TORONTO, April 30, 2019 /CNW/ - Accord Financial
Corp. (TSX – ACD) today released its financial results for the
quarter ended March 31,
2019. 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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2019
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2018
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$
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$
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Average funds
employed (millions)
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347
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229
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Revenue
(000's)
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12,588
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10,033
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Net earnings
attributable to shareholders (000's)
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1,643
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1,216
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Adjusted net
earnings (000's) (note)
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1,816
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1,441
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Earnings per
common share (basic and diluted)
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0.19
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0.15
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Adjusted earnings
per common share (basic and diluted)
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0.22
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0.17
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Book value per
share (Mar. 31)
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$
10.65
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$
9.38
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Net earnings attributable to shareholders ("shareholders' net
earnings") increased by 35% to $1,643,000 in the first quarter of 2019 compared
to the $1,216,000 earned last year.
Shareholders' net earnings increased as a result of higher revenue
and a lower provision for losses. Earnings per common share ("EPS")
rose to 19 cents compared to
15 cents in the first quarter of last
year. Adjusted net earnings rose to $1,816,000 from the $1,441,000 earned in the first quarter of 2018.
Adjusted EPS were 22 cents compared
to 17 cents in last year's first
quarter. Revenue rose by 25% to $12,588,000 in the first quarter compared to
$10,033,000 last year as a result of
higher funds employed. Average funds employed were 52% higher at
$347 million this year compared to
$229 million last year.
Commenting on the first quarter's results, Mr. Simon Hitzig, CEO, noted: "This quarter marked
the ninth straight quarter of strong portfolio growth, with total
funds employed reaching $376 million
at March 31. Revenue and earnings per
share continue to follow suit, with both measures in the first
quarter beating the same period last year by 25% and 27%,
respectively. Trailing twelve months adjusted EPS clocked in
at $1.34, an all-time high. Our stock
closed the quarter at $10.04 per
share, valued at 7.5 times trailing adjusted EPS."
At the Company's Board of Directors ("Board") meeting held
today, the Board declared a regular quarterly dividend of
$0.09 per common share, payable
June 3, 2019 to shareholders of
record at the close of business May 17,
2019.
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 receivables 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:
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Three
Months Ended March 31
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2019
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2018
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$'000
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$'000
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Shareholders' net
earnings
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1,643
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1,216
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Adjustments, net of
tax:
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Stock-based
compensation
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42
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22
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Business
acquisition expenses
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131
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203
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Adjusted net
earnings
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1,816
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1,441
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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.