All Press Releases will appear under the NEWS page of About IOU Financial

IOU Financial Inc. Releases Financial Results for the Three-Month Period Ended March 31, 2018

  • Net earnings on an IFRS basis and adjusted net earnings amounted to $0.8 million in Q1 2018, the second consecutive quarter with positive earnings for the Company.
  • Loan originations increased 11.2% to $24.5 million compared to the same period in 2017.
  • Provision for loan losses decreased 50.6% to $0.9 million in Q1 2018 driven by measures taken to reduce defaults.
  • Opex decreased 23.1% to $1.9 million for the first quarter of 2018.

MONTREAL, May 24, 2018 /CNW Telbec/ – 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-month period ended March 31, 2018.

“Following the positive results in the fourth quarter of 2017, IOU has delivered even stronger results in the first quarter of 2018. This is a testament to the measures taken to bring down loan defaults and control costs. IOU expects to continue to grow loan originations and generate profits over the coming quarters,” said Phil Marleau, CEO.

FINANCIAL HIGHLIGHTS

  • Loan originations for the first quarter ended March 31, 2018 increased 11.2% to US$24.5 million versus originations of US$22.1 million for the same period last year.
  • As of March 31, 2018, IOU’s total loans under management amounted to approximately $64.2 million as compared to $66.8 million in 2017. The principal balance of the loan portfolio amounted to $32.2 million compared to $43.8 million in 2017. The principal balance of IOU’s servicing portfolio (loans being serviced on behalf of third-parties) amounted to approximately $32.0 million compared to $23.0 million in 2017.
  • IOU recorded gross revenue during the first quarter of $4.4 million versus $4.3 million for the same period last year.
  • Interest expense during the three-month period ended March 31, 2018 decreased by 11.6% to $812,535, compared to $918,658 the previous year. The decrease is attributable to a decrease in borrowings under the credit facility.
  • Provision for loan losses (net of recoveries) decreased by 50.6% to $954,329 for the three-month period ended March 31, 2018. This decrease is primarily attributable to lower defaults by borrowers as well as by the smaller size of the loan portfolio. The improvement in the provision for loan losses (net of recoveries) is a result of changes made in 2017 in the Company’s lending policies and in the loan servicing and collection process, which includes an aggressive litigation strategy against businesses who default on their loan obligations.
  • Operating expenses decreased 23.1% to $1.87 million for the three-month period ended March 31, 2018 as compared to $2.44 million for the previous year. The decrease is attributable to the Company’s plan to reduce operating expenses initially introduced in the third quarter of 2016. The plan resulted in reduced headcount thereby lowering employee compensation costs, a decrease in marketing costs and reduced professional fee expenses due to vendor contract re-negotiations.
  • IOU closed its first quarter 2018 with positive net earnings of $797,198, or $0.01 per share, compared to a net loss of $1.0 million or $(0.01) per share during the same period of 2017.
  • IOU closed its first quarter 2018 with positive adjusted earnings of $804,088, which excludes certain non-cash and non-recurring items, compared to an adjusted net loss of $0.7 million in the first quarter of 2017. The $1.5 millionimprovement in adjusted net earnings is principally due to the $1 million decrease in the provision for loan losses as well as to the $0.6 million in reduced operating expenses in the quarter compared to the same period last year and to the $0.1 million increase in gross revenue.

OUTLOOK

IOU remains well placed at the forefront of the fintech revolution that is democratizing access to capital for small businesses. IOU expects to continue to grow loan originations and generate profits throughout 2018.

  • The Company will continue to enhance its proprietary, next-generation technology and algorithms that evaluate and price credit risk.
  • IOU will also continue 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:
    • Continuing to identify, recruit and partner with business loan brokers;
    • Forming new strategic partnerships with entities such as banks and small business suppliers and leveraging their relationships with small businesses to add new customers;
    • Expanding its product offering to allow it to serve small businesses whose needs are not met by its current products;
    • Investing in direct marketing and sales; and
    • Continuing its expansion into Canada.

IOU’s financial statements and management discussion & analysis for the quarter ended March 31, 2018 have been filed on SEDAR and are available at www.sedar.com.

CONFERENCE CALL

The Company will hold a conference call at 4:30 p.m. (EDT) on Tuesday, May 29, 2018, 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: 8878074.

CORPORATE UPDATE

IOU has formalized its employment arrangements with each of its CEO, CFO and COO (each, an “Executive”) by entering into written agreements that formalize their current employment terms. Such employment agreements contain restrictive covenants such as non-competition and non-solicitation clauses. The employment agreements also set forth additional provisions with respect to termination, constructive dismissal, severance and change of control of the Executives, including the payment of between 6 and 18 months of salary, bonus and benefits in the event of a termination within 12 months after a change in control.

