ECN Capital Corp. announced that it has entered into agreements to sell $1,487 million of Railcar Assets to affiliates of ITE Management L.P. and Napier Park Global Capital for proceeds of approximately $1,439 million (collectively, the “Railcar Dispositions”). The ITE transaction closed on August 4, 2017 and the Company expects the Napier Park transaction to close in the third quarter of 2017. The assets sold represent approximately 65% of the Company’s rail portfolio.
“I am delighted to announce the sale of our non-core rail finance assets as we continue to execute on our plan. The sale of these railcars will further position ECN Capital to capitalize on strategic growth opportunities and free up approximately $400 million of capital.” said Steven Hudson, ECN Capital’s Chief Executive Officer. “I want to thank Jim Nikopoulos, Dave McKerroll and their team for their hard work on these transactions and acknowledge Trinity Industries’ great efforts in facilitating these transactions”, said Mr. Hudson.
ECN Capital also reported financial results for the three-month period ending June 30, 2017. Readers should note that in this release, amounts reported for the comparable quarter ended June 30, 2016 are presented on a carved-out basis. In addition, the amounts reported for the comparable quarters ended March 31, 2017 and June 30, 2016 reflect continuing operations only. Consolidated numbers are reported in the MD&A and Financial Statements.
For the three-month period ending June 30, 2017, ECN Capital reported After-tax Adjusted Operating Income of $16.4 million or $0.04 per share (basic) versus $19.7 million or $0.05 per share (basic) for the previous three-month period ending March 31, 2017 and $25.3 million or $0.07 per share (basic) for the same period last year.
Originations for the three-month period ending June 30, 2017 were $164.7 million versus $165.0 million for the previous three-month period ending March 31, 2017 and $188.0 million for the same period last year.
Total Earning Assets under Management as at June 30, 2017 were $4.0 billion, versus $4.2 billion as at March 31, 2017 and $4.3 billion as at June 30, 2016, which excludes the discontinued U.S. Commercial & Vendor business.
Net Financial Income, net of interest expense and provision for credit losses, for the three-month period ending June 30, 2017 was $35.7 million as compared with $37.3 million for the previous three-month period ending March 31, 2017 and $48.4 million for the same period last year. Adjusted Operating Expenses for the three-month period ending June 30, 2017 were $15.6 million versus $16.9 million reported for the previous three-month period ending March 31, 2017 and $10.1 for the same period last year. Net Income (Loss) for the three-month period ending June 30, 2017 was $15.9 million versus $11.5 million for the previous three-month period ending March 31, 2017 and $28.4 million for the same period last year.
“I am very pleased with the Company’s operating results as well as our consistent strategic execution. We continue to position ECN for the next stage of growth” said Mr. Hudson.