In the news release, CLIFFSIDE CAPITAL LTD. REPORTS INCREASED
NET INCOME IN 2020, issued 21-Apr-2021 by Cliffside Capital Ltd. over CNW,
we are advised by the company to clarify that "Net financial
revenue before credit losses grew in excess of 10% to $7.4 million excluding one-time gain of
$0.8 million included in 2019." The
complete, corrected release follows:
Cliffside Capital Ltd. Reports Increased Net Income in 2020
/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE U.S./
TORONTO, April 21, 2021 /CNW/ - Cliffside Capital
Ltd. ("Cliffside" or the "Company") (TSXV: CEP)
presents its results for the year ended December 31, 2020.
Cliffside is very pleased to announce strong financial results,
despite the ongoing market challenges from COVID-19:
- Net income for the year ended December
31, 2020 of $2 million.
- A positive movement in net income year over year of
$4.6 million when compared to a net
loss of $2.6 million in 2019.
- Net financial revenue before credit losses grew in excess of
10% to $7.4 million excluding
one-time gain of $0.8 million
included in 2019.
- Delinquency rate (those greater than 30 days past due)
decreased 192 basis points to 3.42% as at December 31, 2020 compared to 5.34% in 2019.
- Provision for credit losses reduced year over year to
$5.4 million compared to $9.3 million in 2019 through a combination of
slower acquisition of new finance receivables, government's
economic support for individuals and closely managing borrower
performance.
Cliffside responded strongly to COVID-19. Management slowed
acquisition of new finance receivables early in the year, then
worked closely with its existing funders to introduce measures that
assisted borrowers and managed COVID-19 uncertainty effectively.
Cliffside's primary business of acquiring non-prime auto finance
receivables remains well positioned as it moves into 2021.
Cliffside foresees a strong pace of new acquisitions of finance
receivables while it appropriately governs credit risk and any
ongoing economic uncertainty.
"I am very pleased with our 2020 results despite the COVID-19
related challenges. Net income improved significantly, and we are
very pleased with the continued strength of our limited
partnerships' performances. We are well positioned for 2021 and
remain focused on acquiring assets with strong risk-adjusted
returns to drive long-term value for our shareholders" said CEO
Steve Malone.
To date, Cliffside has invested $6.7
million in two limited partnerships, each of which invests
in fully serviced non-prime automobile loans and are funded through
facilities with institutional lenders. Cliffside looks to grow its
asset base and net interest margin by closely managing its credit
exposure, costs, and net interest expense.
Further information on Cliffside's financial results can be
found at www.cliffsidecapital.ca.
About Cliffside
Cliffside is focused on investing in strategic partnerships with
parties who have specialized expertise and a proven track record in
originating and servicing loans and similar types of financial
assets. Cliffside's strategy is to generate revenue as an investor,
affording its shareholders an opportunity to invest in the growing
alternative lending sector with the potential for attractive yields
and minimal operational risk while earning a reliable total return.
For more information, see Cliffside's filings on SEDAR at
www.sedar.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION: This news release includes certain
"forward-looking statements" under applicable Canadian securities
legislation. Forward-looking statements include, but are not
limited to, statements with respect to the business and operations
of Cliffside. Forward-looking statements are necessarily based upon
a number of estimates and assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties,
and other factors which may cause the actual results and future
events to differ materially from those expressed or implied by such
forward-looking statements. Such factors include, but are not
limited to: general business, economic, competitive, political and
social uncertainties; the results of operations; potential for
conflicts of interests; as well as volatility of Cliffside's common
share price and volume. There can be no assurance that such
statements will prove to be accurate or complete, as actual results
and future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. Cliffside disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Cliffside Capital Ltd.