TORONTO, July 24, 2012 /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, 2012. 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)||$||443||$||455||$||880||$||937|
| Basic and diluted earnings
|per common share|
| Basic and diluted weighted
|average number of shares||8,515,898||8,948,580||8,525,571||8,975,460|
Net earnings for the second quarter of 2012 declined 11% to $1,243,038 compared to $1,393,639 last year. Earnings declined mainly due to lower revenue and, to a lesser extent, a higher provision for credit and loan losses. Earnings per share were 15 cents compared to 16 cents last year. Factoring volume declined 3% to $443 million compared to $455 million last year largely due to lower non-recourse volume. Revenue decreased 7% to $6,322,501 compared to $6,828,201 last year mainly due to lower non-recourse volume, and somewhat lower average funds employed and yields thereon.
Net earnings for the first six months of 2012 declined 29% to $2,126,254 compared with $2,992,107 in 2011 for similar reasons to those noted above. Earnings per share were 25 cents compared to 33 cents last year. Factoring volume for the first half of 2012 declined 6% to $880 million largely as a result of lower non-recourse volume. Revenue decreased 12% to $12,002,125 compared to $13,695,478 last year for reasons noted above.
Commenting on the second quarter and first half 2012 results, Mr. Tom Henderson, the Company's President and CEO, stated: "Our earnings are weaker compared to last year but we expect that the second half of 2012 will be better than the first half. The earnings for the quarter just ended do not yet reflect the impact of the marketing initiatives Accord has undertaken. However, where the results of those initiatives can clearly be seen is in the build-up of funds employed that has occurred in our recourse factoring business, particularly in the U.S. Funds employed have increased 29% since the beginning of 2012 to $116 million at June 30, 2012 and are within touching distance of our record high $120 million. In addition, the pipeline of prospective transactions continues to be satisfactory. This augurs well for the Company's recourse business as we head into the second half of the year. Our non-recourse business is also ramping up its marketing campaign for our new product, AccordOctet."
The Company's Board of Directors today declared an increased quarterly dividend of $0.08 per common share, payable September 4, 2012 to shareholders of record August 15, 2012. The Board also resolved, subject to regulatory approval, to renew its normal course issuer bid which expires August 7, 2012.
SOURCE: Accord Financial Corp.
For further information:
Vice President, Chief Financial Officer
Accord Financial Corp.
77 Bloor Street West, 18th floor
Toronto, ON M5S 1M2
(416) 961-0304 Ext. 207