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CI Financial Reports Financial Results for the Third Quarter of 2020

• Earnings per share of $0.62 for the quarter
• Comparable selling, general and administrative expenses (SG&A) down $19.4 million and total SG&A down $15.8 million from Q3-2019
• Repurchased 4.3 million shares for $77.7 million and paid $38.6 million in dividends ($0.18 per share)
• At quarter-end, wealth management assets reach new record of $66.1 billion with the acquisitions of Balasa Dinverno Foltz and Congress Wealth Management
• After quarter-end, following the acquisition of Canadian advisory firm Aligned Capital and other announced transactions, wealth management assets will grow to a record $83 billion and total assets to a record $209 billion
• CI common shares to trade on NYSE under “CIXX” starting November 17, 2020
• Corporate rebrand creating consistency across CI’s businesses

TORONTO–(BUSINESS WIRE)–CI Financial Corp. (“CI”) (TSX: CIX) today released unaudited financial results for the quarter ended September 30, 2020.

“Our financial results were strong for the quarter with earnings per share of $0.62 and free cash flow of $144 million – an increase of 12% from last quarter,” said Kurt MacAlpine, CI Chief Executive Officer. “These results are due in part to our continued cost discipline. We have successfully cut SG&A expenses by $16 million year over year even as we have made several acquisitions this year. Excluding the impact of acquisitions, we reduced expenses by $19 million over the third quarter of last year.”

“We also made incredible progress this quarter executing against our three strategic priorities of modernizing asset management, expanding wealth management, and globalizing the firm,” Mr. MacAlpine said.

“During the third quarter, we closed on the acquisition of two U.S. wealth management firms and have subsequently reached agreements to purchase another four high-quality firms in strategic locations across the United States. These transactions will boost our U.S. wealth assets to about $22 billion, giving us a significant presence in the United States in less than a year.

“With the acquisition in October of Aligned Capital Partners of Burlington, Ontario, we have achieved exceptional scale in our wealth management business, with assets of $61 billion in Canada and total North American wealth assets of about $83 billion,” Mr. MacAlpine said.

“Consistent with our globalization strategy, we are listing our common shares on the New York Stock Exchange starting next week, which should broaden CI’s investor base and increase its corporate profile.

“We have also started rolling out the new corporate branding for CI and our subsidiaries, including the introduction of CI Global Asset Management, CI Assante Wealth Management, CI Direct Investing and CI Investment Services, as well as launching a new CI Financial website,” Mr. MacAlpine said. “The modernized brands provide consistency across the CI Financial group and reduce the complexity of our service and product offerings – making it easier for advisors and investors to do business with CI.”

Financial Results

CI reported earnings per share of $0.62 for the third quarter of 2020, compared to $0.56 in the previous quarter and $0.60 in the third quarter of 2019.

SG&A expenses for the third quarter were $108.8 million, down slightly from $109.0 million in the second quarter and down $15.8 million or 13% from $124.6 million in the third quarter of 2019. Excluding the additional expenses of firms acquired by CI this year, SG&A expenses were $105.2 million for the quarter, representing a decline of $19.4 million or 16% from the third quarter a year ago. For the first nine months of 2020, SG&A expenses excluding acquisitions were down by $49.1 million or 13% compared to the same period of 2019.

CI generated $143.9 million in free cash flow¹ during the third quarter, an increase of 12% from $128.3 million in the second quarter and a decline of 1% from 144.7 million in the same quarter a year ago.

At September 30, 2020, total ending assets under management were $128.3 billion, an increase of 2% from June 30, 2020 and a decline of 1% from September 30, 2019. Core assets under management, which consists of assets managed by CI’s Canadian and Australian subsidiaries, were $123.6 billion at September 30, 2020, an increase of 2% from three months earlier and a decline of 5% year over year. During the third quarter, U.S. assets under management grew by 10% to $4.7 billion.

Total average assets under management were $129.0 billion for the third quarter, up 7% from $120.1 billion for the second quarter and down slightly from $129.4 billion in the third quarter of 2019. Core average assets under management were $124.6 billion in the third quarter, compared to $118.4 billion for the previous quarter and $129.4 billion for the year-ago quarter.

Total wealth management assets as at September 30, 2020 were $66.1 billion, which represents a quarter-end record for CI and an increase of $12.3 billion or 23% over June 30, 2020 and an increase of $18.0 billion or 37% year over year.

Canadian wealth management assets, at $51.2 billion, increased 4% during the quarter and 6% from one year ago. This includes the assets of Assante Wealth Management (Canada) Limited, CI Private Counsel LP, CI Direct Investing (WealthBar Financial Services Inc.) and Virtual Brokers.

U.S. wealth management assets were $14.9 billion at September 30, 2020, up $10.0 billion over the quarter. During the quarter, CI acquired Balasa Dinverno Foltz LLC and an interest in Congress Wealth Management, LLC. U.S. wealth management also includes assets of The Cabana Group, LLC, One Capital Management, LLC and Surevest, LLC.

