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RIFCO Reports $416K First Quarter Profit

^{Published on 2010-08-26 10:17:07 - Market Wire}
 

 - The average cost of borrowing reduced in the quarter to 7.51% from 7.95% in the same quarter of the prior year. - The average portfolio yield has increased to 20.03% from 19.54% in the same quarter of the prior year. 

 - Managed delinquent accounts over 30 days decreased to 4.47% from 5.58% from Q1 of the prior year. - The average loan loss rate (12 month rolling) on managed receivables, which includes losses on assets held in securitization trusts at the end of the period, decreased to 5.73% from 5.90% in the prior quarter. This is an increase from 5.36% in Q1 of the prior year. - The quarterly periodic annualized loss rate was reduced in Q1 to 5.05%. This is a drop from 5.91% and 6.59% in the prior two quarters. This is the lowest quarterly loss rate in the previous five quarters. 

 Financial Highlights: --------------------- - Net Income in Q1 increased to $416K from net profit of $165K (YOY) - Revenue in Q1 increased to $3.70M from $2.88M (YOY) - Managed Loans increased 12.9% to $59.11M (YOY) - Cash releases increased 51% from securitization holdback accounts to $2.05M from $1.35M (YOY) - Loan Originations in Q1 increased 28.7% to $9.19M (YOY) - Loans Securitized increased 11.4% to $8.37M from $7.52M (YOY) - Securitization revenue increased 27.2% to $3.17M from $2.49M (YOY) - EPS was $0.02 up from $0.01 (YOY) - Book value per share has increased to $0.485 from $0.452 (YOY) - Operating Expense Ratio reduced (improved) by .25% to 4.77% (YOY) - Operating Expenses were $694K a 7.1% increase (YOY) - Funding Costs increased to 7.59% from 7.37% (YOY) - Average Cost of Borrowing decreased to 7.51% from 7.95% (YOY) - Delinquency Ratio decreased by 1.11% to 4.47% (YOY) - Average Loan Loss Rate (rolling 12 month) increased from 5.36% to 5.73% (YOY) - Revenue increased by 87% to $3.70M over the prior quarter - EPS was up to $0.02 from a loss of $0.01 over the prior quarter - Managed Loans increased 4.8% over the prior quarter - Net Income increased to $416K from a $237K net loss in the prior quarter - Loan Originations increased 34% over the prior quarter - Operating Expense Ratio increased to 4.77% from 4.69% in the prior quarter - Operating Expenses increased by 6.6% over the prior quarter - Delinquency Ratio decreased to 4.47% from 4.55% in the prior quarter - Average Loan Loss Rate decreased to 5.73% from 5.90% in the prior quarter Other Q1 Highlights ------------------- - RIFCO announced that it secured a new $10M securitization facility from an Alberta Regional Credit Union. - RIFCO ranked 71st on the annual PROFIT 100 ranking of Canada's Fastest-Growing Companies by PROFIT magazine with a five year cumulative growth of 864%. - RIFCO's co-founders Bill Graham (President and CEO) and Lance Kadatz (VP & CFO) were named as finalists for the Ernst & Young "Entrepreneur of the Year" 2010 award. 

 1. Achieve record loan originations of over $50 million Loan originations in the first quarter were $9.19M. 2. Achieve record managed assets of over $75 million Managed financed receivables in the first quarter grew to $59.11M. 3. Achieve record revenue of over $14 million Revenue in the first quarter reached $3.70M. 4. Achieve an annualized write offs rate below 5.5% Year-to-date annualized credit loss rate currently stands at 5.05%. 5. Achieve record net income of over $1.5 million Net income in the first quarter reached $416K. About RIFCO -----------