Mr. Bryan Pang reports

SOLUTION FINANCIAL REPORTS Q3 2024 FINANCIAL RESULTS

Solution Financial Inc. has released its financial results for the third quarter ending July 31, 2024. The results highlight continued progress in the company's strategic initiatives, particularly the continuing buildout of its local market leasing program, which contributed to incremental growth over the first and second quarters and marked a substantial improvement over 2023.

Earnings highlights for the quarter:

• Revenues were $4.5-million compared with $3.1-million in the comparative quarter.
• Net profit for the quarter was $181,158 compared with net income of $148,995 in the comparative quarter of 2023.
• Adjusted net income increased to $298,162 compared with $136,707 during the comparative quarter.
• Total leasing portfolio increased 2 per cent to $27.4-million during the quarter.

Operational highlights for the quarter:

• The company's recently introduced local leasing program contributed to lease origination volumes growing 18 per cent over the second quarter of the year (105 per cent over the comparative quarter) to $7.5-million.
• The company repaid the convertible debentures in full on their maturity on July 28, 2024.

"We are please to report that our performance in the third quarter reflects the positive momentum from our expanded local leasing program. Lease originations have seen an 18-per-cent increase over the second quarter and an impressive 105 per cent compared to the same period last year, reaching $7.5-million," stated Bryan Pang, chief executive officer of Solution Financial. "Our strategic focus on developing the local leasing program has yielded sustained growth and resilience, even amidst a challenging economic environment. The recent improvement in interest rates presents an exciting opportunity for us to further expand our market share.

"We are very grateful for our banking partners who share our vision and approach and have been instrumental in supporting us to navigate the market and reinforce our profitability. We are optimistic about our potential to capitalize on these conditions and remain committed to our strategy of driving long-term growth and profitability," Mr. Pang concluded.

Financial results

Solution is reporting net income of $181,158, or 0.03 cent per share, for the quarter ending July 31 2024. This compares with net income of $148,995, or 0.02 cent per share, for the quarter ending July 31, 2023.

Adjusted net income, which is more reflective of actual cash earnings, for the quarter ending July 31, 2024, was $298,162, or $0.03 cent per share, compared with $136,707, or 0.02 cent per share for the quarter ending July 31, 2023. Adjusted net income excludes the non-cash accretion expense related to the convertible debentures and right of use assets of $34,760, income tax provision of $56,000 and amortization of $26,244.

Lease portfolio

At July 31, 2024, Solution had 321 vehicles in its lease portfolio, a net increase of 19 vehicles over the quarter to bring the total lease portfolio to $27.4-million.

At July 31, 2024, the average remaining lease term for the portfolio was 1.9 years, weighted by net book value for each vehicle. At July 31, 2024, Solutions' 321 leases were generating annualized gross rental and lease cash flows of approximately $7.7-million.

About Solution Financial Inc.

Solution Financial commenced operations in 2004 and specializes in sourcing and leasing luxury and exotic vehicles, yachts, and other high-value assets. Solution works with a select group of luxury automotive and marine dealerships providing lending solutions to clients who prefer more flexible leasing options than those traditionally offered by banks and other lease providers. Typical customers include new immigrants, business owners and international students who tend to upgrade their vehicles more frequently than traditional lease agreements allow. Solution Financial provides a unique leasing experience whereby it partners with its clients to help source limited edition and difficult to acquire vehicles, as well as providing white glove services to clients for insuring, maintaining, upgrading and reselling their vehicles.

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