CI reported $2.0 billion in overall net redemptions for the third quarter of 2020. CI’s Canadian retail business, excluding products closed to new investors, had $1.4 billion in net redemptions, relatively unchanged versus the third quarter of 2019. CI’s Canadian institutional business had net redemptions of $1.1 billion, an increase of $0.7 billion from the same quarter a year ago. Consistent with CI’s previous quarter, nearly all the institutional redemptions came from bank and insurance-owned asset managers with in-house internal investment teams. GSFM had $0.4 billion of net sales for the third quarter of 2020, and CI’s U.S. RIA business had $0.3 billion in net sales. CI’s closed business, comprised primarily of segregated fund contracts that are no longer available for sale, had $0.2 billion in net redemptions for the quarter.

Capital Allocation

In the third quarter of 2020, CI repurchased 4.3 million shares at a cost of $77.7 million and paid $38.6 million in dividends ($0.18 per share). For the month of October 2020, CI repurchased a further 0.9 million shares, ending the month with 210,548,302 shares outstanding.

The Board of Directors declared a quarterly dividend of $0.18 per share, payable on April 15, 2021, to shareholders of record on March 31, 2021. The annual dividend rate of $0.72 per share represented a yield of 4.4% on CI’s closing share price of $16.32 on November 11, 2020.

New York Stock Exchange listing – “CIXX”

CI also announced today that its common shares have been approved for listing on the New York Stock Exchange (the “NYSE”). CI expects its common shares will commence trading on the NYSE as of market open on November 17, 2020 under the ticker symbol “CIXX.” This move is expected to broaden CI’s investor base, increase its corporate profile in the U.S. and allow CI to offer U.S. dollar-denominated shares as consideration when making acquisitions in the U.S.

In addition to listing and trading on the NYSE in U.S. dollars, CI’s common shares continue to be listed and trade on the Toronto Stock Exchange in Canadian dollars under the symbol “CIX.” Shareholders who purchased their CI common shares on the TSX and, in connection with the NYSE listing, wish to trade in U.S. dollars are advised to contact their broker for more information.

Shareholders who purchased their CI common shares “over-the-counter” or OTC, including shareholders whose shares are denoted in their institution/broker account with the symbol “CIFAF”, are advised to monitor their account to ensure their holdings are updated to reflect the NYSE listing and trading symbol, as the Company expects OTC quotations for CI common shares to cease in connection with the NYSE listing. Shareholders are advised to contact their broker for more information if they have questions in this regard.

Business highlights

• CI made significant progress in expanding its U.S. wealth management business. During the quarter:
  • CI acquired 100% ownership of Balasa Dinverno Foltz of Itasca, Illinois, a leading Chicago-area RIA with approximately $6.2 billion in assets.
  • CI announced in September an agreement to purchase 100% of Bowling Portfolio Management LLC of Cincinnati, Ohio, an RIA with $590 million in assets.
  • OCM Capital Partners LLC, which is majority owned by CI and is the parent company of One Capital Management, LLC of Westlake Village, California, announced an agreement to purchase Thousand Oaks Financial Holding, LLC, an RIA based in Thousand Oaks, California operating under the name Professional Planning. The acquisition closed in October and Thousand Oaks is being integrated into One Capital.
  • CI completed in July the acquisition of a strategic interest in Congress Wealth Management, LLC of Boston, a firm with approximately $3.6 billion in assets.
• CI acquired a majority interest in Aligned Capital Partners Inc. of Burlington, Ontario, a full-service investment dealer with approximately $11 billion in assets and more than 200 financial advisors across Canada. The acquisition was announced in August and closed on October 19, 2020.
• CI initiated its plan to rebrand the company and its subsidiaries. The changes will streamline CI’s lineup of brands, unify its operations under the CI name, and give the company a modern image reflecting its position as an integrated global asset and wealth management company. During the quarter, WealthBar Financial Services rebranded as CI Direct Investing. Following quarter-end, Assante was rebranded to CI Assante Wealth Management, CI Investments Inc. rebranded as CI Global Asset Management, BBS Securities Inc. was renamed CI Investment Services Inc., and CI Financial launched a new website to reflect the updated branding.
• The Cabana Group subsidiary, Cabana Asset Management, launched a US$1 billion lineup of exchange-traded funds using Cabana’s innovative and proven target drawdown investment strategy. The Target Drawdown ETFs were listed on the New York Stock Exchange in September and build on the proven track record of Cabana’s Target Drawdown Professional Series of separately managed accounts, which have been available in the U.S. since 2012.

Following quarter-end:

• CI announced three RIA transactions, agreeing to acquire:
  • 100% of The Roosevelt Investment Group, Inc., a New York-based wealth manager with approximately $3.6 billion in assets.
  • Full ownership of Doyle Wealth Management, Inc. of St. Petersburg, Florida, which has approximately $1.5 billion in assets.
  • A majority interest in Stavis & Cohen Financial LLC of Houston, a firm with approximately $759 million in assets.

