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TORONTO, April 27,
2022 /CNW/ - Cliffside Capital Ltd.
("Cliffside" or the "Company") (TSXV: CEP) is pleased
to announce strong financial results for the year ended
December 31, 2021. The Company
reported:
- Acquisition of a record high $98.6
million gross finance receivables;
- Net income before taxes for the year ended December 31, 2021 of $1.6
million;
- Adjusted net income before taxes for the year ended
December 31, 2021 of $2.3 million
(refer to Reconciliation of Non-IFRS Measures in the 2021
MD&A);
- The Company's profitability is reflective of better portfolio
performance as a result of lower write-offs and lower delinquency
levels.
As previously announced, the Company successfully raised
$4.5 million in gross proceeds
through a private placement of its common shares in Q3 2021, of
which it invested $3.75 million for a
60% of ownership interest in a newly formed special purpose private
limited partnership, CAR LP I. The new private limited partnership
was formed to acquire non-prime consumer auto loan receivables. The
new funding structure for CAR LP I has resulted in better funding
costs and improved cash flows for the Company.
The Company also approved the initiation of a quarterly dividend
and declared its inaugural quarterly cash dividend in Q3 2021 which
was followed by quarterly cash dividends declared in Q4 2021 and Q1
2022 on the Company's outstanding common shares of $0.0025 per common share ($0.01 on an annualized basis), reflective of the
strong performance of the Company's portfolio. Each such dividend
qualified as an "eligible" dividend as defined in the Income Tax
Act (Canada). The dividends were
subject to customary Canadian withholding tax for shareholders that
are non- resident in Canada.
"This year has proven to be the most significant on record for
the Company. We saw record acquisition of new finance receivables,
a new investment in CAR LP I and the declaration of a quarterly
cash dividend program. As the market likely starts to normalize in
2022 after several years of low interest rates and various COVID-19
consumer support programs, we will remain focused on acquiring
assets with strong risk-adjusted returns to continue driving
long-term value for our shareholders." said CEO Steve Malone.
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; the availability of appropriate finance
receivables that may be purchased by the Company's limited
partnerships under existing funding facilities; and volatility of
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.