Earnings call transcript: ECN Capital Q1 2025 sees strong earnings growth

ECN Capital Corp reported a significant increase in its Q1 2025 earnings, with adjusted net income to common shareholders reaching $7.2 million, or $0.03 per share, compared to just $1.4 million the previous year. Despite the positive earnings, the company’s revenue of $54.9 million fell short of the forecasted $56.09 million. The stock remained unchanged at $2.85 per share following the earnings announcement, reflecting a neutral market reaction. According to InvestingPro data, the company maintains a "GOOD" overall financial health score of 2.67, with particularly strong metrics in profit and cash flow management.

Key Takeaways

• ECN Capital’s Q1 2025 adjusted operating income increased significantly to $11.4 million.
• Revenue fell slightly short of forecasts, at $54.9 million against an expected $56.09 million.
• The company issued $58 million in convertible debentures and recognized a one-time corporate simplification charge.
• ECN Capital maintains a strong market position in manufactured housing financing.

Company Performance

ECN Capital demonstrated robust financial performance in the first quarter of 2025, with adjusted operating income surging to $11.4 million from $1.4 million in the same quarter last year. This growth reflects the company’s strategic focus on high-margin channels and new funding partnerships. Despite challenges in the RV/Marine sector, ECN Capital continues to gain market share.

Financial Highlights

• Revenue: $54.9 million, slightly below the forecast of $56.09 million.
• Earnings per share: $0.03, exceeding the forecast of $0.0282.
• Convertible debentures issuance: $58 million.
• One-time corporate simplification charge: $6.7 million.

Earnings vs. Forecast

ECN Capital’s earnings per share of $0.03 surpassed the forecast of $0.0282, marking a positive earnings surprise. However, the revenue of $54.9 million was below the expected $56.09 million, indicating a minor shortfall in sales performance.

Market Reaction

The market reaction to ECN Capital’s earnings was neutral, with the stock price remaining stable at $2.85 per share. This stability suggests that investors may have anticipated the earnings results or were unfazed by the slight revenue miss. The stock remains within its 52-week range, between $1.6 and $3.52. InvestingPro analysis indicates that ECN Capital is currently trading below its Fair Value, presenting a potential opportunity for value investors. The company’s beta of 0.78 suggests lower volatility compared to the broader market.

Outlook & Guidance

Looking ahead, ECN Capital has set its 2025 EPS guidance between $0.19 and $0.25. The company anticipates growth in its Triad Financial originations and stronger land-secured product offerings in the latter half of the year. A temporary slowdown in the RV Marine sector is expected in Q2-Q3, with recovery projected in Q4.

Executive Commentary

CEO Steven Hudson highlighted the company’s strong financial position, stating, "ECN is blessed with excess funding exceeding a half a billion dollars. We are in a very good place." He emphasized the company’s growth strategy, noting, "We will take advantage of this excess funding capacity with a warrior-like sales culture to supercharge our growth."

Risks and Challenges

• Potential slowdown in the RV/Marine market, with yacht and cruiser sales down 4%.
• Revenue shortfall could indicate challenges in meeting future sales expectations.
• Corporate simplification charges and position eliminations may impact operational efficiency.

Q&A

During the earnings call, analysts inquired about the impact of tariffs, with management indicating minimal effects. Questions also focused on the continued strong performance in chattel loans and the ongoing corporate merger process. Approvals in April and May were reported to be up 25-30% year-over-year, reflecting positive momentum in the company’s operations.

Overall, ECN Capital’s Q1 2025 performance showcases its strategic advancements and market resilience, despite facing certain sector-specific challenges.

Full transcript - ECN Capital Corp (ECN) Q1 2025:

Conference Operator: Thank you for standing by. This is the conference operator. Welcome to the ECN Capital First Quarter twenty twenty five Results Conference Call. As a reminder, all participants are in a listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.

