TORONTO, April 26,
2024 /CNW/ - Cliffside Capital
Ltd. ("Cliffside" or the "Company") (TSXV: CEP)
is pleased to announce financial results for the year ended
December 31, 2023. The Company
reported the following for 2023 compared with the prior year:
- Decline in gross finance receivables by 37.5% to 120.9 million,
with a corresponding decline in securitization and subordinated
debt by $40.6% to 107.5 million
- Net financial revenue before credit losses, excluding mark to
market gain (loss) on derivative financial instrument declined by
14.2% to $8.4 million
- Provision for credit losses declined by 33.9% to $8.0 million
- Net loss before taxes of $1.3
million compared to a net loss before taxes of $2.0 million for the prior year
The acquisition of finance receivables slowed in the fourth
quarter of 2022 and subsequently paused in January 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 37.5% decline in gross finance
receivables to $120.9 million and a
corresponding 40.6% decline in the securitization and subordinated
debt to $107.5 million compared to
the prior year. This decline in gross finance receivables together
with the prevailing macroeconomic environment of high consumer debt
levels, higher benchmark interest rates, higher delinquency levels
and drop in used car prices 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 audited
consolidated financial statements for the year-ended December 31, 2023, prepared in accordance with
International Financial Reporting Standards, as issued by the
International Accounting Standards Board (IFRS Accounting
Standards), 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.
