TORONTO,
Feb. 19, 2014 /CNW/ - Accord
Financial Corp. (TSX - ACD) today announced its financial results
for the fourth quarter and year ended December 31, 2013. The financial figures
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
December 31 |
Year Ended
December 31 |
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2013 |
2012 |
2013
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2012 |
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Factoring volume
(millions) |
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$
483 |
$
511 |
$
1,860 |
$
1,865 |
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Revenue |
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$
7,274,676 |
$ 7,139,432 |
$ 26,073,541 |
$ 25,890,527 |
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Net earnings |
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$
2,647,099 |
$
2,524,785 |
$ 6,538,011 |
$ 6,376,597 |
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Basic and diluted earnings
per common share |
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$
0.32 |
$
0.31 |
$
0.80 |
$
0.76 |
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Basic and diluted weighted
average number of
shares |
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8,221,498 |
8,221,498 |
8,221,498 |
8,403,725 |
Dividends paid per common
share |
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$
0.08 |
$
0.08 |
$
0.32 |
$
0.31 |
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Net earnings in 2013 rose 3% to $6,538,000 compared to $6,377,000 last year on higher revenue and lower
income tax expense. Earnings per share ("EPS") increased 5% to
80 cents from 76 cents in 2012. Net earnings in 2013 were
impacted by a $284,000 rise in
stock-based compensation expense related to the Company's share
appreciation rights ("SARs"). This non-operating expense largely
resulted from a rise in Accord's share price on the Toronto Stock
exchange in 2013. Excluding the non-operating SARs expense of
$370,000 (2012: $86,000), net earnings would have increased by 5%
to $6,783,000 compared to
$6,434,000 last year. EPS would have
risen by 8% to 83 cents compared to
77 cents last year. The Company's
return on average shareholders' equity was 13.1% in 2013 compared
with 13.8% in 2012 as equity rose at a faster rate than net
earnings.
Factoring volume in 2013 was relatively
unchanged at $1.86 billion. Revenue
increased to $26,074,000 from
$25,891,000 in 2012. Revenue
increased on higher average funds employed and improved yields in
our U.S. financing operation.
Net earnings for the fourth quarter of 2013 rose
5% to $2,647,000 compared to
$2,525,000 last year on higher
revenue and lower income tax expense. EPS rose by 3% to
32 cents compared to 31 cents in the fourth quarter of 2012. Excluding
a fourth quarter SARs recovery of $86,000 (2012: expense $36,000), net earnings would have risen to
$2,587,000 compared to $2,549,000 in the fourth quarter of 2012. EPS
would have been 31 cents, the same as
last year.
Factoring volume for the fourth quarter of 2013
decreased 5% to $483 million compared
with $511 million the prior year.
Revenue increased 2% to $7,275,000
compared to $7,139,000 in the fourth
quarter of 2012 as a result of higher average funds employed and
improved yields.
Commenting on 2013's results, Tom Henderson, the Company's President and CEO,
stated: "Your Company performed well in 2013 and responded
effectively to competitive pressures. Our U.S. operations
reported record net earnings in 2013, while our Canadian lending
business had a most satisfying year and achieved a record level of
funds employed in the fourth quarter, including the acquisition of
a competitor's loan portfolio, all of which was achieved with
minimal loan losses in 2013. Our non-recourse business experienced
continued headwinds from the major credit insurers. However,
several new clients with good growth prospects came on board and
expenses were further trimmed. On January
31, 2014, Accord completed the strategic acquisition of
Varion Capital Corp. ("Varion"), a lease finance company. Varion
finances equipment for small and medium-sized businesses in
Canada. This strategic acquisition
strengthens our ability to serve key markets by providing a broader
range of finance solutions for growing companies across
Canada."
About Accord Financial Corp.
Accord Financial Corp. is a leading North American provider of
asset-based financial services, including factoring, financing,
trade finance, credit guarantees and collection services, and now
lease financing. For over 35 years, Accord has been helping
businesses across Canada and the
U.S. manage their cash flows and maximize financial opportunities -
keeping business liquid is our goal. Accord is currently the only
factoring and asset-based lending company listed on the Toronto
Stock Exchange.
SOURCE Accord Financial Corp.