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    ECN   CA26829L1076

ECN CAPITAL CORP.

(ECN)
  Report
Delayed Toronto Stock Exchange  -  04:00 2022-06-24 pm EDT
5.880 CAD   +1.55%
06/20ECN Capital Reports Results of Exercise of Conversion Rights for Series C Preferred Shares
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ECN Capital Reports US$0.06 in Adjusted Net Income per Common Share in Q1-2022

05/12/2022 | 04:21pm EDT

Solid Q1 2022 Results Across Businesses

TORONTO, May 12, 2022 (GLOBE NEWSWIRE) -- ECN Capital Corp. (TSX: ECN) (“ECN Capital” or the “Company”) today reported financial results for the three-month period ended March 31, 2022.

For the three-month period ended March 31, 2022, ECN Capital reported Adjusted net income applicable to common shareholders from continuing operations of $14.3 million or $0.06 per share (basic) versus $13.8 million or $0.06 per share (basic) for the previous three-month period and $4.7 million or $0.02 per share (basic) for the same period last year.

“I am extremely pleased with the growth and resilience of our businesses in Q1”, said Steven Hudson, CEO of ECN Capital Corp. “Triad, Source One and KG together produced ahead of plan results driving adjusted operating earnings of $0.06, ahead of our guidance from investor day of $0.04 - $0.05 and putting us well on track to meet or exceed our full year 2022 guidance. I want to congratulate all our team members for producing fantastic results.”

Mr. Hudson continued, “ECN’s businesses are well positioned in this environment to continue to deliver results. Triad is the leader in affordable housing financing solutions, with manufactured housing relative affordability only improving, we expect demand to continue to be robust. Source One has demonstrated tremendous momentum thus far and combined with ECN’s expansion plans driving incremental opportunity is in great shape for continued operating and credit outperformance. KG is well positioned in the market with new products like CCIM continuing to drive growth in 2022. Finally, our portfolio credit performance remains strong making us a partner of choice for our funding partners”

Originations for the three-month period ended March 31, 2022 were $398.0 million including $111.3 million of originations at Source One, versus $299.6 million in the previous three-month period and $182.2 million for the same period last year.

Total Earning Assets Managed and Advisory as at March 31, 2022 were $31.3 billion versus $31.3 billion as at December 31, 2021 and $29.7 billion at March 31, 2021.

Adjusted EBITDA for the three-month period ended March 31, 2022 was $27.5 million versus $28.8 million for the previous three-month period and $16.0 million for the same period last year.

Operating Expenses for the three-month period ended March 31, 2022 were $32.4 million versus $40.7 million for the previous three-month period and $26.6 million for the same period last year.

Net Income attributable to common shareholders for the three-month period ended March 31, 2022 was $4.3 million versus $913.3 million for the previous three-month period and $5.9 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 June 30, 2022 to shareholders of record at the close of business on June 15, 2022. 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 $0.390625 per outstanding Cumulative 5-Year Rate Reset Preferred Share, Series C (TSX: ECN.PR.C) to be paid on June 30, 2022 to shareholders of record on the close of business on June 15, 2022. 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 5:30 PM (ET) on Thursday, May 12, 2022. The call can be accessed as follows:

 
Webcast

https://services.choruscall.ca/links/ecncapitalcorp20220512.html
 
Toll-free dial in

North America 1-800-319-8560
International 1-604-638-5345
 
Presentation slides



http://ecncapitalcorp.com/investors/presentations


A telephone replay of the conference call may also be accessed until June 12, 2022 by dialing 1-800-319-6413 and entering the passcode 8596#.

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-month period ended March 31, 2022.

ECN Capital’s Management Discussion and Analysis for the three-month period ended March 31, 2022 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$31 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 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: 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. 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 March 31, 2022 MD&A and 2021 AIF Disclosure Document dated March 30, 2022 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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Financials
Sales 2022 367 M 284 M 284 M
Net income 2022 52,4 M 40,5 M 40,5 M
Net Debt 2022 - - -
P/E ratio 2022 27,3x
Yield 2022 0,68%
Capitalization 1 454 M 1 126 M 1 126 M
Capi. / Sales 2022 3,96x
Capi. / Sales 2023 3,33x
Nbr of Employees 490
Free-Float 89,9%
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Mean consensus OUTPERFORM
Number of Analysts 8
Last Close Price 5,88 CAD
Average target price 7,50 CAD
Spread / Average Target 27,6%
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Managers and Directors
Steven K. Hudson Chief Executive Officer & Director
Michael Lepore Chief Financial Officer
William W. Lovatt Chairman
Randall Lyle Jeffrey Yasny Chief Investment Officer
Paul J. Stoyan Independent Director
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