Mr. Steven Hudson reports

ECN CAPITAL REPORTS US$0.00 IN ADJUSTED NET INCOME PER COMMON SHARE IN Q3-2023

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

For the three-month period ended Sept. 30, 2023, ECN Capital reported adjusted net income applicable to common shareholders from continuing operations of $500,000 or nil per share (basic) versus $700,000 or nil per share (basic) for the previous three-month period and $11.8-million or five cents per share (basic) for the same period last year.

"Skyline's strategic investment in ECN closed in the quarter, and we began developing the new products and services needed to launch the Champion financing [joint venture] in early 2024," said Steven Hudson, chief executive officer of ECN Capital. "Separately, the corporate simplification plan announced last quarter is on track, and new funding arrangements are in place at Triad and in the works at RV Marine. Triad's new president, Lance Hull, has implemented his 100-day plan, which should result in improved efficiencies and increased originations, and new executive leadership has been added at Source One to drive the next phase of growth. Finally, after further review, we accelerated Triad pool sales in the quarter resulting in another quarter of reduced gains on sale and a subsequent markdown. Our goal in all these initiatives is to put ECN's operating businesses on the best footing to resume growth in 2024 and beyond."

Originations for the three-month period ended Sept. 30, 2023, were $571.5-million, versus $622.0-million in the previous three-month period and $679.5-million for the same period last year. Originations for the three-month period ended Sept. 30, 2023, include $360.6-million of originations from its manufactured housing finance segment and $210.9-million of originations from its recreational vehicle and marine finance segment.

Managed assets as at Sept. 30, 2023, were $4.8-billion versus $4.7-billion as at June 30, 2023, and $4.1-billion as at Sept. 30, 2022.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three-month period ended Sept. 30, 2023, was $24.1-million versus $24.5-million for the previous three-month period and $31.4-million for the same period last year.

Operating expenses for the three-month period ended Sept. 30, 2023, were $26.3-million versus $26.0-million for the previous three-month period and $26.6-million for the same period last year.

Net (loss) income attributable to common shareholders for the three-month period ended Sept. 30, 2023, was ($6.0-million) versus ($30.0-million) for the previous three-month period and $6.3-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 Jan. 2, 2024, to shareholders of record at the close of business on Dec. 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 Jan. 2, 2024, to shareholders of record on the close of business on Dec. 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 semi-annual dividend of 3.198 cents per outstanding mandatory convertible preferred share, Series E, to be paid on Jan. 2, 2024, to shareholders of record on the close of business on Dec. 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 5:30 p.m. ET on Monday, Nov. 13, 2023.

A webcast and conference call will be available.

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

Presentation slides:  at the ECN Capital website

A telephone replay of the conference call will also be available until Dec. 13, 2023, by dialling 1-800-319-6413 and entering the passcode 0562 followed by the number sign.

ECN Capital's management's discussion and analysis for the three- and nine-month periods ended Sept. 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.

We seek Safe Harbor.