TORONTO,
July 23, 2014 /CNW/ - Accord
Financial Corp. (TSX - ACD) today released its financial results
for the three and six months ended June 30,
2014. The financial figures presented in this release
are reported in Canadian dollars and have been prepared in
accordance with International Financial Reporting Standards
("IFRS").
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SUMMARY OF FINANCIAL RESULTS |
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June 30, 2014 |
June 30, 2013 |
Finance receivables and loans |
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(funds employed) (millions) |
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$ 149 |
$ 109 |
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Three Months Ended June
30 |
Six Months
Ended June 30 |
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2014 |
2013 |
2014 |
2013 |
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Factoring volume
(millions) |
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$
525 |
$
431 |
$
1,041 |
$
879 |
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Revenue (000's) |
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$ 7,529 |
$ 6,388 |
$ 14,145 |
$
12,335 |
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Net earnings (000's) |
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$ 1,537 |
$ 1,267 |
$
2,334 |
$
2,513 |
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Adjusted net earnings (000's)
(note) |
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$ 1,593 |
$ 1,430 |
$
2,828 |
$
2,696 |
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Earnings per common share
(basic and diluted) |
$
0.18 |
$
0.15 |
$
0.28 |
$
0.31 |
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Adjusted earnings per common share
(basic and diluted) |
$
0.19 |
$
0.17 |
$
0.34 |
$
0.33 |
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Basic and diluted weighted average
number of shares |
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8,307,713 |
8,221,498 |
8,293,807 |
8,221,498 |
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Net earnings for the second quarter of 2014 rose
21% to $1,537,000 compared to
$1,267,000 last year. Earnings
increased as a result of higher revenue. Earnings per share
("EPS") increased 20% to 18 cents
compared to 15 cents last year.
Adjusted net earnings totaled $1,593,000 in the second quarter of 2014, 11%
above the $1,430,000 earned in the
second quarter of 2013. Adjusted EPS were 19
cents compared to 17 cents in
last year's second quarter.
Factoring volume rose 22% to a second quarter
record of $525 million compared to
$431 million last year. Funds
employed increased 37% to a record high $149
million at June 30, 2014
compared to $109 million a year ago.
Revenue was 15% higher at $7,529,000
in the current quarter compared to $6,388,000 last year. Revenue increased on higher
funds employed and factoring volume.
Net earnings for the first half of 2014 declined
7% to $2,334,000 compared with
$2,513,000 in the first half of 2013
as a result of higher expenses. EPS were 28
cents compared to 31 cents
last year.
Adjusted net earnings increased by 5% to
$2,828,000 in the first half of 2014
compared to $2,696,000 in the first
half of 2013. Adjusted EPS were 34
cents compared to 33 cents
last year.
Factoring volume for the first six months of
2014 rose 18% to a first half record $1,041
million compared to $879
million last year. Revenue increased 15% to
$14,145,000 compared to $12,335,000 last year for reasons noted
above.
Commenting on the second quarter and first half
2014 results, Mr. Tom Henderson, the
Company's President and CEO, stated: "In many ways the second
quarter felt much like the first across all our business units.
Competition continues to be very aggressive but nevertheless we
continue to perform well as evidenced by the 11% increase in
adjusted second quarter earnings. Our funds employed rose to record
levels in the quarter and, as one of the main drivers of our
business, this bodes well for the future. The really good news is
we remain popular with referral sources and potential clients.
Inquiries from these constituencies are at an all-time high
reflecting, in part, the increased recognition of the Accord
brand. The new business pipeline augurs well for our
financial performance the balance of the year."
The Company's Board of Directors today declared
a quarterly dividend of $0.085 per
common share, payable September 2,
2014 to shareholders of record August
15, 2014. This represents a 6% increase from the previous
dividend of $0.08 per common
share.
Note: Non-IFRS measures
The Company's financial statements have been
prepared in accordance with IFRS. The Company uses a number of
other financial measures to monitor its performance and believes
these measures may be useful to investors in evaluating the
Company's operating performance and financial position. These
measures may not have standardized meanings or computations as
prescribed by IFRS that would ensure consistency between companies
using these measures and are, therefore, considered to be non-IFRS
measures.
Adjusted net earnings and adjusted earnings per
common share ("EPS") are non-IFRS measures used in this press
release. The Company derives these measures from amounts presented
in its IFRS prepared financial statements. Adjusted net earnings
comprise net earnings before non-operating stock-based compensation
and business acquisition expenses (namely, transaction and
integration costs and amortization of intangibles). Adjusted
EPS is adjusted net earnings divided by the weighted average number
of common shares outstanding in the quarter. Management believes
adjusted net earnings is a more appropriate measure of operating
performance as it excludes items which do not relate to ongoing
operating activities. The following table provides a reconciliation
of the Company's net earnings to adjusted net earnings:
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Three Months Ended June
30 |
Six Months
Ended June 30 |
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2014 |
2013 |
2014 |
2013 |
Net earnings reported |
$ 1,536,739 |
$ 1,267,009 |
$ 2,333,704 |
$ 2,513,037 |
Adjustments, net of tax: |
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Stock-based compensation |
(44,134) |
162,992 |
245,162 |
182,903 |
Business acquisition
expenses |
100,786 |
- |
249,184 |
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Adjusted net earnings |
$
1,593,391 |
$
1,430,001 |
$
2,828,050 |
$
2,695,940 |
SOURCE Accord Financial Corp.