Fourth Quarter and 2018 Earnings up 71%
and 72%, respectively.
TORONTO, Feb. 27, 2019 /CNW/ - Accord Financial Corp. (TSX
– ACD) today released its financial results for the fourth quarter
and year ended December 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.
|
SUMMARY OF
FINANCIAL RESULTS
|
|
|
|
|
Three
Months Ended Dec. 31
|
Year Ended Dec. 31
|
|
2018
|
2017
|
2018
|
2017
|
|
$
|
$
|
$
|
$
|
Average funds
employed (millions)
|
317
|
226
|
271
|
181
|
Revenue
(000's)
|
12,951
|
9,935
|
46,927
|
31,409
|
Net earnings
attributable to shareholders (000's)
|
4,161
|
2,433
|
10,356
|
6,010
|
Adjusted net
earnings (000's) (note)
|
3,883
|
2,903
|
10,840
|
7,005
|
Earnings per
common share (basic and diluted)
|
0.50
|
0.29
|
1.24
|
0.72
|
Adjusted earnings
per common share (basic and diluted)
|
0.46
|
0.35
|
1.30
|
0.84
|
Book value per
share (December 31)
|
|
|
$
10.66
|
$
9.20
|
The Company reported record year-over-year growth in funds
employed, revenue and net earnings. "We just closed the books on
our strongest year since founding in 1978. Total funds employed,
revenue and net earnings marked all-time highs." said President and
CEO Simon Hitzig adding "These
results cap off a five-year careful transformation from our roots
as a factoring company into a broad-based commercial finance
company, led by the most dynamic team in North America.
Revenue rose by 49% to $46,927,000
this year compared to $31,409,000
last year as a result of higher funds employed.
Net earnings attributable to shareholders ("shareholders' net
earnings") in 2018 was a record $10,356,000 compared with $6,010,000 in 2017 mainly as a result of higher
revenue. Earnings per common share ("EPS") was a record
$1.24, 72% higher than last year.
Adjusted net earnings was also a record $10,840,000 in 2018 compared to $7,005,000 in 2017. Adjusted EPS rose to a record
to $1.30, 55% higher than the
previous year. Book value per share was a record $10.66 at year-end.
Revenue rose by 30% to a record $12,951,000 in the fourth quarter of 2018
compared to $9,935,000 last year.
Shareholders' net earnings for the fourth quarter of 2018
increased by 71% to $4,161,000
compared to $2,433,000 in 2017. Net
earnings rose mainly as a result of a higher revenue, lower
provision for losses and a recovery of business acquisition
expenses. EPS increased by 72% to 50
cents compared to 29 cents
last year. Adjusted net earnings was $3,883,000 compared to the $2,903,000 earned in the fourth quarter of 2017.
Adjusted EPS rose 31% to 46 cents
compared to the 35 cents earned in
last year's fourth quarter.
Commenting on 2018's results Mr. Hitzig, stated: "This was our
first full calendar year with contribution from both BondIt Media
Capital and CapX Partners, which joined the Accord family in the
second half of 2017. We couldn't be happier with the strategic fit
and financial performance of both businesses, now key drivers of
growth. Our three other lending units also delivered outstanding
growth. To finance Accord's growth, during the year, our syndicate
of banks delivered strong support via a larger credit facility,
while a new group of investors embraced our story and took up our
convertible debenture offering, giving us addition capital to grow
the portfolio."
About Accord Financial Corp.
Accord Financial Corp.,
founded in 1978, is one of North
America's leading independent finance companies. Serving
clients throughout the United
States and Canada, 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 41 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 (basic
and diluted) is adjusted net earnings divided by the weighted
average number of common shares outstanding (basic and diluted) 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 Dec. 31
|
Year
Ended Dec. 31
|
|
2018
|
2017
|
2018
|
2017
|
|
$'000
|
$'000
|
$'000
|
$'000
|
Shareholders' net
earnings:
|
4,161
|
2,433
|
10,356
|
6,010
|
Adjustments, net of
tax:
|
|
|
|
|
Stock-based
compensation
|
64
|
45
|
233
|
188
|
Business acquisition
expenses
|
(342)
|
413
|
251
|
685
|
Restructuring
expenses
|
-
|
12
|
-
|
122
|
Adjusted net
earnings
|
3,883
|
2,903
|
10,840
|
7,005
|
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.