| -

EDMONTON, Alberta — Carfinco Income Fund, a non-prime auto lender, enjoyed an all-time high in quarterly net earnings for the fifth straight time. The second-quarter net earnings of $4.3 million were up from the previous record of $3.6 million set in the first quarter of this year and marked a 144-percent year-over-year increase.

Starting with the second quarter of 2009 — the first in the streak of record-breaking quarters — Carfinco's quarterly earnings have been $1.8 million, $2.2 million, $2.6 million, $3.6 million, respectively, and then $4.3 million in the most recent period.

Included the second quarter 2010 results is a $250,000 non-cash reduction in allowance for credit losses, so without this, Carfinco recorded net earnings of $4.1 million. That is 14.4-percent stronger than the first quarter.

"The fund continues to monitor its credit loss experience and with the increasing performance of its finance receivables it was deemed appropriate to decrease the allowance for credit losses during the quarter," officials noted.

Second-quarter revenues totaled $9.2 million, a 16.8-percent year-over-year uptick and a 6.7-percent sequential improvement.

Carfinco said that quarterly earnings per fund unit were 18 cents, which translates into a pace of 72 cents for the whole year. Looking at the first half of 2010, it was 33 cents, translating into 66 cents for the whole year.

"Increased loan originations, within the current underwriting guidelines, are key to this growth," the company stated.

During the second quarter, Carfinco's loan originations were at $25.1 million, up 50.6 year-over-year and 16.6 percent sequentially.

Thanks to this originations push, Carfinco saw a 6.5-percent rise in finance receivables from the previous quarter.

Receivables for the first six months of the year saw a 10.8-percent hike, which translates to 21.6-percent annual growth.

"This puts us at the higher end of management's stated goal of 15 percent to 20-percent growth in the finance receivables during 2010," officials noted.

Overall, they went to add: "In short, the fund is currently on track to reach or exceed its growth targets, maintain acceptable delinquency levels and reach or exceed its financial performance targets for 2010."