Reports Strong Third Quarter, Including Growth in Assets /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S./
TORONTO, Nov. 23, 2021 /CNW/ - Cliffside Capital Ltd. ("Cliffside" or the "Company") (TSXV: CEP) is pleased to announce strong financial results for the third quarter ended September 30, 2021.
As the pandemic-induced restrictions begin to ease, Cliffside has begun to grow assets through acquisition of new finance receivables and is pleased to report:
- Acquisition of $53.8 million of gross finance receivables during the quarter;
- $0.8 million increase in net income to $1.5 million for nine months ended September 30, 20201 compared to the same period prior year, driven by better performance and consistent with the expected profitability of the portfolio over its life;
- Q3 2021 net loss of $159,039 was impacted by a pre-tax amount of $1,449,937 resulting from the movement in Stage 1 provision for credit losses of $845,397, arising from acquisition of $53.8 million in new finance receivable, and amortization of $605,540 of financing costs incurred on securing new funding facilities for CAR LP I; and
- Provision for credit losses declined to $2.2 million for nine months ended September 30, 2021 compared to $4.6 million in prior year, through a combination of slower acquisition of new finance receivables during first half of the year, governmental economic support for individuals and closely managing borrower performance.