TORONTO, May 4, 2022
/CNW/ - Accord Financial Corp. (TSX: ACD) today released its
financial results for the quarter ended March 31, 2022. 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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2022
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2021
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$
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$
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|
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Average funds
employed (millions)
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457
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358
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Revenue
(000's)
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16,178
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13,480
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Net earnings
attributable to shareholders (000's)
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3,138
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2,585
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Adjusted net
earnings (000's) (note)
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3,195
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2,683
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Earnings per common
share (basic and diluted)
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0.37
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0.30
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Adjusted earnings
per common share (basic and diluted)
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0.37
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0.31
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Return on average
equity (as a percentage)
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12.7
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11.5
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Book value per share
(March 31)
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$
11.75
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$
10.70
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Commenting on the financial results, the Company's President and
CEO, Mr. Simon Hitzig, stated:
"Seven strong quarters in a row have driven shareholders' equity
above the $100 million mark for the
first time, closing the quarter at an all-time high book value per
common share of $11.75. The growing
scale of the Company has boosted return on equity to 12.7% this
quarter, headed toward the mid-teens, as our strategy gains
traction."
Net earnings attributable to shareholders ("shareholders' net
earnings") reached $3,138,000, 21%
higher than the $2,585,000 earned in
the same period last year. Adjusted net earnings were $3,195,000 compared to $2,683,000 in the first quarter of 2021. The
increase in earnings was driven by revenue, which grew 20% to
$16,178,000 in the first quarter of
2022 compared to $13,480,000 last
year.
"Accord continues to generate strong year-over-year growth in
its portfolio, revenue and earnings. Average funds employed in the
first quarter rose to $457 million,
up 28% over the first quarter of 2021. Revenue followed suit,
driving earnings per common share up 23% to 37 cents, a first quarter record for the
company," added Mr. Hitzig.
"Steady year-over-year growth brings trailing twelve months EPS
up to $1.46," said Mr. Hitzig,
adding, "The upcoming June
1st dividend of $0.075 per share is the second in a row at this
level, 50% higher than $0.05 per
share paid quarterly throughout 2021. With performance tracking
well above pre-pandemic growth levels, we're pleased to share this
success with our shareholders through a sustainable dividend,
aiming to grow it as earnings grow."
Looking ahead, Mr. Hitzig said, "Accord is clearly at an
inflection point. Two themes are set to propel Accord to the next
phase of financial performance. First, our streamlined operating
platform is rounding into shape, ready to scale Accord to the next
level. Second, over the past several years we've strengthened the
Company's balance sheet and diversified our range of funding
sources. With our conservative debt to equity profile, we have
ample dry powder to finance the next phase of growth. And with the
platform and balance sheet in place, the next phase of top line
growth will be more profitable than the last."
About Accord Financial
Corp.
Accord Financial is North
America's most dynamic commercial finance company providing
fast, versatile financing solutions for companies in transition
including factoring, inventory finance, equipment leasing, trade
finance and film/media finance. By leveraging our unique
combination of financial strength, deep experience and independent
thinking, we craft winning financial solutions for small and
medium-sized businesses, simply delivered, so our clients can
thrive. For 44 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 (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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2022
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2021
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$'000
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$'000
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Shareholders' net
earnings
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3,138
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2,585
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Adjustments, net of
tax:
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Stock-based compensation
|
26
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–
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Business acquisition expenses
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21
|
51
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Restructuring expenses
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10
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47
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Adjusted net
earnings
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3,195
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2,683
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2) Return on average equity – this is a
profitability measure that presents shareholders' net earnings as
an annualized percentage of the average shareholders' equity
employed in the period to earn the income. The Company includes all
components of shareholders' equity, as shown on the Company's
balance sheet, calculated on a month-by-month basis to calculate
the average thereof.
|
Three Months Ended March 31
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2022
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2021
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$'000
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$'000
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Net earnings
attributable to shareholders
|
3,138
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2,585
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Weighted average
shareholders' equity (note)
|
100,043
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90,941
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Return on average
equity (annualized)
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12.7%
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11.5%
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Note: weighted
average shareholders' equity is the average shareholder's equity
calculated for each month of the period, then totalled up and
divided by 12
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3) 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 or shareholders' equity divided by the number of common
shares outstanding as of a particular date.
4) 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.