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. Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, and restaurants. 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$300,000 to qualified U.S. applicants ($100,000 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.

SOURCE IOU Financial Inc.

For further information: Philippe Marleau, Chief Executive Officer, (514) 789-0694 ext. 225; David Kennedy, Chief Financial Officer, (514) 789-0694 ext. 278

IOU Financial Inc. Releases Financial Results for the Year Ended December 31, 2017

  • Reached profitability during the year with positive adjusted net earnings of $0.1 million in Q4.
  • Surpassed the half-billion loan origination mark with loan originations of $91.3 million (US) for the year.
  • Increased interest revenue of 8.1% to $14.4 million for the year ended December 31, 2017 vs 2016.
  • Reduced operating costs (excluding non-recurring costs) by 20.3% to $9.0 million for the year ended 2017.
  • Raised $3.5 million via a private placement.

MONTREALApril 26, 2018 /CNW Telbec/ – IOU FINANCIAL INC. (“IOU” or “the Company”) (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announced today its results for the year ended December 31, 2017.

“Our action plan in 2017 which consisted of rightsizing the organization, managing defaults and improved pricing has resulted in positive adjusted earnings in the fourth quarter and represents a significant milestone for the organization. We expect to grow adjusted earnings throughout 2018,” said Phil Marleau, CEO.

FINANCIAL HIGHLIGHTS

  • Loan originations for the year ended December 31, 2017 were US$91.3 million versus originations of US$107.6 millionfor the year ended December 31, 2016. Loan originations decreased due to changes made to the Company’s lending policies in response to increased delinquency levels. However, loan origination growth resumed in Q4 and increased 17.5% to $23.5 million compared to the same period last year.
  • As of December 31, 2017, IOU’s total loans under management amounted to approximately $61.7 million as compared to $70.3 million at the end of year 2016. On December 31, 2017, the principal balance of the loan portfolio amounted to $33.0 million compared to $42.1 million in 2016. The principal balance of IOU’s servicing portfolio (loans being serviced on behalf of third-parties) amounted to approximately $28.6 million compared to $28.2 million in 2016.
  • IOU recorded gross revenue during the for the year ended December 31, 2017 of $17.4 million versus $17.4 million for the same period last year. Interest revenue increased 8.1% to 14.4 million for the year ended 2017 compared to the same period last year. The increase is attributable to an increase in the average commercial loan receivable balance and the Company’s pricing structure.
  • Interest expense for the year ended December 31, 2017 increased to $3.7 million, up from $3.2 million over the previous year. The increase is attributable to an increase in borrowings under the credit facility partially offset by a reduction in the cost of funds borrowed versus the previous year.
  • Allowance for loan losses (net of recoveries) increased to $8.2 million for the year ended December 31, 2017, up from $7.3 million for the previous year. The increase is primarily attributable to an increase in defaults by borrowers and, as a result, IOU Financial made changes to its lending policies. In addition, the Company implemented certain process changes to improve its servicing and collections which includes an aggressive litigation process against businesses who intentionally default on their loan obligations. As a result of these changes, the allowance for loan losses decreased 53% to $1.5 million in the fourth quarter 2017 compared to the same period in 2016.
  • Excluding non-recurring costs, operating expenses decreased 20.3% to $9.0 million for the year ended December 31, 2017 as compared to $11.3 million for the previous year. During the quarter ended September 30, 2016, the Company adopted a plan to reduce operating expenses. The Company achieved its target of quarterly operating costs of $2.0 million to $2.2 million on a normalized basis in the third quarter. Operating costs, excluding non-recurring costs, were further reduced to $1.8 million in the fourth quarter of 2017, representing a decrease of 28.2% compared to the same period in 2016. The Company anticipates average quarterly operating expenses of approximately $1.6 million on a normalized basis in 2018.
  • IOU closed on the year ended December 31, 2017 with a net loss of $4.5 million, or $0.05 per share, compared to a net loss of $4.8 million, or $0.08 per share, for the year ended December 31, 2016.
  • IOU closed on the year ended December 31, 2017 with an adjusted net loss of $3.1 million, which excludes certain non-cash and non-recurring items, compared to an adjusted net loss of $3.2 million during the same period in 2016. In the fourth quarter 2017, IOU attained $0.1 million of adjusted earnings compared to an adjusted net loss of $1.4 million during the same period in 2016.

