Tuesday, 7 December 2010

Carfinco - Simply Incredible!

Carfinco Income Fund (TSX:CFN.UN)
Units issued: 23.9 million
Units fully diluted: 24 million
Current monthly distribution: $0.02
Q1/2010 special distribution: $0.04
Q2/2010 special distribution: $0.10
Q3/2010 special distribution: $0.10
Q4/2010 special distribution: $0.31

This afternoon ( December 7th), management announced the Fund's special quarterly & year end distribution and boy was it special.

In addition to the regular $0.02/unit monthly cash distribution, there will be an additional $0.12/unit cash distribution AND an additional unit distribution valued at $0.19. The cash and unit distributions have a payable date of December 31. Happy New Year!
The number of additional units that will be distributed will be based on the average closing price of the ten trading days preceeding the record date of December 20th.

As such, the total special distribution for the quarter will be $0.12 (cash) + $0.19 (unit) = $0.31/unit.

This brings total 2010 cash and unit distributions to $0.785/unit of which $0.595 was cash.
Carfinco's management has nicely adopted the role of old Saint Nick and is certainly making all the boys and girls very happy this holiday season.

Of note, President & CEO Tracy Graf commented in the news release that the goal for 2011 is a 20% growth rate in finance receivables.