Higher adoption of technology boosts funded volumes
Dominion Lending Centres Inc. (DLCG) reported solid gains for the third quarter of 2024, with mortgage volumes and revenues both showing significant growth compared to the same period last year.
Funded mortgage volumes reached $19.7 billion, an 11% increase over Q3 2023, while revenues grew by 13% to $22.1 million, driven by expanded broker adoption of DLCG’s technology platform, Velocity, and growth in the broker network.
The Velocity platform accounted for 73% of DLCG-submitted mortgage volumes, reflecting an uptick in usage among brokers. DLCG said it has maintained a focus on expanding its technology reach and supporting franchises to sustain this momentum.
DLCG’s operational growth translated into higher earnings, with adjusted EBITDA reaching $12.2 million for the quarter, an increase from $10.1 million in Q3 2023. Net income held steady at $5.3 million due to increased non-cash finance expenses tied to the company’s preferred share liability.
DLCG declared a dividend of $0.03 per Class A common share, totalling $1.4 million in dividend payouts for Q3.
The company has also announced plans to buy out all outstanding preferred shares from KayMaur Holdings and other minority holders for $137 million, using a mix of stock and cash. The acquisition, pending regulatory approval, is expected to close by the end of 2024.
Read more: DLCG buys back $137m shares as part of restructure
In April, DLCG sold its 52% stake in Cape Communications International, which operates as “Impact,” for $3.7 million. The funds from the sale were used to fully repay the junior credit facility, generating a $0.7 million gain due to foreign exchange adjustments.
“As we look ahead, we are focused on our core objectives of recruitment and retention of franchises and brokers, and onboarding of brokers onto Velocity,” DLCG executive chairman and CEO Gary Mauris said in the financial report. “The DLC Group, its franchisees, and its mortgage professionals have worked hard to achieve the continued success, and we feel well positioned to capitalize on market conditions as interest rates decline.”
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