Le Lézard
Classified in: Business
Subjects: ERN, SBS

IOU Financial Inc. Releases Financial Results for the Three and Six- Month Period Ended June 30, 2019


MONTRÉAL, Aug. 23, 2019 /PRNewswire/ - IOU FINANCIAL INC. ("IOU" or "the Company") (TSX-V: IOU), a leading online lender to small businesses (IOUFinancial.com), announced today its results for the three and six-month period ended June 30, 2019.

"IOU delivered strong loan origination and revenue growth in the second quarter of 2019 and continued to post positive earnings. We remain committed to our strategy of profitable growth which continues to deliver consistent and favorable results since its implementation," said Phil Marleau, CEO.

FINANCIAL HIGHLIGHTS

 

Adjusted and IFRS net earnings



Three-Month

Six-Month

For the period ended June 30

2019

$

2018

$

2019

$

2018

$

Interest revenue

3,918,840

3,302,281

7,497,809

6,672,251

Servicing & other income

1,589,627

1,100,424

3,118,002

2,042,371

Adjusted Gross Revenue

5,508,467

4,402,705

10,615,811

8,714,622






Interest expense

966,932

824,529

1,837,760

1,637,064

Provision for loan losses

1,836,573

971,471

3,345,383

1,996,438

Recoveries

(55,041)

(57,144)

(128,273)

(127,782)

Cost of Revenue

2,748,464

1,738,856

5,054,870

3,505,720






Adjusted Net Revenue

2,760,003

2,663,849

5,560,941

5,208,902

Adjusted operating expense

2,460,758

2,058,454

4,786,004

3,915,864

Income tax expense/(recovery)

-

(29,487)

-

(29,487)

Adjusted Net Earnings

299,245

634,882

774,937

1,322,525

Adjusted Net Earnings per Share

0.00

0.01

0.01

0.02






Adjusted Net Earnings

299,245

634,882

774,937

1,322,525

Non-cash gain on sales of loans

812,073

772,561

1,622,133

1,402,210

Non-cash amortization of servicing asset

(834,213)

(536,660)

(1,906,126)

(1,040,249)

Non-cash stock-based compensation

(57,849)

(17,994)

(185,818)

(34,499)

Non-recurring costs

-

-

-

-

Net Earnings per IFRS

219,256

852,789

305,126

1,649,987

Net Earnings per Share

0.00

0.01

0.00

0.02

 

OUTLOOK

IOU is committed to its strategy of profitable growth. IOU continues to closely monitor the performance of its loan portfolio, capture operational efficiencies and keep costs under control.

The Company intends to grow loan originations by:

These efforts are key to achieving the Company's long-term outlook for loan origination growth of 25% to 30% annually.

IOU's financial statements and management discussion & analysis for the quarter ended June 30, 2019 have been filed on SEDAR and are available at www.sedar.com.

CONFERENCE CALL

The Company will hold a conference call at 4:30 (EDT) on August 26, 2019, to discuss its financial results. The dial-in number to access the conference call from Canada and the United States is 1 (888) 231-8191 (toll-free), conference ID: 6698372

About IOU Financial Inc.

IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. In a unique approach to lending, IOU Financial's advanced, automated application and approval system accurately assesses applicants' financial realities, with an emphasis on day-to-day cash flow trends. IOU Financial allows these businesses to apply for six, nine, twelve, fifteen and eighteen-month term loans of up to US$500,000 to qualified U.S. applicants ($150,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management. Its speed and transparency make IOU Financial a trusted alternative to banks. To learn more visit: IOUFinancial.com.

Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Definitions

 

SOURCE IOU Financial Inc.


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News published on 23 august 2019 at 09:18 and distributed by: