TORONTO, May 2, 2018 /CNW/ - Accord Financial Corp.
(TSX – ACD) today released its financial results for the quarter
ended March 31, 2018. 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
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Ended March
31
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2018
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2017
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$
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$
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Average funds
employed (millions)
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229
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143
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Revenue
(000's)
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10,033
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6,501
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Net earnings
attributable to shareholders (000's)
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1,216
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1,226
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Adjusted net
earnings (000's) (note)
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1,441
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1,362
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Earnings per
common share (basic and diluted)
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0.15
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0.15
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Adjusted earnings
per common share (basic and diluted)
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0.17
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0.16
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Book value per
share (Mar. 31)
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$
9.38
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$
9.13
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Net earnings attributable to shareholders ("shareholders' net
earnings") decreased slightly to $1,216,000 in the first quarter of 2018 compared
to the $1,226,000 earned last year.
Shareholders' net earnings declined mainly as a result of a higher
provision for losses and other expenses. Earnings per common share
("EPS") remained unchanged at 15
cents compared to the first quarter of last year. Adjusted
net earnings rose to $1,441,000 from
the $1,362,000 earned in the first
quarter of 2017. Adjusted EPS were 17
cents compared to 16 cents in
last year's first quarter. Revenue rose by 54% to a quarterly
record $10,033,000 in the first
quarter compared to $6,501,000 last
year as a result of higher funds employed. Average funds employed
were 60% higher at $229 million this
year compared to $143 million last
year.
Commenting on the first quarter's results, Mr. Tom Henderson, CEO, noted: "We had our first
full quarter that included the results of the two acquisitions we
made in the last six months of 2017. While we had expected top line
improvement, we did not expect any significant year-over-year
improvement in earnings this quarter. Nonetheless, I am quite
confident we are on track to produce improved results later in this
current fiscal year provided we continue to maintain quality assets
on our balance sheet. Our assets have grown significantly over the
last year due to very strong internal growth and from the
acquisitions of BondIt Media Capital and CapX Partners. We are in
the process of finalizing a new bank line that will provide us with
most of the funding we will need to keep growing over the next
three years."
As noted in the Company's press release of April 26, 2018, a regular quarterly dividend of
$0.09 per share was declared payable
June 1, 2018 to shareholders of
record at the close of business May 17,
2018.
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, to film and media finance.
For 40 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 shareholders'
net earnings before stock-based compensation, business acquisition
expenses (transaction and integration coats and amortization of
intangible assets) and restructuring expenses. 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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2018
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2017
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$'000
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$'000
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Shareholders' net
earnings
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1,216
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1,226
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Adjustments, net of
tax:
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Stock-based
compensation
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22
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69
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Business acquisition
expenses
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203
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67
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Adjusted net
earnings
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1,441
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1,362
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2) Book value per share – book value is total shareholders'
equity and is the same as the net asset value of the Company
(calculated as total assets minus total liabilities) less
non-controlling interests. Book value per share is the book 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.