Business
Solution Financial Reports Year End 2020 Financial Results
Vancouver, British Columbia--(Newsfile Corp. - January 18, 2021) - Solution Financial Inc. (T...
About this update from Solution Financial Inc.
[{"type":"text","content":"Solution Financial Reports Year End 2020 Financial ResultsVancouver, British Columbia--(Newsfile Corp. - January 18, 2021) - Solution Financial Inc. (TSXV: SFI) (the \"Company\") a leading provider of luxury automotive and yacht leasing in western Canada, today announced its financial results for the fourth quarter and year ending October 31, 2020. Earnings Highlights for the Year End:Net income increased to a record $400,413 and Adjusted net income(1) increased to a record $1,059,391 since going public.Net revenue increased 48% over the prior year to a record $14,299,070. Total lease and finance portfolio grew 14.35% to $25,192,444 over the prior year.\"Our fourth quarter of 2020 saw monthly leasing and sales averaging approximately $2.8M per month and despite the drop in the number of international students returning to Canadian Universities in September, our volume of new immigrant and business owner leasing remained strong,\" began Bryan Pang, the Company's CEO. \"For the last couple of months, we focused on expanding our leasing program into Ontario and are excited about the potential to serve what we see as the biggest market opportunity for our unique leasing product offering in Canada. To support this expansion, we are currently marketing a 5% convertible debenture that is convertible into common share at $0.50. We kept our conversion price at $0.50 per share because we want to maximize the potential for our investors to convert to equity and fully leverage the potential of our growing lease portfolio,\" concluded Bryan.Financial ResultsSolution is reporting a net income of $400,413, or $0.005, per share for the year ending October 31, 2020. This compares to a net income of $181,948 or $0.002 per share for the year ending October 31, 2019. Adjusted net income for the year ending October 31, 2020 was $1,059,391(1) or $0.013 per share compared to $630,355 or $0.008 per share for the year ending October 31, 2019. Adjusted Net Income excludes the non-cash accretion interest expense related to the convertible debentures of $178,883, share-based compensation expense of $51,351 for stock compensation, income tax provision of $390,335 and amortization expense of $38,409. Our operating cash flow for the year ended October 31, 2020 increased to $6,925,539 compared to $5,334,398 for the year ended October 31, 2019. Lease PortfolioA...