Rifco Inc. (TSXV: RFC) is reporting a record quarter for the three months ended Sept. 30.
The Red Deer-based company, which provides financing for auto purchases, announced on Thursday that its revenue, loan originations, managed assets, cash reserve releases and book value per share all reached their highest-ever levels during the quarter. Its interest cost on securitized loans was also the lowest ever and its net income over the past two quarters were the highest in its history.
That income exceeded $1 million, more than 400 per cent higher than for the same period in 2009. For July to September, Rifco’s second quarter, net income was $600,000, as compared with $35,000 a year earlier.
That translated into earnings per share of three cents, up from zero.
Revenue in the quarter was $4.4 million, a 60 per cent improvement over the company’s $2.7 million in revenue for the same three-month period last year.
Loan originations increased 67 per cent to $10.6 million from $6.3 million, which resulted in managed finance receivables of $63.5 million, up nearly 20 per cent from the $53.2 million in 2009.
Loan securitization during the quarter was $9.5 million, up 47 per cent from $6.5 million. This boosted Rifco’s securitization revenue.
A release issued by the company said further growth is planned, with increased sales staff and improved infrastructure.
Rifco operates through a network of new and used vehicle dealers in all provinces except Saskatchewan and Quebec.
In trading on the TSX Venture Exchange on Thursday, shares in Rifco closed at 70 cents, up 12 cents from Wednesday’s close.