Mr. Stuart Adair reports
ACCORD REPORTS RECORD BUSINESS ACTIVITY, ANNOUNCES SECOND QUARTER AND FIRST HALF EARNINGS AND INCREASE IN QUARTERLY DIVIDEND
Accord Financial Corp. today
released its financial results for the three and six months ended June
30, 2014. The financial figures presented in this release have been prepared in accordance with
international financial reporting standards (IFRS).
SUMMARY OF FINANCIAL RESULTS
June 30, 2014 June 30, 2013
Finance receivables and loans
(funds employed) (millions) $ 149 $ 109
Three months ended June 30, Six months ended June 30,
2014 2013 2014 2013
Factoring volume (millions) $ 525 $ 431 $ 1,041 $ 879
Revenue (000s) $ 7,529 $ 6,388 $ 14,145 $ 12,335
Net earnings (000s) $ 1,537 $ 1,267 $ 2,334 $ 2,513
Adjusted net earnings (000s) $ 1,593 $ 1,430 $ 2,828 $ 2,696
Earnings per common share
(basic and diluted) $ 0.18 $ 0.15 $ 0.28 $ 0.31
Adjusted earnings per common share
(basic and diluted) $ 0.19 $ 0.17 $ 0.34 $ 0.33
Net earnings for the second quarter of 2014 rose 21 per cent to $1,537,000
compared with $1,267,000 last year. Earnings increased as a result of
higher revenue. Earnings per share increased 20 per cent to 18 cents
compared with 15 cents last year.
Adjusted net earnings totalled $1,593,000 in the second quarter of 2014,
11 per cent above the $1.43-million earned in the second quarter of 2013. Adjusted
EPS was 19 cents compared with 17 cents in last year's second quarter.
Factoring volume rose 22 per cent to a second quarter record of $525-million
compared with $431-million last year. Funds employed increased 37 per cent to a
record high $149-million at June 30, 2014, compared with $109-million a
year ago. Revenue was 15 per cent higher at $7,529,000 in the current quarter
compared with $6,388,000 last year. Revenue increased on higher funds
employed and factoring volume.
Net earnings for the first half of 2014 declined 7 per cent to $2,334,000
compared with $2,513,000 in the first half of 2013 as a result of
higher expenses. EPS was 28 cents compared with 31 cents last year.
Adjusted net earnings increased by 5 per cent to $2,828,000 in the first half of
2014 compared with $2,696,000 in the first half of 2013. Adjusted EPS
was 34 cents compared with 33 cents last year.
Factoring volume for the first six months of 2014 rose 18 per cent to a first-half record of $1,041,000 compared with $879-million last year. Revenue
increased 15 per cent to $14,145,000 compared with $12,335,000 last year for
reasons noted above.
Commenting on the second quarter and first half 2014 results, Tom
Henderson, the company's president and chief executive officer, stated: "In many ways the
second quarter felt much like the first across all our business units.
Competition continues to be very aggressive, but nevertheless we
continue to perform well as evidenced by the 11-per-cent increase in adjusted
second quarter earnings. Our funds employed rose to record levels in
the quarter and, as one of the main drivers of our business, this bodes
well for the future. The really good news is we remain popular with
referral sources and potential clients. Inquiries from these
constituencies are at an all-time high, reflecting in part, the
increased recognition of the Accord brand. The new business pipeline
augurs well for our financial performance in the balance of the year."
The company's board of directors today declared a quarterly dividend of
8.5 cents per common share, payable Sept. 2, 2014, to shareholders of
record on Aug. 15, 2014. This represents a 6-per-cent increase from the previous
dividend of eight cents per common share.
We seek Safe Harbor.
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