Analysts’ conference call (updated)

CI will hold a conference call with analysts today at 10:00 a.m. Eastern Time, led by Chief Executive Officer Kurt MacAlpine and Chief Financial Officer Douglas Jamieson. The call and a slide presentation will be accessible through a webcast, which can also be reached through the Events section of the Investor Relations page on www.cifinancial.com. Alternatively, investors may listen to the discussion by dialing 1-800-367-2403 or 647-490-5367 (Passcode: 7837577). A replay of the call will be available for one year following the presentation (Passcode: 7837577). The webcast will be archived in the Financials section of www.cifinancial.com.

Financial highlights

¹Free cash flow, net debt, adjusted net income, adjusted earnings per share and adjusted EBITDA are not standardized earnings measures prescribed by IFRS. Descriptions of these measures, as well as others, and reconciliations to the nearest IFRS measures, where necessary, are included in Management’s Discussion and Analysis available at www.cifinancial.com.

²Trailing 12 months, calculated using adjusted net income

For detailed financial statements for the quarter ended September 30, 2020, including Management’s Discussion and Analysis, which contains discussions of non-IFRS measures, please see CI’s website at www.cifinancial.com under Investor Relations / Financials, or contact [email protected].

About CI Financial

CI Financial Corp. (TSX: CIX) is an independent company offering global asset management and wealth management advisory services. CI’s primary asset management businesses are CI Global Asset Management and GSFM Pty Ltd., and it operates in wealth management through Assante Wealth Management (Canada) Ltd., CI Private Counsel LP, Aligned Capital Partners Inc., CI Direct Investing (WealthBar Financial Services Inc.), CI Investment Services Inc., Balasa Dinverno Foltz LLC, The Cabana Group, LLC, Congress Wealth Management, LLC, One Capital Management, LLC and Surevest LLC. Further information is available at www.cifinancial.com.

All financial amounts in Canadian dollars unless stated otherwise.

CI Global Asset Management is a registered business name of CI Investments Inc.

This press release contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to CI Financial Corp. (“CI”) and its products and services, including its business operations, strategy and financial performance and condition. Forward-looking statements are typically identified by words such as “believe”, “expect”, “foresee”, “forecast”, “anticipate”, “intend”, “estimate”, “goal”, “plan” and “project” and similar references to future periods, or conditional verbs such as “will”, “may”, “should”, “could” or “would”. Forward-looking statements in this press release include statements about the potential listing of CI’s common shares on the NYSE, the timing and satisfaction of any conditions relating thereto, the potential impact thereof on CI’s investor base, corporate profile and acquisition strategy and “over-the-counter” quotations. These statements and other forward-looking statements are not historical facts but instead represent management beliefs regarding future events, many of which by their nature are inherently uncertain and beyond management’s control. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. The material factors and assumptions applied in reaching the conclusions contained in these forward-looking statements include that the investment fund industry will remain stable and that interest rates will remain relatively stable. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market conditions, including interest and foreign exchange rates, global financial markets, changes in government regulations or in tax laws, industry competition, technological developments and other factors described or discussed in CI’s disclosure materials filed with applicable securities regulatory authorities from time to time. The foregoing list is not exhaustive and the reader is cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, CI undertakes no obligation to update or alter any forward-looking statement after the date on which it is made, whether to reflect new information, future events or otherwise.

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Investor Relations

Jason Weyeneth, CFA

Vice-President, Investor Relations & Strategy

(416) 681-8779

[email protected]

Media

Murray Oxby

Vice-President, Communications

(416) 681-3254

[email protected]

KEYWORDS: North America Canada

INDUSTRY KEYWORDS: Professional Services Finance

MEDIA:

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Hyliion Reports Third Quarter 2020 Financial Results

AUSTIN, Texas–(BUSINESS WIRE)–Hyliion Holdings Corp. (NYSE: HYLN) (“Hyliion Holdings”), a leader in electrified powertrain solutions for Class 8 commercial vehicles, today reported third quarter financial results for fiscal year 2020 for Hyliion Inc. (“Hyliion”).

Key Business Highlights

• Completed strategic combination between Hyliion Inc. and Tortoise Acquisition Corp. on October 1, 2020, yielding approximately $520 million in net proceeds to fund Hyliion’s growth plans and long-term objectives
• Installed eight hybrid electric units in the third quarter of 2020 for four fleet-based customers
• Signed agreement with FEV North America Inc. to accelerate commercialization of the Hypertruck ERX

Executive Commentary

“With ample resources from our strategic combination, Hyliion is well-capitalized and primed to disrupt the powertrain market. Our focus in 2020 and 2021 will be to position the company for long-term sustainable growth, capturing the material market opportunity from the electrification of class 8 vehicles. Along the way, our dynamic and proprietary solutions will help our commercial vehicle customers change the way they view performance, total cost of ownership, data, and sustainability,” commented Thomas Healy, Hyliion Holdings’ Chief Executive Officer.

