TORONTO, Oct. 23, 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 nine months ended September 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||Nine Months Ended|
|September 30||September 30|
|Factoring volume (millions)||$||474||$||524||$||1,354||$||1,461|
| Basic and diluted earnings
per common share
| Basic and diluted weighted
eaverage number of shares
Net earnings for the third quarter of 2012 declined to $1,725,378 compared to $2,248,167 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 21 cents compared to 25 cents last year. Factoring volume declined to $474 million compared to $524 million last year largely due to lower non-recourse volume. Revenue decreased to $6,748,970 compared to $7,341,838 last year mainly due to lower non-recourse volume, and somewhat lower yields in our recourse factoring business.
Net earnings for the first nine months of 2012 declined to $3,851,632 compared with $5,240,274 in 2011 for similar reasons to those noted above. Earnings per share were 46 cents compared to 59 cents last year. Factoring volume for the first nine months of 2012 declined to $1,354 million as a result of lower non-recourse volume. Revenue decreased to $18,751,095 compared to $21,037,316 last year on the decline in non-recourse factoring volume, and lower average funds employed and yields in our recourse factoring business.
Commenting on the third quarter and nine months results, Mr. Tom Henderson, the Company's President and CEO, stated: "Since the year started with a low level of funds employed and resultant volume, we have been building momentum and funds employed have risen 28% this year and are close to a record high. This momentum is expected to continue into the fourth quarter of 2012. However, the decline in factoring volume at our non-recourse business has served to offset these gains to a substantial degree. Accordingly, while the level of business activity is rising, it is still below that of the prior year, so there is work to be done."
The Company's Board of Directors today declared a regular quarterly dividend of $0.08 per share, payable December 3, 2012 to shareholders of record November 15, 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