TORONTO, May 6, 2015 /CNW/ - Accord Financial Corp.
(TSX – ACD) today released its financial results for the quarter
ended March 31, 2015. The financial
figures presented in this release are reported in Canadian dollars
and have been prepared in accordance with International Financial
Reporting Standards.
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SUMMARY OF
FINANCIAL RESULTS
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Three Months Ended
March 31
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2015
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2014
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$
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$
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Average funds
employed (millions)
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142
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130
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Revenue
(000's)
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7,559
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6,616
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Net earnings
(000's)
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1,705
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797
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Adjusted net
earnings (000's) (note)
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1,865
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1,235
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Earnings per
common share (basic and diluted)
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0.21
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0.10
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Adjusted earnings
per common share (basic and diluted)
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0.22
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0.15
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Book value per
share (Mar. 31)
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$ 7.83
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$ 6.72
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Net earnings increased by $908,000
or 114% to a first quarter record $1,705,000 in 2015 compared to the $797,000 earned in the first quarter of 2014. Net
earnings mainly rose as a result of higher revenue and a lower tax
rate. Earnings per common share ("EPS"), also a first quarter
record, increased to 21 cents
compared to 10 cents last year.
Adjusted net earnings were also a first quarter record $1,865,000, 51% higher than the $1,235,000 earned in the first quarter of 2014.
Adjusted EPS, again a first quarter record, were 22 cents compared to 15
cents in last year's first quarter.
Average funds employed increased 9% to $142 million in the first quarter of 2015
compared to $130 million in last
year's first quarter. Funds employed were a record $159 million at March 31,
2015 compared to $137 million
a year earlier.
Commenting on the first quarter's results, Mr. Tom Henderson, the Company's President and CEO,
noted: "Our results are very pleasing. All units did better,
led by the Company's U.S. business whose results, when converted
into Canadian dollars, also benefited from the stronger U.S.
dollar. Adding to the revenue increase was good growth at our
Canadian lending unit and from our leasing subsidiary Varion
Capital, now doing business as Accord Financial."
As noted in the Company's press release of April 22, 2015, a regular quarterly dividend of
$0.085 per share has been declared
payable June 1, 2015 to shareholders
of record at the close of business May 15,
2015.
About Accord Financial Corp.
Accord Financial Corp.
is a leading North American finance company providing distinctive
working capital solutions to companies from coast to coast.
Accord's flexible finance programs cover the full spectrum of
asset-based lending, from factoring and inventory finance, to
equipment leasing and trade finance. For 37 years, Accord has
helped businesses 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. The non-IFRS measures presented
in this press release are as follows:
1) Adjusted net earnings and adjusted EPS. 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 period. 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 March 31
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2015
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2014
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$'000
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$'000
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Net earnings
reported
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1,705
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797
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Adjustments, net of
tax:
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Stock-based
compensation
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54
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289
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Business acquisition
expenses
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106
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149
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Adjusted net
earnings
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1,865
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1,235
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2) Book value per share – book value is the net asset value of
the Company calculated as total assets minus total liabilities and,
by definition, is the same as total equity. Book value per share is
the net asset value divided by the number of common shares
outstanding as of a particular date.
3) Funds employed are the Company's finance receivables and
loans, an IFRS measure. Average funds employed are the average
finance receivables and loans calculated over the period.
SOURCE Accord Financial Corp.