Find out if it reversed last year's loss
Dominion Lending Centres Inc. (DLCG), Canada’s leading mortgage broker network, reported a rebound in its financial results for the second quarter of 2024 after posting losses a year earlier.
The BC-headquartered company recorded net income of $4.1 million for the quarter, compared to a $3.2 million net loss in the prior-year period. Adjusted EBITDA, a key profitability metric, rose to $8.5 million in Q2 2024, up from $5.2 million a year earlier.
It also reported a 14% increase in funded mortgage volumes to $16.9 billion in Q2 2024, along with a 21% jump in revenues to $18.8 million compared to the same period in 2023.
In addition to the strong financial performance, Dominion Lending Centres also declared a quarterly dividend of $0.03 per common share, resulting in a $1.4 million payout.
The company noted that the increase in revenues and profitability was driven by higher funded mortgage volumes, as well as a decrease in non-cash finance expenses related to its preferred share liability.
Additionally, Dominion sold its 52% interest in Cape Communications International for $3.7 million. The proceeds were used to fully repay the junior credit facility. The sale resulted in a $0.7 million gain, primarily due to cumulative amounts from foreign exchange translations previously recognized in other comprehensive income being reclassified to income.
“We were pleased to report another consecutive growth quarter,” DLCG executive chairman and CEO Gary Mauris said in the media release.
Mauris said the company continues to focus on recruiting and retaining franchises and brokers, as well as onboarding them on to its “Velocity” connectivity platform.
“With the proven success of these programs and initiatives, we feel well positioned for the future as interest rates decrease,” he said.
Dominion Lending Centres operates through its subsidiaries: MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc., and Newton Connectivity Systems Inc. The company’s extensive network includes over 8,500 agents across more than 500 locations nationwide.
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