Mr. Steven Hudson reports

ECN CAPITAL REPORTS US ($0.05) IN ADJUSTED NET (LOSS) PER COMMON SHARE IN Q4-2023

ECN Capital Corp. today released its financial results for the three-month period and year ended Dec. 31, 2023.

For the three-month period ended Dec. 31, 2023, ECN Capital reported adjusted net (loss) applicable to common shareholders from continuing operations of ($13.5)-million or (five cents) per share (basic) versus $500,000 or zero cents per share (basic) for the previous three-month period and $4.1-million or two cents per share (basic) for the same period last year.

"While 2023 was a difficult year, ECN and its businesses have resumed a growth trajectory in 2024," said Steven Hudson, chief executive officer of ECN Capital. "We have substantially resolved the challenges that affected performance last year and successfully transitioned management with new leadership at both Triad and Source One. I am pleased with the progress we have made and the early results we are experiencing in 2024."

Originations for the three-month period ended Dec. 31, 2023, were $503.1-million, versus $571.5-million in the previous three-month period and $506.8-million for the same period last year. Originations for the three-month period ended Dec. 31, 2023, include $373.8-million of originations from the company's manufactured housing finance segment and $129.3-million of originations from its recreational vehicle and marine finance segment.

Managed assets as of Dec. 31, 2023, were $4.9-billion versus $4.8-billion as at Sept. 30, 2023, and $4.4-billion as at Dec. 31, 2022.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three-month period ended Dec. 31, 2023, was $5.5-million versus $24.1-million for the previous three-month period and $24.6-million for the same period last year.

Operating expenses for the three-month period ended Dec. 31, 2023, were $34.7-million versus $26.3-million for the previous three-month period and $27.9-million for the same period last year.

Net (loss) income attributable to common shareholders for the three-month period ended Dec. 31, 2023, was ($56.0)-million versus ($6.0)-million for the previous three-month period and ($7.9)-million for the same period last year.

CFO transition

ECN Capital also announced today that Michael Lepore, chief financial officer, is stepping down effective March 31, 2024. The company also announced the appointment and promotion of Jacqueline Weber, vice-president, controller, to the role of chief financial officer effective April 1, 2024. Mr. Lepore has agreed to stay on in an advisory capacity for a 90-day period following his departure to assist with the orderly transition of responsibilities to Ms. Weber.

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 April 19, 2024, to shareholders of record at the close of business on April 9, 2024. 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 April 1, 2024, to shareholders of record on the close of business on March 22, 2024. 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 an analyst briefing to discuss these results commencing at 5:30 p.m. ET on Thursday, March 21, 2024.

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

Presentation slides:  ECN Capital website

A telephone replay of the conference call may also be accessed until April 21, 2024, by dialling 1-800-319-6413 and entering the pass code 0727 followed by the pound key.

ECN Capital's management discussion and analysis for the year ended Dec. 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 $4.9-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 floorplan) loans. ECN Capital's 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.