ACD Accord Financial Corporation

TORONTO, Oct. 22, 2014 /CNW/ - Accord Financial Corp. (TSX – ACD) today released its financial results for the three and nine months ended Sept. 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").

Net earnings for the third quarter of 2014 rose 58% to $2,176,000 compared to $1,378,000 last year.  Earnings increased as a result of higher revenue.  Earnings per share ("EPS") increased 53% to 26 cents compared to 17 cents last year.

Adjusted net earnings were a third quarter record $2,263,000, 51% above the $1,500,000 earned in the third quarter of 2013.  Adjusted EPS rose 50% to 27 cents compared to 18 cents in last year's third quarter.

Factoring volume rose 16% to $579 million in the third quarter compared to $499 million last year.  Funds employed increased 30% to a record high $155 million at Sept. 30, 2014 compared to $119 million a year ago.  Revenue rose 26% to a third quarter record $8,165,000 compared to $6,464,000 in last year's third quarter.  Revenue principally rose on higher funds employed and factoring volume.

Net earnings for the first nine months of 2014 increased 16% to $4,510,000 compared with $3,891,000 in 2013 mainly as a result of higher revenue.  EPS were 15% higher at 54 cents compared to 47 cents last year.

Adjusted net earnings in the first nine months of 2014 increased by 21% to $5,091,000 compared to $4,196,000 in the first nine months of 2013.  Adjusted EPS increased 20% to 61 cents compared to 51 cents last year. 

Factoring volume rose 18% to a first nine-month record $1,620 million compared to $1,378 million in the first nine months of 2013.  Revenue increased 19% to $22,311,000 compared to $18,799,000 last year for reasons noted above.

Commenting on the third quarter and first nine months 2014 results, Mr. Tom Henderson, the Company's President and CEO, stated: "The momentum that has been building all year was reflected in record third quarter revenue and adjusted net earnings.  We've been investing in our businesses and now we are beginning to see the start of a nice earnings payoff.  Our funds employed reached a record $155 million at Sept. 30, 2014 and are up 30% from $119 million a year ago.  I consider that to be outstanding growth considering the relatively weak economy in Canada and the U.S. and in spite of continuing aggressive competition.  Our excellent senior management and staff continue to pay maximum attention to portfolio quality and I am happy to say that it remains in good shape.  Also new business activity is still good and should continue through to the end of the year."

The Company's Board of Directors today declared a quarterly dividend of $0.085 per common share, payable Dec. 1, 2014 to shareholders of record Nov. 14, 2014.

About Accord Financial Corp.

Accord Financial Corp. is a leading North American provider of asset-based financial services, including factoring, trade finance, lease financing, credit guarantees and collection services.  For over 35 years, Accord has helped businesses across Canada and the U.S. manage their cash flows and maximize financial opportunities – keeping business liquid.

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:

SOURCE Accord Financial Corp.