EDMONTON, Alberta -

Carfinco Income Fund recently announced that 2010 was a record-setting year for the company.

Carfinco achieved more than $20 million in net earnings for the year, and the return on the average unitholder’s equity for 2010 was 77.2 percent, beating Carfinco’s previous record of 55.3 percent set in 2005.

Net earnings of $20.7 million for 2010 represent an increase of 181.5 percent from the net earnings of $7.3 million for 2009.

The 2010 net earnings include a future income tax recovery of $2.8 million versus a future income tax recovery of $0.1 million recorded for 2009. Pre-tax net earnings of $17.8 million for 2010 represent an increase of 146.8 percent from the pre-tax earnings of $7.2 million for 2009.

Carfinco executives noted that the fourth quarter of 2010 continued to meet their objectives, being the seventh consecutive quarter of record net earnings, with net earnings of $8.1 million.

The $5.3 million pre-tax net earnings recorded for the fourth quarter is a 14.3 percent increase over the pre-tax net earnings of $4.6 million recorded for the third quarter of 2010 and a 112.5 percent increase over the pre-tax net earnings of $2.5 million for the fourth quarter of 2009.

For seven consecutive quarters, pre-tax net earnings have been $1.8 million, $2.2 million, $2.5 million, $3.6 million, $4.3 million, $4.6 million and $5.3 million, respectively.

The company also highlighted that it has seen record loan originations of $97 million for 2010, and record finance receivables at the end of 2010 of $139.5 million.

Earnings per unit for 2010 are 84 cents, up 180 percent from the 30 cents recorded for 2009. Revenues of $37.9 million for 2010 increased 16.1 percent from the revenues of $32.6 million for 2009.

Revenues of $10.3 million for the fourth quarter of 2010 represent an increase of 5.1 percent from the $9.8 million for the third quarter of 2010 and a 20.1 percent increase from the $8.6 million for the fourth quarter of 2009.

Loan originations for 2010 are $97 million, a 43.1 percent increase from $67.8 million in 2009. Loan originations of $24.5 million for the fourth quarter of 2010 mark a decrease from the $25.8 in loan originations for the third quarter of 2010 and an increase from the $17.8 million in the fourth quarter of 2009.

The decrease in loan originations from the third to the fourth quarter of 2010 can be attributed to lower loan originations during the holiday season in the month of December. This is typical in Carfinco’s experience.

Finance receivables at the end of 2010 were $139.5 million, an increase of 23.2 percent from $113.2 million for 2009, exceeding the company’s target of a 15 percent to 20 percent growth.

During the fourth quarter of 2010, finance receivables increased $6.2 million from the $133.3 million at the end of the third quarter of 2010.

Accounts 31 or more days delinquent at the end of the fourth quarter of 2010 were 2.9 percent versus 3 percent for the third quarter of 2010 and 4.6 percent for the fourth quarter of 2009.

Moving along, for the month of March, Carfinco announced a cash distribution of 2.5 cents per trust unit, an increase of 25 percent from February’s cash distribution of 2 cents.

"The decision to increase the monthly cash distribution is a reflection of the Fund’s financial performance," said Tracy Graf, Carfinco’s chief executive officer.

"The fourth quarter of 2010 was the seventh consecutive quarter of record net earnings and 2011 is off to a great start as management continues to execute its objective of growing the finance receivables by 20 percent per annum while maintaining delinquencies at acceptable levels,” Graf added.