Thursday, 8 August 2013

Carfinco Sets New Earnings Record In Second Quarter

TSX: CFN
Shares Outstanding: 26.4 million
Shares Fully Diluted: 26.4 million
 
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While Carfinco management will have much more to say about the Q2 financial results on a conference call later today (August 8th), it was notable that net earnings rose to $5.8 million, topping the prior record of $5.6 million in Q3 of last year.

The second quarter earnings also jumped a healthy 15.3% from the $5 million reported in the first quarter of 2013.

Revenues for Q2/13 came in at $19.53 million and $38.71 for the first half of the year versus $17.65 million for Q2/12 and $34.42 million for the first six months of last year.

Earnings per share were $0.22 for the quarter and $0.43 for the first half of 2013 compared to $0.22 and $0.41 for the same periods of 2012.

Dividends of $0.12/share in the second quarter represented a 48.4% payout ratio of distributable cash.

Loan originations hit a record $42.6 million in the second quarter and represented a 16.5% increase from $36.6 million in Q1/13the first quarter of 2013. Accordingly, finance receivables increased to $195 million, a 4.3% rise from $187 million in the first quarter of the year.

31+ days delinquent accounts in the second quarter of the year were 2.5% versus 3.3% for the first quarter of 2013, and 2.2% for the second quarter of 2012.  The low 31+ days delinquent rates of the second quarter of 2013 and 2012 are the lowest achieved in the Company since December 2009.

The annualized loss rate on the finance receivables decreased to 13.0% during the second quarter of 2013 from 13.8% in the first quarter of 2013, and 15.1% in the fourth quarter of fiscal 2012. The annualized loss rate for the second quarter of 2012 was 11.2%.  

A conference call is scheduled for 2 PM (Mountain), 4 PM (Eastern) time.

To access the conference call by phone within Canada and the U.S. the toll-free number is 1-888-241-0326, or internationally at 1-647-427-3411.  The Conference ID is #28674139.

To read the news release, click here.