I would now like to turn the meeting over to Catherine Moradillos, Vice President of Finance and Investor Relations. Please go ahead, Kathryn.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital: Thank you, Jen. Good afternoon, everyone, and thank you all for joining this call. Joining us today on the call are Steven Hudson, Chief Executive Officer of ECN Jackie Weber, Chief Financial Officer of ECN Lance Hull, President of Triad Financial Matt Heidelberg, Chief Operating Officer of Triad Financial James Barry, Chief Financial Officer of Triad Hans Kroz, Founder and CEO of IFG Mike Ophdahl, President of Source One. A news release summarizing these results was issued this afternoon, and the financial statements and MD and A for the three month period ended 03/31/2025, have been filed with SEDAR plus These documents are available on our website at www.ecncapitalcorp.com. Presentation slides to be referenced during the call are accessible in the webcast as well as in PDF format under the Presentations section of the company’s website.

Before we begin, I want to remind our listeners that some of the information we are sharing with you today includes forward looking statements. These statements are based on assumptions that are subject to significant risks and uncertainties. I will refer you to the cautionary statements section of the MD and A for a description of such risks, uncertainties and assumptions. Although management believes that the expectations reflected in these statements are reasonable, we can obviously give no assurance that the expectations of any forward looking statements will prove to be correct. You should note that the company’s earnings release, financial statements, MD and A and today’s call include references to non IFRS measures, which we believe help to present the company and its operations in ways that are useful to investors.

A reconciliation of these non IFRS measures to IFRS measures can be found in our MD and A. All figures are presented in U. S. Dollars unless explicitly noted. With these remarks complete, I will now turn the call over to Steve Hudson, CEO.

Steven Hudson, Chief Executive Officer, ECN Capital: Thank you. Good afternoon. Before I begin my personal sort of prepared remarks, let me start by saying that the first quarter clearly demonstrates how robust and resilient our business is. We’re happy to report our first quarter earnings of $03 per share, which is the high end of our guidance. Triad’s adjusted operating income was at just over $13,000,000 which represents a 44% increase year over year.

High margin channel originations were up almost 44% and in April were up almost 68%. We’re pleased to welcome JPMorgan and New York Life to Triad’s family of flow partners. On RV Marine adjusted, we’re reporting adjusted operating income of $1,200,000 and we’re pleased to announce the extension of our partnership with Monroe Capital to include RV Flow. James? Thank you, Steve.

Turning to Slide eight.

James Barry, Chief Financial Officer, Triad Financial: Triad is pleased to report adjusted operating income of $13,100,000 in Q1, an increase of 44% year over year. As discussed during our Q4 update, public company overhead costs and interest expense has been allocated to the business segments beginning in Q1. I would also point out that adjusted EBITDA is coincidentally flat at $21,700,000 compared to Q1 twenty twenty four. Origination margin of 7% was ahead of guidance of 6.5%, reflecting a higher weighting of core channel originations and our hedging program, which proved effective through an environment of elevated interest rate volatility in late Q4 twenty twenty four and into Q1 twenty twenty five. Although managed assets grew approximately 12% to $5,800,000,000 TRIAD’s servicing yield declined from roughly 95 basis points in Q4 to 84 basis points due to the quarter over quarter reduction in loan sales consistent with seasonality in our business.

We reiterate our full year guidance of approximately 90 basis points in full year 2025. Tri saw growth in all three of our businesses and our commercial and servicing business units comprised 41% of revenues in Q1. And with that, I’ll turn it to Lance Root to review our expanded funding relationships.

Lance Hull, President, Triad Financial: Thank you, James. If you please turn to Page nine. We’re fortunate to have the strong relationships with Blackstone and Carlyle and our extensive network of banks and credit unions. As we increase our market share, it’s important to grow with them and to add new partners to further diversify our funding capacity. With that in mind, we’re excited to announce the continued expansion of our institutional investor funding capacity.