“In the third quarter of 2020, we made progress toward commercialization of our Hybrid and Hypertruck ERX solutions for the Class 8 truck market, while also establishing key partnerships. We are experiencing strong interest for our solutions and are utilizing our resources to develop a scaled infrastructure that will be able to support demand from this $800 billion market. Overall, I am pleased with the progress we have made as we remain on track to meet our product milestones in 2021,” concluded Healy.

Business Impact of COVID-19

Hyliion continues to execute on its business objectives and drive growth across its platform, despite the effects of the COVID-19 pandemic on the world economy. Hyliion’s management team continues to work to advance its business objectives while maintaining the safety of its employees, suppliers, and customers. Hyliion has taken actions to mitigate issues caused by the pandemic and does not believe that those disruptions will materially impact or delay its long-term objectives.

3Q20 Conference Call

Hyliion Holdings will host a conference call and webcast for investors and other interested parties to review Hyliion’s third quarter 2020 financial results on Thursday, November 12, 2020 at 8:30 AM ET, which it will file with the Securities and Exchange Commission (the “SEC”) on Form 8-K/A. A live webcast of the call, as well as an archived replay, will be available online on the Investor Relations section of Hyliion’s website. Those wishing to participate can access the call using the links below:

Conference Call Online Registration: http://www.directeventreg.com/registration/event/5648525

Webcast: http://investors.hyliion.com/events-and-presentations

Third quarter financial results for fiscal year 2020 for Hyliion Holdings (f/k/a Tortoise Acquisition Corp.) on a standalone basis will also be filed with the SEC on Form 10-Q, and unaudited combined condensed pro formas for such period for Hyliion Holdings and Hyliion, will also be filed with the SEC under Form 8-K/A.

About Hyliion

A wholly owned subsidiary of Hyliion Holdings Corp. (NYSE: HYLN), Hyliion’s mission is to reduce the carbon intensity and greenhouse gas (GHG) emissions of commercial transportation Class 8 vehicles by being a leading provider of electrified powertrain solutions. Leveraging advanced software algorithms and data analytics capabilities, Hyliion offers fleets an easy, efficient system to decrease fuel and operating expenses while seamlessly integrating with their existing fleet operations. Headquartered in Austin, Texas, it designs, develops and sells electrified powertrain solutions that are designed to be installed on most major Class 8 commercial vehicles, with the goal of transforming the commercial transportation industry’s environmental impact at scale. For more information, visit www.hyliion.com.

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of federal securities laws with respect to Hyliion Holdings and Hyliion. These forward-looking statements generally are identified by words such as “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Such forward-looking statements include statements about Hyliion’s ability to disrupt the powertrain market, Hyliion’s focus in 2020 and 2021, the effects of Hyliion’s dynamic and proprietary solutions on its commercial vehicle customers, accelerated commercialization of the Hypertruck ERX, the ability to meet 2021 product milestones, the impact of COVID-19 on long-term objectives, and the ability to reduce carbon intensity and GHG. Hyliion Holdings undertakes no obligation, and specifically declines any obligation, except as required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the factors, risks and uncertainties regarding the Hyliion Holdings’ business described in the “Risk Factors” sections of the Hyliion Holdings’ filings with the SEC, and other factors, risks and uncertainties identified and addressed in the Hyliion Holdings’ filings with the SEC. Forward-looking statements reflect the reasonable understanding and belief of Hyliion Holdings as of the date they are made. Readers are cautioned not to put undue reliance on any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005322/en/

INVESTOR INQUIRIES

Bob Gujavarty

Hyliion Holdings

[email protected]

MEDIA RELATIONS

Mustafa Riffat

[email protected]

Jeremy Cohen

[email protected]

Edelman

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Alternative Vehicles/Fuels Other Transport Technology Trucking Automotive Transport Other Automotive Software Data Management Logistics/Supply Chain Management

MEDIA:

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Temporary Jobs Providing Crucial Safety Net in COVID Economy, PeopleReady Survey Finds

More than half of people taking temporary jobs have been affected by job loss, full-time employment elusive for many

TACOMA, Wash.–(BUSINESS WIRE)–
As job loss continues to grip the nation and the full-time permanent job market struggles to recover, temporary jobs are proving to be a safety net for many people across the country, according to a new survey from staffing leader PeopleReady.

The PeopleReady survey found that 51% of those taking temporary jobs have experienced job loss (either themselves or a household member) in the past month, and 78% of them are also looking for a full-time permanent job but having difficulty finding one (67%). The overwhelming majority of respondents (79%) said that income from temporary jobs has become critical in maintaining their household budgets since the economic downturn.

“The full-time job market will take time to recover. Following an economic downturn, temporary jobs tend to return to the marketplace sooner,” said Taryn Owen, president of PeopleReady. “Temporary jobs are available now to connect people to work. Whether someone is out of work or looking to earn more money over the holidays, temporary employment can help.”

