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Nov 14, 2019 1:22 AM ET

IOU Financial Inc. Releases Financial Results for the Three and Nine-Month Period Ended September 30, 2019 and Provides Corporate Update


iCrowd Newswire - Nov 14, 2019

MONTRÉAL,- IOU FINANCIAL INC. (“IOU” or “the Company”) (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announced today its results for the three and nine-month period ended September 30, 2019.

“We continue to execute on our strategy of profitable growth given strong loan origination and revenue performance in the third quarter of 2019. This represents the Company’s seventh consecutive quarter of positive earnings” said Phil Marleau, CEO.

FINANCIAL HIGHLIGHTS

Adjusted and IFRS net earnings

 
 

Three-Month

Nine-Month

For the period ended September 30

2019

$

2018

$

2019

$

2018

$

Interest revenue

5,165,303

3,254,520

12,663,112

9,926,771

Servicing & other income

1,634,082

1,378,742

4,752,084

3,421,113

Adjusted Gross Revenue

6,799,385

4,633,262

17,415,196

13,347,884

         

Interest expense

1,062,039

854,095

2,899,799

2,491,162

Provision for loan losses

2,367,101

1,327,017

5,712,484

3,323,455

Recoveries

(41,640)

(129,058)

(169,913)

(256,840)

Cost of Revenue

3,387,500

2,052,057

8,442,370

5,557,777

         

Adjusted Net Revenue

       

Adjusted operating expense

2,641,979

2,083,059

7,427,983

5,998,923

Income tax expense/(recovery)

29,487

Adjusted Net Earnings

769,906

468,659

1,544,843

1,791,184

Adjusted Net Earnings per Share

0.01

0.01

0.02

0.02

         

Adjusted Net Earnings

769,906

468,659

1,544,843

1,791,184

 Non-cash gain on sales of loans

734,264

1,088,475

2,356,397

2,490,685

 Non-cash amortization of servicing asset

(938,051)

(850,415)

(2,844,177)

(1,890,664)

 Non-cash stock-based compensation

(51,084)

(106,126)

(236,902)

(140,625)

 Non-recurring costs

485,579

485,579

Net Earnings per IFRS

1,000,614

600,593

1,305,740

2,250,580

Net Earnings per Share

0.01

0.01

0.01

0.03

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.  IOU is also committed to its strategy of building a resilient funding model. In line with this objective, IOU continues to maintain diversified sources of institutional capital. 

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 September 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 November 18, 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: 1559245

CORPORATE UPDATE

The Company also announced today changes to its board of directors (the “Board”). Serguei Kozmine tendered his resignation as a director of the Company and the Board has appointed Lucas Timberlake to fill this Board vacancy.

Lucas Timberlake has been a Partner with Fintech Ventures Fund, LLLP, a financial technology-focused investment firm, since 2015. Since assuming his current role, Mr. Timberlake has held several board director positions with technology-enabled lending companies in the small business and real estate lending sectors, and currently serves on the board of directors for GROUNDFLOOR Finance. Previously, Mr. Timberlake was part of the investment team with Antarctica Capital, an international private equity firm focusing on real assets and insurance opportunities. Mr. Timberlake began his career as an investment banking analyst with Bank of America Merrill Lynch. Mr. Timberlake holds a Bachelor of Arts in Economics and Political Science from Columbia College of Columbia University.

“We thank Mr. Kouzmine for his services to the Board over these past years, and welcome Mr. Timberlake to IOU’s Board”, said Philippe Marleau, CEO.

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 nine, 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

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IOU Financial Inc.








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