Thursday, 9 August 2012

Carfinco Delivers Stellar Results in Q2

TSX: CFN
Shares outstanding: 24.65 million
Shares fully diluted: 24.65 million
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Carfinco has proven again that it is a well oiled machine and delivered more record results in its second quarter financials that were released today.

Normalized earnings before taxes are up 28% over 2011 and year to date earnings are $10 million, an increase of 19.4% over the first half of 2011.

Management has been targeting its monthly loan originations to achieve roughly 20% growth in finance receivables for the year.  Although Carfinco has introduced tiered, risk based pricing programs which could easily grow the originations further in the future, the company has been able to achieve its growth goals on its existing underwriting programs.

HIGHLIGHTS of the second quarter 2012:

During the second quarter of 2012 Carfinco distributed 10.5 cents per share to its shareholders equating to a payout ratio of 45.1% on distributable cash;

Revenues of $17.7 million for the second quarter of 2012 represent an increase of 5.3% from the $16.8 million for the first quarter of 2012 and 22.9% from the $14.4 million for the second quarter of 2011;

Earnings before taxes for the quarter were $7.2 million, up 14.3% from $6.3 million for the first quarter of 2012 and 25.2% from $5.8 million for the second quarter of 2011;

Normalized earnings before taxes for the quarter were $7.7 million, up 15.9% from the $6.6 million in the first quarter of 2012 and 33.5% from the $5.7 million for the second quarter of 2011;

Earnings per share for the quarter were 22 cents, up 17.0% from the 19 cents per share recorded for the first quarter of 2012 and 29.4% from the 17 cents per unit recorded for the second quarter of 2011;

Return on shareholder’s equity (ROE) for the quarter on an annualized, after tax, basis was 55.8% versus 56.3% for the second quarter of 2011;

Shareholder’s equity increased 7.6% to $40.2 million during the quarter; Loan originations for the quarter were $36.8 million, a 13.6% increase from the $32.4 million for the first quarter of 2012 and an increase of 31.4% from the $28.0 million for the second quarter of 2011;

Principal balance of finance receivables was $181.1 million, increasing 5.0% in the quarter;

31+ days delinquent accounts for the quarter were 2.2%, a decrease from 2.5% at the end of the
first quarter of 2012.