OUTLOOK

IOU remains well placed at the forefront of the fintech revolution that is democratizing access to capital for small businesses. IOU expects to grow adjusted earnings throughout 2018.

  • The Company will continue to enhance its proprietary, next-generation technology and algorithms that evaluate and price credit risk. IOU will also continue to closely monitor the performance of its loan portfolio and capture operational efficiencies. The Company anticipates average quarterly operating expenses of approximately $1.6 millionon a normalized basis in 2018.
  • The Company intends to grow loan originations by:
    • Continuing to identify, recruit and partner with business loan brokers;
    • Forming new strategic partnerships with entities such as banks and small business suppliers and leveraging their relationships with small businesses to add new customers;
    • Expanding its product offering to allow it to serve small businesses whose needs are not met by its current products;
    • Investing in direct marketing and sales; and
    • Continuing its expansion into Canada.

IOU’s financial statements and management discussion & analysis for the year ended December 31, 2017 have been filed on SEDAR and are available at www.sedar.com.

CONFERENCE CALL

The Company will hold a conference call at 4:30 p.m. (EDT) on May 1, 2018, 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: 6167767.

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. Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, and restaurants. 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$300,000 to qualified U.S. applicants ($100,000 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.

SOURCE IOU Financial Inc.

For further information: Philippe Marleau, Chief Executive Officer, (514) 789-0694 ext. 225; David Kennedy, Chief Financial Officer, (514) 789-0694 ext. 278

IOU Financial Extends Credit Facility with Midcap Financial

MONTRÉAL, Feb. 27, 2018 /CNW Telbec/ – IOU FINANCIAL INC. (“IOU” or “the Company”) (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announced today that it has modified and extended its secured credit facility (the “Credit Facility”) with MidCap Financial, (“Midcap”) until December 31, 2020. The amount of the Credit Facility is USD $20 million, with a term portion equal to USD $15 million and a revolver amount of USD $5 million.

IOU and Midcap have further agreed to allocate USD $1 million from the Credit Facility amount of USD $20 million, to support Canadian loan originations. This will be formalized in a separate amendment to this facility.

“Since 2016, Midcap has been a fantastic funding partner for IOU, allowing IOU to lower its funding cost of capital and supporting the Company’s continued growth in the U.S. and in Canada. We are very pleased to have concluded this extension and modification to the Credit Facility with MidCap,” said Phil Marleau, CEO of IOU Financial Inc.

About IOU Financial

IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, and restaurants. In a unique approach to lending, the IOU 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 US$300,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favorable to cash-flow management. Its speed and transparency make IOU a trusted alternative to banks. To learn more visit: IOUFinancial.com.

About Midcap Financial

MidCap Financial is a middle market-focused, specialty finance firm that provides senior debt solutions to businesses across all industries throughout North America.

MidCap Financial refers to MidCap FinCo Designated Activity Company, a private limited company domiciled inIreland, and its subsidiaries. MidCap Financial is managed by Apollo Capital Management, L.P., a subsidiary of Apollo Global Management, pursuant to an investment management agreement between Apollo Capital Management, L.P. and MidCap FinCo Designated Activity Company. References to MidCap Financial prior to January 2015 are to its predecessor, MidCap Financial, LLC.

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.

Related Links:

http://www.ioufinancial.com

SOURCE IOU Financial Inc.

For further information: regarding this press release or IOU Financial Inc., please contact: Phil Marleau, Chief Executive Officer, +1 (514) 789-0694, ext. 225; David Kennedy, Chief Financial Officer, +1 (514) 789-0694, ext. 278; Benjamin Yi, Corporate Development & Capital Markets, +1 (647) 295-0654

IOUFinancial.com

MONTRÉAL, Jan. 31, 2018 /CNW Telbec/ – IOU FINANCIAL INC. (“IOU” or “the Company”; TSX-V:IOU), a leading online lender to small businesses (IOUFinancial.com), is pleased to announce a strategic partnership with Marietta, GA-based c-store solutions provider goEBT (goEBT.com).  Through this strategic partnership, goEBT’s network of 25,000 convenience store owners nationwide will be able to access IOU’s fast, convenient, non-collateral funding solutions.

“IOU Financial will provide goEBT’s network of business owners with the funding they need to finance inventory, update stores, or invest in high-ROI equipment upgrades when banks are not an alternative,” said Robert Gloer, President and COO of IOU.

“Recognizing IOU’s strong track record and strength in retail lending, goEBT approached IOU to offer goEBT’s client base convenient, affordable funding to fuel their clients’ growth,” said Christophe Choquart, IOU’s VP of Business Development & Strategic Partnerships.

