Vancouver, BC, July 10, 2012 - (ACN Newswire) - Alberta-based RIFCO INC (TSXV:RFC.V - News) has produced another period of solid earnings and reported record revenues and net income for both the fourth quarter and the year ending March 31, 2012.
InvestmentPitch.com has produced a "video news alert" which provides a brief summary of the company's results and objectives. If this link is not enabled, please visitwww.InvestmentPitch.com and enter "RIFCO" in the search box.
RIFCO, operating through its wholly owned subsidiary, Rifco National Auto Finance Corporation, provides automotive loans through its dealership network across Canada. The company has a 10 year history of setting specific objectives at the beginning of each year, and once again it has exceeded all its targets.
Highlights for the year ending March 31, 2012:
- Revenue increased 39% to $16.67 million from $12.04 million
- Net income increased 447% to $2.52 million from $460,000
- Earnings per share hit 12.8 cents up from 2.4 cents
- Return on Shareholders' equity increased to 61.97% from 20.19%
- Loan originations increased by 64% to $71.87 million from $43.9 million
There is one other number to look at, which has shown a decrease, and it is the company's credit losses. Amazingly, in this economic climate, credit losses, including costs and net of recoveries, are only $1.86 million a 36% drop from the previous year.
Company President & CEO, Bill Graham stated, "RIFCO's success can be largely attributed to our culture of dealer partnerships and exceptional service. Our strategy remains to de-commoditize our auto lending niche. We have invested in excellent employees that deliver common-sense solutions to our dealers. As a result, we have continued to achieve very strong growth rates."
In February the company celebrated its 10th anniversary which coincided with its Finance Receivables surpassing $100 million for the first time in its history. RIFCO granted its first loan in February 2002, and the cheque was hand delivered, and now electronically forwards $1 to $2 million per week to dealers across Canada.
The Company was recently ranked in the 139th position in Profit Magazine's list of "Canada's Fastest-Growing Companies" with a 5 year growth rate of 328%.
To continue this kindof growth, a company must have access to additional funding, and RIFCO reported that at the end of March, the company had a total of $150 million in funding capacity, through four Securitization Facilities, an increase of one facility above the previous year's total.
For the upcoming year, RIFCO has once again laid out ambitious targets, and if the company's track record continues, they expect to achieve:
- More than $95 million in loan originations
- More than $145 million in finance receivables
- More than $23 million in revenue
- Record earnings of $0.23 per share, and
- An average 12 month rolling credit loss rate below 3.25%
The shares currently trade at $1.95, and with approximately 20 million shares outstanding, the company is capitalized at $39 million.
InvestmentPitch.com, a multimedia company that provides a combined solution for creating and hosting financial video content, and distributing it across multiple platforms to investors and financial professionals, specializes in producing short three minute videos based on news releases and research reports.
Barry Morgan, CFO
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: InvestmentPitch via Thomson Reuters ONE
Copyright(c) Thomson Reuters 2012. All rights reserved.
Copyright 2012 ACN Newswire. All rights reserved.