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Press Information: ACCORD FINANCIAL CORP. Accord Announces Fourth Quarter and Fiscal 2005 Earnings
Net earnings for 2005 declined by 19% to $6,210,000 compared to last year’s record $7,624,000, while diluted earnings per share fell to 62 cents compared to 76 cents last year. Net earnings for the year included an extraordinary gain of $908,000 on the acquisition of i Trade Finance Inc. (“i Trade”) and were after a charge, net of tax, of $670,000 relating to the consolidation of the Company’s Montreal operations. Excluding these two items, net earnings would have been $5,972,000. The Company’s return on average shareholders’ equity was 16.8% in 2005 compared to 19.1% in 2004. Factoring volume in 2005 decreased by 4% to $1,424 million compared to the record $1,489 million in 2004. Total revenue for 2005 similarly declined to $26,230,000 compared with $27,418,000 the prior year. Commenting on 2005’s results, Ken Hitzig, the Company’s President, noted that, “2005 was going to be a challenge from the onset if the Company was to repeat its record-breaking performance of 2004. Competitive pressures resulted in the consolidation of the Company’s Montreal operation during the year. However, the Company gained momentum in the second half of 2005 and concluded the year with a healthier than expected bottom line, in part due to an extraordinary gain on the acquisition of i Trade in October. The Company ended 2005 with gross outstanding receivables and loans of $85.7 million, a year-end record high. We are optimistic about our prospects heading into 2006.” Net earnings for the fourth quarter of 2005 increased slightly to $2,796,000 compared to $2,771,000 in the fourth quarter of 2004. Diluted earnings per share increased to 28 cents compared to 27 cents in the fourth quarter of 2004. Factoring volume in the fourth quarter rose by 3% to $370 million compared with the $358 million last year. Revenue declined slightly to $7,117,000 compared to $7,194,000 in the previous year as yields decreased somewhat. Fourth quarter net earnings included the extraordinary gain of $908,000 referred to above and were after a charge, net of tax, of $395,000 relating to the consolidation of the Company’s Montreal operations. Excluding these two items, net earnings would have been $2,283,000.
For further information please contact: Stuart Adair (416) 961-0304 Ext. 207
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