Strategic partnerships are a key component in IOU’s organic growth strategy, as they allow for a unique, cost-efficient, one-stop lending experience for clients of both IOU and focused service providers such as goEBT.  Further details about partnering with IOU can be found at http://www.ioufinancial.com/partner.

About IOU Financial

IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly.  Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, and restaurants.  In a unique approach to lending, the IOU Financial 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 US$300,000 to qualified U.S. applicants ($100,000 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.

About goEBT

GoEBT provides flat-rate EBT processing to over 25,000 convenience and small grocery store owners.  By establishing partnerships with other businesses, goEBT is helping store owners make their businesses more convenient and profitable.  Now, solution offerings like bill pay and access to preferred products are helping even single store owners make their stores an asset to the communities that need them most. To learn more visit: GoEBT.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 TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

 

For more information regarding this press release or IOU Financial, please contact:

Phil Marleau, Chief Executive Officer, +1 (514) 789-0694, ext. 225, or
Benjamin Yi, Corporate Development & Capital Markets, +1 (647) 295-0654

For more information regarding strategic partnerships with IOU Financial, please contact:

Christophe Choquart, Vice President, Strategic Partnerships, +1 (678) 264-8584, or
Robert Gloer, President & Chief Operating Officer, +1 (678) 809-6251

IOUFinancial.com

MONTREALJan. 24, 2018 /CNW/ – IOU FINANCIAL INC. (“IOU” or “the Company”; TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), today announced its outlook for fiscal 2018.  All dollar amounts are in Canadian dollars unless specifically referred to otherwise.

Outlook for fiscal 2018

IOU remains well placed at the forefront of the fintech revolution that is democratizing access to capital for small businesses.  IOU reached break-even in the course of Q4 2017 based on adjusted earnings and expects to grow adjusted earnings throughout 2018.

The Company will continue to enhance its proprietary, next-generation technology and algorithms that evaluate and price credit risk. IOU will also continue to closely monitor the performance of its loan portfolio and capture operational efficiencies.  The Company anticipates average quarterly operating expenses of approximately $1.6 million on a normalized basis in 2018.

The Company intends to grow loan originations by:

  • Continuing to identify, recruit and partner with business loan brokers;
  • Forming new strategic partnerships with entities such as banks and small business suppliers and leveraging their relationships with small businesses to add new customers;
  • Expanding its product offering to allow it to serve small businesses whose needs are not met by its current products;
  • Investing in direct marketing and sales; and
  • Continuing its expansion into Canada.

“In 2017, our efforts to right-size the Company, increase pricing and manage defaults has set the table to deliver profitable growth for the future,” said Phil Marleau, CEO.

Highlights from fiscal 2017:

  • US$91.3 million of small business loans were originated by IOU in 2017.
  • IOU surpassed a significant milestone, announcing in December 2017 that it had facilitated more than US$500 million in financing to thousands of merchants and small businesses across the United States and Canada.
  • By the third quarter of 2017, IOU successfully executed on its plan to reduce operating expenses to $2.0 million to $2.2 million per quarter, excluding non-recurring costs.

About IOU Financial

IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly.  Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, and restaurants.  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 US$300,000 to qualified U.S. applicants ($100,000 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.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE IOU Financial Inc.

For more information regarding this press release or IOU Financial, please contact:

Philippe Marleau, Chief Executive Officer, +1 (514) 789-0694, ext. 225
David Kennedy, Chief Financial Officer, +1 (514) 789-0694, ext. 278
Benjamin Yi, Corporate Development & Capital Markets, +1 (647) 295-0654

IOUFinancial.com

MONTRÉAL, Dec. 6, 2017 /CNW Telbec/ – IOU Financial Inc. (“IOU” or “the Company”) (TSXV: IOU), a leading online lender to small businesses (IOUFinancial.com), announces today that it has facilitated more than US$500 million in financing to thousands of merchants and small businesses across the United States and Canada since launching its lending platform.

 “$500 million in originations is a significant milestone that we are incredibly proud of, and a testament to our position in the industry.  As we continue to pursue opportunities to grow and expand our market share, we look forward to continuing to serve the working capital needs of hard-working North American merchants and small business owners,” said Phil Marleau, CEO of IOU Financial.

About IOU Financial

IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly.  Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, and restaurants.  In a unique approach to lending, the IOU Financial 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 US$300,000 to qualified U.S. applicants ($100,000 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.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE IOU Financial Inc.

