Auto finance company Rifco Inc. (TSX.V-RFC) has started its fiscal year on a profitable note, despite a tough market with tight credit.
The Red Deer-based company reported on Thursday that it generated net income of $165,000 for the three months ended June 30 — the first quarter of its fiscal year. That figure is down from the $607,000 earned in the first quarter of 2008, but an improvement over a net loss of $195,000 in the preceding quarter.
Revenues were $2.9 million, down from $3.8 million a year earlier.
Rifco’s loan originations in the first quarter were $7.1 million, down from $9.5 million. The company said in a news release that its cost of funds has been high, with the resulting lending rates contributing to a drop in loan applications and originations.
Rifco provides non-prime loans for auto purchases through its subsidiary, Repair Industry Finance Corp. Its network of new and used vehicle dealers operates in all provinces except Saskatchewan and Quebec.
The company will hold its annual shareholders meeting on Sept. 9 at 3 p.m. at the Red Deer Lodge.