Third Quarter and First Nine Months Earnings
up 32% and 73%, respectively. Regular Quarterly Dividend
Announced.
TORONTO, Oct. 29, 2018 /CNW/ - Accord Financial Corp. (TSX
– ACD) today released its financial results for the three and nine
months ended September 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.
SUMMARY OF
FINANCIAL RESULTS
|
|
Three Months Ended
Sept. 30
|
Nine Months
Ended Sept. 30
|
|
2018
|
2017
|
2018
|
2017
|
|
$
|
$
|
$
|
$
|
Average funds
employed (millions)
|
283
|
189
|
256
|
166
|
Revenue
(000's)
|
13,120
|
8,370
|
33,976
|
21,474
|
Net earnings
attributable to shareholders (000's)
|
2,616
|
1,983
|
6,195
|
3,577
|
Adjusted net
earnings (000's) (note)
|
2,842
|
2,166
|
6,957
|
4,102
|
Earnings per
common share (basic and diluted)
|
0.31
|
0.24
|
0.75
|
0.43
|
Adjusted earnings
per common share (basic and diluted)
|
0.34
|
0.26
|
0.84
|
0.49
|
Book value per
share (September 30)
|
|
|
$
9.82
|
$
8.98
|
|
|
|
|
|
|
Net earnings attributable to shareholders ("shareholders' net
earnings") rose by $633,000 or 32% to
$2,616,000 in the third quarter of
2018 compared to $1,983,000 earned
last year. Shareholders' net earnings rose mainly as a result of
higher revenue. Basic and diluted earnings per common share ("EPS")
rose by 29% to 31 cents compared to
24 cents last year. Adjusted net
earnings rose by 31% to $2,842,000
from the $2,166,000 earned in the
third quarter of 2017. Adjusted basic and diluted EPS increased to
34 cents compared to 26 cents in last year's third quarter.
Revenue rose by 57% to a quarterly record $13,120,000 in the third quarter compared to
$8,370,000 last year mainly as a
result of higher funds employed. Average funds employed were 50%
higher at $283 million in the current
quarter compared to $189 million last
year. Funds employed at September 30,
2018 were at a record high $304
million.
Shareholders' net earnings in the first nine months of 2018
increased by $2,618,000 or 73% to
$6,195,000 compared to $3,577,000 in 2017. Shareholders' net earnings
rose mainly as a result of higher revenue. Basic and diluted EPS
increased by 74% to 75 cents compared
to 43 cents last year. Adjusted net
earnings increased by $2,855,000 or
70% to $6,957,000 compared to
$4,102,000 earned in the first nine
months of 2017. Adjusted basic and diluted EPS rose 71% to
84 cents compared to 49 cents earned last year.
Revenue rose by 58% to a nine month record $33,976,000 in 2018 compared to $21,474,000 last year mainly as a result of
higher funds employed. Average funds employed in the first nine
months of 2018 were 54% higher at $256
million.
Commenting on the Company's results, President and CEO, Mr.
Simon Hitzig, stated: "This quarter
marked the seventh straight quarter of strong portfolio growth,
with total funds employed topping $300
million when the books closed on September 30th. This growth is now driving
revenue to record levels, with the first nine months delivering
adjusted earnings of 84 cents per
share, with both revenue and shareholders' net earnings for the
nine months exceeding those for fiscal 2017. The strong finish to
the quarter sets up a strong start to the fourth quarter. It's now
been fifteen months since acquiring a 51% stake in BondIt Media
Capital, and almost twelve months since acquiring 90% of CapX
Partners. The addition of these two outstanding companies
diversified our product range and solidified our market presence
throughout the United States and
Canada. Within this short period
of time I'm pleased to report that both businesses are contributing
nicely to Accord's success."
Mr. Hitzig added: "To set the stage for continued growth, we
extended and increased our main bank facility, which now totals
$367 million, including an accordion
feature. We are proud that our syndicate of six banks provided
strong support for our growth plan."
The Company's Board of Directors today declared a quarterly
dividend of 9 cents per common share,
payable December 3, 2018 to
shareholders of record November 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.
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:
|
Three Months
Ended Sept. 30
|
Nine
Months Ended Sept. 30
|
|
2018
|
2017
|
2018
|
2017
|
|
$'000
|
$'000
|
$'000
|
$'000
|
Shareholders' net
earnings:
|
2,616
|
1,983
|
6,195
|
3,577
|
Adjustments, net of
tax:
|
|
|
|
|
|
Stock-based
compensation
|
34
|
47
|
169
|
143
|
|
Business acquisition
expenses
|
192
|
136
|
593
|
272
|
|
Restructuring
expenses
|
–
|
–
|
–
|
110
|
Adjusted net
earnings
|
2,842
|
2,166
|
6,957
|
4,102
|
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.