I want to thank Matt Heidelberg and his team for the work they’ve put in over the last few months to secure these two new forward flow purchase agreements, one with JPMorgan in April and just this week, another with New York Life. These are highly reputable partners that will increase our ability to better serve the market and add real value to Triad in the years to come. And just to add, because both of these new agreements include all loan products, we now have the added capacity necessary to meet the growing demand for our loans across all eligible credit profiles. If you please turn over to page 10. Retail originations grew sharply in Q1, and we’re now well ahead of plan on the year.

I want to point out three primary drivers for this increase. First, our activity within the Champion financing JV is much stronger than forecast. We are grateful for this partnership and continue to work with Champion to bring value to our mutual customers. Second, we’re now executing on the structure and process improvements that we have put in place over the last eighteen months. This has led to a 15% growth in our look to book compared to Q1 of twenty twenty four.

And thirdly, we have seen a return to normal in general activity following the impacts of the devastating hurricanes in the latter part of 2024. I would also add that to date, tariff impacts have been minimal. When looking at our approval pipeline, our average loan amount is holding very steady. Additionally, for further stability, some of the industry’s manufacturers are beginning to introduce the inclusion of a small price protection line item in their home invoices to hedge against potential future tariff related price increases. Turning on to Page 11.

Q1 was our largest first quarter of originations in the company history and capped by the record setting March where we funded more than $110,000,000 in chattel alone. While we’re excited about the growth during Q1, we’re equally excited about the momentum that began later in the quarter and continued through April and now into May. Chattel originations in April exceeded the March record and were up 67% year over year. Core applications, approvals and originations remain above plan and strong momentum is carrying into Q2. And now I’ll turn it over to Matt Heidelberg to share some performance updates.

Matt Heidelberg, Chief Operating Officer, Triad Financial: Thank you, Lance. Starting on Slide 12. Credit performance remained strong seasonally moved lower year to date, as you can see in the graph on the upper right corner of the slide. On the bottom half of the slide, managed assets continue to grow with originations and net charge offs remain consistently low. Moving to Slide 13, you can see commercial balances have grown to $455,000,000 which consists of roughly 70% floor plan balances and 30% rental.

We’ve seen that opening a rental relationship with the manufactured home community is helping to drive both additional floor plan and retail business. This is confirmation that having a full product menu is both broadening and strengthening Triad’s relationships with its partners. For a quick update on Champion Financing on Slide 14, the Champion Financing joint venture is tracking ahead of plan year to date. Retailers are utilizing the floor plan offering to acquire homes at the right mix and price point for their customers, while the retail loan products provide financing consumers need to complete their home purchase. Champion Homes has been a wonderful partner to work with, and we look forward to continuing our success together.

Moving to Slide 15, we wanted to take a moment to remind you that the manufactured housing industry has been resilient during multiple economic cycles. The graph on the left shows industry shipments relative to treasury yields over time. The graph on the right shows the industry shipments relative to consumer sentiment. The lack of correlation for both supports our view that there is an affordable housing need despite the sentiment or rate environment, and we believe that manufactured housing is the leading solution to assist with this need. Finally, on Slide 16, this table summarizes our historical quarterly originations.

And with that, I’ll turn it back to Steve.

Steven Hudson, Chief Executive Officer, ECN Capital: Thank you. Turning to RV Marine. Our first quarter adjusted operating income pretax was $1,200,000 and our originations of $2.00 $5,000,000 were up 24%. However, we’ve started the second quarter with a slightly different picture with headwinds and a temporary slowdown taking place in the second quarter and likely part of the third quarter. We are seeing a forecast recovery in Q4.

We are implementing a strategy we are implementing take share strategies in this temporary showdown, just like Hans did so effectively at IFG, where he was able to grow share and volume during a period of slowness. Turning to the next page. As I mentioned earlier, I’m happy to welcome Monro Capital into the RV family. They are already part of the Triad family in funding rental paper. This completion of these institutional investment arrangement is the end of our transition from credit unions to institutional investment, is consistent with our strategy.

Hans?

