Dealnet Reports 2019 Financial Results

• Fourth quarter loss of $190 thousand
• Re-ignited growth across the entire organization
• Contractual Residual Cash Flow commences in 2022
• Proactive steps taken to minimize impact of COVID-19

TORONTO, April 03, 2020 (GLOBE NEWSWIRE) -- Dealnet Capital Corp. ("Dealnet" or the "Company") (TSX VENTURE: DLS), reported today its financial results for the year ended December 31, 2019. All results are reported under International Financial Reporting Standards ("IFRS") and in Canadian dollars, unless otherwise specified.

The Company reported a net loss from continuing operations of $1,783 thousand or $(0.01) per share for the year ended 2019, versus a net loss of $8,780 thousand or $(0.03) per share for the year ended 2018. The current year loss represents an improvement of 80% over the prior year.

In 2019, the Company demonstrated continued evidence of compounding profitable growth:

• YOY EcoHome’s Profitable Origination Growth of 36% - with favourable and improving cost of funds, a growing dealer base, a dealer-friendly rate card, a knowledgeable sales force, and competitive product offerings, EcoHome has significant room for continued origination growth;
• YOY Net Portfolio Growth of 10.3% - the Company has introduced targeted initiatives to increase originations and reduce prepayments;
• YOY Fee Growth of 37% - future fee growth will be earned by monetizing EcoHome’s 39,000 homeowner customer base through strategic partnerships and relationships;
• YOY Increase in One Contact’s Gross Profit of 19% - higher gross margins and no service level penalties incurred in 2019; and
• YOY Cost Reduction of 15% - having streamlined operations in 2018, the Company has continued maintained a steady overhead of $1 million per month in 2019.

“Dealnet’s current priority is the safety and well-being of its employees during COVID-19 and ensuring the Company’s business continuity plans are carefully executed,” said Brent Houlden, Dealnet’s President and Chief Executive Officer. “We have built a dynamic organization that delivers compounding profitable growth with a war chest of Contractual Residual Cash Flow of $75 million and the rights to End of Term payments on approximately 16,000 leases,” added Mr. Houlden.