Wednesday, 3 August 2011

Carfinco Does It Again - Another Record Quarter

Carfinco Income Fund
TSX: CFN.UN
Units outstanding: 23.97 million
Units fully diluted: 24.6 million
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Understated, reliable and consistent are a few apt words for the company that quietly goes about its business; each quarter offering up to its fortunate investors an island of financial comfort amidst turmoil and stormy seas.

Carfinco turned out a record ninth quarter with the release of its Q2/2011 results that saw pre-tax earnings rise to $5.8 million versus $4.6 million in Q2/2010.

This sub-prime auto finance company has come close to perfecting its lending process. Even though Carfinco deals in a higher risk arena, delinquencies of 31+ days were down to 2.6% on its $135 million loan portfolio from 3.3% a year ago.

After tax earnings for the quarter were $4.3 million ($0.17 per unit) with current and deferred taxes coming to $1.5 million.

For the first six months of 2011, Carfinco distributed $3.5 million or 41% of after tax earnings.

To read the news release and review all financial information, please click here.