Hans Kroz, Founder and CEO, IFG: Thanks, Steve. Turning to Slide 20. Despite the challenging marine market, especially the market we focused on, which is used yachts and cruisers, we continue to gain market share and beat our competition. According to InfoLink Technologies, through February 2025, yacht and cruiser sales were down approximately 4%, new powerboat retail sales are down 7.4%, and wholesale shipments are down 13%. However, at IFG, originations were up 22% year over year.

That’s in the first quarter. March was up an astounding 43%. We see this momentum continuing in April with originations up 24%. We’re doing this incredible work by leveraging our long term relationships with banks, brokers and dealers. Our old fashioned style of knocking on doors and seeing our clients face to face sprinkled in with some new technology is paying off as we continue to win dealers and brokers on a daily basis.

Last year, we brought over a large sales team. They exceeded $25,000,000 in originations in the first quarter alone. We’ve done this while maintaining expenses in line with our plan. Many people have brought up tariff issues and how it will affect IFG’s business. At IFG, seventy percent of our business is used boats.

This fares very well for us because number one, there are no tariffs on used boats. Number two, used boats are generally less expensive than new boats. In a tough market, that’s where the consumer is looking to buy their boat. Number three, the major captive lenders are not equipped to handle used person to person transactions. This is where IFG shines, and this has always been our expertise.

With that, I’ll turn it over.

Mike Ophdahl, President, Source One: Thank you, Hans, and congratulations on another great quarter. Good afternoon, everyone. Let’s turn to Slide ’21. Q1 originations were up 28%, our largest first quarter ever. And this momentum carried over to April as we finished up over 40% year over year.

Coming into our prime season, we have over $190,000,000 approved applications in our pipeline and are well positioned for continued growth this quarter. We continue to focus on maximizing efficiencies across all RV marine, with operating expenses in line with plan. The IFG and EPIC initiatives we began last summer are beginning to scale, approaching 10% of our April originations. Despite Source One significant improvements this year, continued consumer uncertainty due to macroeconomic pressures are affecting our industries. Dealership sales continue to struggle with year to date total registrations down 12%.

And as Hans pointed out, marine sales and shipments are experiencing similar slowdowns. Despite these headwinds, Source One is gaining market share, and we are well prepared to navigate through continued volatility. With that, I’ll turn it over to Jackie.

Jackie Weber, Chief Financial Officer, ECN Capital: Thank you, Mike. Turning to page 24 for our consolidated operating highlights. We closed our first quarter of twenty twenty five with adjusted operating income increasing year over year to $11,400,000 up from $1,400,000 Adjusted net income to common shareholders was $7,200,000 or $03 per share at the high end of our guidance range of $01 to $03 per share. Turning to page 25, our finance asset and debt levels remain consistent with the end of twenty twenty four. During the quarter, we completed a $58,000,000 issuance of convertible debentures and used the proceeds to redeem our 2025 debentures.

The issuance secures term liquidity and was net neutral to our total debt. Turning to page 26. Total adjusted revenue increased to $54,900,000 which excludes the impact of a non cash gain of $1,800,000 in the current period resulting from a fair value adjustment related to the convertible debenture liability. The increase in revenue compared to the prior year quarter was driven by higher originations revenue and higher servicing revenue at both business segments. Interest income and interest expense each decreased primarily due to lower on balance sheet finance assets.

Operating expenses increased modestly year over year to 29,400,000.0 Adjusted EBITDA increased to 25,500,000.0, and adjusted operating income increased to 11,400,000.0. On page 27, as previously announced with our 2025 guidance, corporate operating expenses have been allocated to the business segments beginning in the first quarter. As part of our corporate simplification, we recognize a one time charge of 6,700,000.0 or 5,000,000 after tax in the quarter. Cost savings relating related to the simplification were approximately 1,000,000 in the quarter and are expected to be approximately 5,000,000 on an annualized basis. Lastly on page 28 held for trading finance assets are down modestly from Q4 at $2.00 $2,000,000 I’ll turn back to Steve for closing remarks.