For further information: Philippe Marleau, Chief Executive Officer, +1 (514) 789-0694, ext. 225; Benjamin Yi, Corporate Development & Capital Markets, +1 (647) 295-0654

Related Links

https://ioufinancial.com/en-ca/

www.sedar.com

  • Gross revenue increased 5.7% to $13.2 million for the nine-month period ended September 30, 2017 compared to the same period in 2016.
  • Opex (excluding non-recurring costs) decreased 19.3% to $2.2 million for the quarter ended September 30, 2017compared to the same period last year. The Company achieved its target of quarterly operating costs of $2.0 million to $2.2 million on a normalized basis.
  • The Company anticipates average quarterly operating expenses of approximately $1.6 million on a normalized basis in 2018.
  • Provision for loans losses increased 12.9% to $2.5 million in the quarter. IOU is committed to address loan losses through higher loan quality originations. In addition, the Company has taken back service and collections previously outsourced to a third-party and has commissioned a consultant to review its credit policies.

MONTREAL, Nov. 29, 2017 /CNW Telbec/ – IOU FINANCIAL INC. (“IOU” or “the Company”; TSX-V: IOU), a leading online lender to small businesses, announced today its results for the three and nine month period ended September 30, 2017.

“IOU has met its goal of reduced operating costs in the quarter and will continue to seek additional operational efficiencies and seek favourable risk adjusted returns through higher loan quality originations in order to meet its objective of achieving profitability,” said Phil Marleau, CEO.

FINANCIAL HIGHLIGHTS

  • Loan originations for the second quarter ended September 30, 2017 were US$19.6 million versus originations of US$30.2 million for the same period last year. Loan originations decreased by 35.3% due to changes made to the Company’s lending policies in response to increased delinquency levels. Year-to-date, loan originations amounted to US$67.8 million, representing a decrease of 22.5% over the origination of US$87.5 million for the same period last year.
  • As of September 30, 2017, IOU’s total loans under management amounted to approximately $60.9 million as compared to $78.6 million in 2016. On September 30, 2017, the principal balance of the loan portfolio amounted to $35.0 million compared to $40.9 million in 2016. The principal balance of IOU’s servicing portfolio (loans being serviced on behalf of third-parties) amounted to approximately $25.8 million compared to $37.7 million in 2016.
  • IOU recorded gross revenue during the second quarter of $4.5 million versus $5.7 million for the same period last year, representing a 19.8% decrease. The decrease in gross revenues was primarily driven by a decrease in interest income to $3,602,906 in 2017 from $4,498,671 in 2016, as a result of a decrease in the size of the loan portfolio. For the nine-month period ended September 30, 2017, gross revenues totaled $13,198,510 ($12,482,781 in 2016), representing an increase of 5.7%.
  • Interest expense during the three-month period ended September 30, 2017 increased by 8.5% to $945,720, up from $871,289 over the previous year. The increase is attributable to an increase in borrowings under the credit facility partially offset by a reduction in the cost of funds borrowed versus the previous year. For the nine-month period ended September 30, 2017, interest expense amounted to $2.8 million compared to $2.2 million in 2016.
  • Provision for loan losses (net of recoveries) increased to $2.5 million for the three-month period ended September 30, 2017, up from $2.2 million for the previous year. The increase is primarily attributable to an increase in defaults by borrowers and partially due to an increase in the average size of the loan portfolio. To improve loss performance, IOU Financial has made changes to its lending policies. In addition, the Company has implemented certain process changes to improve its servicing and collections which includes an aggressive litigation process against businesses who intentionally default on their loan obligations. For the nine-month period ended September 30, 2017, IOU recorded a provision for loan losses of $6.7 million compared to $4.2 million in 2016.
  • Excluding non-recurring costs, operating expenses decreased 19.3% to $2.2 million for the three-month period ended September 30, 2017 as compared to $2.7 million for the previous year. During the quarter ended September 30, 2016, the Company adopted a plan to reduce operating expenses. The Company achieved its target of quarterly operating costs of $2.0 million to $2.2 million on a normalized basis in the third quarter. For the nine-month period ended September 30, 2017, operating expenses amounted to $7.2 million, excluding non-recurring costs, compared to $8.8 million in 2016, representing a decrease of 18.0%. The Company anticipates average quarterly operating expenses of approximately $1.6 million on a normalized basis in 2018.
  • IOU closed its third quarter 2017 with a net loss of $1.4 million, or $0.02 per share, compared to a net loss of $0.4 million or $0.01 per share during the same period of 2016. For the nine-month period ended September 30, 2017, the net loss amounted to $4.5 million versus $3.1 million in 2016.
  • IOU closed its third quarter 2017 with an adjusted net loss of $1.2 million, which excludes certain non-cash and non-recurring items, compared to an adjusted net loss of $0.1 million in the third quarter of 2016. Year-to-date, the adjusted net loss was $3.2 million compared to an adjusted net loss of $1.7 million for the same period in 2016.

