ECN Capital Corp. (“ECN Capital” or the “Company”) reported financial results for the three-month period and fiscal year ending December 31, 2016. Readers should note that in this release, amounts reported for the comparable quarters ended September 30, 2016 and December 31, 2015 are presented on a carved-out basis.

For the three-month period ending December 31, 2016, ECN Capital reported After-tax Adjusted Operating Income of $25.2 million or $0.07 per share (basic) in line with the consensus of analyst estimates versus $27.4 million or $0.07 per share (basic) for the previous three-month period ending September 30, 2016 and $33.5 million or $0.09 per share (basic) for the same period last year. For the 12-month period, the Company reported After-tax Adjusted Operating Income of $106.8 million or $0.28 per share (basic) versus $127.5 million or $0.42 per share (basic) for the same period last year.

Book Value per Common Share as at December 31, 2016 was $4.47 versus $4.42 as at the end of the previous three-month period. Pro forma the February 21, 2017 announced sale of the Company’s US Commercial & Vendor Finance business to PNC Financial Services Group, Book Value per Common Share as at December 31, 2016 was $4.83.

Originations for the three-month period ending December 31, 2016 were $533.8 million, an increase of 31 percent from the $407.0 million of originations reported in the previous three-month period ending September 30, 2016.

Total Earning Assets under Management as at December 31, 2016 were $7.9 billion versus $7.5 billion as at September 30, 2016 and $7.8 billion as at December 31, 2015. Pro forma the February 21, 2017 announced sale of the Company’s US Commercial & Vendor Finance business to PNC Financial Services Group, Total Earning Assets under Management as at December 31, 2016 would be reduced to $6.2 billion.

Net Financial Income, net of interest expense and provision for credit losses, for the three-month period ending December 31, 2016 increased to $54.8 million versus $48.5 million for the previous three-month period ending September 30, 2016 and $61.0 million for the same period last year. Net Financial Income for the 12-month period ending December 31, 2016 was $207.1 million versus $217.7 million for the same period last year.

Adjusted Operating Expenses for the three-month period ending December 31, 2016 were $21.4 million versus $17.5 million reported for the previous three-month period ending September 30, 2016 and $17.4 million for the same period last year. The increase over the previous three-month period is attributable to higher expense in salaries and wages related to the timing of variable compensation expenses.

Net Income (Loss) for the three-month period ending December 31, 2016 was ($18.7) million versus $1.2 million for the previous three-month period ending September 30, 2016 and $31.6 million for the same period last year. For the 12-month period ending December 31, 2016 the Company reported Net Income of $33.0 million versus $109.8 million for the same period last year.

During the quarter, and while the Company believes that it will be successful in litigation, it took a post-tax precautionary asset valuation reserve of US $18 million against its litigation with the manufacturer of certain helicopters that present with manufacturer's defect. As well, the Company recorded a one-time charge of $13.2 million relating to the separation and restructuring of ECN.

“I am very pleased with the Company’s operating results over the past year which involved a twelve-month process during which we completed a value enhancing separation and a segment-by-segment business review,” said Steven Hudson, ECN Capital’s Chief Executive Officer. “These efforts, together with our stewardship of capital, our balance sheet readiness and our expanded management team, put us on course to deliver the next stage of ECN Capital’s growth strategy,” added Mr. Hudson.

“I am also very pleased to welcome Grier Colter as ECN Capital’s incoming Chief Financial Officer,” said Mr. Hudson. “Grier brings very strong credentials to this role with extensive public company financial reporting and treasury experience. Grier replaces Michel Beland who will take on responsibility for driving ECN Capital’s strategy,” added Mr. Hudson.