Dealnet Reports Record Originations, Consumer Finance Receivables and Revenues in First Quarter of 2016

TORONTO, ONTARIO--(Marketwired - May 30, 2016) - Dealnet Capital Corp. ("Dealnet" or the "Company") (TSX VENTURE:DLS), reported today its first quarter 2016 results for the three months ending March 31, 2016. All results are reported under International Financial Reporting Standards ("IFRS") and in Canadian dollars, unless otherwise specified.

• Quarterly originations of $12.1 Million, including only six weeks of EcoHome Financial volumes.
• Consumer finance receivables increased to $83 Million ($1.9 Million on December 31, 2015) and $5.7 Million of cash reserves held as underwriting security.
• Narrowed operating loss of $1.9 Million, an improvement of 36% over the prior quarter.
• Outstanding consumer finance agreements now total 19,274.
• Record quarterly engagement revenue of $6.5 Million and gross margin increased to 37.2%.

Record Origination Volumes of $12.1 Million as result of organic growth as Dealnet ramped up its Consumer Finance division with the addition of new dealers originating material volumes. EcoHome Financial also contributed six weeks of better than expected origination volume during the quarter.

Consumer Finance Receivables increased to $83 Million and cash reserves held as security increased to $5.7 Million. This increase in receivables is a result of the acquisition of EcoHome Financial and strong organic growth in both One Dealer Financial Services and EcoHome Financial.

Narrowed Operating Loss to $1.9 Million, a 36% improvement over prior quarter's loss of $3.0 Million. This is inclusive of the non-cash items of depreciation, amortization and stock based compensation, however excludes business acquisition and transaction costs, changes in the fair value of financial instruments, finance costs and income taxes. This reduction is the result of strong growth in the businesses and achievement of operational synergies. EcoHome Financial contributed six weeks of positive earnings to the quarter.

"During our first quarter, we realized a significant improvement in financial performance in all operating businesses," stated Michael Hilmer, CEO of Dealnet. "Our Consumer Finance Division continues to accelerate as new dealers and manufacturers are selecting Dealnet as their consumer finance partner. Our engagement powered finance approach to the market is resonating well and we continue to attract more home improvement dealers leading to significant volumes of longer duration leases and loans. At the same time our underwriting capacity is expanding and we are benefitting from improving cost of funds."