Mr. Steven Hudson reports

ECN CAPITAL REPORTS US$0.00 IN ADJUSTED NET INCOME PER COMMON SHARE IN Q2-2023 ANNOUNCED PARTNERSHIP AND STRATEGIC INVESTMENT BY SKYLINE CHAMPION

ECN Capital Corp. has released financial results for the three-month period ended June 30, 2023.

For the three-month period ended June 30, 2023, ECN Capital reported adjusted net income applicable to common shareholders from continuing operations of $700,000 or zero cents per share (basic) versus $1.4-million or one cent per share (basic) for the previous three-month period and $11.3-million or five cents per share (basic) for the same period last year.

"We are very excited to announce our partnership with and strategic investment by Skyline Champion," said Steven Hudson, chief executive officer of ECN Capital. "With Skyline, Triad has the opportunity to partner with a premier builder and retailer in the manufactured housing space. The combination of Skyline and Triad together is a game changer for both the industry and ECN, and will drive substantial growth for both companies."

Originations for the three-month period ended June 30, 2023, were $622.0-million, versus $465.1-million in the previous three-month period and $613.0-million for the same period last year. Originations for the three-month period ended June 30, 2023, include $348.1-million of originations from its manufactured housing finance segment and $273.9-million of originations from its recreational vehicle and marine finance segment.

Managed assets as at June 30, 2023, were $4.8-billion versus $4.7-billion as at March 31, 2023, and $3.8-billion as at June 30, 2022.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three-month period ended June 30, 2023, was $24.5-million versus $23.4-million for the previous three-month period and $25.7-million for the same period last year.

Operating expenses for the three-month period ended June 30, 2023, were $26.0-million versus $24.4-million for the previous three-month period and $28.3-million for the same period last year.

Net (loss) income attributable to common shareholders for the three-month period ended June 30, 2023, was ($30.0-million) versus ($20.9-million) for the previous three-month period and $8.1-million for the same period last year.

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 Oct. 2, 2023, to shareholders of record at the close of business on Sept. 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 Oct. 2, 2023, to shareholders of record on the close of business on Sept. 15, 2023. 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 6:30 p.m. ET on Monday, Aug. 14, 2023. The call will be available as follows.

Webcast:  at the Chorus Call website

Toll-free dial-in:  North America: 1-800-319-4610 or international: 1-416-915-3239

Presentation slides will be available at the ECN Capital website.

A telephone replay of the conference call will also be available until Sept. 14, 2023, by dialling 1-800-319-6413 and entering the passcode 0363 followed by the number sign.

ECN Capital's management's discussion and analysis for the three- and six-month periods ended June 30, 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 $4.8-billion (U.S.), ECN Capital (Toronto Stock Exchange: ECN) 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.

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