Home » Picture Gallery, Software » Dealnet Reports Continued Growth in Consumer Finance Receivables Driven by Strong Origination Volumes in the Second Quarter of 2016

Dealnet Reports Continued Growth in Consumer Finance Receivables Driven by Strong Origination Volumes in the Second Quarter of 2016




TORONTO, ONTARIO — (Marketwired) — 08/29/16 — Dealnet Capital Corp. (“Dealnet” or the “Company”) (TSX VENTURE: DLS), reported today its second quarter 2016 results for the three and six month periods ending June 30, 2016. All results are reported under International Financial Reporting Standards (“IFRS”) and in Canadian dollars, unless otherwise specified.

Second Consecutive Quarter of Record Origination Volumes of $20.5 Million as a result of organic growth through strategic partnerships with manufacturers and distributors. Dealnet–s active dealer count as of June 30, 2016 was over 330.

Consumer Finance Receivables increased 21% to $100.6 Million from $83 Million in the prior quarter. This increase in receivables is a result of accelerated originations across EcoHome Financial and One Dealer Financial, the company–s captive lending platforms.

Consumer Finance Interest Income of $2.46 Million compared to $1.08 Million in the prior quarter. The increase from the prior quarter includes a full quarter of interest income from EcoHome.

Consumer Finance Business reported a $0.4 Million segment profit, compared to a $0.1 Million loss in the prior quarter.

Received Cash Proceeds of $4.1 Million from the exercise of common share purchase warrants during the quarter. Since January 1, 2016 to the date of this release, the Company has received a total of $8.1 Million from the exercise of 26.7 Million common share purchase warrants. Included in this amount is approximately $1.4 Million from Management and Directors of the Company.

“With EcoHome fully integrated, our Consumer Finance business, as expected, surpassed the $100 Million milestone this quarter and is now profitable on a segmented basis. We continue to onboard new dealers across Canada driven by both partnerships with manufacturers and distributors of home improvement products as well as new dealer additions,” stated Michael Hilmer, CEO of Dealnet. “This month we announced significant new funding facilities which reduces our blended cost of funding to less than 4% based on current market yields. In addition, we completed a securitization with one of our new funders subsequent to the quarter. I am extremely pleased with the hard work of our team and the support of our partners enabling us to achieve all of our goals in the quarter and look forward to the Company realizing the economic benefits of our growth trajectory.”

BUSINESS AND OPERATIONAL HIGHLIGHTS

Additionally, on August 24, 2016, the Company–s mobile messaging business purchased various mobile messaging contracts from an arms-length party for total consideration of approximately $900,000 including 543,921 common shares valued at $300,000. The shares issued as part of the transaction are subject to a hold period until December 25, 2016. These messaging contracts represented a strategic opportunity for the mobile messaging segment and are expected to add annual recurring revenues and EBITDA of approximately $700,000 and $300,000, respectively.

Q2 2016 CONFERENCE CALL DETAILS:

Forward-Looking Statement

This news release contains certain “forward-looking information” within the meaning of applicable securities law including statements regarding the Company. Forward-looking information is frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “would”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur. These statements are only predictions. Forward-looking information is based on the opinions and estimates of management at the date the information is provided, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company–s Management–s Discussion and Analysis. The Company undertakes no obligation to update forward-looking information if circumstances or management–s estimates or opinions should change, unless required by law. The reader is cautioned not to place undue reliance on forward-looking information.

About Dealnet Capital Corp.

Dealnet is an engagement enabled consumer finance company that is initially focused on home improvement finance solutions including heating ventilation and air conditioning financing and leasing. Dealnet leverages its large scale customer service and engagement technology platform to attract home improvement dealers by providing front and back office services to them resulting in dealer origination growth.

For additional information please visit .

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts:Dealnet Capital Corp.Michael HilmerCEO+1-416-420-5529Dealnet Capital Corp.Nicole MarchandInvestor Relations+1-416-428-3533





Posted by on 29. August 2016. Filed under Picture Gallery, Software. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Archive

© 2017 So-Co-IT. All Rights Reserved. Log in - Copyright by LayerMedia


Blogverzeichnis - Blog Verzeichnis bloggerei.de Blog Top Liste - by TopBlogs.de Bloggeramt.de blogoscoop