Mr. Gary Mauris reports

DLC RELEASES Q2-2023 RESULTS; YTD FUNDED VOLUMES OF $24.6 BILLION

Dominion Lending Centres Inc. has released its financial results for the three months ended June 30, 2023, and the six months ended June 30, 2023. For complete information, readers should refer to the interim financial statements and management's discussion and analysis, which are dated Aug. 9, 2023, and available on SEDAR+ and on the corporation's website.

Dominion Lending includes the corporation and its three main subsidiaries: MCC Mortgage Centres Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc.

Second quarter 2023 summary:

• Q2 2023 financed volumes of $14.8-billion, representing a 32-per-cent decrease as compared with the three months ended June 30, 2022;
• Q2 2023 revenue of $15.5-million, representing a 29-per-cent decrease as compared with Q2 2022;
• Q2 2023 adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $5.2-million as compared with $13.4-million during Q2 2022, representing a 61-per-cent decrease over the prior-year period;
• The corporation incurred a net loss for Q2 2023 of $3.2-million as compared with net income of $6.7-million in Q2 2022, primarily due to a non-cash finance expense on the preferred share liability of $6.2-million compared with an expense of $2.5-million in Q2 2022;
• The corporation declared a quarterly dividend of three cents per Class A common share, resulting in a dividend payment of $1.4-million in Q2 2023;
• During Q2 2023, the corporation made repurchases under the normal course issuer bid of 70,167 common shares at an average price of $2.57 per share.

Gary Mauris, executive chairman and chief executive officer, commented: "The Canadian real estate market continued to face headwinds in Q2 2023 largely due to increased interest rates contributing to lower housing transactions across the market, resulting in a decrease in our funded volumes of 32 per cent from Q2 2022. Our adjusted EBITDA margins have suffered due to our fixed-cost structure, but margins did improve in Q2 2023 rising to 33 per cent from 23 per cent in [first quarter] 2023. We anticipate seeing further recovery in our margins and mortgage volumes as we expect the market to stabilize over the next 12 to 18 months. We will continue to focus on the on-boarding of our brokers onto our proprietary connectivity platform Velocity and expanding our network of mortgage professionals and franchises through continued targeted recruiting initiatives."

Selected consolidated financial summary

Below is the summary of financial results for the three and six months ended June 30, 2023, and June 30, 2022.

About Dominion Lending Centres Inc.

Dominion Lending is Canada's leading network of mortgage professionals. Dominion Lending 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. Dominion Lending's extensive network includes approximately 7,980 agents and approximately 541 locations. Headquartered in British Columbia, Dominion Lending was founded in 2006 by Gary Mauris and Chris Kayat.

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