TORONTO,
Oct. 22, 2013 /CNW/ - Accord
Financial Corp. (TSX - ACD) today released its interim unaudited
consolidated financial results for the three and nine months ended
September 30, 2013. 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
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Three Months Ended
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Nine Months Ended
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September 30
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September 30
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2013 |
2012 |
2013 |
2012 |
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Factoring volume
(millions) |
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$ |
499 |
$ |
474 |
$ |
1,378 |
$ |
1,354 |
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Revenue |
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$ |
6,463,634 |
$ |
6,748,970 |
$ |
18,798,865 |
$ |
18,751,095 |
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Net earnings |
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$ |
1,377,875 |
$ |
1,725,378 |
$ |
3,890,912 |
$ |
3,851,632 |
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Basic and diluted
earnings
per common share |
$ |
0.17 |
$ |
0.21 |
$ |
0.47 |
$ |
0.46 |
Basic and diluted
weighted
average number of shares |
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8,221,498 |
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8,342,261 |
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8,221,498 |
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8,464,468 |
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Net earnings for the third quarter of 2013
declined to $1,377,875 compared to
$1,725,378 last year. Earnings
decreased as a result of lower revenue, higher general and
administrative expenses and an increased provision for credit and
loan losses. Earnings per share ("EPS") were 17 cents compared to 21
cents last year. Net earnings in the current quarter were
impacted by a significant stock-based compensation expense related
to the Company's share appreciation rights ("SARs"). This
non-operating expense largely resulted from the increase in
Accord's share price on the Toronto Stock Exchange in the quarter.
Excluding the non-operating SARs expense of $185,000 (2012: $19,000), net earnings would have been
$1,500,000 in the third quarter
compared to $1,738,000 last year. EPS
would have been 18 cents compared to
21 cents last year. Factoring volume
rose to $499 million compared to
$474 million last year on higher
recourse factoring volume. Revenue decreased to $6,463,634 in the current quarter compared to
$6,748,970 last year mainly as a
result of a decline in non-recourse volume and somewhat lower
yields.
Net earnings for the first nine months of 2013
rose to $3,890,912 compared with
$3,851,632 in 2012 principally as a
result of a lower provision for credit and loan losses. EPS were
47 cents compared to 46 cents last year. Excluding the SARs expense of
$455,000 (2012: $50,000), net earnings in the first nine months
of 2013 would have increased by 8% to $4,196,000 compared to $3,885,000 last year, while EPS would have been
11% higher at 51 cents compared to
46 cents last year. Factoring volume
for the first nine months of 2013 rose to $1,378 million on higher recourse factoring
volume. Revenue increased to $18,798,865 compared to $18,751,095 last year as a result of higher
average funds employed principally in our U.S. operations.
Commenting on Accord's third quarter and nine
months results, Mr. Tom Henderson,
the Company's President and CEO, stated: "While the current quarter
was our best quarter of 2013, we were unable to match last year's
strong third quarter results, although our current nine months
results are ahead of 2012. 2013's third quarter suffered from lower
revenue, a $166,000 rise in
stock-based compensation and a $233,000 increase in the reserves expense, as
additional allowances for losses were set up to cover an
$11 million rise in funds employed in
the quarter. Positively, the increase in funds employed will result
in higher revenue in future quarters. Our Montreal based recourse factoring and
asset-based lending business currently has substantial momentum and
record funds employed. This is tempered somewhat by our U.S. based
lending business and Toronto based
non-recourse factoring business that are facing intense
competition. I am also pleased to report that the condition of our
portfolio continues to look sound and our processes and procedures
are proving effective in maintaining the quality thereof. "
The Company's Board of Directors today declared
a regular quarterly dividend of $0.08
per share, payable December 2, 2013
to shareholders of record November 15,
2013.
About Accord Financial Corp.
Accord is a leading North American provider of factoring and other
asset-based financial services, including financing, credit
investigation and guarantees, collection services, and supply chain
financing for importers. Accord has been in business for over 35
years and operates out of two offices in Canada and one in the USA. The Company is currently the only
factoring and asset-based lending company listed on the Toronto
Stock Exchange.
SOURCE Accord Financial Corp.