Exchange Income Corporation Draws Strength from Diversity to Deliver Strong Resu…

Net Debt Reduced Again in Fourth Quarter

WINNIPEG, MB, Feb. 17, 2021 /CNW/ – Exchange Income Corporation (TSX: EIF) (“EIC” or the “Corporation”) a diversified, acquisition-oriented company focused on opportunities in the aviation, aerospace and manufacturing sectors, reported its financial results for the three- and twelve-months ending December 31, 2020. All amounts are in Canadian currency.

2020 Financial Highlights

• Generated Revenue of $1.15 billion

• Preserved EBITDA margins, with Consolidated EBITDA of $285 million

• Safeguarded Free Cash Flow less Maintenance Capital Expenditures, producing $113 million or $3.23 per share

• Earned Adjusted Net Earnings per share of $1.35

• Annual Free Cash Flow less Maintenance Capital Expenditures Payout Ratio of 71%

Q4 Financial Highlights

• Generated Revenue of $302 million

• Preserved EBITDA margins, with Consolidated EBITDA of $82 million

• Safeguarded Free Cash Flow less Maintenance Capital Expenditures, producing $41 million or $1.17 per share, an increase of 7% over the comparative period

• Earned Adjusted Net Earnings per share of $0.53

• Three Month Free Cash Flow less Maintenance Capital Expenditures Payout Ratio improved to 49%

CEO Commentary

“2020 was a year unlike any in our history,” said Mike Pyle, CEO of EIC. “Lockdowns, travel limitations, employees working remotely, the economy beginning to open up, and then the imposition of even tighter restrictions during the late-year second-wave. 2020 had it all. Despite these challenges, EIC delivered consistently remarkable financial and operational performance. From a financial perspective, the Corporation generated sufficient cash flow since the onset of the pandemic to cover its Maintenance Capital Expenditures, invest in the future through Growth Capital Expenditures and complete the acquisition of Window Installation Specialists Inc. (“WIS”), pay its dividend and reduce its debt, net of cash.”

“Operationally, I could not be prouder of the management and staff at our subsidiaries,” continued Mr. Pyle. “Our social responsibility to our customers and employees was of paramount importance and our teams adapted quickly to the ever-changing circumstances of the pandemic while consistently demonstrating their commitment to prioritizing the health and safety of our customers and employees. By emphasizing across our organization EIC’s responsibility to contribute positively in the communities where we operate, we consistently found ways to continue delivering goods and services. EIC companies also showed incredible initiative and adaptability in pivoting to make unique and meaningful contributions in the fight against COVID-19. By designing and manufacturing PPE for front-line personnel, continuing to be the lifeline reliably delivering essential aviation services to remote communities, providing critical medevac services in the North, and now delivering the vaccines to vulnerable populations in our communities that are allowing the first glimpses of hope for a…