TORONTO, Oct. 22, 2013 /CNW/ - Accord Financial Corp. (TSX - ACD) today released its interim unaudited consolidated financial results for the three and nine months ended September 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
Nine Months Ended
|Factoring volume (millions)||$||499||$||474||$||1,378||$||1,354|
| Basic and diluted earnings
per common share
| Basic and diluted weighted
average number of shares
Net earnings for the third quarter of 2013 declined to $1,377,875 compared to $1,725,378 last year. Earnings decreased as a result of lower revenue, higher general and administrative expenses and an increased provision for credit and loan losses. Earnings per share ("EPS") were 17 cents compared to 21 cents last year. Net earnings in the current quarter were impacted by a significant stock-based compensation expense related to the Company's share appreciation rights ("SARs"). This non-operating expense largely resulted from the increase in Accord's share price on the Toronto Stock Exchange in the quarter. Excluding the non-operating SARs expense of $185,000 (2012: $19,000), net earnings would have been $1,500,000 in the third quarter compared to $1,738,000 last year. EPS would have been 18 cents compared to 21 cents last year. Factoring volume rose to $499 million compared to $474 million last year on higher recourse factoring volume. Revenue decreased to $6,463,634 in the current quarter compared to $6,748,970 last year mainly as a result of a decline in non-recourse volume and somewhat lower yields.
Net earnings for the first nine months of 2013 rose to $3,890,912 compared with $3,851,632 in 2012 principally as a result of a lower provision for credit and loan losses. EPS were 47 cents compared to 46 cents last year. Excluding the SARs expense of $455,000 (2012: $50,000), net earnings in the first nine months of 2013 would have increased by 8% to $4,196,000 compared to $3,885,000 last year, while EPS would have been 11% higher at 51 cents compared to 46 cents last year. Factoring volume for the first nine months of 2013 rose to $1,378 million on higher recourse factoring volume. Revenue increased to $18,798,865 compared to $18,751,095 last year as a result of higher average funds employed principally in our U.S. operations.
Commenting on Accord's third quarter and nine months results, Mr. Tom Henderson, the Company's President and CEO, stated: "While the current quarter was our best quarter of 2013, we were unable to match last year's strong third quarter results, although our current nine months results are ahead of 2012. 2013's third quarter suffered from lower revenue, a $166,000 rise in stock-based compensation and a $233,000 increase in the reserves expense, as additional allowances for losses were set up to cover an $11 million rise in funds employed in the quarter. Positively, the increase in funds employed will result in higher revenue in future quarters. Our Montreal based recourse factoring and asset-based lending business currently has substantial momentum and record funds employed. This is tempered somewhat by our U.S. based lending business and Toronto based non-recourse factoring business that are facing intense competition. I am also pleased to report that the condition of our portfolio continues to look sound and our processes and procedures are proving effective in maintaining the quality thereof. "
The Company's Board of Directors today declared a regular quarterly dividend of $0.08 per share, payable December 2, 2013 to shareholders of record November 15, 2013.
About Accord Financial Corp.
Accord is a leading North American provider of factoring and other asset-based financial services, including financing, credit investigation and guarantees, collection services, and supply chain financing for importers. Accord has been in business for over 35 years and operates out of two offices in Canada and one in the USA. The Company is currently the only factoring and asset-based lending company listed on the Toronto Stock Exchange.
SOURCE: Accord Financial Corp.
For further information:
For further information please visit www.accordfinancial.com or contact:
Vice President, Chief Financial Officer
Accord Financial Corp.
77 Bloor Street West, 18th floor
Toronto, ON M5S 1M2
(416) 961-0304 Ext. 207