Ms. Katherine Moradiellos reports

ECN CAPITAL REPORTS US $0.00 IN ADJUSTED NET INCOME PER COMMON SHARE IN Q1-2024 TRIAD RESULTS SIGNIFICANTLY IMPROVED AND ECN AHEAD OF QUARTERLY GUIDANCE

ECN Capital Corp. has released its financial results for the three-month period ended March 31, 2024.

For the three-month period ended March 31, 2024, ECN Capital reported an adjusted net loss applicable to common shareholders from continuing operations of $300,000 or nil per share (basic), versus an adjusted net loss $13.5-million or five cents per share (basic) for the previous three-month period, and an adjusted net income of $1.4-million or one cent per share (basic) for the same period last year.

"Q1 marks the beginning of a rebound from a difficult 2023," said Steven Hudson, chief executive officer of ECN Capital. "I am pleased to deliver results that are ahead of our Q1 guidance of minus one cent to two cents. ECN's businesses have exceeded expectations and are well positioned to deliver growth in 2024. Our management teams are driving operational improvements that will enhance and deepen our relationships with manufacturers, dealers and consumers. We have strong liquidity in 2024 and continue to see excess demand for our unique assets from funding partners, including life insurers, institutional investors, banks and credit unions. ECN is reiterating our full-year 2024 guidance of 10 cents to 16 cents."

Originations for the three-month period ended March 31, 2024, were $468.4-million, versus $503.1-million in the previous three-month period and $465.1-million for the same period last year. Originations for the three-month period ended March 31, 2024, include $302.4-million of originations from the company's manufactured housing finance segment and $165.9-million of originations from its recreational vehicle and marine finance segment.

Managed assets as at March 31, 2024, were $5.2 billion, versus $4.9-billion as at Dec. 31, 2023, and $4.7-billion as at March 31, 2023.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the three-month period ended March 31, 2024, was $21.8-million, versus $5.5-million for the previous three-month period and $23.4-million for the same period last year.

Operating expenses for the three-month period ended March 31, 2024, were $27.8-million, versus $34.7-million for the previous three-month period and $24.4-million for the same period last year.

Net loss attributable to common shareholders for the three-month period ended March 31, 2024, was $8.5-million, versus $56.0-million for the previous three-month period and $20.9-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 July 2, 2024, to shareholders of record at the close of business on June 14, 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 July 2, 2024, to shareholders of record on the close of business on June 14, 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 semi-annual dividend of 6.05 cents per outstanding mandatory convertible preferred share, Series E, to be paid on July 2, 2024, to shareholders of record on the close of business on June 14, 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, May 9, 2024. The call can be accessed on-line or by dialling toll-free 1-844-763-8274 in North America or 1-647-484-8814 internationally.

Presentation slides will be posted on the company's website.

A telephone replay of the conference call may also be accessed until June 9, 2024, by dialling 1-855-669-9658 and entering the passcode 0879.

About ECN Capital Corp.

With managed assets of $5.2-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 and rental) loans. The company'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.