TORONTO, Oct. 30, 2019 /CNW/ - Accord Financial Corp. (TSX
– ACD) today released its financial results for the three and nine
months ended September 30,
2019. 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
|
|
2019
|
2018
|
2019
|
2018
|
|
$
|
$
|
$
|
$
|
Average funds
employed (millions)
|
383
|
283
|
373
|
256
|
Revenue
(000's)
|
15,299
|
13,120
|
41,878
|
33,976
|
Earnings before
income tax (000's)
|
4,063
|
3,105
|
8,911
|
7,104
|
Net earnings
attributable to shareholders (000's)
|
3,237
|
2,616
|
7,102
|
6,195
|
Adjusted net
earnings (000's) (note)
|
2,862
|
2,842
|
7,075
|
6,957
|
Earnings per
common share (basic and diluted)
|
0.38
|
0.31
|
0.84
|
0.75
|
Adjusted earnings
per common share (basic and diluted)
|
0.34
|
0.34
|
0.84
|
0.84
|
Book value per
share (September 30)
|
|
|
$
11.07
|
$
9.82
|
Revenue increased by 17% to a quarterly record $15,299,000 in the third quarter compared to
$13,120,000 last year as a result of
higher funds employed. Average funds employed were 35% higher at
$383 million in the current quarter
compared to $283 million last year.
Funds employed at September 30, 2019
were $385 million.
Net earnings attributable to shareholders ("shareholders' net
earnings") rose by 24% or $621,000 to
$3,237,000 in the third quarter of
2019 compared to the $2,616,000
earned last year. Shareholders' net earnings rose as a result of a
higher net revenue (revenue less interest expense), a lower
provision for losses and reduced business acquisition expenses.
Earnings per common share ("EPS") were 38
cents compared to 31 cents
last year. Adjusted net earnings increased to $2,862,000 from the $2,842,000 earned in the third quarter of 2018.
Adjusted EPS remained unchanged at 34
cents in the current quarter compared to last year.
Revenue rose by 23% to a nine months record $41,878,000 in 2019 compared to $33,976,000 last year mainly as a result of
higher funds employed. Average funds employed in the first nine
months of 2019 increased by 46% to $373
million.
Shareholders' net earnings in the first nine months of 2019
increased by 15% or $907,000 to
$7,102,000 compared to $6,195,000 in 2018. Shareholders' net earnings
rose for reasons noted above. EPS increased by 12% to
84 cents compared to 75 cents last year. Adjusted net earnings
increased by $118,000 to $7,075,000 compared to the $6,957,000 earned in the first nine months of
2018. Adjusted EPS remained unchanged at 84
cents in the first nine months of 2019 compared to last
year.
Commenting on 2019's results, the Company's President and CEO,
Mr. Simon Hitzig, stated: "Accord's
growth path continued through the third quarter, with the loan
portfolio, revenue and net earnings showing strong year-over-year
growth. First nine months earnings per share of 84 cents drove book value per share to a record
high of $11.07. During the quarter,
Accord's financial position was strengthened by exercising the
accordion feature in its bank facility, which increased the
Company's facility by $75 million to
$367 million. In addition, Concentra
Bank invested $5 million in a private
convertible debenture issue as part of an exciting strategic
alliance. Accord's capacity for portfolio growth has never been
stronger."
The Company's Board of Directors today declared a regular
quarterly dividend of 9 cents per
common share, payable December 2,
2019 to shareholders of record November 15, 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, including: factoring, inventory finance, equipment
finance, trade finance and film/media finance. For 41 years, Accord
has simplified access to capital, helping businesses seize
opportunity and drive success.
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 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 Sept. 30
|
Nine
Months Ended Sept. 30
|
|
2019
|
2018
|
2019
|
2018
|
|
$'000
|
$'000
|
$'000
|
$'000
|
Shareholders' net
earnings:
|
3,237
|
2,616
|
7,102
|
6,195
|
Adjustments, net of
tax:
|
|
|
|
|
Stock-based
compensation
|
48
|
34
|
132
|
169
|
Business acquisition
expenses
|
(423)
|
192
|
(159)
|
593
|
Adjusted net
earnings
|
2,862
|
2,842
|
7,075
|
6,957
|
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.