ACD Accord Financial Corporation

TORONTO, July 27 /CNW/ -- TORONTO, July 27 /CNW/ - Accord Financial Corp. (TSX - ACD), a leading North American provider of factoring and other asset-based financial services to businesses, today released its interim unaudited consolidated financial results for the three and six months ended June 30, 2010. The financial results presented in this release are reported in Canadian dollars and have been prepared in accordance with Canadian generally accepted accounting principles. ------------------------------------------------------------------------- SUMMARY OF FINANCIAL RESULTS ---------------------------- Three Months Ended Six Months Ended June 30 June 30 2010 2009 2010 2009 ---- ---- ---- ---- Factoring volume (millions) $ 500 $ 380 $ 1,005 $ 782 Revenue $ 8,069,232 $ 5,677,356 $ 15,048,156 $ 11,748,251 Net earnings $ 2,311,864 $ 494,183 $ 3,922,609 $ 1,774,344 Earnings per share Basic $ 0.25 $ 0.05 $ 0.42 $ 0.19 Diluted $ 0.25 $ 0.05 $ 0.42 $ 0.19 Weighted average number of shares Basic 9,408,695 9,408,027 9,408,833 9,418,288 Diluted 9,408,695 9,408,027 9,408,833 9,426,276 ------------------------------------------------------------------------- Net earnings for the quarter ended June 30, 2010 were a second quarter record $2,311,864, 368% higher than the depressed $494,183 last year. Earnings rose due to higher revenue and, to a lesser extent, a lower provision for credit and loan losses. Diluted earnings per share increased to 25 cents, five times the 5 cents last year. Factoring volume rose 31% to a second quarter record $500 million compared to $380 million last year. Revenue increased 42% to $8,069,232, another second quarter record, compared to $5,677,356 last year on a combination of higher factoring volume and funds employed, as well as improved yields and lower non-earning accounts. Net earnings for the first six months of 2010 rose 121% to a first half record $3,922,609 compared with $1,774,344 in 2009 for the same reasons noted above. Diluted earnings per share also rose 121% to 42 cents compared to 19 cents last year. Factoring volume for the first half of 2010 was a record $1,005 million. Total revenue, a first half record, increased 28% to $15,048,156 compared to $11,748,251 last year. Commenting on the second quarter and first half 2010 results, Mr. Tom Henderson, the Company's President and CEO stated: "all three of the Company's operating units have shown improved performance this year. Second quarter net earnings exceeded those of our excellent first quarter by 44% and, as noted above, represented our best ever second quarter. First half net earnings were also a record, exceeding the previous best in 2008 by 21%. The results reflect weakened competition and our intensified marketing efforts." The Company's Board of Directors today declared a 15% increase in its quarterly dividend. A dividend of $0.075 per share was declared, payable September 1, 2010 to shareholders of record of August 13, 2010. The Board also resolved, subject to regulatory approval, to renew its normal course issuer bid which expires August 7, 2010. %SEDAR: 00001979E Stuart Adair, Vice President, Chief Financial Officer, Accord Financial Corp., 77 Bloor Street West, 18th floor, Toronto, ON, M5S 1M2, (416) 961-0304 Ext. 207, sadair@accordfinancial.com

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