ECN Capital Corp.

Thank you for standing by. This is the conference operator. Welcome to the UCN Capital third quarter 2021 results conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Mr. John Wimsatt. Please go ahead, Mr. Wimsatt.

Thank you, operator. Good afternoon, everyone. First, I'd like to thank everyone for joining our Q3 earnings review call. Joining us today are Steve Hudson, Chief Executive Officer, and Michael Lepore, Chief Financial Officer. A news release summarizing these results was issued this afternoon, and the financial statements and MD&A for the three-month period ended September 30, 2021, have been filed with CDAR. 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 presentation 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&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 in MD&A and today's call include references to a number of non-IFRS measures, which we believe helped 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&A. All figures, as always, are presented in U.S. dollars unless explicitly noted. With these introductory remarks complete, I'll now turn the call over to Steve Hudson, Chief Executive Officer.

Thank you, John. Turning to slide 7, the service finance sale to Truist is scheduled to close in early December. A shareholder meeting has been called for December 2nd to approve a reduction in capital. As we mentioned earlier, no approval is required for the service finance transaction, just the form of dividend. The distribution will be paid to shareholders prior to the year end. Turning to page 8, we had an exceptional quarter. We're pleased to repeat report six cents of earnings per share, and service finance has now been reported as a discontinued business in the third quarter. We are reiterating our 21 and 22 guidance, which will be updated at Investor Day. ECN has obviously exceeded this quarter and will exceed the expectations in the fourth quarter. Originations for tri over 48%, quarter over quarter increase strong. We remain on track for a billion-dollar-plus year and originations operating income of $16 million in Q3. Backlog has continued. Builders are continuing to turn on additional or idle plants. I would reference for you the recent call from Skyline, which is a publicly traded U.S. manufactured home participant where they announced the opening of several new idle, sorry, not new, but several idle or mothballed manufacturing plants. Chattel and COP originations remain strong and the pipeline continues to expand. land home pipeline is at a record $185 million. New funding partners due to date are 12 new funding partners. KG reported solid adjusted operating income of $12.2 million. We launched a significant new multi-year co-branded partnership program. We're pleased to announce that KG has entered into a partnership, a strategic partnership with specialty lending company affiliated with Blackstone and the first step in that relationship is was a $450 million portfolio purchase with KG acting as the originator and manager. Consistent with this new partnership, ECN exited its credit card investments, which were also sold to a specialty lending company. John will speak to this in a moment. We believe that this initiative validates ECN's investment in our credit card investment management business. Turning to page 10. As I mentioned, $16.2 million of operating earnings this quarter, originations up 48%. We've added one new funding partner in the quarter, industry backlog that now extends to nine months plus. We're maintaining our guideline, a guidance of $1 billion plus of originations in 21. Turning to page 11, strong growth in both approvals and origination during the quarter. We've also continued to expand our new and improved product launch, The so-called make share that we use is a term we use throughout our business. And we're at a drive incremental growth in 22 and beyond. Slide 12 shows you a slide of our menu of services and products that we offer. This was also in the Q2 deck. I think it's interesting to note that over half of these initiatives have been launched since ECN has made its investment in Triad. Turning to channel updates. The docs up, which are deals that have been approved, signed, and are awaiting delivery of a home, remains at elevated levels. Both this backlog and the backlog and approved land home gives added credence and strength to our 2022 guidance. Page 13, sorry, 14, dealing with the land home update. We continue to see record approvals, both in volume and a growing pipeline, and we officially launched the FHA product in 21, which will also drive our higher originations. We will guide you at investor day to the high end of our billion five for originations for this business. Turning to page 15, assets held for trading remain at a very modest level. You can anticipate that this level will remain in the $30 to $50 million range. On 16, portfolio credit trends remain exceptionally strong, both in delinquencies and charge-offs. That bodes well for 22. 17 is a slide you've seen before. It shows the growth quarter over quarter over the last five years. On page 18, the triad outlook, we're redating our guidance for 21 at 43 to 46. Obviously, we're going to be above the 46 slightly. Continue to expect originations of in excess of a billion. Our core market is growing and our new products are fully launched. We're reading our guidance for 22 of 57 to 65. We will be at the top end of that and will revisit with you at investor day in early 22. As I mentioned, our guidance for originations is 1.25 to 1.5. I would guide you to the high end of that range. I look forward to having Matt and Mike present to you at Investor Day. John.