The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Accord Announces Second Quarter and First Half Earnings, Declares Regular Quarterly Dividend and Resolves to Renew Normal Course Issuer Bid

Tuesday, July 26, 2011

Accord Announces Second Quarter and First Half Earnings, Declares Regular Quarterly Dividend and Resolves to Renew Normal Course Issuer Bid12:46 EDT Tuesday, July 26, 2011TORONTO, July 26, 2011 /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, 2011. 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 30Six Months Ended June 30                    2011            2010            2011          2010                      Factoring volume (millions) $            455 $            500   $              937$          1,005        Revenue   $  6,828,201$  8,069,232  $  13,695,478$ 15,048,156        Net earnings  $  1,393,639    $  2,306,864  $    2,992,107$   3,915,688        Basic and diluted earnings        per common share$           0.16    $           0.25  $             0.33$            0.42Basic and diluted weighted        average number of shares     8,948,580    9,408,695  8,975,4609,408,833        Net earnings for the second quarter of 2011 declined 40% to $1,393,639 compared to $2,306,864 last year. Earnings declined mainly due to lower revenue and an impairment charge of $462,026 taken against assets held for sale. Earnings per share decreased to 16 cents compared to 25 cents last year. Factoring volume declined 9% to $455 million compared to $500 million last year largely due to lower non-recourse volume.  Revenue decreased 15% to $6,828,201 compared to $8,069,232 last year mainly due to lower volume and miscellaneous fee income.Net earnings for the first six months of 2011 declined 24% to $2,992,107 compared with $3,915,688 in 2010 mainly due to the above noted reasons. Earnings per share declined to 33 cents compared to 42 cents last year. Factoring volume for the first half of 2011 declined 7% to $937 million largely as a result of lower non-recourse volume. Revenue decreased 9% to $13,695,478 compared to $15,048,156 last year for reasons noted above.Commenting on the second quarter and first half 2011 results, Mr. Tom Henderson, the Company's President and CEO stated: "After developing an imaginative and very successful program to cover risky credits, our non-recourse factoring business saw the departure of a number of clients when some of the risky accounts improved to credit-worthy status. The credit insurers, who were unable to compete with Accord when the going appeared risky, entered the fray with aggressive rates when the risk dissipated. Needless to say, this depressed our earnings in the current quarter and first half of 2011. In addition, our recourse factoring business took in lower miscellaneous fee income, and incurred an asset impairment charge. However, we exited the first half with record funds employed and, accordingly, the second half of 2011 holds the promise of more robust revenue growth."The Company's Board of Directors today declared a regular quarterly dividend of $0.075 per share, payable September 1, 2011 to shareholders of record August 15, 2011. The Board also resolved, subject to regulatory approval, to renew its normal course issuer bid which recently terminated when it completed its purchase of 470,373 shares under the bid.For further information: Stuart Adair Vice President, Chief Financial Officer Accord Financial Corp. 77 Bloor Street West, 18th floor Toronto, ON     M5S 1M2 (416) 961-0304 Ext. 207