TORONTO, Feb. 21, 2012 /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, 2011. 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||Year Ended|
|December 31||December 31|
|Factoring volume (millions)||$ 453||$ 532||$ 1,914||$ 2,120|
|Revenue||$ 7,370,759||$ 8,216,934||$ 28,408,075||$ 31,406,451|
|Net earnings||$ 2,344,328||$ 2,959,655||$ 7,584,602||$ 8,242,742|
|Basic and diluted earnings per common share||$ 0.27||$ 0.32||$ 0.85||$ 0.88|
|Basic and diluted weighted average number of shares||8,720,135||9,325,878||8,894,246||9,387,723|
Net earnings for 2011 declined 8% to $7,585,000 from 2010's record $8,243,000 as a result of lower revenue. Earnings per share fell 3% to 85 cents from a record 88 cents in 2010. The Company's return on average shareholders' equity was 16.8% in 2011 compared with 18.2% in 2010.
Factoring volume in 2011 fell by 10% to $1.91 billion from a record $2.12 billion the previous year. Revenue also declined by 10% to $28,408,000 from a record $31,406,000 in 2010. Revenue decreased on a combination of lower factoring volume and somewhat lower yields.
Commenting on 2011's results, Tom Henderson, the Company's President and CEO stated: "In many respects we pulled in some half decent numbers in 2011. However, the decline in volume and revenue meant we were unable to meet last year's numbers. Lower expenses in large part offset the decrease in revenue. Combined with the success of the Company's issuer bids, earnings per share of 85 cents were only 3% below 2010's record".
Net earnings for the fourth quarter of 2011 were 21% below the record quarterly earnings achieved in 2010. They declined to $2,344,000 compared to $2,960,000 in 2010 as a result of lower revenue. Earnings per share decreased by 16% to 27 cents compared to 32 cents in the fourth quarter of 2010.
Factoring volume in the fourth quarter fell to $453 million compared with $532 million the prior year. Revenue decreased by 10% to $7,371,000 compared to $8,217,000 in the 2010 fourth quarter for similar reasons as those noted above for 2011.
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