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Vancouver, British Columbia – (Newsfile Corp. – September 14, 2021) – Financial Solution Inc. (TSX: SFI) (the “Society“) a leading provider of luxury yacht and auto rentals in Canada, today announced its financial results for the third quarter ending July 31, 2021.
Profit Highlights for the Quarter:
- Net income increased to $ 406,455 and adjusted net income(1) increased to $ 531,092.
- Net sales increased 58% from the prior year quarter to $ 6,228,929.
- The total lease and finance contract portfolio decreased 3.5% to $ 22,647,562 from the prior quarter.
- Quarterly dividend on common shares of $ 0.001 per share or returns approximately 1% to the Company’s current share price of $ 0.45 per share.
“Our third quarter results are a strong indication of pent-up demand for luxury vehicles in the market after such a long hiatus due to COVID. This summer we saw a significant increase in lease transactions and late vehicle sales. leasing rates remained extremely strong due to the continuing shortage of microprocessors impacting the launch of new luxury vehicles to market. After the quarter ended, our August was the busiest month since starting. COVID with over $ 3.2 million in new leases added to our internal portfolio, “said Bryan Pang, CEO of Solution. We are also very excited to move to the TSX and look forward to connect with more investors interested in better understanding our expansion plans and our unique approach to luxury asset ownership that is a perfect fit for our era current societal and economic situation. This timeline fits well with the rollout of our luxury and ultra-luxury LeaseClub programs in Ontario, designed to help Ontario luxury dealerships sell more vehicles and help consumers better manage their cash flow and their vehicle use options versus other rental or ownership options, ”Bryan concluded.
Solution reports net earnings of $ 492,455, or $ 0.005, per share for the quarter ending July 31, 2021. This compares to net earnings of $ 235,222 or $ 0.003 per share for the quarter ending July 31 2020.
Adjusted net income, which more reflects actual cash earnings, for the quarter ended July 31, 2021 was $ 531,092(1) or $ 0.006 per share compared to $ 301,084 or $ 0.004 per share for the quarter ended July 31, 2020. Adjusted net income excludes the non-cash accretion charge related to convertible debentures and right-of-use assets of 28 $ 148, stock-based compensation expense of $ 288 and amortization expense of $ 10,201.
Solution’s operating cash flow for the nine-month period ended July 31, 2021 decreased slightly to $ 4,214,474, compared to $ 4,667,047 for the quarter ended July 31, 2020.
As of July 31, 2021, Solution had 290 vehicles in the In House rental portfolio, a net decrease of 3 vehicles and $ 795,428 during the quarter to bring the total rental portfolio to $ 22.6 million.
As of July 31, 2021, the average residual term of the portfolio leases is 1.7 years, weighted by the net book value of each vehicle. As at July 31, 2021, Solutions’ 290 leases generated annualized gross rental and rental income of approximately $ 5.9 million, which remained the same as in the previous quarter.
About the solution
Solution Financial began 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 auto and marine dealerships providing lending solutions to customers who cannot obtain lease terms from traditional Canadian financial institutions or other lenders. Typical clients include new immigrants, business owners, and international students. Solution Financial provides a unique rental experience through which it partners with its clients to help them meet the challenges of acquiring, insuring, maintaining and upgrading vehicles and luxury assets in Canada.
Note 1- Non-IFRS financial indicators
The solution provides all financial information in accordance with International Financial Reporting Standards (“IFRS”). To complete our consolidated financial statements presented in accordance with IFRS, we also provide with this press release certain non-IFRS financial measures, including adjusted net income. In calculating these non-IFRS financial measures, we have excluded certain transactions that are not necessarily representative of our day-to-day activities or that do not have an impact on cash flows. These measures are not recognized measures under IFRS and do not have standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be viewed in isolation or as a substitute for analyzing our financial information presented in accordance with IFRS.
Caution Regarding Forward-Looking Statements
This press release contains “forward-looking information” within the meaning of applicable Canadian securities laws. Such information includes, without limitation, statements regarding our objectives, our strategies to achieve those objectives, as well as statements made regarding the beliefs, plans, estimates, projections and intentions of management, and statements. similar regarding expected future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information can generally be identified by the use of forward-looking terms such as “outlook”, “objective”, “may”, “will”, “expect”, “intend”, “believe” , “Should”, “plan” or “continue”, or similar expressions suggesting future results or events. This forward-looking information reflects the current beliefs of management and is based on information currently available to management. Although the forward-looking information contained in this press release is based on what management considers reasonable assumptions, there can be no assurance that actual results will be consistent with such forward-looking information. Certain statements included in this press release may be considered a “financial outlook” for the purposes of applicable Canadian securities laws, and as such, the financial outlook may not be appropriate for purposes other than this press release. hurry.
The forward-looking information contained in this press release is made as of the date of this press release and should not be construed as representing the views of Solution as of any date subsequent to the date of this press release. Unless required by applicable law, Solution’s management and board of directors do not undertake to publicly update or revise any forward-looking information, whether as a result of new information or future events. or otherwise.
For more information, please contact Sean Hodgins at (778) 318-1514.
ON BEHALF OF THE BOARD
(sign) “Bryan pang“
President, CEO and Director
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
NOT FOR DISTRIBUTION TO US WIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/96423