Mr. Steven Hudson reports

ECN CAPITAL REPORTS US$0.01 IN ADJUSTED NET INCOME PER COMMON SHARE IN Q1-2023

ECN Capital Corp. has released its financial results for the three-month period ended March 31, 2023.

For the three-month period ended March 31, 2023, ECN Capital reported adjusted net income applicable to common shareholders from continuing operations of $1.4-million or one cent per share (basic), versus $4.1-million or two cents per share (basic) for the previous three-month period and $3.4-million or one cent per share (basic) for the same period last year.

"The previously announced board approved review of strategic alternatives is ongoing and designed to maximize long-term growth and value for shareholders," said Steven Hudson, chief executive officer of ECN Capital. "We anticipate reaching a conclusion and announcing results by August when we release our Q2 results. Triad continued to take share in Q1 with 11-per-cent origination growth excluding portfolio purchases in Q1 2022 and new products growing to more than 30 per cent of total originations. Source One laid the groundwork to execute on ECN's growth playbook with licensing, servicing, geographic expansion, and IT and systems investments. After adding a new funding partner in Q2 and the launch of several new products, we see a tremendous opportunity to take share in the coming quarters. Finally, inventory finance balances grew 112 per cent in Q1 2023 compared to Q1 2022 as both Triad and Red Oak have successfully added dealers and manufacturers. ECN remains the only source for these high-quality credit assets at scale for funding partners, including life insurance companies, credit investors, banks and credit unions."

Originations for the three-month period ended March 31, 2023, were $465.1-million, versus $506.8-million in the previous three-month period and $398.0-million for the same period last year. Originations for the three-month period ended March 31, 2023, include $286.2-million of originations from the company's manufactured housing finance segment and $178.8-million of originations from its recreational vehicle and marine finance segment.

Managed assets as at March 31, 2023, were $4.7-billion, versus $4.4-billion as at Dec. 31, 2022, and $3.2-billion as at March 31, 2022.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three-month period ended March 31, 2023, was $23.4-million, versus $24.6-million for the previous three-month period and $13.6-million for the same period last year.

Operating expenses for the three-month period ended March 31, 2023, were $24.4-million, versus $27.9-million for the previous three-month period and $20.9-million for the same period last year.

Net loss attributable to common shareholders for the three-month period ended March 31, 2023, was $20.9-million, versus a net loss of $7.9-million for the previous three-month period and a net income of $4.3-million for the same period last year.

Conference call

As a result of the previously announced review of strategic alternatives, ECN will not hold its usual conference call to review the first quarter 2023 results.

Dividends declared

The company's board of directors has authorized and declared a quarterly dividend of one cent per outstanding common share to be paid on June 30, 2023, to shareholders of record at the close of business on June 15, 2023. 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 49.60625 cents per outstanding cumulative five-year rate reset preferred share, Series C, to be paid on June 30, 2023, to shareholders of record on the close of business on June 15, 2023. These dividends are designated to be eligible dividends for purposes of Section 89(1) of the Income Tax Act (Canada).

ECN Capital's management discussion and analysis for the three-month period ended March 31, 2023, has been filed on SEDAR and is available under the investor section of the company's website.

About ECN Capital Corp.

With managed assets of $4.7-billion (U.S.), ECN Capital is a leading provider of business services to North American based banks, credit unions, life insurance companies, pension funds and institutional investors. 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 or floor plan) loans. Its 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.

We seek Safe Harbor.