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Press Information:
Toronto - July 27, 2006
ACCORD FINANCIAL CORP.
Accord Announces Improved Second Quarter and Record First Half Earnings, Declares a 22% Increase in its Quarterly Dividend and Announces Intention to Renew Normal Course Issuer Bid
Accord Financial Corp. (TSX - ACD), a leading North American provider of a wide range of factoring and other asset-based financial services to businesses, including financing, collection services, credit investigation, credit protection and guarantees, is pleased to announce its interim unaudited consolidated financial results for the three and six months ended June 30, 2006. The financial results presented in this release are reported in Canadian dollars and have been prepared in accordance with Canadian generally accepted accounting principles.
SUMMARY OF FINANCIAL RESULTS |
| |
Three Months
Ended
June 30 |
Six Months
Ended
June 30 |
| |
2006 |
2005 |
2006 |
2005 |
Factoring volume (millions) |
$
320 |
$
333 |
$ 691 |
$
653 |
Revenue |
$ 6,997,410 |
$
6,554,383 |
$ 14,211,169 |
$ 12,421,959 |
Net earnings |
$ 1,505,806 |
$ 1,280,286 |
$ 3,197,021 |
$ 2,414,187 |
Earnings per share |
|
|
|
|
Basic |
$ 0.15 |
$ 0.13 |
$ 0.32 |
$ 0.24 |
Diluted |
$ 0.15 |
$ 0.13 |
$ 0.32 |
$ 0.24 |
Weighted average number of shares |
|
|
|
0 |
Basic |
9,888,164 |
9,925,167 |
9,909,468 |
9,900,369 |
Diluted |
10,028,299 |
10,108,606 |
10,057,028 |
10,110,423 |
Net earnings for the second quarter of 2006 rose by
18% to $1,505,806 compared with $1,280,286 last year.
Earnings improved due to higher revenue. Diluted earnings
per share rose to 15 cents compared to 13 cents last
year. Factoring volume declined by 4% to $320 million
in the second quarter compared to $333 million last
year. Revenue, however, increased by 7% to $6,997,410
from $6,554,383 as the interest earned on asset-based
loans increased and yields improved.
Net earnings for the first half of 2006 rose by 32%
to a record $3,197,021 compared with $2,414,187 in 2005.
Diluted earnings per share were 32 cents compared to
24 cents last year. Factoring volume for the first half
of 2006 rose by 6% to $691 million. Total revenue improved
by 14% to $14,211,169.
The Company’s Board of Directors today declared
a regular dividend of $0.055 per share, payable September
1, 2006 to shareholders of record August 15, 2006. The
dividend represents a 22% increase over the previous
quarterly dividend amount of $0.045 per share.
The Board still considers the current price of the Company’s
shares to be attractive and resolved, subject to regulatory
approval, to renew its Normal Course Issuer Bid (“Bid”),
which expires August 4, 2006. Under the new Bid, the
Company may purchase up to 5%, or approximately 487,000,
of its shares for cancellation.
For further information please contact:
Stuart Adair
Chief Financial Officer
Accord Financial Corp.
77 Bloor Street West, 18th floor
Toronto, Ontario
M5S 1M2
(416) 961-0304 Ext. 207
info@accordfinancial.com
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