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TORONTO, May 27, 2021 /CNW/ - Cliffside Capital Ltd.
("Cliffside" or the "Company") (TSXV: CEP) presents
its results for the first quarter ended March 31, 2021.
Cliffside is pleased to announce strong financial results,
despite the continued market challenges from COVID-19:
- Net income for the first quarter ended March 31, 2021 of $0.7
million.
- A positive movement in net income year over year of
$2.2 million when compared to a net
loss of $1.5 million in the first
quarter of 2020, resulting from a better performance of the
portfolio and consistent with the expected profitability of the
portfolio over its life.
- Delinquency rate (i.e. finance receivables, greater than 30
days past due) decreased 209 basis points to 3.42% as at
March 31, 2021 compared to 5.51% in
the first quarter of 2020.
- Provision for credit losses reduced year over year to
$0.7 million compared to $3.4 million in the first quarter of 2020 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 uncertainties created by
COVID-19, a global pandemic. Management slowed acquisition of new
finance receivables early in 2020, and monitored its portfolio
proactively for performance and credit quality, which is reflected
in the Company's strong financial results. Cliffside's primary
business of acquiring non-prime auto finance receivables remains
well positioned. 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 first quarter 2021 results despite
the COVID-19 related challenges. Net income, year-over-year,
improved significantly, and we are happy with the continued
strength of our limited partnerships' performances. We are well
positioned for the rest of fiscal 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.