OUTLOOK
IOU continues to focus on finding operational efficiencies, the performance of its loan portfolio and achieving profitability.

The Company 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 building long-term partnerships with its existing broker base by investing time in offering great service through dedicated account executives.

IOU also intends to grow loan originations by forming new strategic partnerships with entities such as banks and small business suppliers and leveraging their relationships with small businesses to add new customers; expanding its product offering to allow it to serve small businesses whose needs are not met by its current products; investing in direct marketing and sales; and continuing its expansion into Canada.

IOU’s financial statements and management discussion & analysis for the quarter ended September 30, 2017 have been filed on SEDAR and are available at www.sedar.com.

CONFERENCE CALL
The Company will hold a conference call at 4:30 p.m. (EDT) on Thursday, November 30, 2017, to discuss its financial results. The dial-in number to access the conference call from Canada and the United States is 1‑800‑259‑2693 (toll-free), conference ID: 3239813.

CORPORATE UPDATE
IOU wishes to confirm it entered into a consulting agreement with Rose of Sharon Capital Corporation, a newly-incorporated entity held by Benjamin Yi, to assist with a variety of corporate development and capital markets-related projects, including the provision of certain investor relations services. The overall agreement is for $7,500 per month until June 30, 2018. Mr. Yi did not have any material direct or indirect interest in the Company prior to entering into the agreement.

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 e-commerce 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 $300,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favourable 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 TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE IOU Financial Inc.

For further information: Philippe Marleau, Chief Executive Officer, (514) 789-0694 ext. 225; David Kennedy, Chief Financial Officer, (514) 789-0694 ext. 278

Related Links

https://ioufinancial.com/en-ca/

IOUFinancial.com

MONTREALSept. 14, 2017 /CNW/ – IOU FINANCIAL INC. (“IOU” or “the Company”; TSX-V:IOU), a leading online lender to small businesses (IOUFinancial.com), announces today that Canadian Business and PROFIT ranks IOU Financial as the fourth-fastest growing company on the 29th annual PROFIT 500, the definitive ranking of Canada’s Fastest-Growing Companies. Published in the October issue of Maclean’s magazine and at CanadianBusiness.com, the PROFIT500 ranks Canadian businesses by their five-year revenue growth.

IOU Financial makes the 2017 PROFIT 500 list as the fourth fastest growing company with five-year revenue growth of 8,600%.

“It is never easy to earn a spot on the PROFIT 500, but this year’s applicant pool was the most competitive yet,” says Deborah Aarts, PROFIT 500 program manager. “This year’s winners demonstrate the resilience, innovation and sheer management smarts it takes to build a thriving business today. Canada — and the world — needs more entrepreneurial success stories like these.”

“We are honoured to be as the fourth fastest growing company on the PROFIT 500 list. This achievement reflects the dedication and strength of our team,” said CEO Philippe Marleau. “We look forward to continued growth and our ongoing efforts to be the preferred and trusted lender to merchants in the US and Canada.”

About the PROFIT 500

For 29 years, the PROFIT 500 has been Canada’s most respectable and influential ranking of entrepreneurial achievement. Developed by PROFIT and now published in Maclean’s magazine and at CanadianBusiness.com, the PROFIT 500 ranks Canadian companies on five-year revenue growth. For more information on the ranking, visit PROFIT500.com or CanadianBusiness.com.

About Canadian Business

Founded in 1928, Canadian Business is the longest-serving and most-trusted business publication in the country. It is the country’s premier media brand for executives and senior business leaders. It fuels the success of Canada’s business elite with a focus on the things that matter most: leadership, innovation, business strategy and management tactics. Learn more at CanadianBusiness.com.

About IOU Financial

IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, and restaurants. In a unique approach to lending, the IOU Financial 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 US$300,000 to qualified U.S. applicants ($100,000 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.

The TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE IOU Financial Inc. 

For further information:

For more information regarding this press release or IOU Financial, please contact:

Philippe Marleau, Chief Executive Officer, +1 (514) 789-0694, ext. 225. or

Benjamin Yi, Corporate Development & Investor Relations, +1 (647) 295-0654

IOU Financial Partners with Rubicon Global to Fund Recycling Ecosystem

MONTREALSept. 6, 2017 /CNW/ – IOU FINANCIAL INC. (TSX-V:IOU), a leading online lender to small businesses (IOUFinancial.com), is pleased to announce a strategic partnership with Rubicon Global.  IOU joined the RUBICONPro buying program to provide Rubicon’s network of independent haulers with fast, convenient and reliable, non-collateral funding solutions.