Steven Hudson, Chief Executive Officer, ECN Capital: Thanks Jackie. In closing, we are reaffirming our 2025 guidance of $0.01 9 to $0.25 ECN as I said is resilient and robust, but I’d like you to take one important message away from today’s call as we shift to a more aggressive posture in remaining quarters of 2025. ECN is blessed with excess funding exceeding a half a billion dollars. We are in a very good place. We played some defense in the past years by building robust and resilient systems in all of our business to position us for growth.

Now that that work is complete, we are going on the offense. We will take advantage of this excess funding capacity with a warrior like sales culture to supercharge our growth. That’s our vision for ECN. Operator, we’re happy to take questions.

Conference Operator: Thank you. We will now take analyst questions from the telephone lines. If you have a question, please press star then one on your telephone keypad. You’ll hear a tone acknowledging your request. If you’re using a speakerphone, please lift your handset before pressing any keys.

To withdraw your question, please press pound then 1. There will be a brief pause while the participants register for questions. Thank you for your patience. And our first question today will come from Nick Priebe with CIBC Capital Markets.

Nick Priebe, Analyst, CIBC Capital Markets: Okay, thanks. Just want to start with the question at Triad. Looks originations are trending kind of nicely through the quarter and into April. Think of originations reflecting the total volume of funded loans, which would be the product of orders that would have been placed a few months prior. I understand that originations were particularly strong in April.

Just wondering how approvals will be trending subsequent to quarter end through April and May. Like are you still seeing pretty strong double digit growth there?

Lance Hull, President, Triad Financial: Yes. Thanks, Nick. This is Lance. And yes, we are. I just looked this morning through this period of May, we’re up 25 year over year in approvals.

And throughout the month of April, we were up more than 30% year over year. So we’re seeing continued strong approval growth, yes.

Steven Hudson, Chief Executive Officer, ECN Capital: And I’d add to that Lance is you’re seeing strong approval growth and a better look to book ratio.

Lance Hull, President, Triad Financial: Absolutely.

Nick Priebe, Analyst, CIBC Capital Markets: Okay. That’s good to hear. And then higher margin chattel loans constituted nearly 90% of originations in Q1. Do you have visibility on how the product mix is going to evolve through the balance of the year? Like is that a realistic sort of composition for the balance of the year?

Lance Hull, President, Triad Financial: I think we’ll continue to see strong chattel growth, but I also know that we’re rebuilding our land home products and our land secured products overall. So I think it will tilt a little bit more towards the land secured products later in the year, but chattel will remain strong, a stronger portion than it probably did most of last year.

Nick Priebe, Analyst, CIBC Capital Markets: Got it. Okay. And then just on the funding side, you’ve got the new funding partners that you called out JPMorgan and New York Life. How would the gain on sale margins from those new partners kind of land on the continuum? Like would you expect those to be just generally comparable to any other institutional funding partners?

James Barry, Chief Financial Officer, Triad Financial: Yes. This is James. They’re very consistent with prior agreements with a little bit more flexibility in what types of loans we can flow through. So it should be supportive to our forward originations look. But overall, we still stand behind our 6.5% origination margin yield for the year.

Nick Priebe, Analyst, CIBC Capital Markets: Got it. Okay, that’s great color. Thanks very much.

Steven Hudson, Chief Executive Officer, ECN Capital: And the last one that I would make is that the New York Life, all these are important relationships. The New York Life is our first direct Lifeco relationship. Our asset management partners are important to us, but going direct to Lifeco is part of our strategy.

Nick Priebe, Analyst, CIBC Capital Markets: Okay, that’s great. Thanks Steve.

Conference Operator: Your next question will come from Jimmy Goin with National Bank.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital0: Yes, thanks. Just wanted to clarify on the new funding partners and the ability to do more silver and bronze. Are those silver and bronze programs, are they higher margin? Just to refresh my memory on that. And then how is the demand for those types of products?

