Accord Announces Second Quarter and First Half Earnings, Declares a 7% Increase in Quarterly Dividend and Resolves to Renew Nor
July 22 2012 - 2:56AM
PR Newswire (Canada)
TORONTO, July 24, 2012 /CNW/ - Accord Financial Corp. , 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, 2012. The financial results presented
in this release are reported in Canadian dollars and have been
prepared in accordance with International Financial Reporting
Standards. SUMMARY OF FINANCIAL RESULTS Three Months Ended June Six
Months Ended June 30 30 2012 2011 2012 2011 Factoring volume
(millions) $ 443 $ 455 $ 880 $ 937 Revenue $ 6,322,501 $ 6,828,201
$ 12,002,125 $ 13,695,478 Net earnings $ 1,243,038 $ 1,393,639 $
2,126,254 $ 2,992,107 Basic and diluted earnings $ 0.15 $ 0.16 $
0.25 $ 0.33 per common share Basic and diluted weighted average
number of shares 8,515,898 8,948,580 8,525,571 8,975,460 Net
earnings for the second quarter of 2012 declined 11% to $1,243,038
compared to $1,393,639 last year. Earnings declined mainly due to
lower revenue and, to a lesser extent, a higher provision for
credit and loan losses. Earnings per share were 15 cents
compared to 16 cents last year. Factoring volume declined 3% to
$443 million compared to $455 million last year largely due to
lower non-recourse volume. Revenue decreased 7% to $6,322,501
compared to $6,828,201 last year mainly due to lower non-recourse
volume, and somewhat lower average funds employed and yields
thereon. Net earnings for the first six months of 2012 declined 29%
to $2,126,254 compared with $2,992,107 in 2011 for similar reasons
to those noted above. Earnings per share were 25 cents compared to
33 cents last year. Factoring volume for the first half of 2012
declined 6% to $880 million largely as a result of lower
non-recourse volume. Revenue decreased 12% to $12,002,125
compared to $13,695,478 last year for reasons noted above.
Commenting on the second quarter and first half 2012 results, Mr.
Tom Henderson, the Company's President and CEO, stated: "Our
earnings are weaker compared to last year but we expect that the
second half of 2012 will be better than the first half. The
earnings for the quarter just ended do not yet reflect the impact
of the marketing initiatives Accord has undertaken. However,
where the results of those initiatives can clearly be seen is in
the build-up of funds employed that has occurred in our recourse
factoring business, particularly in the U.S. Funds employed
have increased 29% since the beginning of 2012 to $116 million at
June 30, 2012 and are within touching distance of our record high
$120 million. In addition, the pipeline of prospective transactions
continues to be satisfactory. This augurs well for the
Company's recourse business as we head into the second half of the
year. Our non-recourse business is also ramping up its marketing
campaign for our new product, AccordOctet." The Company's Board of
Directors today declared an increased quarterly dividend of $0.08
per common share, payable September 4, 2012 to shareholders of
record August 15, 2012. The Board also resolved, subject to
regulatory approval, to renew its normal course issuer bid which
expires August 7, 2012. Accord Financial Corp.
CONTACT: Please contact:Stuart AdairVice President, Chief Financial
OfficerAccord Financial Corp.77 Bloor Street West, 18th
floorToronto, ON M5S 1M2(416) 961-0304 Ext.
207sadair@accordfinancial.com
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