CLIFFSIDE CAPITAL LTD. REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS

30.05.24 02:08 Uhr

TORONTO, May 29, 2024 /CNW/ - Cliffside Capital Ltd. ("Cliffside" or the "Company") (TSXV: CEP) is pleased to announce financial results for the first quarter of 2024. The Company reported the following:

  • Decline in gross finance receivables by 37.4% to $107.5 million, with a corresponding decline in securitization and subordinated debt by $40.9% to $94.8 million compared to Q1 2023
  • Decline in net interest and other income by 35.2% to $3.3 million, consistent with the decline in gross finance receivables compared to Q1 2023
  • Provision for credit losses declined by 42.5% to $1.2 million compared to Q1 2023
  • Net loss before taxes of $0.3 million for the quarter ended March 31, 2024

The acquisition of finance receivables paused in 2023 as the Company continued to assess macroeconomic conditions and undergo a strategic review by a special committee (the "Independent Committee"). The pause in acquisitions resulted in a 37.4% decline in gross finance receivables to $107.5 million and a corresponding 40.9% decline in the securitization and subordinated debt to $94.8 million compared to the same period in the prior year. This decline in gross finance receivables together with the macroeconomic environment continuing to be challenging have adversely impacted the Company's financial results.

The Independent Committee, comprised of independent members of the Board of Directors of the Company, with the assistance of outside financial and legal advisors, is continuing to explore strategic alternatives for the Company. The Company does not intend to comment further until it determines that additional disclosure is appropriate in the circumstances and in accordance with applicable securities laws.

Further information on Cliffside's financial results can be found at www.cliffsidecapital.ca, and a copy of the condensed consolidated financial statements for the quarter-ended March 31, 2024, prepared in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board (IFRS Accounting Standards), including International Accounting Standard 34, Interim Financial Reporting, and the corresponding management's discussion and analysis will be available under the Company's profile on 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, 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 and the ability of the Independent Committee to successfully complete a Potential Strategic Transaction. 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.