Are they are you looking to would you potentially see an increase in the share of silver and bronze now that you have these partners in place as we go forward?

James Barry, Chief Financial Officer, Triad Financial: Yes. So as we previously discussed, being able to originate lower tier credit is more representative of the MH market as a whole, so it is supportive of our forward originations look. And I think generally speaking, the margin between gold, silver and bronze is relatively consistent. There isn’t too much variability within how they’re priced.

Hans Kroz, Founder and CEO, IFG: Okay, understood.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital0: Just a quick one on the corporate simplification. Just remind me what some of those costs might have been that were flowing through this quarter.

Jackie Weber, Chief Financial Officer, ECN Capital: First, so the corporate simplification is our initiative where we’re streamlining corporate back office functions in with Triad. The bulk of the cost is personnel reductions. We’ve eliminated around 24 positions as part of the program.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital0: That’s clear. Thank you.

Conference Operator: We’ll move next to Steven Bowland with Raymond James.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital1: Hi, everyone. Just a numbers question. And this number jumps around a little bit, but the retained servicing rights, which is I know is a non cash, and I know it’s a discounted number, know, big kind of movement, I think this quarter. I wonder if you could just like talk about what assumptions did change. Does that flow into income at all?

I’m just trying to understand that again.

Jackie Weber, Chief Financial Officer, ECN Capital: I’ll start out here, and James can weigh in on the Triad side. Servicing as a whole, if you’re looking at the year over year increase, it’s not just from Triad, it’s also RV and Marine contributing. On the RV and Marine side, we did the majority interest acquisition at Paramount, and we’ve retained servicing under the forward flows at Source One as well. So you have about half of the increase coming from that side of the business. And then on the Triad side, James can speak further, but it does move around a little bit based on the assumptions and how many assets we’ve sold in the current period.

James Barry, Chief Financial Officer, Triad Financial: Yes. I think the only thing I would add is looking at Q1 specifically, we sold through about 40,000,000 fewer loans consistent with slightly lower originations and modest growth in HFT. Of note, looking forward into April, HFT has actually reduced slightly from March, So you’ll kind of see kind of a normalized servicing yield of 90 basis points on the year of Triad.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital1: Okay.

Steven Hudson, Chief Executive Officer, ECN Capital: And does that change it? Sorry. Again, like, you

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital1: know, I’m a I was an accountant many years ago. But does that that change? It does it impact the income? Like, is it is it going to the service income that is like, is it an offset or a positive?

Jackie Weber, Chief Financial Officer, ECN Capital: Yes. It it does hit servicing income. That’s correct.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital1: Okay. Alright. Thank you. Second question, just I know you just talked about the restructuring, the costs. What is the timing of that, that merger between Triad and and the corporate parent now?

Lance Hull, President, Triad Financial: Think I don’t know.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital1: I can’t remember the original timing, but when will that actually be merged officially?

Jackie Weber, Chief Financial Officer, ECN Capital: The process is underway. You’re correct, we did announce it back when we put our guidance out in the later part of last year. We’ve made significant headcount reductions. As I mentioned, we’ve had $1,000,000 of cost savings already in Q1. Our primary focus so far has really been on headcount and personnel costs.

We haven’t formally merged the physical locations as of yet.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital1: Okay. Sorry, there was one other thing. I guess, Steve, on the last call, you mentioned there were some delays in Q4 that would have been, you know, was worth some income. When I just go back and look at the transcript from Q4, was that part of the reason you hit the high end of guidance? Like that Q4 stuff got pushed into Q1?

Lance Hull, President, Triad Financial: This is Lance again. So on the Triad side, yes, we did get some lift in Q1 from the business that we failed to pull through in Q4 of last year. That’s one of the reasons that we saw the large increase. We’re also seeing increases for other reasons. But yes, we did see a pickup.

