Record Loan Originations For Month of August
EDMONTON, Sept. 11 /CNW/ - Carfinco Income Fund ("Carfinco" or the
"Fund") announces that a cash distribution of $0.027 per trust unit has been
declared for September 2007, with a payable date of September 28, 2007, to
Unitholders of record on September 20, 2007. The ex-distribution date is
September 18, 2007. This brings the total year-to-date cash distribution per
unit to $0.243.
Record loan originations during August grew the finance receivables to
$89.7 million at August 31, 2007; an increase of 7.4% during the first two
months of the third quarter 2007 from the finance receivables of $83.5 million
at June 30, 2007. The finance receivables have grown 24.2%, year-over-year,
from $72.2 million at August 31, 2006. During August, the Fund originated
$8.1 million in new loans bringing the total of new loans originated during
the first two months of the third quarter 2007 to $14.5 million.
The growth in the finance receivables portfolio necessitates an increase
in the allowance for credit losses, which is recorded by a non-cash entry
through the provision for credit losses. While this impressive growth in
finance receivables will have a positive impact on the Fund's interest income
in the coming months, the impact of the non-cash contributions to the
allowance for credit losses is anticipated to have a short-term negative
impact on accounting earnings.
About Carfinco Income Fund
A growth-oriented income trust, Carfinco focuses on providing consumer
car loans to borrowers unable to obtain financing through traditional lending
sources. A network of select independent and franchise dealerships offer
Carfinco's payment plan to their customers who must, along with the vehicle,
meet Carfinco's underwriting guidelines.
The units of the Fund trade on The Toronto Stock Exchange under the
Caution Regarding Forward-Looking Statements - This news release contains
certain forward-looking statements, including statements regarding the
business and anticipated financial performance of the Fund. 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.
For further information:
For further information: Mr. Tracy A. Graf, CEO & Trustee of Carfinco
Income Fund, Telephone: 1-888-486-4356, Facsimile: 1-888-486-7456, E-mail: