Wednesday, 9 November 2011

Carfinco - Impressive 52.6% Return On Equity in Record Breaking Quarter

Carfinco Income Fund
TSX: CFN.UN
Units outstanding: 24.61 million
Units fully diluted: 24.65 million
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Carfinco has done it again with the checkered flag waving and a tenth consecutive record pre-tax earnings quarter, this time earning $6 million in Q3, 2011.

During the third quarter the fund achieved an annualized, after-tax return on unitholder's equity of 52.6% - Spectacular!

In yesterday's late news the fund also mentioned that the large servicing contract that it was awarded earlier this year started October 1st and that the fourth quarter earnings will include all of the fees earned from managing this large portfolio, which will provide extra revenue to the fund for the next 24-36 months.

Highlights of Q3:
  • Pre-tax earnings for the quarter were $6.0 million, up 21.5% from the $4.9 million for the third quarter of 2010;
  • Earnings per fund unit for the quarter was 18 cents;
  • Unitholder’s equity increased 7.4% to $34.0 million during the quarter;
  • Loan originations for the quarter were $31.7 million, a 22.7% increase from the $25.8 million for the third quarter of 2010;
  • Principal balance of finance receivables was $160.3 million, increasing 5.1% during the quarter and 13.6% for the first nine months of 2011, putting us close to our target of 20% growth for the year;
  • 31+ days delinquent accounts for the quarter were 2.7%, similar to the 2.6% for the second quarter of 2011 and a decrease from 3.0% for the third quarter of 2010.
On another note, Carfinco management is sharing its great news during extensive meetings throughout Toronto's financial community over the next couple of days.