TORONTO, July 25, 2013 /CNW/ - Accord Financial Corp. (TSX - ACD), a leading North American provider of factoring and other asset-based financial services to businesses, today released its interim unaudited consolidated financial results for the three and six months ended June 30, 2013. The financial results 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 June 30||Six Months Ended June 30|
|Factoring volume (millions)||$ 431||$ 443||$ 879||$ 880|
|Revenue||$ 6,388,014||$ 6,322,501||$ 12,335,231||$ 12,002,125|
|Net earnings||$ 1,267,009||$ 1,243,038||$ 2,513,037||$ 2,126,254|
| Basic and diluted earnings
per common share
|$ 0.15||$ 0.15||$ 0.31||$ 0.25|
| Basic and diluted weighted
average number of shares
Net earnings for the second quarter of 2013 rose 2% to $1,267,009 compared to $1,243,038 last year. Earnings rose mainly due to a lower provision for credit and loan losses and, to a lesser extent, higher revenue. Earnings per share ("EPS") were 15 cents, the same as last year. Net earnings in the current quarter were impacted by a significant stock-based compensation expense related to the Company's outstanding share appreciation rights ("SARs"). This non-operating expense resulted from the increase in Accord's share price on the Toronto Stock Exchange in the quarter. Excluding the non-operating SARs expense of $241,000 (2012 - recovery of $24,000), net earnings would have risen 17% to $1,430,000 in the second quarter compared to $1,226,000 last year. EPS would have been 17 cents compared to 14 cents last year. Factoring volume declined 3% to $431 million in the second quarter compared to $443 million last year on lower non-recourse volume. Revenue increased to $6,388,014 compared to $6,322,501 last year on higher funds employed and improved yields in our U.S. operations.
Net earnings for the first half of 2013 rose 18% to $2,513,037 compared with $2,126,254 in 2012 for reasons noted above. EPS were 31 cents compared to 25 cents last year. Excluding the non-operating SARs expense of $270,000 (2012 - $31,000), net earnings would have increased 26% to $2,696,000 in the first half compared to $2,147,000 last year, while EPS would have been 33 cents compared to 25 cents last year. Factoring volume for the first half of 2013 was $879 million compared to $880 million last year on lower non-recourse volume. Revenue increased 3% to $12,335,231 compared to $12,002,125 last year for reasons similar to those noted above.
Commenting on the second quarter and first half 2013 results, Mr. Tom Henderson, the Company's President and CEO, stated: "Our financial results for the first half of 2013 were favorably impacted by the earnings of our U.S. finance business which started the year in a relatively strong position as a result of very good new business activity in 2012. I am also pleased to report that the condition of our portfolio at all three operating units still looks sound and our processes and procedures are proving effective in maintaining the quality of our portfolio."
The Company's Board of Directors today declared a regular quarterly dividend of $0.08 per common share, payable September 3, 2013 to shareholders of record August 15, 2013.
SOURCE: Accord Financial Corp.
For further information:
Vice President, Chief Financial Officer
Accord Financial Corp.
77 Bloor Street West, Suite 1803
Toronto, ON M5S 1M2
(416) 961-0304 Ext. 207