Montreal, November 20, 2014 – IOU FINANCIAL INC. (“IOU” or “the Company”; ticker symbol IOU/TSX-V), a leading online lender to small businesses, announced today its results for the three and nine month period ended September 30, 2014.
Loan originations of US$66.2 million for the nine month period ended September 30, 2014 represent an increase of 92% over loan originations of US$34.4 million for the same period last year.
On September 30, 2014, IOU Financial’s commercial loans receivable amounted to approximately $12.5 million compared to $14.3 million as of September 30, 2013. Although loan originations increased since September 30, 2013, commercial loans receivable did not increase due a corresponding increase in the number of loans sold during that period. As of September 30, 2014, the principal balance of IOU Financial’s servicing portfolio (loans being serviced on behalf of a third-party) amounted to approximately $32.2 million (September 30, 2013: $8.6 million), representing an increase of 274%.
IOU Financial recorded net financial income for the quarter ended September 30, 2014 of $1.3 million versus $0.7 million for the quarter ended September 30, 2013, representing an 85% increase. The Company closed its third quarter of fiscal 2014 with a net loss attributable to common shareholders of $170,825, or $0.01 per share, compared to a net loss of $44,949 or $0.01 per share during the same period of 2013. Excluding a one-time accounting adjustment of $253,675, the net loss for the 2013 period would have been $298,624. IOU Financial recorded net financial income during the nine month period ended September 30, 2014 of $3.5 million versus $1.4 million for the nine month period ended September 30, 2013, representing a 150% increase. The Company recorded a net loss attributable to common shareholders for the nine month period ended September 30, 2014 of $1,010,138, or $0.02 per share, compared to a net loss of $1,022,517 or $0.02 per share during the same period of 2013.
For the remaining months of 2014, IOU Financial will maintain its core strategy of identifying, recruiting, and partnering with business loan brokers throughout the United States while continuing to focus its efforts on developing its direct marketing strategy.
IOU Financial’s financial statements and management discussion & analysis for the period ended September 30, 2014 have been filed on SEDAR and are available at www.sedar.com.
About IOU Financial Inc.
IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and ecommerce companies. 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. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Financial’s speed and transparency make it a trusted alternative to banks. To learn more visit: www.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.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact:
Chief Executive Officer
(514) 789-0694 ext. 225
Chief Financial Officer
(514) 789-0694 ext. 298