Accord Announces Fourth Quarter and Fiscal 2012 Earnings

TORONTO, Feb. 19, 2013 /CNW/ - Accord Financial Corp. (TSX - ACD), a leading North American provider of factoring and other asset-based financial services to businesses today announced its financial results for the fourth quarter and year ended December 31, 2012. 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
December 31
  Year Ended 
December 31
       
        2012 2011 2012 2011
                              
Factoring volume (millions)       $             511 $            453   $          1,865   $         1,914
               
Revenue           $   7,139,431   $  7,370,759   $ 25,890,527 $ 28,408,075
               
Net earnings       $   2,524,965      $  2,344,328 $   6,376,597   $  7,584,602
               
Basic and diluted earnings
       per common share
       $           0.31      $           0.27   $            0.76   $           0.85
               
Basic and diluted weighted
       average number of shares
        8,221,498    8,720,135     8,403,725     8,894,246
               

Net earnings for 2012 declined 16% to $6,377,000 compared to $7,585,000 last year as a result of lower revenue. Earnings per share fell 11% to 76 cents from 85 cents in 2011.  The Company's return on average shareholders' equity was 13.8% in 2012 compared with 16.8% in 2011.

Factoring volume in 2012 fell by 3% to $1.86 billion from $1.91 billion the previous year. Revenue declined by 9% to $25,891,000 from $28,408,000 in 2011. Revenue decreased on a combination of lower non-recourse factoring volume and somewhat lower yields in our recourse factoring operation.

Net earnings for the fourth quarter of 2012 rose 8% to $2,525,000 compared to $2,344,000 last year on a larger recovery of credit and loan losses. Earnings per share rose by 15% to 31 cents compared to 27 cents in the fourth quarter of 2011.

Factoring volume for the fourth quarter of 2012 increased 13% to $511 million compared with $453 million the prior year. Revenue decreased by 3% to $7,139,000 compared to $7,371,000 in the fourth quarter of 2011 on lower non-recourse volume.

Commenting on 2012's results, Tom Henderson, the Company's President and CEO stated: "I am pleased the way 2012 turned out. We finished 2012 on a high note unlike 2011 which saw declines in top line revenues at our U.S. business and our Canadian non-recourse factoring business. Our recourse factoring operation saw record funds employed in the last few months of 2012 resulting in improved operating results, although our non-recourse factoring operation had a challenging year. We are cautiously optimistic for 2013".

SOURCE: Accord Financial Corp.

For further information:

Stuart Adair
Vice President, Chief Financial Officer
Accord Financial Corp.
77 Bloor Street West, 18th floor
Toronto, Ontario, Canada     M5S 1M2
(416) 961-0304 Ext. 207
sadair@accordfinancial.com