EDMONTON, Sept. 10, 2014 /CNW/ - Carfinco Financial Group Inc. ("Carfinco" or the "Company") announces strong growth in both its Canadian and United States operations. During the month of August Carfinco's Canadian finance receivables increased 21.8% on an annualized basis. The US finance receivables increased 34.7% on an annualized basis. Carfinco's consolidated principal balance of finance receivables increased to $286.5 million.
The growth in the Canadian finance receivables during August represents the largest single month growth since October 2012 and the growth in the US finance receivables represents record monthly growth since acquiring Persian Acceptance Corp. in September 2013.
"On the heels of record loan originations for June and July, August loan originations continued to be strong contributing to the growth experienced in the finance receivables," stated Tracy Graf, CEO of Carfinco. "Also, as projected, the transfer of the US operations to a new IT platform was completed in August. Carfinco is now in a position to explore geographical expansion opportunities in the United States."
Carfinco has sufficient capital for future growth with over CDN $50 million available on its Canadian credit facility with a maturity date that was extended to November 1, 2016, and over US $7.0 million on the US credit facility.
Carfinco also announces that a cash dividend of 4.0 cents per share has been declared for September 2014. The payable date is September 30, 2014, the record date is September 19, 2014 and the ex-distribution date is September 17, 2014.
About Carfinco Financial Group Inc.
Carfinco, through its Canadian and United States subsidiaries (collectively, "Carfinco"), focuses on providing indirect consumer vehicle loans to borrowers unable to obtain financing through traditional lending sources. A network of select independent and franchise dealerships offer Carfinco's payment plans to their customers who must, along with the vehicle, meet Carfinco's underwriting guidelines. The shares of Carfinco trade on The Toronto Stock Exchange under the symbol "CFN".
Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the business and anticipated financial performance of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements.
SOURCE: Carfinco Financial Group Inc.
For further information: Mr. Tracy A. Graf, CEO & Director of Carfinco Financial Group Inc., Telephone: 1-888-486-4356, Facsimile: 1-888-486-7456, E-mail: [email protected], Web site: www.carfinco.com; The Howard Group Inc., Jeff Walker, Investor Relations, Telephone: 1-888-221-0915, E-mail: [email protected], Web site: www.howardgroupinc.com