ECN Capital Sells $1.5B of Rail Assets; Reports Q2 Results
AUG 11, 2017 - 7:44 am
Editor’s note: All dollar amounts are Canadian.
ECN Capital entered into agreements to sell $1,487 million of railcar assets to affiliates of ITE Management and Napier Park Global Capital for proceeds of approximately $1,439 million. The ITE transaction closed on August 4, 2017 and the company expects the Napier Park transaction to close in Q3/17.
The assets sold represent approximately 65% of the company’s rail portfolio. “I am delighted to announce the sale of our non-corerail 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 CEO.
“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,” Hudson said.
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
For the three-month period ending June 30, 2017, ECN Capital reported after-tax adjusted operating income of $16.4 million versus $19.7 million for the previous three-month period ending March 31, 2017 and $25.3 million. 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.
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,” Hudson said.
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