0 million in Q1 2024; - Adjusted net income for the quarter reached
$0.06 per share or$4.9 million , compared to$0.03 per share or$1.4 million in Q1 2024, respectively; - Adoption of Velocity across the DLCG broker network increased to
79% from68% in Q1 2024; and - A quarterly dividend of
$0.03 per share was paid on March 14, 2025.
"Despite an uncertain economic environment and slower than expected activity levels in the Canadian housing market to start the year, I am pleased to report that we achieved strong growth in the first quarter of 2025, with revenue increasing
"The strong top-line growth was augmented by the relatively fixed cost nature of many of our expenses resulting in Adjusted EBITDA margins expanding to
"While we continue to monitor the impact that the current economic uncertainty is having on the Canadian consumer and therefore the housing market, we remain confident in our ability to grow funded mortgage volumes and revenue in 2025. Our confidence stems from our expectation that the strong mortgage renewal market (as mortgages secured during the pandemic at low rates are now reaching their term) and the recent decline in interest rates, will help offset the weakness in the Canadian housing market. In addition, we remain focused on growing our franchise and broker network, through both recruiting and market share gains by our existing franchises, expanding our total addressable market by educating Canadian consumers on the benefits of using a mortgage broker and continued onboarding of brokers onto Velocity, all of which we expect will positively impact our revenue and profitability in 2025," concluded Mr. Mauris.
First Quarter 2025 Financial Summary
| For the quarter ended March 31, | ||||||
| (in thousands of Canadian dollars, except per share amounts, percentages and KPIs) | 2025 | 2024 | Change | |||
| Revenues | $ | 18,732 | $ | 13,636 | ||
| Income from operations | 6,885 | 3,468 | ||||
| Adjusted EBITDA (1) | 8,031 | 4,996 | ||||
| Adjusted EBITDA margin (1) | ||||||
| Net income (loss) | 6,267 | 2,631 | ||||
| Diluted earnings per Common Share | 0.08 | 0.05 | ||||
| Adjusted net income (1) | 4,925 | 1,439 | ||||
| Adjusted diluted earnings per Common Share (1) | 0.06 | 0.03 | ||||
| Dividends declared per share | 0.03 | 0.03 | - | |||
| Cash inflows from operating activities | 7,743 | 5,067 | ||||
| Free cash flow attributable to common shareholders (1) | 6,797 | 650 | ||||
(1) Please see the Non-IFRS Financial Performance Measures section of this document for additional information.
| As at | March 31, 2025 | March 31, 2024 | Change | |||
| Funded mortgage volumes (1) | 16.4 | 11.2 | ||||
| Number of franchises (2) | 504 | 512 | ( | |||
| Number of brokers (2) | 8,544 | 8,170 | ||||
| % of funded mortgage volumes submitted through Velocity (3) |
(1) Funded mortgage volumes are presented in billions and are a key performance indicator that allows us to measure performance against our operating strategy.
(2) The number of franchises and brokers are as at the respective period end date (not in thousands).
(3) Representing the percentage of the DLC Group's funded mortgage volumes that were submitted through Velocity.
First Quarter 2025 Financial Review:
Despite a challenging macroeconomic environment, the Corporation generated strong results during the first quarter of 2025 as we continued to execute on our proven growth strategy and benefited from an active mortgage renewal market. During the quarter we continued to increase our market presence across Canada and expanded the reach of Velocity. In addition to revenue growth, a continued focus on profitability and financial discipline resulted in strong earnings growth, free cash flow generation and a solid balance sheet.
- Revenue increased
37% from Q1 2024 to$18.7 million and was driven by a46% increase in Funded Mortgage Volume from Q1 2024, as well as an increase in the adoption of Velocity across our broker network to79% from68% in Q1 2024. As a result, revenue from Franchise and Brokering of Mortgages increased32% while Newton revenue rose55% . The strong Funded Mortgage Volume growth was the result of several different factors, including an increase in the number of brokers in our network and internal initiatives to leverage Velocity to increase broker productivity and therefore market share and growth in the Canadian mortgage renewal market. - General and administrative expenses increased
18% or$1.3 million over Q1 2024 levels, with the increase stemming from two acquisitions completed in Q2 2024, higher personnel costs, and higher IT-related costs. The additional general and administrative expenses from the two acquired brokerages was$0.7 million for the quarter. Direct costs increased8% over Q1 2024 levels stemming from higher advertising fund expenditures due to timing of advertising initiatives. - Adjusted EBITDA grew
61% to$8.0 million compared to Q1 2024 while Adjusted EBITDA margins increased to43% from37% last year. Adjusted EBITDA margins benefited from the strength of Newton revenue as well as the decline in operating expenses as a percent of revenue. - Net income of
$6.3 million increased from$2.6 million in Q1 2024 due to the higher revenue and a gain on sale of an equity-accounted investee, partly offset by higher operating expenses. - Adjusted diluted earnings per common share increased to
$0.06 in Q1 2025 up from$0.03 last year. Adjusted net income increased to$4.9 million from$1.4 million in Q1 2024 or up242% , mainly due to higher revenue, strong margin performance, and no longer having any income being attributable to Preferred Shareholders. - Cash flow from operating activities increased
53% to$7.7 million from Q1 2024 levels, driven by higher income from operations. - The strong cash flow from operations, coupled with a decline in maintenance capital expenditures, resulted in
$6.8 million in free cash flow compared to$0.7 million in Q1 2024. - The Corporation ended the quarter with adjusted total debt-to-EBITDA (on a trailing twelve-month basis) of 0.58x, reflecting the Corporation's strong free cash flow generation.
