Business
Solution Financial Reports Q2 2023 Financial Results
Calgary, Alberta and Vancouver, British Columbia--(Newsfile Corp. - June 13, 2023) - Solution Fi...
About this update from Solution Financial Inc.
[{"type":"text","content":"Solution Financial Reports Q2 2023 Financial ResultsCalgary, Alberta and Vancouver, British Columbia--(Newsfile Corp. - June 13, 2023) - Solution Financial Inc. (TSX: SFI) (the \"Company\") a leading provider of luxury automotive and yacht leasing in Canada, today announced its financial results for the second quarter ending April 30, 2023. Earnings Highlights for the Quarter:Revenues were $3.5 million, down from the comparative quarter which was $5.6 million.Net income was $37,826 compared to net income of $203,054 during the comparative quarter.Adjusted net income(1) was $136,707, down from $263,690 during the comparative quarter. Total lease portfolio decreased to $24.7 million compared to $24.8 million during the prior quarter.\"Our performance in the second quarter of 2023 was hindered by the high prime borrowing rates introduced to address inflationary challenges in Canada, along with the ongoing sluggishness in new vehicle releases across our key markets,\" explained Bryan Pang, CEO of Solution. \"In 2022, we took advantage of the scarcity issue in the luxury market and achieved significant sales by capitalizing on the attractive gross profit premiums available. However, in 2023, our focus has shifted to sustaining and expanding our lease portfolio. To accomplish this, we are leveraging our Securitization facility with SunLife, enabling us to offer highly competitive solutions to our long-standing dealerships in BC and Alberta, as well as exploring new opportunities in Ontario. The Company's experience in navigating slowdowns lies in exercising patience and staying committed to our fundamental strategies,\" concluded Bryan. Solution is reporting net income of $37,826 or ($0.0004), per share for the quarter ending April 30, 2023. This compares to net income of $203,054 or $0.002 per share for the quarter ending April 30, 2022.Adjusted net income, which is more reflective of actual cash earnings, for the quarter ending April 30, 2023, was $136,707(1) or $0.002 per share compared to $275,827 or $0.003 per share for the quarter ending April 30, 2022. Adjusted Net Income excludes the non-cash accretion expense related to the convertible debentures and right-of-use assets of $65,559, income tax provision of $14,000, amortization expense of $15,659, and non-cash credit provisions of $3,663.Solution's operating cash flow for the ...