While the majority of respondents (67%) reported having more difficulty paying their bills since the economic downturn, nearly all of them (99%) said they rely on income from temporary work to pay for everyday household expenses, including rent or mortgage payments (43%), utility bills (15%), groceries (15%), car payments (7%), and other living costs (20%).

If they were unable to work, respondents reported their savings would last: one week or less (21%), 2–3 weeks (13%), 1–2 months (16%), 3–5 months (8%), 6–11 months (4%), a year or longer (4%). Many said they had no personal savings at all (35%).

“Job seekers who are struggling to find the kinds of full-time jobs they lost may want to consider a different approach,” added Owen. “Temporary jobs can help them bridge employment gaps, build new skills, and establish relationships with potential employers—all while providing much-needed income.”

PeopleReady has a variety of ways for job seekers to access potential job opportunities: via app (JobStack), online (www.jobs.peopleready.com), and in person (at all PeopleReady branches across the nation).

Survey Methodology

A SurveyMonkey survey of 1,749 temporary workers was conducted by PeopleReady between Sept. 7, 2020, and Nov. 6, 2020.

About PeopleReady

PeopleReady, a TrueBlue company (NYSE: TBI), specializes in quick and reliable on-demand labor and highly-skilled workers. PeopleReady supports a wide range of blue-collar industries, including construction, manufacturing and logistics, waste and recycling, and hospitality. Leveraging its game-changing JobStack platform, PeopleReady serves more than 130,000 businesses and puts more than 300,000 people to work each year, operating more than 600 branch offices across all 50 states, Puerto Rico, and Canada. Learn more at www.peopleready.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005395/en/

Media Contact

David Irwin

PeopleReady Communications Director

[email protected]

630-453-1120

KEYWORDS: United States North America Washington

INDUSTRY KEYWORDS: Women Consumer Professional Services Men Human Resources

MEDIA:

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Contacts:
Enthusiast Gaming: - Eric Bernofsky
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Media Relations – ID Public Relations
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XL Fleet Generates Record Third Quarter 2020 Revenue

Remains on Track to Complete Merger with Pivotal Investment Corporation II (NYSE: PIC) in Fourth Quarter of 2020

BOSTON–(BUSINESS WIRE)–
XL Fleet (“XL” or the “Company”), a leader in vehicle electrification solutions for commercial and municipal fleets, today announced that its revenue for the third quarter of 2020 was the highest for a single quarter in the Company’s history.

XL achieved record quarterly total GAAP revenue of $6.3 million for the third quarter of 2020. In comparison, XL achieved $2.6 million in revenue for the third quarter in 2019, and approximately $7.2 million in revenue for the full fiscal year ended December 31, 2019. The revenue increase was driven by continued product adoption across the Company’s portfolio, which is currently comprised of XL’s core hybrid and plug-in hybrid electric drivetrain business. The Company expanded margins that resulted in positive gross margins of 12.1% for the third quarter of 2020, as compared to negative (3.7%) for the third quarter of 2019.

Due to strong year-to-date results, XL remains on track to deliver on its full year 2020 revenue forecast of approximately $21 million. XL continues to grow its sales opportunity pipeline for 2021 to $220 million as of today, which supports XL’s current revenue forecast of $75 million for fiscal year 2021.

“Our record Q3 revenue nearly matches our performance for the entire prior calendar year in a single quarter,” said Dimitri Kazarinoff, Chief Executive Officer of XL. “This accomplishment is a testament to the strength of XL’s differentiated platform and proven business model. We are excited by the strong momentum we are experiencing across our product portfolio, the increased adoption from existing customers, and the continued expansion of new customer relationships across North America. We look forward to further leveraging our deep customer and partner relationships to build on this success, drive significant growth, and advance our leadership position within commercial fleet electrification.”

“Fleet electrification is a massive long-term opportunity supported by favorable market and regulatory trends and an enduring focus on the decarbonization of operations by fleet owners globally,” said Tod Hynes, Founder and Chief Strategy Officer of XL. “We are committed to delivering solutions that meet our customers’ sustainability objectives and reliability requirements through products and services available today. Moreover, XL’s strong track-record, long-term relationships, and established supply chain partnerships continue to provide opportunities to further scale our business and broaden our product portfolio.”

XL remains on track to complete its previously announced merger agreement with Pivotal Investment Corporation II (NYSE: PIC) (“Pivotal”) in the fourth quarter of 2020. Upon closing, the combined company will be named XL Fleet Corp. and is expected to remain listed on the New York Stock Exchange under a new ticker symbol, “XL”, with no material debt expected to be outstanding. Pivotal filed its amended registration statement on Form S-4 with the U.S. Securities and Exchange Commission on November 12, 2020, which includes a complete set of XL’s financial results through the end of the third quarter of 2020.

