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TORONTO, Nov. 25, 2019 /CNW/ - Cliffside Capital Ltd.
("Cliffside") (TSXV:CEP) is pleased to report results for
the third quarter ended September 30,
2019.
In the third quarter of 2019, Cliffside acquired $21 million in new finance receivables, resulting
in $130 million in outstanding net
finance receivables as at September 30,
2019. Net interest income increased by $1.2 million, or 52%, to $3.6 million from the third quarter of 2018 to
the third quarter of 2019. Similarly, Cliffside reported net
financial revenue before credit losses of $1.8 million during the quarter, which is up
$0.5 million, or 44%, from the same
quarter prior year.
Cliffside reported a net loss after taxes of $0.6 million for the quarter, compared to
$0.5 million for the same quarter
prior year. The net losses were primarily a result of higher
provision for credit losses due to IFRS 9 provisioning standards
which require earlier recognition of future credit losses on
otherwise performing receivables classified as stage 1.
Cliffside is also pleased to announce that the limited
partnerships renewed their respective funding facilities with a
Canadian Schedule 1 Bank (for $40
million) and a Canadian Life Insurance Company (for
$60 million). With the renewals, the
partnerships will benefit from favourable changes to covenants and
reserve levels. Gaining access to additional funding enables the
partnerships to continue growing their portfolios of fully serviced
non-prime automobile loans, and fuel Cliffside's strategy of
building assets under management in the non-prime lending
market.
To date, Cliffside has invested $5.9
million in two limited partnerships, each of which invests
in fully serviced non-prime automobile loans which are funded
through facilities with institutional lenders. Cliffside is
targeting growth in assets under management and growth in returns,
while maintaining an acceptable level of credit risk to ultimately
deliver attractive yields to shareholders.
Further information on Cliffside's September 30, 2019 financial results are
available on SEDAR at www.sedar.com.
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, visit www.cliffsidecapital.ca.
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.