Solution is reporting net income of $907,166, or $0.011, per share for the year ending October 31, 2021. This compares to net income of $400,413 or $0.005 per share for the year ending October 31, 2020. Financial Results Adjusted net income, which is more reflective of actual cash earnings, for the year ending October 31, 2021, was $1,362,231(1) or $0.016 per share compared to $1,059,391 or $0.013 per share for the year ending October 31, 2020. Adjusted Net Income excludes the non-cash accretion expense related to the convertible debentures and right of use assets of $94,907, income tax provision of $244,000, share-based compensation expense of $73,625 and amortization expense of $42,533.
Total lease and finance portfolio increased 10.3% to $27,788,693 over the prior year. Net revenue increased 43% over the prior year to $20,452,133.
“We are very proud of our year end operating results which really demonstrate our ability to adapt to market conditions. Despite the general slow down in the number of new vehicle leasing opportunities caused by the COVID 19 induced semiconductor problem impacting the auto industry, we capitalized on the shortage of vehicles in the market by proactively selling older vehicles in our portfolio at a premium which helped contribute to an even more profitable year than 2020,” began Bryan Pang, Solution’s CEO. “Like everyone, we are hopeful that COVID 19 will get under control soon and we can get back to more normal operations in the auto industry. We have now completed our licensing and expansion into Ontario and are well positioned to capitalize on this expanded market opportunity, however, the timing of improved market conditions across Canada remains unclear. We wish all of our customers and investors a safe and successful 2022,” concluded Bryan. Net income for the year more than doubled to $907,166 and Adjusted net income(1) increased to $1,322,182.
At October 31, 2021, Solution had 342 vehicles in its lease portfolio, a net increase of 8 vehicles but amounting to $2,596,249 of value during the year as a result of the resale of a number of older vehicles in the Company’s lease portfolio to bring the total lease portfolio to $27.8 million. At October 31, 2021 the average remaining lease term for the portfolio was 1.8 years, weighted by net book value for each vehicle. At October 31, 2021, Solutions’ 342 leases were generating annualized gross rental and lease revenue of approximately $8.2 million. Lease Portfolio
Solution’s operating cash flow for the year ending October 31, 2021 decreased moderately from $6,925,539 to $6,248,917 during the year. Story continues
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