About XL Fleet

XL Fleet is a leading provider of vehicle electrification solutions for commercial and municipal fleets in North America, with more than 130 million miles driven by customers such as The Coca-Cola Company, Verizon, Yale University and the City of Boston. XL’s hybrid and plug-in hybrid electric drive systems can increase fuel economy up to 25-50 percent and reduce carbon dioxide emissions up to 20-33 percent, decreasing operating costs and meeting sustainability goals while enhancing fleet operations. XL’s plug-in hybrid electric drive system was named one of TIME magazine’s best inventions of 2019.

For additional information, please visit www.xlfleet.com.

About Pivotal Investment Corporation II

Pivotal Investment Corporation II (NYSE: PIC) is a blank check company organized for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities. On September 18, 2020, Pivotal announced that it had entered into a definitive merger agreement with XL Fleet. Upon closing, the combined company will be named XL Fleet and is expected to remain listed on the New York Stock Exchange under a new ticker symbol, “XL”. For additional information, please visit https://www.pivotalic.com/.

Important Information and Where to Find It

This communication is being made in respect of the proposed merger transaction involving Pivotal and XL. Pivotal filed a registration statement on Form S-4 with the Securities and Exchange Commission (the “SEC”), which includes a proxy statement/prospectus of Pivotal, and certain related documents, to be used at the meeting of shareholders to approve the proposed business combination and related matters. INVESTORS AND SECURITY HOLDERS OF PIVOTAL ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS, AND ANY AMENDMENTS THERETO AND OTHER RELEVANT DOCUMENTS THAT WILL BE FILED WITH THE SEC, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT XL, PIVOTAL AND THE BUSINESS COMBINATION. The definitive proxy statement will be mailed to shareholders of Pivotal as of a record date to be established for voting on the proposed business combination. Investors and security holders will also be able to obtain copies of the registration statement and other documents containing important information about each of the companies once such documents are filed with the SEC, without charge, at the SEC’s web site at www.sec.gov.

The information contained on, or that may be accessed through, the websites referenced in this press release is not incorporated by reference into, and is not a part of, this press release.

Participants in the Solicitation

Pivotal, XL and certain of their respective directors and executive officers may be deemed participants in the solicitation of proxies from the shareholders of Pivotal in favor of the approval of the business combination and related matters. Shareholders may obtain more detailed information regarding the names, affiliations and interests of certain of Pivotal’s executive officers and directors in the solicitation by reading Pivotal’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, and the proxy statement and other relevant materials filed with the SEC in connection with the business combination when they become available. Information concerning the interests of Pivotal’s participants in the solicitation, which may, in some cases, be different than those of their stockholders generally, will be set forth in the proxy statement relating to the business combination when it becomes available. You may obtain free copies of these documents filed with the SEC, without charge, at the SEC’s web site at www.sec.gov.

No Offer or Solicitation

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such other jurisdiction.

Forward Looking Statements

The information in this press release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of present or historical fact included in this presentation, regarding the proposed business combination, including Pivotal’s ability to consummate the transaction, the timing of the closing of the business combination, the benefits of the transaction and the combined company’s future financial performance, as well as the combined company’s strategy, future operations and product and service offerings, estimated financial position, estimated revenues and losses, projected costs, prospects, customer pipeline, plans and objectives of management, and the Company’s ability to achieve its forecasted revenue targets are forward-looking statements. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. These statements may be preceded by, followed by or include the words “anticipates,” “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates” or “intends” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed in Pivotal’s Annual Report on Form 10-K for the year ended December 31, 2019 under Risk Factors in Part I, Item 1A and in Pivotal’s Quarterly Reports on Form 10-Q for the quarters ended June 30, 2020 and September 30, 2020. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. These forward-looking statements are expressed in good faith, and Pivotal and XL believe there is a reasonable basis for them. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and neither Pivotal nor XL is under any obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports, which Pivotal has filed or will file from time to time with the SEC.

In addition to factors previously disclosed in Pivotal’s reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the parties’ ability to meet the closing conditions to the merger, including approval by stockholders of Pivotal and XL on the expected terms and schedule and the risk that regulatory approvals required for the merger are not obtained or are obtained subject to conditions that are not anticipated; delay in closing the merger or the PIPE Offering; failure to realize the benefits expected from the proposed transaction; the effects of pending and future legislation; risks related to disruption of management time from ongoing business operations due to the proposed transaction; business disruption following the transaction; other consequences associated with mergers, acquisitions and divestitures and legislative and regulatory actions and reforms; risks associated with XL’s business, including the highly competitive nature of XL’s business and the market for hybrid electric vehicles; litigation, complaints, product liability claims and/or adverse publicity; cost increases or shortages in the components necessary to support XL’s products and services; the introduction of new technologies; privacy and data protection laws, privacy or data breaches, or the loss of data; and the impact of the COVID-19 pandemic on XL’s business, results of operations, financial condition, regulatory compliance and customer experience.

