TORONTO, May 3, 2017 /CNW/ - Accord Financial Corp.
(TSX – ACD) today released its financial results for the quarter
ended March 31, 2017. 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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2017
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2016
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$
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$
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Average funds
employed (millions)
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143
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142
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Revenue
(000's)
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6,501
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6,871
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Net earnings
(000's)
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1,226
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1,465
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Adjusted net
earnings (000's) (note)
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1,362
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1,591
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Earnings per
common share (basic and diluted)
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0.15
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0.18
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Adjusted earnings
per common share (basic and diluted)
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0.16
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0.19
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Book value per
share (Mar. 31)
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$
9.13
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$
8.61
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Net earnings decreased to $1,226,000 in the first quarter of 2017 compared
to the $1,465,000 earned last year.
Adjusted net earnings declined to $1,362,000 from the $1,591,000 earned in the first quarter of 2016.
This decline resulted from lower revenue combined with a slightly
higher borrowing expense. Revenue declined by 5% to
$6,501,000 in the first quarter
compared to $6,871,000 last year
mainly as a result of lower overall portfolio yields. Average funds
employed in the first quarter of 2017 compared to $142 million last year.
Earnings per common share ("EPS") decreased to 15 cents compared to 18
cents last year. Adjusted EPS were 16
cents compared to 19 cents in
last year's first quarter.
Commenting on the first quarter's results, Tom Henderson, CEO, noted: "The first quarter is
generally the toughest in our industry but, despite the seasonal
headwinds, we finished the quarter with momentum. Funds employed
increased to $153 million at
March 31 this year compared to
$144 million last year. Recent
initiatives to streamline our operations and invest in our unique
brand are starting to bear fruit. Accord's respected brand
continues to be recognized in our key markets. We look forward to
building on this momentum."
As noted in the Company's press release of April 17, 2017, a regular quarterly dividend of
$0.09 per share was declared payable
June 1, 2017 to shareholders of
record at the close of business May 17,
2017.
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 39 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
ongoing 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 amortization of intangible
assets. 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 ongoing operating performance as it excludes items which
do not directly 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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2017
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2016
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$'000
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$'000
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Net earnings
reported
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1,226
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1,465
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Adjustments, net of
tax:
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Stock-based
compensation
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69
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32
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Amortization of
intangible assets
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67
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94
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Adjusted net
earnings
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1,362
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1,591
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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.