Accord Announces Fourth Quarter and Fiscal 2008 Earnings



    TORONTO, Feb. 24 /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, 2008. 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

                                 2008         2007         2008         2007
                                 ----         ----         ----         ----
    Factoring
     volume (millions)    $       429  $       376  $     1,596  $     1,497

    Revenue               $ 6,753,267  $ 7,770,561  $28,059,765  $28,345,999

    Net earnings          $   461,810  $ 2,059,228  $ 5,041,161  $ 6,286,965

    Earnings per share
      Basic               $      0.05  $      0.22  $      0.53  $      0.66
      Diluted             $      0.05  $      0.22  $      0.53  $      0.66
    Weighted average
     number of shares
      Basic                 9,453,548    9,471,727    9,490,837    9,463,231
      Diluted               9,469,603    9,574,470    9,530,932    9,575,387

    -------------------------------------------------------------------------
    

    Net earnings for 2008 declined by 20% to $5,041,000 compared to last
year's $6,287,000, while diluted earnings per share decreased to 53 cents
compared to 66 cents last year. The Company's return on average shareholders'
equity was 11.7% in 2008 compared to 16.0% in 2007. Net earnings declined as a
result of a significantly higher provision for credit and loan losses,
although higher G&A expense and lower revenue contributed somewhat to the
decline.
    Factoring volume in 2008 rose by 7% to a record $1,596 million compared
to $1,497 million in 2007. Revenue declined by 1% to $28,060,000 in 2008
compared with $28,346,000 last year. Revenue decreased despite the rise in
volume as factoring commissions declined due to reduced factoring yields, in
part as a result of lower interest rates.
    Commenting on 2008's results, Ken Hitzig, the Company's President, noted
that "2008 turned out to be a year of severe economic challenges and these
certainly had an impact on Accord. The Company's earnings for the first nine
months of 2008 were actually ahead of the same period the previous year, but
we were unable to maintain our momentum and the quality of our portfolio
deteriorated by year-end necessitating write-offs and higher allowances for
losses".
    Net earnings for the fourth quarter of 2008 declined to $462,000 compared
to $2,059,000 last year as a result of a higher provision for credit and loan
losses and lower revenue. Diluted earnings per share decreased to 5 cents
compared to 22 cents in the fourth quarter of 2007.
    Factoring volume in the fourth quarter rose by 14% to a record $429
million compared with $376 million last year. Revenue, however, declined by
13% to $6,753,000 compared to $7,771,000 due to lower factoring yields, which
were particularly impacted by substantially lower interest rates in the latest
quarter.
    Mr. Hitzig added "Many larger industry players are having trouble
securing funding and many smaller finance companies have exited the industry.
Accord, with its substantial capital and borrowing capacity, is in an ideal
position to capitalize on the market opportunities presented at this time".

    %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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