Where bank loans are not an alternative, an IOU term loan will help Rubicon’s haulers invest in equipment to take on more recycling volume and proudly join Rubicon’s expansion projects for a more sustainable world.  IOU loans will also be provided to Rubicon’s base of thousands of small businesses embracing recycling to contribute to a healthy planet.  IOU will also promote Rubicon’s innovative model to its thousands of existing and past borrowers.

Rubicon provides affordable waste and recycling solutions for businesses seeking a smarter, sustainable alternative, with the aim to eliminate landfills over time.  As part of the partnership, IOU will not only work with Rubicon’s fleet of independent haulers, but also with Rubicon’s small business clients to provide custom working capital solutions.

“IOU is excited to offer funding to Rubicon’s haulers and small business clients to promote smart recycling options to businesses nationwide,” said Christophe Choquart, IOU’s VP of Business Development and Strategic Partnerships.

“This partnership emphasizes IOU Financial and Rubicon’s shared values of promoting small business growth through a very smart recycling concept and innovative financing,” said Robert Gloer, IOU’s President and Chief Operating Officer.

As a key component of IOU’s organic growth strategy, strategic partnerships allow IOU’s clients to connect with focused service providers such as Rubicon Global, thereby allowing for a unique, cost-efficient, one-stop-shop lending experience.  Further details about partnering with IOU can be found at www.ioufinancial.com/partner.

About IOU Financial

IOU Financial Inc. provides small businesses throughout the U.S. and Canada access to the capital they need to seize growth opportunities quickly.  Typical customers include medical and dental practices, grocery and retail stores, salons, gas stations, auto repair shops, and restaurants.  In a unique approach to lending, the IOU Financial 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 US$300,000 to qualified U.S. applicants ($100,000 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.

About Rubicon Global

Rubicon Global is the worldwide leader in sustainable, cloud-based waste and recycling solutions.  Using its proprietary technology-enabled platform, the company provides comprehensive waste stream solutions that enable companies to reduce operating expenses and implement recycling programs.  Rubicon’s goal is to create a more sustainable solution for businesses and the planet.

RUBICONPro features fuel, equipment, financial, insurance and compliance benefits that previously were only available to the industry’s largest regional and national haulers and truck fleets.  Companies interested in RUBICONPro can request more information online at www.rubiconglobal.com/pro.  Rubicon’s technology-driven waste and recycling model empowers its network of independent haulers to compete for customers of all sizes, operate more efficiently, and grow their businesses.

To learn more visit: www.rubiconglobal.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 TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE IOU Financial Inc. 

For further information: For more information regarding this press release or IOU Financial, please contact: Robert Gloer, President & Chief Operating Officer, +1 (678) 809-6251; Benjamin Yi, Corporate Development & Investor Relations, +1 (647) 295-0654; For more information regarding strategic partnerships with IOU Financial, please contact: Christophe Choquart, Vice President, Strategic Partnerships, +1 (678) 264-8584

www.sedar.com

  • Principal balance of loan portfolio increased 20.2% compared to the same period last year to $42.9 million consistent with the Company’s strategy to retain more loans on its balance sheet.
  • Gross revenue increased 27.0% to $8.7 million for the first half of 2017.
  • Opex (excluding non-recurring costs) decreased 18.1% or $0.6 million for the quarter ended June 30, 2017 compared to the same period last year. The Company is on track to achieve its target of quarterly operating costs of $2.0 million to $2.2 million on a normalized basis in the third quarter.
  • During the quarter, the Company focussed its efforts on an aggressive litigation strategy against businesses who intentionally default on their loan obligations.

MONTREAL, Aug. 29, 2017 /CNW Telbec/ – IOU FINANCIAL INC. (“IOU” or “the Company”) (TSXV: IOU), a leading online lender to small businesses, announced today its results for the three and six month period ended June 30, 2017.

