TORONTO, Feb. 17, 2016 /CNW/ - Accord Financial Corp.
(TSX – ACD) today released its financial results for the fourth
quarter and year ended December 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.
|
SUMMARY OF
FINANCIAL RESULTS
|
|
|
|
|
Three Months Ended
Dec. 31
|
Year Ended Dec.
31
|
|
2015
|
2014
|
2015
|
2014
|
|
$
|
$
|
$
|
$
|
Average funds
employed (millions)
|
145
|
146
|
149
|
143
|
Revenue
(000's)
|
7,840
|
7,925
|
31,577
|
30,235
|
Net earnings
(000's)
|
2,794
|
2,370
|
8,759
|
6,879
|
Adjusted net
earnings (000's) (note)
|
2,980
|
3,022
|
9,281
|
8,113
|
Earnings per
common share (basic and diluted)
|
0.34
|
0.29
|
1.05
|
0.83
|
Adjusted earnings
per common share (basic and diluted)
|
0.36
|
0.36
|
1.12
|
0.98
|
Book value per
share (Dec. 31)
|
|
|
$ 8.79
|
$ 7.38
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Net earnings in 2015 increased by 27% to $8,759,000 compared with $6,879,000 last year mainly on higher revenue and
a lower income tax expense. Reduced stock-based compensation, lower
interest expense and a decreased provision for losses also
contributed to higher net earnings. 2015 operating results were
also favorably impacted by a stronger U.S. dollar. Earnings per
common share ("EPS") rose 27% to $1.05 compared to 83
cents last year. Adjusted net earnings increased by 14% to
$9,281,000 in 2015 compared to
$8,113,000 last year. Adjusted EPS
were up 14% to $1.12 compared to
98 cents last year. All the 2015
figures were new highs for the Company.
Revenue increased 4% to $31,577,000 this year compared to $30,235,000 last year as average funds employed
rose by 4% to $149 million in 2015.
Book value per share ("BVPS") was $8.79 at year-end.
Net earnings for the fourth quarter of 2015 increased by 18% to
$2,794,000 compared to $2,370,000 last year. Net earnings increased
mainly as a result of a reduced income tax expense and a stronger
U.S. dollar. EPS increased by 17% to 34 cents compared to 29
cents last year. Adjusted net earnings were $2,980,000, slightly below the $3,022,000 earned in the fourth quarter of 2014.
Adjusted EPS remained unchanged at 36
cents compared to last year's fourth quarter. 2014's net
earnings were favorably impacted by a $237,000 gain, net of tax, on the sale of certain
assets held for sale.
Revenue declined slightly to $7,840,000 in the current quarter compared to
$7,925,000 last year. Revenue in the
fourth quarter of 2014 included a gain of $415,000 on the sale of certain assets held for
sale.
Commenting on 2015's results, Mr. Tom
Henderson, the Company's President and CEO, stated: "Accord
had a record year. Adjusted net earnings, revenue, average funds
employed, adjusted EPS, year-end equity and BVPS were at all-time
highs. The stronger U.S. dollar and a lower income tax expense
helped us achieve these results. We continued to keep our
portfolio sound and charge-offs low. I am pleased with the
increased visibility and attractiveness of the Accord brand to
Canadian and U. S. referral sources and prospects. Going
forward, we believe we will see increased new business
opportunities as competition is expected to lessen, although we
will face the challenge of maintaining portfolio quality in the
face of an increasingly uncertain global economy."
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 that 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) and, in 2014, the withholding tax
expense paid on a dividend from the Company's U.S. subsidiary.
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 Dec. 31
|
Year
Ended Dec. 31
|
|
2015
|
2014
|
2015
|
2014
|
|
$'000
|
$'000
|
$'000
|
$'000
|
Net earnings
reported
|
2,794
|
2,370
|
8,759
|
6,879
|
Adjustments, net of
tax:
|
|
|
|
|
|
Stock-based
compensation
|
81
|
25
|
99
|
256
|
|
Business acquisition
expenses
|
105
|
68
|
423
|
419
|
|
Withholding tax
expense
|
–
|
559
|
–
|
559
|
Adjusted net
earnings
|
2,980
|
3,022
|
9,281
|
8,113
|
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.