Solutions Financial Report Q1 2024 Financial Results

Vancouver, British Columbia–(Newsfile Corp. – March 15, 2024)- Solution Financial Co., Ltd. (TSX: SFI) (“''company“) Canada's leading provider of luxury and ultra-luxury asset leasing, today announced its financial results for the first quarter ending January 31, 2024.

Earnings highlights for the quarter:

Net income for the quarter was $21,171, while net loss for the comparative 2023 quarter was $328,781.
Adjusted net income⁽¹⁾ It increased to $112,604 compared to $77,272 in the comparative quarter.
Revenue decreased to $3,087,791 compared to $5,105,308 in the comparative quarter.
Total lease portfolio for the quarter decreased 4.4% to $24,459,091.

Business highlights for the quarter:

We have decided to roll out a new vehicle leasing program with our partner dealers in the second quarter of 2024. This is aimed at supporting local consumers. Recent interest rate increases from established lenders have made Solution's unique leasing approach more attractive to customers beyond the new immigrant and international student market.
In January 2024, we will provide guidance on optimizing and understanding executive vehicle leasing programs, with a focus on newly increased CRA lease benefits, corporate executive incentive strategies, and personal use considerations. We have launched a new luxury corporate leasing program aimed at

CEO Brian Pang said, “Our first quarter marked a period of strategic adaptation and proactive initiatives, especially given the challenges posed by the tightening of consumer credit that is impacting the Canadian auto market. This includes higher interest rates and stricter lending standards.While Solution Financial has traditionally served primarily new immigrants and international students, current economic conditions are This, combined with our strong balance sheet and very competitive interest rates, puts us in a unique position to appeal to a broader, more traditional, high-credit-rating lease consumer.”

“With this expanded market focus, we have been actively working with our dealer partners to introduce innovative programs,” Brian continued. “These are designed to take advantage of the growing opportunities presented by changing market dynamics. We are optimistic that we will drive significant growth. We are enthusiastic about the potential of these new programs to generate strong returns and strengthen our commitment to providing best-in-class leasing solutions. This will further strengthen our efforts. ”

Summary of financial results

Solutions reported net income of $21,171, or $0.0002 per share, for the quarter ended January 31, 2024. This compares to a net loss of $328,781, or $0.004 per share, for the quarter ending January 31, 2023.

Adjusted net income for the quarter ended January 31, 2024, which is more reflective of actual cash receipts, was $112,604.⁽¹⁾ $0.001 per share, compared to $77,272 or $0.001 per share for the quarter ended January 31, 2023. Adjusted net income excludes $32,436 of non-cash accretive charges related to convertible debt and right-of-use assets, the $8,100 provision for income taxes, and amortization expense. $21,615 and $29,282 allowance for credit losses.

lease portfolio

As of January 31, 2024, Solutions' lease portfolio included 297 vehicles, a net decrease of 13 vehicles compared to the quarter, resulting in a total lease portfolio of $24.5 million.

As of January 31, 2024, the average remaining lease term of the portfolio was 1.7 years, weighted by the net book value of each vehicle. As of January 31, 2024, Solutions' 297 leases generated annual gross rental and lease cash flows of approximately $6.5 million.

About the solution

Solution Financial began operations in 2004 and specializes in sourcing and leasing luxury and exotic cars, yachts and other high-value assets. The solution works with a select group of luxury auto and marine dealers to provide financing solutions to customers who prefer more flexible leasing options than those traditionally offered by banks and other leasing providers. Typical customers include new immigrants, business owners, and international students who tend to upgrade their vehicles more frequently than with traditional lease agreements. Solution Financial offers a unique leasing experience that partners with clients to help source limited edition and hard-to-find vehicles, as well as providing white glove services for vehicle insurance, maintenance, upgrades and resale. Masu.

Note 1 – Non-IFRS financial measures

The solution provides all financial information in accordance with International Financial Reporting Standards (“IFRS”). To supplement our consolidated financial statements presented in accordance with IFRS, we also provide in this press release certain non-IFRS financial measures, including adjusted net income. In calculating these non-IFRS financial measures, we have excluded certain transactions that are not necessarily indicative of our ongoing operations or do not affect our cash flows. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other issuers. These measures should not be considered in isolation or as a substitute for analysis of the Company's financial information reported under IFRS.

Cautionary note regarding forward-looking statements

This press release contains “forward-looking information” as defined in applicable Canadian securities laws. This information includes statements regarding our objectives, our strategies for achieving those objectives, and statements regarding management's beliefs, plans, estimates, projections, and intentions, as well as similar statements regarding anticipated future events or results. This includes, but is not limited to, descriptions. , circumstances, achievements, or expectations that are not historical facts. Forward-looking information generally includes statements such as “outlook,” “target,” “may,” “will,” “anticipate,” “intend,” “estimate,” “anticipate,” or “believe.” “is,” “should,” “plans,” “continues,” or similar expressions suggesting future results or events. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Although the forward-looking information contained in this press release is based on what management believes to be reasonable assumptions, there can be no assurance that actual results will correspond to this forward-looking information. Certain statements contained in this press release may be considered “financial outlooks” for the purposes of applicable Canadian securities laws, and therefore financial outlooks may not be appropriate for purposes other than this press release. .

The forward-looking information contained in this press release is made as of the date of this press release and should not be relied upon as representing Solutions' views as of any date subsequent to the date of this press release. Except as required by applicable law, management and Solutions' board of directors do not publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise. We are not obligated to do so.

For more information, contact Sean Hodgins at (778) 318-1514.

on behalf of the board of directors

(Signed)”brian pan”
brian pan
Representative Director, President, CEO and Director

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