FINANCIAL HIGHLIGHTS

  • Loan originations for the second quarter ended June 30, 2017 were US$26.2 million versus originations of US$31.8 million for the same period last year. Loan originations decreased by 17.8% due to changes made to the Company’s lending policies in response to increased delinquency levels. We anticipate that these changes will have a positive impact on our loan portfolio over the course of 2017. For the first half of 2017, loan originations amounted to $48.2 million, representing a decrease of 15.7% over the origination of $57.1 million for the same period last year.
  • As of June 30, 2017, IOU’s total loans under management amounted to approximately $65.7 million as compared to $79.6 million in 2016. On June 30, 2017, the principal balance of the loan portfolio amounted to $41.6 million compared to $35.5 million in 2016. The increase is consistent with the Company’s strategy to retain more loans on its balance sheet. The principal balance of IOU’s servicing portfolio (loans being serviced on behalf of third-parties) amounted to approximately $24.1 million compared to $44.1 million in 2016.
  • IOU recorded gross revenue during the second quarter of $4.4 million versus $3.5 million for the same period last year, representing a 24.5% increase. The increase in gross revenues was primarily driven by a 55.3% increase in interest income from $2.4 million in 2016 to $3.7 million in 2017, as a result of an increase in the size of the loan portfolio. For the six-month period ended June 30, 2017, gross revenues improved to $8.7 million compared to $6.8 million for the same period in 2016.
  • Interest expense during the three-month period ended June 30, 2017 increased by 44.3% to $1.0 million, up from $0.7 million over the previous year. The increase is attributable to an increase in borrowings under the credit facility partially offset by a reduction in the cost of funds borrowed versus the previous year. For the six-month period ended June 30, 2017, interest expense amounted to $1.9 million compared to $1.3 million in 2016.
  • Provision for loan losses (net of recoveries) increased to $2.4 million for the three-month period ended June 30, 2017, up from $1.2 million for the previous year. The increase is primarily attributable to an increase in defaults by borrowers and partially due to an increase in the size of the loan portfolio. To improve loss performance, IOU Financial has made changes to its lending policies and deployed its next generation proprietary IOU Risk Logic Score. In addition, the Company has implemented certain process changes to improve its servicing and collections which includes an aggressive litigation process against businesses who intentionally default on their loan obligations. For the six-month period ended June 30, 2017, IOU recorded a provision for loan losses of $4.3 million compared to $2.0 million in 2016.
  • Excluding non-recurring costs, operating expenses decreased 18.1% to $2.5 million for the three-month period ended June 30, 2017 as compared to $3.1 million for the previous year. During the quarter ended September 30, 2016, the Company adopted a plan to reduce operating expenses. The Company is on track to achieve its target of quarterly operating costs of $2.0 million to $2.2 million on a normalized basis in the third quarter. In the second quarter, IOU recorded non-recurring costs of $0.5 million related to vendor contract cancellations and impairment of intangible assets. For the six-month period ended June 30, 2017, operating expenses amounted to $4.9 million, excluding non-recurring costs, compared to $6.0 million in 2016.
  • IOU closed its second quarter 2017 with a net loss of $2.1 million, or $0.03 per share, compared to a net loss of $1.5 million or $0.02 per share during the same period of 2016. For the six-month period ended June 30, 2017, the net loss amounted to $3.1 million versus $2.8 million in 2016.
  • IOU closed its second quarter 2017 with an adjusted net loss of $1.3 million, which excludes certain non-cash and non-recurring items, compared to an adjusted net loss of $1.1 million in the second quarter of 2016. For the first half of 2017, the adjusted net loss was $1.9 million compared to an adjusted net loss of $1.6 million for the same period in 2016. Assuming the cost reduction plan was fully implemented on January 1, 2017, IOU’s pro forma adjusted net loss for the three-month and six-month period ended June 30, 2017 would have been approximately $0.8 million and $1.2 million, respectively.

OUTLOOK

For the remainder of 2017, IOU will continue to focus on finding operational efficiencies, the performance of its loan portfolio, and achieving profitability.

The Company 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 building long-term partnerships with its existing broker base by investing time in offering great service through dedicated account executives.

IOU also intends to grow loan originations by forming new strategic partnerships with entities such as banks and small business suppliers and leveraging their relationships with small businesses to add new customers; expanding its product offering to allow it to serve small businesses whose needs are not met by its current products; investing in direct marketing and sales; and continuing its expansion into Canada.

IOU’s financial statements and management discussion & analysis for the quarter ended June 30, 2017 have been filed on SEDAR and are available at www.sedar.com.

CONFERENCE CALL

The Company will hold a conference call at 4:30 p.m. (EDT) on Wednesday, August 30, 2017, to discuss its financial results. The dial-in number to access the conference call from Canada and the United States is 1‑800‑511‑8018 (toll-free), conference ID: 6480086.

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 e-commerce 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 $300,000 to qualified U.S. applicants ($100,000 in Canada) within a few business days, with affordable charges favourable 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 TSX-V has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For further information: Philippe Marleau, Chief Executive Officer, (514) 789-0694 ext. 225; David Kennedy, Chief Financial Officer, (514) 789-0694 ext. 278