ECN Capital Corp. (TSX: ECN) (“ECN Capital” or the “Company”) today
reported financial results for the three-month period ended June
30, 2021.
For the three-month period ended June 30, 2021,
ECN Capital reported Adjusted net income applicable to
common shareholders from continuing operations of $29.5
million or $0.12 per share (basic) versus $19.7 million or $0.08
per share (basic) for the previous three-month period and $17.0
million or $0.07 per share (basic) for the same period last
year.
”ECN reported an excellent second quarter at
$0.12 per share, which is an increase of ~70% year to year and is
in-line with our strong estimates from investor day”, said Steven
Hudson, CEO of ECN Capital Corp. “Each of the businesses continue
to perform exceptionally and I want to thank all of our team
members for their contributions.” Mr. Hudson continued, “While we
are announcing the sale of Service Finance, this quarter is a good
demonstration of the power of both Triad and KG which grew Q2
adjusted operating earnings before tax by 82% and 43% year to year,
respectively. ECN looks forward to the future with these two
fantastic businesses forming the base for our next phase of
growth.”
Originations for the
three-month period ended June 30, 2021 were $913 million versus
$662 million in the previous three-month period and $676 million
for the same period last year.
Total Earning Assets Managed and
Advisory as at June 30, 2021 were $33.5 billion, versus
$33.0 billion as at March 31, 2021 and $33.3 billion at June 30,
2020.
Adjusted EBITDA for the
three-month period ended June 30, 2021 was $48.2 million versus
$35.5 million for the previous three-month period and $31.3 million
for the same period last year.
Operating Expenses for the
three-month period ended June 30, 2021 were $43.9 million versus
$38.6 million for the previous three-month period and $29.9 million
for the same period last year.
Net Income (loss) attributable to common
shareholders for the three-month period ended June 30,
2021 was $14.9 million versus $5.9 million for the previous
three-month period and ($1.8) million for the same period last
year.
Dividends Declared
The Company’s Board of Directors has authorized
and declared a quarterly dividend of $0.03 per outstanding common
share to be paid on September 30, 2021 to shareholders of record at
the close of business on September 15, 2021. 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 declared the
following dividends on ECN Capital’s preferred shares:
- A quarterly dividend of $0.40625
per outstanding Cumulative 5-Year Rate Reset Preferred Share,
Series A (TSX: ECN.PR.A) payable on September 30, 2021 to
shareholders of record on the close of business on September 15,
2021. These dividends are designated to be eligible dividends for
purposes of section 89(1) of the Income Tax Act (Canada).
- A quarterly dividend of $0.390625
per outstanding Cumulative 5-Year Rate Reset Preferred Share,
Series C (TSX: ECN.PR.C) payable on September 30, 2021 to
shareholders of record on the close of business on September 15,
2021. 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 its analyst briefing to
discuss these results commencing at 6:00 PM (ET) on Tuesday, August
10, 2021. The call can be accessed as follows:
Webcast |
http://services.choruscall.ca/links/ecncapitalcorp20210810.html |
Toll-free dial in |
North America 1-800-319-8560International 1-604-638-5345 |
Passcode: |
47234 # |
Presentation slides |
http://ecncapitalcorp.com/investors/presentations |
A telephone replay of the conference call may
also be accessed until September 10, 2021 by dialing 1-800-319-6413
and entering the passcode 7456#.
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 three and
six-month periods ended June 30, 2021.
ECN Capital’s Management Discussion and Analysis
as at and for the three and six-month periods ended June 30, 2021
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 and advised assets of US$33
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 investment funds
(collectively our “Partners”). ECN Capital originates, manages and
advises on credit assets on behalf of its Partners, specifically
unsecured loan portfolios, secured loan portfolios and credit card
portfolios. Our Partners are seeking high quality assets to match
with their deposits or other liabilities. These services are
offered through three operating businesses: Service Finance, Triad
Financial Services and The Kessler Group.
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 June 30, 2021 MD&A and 2020 AIF
Disclosure Document dated March 31, 2021 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.
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