Mr. Gordon Reykdal reports

EVERYDAY PEOPLE FINANCIAL REPORTS STRONG FINANCIAL RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023

Everyday People Financial Corp. has released its consolidated financial and operational results for the three and nine months ended Sept. 30, 2023. All figures are in Canadian dollars unless otherwise stated.

"We are very pleased with the financial results of our third quarter and that our overall strategy is coming together," said Gordon Reykdal, executive chairman of Everyday People. "Adding to our revenue cycle management business segment (RCM), this quarter ended with the completion of the acquisition of Arvato Financial Solutions Ltd. (AFS), which was formerly part of the Bertelsmann group of companies.

"The AFS acquisition has evolved into an esteemed partnership of shared values and the common ideals of human centricity. Everyday People has put together a group of meaningful and purposeful companies that are designed to help underserved consumers improve their financial well-being. We believe that everyone deserves a second chance to financially reestablish themselves in an affordable way. We are so proud to have ended the quarter with a new partner who shares in our vision to make a meaningful difference in the industry and the communities we serve while generating value and success for all of our EP stakeholders. The company will change the name of AFS to Everyday People Financial Solutions Ltd. (EP Solutions) before Dec. 31, 2023."

Key financial highlights for the three months ended Sept. 30, 2023:

• Revenue of $9.4-million for the three months ended Sept. 30, 2023, up 92 per cent compared with $4.9-million for the same period in 2022.
• Pro forma revenue of $11.7-million for the three months ended Sept. 30, 2023, assuming EP Solutions was acquired on Jan. 1, 2023.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $1.1-million for the three months ended Sept. 30, 2023, compared with adjusted EBITDA (loss) of $600,000 for the same period in 2022, reflecting a $1.7-million (283-per-cent) increase compared with the same period in 2022.
• Positive adjusted EBITDA, net of finance costs of $600,000 for the three months ended Sept. 30, 2023, compared with adjusted EBITDA (loss) of $1.4-million for the same period in 2022, reflecting a $2-million (143-per-cent) increase compared with the same period in 2022.
• Net loss before taxes of $400,000 for the three months ended Sept. 30, 2023, as compared with a net loss before taxes of $10.4-million for the same period in 2022.
• Pro forma net loss before taxes of $300,000 for the three months ended Sept. 30, 2023, assuming EP Solutions was acquired on Jan. 1, 2023.

Key financial highlights for the nine months ended Sept. 30, 2023:

• Revenue of $28.2-million for the nine months ended Sept. 30, 2023, up 98 per cent compared with $14.2-million for the same period in 2022.
• Pro forma revenue of $36.7-million for the nine months ended Sept. 30, 2023, assuming EP Solutions was acquired on Jan. 1, 2023.
• Adjusted EBITDA of $2.6 million for the nine months ended Sept. 30, 2023, compared with adjusted EBITDA loss of $1.1-million for the same period in 2022, reflecting a $3.7-million (336-per-cent) increase compared with the same period in 2022.
• Positive adjusted EBITDA, net of finance costs of $800,000 for the nine months ended Sept. 30, 2023, compared with adjusted EBITDA (loss) of $2.3-million for the same period in 2022, reflecting a $3.1-million (135-per-cent) increase compared with the same period in 2022.
• Net loss before taxes of $2.3-million for the nine months ended Sept. 30, 2023, as compared with a net loss before taxes of $15.7-million for the same period in 2022.
• Pro forma net loss before taxes of $1.8-million for the nine months ended Sept. 30, 2023, assuming EP Solutions was acquired on Jan. 1, 2023.

Business highlights:

• The company continues to add accretive acquisitions to its revenue cycle management business segment, leveraging its experience as disciplined operators to drive profitability, with the latest acquisitions as follows:
  • On July 19, 2023, the company previously announced that it had entered into a share purchase agreement to acquire 100 per cent of the issued and outstanding shares of Pastdue Credit Solutions Ltd. (PDC). This acquisition is currently under further review and evaluation by management.
  • On July 28, 2023, the company signed a non-binding letter of intent to acquire 100 per cent of the issued and outstanding shares of Zinc, one of the United Kingdom's leading providers of revenue cycle management services.
  • On Oct. 31, 2023, the company closed an acquisition with AFS, now EP Solutions, which was formerly part of the Bertelsmann group of companies, whereby the company entered into a share purchase agreement to acquire 100 per cent of the issued and outstanding shares of EP Solutions. EP Solutions is a provider of accounts receivable management services in the U.K. EP Solutions U.K. primarily focuses on providing financial and collection management services.
• On Aug. 22, 2023, the company appointed Graham Rankin as co-chief executive officer alongside the company's CEO Barret Reykdal, with Mr. Rankin leading the company's RCM business line and Barret leading the company's financial services business line.
• On Oct. 30, 2023, the company successfully secured a listing on the OTCQB Venture Market, a trading platform for emerging and growth-stage companies and making it easier for U.S. and international investors to access and invest in the company. The company continues to trade on the TSX Venture Exchange.

Issuance of restricted share units

The company is pleased to announce that the board of the company has granted an aggregate of 120,000 restricted share units (RSUs) to certain vice-presidents of the company pursuant to its omnibus share incentive plan. The board of the company also approved an additional aggregate of 40,000 RSUs to be granted during the last fiscal quarter of 2023 to certain vice-presidents of the company, pursuant to the plan. Each RSU entitles the recipient to receive, once vested, one common share in the capital of Everyday People. The RSUs shall vest one year from the date of grant. The company's plan provides for the grant of options, RSUs, performance share units (PSUs, and together with the RSUs, share units) and deferred share units (DSU). The plan includes a rolling stock option plan component that sets the maximum number of common shares in the capital of the company reserved for issuance, in the aggregate, pursuant to the exercise of options granted thereunder, together with the number of common shares reserved for issuance pursuant to the settlement of share units and DSUs granted under the plan and the number of common shares reserved for issuance pursuant to any other security-based compensation arrangement of the company, at 10 per cent of the number of common shares issued and outstanding on a non-diluted basis from time to time. In addition, the plan sets the maximum number of common shares reserved for issuance, in the aggregate, pursuant to the settlement of share units and DSUs granted under the plan, at five million common shares. The company's plan was approved by the company's shareholders at its annual and special meeting held July 28, 2023. On Aug, 14, 2023, the plan received final acceptance approval from the TSX Venture Exchange.

Financial statements and management's discussion and analysis

This news release should be read in conjunction with Everyday People's consolidated financial statements and management's discussion and analysis report for the three and nine months ended Sept. 30, 2023, which have been posted under the company's profile on SEDAR+.

About Everyday People Financial Corp.

Everyday People is a revenue cycle management consolidator founded on the belief that everyone deserves a second chance to re-establish and build credit and have access to affordable credit options. The company is headquartered in Edmonton, Alta., Canada, with operations in Canada and the U.K. The company is changing the way revenue cycle management agencies work by enhancing its client services with affordable financial products and literacy programs. Utilizing its own specialized credit facilitation products, Everyday People is helping debtors rebuild their financial health and generational wealth.

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