And we’re kind of back to return to normal from the storm interrupted series that we had in Q4.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital0: Okay. Thanks very much.

Conference Operator: And we’ll take our next question from Tom MacKinnon with BMO Capital.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital2: Yeah. Thanks. Good evening. Just following on Steve’s question here. I think you talked about 50,000,000 to $75,000,000 in Triad originations that are gonna be deferred into the first half of twenty twenty five, at least that what was mentioned in the last call.

Do you know if you picked up all of those in the first quarter?

Steven Hudson, Chief Executive Officer, ECN Capital: Yeah, Tom, I would say that you got a chunk of it in March as you’ve seen that significant increase. You’ve seen the April numbers, Lance spoke to people, are you getting a chunk of it, but somewhere in that 50 to 60,000,000 is flowing in between March and April. But when you look at the approval pipeline, it indicates it’s going to be strong through Q2 and Q3. The business is the affordability thesis to this business is proving to be correct.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital2: And then I think you also mentioned 75,000,000 of RV marine asset sales were pushed in the first quarter into a new flow vehicle. Did that all come through in the first quarter as well?

Jackie Weber, Chief Financial Officer, ECN Capital: Hey, Tom. It’s Jackie. We did complete a pool sale as expected at Source One under the new facility with Monroe. It wasn’t the full $70,000,000 but it did contribute to Q1 results.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital2: Okay. Then Steve, you had suggested that almost $03 of earnings in the fourth quarter was deferred and would work its way into the first half of twenty twenty five. How much of can you estimate how much of that 3¢ may have been I think it was a penny and a half in each one of the segments. You can’t estimate any of the lift you may have got?

Steven Hudson, Chief Executive Officer, ECN Capital: Sorry, Tom, I didn’t catch up. I think we’re on track for that. We’ve had a good solid first quarter, a small portion come out. You’ll see some of that in the second quarter as well in Q3. I think that triad is going to perform exceedingly well in 2025 as this IFG.

We might see some softness in Source One, but we’re addressing that by adding proven sales leadership to Mike’s team and the sales team. I see these temporary turndowns as an opportunity to take shares on successfully showed us at IFG. So you answer your question, you’ll see that recovery over this quarter and the next two quarters.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital2: And would tariffs have any impact on Triad’s business?

Lance Hull, President, Triad Financial: Yes. Mentioned in the earlier slide this is Lance again, I’m We’re not seeing the impacts at all at this point. Our average if you look at our approval pipeline now, our average loan amount is holding very, very steady. And then I mentioned that some of the manufacturers are beginning to see some risks because they’ve added a line item to their invoices as a price protection line item. So that way the retailer and the consumer get a little better look at what their home might be two or three months from now if it comes offline then.

But again, those are fairly small amounts now too, looking at 3% to 4%, maybe 5%. So we’re not feeling much impact at all right now and don’t anticipate any large impacts at all.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital2: Okay. That’s great. Thanks very much.

Conference Operator: And we have a follow-up from Jimmy Gooling with National Bank.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital0: Yes, thanks. Just wanted to, I guess, kind of reconcile the growth in Triad. So the channel originations obviously doing very well. I see total approvals up 19%, but originations on a whole up 10%. The guidance would suggest originations for the full year are going to grow at like 35% or something around that range.

Can you hit guidance with just chattel originations or the bulk coming from chattel originations? Or do you need the commercial side of the business to pick up as well in the back to be able to hit that full year guidance?

James Barry, Chief Financial Officer, Triad Financial: Yes. So Q1 was marked by strong growth in Chattel, and we see that continuing. We do believe that our land secured offering and also our community business will pick up towards the second half of the year as well. So we still feel comfortable with our guidance range between 1.71.9% on the year.

Catherine Moradillos, Vice President of Finance and Investor Relations, ECN Capital0: Okay. That’s good. Thank you.

Conference Operator: As there are no further questions registered, this concludes today’s conference call. You may disconnect your lines. Thank you for participating, and have a great day.

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