TORONTO, Nov. 4, 2021 /CNW/ - Accord Financial Corp.
(TSX: ACD) today released its financial results for the three and
nine months ended September 30, 2021.
The financial figures 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
Sept.
30
|
Nine Months
Ended
Sept.
30
|
|
2021
|
2020
|
2021
|
2020
|
|
$
|
$
|
$
|
$
|
Average funds
employed (millions)
|
414
|
327
|
383
|
343
|
Revenue
(000's)
|
16,119
|
12,312
|
45,015
|
35,598
|
Earnings(loss)
before income tax (000's)
|
3,132
|
(120)
|
10,083
|
(5,209)
|
Net earnings
(loss) attributable to shareholders (000's)
|
2,643
|
566
|
8,313
|
(968)
|
Adjusted net
earnings (loss) (000's) (note)
|
2,801
|
621
|
8,645
|
(63)
|
Earnings (loss)
per common share (basic and diluted)
|
0.31
|
0.07
|
0.97
|
(0.11)
|
Adjusted earnings
(loss) per common share (basic and diluted)
|
0.33
|
0.07
|
1.01
|
(0.01)
|
Book value per
Common share (September 30)
|
|
|
$
11.31
|
$
10.56
|
Third quarter revenue increased to a record $16,119,000 compared to $12,312,000 last year primarily driven by a 27%
increase in average funds employed and other income. Average funds
employed were $414 million in the
current quarter compared to $327
million last year, finishing the quarter at an all-time
record $437 million.
Net earnings attributable to shareholders ("shareholders' net
earnings") rose from $566,000 in the
third quarter of last year to $2,643,000 in the third quarter of 2021
representing a clear recovery from the adverse economic impacts of
Covid-19. Earnings per common share ("EPS") rose to 31 cents compared to 7
cents last year. Adjusted net earnings were $2,801,000 compared to $621,000 in the third quarter of 2020, resulting
in adjusted EPS of 33 cents compared
to 7 cents last year.
The first nine months revenue and earnings reflect steady growth
in funds employed; average funds employed increased 12% to
$383 million compared to $343 million last year. Portfolio growth and
higher yields drove revenue higher by 26% to a first nine months
record $45.0 million in 2021 compared
to $35.6 million last year.
Shareholders' net earnings were a first nine months record
$8,313,000 rebounding from the
shareholders' net loss of $968,000 in
2020. The increase in net earnings primarily resulted from
higher revenue and a lower provision for losses. EPS were also a
first nine months record 97 cents
compared to a loss per common share ("LPS") of 11 cents last year. Adjusted net earnings for the
first nine months of 2021 were a record $8,645,000 (adjusted EPS of $1.01) compared to an adjusted net loss of
$63,000 (adjusted LPS of 1 cent) in the first nine months of 2020.
Commenting on the financial results, the Company's President and
CEO, Mr. Simon Hitzig, stated:
"Accord's strong performance in the third quarter and nine months
puts the Company squarely back on its pre-pandemic growth
trajectory. Emerging from the economic crisis, Accord has put
together four consecutive strong quarters, with trailing twelve
month adjusted earnings per share of $1.26. With the economy rebounding, we continue
to capitalize on innovative product development, deep market
presence and financial strength. Progress rarely follows a straight
line, but the fundamentals are falling into place."
Mr. Hitzig added: "Accord's record year-to-date performance
validates our strategy, and steady improvement of operating
efficiency, diversification and credit quality underpin the
foundation, adding an element of strength and stability as we look
forward to continued success in 2022."
About Accord Financial Corp.
Accord Financial is
North America's most dynamic
commercial finance company providing fast, versatile financing
solutions for companies in transition, including factoring,
inventory finance, equipment leasing, trade finance and film/media
finance. By leveraging our unique combination of financial
strength, deep experience and independent thinking, we craft
winning financial solutions for small and medium-sized businesses,
simply delivered, so our clients can thrive. For 43 years, Accord
has helped businesses manage their cash flows and maximize
financial opportunities.
Note: Non-IFRS measures
The Company's financial statements have been prepared in
accordance with IFRS. The Company uses a number of other financial
measures to monitor its performance and believes that these
measures may be useful to investors in evaluating the Company's
operating performance and financial position. These measures may
not have standardized meanings or computations as prescribed by
IFRS that would ensure consistency between companies using these
measures and are, therefore, considered to be non-IFRS measures.
The non-IFRS measures presented in this press release are as
follows:
1) Adjusted net earnings and adjusted EPS. The Company derives
these measures from amounts presented in its IFRS prepared
financial statements. Adjusted net earnings comprise shareholders'
net earnings before stock-based compensation, business acquisition
expenses (transaction and integration costs and amortization of
intangible assets) and restructuring expenses. Adjusted EPS (basic
and diluted) is adjusted net earnings divided by the weighted
average number of common shares outstanding (basic and diluted) in
the period. Management believes adjusted net earnings is a more
appropriate measure of operating performance as it excludes items
which do not directly relate to ongoing operating activities. The
following table provides a reconciliation of the Company's net
earnings to adjusted net earnings:
|
Three Months Ended
Sept. 30
|
Nine Months
Ended Sept. 30
|
|
2021
|
2020
|
2021
|
2020
|
|
$'000
|
$'000
|
$'000
|
$'000
|
Shareholders' net
earnings:
|
2,643
|
566
|
8,313
|
(967)
|
Adjustments, net of
tax:
|
|
|
|
|
Restructuring
expenses
|
139
|
–
|
186
|
738
|
Stock-based
compensation expenses
|
13
|
–
|
13
|
–
|
Business acquisition
expenses
|
6
|
55
|
133
|
166
|
Adjusted net
earnings
|
2,801
|
621
|
8,645
|
(63)
|
2) Book value per share – book value is shareholders' equity and
is the same as the net asset value (calculated as total assets
minus total liabilities) of the Company less non-controlling
interests. Book value per share is the book value divided by the
number of common shares outstanding as of a particular date.
3) Funds employed are the Company's finance receivables and
loans, an IFRS measure. Average funds employed are the average
finance receivables and loans calculated over a particular
period.
SOURCE Accord Financial Corp.