Accord Announces Fourth Quarter and Fiscal 2007 Earnings



    TORONTO, Feb. 21 /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, 2007. The financial figures presented in this release
are reported in Canadian dollars and have been prepared in accordance with
Canadian generally accepted accounting principles.

    
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                         SUMMARY OF FINANCIAL RESULTS
                         ----------------------------

                              Three Months Ended             Year Ended
                                    December 31              December 31
                                 2007         2006         2007         2006
                                 ----         ----         ----         ----

    Factoring volume
     (millions)           $       376  $       357  $     1,497  $     1,417

    Revenue               $ 7,770,561  $ 7,647,019  $28,345,999  $28,863,716

    Net earnings          $ 2,059,228  $ 2,460,421  $ 6,286,965  $ 7,116,999

    Earnings per share
      Basic               $      0.22  $      0.26  $      0.66  $      0.73
      Diluted             $      0.22  $      0.25  $      0.66  $      0.72

    Weighted average
     number of shares
      Basic                 9,471,727    9,636,026    9,463,231    9,802,730
      Diluted               9,574,470    9,752,857    9,575,387    9,935,873
    -------------------------------------------------------------------------
    

    Net earnings for 2007 declined by 12% to $6,287,000 compared to last
year's $7,117,000, while diluted earnings per share decreased to 66 cents
compared to 72 cents last year. The Company's return on average shareholders'
equity was 16.0% in 2007 compared to 18.3% in 2006. Net earnings declined due
to lower revenue, in part due to the weaker U.S. dollar, and a higher interest
expense and provision for credit and loan losses.
    Factoring volume in 2007 rose by 6% to $1,497 million compared to
$1,417 million in 2006. Revenue in 2007 declined by 2% to $28,346,000 compared
with $28,864,000 last year. Revenue decreased despite the rise in volume as
yields declined somewhat after rising in 2006, partly due to competitive
pressures, funding larger deals at lower rates, and reduced miscellaneous,
non-recurring fees.
    Commenting on 2007's results, Ken Hitzig, the Company's President, noted
that "the Company saw an unprecedented 30% rise in gross factored receivables
and loans in 2007. These rose to a record $106 million at Dec. 31, 2007, which
required that we prudently set aside higher allowances for potential losses.
In addition, we also recorded higher write-offs in the second half of 2007.
These developments, together with an accelerated depreciation in the U.S.
dollar, had a dampening effect on the Company's drive toward higher earnings.
At the same time, I hasten to add that, thanks to the diligent efforts of our
employees, officers, and directors, the over-all picture for 2007 presented
positive signs as we prepared to enter 2008 with record levels of gross
factored receivables and loans".
    Net earnings for the fourth quarter of 2007 declined by 16% to $2,059,000
compared to $2,460,000 last year as a result of a higher provision for credit
and loan losses and interest expense. Diluted earnings per share decreased to
22 cents compared to 25 cents in the fourth quarter of 2006. Factoring volume
in the fourth quarter rose by 5% to $376 million compared with $357 million
last year. Revenue increased by 2% to $7,771,000 compared to $7,647,000.

    %SEDAR: 00001979E




For further information:

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


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