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Press Information: ACCORD FINANCIAL CORP. Accord
Posts Fourth Quarter and Annual Results;
SUMMARY OF FINANCIAL RESULTS
Net earnings for 2003 increased by 26% to $5,839,000 compared to $4,649,000 for 2002, while diluted earnings per share increased by 24% to 61 cents compared to 49 cents last year. Factoring volume for fiscal 2003 increased by 5% to a company record $1,439 million compared to $1,366 million last year. Total revenue for 2003 declined slightly to $26,214,000 compared with $26,235,000 last year. The impact of the decline in the U.S. dollar against the Canadian dollar this year has served to reduce 2003 revenue by approximately $780,000, while, in 2002, revenue included interest of $598,000 from a former affiliate and a gain of $100,000 on the sale of the Company’s interest in that affiliate. Net earnings for both 2003 and 2002 were after provisions for the settlement of an old legal claim by an account debtor for damages. Excluding the provisions for the settlement of this claim, net of taxes, made in 2003 ($440,000) and 2002 ($1,444,000), net earnings for 2003 would have increased by 3% to $6,279,000 compared to $6,093,000 last year, while diluted earnings per share would have increased to 65 cents compared to 64 cents last year. This improvement comes in spite of the above noted loss of income from the former affiliate and the adverse impact of the decline in the U.S. dollar on net earnings. Commenting on the 2003 results, Ken Hitzig, the Company’s President, notes “the Company is very pleased with the significant improvement in net earnings in 2003 in spite of difficult business conditions in the U.S. market and the weaker U.S. dollar. We are optimistic that 2004 will see a further improvement in performance.” Net earnings and diluted earnings per share for the fourth quarter of 2003 increased to $2,052,000 and 21 cents, respectively, compared to $926,000 and 10 cents, respectively, last year. Factoring volume declined slightly to $376 million in the fourth quarter compared with the record $378 million achieved in the fourth quarter of 2002. Revenue declined by 3% to $7,159,000 in the fourth quarter compared to $7,402,000 last year. Revenue was adversely impacted this year by the decline in the U.S. dollar against the Canadian dollar; this served to reduce the Canadian dollar equivalent of the Company’s U.S. revenue by approximately $300,000 in the fourth quarter. Last year’s fourth quarter net earnings were after a provision, net of tax, of $1,444,000 for the settlement of the above noted claim. Excluding this provision, net earnings and diluted earnings per share would have been $2,371,000 and 25 cents, respectively, in the fourth quarter of 2002. The decrease in fourth quarter 2003 net earnings to $2,052,000 from 2002’s fourth quarter adjusted net earnings of $2,371,000 principally results from the after-tax impact of a $526,000 increase in credit and loan losses in the fourth quarter of 2003 compared to the prior year.
Stuart Adair (416) 961-0304 Ext. 207 |
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