Any financial projections in this communication are forward-looking statements that are based on assumptions that are inherently subject to significant uncertainties and contingencies, many of which are beyond Pivotal’s and XL’s control. While all projections are necessarily speculative, Pivotal and XL believe that the preparation of prospective financial information involves increasingly higher levels of uncertainty the further out the projection extends from the date of preparation. The assumptions and estimates underlying the projected results are inherently uncertain and are subject to a wide variety of significant business, economic and competitive risks and uncertainties that could cause actual results to differ materially from those contained in the projections. The inclusion of projections in this communication should not be regarded as an indication that Pivotal and XL, or their respective representatives and advisors, considered or consider the projections to be a reliable prediction of future events.

This communication is not intended to be all-inclusive or to contain all the information that a person may desire in considering in an investment in Pivotal and is not intended to form the basis of an investment decision in Pivotal. All subsequent written and oral forward-looking statements concerning Pivotal and XL, the proposed transactions or other matters and attributable to Pivotal and XL or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112005378/en/

For XL Fleet

Media:

Eric Foellmer

(617) 648-8551

[email protected]

Investors:

Marc Silverberg

ICR, Inc.

[email protected]

For Pivotal Investment Corporation II

Jonathan Gasthalter/Nathaniel Garnick/Sam Fisher

Gasthalter & Co.

(212) 257-4170

[email protected]

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS: Fleet Management Environment Alternative Vehicles/Fuels Automotive Automotive Manufacturing Logistics/Supply Chain Management Transport Manufacturing

MEDIA:

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First Home Bancorp, Inc. Reports Record Earnings for Third Quarter of 2020

ST. PETERSBURG, Fla.–(BUSINESS WIRE)–
First Home Bancorp, Inc. (OTCQX: FHBI) (“FHBI” or the “Company”), parent company of First Home Bank (“First Home” or the “Bank”) reported record earnings for the third quarter of 2020, driven by mortgage banking income, as well as loan origination fees and net interest income associated with the Paycheck Protection Program (“PPP”). The Company reported net income for the third quarter 2020 of $5.25 million, or $2.20 per basic common share, compared to net income of $2.35 million, or $0.95 per basic common per share in the second quarter 2020, and $1.28 million, or $0.60 per basic common share in the third quarter of 2019. Year-to-date net income through the September 30, 2020 was $7.10 million, an increase of $3.78 million or 114% over year-to-date net income through September 30, 2019 of $3.32 million. The third quarter’s earnings contributed to an increase in tangible book value to $21.85 per basic common share.

FHBI Chief Executive Officer Anthony N. Leo stated: “Our efforts over the prior three years to diversify revenue through the expansion of our mortgage banking operations were key to the Company’s record performance in the third quarter of 2020. In addition, as a leading nationwide SBA lender, we were well positioned to be among the region’s foremost producers of PPP loans, driving revenue through origination fees and net interest income. At the same time, we strengthened our balance sheet substantially in the third quarter with the provision of $7 million to the allowance for loan and lease losses should we experience deterioration in credit quality resulting from adverse economic conditions.”

Net Income and Performance Ratios

Key components of the Company’s net income in the third quarter of 2020 include:

• The Bank’s Residential Mortgage Division produced a record volume of loan originations, with production of $598 million during the third quarter of 2020, reaching $1.28 billion in production year-to-date.
• PPP net loan origination fee income of $4.30 million was recognized in the third quarter of 2020, compared to $3.87 million recognized in the second quarter of 2020. There remains $19.53 million of PPP net loan origination fees on the balance sheet as of September 30, 2020, which will be recognized over the remaining estimated lives of the loans.
• Interest income on PPP loans in the third quarter of 2020 was $2.27 million compared to $1.17 million in the second quarter 2020. PPP loans have been funded almost entirely by the Federal Reserve’s PPP Liquidity Facility (“PPPLF”) at a rate of 35 bps.
• The Company’s record earnings were achieved while recognizing no gain on sale of SBA guaranteed loans. In consideration of strong revenue from other sources, no SBA guaranteed loans were sold in the third quarter, advancing the Company’s strategy of increasing recurring revenue through holding government guaranteed loans.
• The Company recorded provision for loan losses of $7.00 million during the quarter, compared to $3.00 million in the second quarter of 2020 and $2.30 million in the same quarter of 2019.

The Company’s return on average common equity equaled 43.23% for the quarter, bringing year-to-date return on average common equity to 19.73%. Return on average assets for the quarter equaled 1.44%, bringing year-to-date return on average assets to 0.87%. The Company’s return on assets ratios were impacted by $880 million in net PPP loans on the Company’s balance sheet, thereby increasing average assets for the period significantly above normalized levels.

