Wednesday, 15 June 2011

Carfinco Q1, Muscle Car Earnings - 8th Consecutive Quarter Of Record Earnings

Carfinco Income Fund TSX:CFN.UN
Units outstanding: 23.97 million
Units fully diluted: 24.6 million


Carfinco released its Q1, 2011 financials just in time for today's AGM that is being held in Toronto. Although the fund had to adhere to many changes; it is now taxed as a company instead of a fund and has to report under the new International Financial Reporting Standards (IFRS), what really mattered to unit holders is that it broke another earnings record, its 8th since Q2, 2009.

Clarification of the taxation and reporting changes can be found in the Funds MD&A.

During Q1 2011, the Fund achieved an annualized, after-tax return on unit holder's equity (ROE) of 59.0%. For comparative purposes to the Fund's ROE prior to 2011, the pre-tax return on adjusted unit holder equity for the quarter is 80.0% versus 58.9% for Q1 2010.

Highlights of the financials are listed below.
  • Pre-tax earnings for the quarter were $5.5 million, up 69.2% from the $3.3 million for the first quarter of 2010;
  • Earnings per fund unit for the quarter were 17 cents;
  • Return on unit holder's equity for the quarter on an annualized basis was 59.0%;
  • Unit holder's equity increased 9.5% to $29.2 million during the quarter;
  • Loan originations for the quarter were $24.4 million, a 13.3% increase from the $21.5 million for the first quarter of 2010;
  • Principal balance of finance receivables was $145.8 million, increasing 3.3% during the quarter;
  • 31+ days delinquent accounts for the quarter were 3.3% a decrease of 21.4% from 4.2% at the end of the first quarter of 2010.
Read full news release here...

“Speaking of earnings; Carfinco’s performance attracted the attention of the Edmonton Journal (click here).