May 14, 2022

ECN Capital reports adjusted net income of $0.06 per

TORONTO, March 01, 2022 (GLOBE NEWSWIRE) — ECN Capital Corp. (TSX: ECN) (“ECN Capital” or the “Company”) today announced its financial results for the three-month period and fiscal year ended December 31, 2021.

For the three-month period ended December 31, 2021, ECN Capital announced Adjusted net earnings attributable to common shareholders from continuing operations of $13.8 million or $0.06 per share (basic) compared to $13.7 million or $0.06 per share (basic) for the prior three-month period and 1, $5 million or $0.01 per share (basic) for the same period last year. For the twelve-month period, the Company declared Adjusted net earnings attributable to common shareholders $45.7 million or $0.19 per share (basic) compared to $17.2 million or $0.07 per share (basic) for the same period last year.

“ECN reported strong fourth quarter results,” said Steven Hudson, CEO of ECN Capital Corp. “Both Triad and KG continued to fire on all cylinders in the fourth quarter and, together with Source One, are ahead of plan so far in 2022, which puts us on track to meet or exceed our guidance. for Investor Day 2022. I want to congratulate all of our team members for delivering fantastic results in 2021 and I’m excited for another year of outperformance in 2022.”

Mr. Hudson continued, “The sale of Service Finance represents a return on investment of approximately 6.5 times our initial investment. We were pleased to offer a special distribution to shareholders of C$7.50 per share in the fourth quarter. We are also delighted to welcome Source One as an operating partner and expect great things from the platform over the next few years.

Origins for the three-month period ended December 31, 2021 were $300 million compared to $299 million in the prior three-month period and $197 million for the same period last year.

Total earning assets under management and advice as of December 31, 2021 were $31.3 billion, compared to $30.1 billion as of September 30, 2021 and $29.7 billion as of December 31, 2020.

Adjusted EBITDA for the three-month period ended December 31, 2021 was $28.8 million compared to $26.8 million for the prior three-month period and $11.4 million for the same period last year.

Functionnary costs for the three-month period ended December 31, 2021 were $40.7 million compared to $25.9 million for the previous three-month period and $24.3 million for the same period last year.

Net income (loss) attributable to common shareholders for the three-month period ended December 31, 2021 was $913.3 million compared to $20.8 million for the previous three-month period and ($29.5) million for the same period last year . For the twelve-month period ended December 31, 2021, the Company reported a net profit (loss) of $955.0 million compared to ($22.9) million for the same period last year .

Dividends declared

The Company’s Board of Directors has authorized and declared a quarterly dividend of $0.01 per outstanding common share to be paid on March 31, 2022 to shareholders of record at the close of business on March 15, 2022. Such dividends are designated as dividends eligible for the purposes of subsection 89(1) of the Income Tax Act (Canada).

The Company’s Board of Directors has authorized and declared a quarterly dividend of $0.390625 per five-year Cumulative Rate Reset Preferred Share, Series C (TSX: ECN.PR.C) to be paid on March 2022 to shareholders of record as of the close of business on March 15, 2022. These dividends are designated as eligible dividends for the purposes of Section 89(1) of the Income Tax Act (Canada).

Webcast

The company will host its analyst briefing to discuss these results beginning at 5:30 p.m. (ET) on Tuesday, March 1, 2022. The call can be accessed as follows:

A telephone replay of the conference call is also available through April 1, 2022 by dialing 1-800-319-6413 and entering passcode 8603#.

Non-IFRS Measures

The Company’s audited 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 adopted by us in accordance with IFRS.

The Company believes that certain non-IFRS measures may be useful to investors because they provide a means by which investors can assess the key underlying drivers of the Company and the operating performance of the business, excluding certain adjustments and activities that investors may view as unrelated to the company’s underlying economic performance over a period of time. Throughout this press release, management has used a number of terms and ratios that do not have standardized meanings under IFRS and are unlikely to be comparable to similar measures presented by other companies. other organizations. A full description of these measures can be found in the MD&A accompanying the financial statements for the year ended December 31, 2021.

ECN Capital’s MD&A for the year ended December 31, 2021 has been filed on SEDAR (www.sedar.com) and is available in the investors section of the company’s website (www.ecncapitalcorp.com).

About ECN Capital Corp.

With assets under management and advice of US$31 billion, ECN Capital Corp. (TSX: ECN) is a leading provider of business services to North American banks, credit unions, life insurance companies, pension funds and investment funds (collectively our “Partners”). ECN Capital creates, manages and advises credit assets on behalf of its partners, in particular secured loan portfolios and credit card portfolios. Our partners seek high quality assets to match their deposits or other liabilities. These services are offered through three operating companies: Triad Financial Services, Source One Financial Services and The Kessler Group.

Contact

John Wimsatt
561-389-2334
jwimsatt@ecncapitalcorp.com

Forward-looking statements

This release includes forward-looking statements regarding ECN Capital and its business. These statements are based on the current expectations and views of future events of the management of ECN Capital. In some instances, forward-looking statements may be identified by words or phrases such as “may”, “will”, “expect”, “plan”, “anticipate”, “intend”, ” potential”, “estimate”, “believe” or the negative form of these terms, or other similar expressions intended to identify forward-looking statements. Forward-looking statements in this press release include those relating to ECN Capital’s future financial and operating performance, ECN Capital’s strategic advantages, business plans and future opportunities, and ECN Capital’s ability to access to adequate sources of financing, to identify and execute on acquisition opportunities and transition to an asset management activity. The forward-looking events and circumstances discussed in this release may not occur and may differ materially due to known and unknown risk factors and uncertainties affecting ECN Capital, including risks relating to the equipment finance industry, economic 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 that could cause our actual results, performance or achievements, or the results of the industry, are materially different from future results, performance or results. achievements expressed or implied by such forward-looking statements 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, 2021 MD&A and 2020 Annual Information Form Information Statement dated March 31, 2021 which have been filed on SEDAR. and can be viewed 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 they are made, and ECN Capital undertakes no obligation to publicly update or revise any forward-looking statement, whether whether as a result of new information, future events or otherwise.