Mr. James Bell reports

DLC RELEASES Q3-2023 RESULTS; YTD FUNDED VOLUMES OF $42.3 BILLION; MANAGEMENT CHANGE

Dominion Lending Centres Inc. has released its financial results for the three (Q3 2023) and nine months ended Sept. 30, 2023. For complete information, readers should refer to the interim financial statements and management discussion and analysis which are dated November 7, 2023 and available on SEDAR and on the Corporation's website. 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").

Q3-2023 Summary

• Q3-2023 funded volumes of $17.7 billion, representing a 9% decrease as compared to the three months ended September 30, 2022 ("Q3-2022");
• Q3-2023 revenue of $19.6 million, representing a 9% increase as compared to Q3-2022, primarily from an increase in Newton revenues from lender renewals and increased Velocity adoption;
• Q3-2023 Adjusted EBITDA of $10.1 million as compared to $9.4 million during Q3-2022, representing an 8% increase over the prior year period;
• The Corporation recorded net income for Q3-2023 of $5.3 million as compared to net income of $29.4 million in Q3-2022, primarily due to a non-cash finance expense on the Preferred Share Liability of $0.9 million compared to a recovery of $27.8 million in Q3-2022;
• 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 Q3-2023; and
• During Q3-2023, the Corporation made repurchases under the normal-course issuer bid ("NCIB") of 15,550 Common Shares at an average price of $2.15 per share.

Gary Mauris, Executive Chairman and CEO, commented, "With our continued focus to onboard our brokers onto our connectivity platform Velocity, we have seen an increase in revenues and adjusted EBITDA in Q3-2023. This increase in revenues resulted in an increase in our adjusted EBITDA margins to 52% in Q3-2023, due to our fixed cost structure. However, our funded mortgage volumes remain lower than Q3-2022 by 9%. While we are seeing improvements in our funded mortgage volumes in Q3-2023, the Canadian real estate market continues to face headwinds largely caused by increased interest rates contributing to lower housing transactions. We anticipate seeing further recovery in our margins and mortgage volumes, as we expect the market to stabilize over the next 12-18 months."

During the three months ended September 30, 2023, the Corporation saw an increase in revenues over the three months ended September 30, 2022, from higher Newton revenues primarily due to an increase in Velocity adoption and lender contract renewals. However, headwinds continue to impact the Canadian housing market primarily by decreasing Canadian housing sales activity due largely to increased interest rates, as evidenced by a decrease in funded mortgage volumes during the three and nine months ended September 30, 2023, compared to the previous year periods. The decrease in funded volumes has resulted in a decrease in revenues during the nine months ended September 30, 2023.

As the Corporation's operating expenses are largely fixed in nature and are not proportionate to changes in revenues, changes in the Corporation's revenues have a more pronounced impact to adjusted income, adjusted EBITDA and adjusted EBITDA margins. As such these metrics have increased with higher revenues during the three months ended September 30, 2023 and have decreased during the nine months ended September 30, 2023, when compared to the previous year periods.

Income from operations during the three months ended September 30, 2023 increased from higher revenues, partly offset by higher operating expenses; and decreased during the nine months ended September 30, 2023 from lower revenues and higher operating expenses. The Corporation's operating expenses have increased during the three and nine months ended September 30, 2023 when compared to the previous year periods, primarily due to:

• higher advertising fund expenses from timing of expenditures;
• an increase in advertising expenses from increased event costs (associated with the recommencement of certain corporate events); and,
• higher personnel costs.

The increase in operating expenses combined with an increase in other expenses has driven a decrease in net income during the three and nine months ended September 30, 2023, compared to the previous year periods. In the prior year period, the Corporation recognized a revaluation recovery of $33.2, which contributed to net income during the three months ended September 30, 2022. Comparatively, the third quarter of 2023 recognized a revaluation recovery of $3.5 million, resulting in lower net income during the three months ended September 30, 2023, when compared to the third quarter of 2022. The Dividend Entitlement (defined in our MD&A dated November 7, 2023) changes due to updates in our outlook and forecasts. Refer to the Preferred Shares section in our MD&A dated November 7, 2023 for further information. This decrease in net income is partly offset by an impairment loss recognized in 2022 and an increase in income from equity-accounted investments in 2023.

Free cash flow of the Corporation has decreased during the three and nine months ended September 30, 2023 when compared to the same periods in the previous year, primarily from an increase in maintenance capital expenditures, as the Corporation continues its franchise renewal efforts, and increased operating expenses.

Management Change

Effective November 20, 2023, Robin Burpee (Co-CFO) will be leaving the Corporation and Geoff Hague will transition to Chief Financial Officer from Co-CFO. Geoff joined DLC in 2009 and was appointed Chief Financial Officer in January 2014. He was appointed Co-CFO of the Corporation in January 2021, when it amalgamated with Founders Advantage Capital Corp. ("FAC"). Robin was appointed Chief Financial Officer of FAC in May 2019 and helped transition the Corporation from FAC to Dominion Lending Centres Inc. James Bell, Co-President of the Corporation commented: "On behalf of the management team, board of directors and shareholders, I'd like to thank Robin for her many contributions over the last four years. Robin is a talented finance professional, and an excellent teammate and we wish her much success in her next role. Notwithstanding Robin's departure, the finance team at DLCG is in good hands as Geoff Hague will continue as Chief Financial Officer of the Corporation".

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 8,000 agents and over 520 locations. Headquartered in British Columbia, DLC was founded in 2006 by Gary Mauris and Chris Kayat.

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