TORONTO, July 25, 2018 /CNW/ - Accord Financial Corp. (TSX
– ACD) today released its financial results for the three and six
months ended June 30, 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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|
|
|
|
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Three Months Ended
June 30
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Six Months
Ended June 30
|
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2018
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2017
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2018
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2017
|
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$
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$
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$
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$
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Average funds
employed (millions)
|
255
|
167
|
242
|
155
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Revenue
(000's)
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10,823
|
6,603
|
20,856
|
13,104
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Net earnings
attributable to shareholders (000's)
|
2,363
|
369
|
3,580
|
1,594
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Adjusted net
earnings (000's) (note)
|
2,674
|
573
|
4,115
|
1,935
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Earnings per
common share (basic and diluted)
|
0.28
|
0.04
|
0.43
|
0.19
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Adjusted earnings
per common share (basic and diluted)
|
0.32
|
0.07
|
0.50
|
0.23
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Book value per
share (June 30)
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|
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$
9.68
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$
8.99
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Net earnings attributable to shareholders ("shareholders' net
earnings") rose by $1,994,000 or 540%
to $2,363,000 in the second quarter
of 2018 compared to $369,000 earned
last year. Shareholders' net earnings rose mainly as a result of
higher revenue and a lower provision for losses. Earnings per
common share ("EPS") rose 600% to 28
cents compared to 4 cents last
year. Adjusted net earnings rose 367% to $2,674,000 from the $573,000 earned in the second quarter of 2017.
Adjusted EPS increased to 32 cents
compared to 7 cents in last year's
second quarter.
Revenue rose by 64% to a quarterly record $10,823,000 in the first quarter compared to
$6,603,000 last year mainly as a
result of higher funds employed. Average funds employed were 53%
higher at $255 million in the current
quarter compared to $167 million last
year. Funds employed at June 30, 2018
were at a record high $262
million.
Shareholders' net earnings in the first half of 2018 increased
by $1,986,000 or 124% to $3,580,000 compared to $1,594,000 in 2017. Shareholders' net earnings
rose mainly as a result of higher revenue and a lower provision for
losses. EPS increased by 126% to 43
cents compared to 19 cents
last year. Adjusted net earnings increased by $2,180,000 or 113% to $4,115,000 compared to $1,935,000 earned in the first half of 2017.
Adjusted EPS rose 117% to 50 cents
compared to 23 cents earned last
year.
Revenue rose 59% to a half year record $20,856,000 in 2018 compared to $13,104,000 last year mainly as a result of
higher funds employed. Average funds employed in the first half of
2018 were 56% higher at $242
million.
Commenting on 2018's results, the Company's President and CEO,
Mr. Tom Henderson, stated: "The
vastly improved earnings for the second quarter and first half are
beginning to reflect the growth in our business that saw average
funds employed increase by over 50% compared to the same period
last year. Organic growth, as well as the investments in Accord
CapX LLC and BondIt Media Capital, was responsible for the
significant rise in funds employed. Both CapX and BondIt are now
ramping up and have been instrumental in our growth this year.
Happily, the rest of Accord is following suit and all five of our
lending units have grown in 2018. Needless to say, I am pleased
with our bottom line results, which provides encouraging
affirmation of the investments we've made, and a preview of our
earnings potential as we leverage the strong platform we've
built."
Mr. Henderson added "To help finance our asset growth we expect
to close on a new bank facility shortly. The total facility
is for $367 million, including an
accordion feature, and is with a syndicate of six banks. We
are proud that our bankers have seen fit to generously raise their
exposure to our company."
The Company's Board of Directors today declared a quarterly
dividend of 9 cents per common share,
payable September 4, 2018 to
shareholders of record August 15,
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 costs
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 June 30
|
Six
Months Ended June 30
|
|
2018
|
2017
|
2018
|
2017
|
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$'000
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$'000
|
$'000
|
$'000
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Shareholders' net
earnings:
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2,363
|
369
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3,580
|
1,594
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Adjustments, net of
tax:
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|
|
|
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Stock-based
compensation
|
113
|
27
|
134
|
96
|
|
Business acquisition
expenses
|
198
|
67
|
401
|
135
|
|
Restructuring
expenses
|
–
|
110
|
–
|
110
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Adjusted net
earnings
|
2,674
|
573
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4,115
|
1,935
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2) Book value per share – book value is shareholders' equity and
is the same as the net asset value (calculated as total assets
minus total liabilities) of the Company 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.