ECN Capital Corp. (TSX: ECN) (“ECN Capital” or the “Company”)
today reported financial results for the three-month period and
year ended December 31, 2023.
For the three-month period ended December 31,
2023, ECN Capital reported Adjusted net (loss) applicable
to common shareholders from continuing operations of
($13.5) million or ($0.05) per share (basic) versus $0.5 million or
$0.00 per share (basic) for the previous three-month period and
$4.1 million or $0.02 per share (basic) for the same period last
year.
“While 2023 was a difficult year, ECN and its
businesses have resumed a growth trajectory in 2024”, said Steven
Hudson, CEO of ECN Capital Corp. “We have substantially resolved
the challenges that affected performance last year and successfully
transitioned management with new leadership at both Triad and
Source One. I am pleased with the progress we have made and the
early results we are experiencing in 2024.”
Originations for the
three-month period ended December 31, 2023 were $503.1 million,
versus $571.5 million in the previous three-month period and $506.8
million for the same period last year. Originations for
the three-month period ended December 31, 2023 include $373.8
million of originations from our Manufactured Housing Finance
segment and $129.3 million of originations from our Recreational
Vehicle and Marine Finance segment.
Managed Assets as of December
31, 2023 were $4.9 billion versus $4.8 billion as at September 30,
2023 and $4.4 billion as at December 31, 2022.
Adjusted EBITDA for the
three-month period ended December 31, 2023 was $5.5 million versus
$24.1 million for the previous three-month period and $24.6 million
for the same period last year.
Operating Expenses for the
three-month period ended December 31, 2023 were $34.7 million
versus $26.3 million for the previous three-month period and $27.9
million for the same period last year.
Net (Loss) Income attributable to common
shareholders for the three-month period ended December 31,
2023 was ($56.0) million versus ($6.0) million for the previous
three-month period and ($7.9) million for the same period last
year.
CFO Transition
ECN Capital also announced today that Michael
Lepore, Chief Financial Officer, is stepping down effective March
31, 2024. The Company also announced the appointment and promotion
of Jacqueline Weber, Vice President, Controller, to the role of
Chief Financial Officer effective April 1, 2024. Mr. Lepore has
agreed to stay on in an advisory capacity for a 90 day period
following his departure to assist with the orderly transition of
responsibilities to Ms. Weber.
Dividends Declared
The Company’s Board of Directors has authorized
and declared a quarterly dividend of C$0.01 per outstanding common
share to be paid on April 19, 2024 to shareholders of record at the
close of business on April 9, 2024. These dividends are designated
to be eligible dividends for purposes of section 89(1) of the
Income Tax Act (Canada).
The Company’s Board of Directors has authorized
and declared a quarterly dividend of C$0.4960625 per outstanding
Cumulative 5-Year Rate Reset Preferred Share, Series C (TSX:
ECN.PR.C) to be paid on April 1, 2024 to shareholders of record on
the close of business on March 22, 2024. These dividends are
designated to be eligible dividends for purposes of section 89(1)
of the Income Tax Act (Canada).
Webcast
The Company will host an analyst briefing to
discuss these results commencing at 5:30 PM (ET) on Thursday, March
21, 2024. The call can be accessed as follows:
Webcast |
https://services.choruscall.ca/links/ecncapitalcorp2023q4.html |
Toll-free dial in |
North America 1-800-319-4610International 1-416-915-3239 |
|
|
Presentation slides |
http://ecncapitalcorp.com/investors/presentations |
A telephone replay of the conference call may
also be accessed until April 21, 2024 by dialing 1-800-319-6413 and
entering the passcode 0727#.
Non-IFRS Measures
The Company’s interim unaudited consolidated
financial statements have been prepared in accordance with
International Financial Reporting Standards (“IFRS”) as issued by
the International Accounting Standards Board (“IASB”) and the
accounting policies we adopted in accordance with IFRS.
The Company believes that certain Non-IFRS
Measures can be useful to investors because they provide a means by
which investors can evaluate the Company’s underlying key drivers
and operating performance of the business, exclusive of certain
adjustments and activities that investors may consider to be
unrelated to the underlying economic performance of the business of
a given period. Throughout this Press Release, management used a
number of terms and ratios which do not have a standardized meaning
under IFRS and are unlikely to be comparable to similar measures
presented by other organizations. A full description of these
measures can be found in the Management Discussion & Analysis
that accompanies the financial statements for the year ended
December 31, 2023.
ECN Capital’s Management Discussion and Analysis
for the year ended December 31, 2023 has been filed on SEDAR
(www.sedar.com) and is available under the investor section of the
Company’s website (www.ecncapitalcorp.com).
About ECN Capital Corp.
With managed assets of US$4.9 billion, ECN
Capital Corp. (TSX: ECN) is a leading provider of business services
to North American based banks, credit unions, life insurance
companies, pension funds and institutional investors (collectively
our “Partners”). ECN Capital originates, manages and advises on
credit assets on behalf of its Partners, specifically consumer
(manufactured housing and recreational vehicle and marine) loans
and commercial (inventory finance and rental) loans. Our Partners
are seeking high quality assets to match with their deposits, term
insurance or other liabilities. These services are offered through
two operating segments: (i) Manufactured Housing Finance, and (ii)
Recreational Vehicles and Marine Finance.
Contact
John
Wimsatt561-389-2334jwimsatt@ecncapitalcorp.com |
Forward-looking Statements
This release includes forward-looking statements
regarding ECN Capital and its business. Such statements are based
on the current expectations and views of future events of ECN
Capital’s management. In some cases the forward-looking statements
can be identified by words or phrases such as “may”, “will”,
“expect”, “plan”, “anticipate”, “intend”, “potential”, “estimate”,
“believe” or the negative of these terms, or other similar
expressions intended to identify forward-looking statements.
Forward-looking statements in this press release include those
relating to the future financial and operating performance of ECN
Capital, the strategic advantages, business plans and future
opportunities of ECN Capital and the ability of ECN Capital to
access adequate funding sources, identify and execute on
acquisition opportunities and transition to an asset management
business. The forward-looking events and circumstances discussed in
this release may not occur and could differ materially as a result
of known and unknown risk factors and uncertainties affecting ECN
Capital, including risks regarding the equipment finance industry,
economic factors, and many other factors beyond the control of ECN
Capital. No forward-looking statement can be guaranteed.
Forward-looking statements and information by their nature are
based on assumptions and involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or industry results, to be materially
different from any future results, performance or achievements
expressed or implied by such forward-looking statement or
information. Accordingly, readers should not place undue reliance
on any forward-looking statements or information. A discussion of
the material risks and assumptions associated with this outlook can
be found in ECN Capital’s December 31, 2023 MD&A and 2022 AIF
Disclosure Document dated March 30, 2023 which have been filed on
SEDAR and can be accessed at www.sedar.com. Accordingly, readers
should not place undue reliance on any forward-looking statements
or information. Except as required by applicable securities laws,
forward-looking statements speak only as of the date on which they
are made and ECN Capital does not undertake any obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events, or otherwise.
Ecn Capital (TSX:ECN)
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