- The Corporation paid a dividend of
$0.03 per share on March 14, 2025 to shareholders of record on February 28, 2025.
Conference Call & Webcast
The Corporation will hold a conference call at 4:00pm Mountain Time (6:00pm Eastern Time) on Wednesday, May 7, 2025 to discuss these results. To participate in the conference call, please dial 1-844-763-8274 or 1-647-484-8814 (International) at least 5 minutes prior to the call.
This conference call will also be webcast live and can be accessed by all interested parties at the following URL: https://www.gowebcasting.com/14023.
A webcast replay will also be available within 24 hours following the call on DLCG's website at www.dlcg.ca, in the Investors section.
Reconciliation of Non-IFRS Financial 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 May 7, 2025 for further information on key performance indicators. The Corporation's MD&A is available on SEDAR+ at www.sedarplus.ca.
The following table reconciles adjusted EBITDA from income before income tax, which is the most directly comparable measure calculated in accordance with IFRS:
| For the quarter ended March 31, | ||||||
| (in thousands of Canadian dollars) | 2025 | 2024 | ||||
| Income before tax | $ | 7,914 | $ | 3,214 | ||
| Add back: | ||||||
| Depreciation and amortization | 1,048 | 939 | ||||
| Finance expense | 322 | 764 | ||||
| Finance recovery on the Preferred Share liability | - | (154) | ||||
| 9,284 | 4,763 | |||||
| Adjustments: | ||||||
| Share-based payments expense | 87 | - | ||||
| Gain on disposal of equity-accounted investment | (1,362) | - | ||||
| Non-cash impairment of equity-accounted investment | - | 236 | ||||
| Other expense (income) (1) | 22 | (3) | ||||
| Adjusted EBITDA (2) | $ | 8,031 | $ | 4,996 | ||
(1) Other expense (income) for the three months ended March 31, 2025 relates to foreign exchange loss and loss on contract settlement. Other (income) expense for the three months ended March 31, 2024, 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
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:
| For the quarter ended March 31, | ||||||
| (in thousands of Canadian dollars) | 2025 | 2024 | ||||
| Cash flow from operating activities | $ | 7,743 | $ | 5,087 | ||
| Changes in non-cash working capital and other non-cash items | (27) | (569) | ||||
| Cash provided from operations excluding changes in non-cash working capital and other non-cash items | 7,716 | 4,518 | ||||
| Adjustments: | ||||||
| Distributions from equity-accounted investees | - | 185 | ||||
| Maintenance CAPEX | (746) | (3,133) | ||||
| Lease payments | (100) | (112) | ||||
| Loss on contract settlement | 13 | 10 | ||||
| NCI portion of cash provided from operations excluding changes in non-cash working capital | (95) | - | ||||
| Other non-cash items (1) | 9 | (13) | ||||
| 6,797 | 1,455 | |||||
| Free cash flow attributable to Preferred Shareholders | - | (805) | ||||
| Free cash flow attributable to common shareholders | $ | 6,797 | $ | 650 | ||
(1) Other non-cash items for the three months ended March 31, 2025 represent foreign exchange loss and promissory note income. The three months ended March 31, 2024 includes gain on disposal of an intangible asset, foreign exchange loss and promissory note income.
The following table reconciles adjusted net income from net income, which is the most directly comparable measure calculated in accordance with IFRS:
| For the quarter ended March 31, | ||||||
| (in thousands of Canadian dollars) | 2025 | 2024 | ||||
| Net income | $ | 6,267 | $ | 2,631 | ||
| Adjustments: | ||||||
| Gain on disposal of equity-accounted investment | (1,362) | - | ||||
| Finance recovery on the Preferred Share liability | - | (154) | ||||
| Non-cash impairment of equity-accounted investment | - | 236 | ||||
| Other expense (income) (1) | 22 | (3) | ||||
| Income tax effects of adjusting items | (2) | (3) | ||||
| 4,925 | 2,707 | |||||
| Income attributable to Preferred Shareholders | - | (1,268) | ||||
| Adjusted net income | 4,925 | 1,439 | ||||
| Adjusted net income attributable to common shareholders | 4,892 | 1,435 | ||||
| Adjusted net income attributable to non-controlling interest | 33 | 4 | ||||
| Diluted adjusted earnings per Common Share | $ | 0.06 | $ | 0.03 | ||
(1) Other expense (income) for the three months ended March 31, 2025 relates to foreign exchange loss and loss on contract settlement. Other expense for the three months March 31, 2024 relates to a loss on the disposal of intangible assets, loss on contract settlement and foreign exchange loss.
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.
Such forward-looking information is based on many estimates and assumptions, including material estimates and assumptions, related to the following factors below that, while considered reasonable by the Corporation as at the date of this press release considering management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to:
- Changes in interest rates;
- The DLC Group's ability to maintain its existing number of franchisees and brokers, and to add additional franchisees and brokers;
- 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; and
- Demand 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.
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:
Eddy Cocciollo
President
eddy@dlc.ca
James Bell
EVP, Corporate and Chief Legal Officer
jbell@dlcg.ca
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251178
