Accord Announces Third Quarter and Nine Months Earnings and
Declares Regular Quarterly Dividend
TORONTO,
Oct. 23, 2012 /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 nine months ended September 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 |
Nine Months
Ended |
| |
|
September
30 |
September
30 |
| |
|
2012 |
2011 |
2012 |
2011 |
| |
|
|
|
|
|
| Factoring volume
(millions) |
|
$ |
474 |
$ |
524 |
$ |
1,354 |
$ |
1,461 |
| |
|
|
|
|
|
| Revenue |
|
$ |
6,748,970 |
$ |
7,341,838 |
$ |
18,751,095 |
$ |
21,037,316 |
| |
|
|
|
|
|
| Net earnings |
|
$ |
1,725,378 |
$ |
2,248,167 |
$ |
3,851,632 |
$ |
5,240,274 |
| |
|
|
|
|
|
Basic and diluted earnings
per common share |
|
$ |
0.21 |
$ |
0.25 |
$ |
0.46 |
$ |
0.59 |
| |
Basic and diluted
weighted
eaverage number of shares |
|
8,342,261 |
8,905,931 |
8,464,468 |
8,952,283 |
| |
|
|
|
|
|
Net earnings for the third quarter of 2012
declined to $1,725,378 compared to
$2,248,167 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 21 cents compared to
25 cents last year. Factoring volume
declined to $474 million compared to
$524 million last year largely due to
lower non-recourse volume. Revenue decreased to $6,748,970 compared to $7,341,838 last year mainly due to lower
non-recourse volume, and somewhat lower yields in our recourse
factoring business.
Net earnings for the first nine months of 2012
declined to $3,851,632 compared with
$5,240,274 in 2011 for similar
reasons to those noted above. Earnings per share were 46 cents compared to 59
cents last year. Factoring volume for the first nine months
of 2012 declined to $1,354 million as
a result of lower non-recourse volume. Revenue decreased to
$18,751,095 compared to $21,037,316 last year on the decline in
non-recourse factoring volume, and lower average funds employed and
yields in our recourse factoring business.
Commenting on the third quarter and nine months
results, Mr. Tom Henderson, the
Company's President and CEO, stated: "Since the year started with a
low level of funds employed and resultant volume, we have been
building momentum and funds employed have risen 28% this year and
are close to a record high. This momentum is expected to continue
into the fourth quarter of 2012. However, the decline in factoring
volume at our non-recourse business has served to offset these
gains to a substantial degree. Accordingly, while the level
of business activity is rising, it is still below that of the prior
year, so there is work to be done."
The Company's Board of Directors today declared
a regular quarterly dividend of $0.08
per share, payable December 3, 2012
to shareholders of record November 15,
2012.
SOURCE Accord Financial Corp.