• Revenue increased by 63% to $30.6 million in the first half of 2024.

• Net income before tax increased by 212% to $2.0 million in the first half of 2024.

• Adjusted EBITDA increased by 277% to $5.5 million in the first half of 2024.

• Net working capital improved by $4.1 million in the first half of 2024.

• Reduced long term debt of $2.5 million in the first half of 2024.

Edmonton, Alberta--(Newsfile Corp. - August 13, 2024) - Everyday People Financial Corp. (TSXV: EPF) ("Everyday People" or the "Company"), a financial service provider, is pleased to announce its consolidated financial results for the three and six months ended June 30, 2024. All figures are in Canadian dollars unless otherwise stated.

"Our exceptional financial performance in the first half of 2024 highlights our commitment to driving growth through our three business pillars and enhancing shareholder value," said Gordon Reykdal, Executive Chairman of Everyday People. "We are also pleased to report a $2.5 million reduction in our long-term debt in the first half of 2024, with an additional $1.6 million decrease already achieved in Q3 2024 to date. Going forward we anticipate reducing our long-term debt by another $4.9 million by the end of 2024."

Key Financial Comparable Metrics relative to Q2 2023, respectively

• Revenue:  increased by 46% to $15.8 million in Q2 2024, and increased by 63% to $30.6 million for year-to-date 2024, representing record performance for both periods.

• Adjusted EBITDA1: increased by 142% to $2.4 million in Q2 2024, and increased by 277% to $5.5 million for year-to-date 2024.

• Net income before taxes: increased by 192% to $0.6 million in Q2 2024, and increased by 212% to $2.0 million for year-to-date 2024.

• Long-Term Debt: reduced by $2.0 million in Q2 2024, and by $2.5 million for year-to-date 2024.

Management Commentary and Financial Results per Business Pillar

Building on a very strong Q1, the Company is pleased to deliver another solid quarter and anticipates a strong close to 2024 with significant milestones being achieved.

With the changes the Company's EP Homes business model, the Company is excited to now have all three business pillars contributing on a non leveraged basis.

The Company's Three Business Pillars

• Revenue Cycle Management: continues to produce strong financial results with significant room to grow organically and through self funded acquisitions with a deep pipeline of opportunities in the industry. These are the oldest operating businesses in the Company dating back to 2006.

  • Revenue was $12.2 million Q2 2024 as compared to $8.5 million for the same period in 2023, and $24.4 million as compared to $14.9 million for the six months ending June 30.

  • Direct Costs were $3.3 million Q2 2024 as compared to $2.3 million for the same period in 2023, and $6.4 million as compared to $4.3 million for the six months ending June 30.

• EP Financial Services: has now started to contribute in a meaningful way with the introduction of new financial services and prepaid credit card revenues and fees. It is anticipated that this pillar will continue to increase in both top and bottom line in the upcoming quarters, but more significantly with the anticipated rollout and introduction of two new platforms in the fall of 2024 and early 2025.

  • Revenue was $1.2 million Q2 2024 as compared to $0.1 million for the same period in 2023, and $2.4 million as compared to $0.1 million for the six months ending June 30.

  • Direct Costs were $0.1 million Q2 2024 as compared to $0.1 million for the same period in 2023, and $0.2 million as compared to $0.2 million for the six months ending June 30.

• EP Homes: shift in business model is anticipated to produce significant improvement to the pre-tax income statement, adjusted EBITDA and the balance sheet. It is also anticipated that EP Homes will have a positive contribution to pre-tax income and adjusted EBITDA for the balance of 2024. EP Homes will primarily earn its income from fees and commissions and no debt. EP Homes will fund all of the borrowed down payments to customers off its balance sheet and incur no debt.
  As part of the Company's strategic shift in the EP Homes' business plan, the Company plans to sell all its EP Homes inventory and pay off all credit facilities associated to the EP Homes inventory within the next 12 months. This is expected to impact the Company positively from a cash flow perspective and allow the Company to reduce its current liabilities, resulting in a net working capital increase.

  • Debt reduction was $2.0 million Q2 2024 and $2.5 million for the six months ending June 30 reducing interest expense annually by $325,000.

  • Projected additional debt reduction in Q3 and Q4 is anticipated to be at $4.0 million, and $2.4 million respectively.

  • Revenue was $2.4 million Q2 2024 as compared to $2.2 million for the same period in 2023, and $3.8 million as compared to $3.8 million for the six months ending June 30.

  • Direct Costs were $2.3 million Q2 2024 as compared to $2.0 million for the same period in 2023, and $3.5 million as compared to $3.2 million for the six months ending June 30.

  • Adjusted EBITDA was a loss of $0.1 million Q2 2024 as compared to a positive contribution $0.2 for the same period in 2023, and $0.03 million as compared to $0.5 million for the six months ending June 30.

  • Net loss before tax was $0.4 million Q2 2024 as compared to $0.1 million for the same period in 2023, and $0.6 million as compared to $0.1 million for the six months ending June 30.

1Adjusted EBITDA