Balance Sheet Highlights

Total assets increased by $31.32 million or 2.13% during the third quarter of 2020 to $1.50 billion, mainly due to increases in residential loans held for sale and PPP loans, offset partially by a decline in cash as the Company utilized on balance sheet liquidity and the PPPLF to fund PPP loans. Total assets increased $994.05 million or 195.89% from the third quarter of 2019, mainly due to the addition of $879.51 PPP loans, net of origination fees, during the second and third quarters of 2020, as well as increases in residential loans held for sale, conventional loans, and SBA loans. Further balance sheet details for the third quarter of 2020 are as follows:

• Gross loans, excluding loans held for sale and PPP loans, increased by $30.13 million or 8.44% during the third quarter of 2020 to $387.24 million due to an increase in conventional community bank loans, as well as the resumption in mid-July of SBA 7(a) lending. Traditional SBA production was largely halted during the second quarter of 2020 as a result of the COVID-19 Pandemic and related focus on PPP loans.
• PPP loans, net of deferred origination fees, increased by $69.37 million or 8.56% in the third quarter of 2020 to $879.51 million.
• Deposits decreased by $66.10 million or 11.47% during the third quarter of 2020 to $510.14 million, with the majority of the decrease coming from a decline in time deposits of $77.04 million, offset by a net increase in other types of deposits, mainly money market accounts.
• Deposits increased $97.77 million, or 23.71% over the third quarter of 2019, with time deposits declining by $82.78 million year over year, offset by increases in transaction accounts and money market and savings accounts.

Asset Quality

Over the past five years, the Company’s loan losses have been incurred primarily in its SBA unguaranteed loan portfolio, particularly loans originated under the SBA 7(a) Small Loan Program. The Small Loan Program represents loans of $350,000 or less and carry an SBA guaranty of 75% to 85% of the loan, depending on the original principal balance. The default rate on loans originated in the SBA 7(a) Small Loan Program is significantly higher than the Bank’s other SBA 7(a) loans, conventional commercial loans, or residential mortgage loans.

Net charge-offs for the third quarter 2020 were $967 thousand, a decrease of $593 thousand from $1.56 million for the second quarter 2020. Net charge-offs as a percentage of average loans, excluding PPP loans, were 0.26% for the third quarter 2020, a decrease from 0.45% in the second quarter. Non-performing assets to total assets were 0.25% as of September 30, 2020, a slight increase from 0.23% as of June 30, 2020, and a significant decrease from 0.91% as of September 30, 2019. Since the majority of the Company’s loan portfolio consists of SBA loans, most of which received principal and interest payments under Section 1112 of the CARES Act, asset quality trends may appear more favorable than they otherwise would without the CARES Act support.

As of September 30, 2020, a total of 37 loans with principal balances totaling $3.09 million were under payment deferral. Of these, 31 are SBA loans totaling $1.99 million in outstanding unguaranteed balance. We expect the level of SBA loans on deferral to increase with the expiration of the Section 1112 payment support afforded under the CARES Act.

Although the Company’s asset quality trends indicate minimal stress on the portfolio, management believes it is prudent to be proactive in increasing the allowance for loan losses using qualitative measures. The ratio of the allowance for loan losses to total loans, excluding SBA guaranteed loans, residential loans held for sale, and loans whereby the Fair Value Option was elected, was 6.86% as of September 30, 2020, an increase from 4.98% as of June 30, 2020.

Capital Strength

The Bank’s Tier 1 leverage ratio increased to 10.85% as of September 30, 2020. The Tier 1 leverage ratio temporarily dropped to 6.77% at June 30, 2020 due to excess short-term cash held to ensure funding for PPP loans, as well as a timing difference between the funding of PPP loans as their pledge to the PPPLF. The CET 1 and Tier 1 capital ratio to risk-weighted assets increased to 15.33% as of September 30, 2020 from 15.14% as of June 30, 2020, and the total capital to risk-weighted assets ratio increased to 16.75% as of September 30, 2020 from 16.55% as of June 30, 2020.

In addition, the Company raised approximately $3.8 million of 8% Series B Cumulative Convertible Preferred Stock in the third quarter, of which $2.5 million was downstreamed to the Bank subsidiary to provide additional capital strength.

About the Company

First Home Bancorp, Inc. is the parent company of First Home Bank, a Florida state-chartered banking institution and Federal Reserve member. The Company is headquartered in St. Petersburg, Florida with 6 full-service banking centers in the Tampa Bay area as of September 30, 2020. In addition to traditional community banking services, the Company specializes in providing lending services to small businesses nationwide guaranteed by the Small Business Administration (“SBA”). The Company also derives a significant portion of its earnings and loan production from a nationwide residential mortgage lending division with 28 residential loan production offices across the country.

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “is confident that” and similar expressions are intended to identify these forward-looking statements. These forward-looking statements involve risk and uncertainty and a variety of factors could cause our actual results and experience to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. First Home Bancorp, Inc. does not have a policy of updating or revising forward-looking statements except as otherwise required by law, and silence by management over time should not be construed to mean that actual events are occurring as estimated in such forward-looking statements.