TORONTO, May 4, 2016 /CNW/ - Accord Financial Corp.
(TSX – ACD) today released its financial results for the quarter
ended March 31, 2016. 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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2016
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2015
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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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142
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Revenue
(000's)
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6,871
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7,559
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Net earnings
(000's)
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1,465
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1,705
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Adjusted net
earnings (000's) (note)
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1,591
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1,865
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Earnings per
common share (basic and diluted)
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0.18
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0.21
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Adjusted earnings
per common share (basic and diluted)
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0.19
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0.22
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Book value per
share (Mar. 31)
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$ 8.61
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$ 7.83
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Net earnings decreased by $240,000
or 14% to $1,465,000 in the first
quarter of 2016 compared to the $1,705,000 earned last year. Net earnings
declined mainly as a result of lower revenue. Earnings per common
share ("EPS"), decreased to 18 cents
compared to 21 cents last year.
Adjusted net earnings were $1,591,000, 15% lower than the $1,865,000 earned in the first quarter of 2015.
Adjusted EPS were 19 cents compared
to 22 cents in last year's first
quarter.
Revenue declined by 9% to $6,871,000 in the first quarter compared to
$7,559,000 last year mainly as a
result of lower fees earned from receivables management and
somewhat lower yields. Average funds employed remained unchanged at
$142 million in the first quarter of
2016 compared to last year's first quarter.
Commenting on the first quarter's results, Mr. Tom Henderson, the Company's President and CEO,
noted: "We came away from the first quarter with mixed feelings;
while revenue and earnings were down compared to last year's record
levels, our "pipeline" of new business was strong at the end of the
first quarter and we are looking forward to higher activity for the
balance of the year."
As noted in the Company's press release of April 18, 2016, a regular quarterly dividend of
$0.09 per share has been declared
payable June 1, 2016 to shareholders
of record at the close of business May 16,
2016.
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 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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2016
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2015
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$'000
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$'000
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Net earnings
reported
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1,465
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1,705
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Adjustments, net of
tax:
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Stock-based
compensation
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32
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54
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Business acquisition
expenses
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94
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106
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Adjusted net
earnings
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1,591
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1,865
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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 a particular
period.
SOURCE Accord Financial Corp.