TORONTO, Oct. 28, 2015 /CNW/ - Accord Financial Corp. (TSX
– ACD) today released its financial results for the three and nine
months ended September 30,
2015. 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
|
|
Three Months Ended
Sept. 30
|
Nine Months Ended
Sept. 30
|
|
2015
|
2014
|
2015
|
2014
|
|
$
|
$
|
$
|
$
|
Average funds
employed (millions)
|
156
|
149
|
151
|
142
|
Revenue
(000's)
|
8,521
|
8,165
|
23,737
|
22,311
|
Net earnings
(000's)
|
2,524
|
2,176
|
5,965
|
4,510
|
Adjusted net
earnings (000's) (note)
|
2,551
|
2,263
|
6,300
|
5,091
|
Earnings per
common share (basic and diluted)
|
0.30
|
0.26
|
0.72
|
0.54
|
Adjusted earnings
per common share (basic and diluted)
|
0.31
|
0.27
|
0.76
|
0.61
|
Book value per
share (Sept. 30)
|
|
|
$ 8.38
|
$ 7.06
|
|
|
|
|
|
|
|
Net earnings, a third quarter record, rose 16% to $2,524,000 compared to $2,176,000 last year. Net earnings increased
mainly as a result of higher revenue, lower provision for losses
and a reduced effective income tax rate. Earnings per share
("EPS") increased by 15% to a third quarter record 30 cents compared to 26
cents last year. Adjusted net earnings, also a third quarter
record, totaled $2,551,000, 13% above
the $2,263,000 earned in the third
quarter of 2014. Adjusted EPS increased by 15% to a third quarter
record 31 cents compared to
27 cents in last year's third
quarter.
Revenue, also a third quarter record, was 4% higher at
$8,521,000 in the current quarter
compared to $8,165,000 last year.
Revenue increased on higher average funds employed, which rose by
5% in the current quarter compared to the third quarter of
2014.
Net earnings in the first nine months of 2015 increased by 32%
to a record $5,965,000 compared with
$4,510,000 in the first nine months
of 2014 as a result of higher revenue and a lower effective income
tax rate. EPS rose 33% to a nine month record 72 cents compared to 54
cents last year. Adjusted net earnings increased by 24% to a
record $6,300,000 in the first nine
months of 2015 compared to $5,091,000
last year. Adjusted EPS were up 25% to a record 76 cents compared to 61
cents last year.
Revenue increased 6% to a nine month record $23,737,000 this year compared to $22,311,000 last year as average funds employed
rose by 6% to $151 million in the
first nine months of 2015.
Commenting on the third quarter and first nine months of 2015
results, Mr. Tom Henderson, the
Company's President and CEO, stated: "It's always nice to report
record earnings. It feels good to do that but it's even
more gratifying if those record earnings occur in the midst of a
difficult time for our industry. Especially satisfying
to me is that your company is positioned to perform well no matter
how the global economy performs."
At the Company's Board of Directors ("Board") meeting held
today, the Board under the Company's non-executive directors' stock
option plan, granted a total of 100,000 stock options to its five
independent directors at an exercise price of $9.56, being yesterday's closing price of the
Company's shares on the Toronto Stock Exchange. The options vest
over a period of three years.
The Board also declared a regular quarterly dividend of
$0.09 per common share, payable
December 1, 2015 to shareholders of
record November 13, 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 38
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:
|
Three Months
Ended Sept. 30
|
Nine
Months Ended Sept. 30
|
|
2015
|
2014
|
2015
|
2014
|
|
$'000
|
$'000
|
$'000
|
$'000
|
Net earnings
reported
|
2,524
|
2,176
|
5,965
|
4,510
|
Adjustments, net of
tax:
|
|
|
|
|
|
Stock-based
compensation
|
(79)
|
(14)
|
18
|
231
|
|
Business acquisition
expenses
|
106
|
101
|
317
|
350
|
Adjusted net
earnings
|
2,551
|
2,263
|
6,300
|
5,091
|
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 a particular
period.
SOURCE Accord Financial Corp.