TORONTO (CP) _ Auto loan provider VFC Inc. (TSX:VFC) has posted a
65 per cent profit boost in its latest fourth quarter on the heels
of a $326-million takeover offer by TD Bank (TSX:TD).
The Toronto financing firm said Tuesday its profit for the
quarter ended Dec. 31 amounted to 23 cents per share diluted and
compared to net earnings of $2.4 million a year earlier, 15 cents
Total revenue moved up 34.8 per cent to $21.6 million from $16
million a year earlier.
In February, TD Bank offered $19.50 a share for VFC, a move that
has received the approval of VFC's board.
VFC stockholders have the option of taking $19.50 per share in
cash or $19.45 per share in TD common stock plus a nickel per share
Full-year profit was $12.7 million, 78 cents per share diluted,
up 52.8 per cent from $8.3 million in 2004, 52 cents per share.
Annual revenue was $77.2 million compared to $57.8 million a year
``A 27 per cent growth in loan originations over the same period
last year is evidence of the continued growth in demand for
non-prime finance options in Canada,'' stated president and CEO
``We target an annual return on equity in excess of 20 per cent,
and we are proud to say VFC's ROE was 19.5 per cent for the
VFC, with offices in Toronto, Montreal and Nanaimo, B.C., has 220
employees and $380 million in receivables from more than 25,000
customers lined up through relationships with 2,000 car dealers.