Corrected – Rifco Reports First Quarter Results
Red Deer, Alberta, August 20, 2020: Rifco Inc. (TSXV: RFC) (“Rifco” or the “Company”) the largest publicly-traded alternative auto finance company in Canada, is pleased to announce its consolidated first quarter results for the period ended June 30, 2020.
First Quarter Highlights
Subsequent Events Highlights
While the Company is cautiously optimistic about recent and near-term results, the economic reality in this COVID-19 environment is uncertain.
Rifco Quarterly Comparative Results
Statements of income | Current Quarter
3 Months Ended June 30, 2020 |
Prior Quarter
3 Months Ended March 31, 2020 |
Comparable Quarter
3 Months Ended June 30, 2019 |
|||
($,000’s, except per share, % of average loan receivables) | ||||||
Average loan receivables for the period |
216,988 | 224,580 | 224,553 | |||
Financial revenue | 9,047 | 16.68% | 9,744 | 17.35% | 9,885 | 17.60% |
Credit losses |
2,934 | 5.40% | 3,465 |
6.17% |
3,729 | 6.64% |
Credit Spread |
6,113 | 11.28% | 6,279 |
11.18% |
6,156 | 10.96% |
Financial expenses |
2,660 | 4.90% | 2,706 |
4.82% |
2,827 | 5.04% |
Adjusted Net Financial Income before Operating Expenses | 3,453 | 6.38% | 3,573 |
6.36% |
3,329 | 5.92% |
Adjusted Operating Expenses | 2,626 | 4.84% | 2,913 | 5.19% | 2,741 | 4.88% |
Adjusted Net Income Before Taxes | 827 | 1.54% | 660 | 1.17% | 588 | 1.04% |
Strategic review process | 482 | 0.89% | (537) | (0.96%) | (34) | (0.06%) |
Decrease (increase) in provision for impairment | 1,344 | 2.48% | (3,924) | (6.99%) | (192) | (0.36%) |
Net income (loss) before taxes | 2,653 | 4.91% | (3,801) | (6.78%) | 362 | 0.62% |
Income tax (expense) recovery | (843) | (1.55%) | 771 | 1.37% | 38 | 0.08% |
Net income (loss) | 1,810 | 3.36% | (3,030) | (5.41%) | 400 | 0.70% |
Weighted average number of outstanding shares at period end |
21,597 |
21,597 |
21,597 |
|||
Fully diluted basis | 21,597 | 21,597 | 21,597 | |||
Adjusted Net Income Before Taxes per Common Share basic
Diluted |
$0.038
$0.038 |
$0.031
$0.031 |
$0.027
$0.027 |
|||
Net income (loss) per common share basic
Diluted |
$0.084
$0.084 |
$(0.140)
$(0.140) |
$0.019
$0.019 |
Rifco, today, filed its quarterly financial statements and management discussion and analysis for the period ended June 30, 2020. The previously released financial statements and the related management’s discussion and analysis can be viewed at www.sedar.com or at www.rifco.net.
Non-IFRS Measures
Throughout this Press Release, management uses terms and ratios which do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other issuers. Specifically, management presents an Adjusted Net Income measure, along with related Adjusted sub-totals and ratios. These measures do not have any standardized meaning under IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. A full description of these measures can be found in the management discussion and analysis that accompany the financial statements for the period ended June 30, 2020.
About Rifco
Rifco Inc. is focused on being the best alternative auto finance company through its wholly owned subsidiary Rifco National Auto Finance Corporation. Our mission is to help deserving Canadians own automobiles. Rifco is Canada’s largest publicly traded alternative auto finance company.
Rifco seeks to create sustainable long-term competitive advantages through personalized partnerships with dealers, innovative products, the use of industry-leading data and analytics, and leading collections practices. Rifco’s corporate culture fosters employees that are highly engaged, innovative, and performance driven.
Rifco is committed to creating value for all stakeholders through profitable growth and predictable credit performance, while pursuing its long-term vision of $500M in annual loan Originations.
The common shares of Rifco Inc. are traded on the TSX Venture Exchange under the symbol “RFC”. There are 21.60 million shares (basic) outstanding and 23.17 million (fully diluted) shares.
CONTACT:
Rifco Inc.
Warren Van Orman
Vice President and Chief Financial Officer
Telephone: 1-403-314-1288 Ext 7007
Fax: 1-403-314-1132
Email: vanorman@rifco.net
Website: www.rifco.net
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.