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Press Information: ACCORD FINANCIAL CORP. Accord Announces Strong Fourth Quarter and Fiscal 2006 Earnings
Net earnings for 2006 increased by 15% to $7,117,000 compared to last year’s $6,210,000, while diluted earnings per share rose to 72 cents compared to 62 cents last year. Net earnings in 2005 included an extraordinary gain of $908,000 on the acquisition of i Trade Finance Inc. (“i Trade”) and were after charges, 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 in 2005 and the rise in 2006’s net earnings would have been 19%. The Company’s return on average shareholders’ equity was 18.3% in 2006 compared to 16.8% in 2005. Factoring volume in 2006 decreased slightly to $1,417 million compared to $1,424 million in 2005. Total revenue for 2006 increased by 10% to $28,864,000 compared with $26,230,000 the prior year. Revenue rose despite the small decline in volume as yields in the Company’s recourse factoring business and interest earned on asset-based loans both increased. During 2006 the Company was successful in repurchasing and cancelling 573,100 (2005 – 38,700) common shares acquired under its normal course issuer bids at an average price of $7.79 per common share for a total consideration of $4,466,000. As at December 31, 2006, 9,442,771 common shares were outstanding. To date in 2007, it has repurchased an additional 1,300 shares. Commenting on 2006’s results, Ken Hitzig, the Company’s President, noted that “We entered 2006 determined to improve on the results of the previous year, and our plans and performance proved successful. Going into 2007 we’re in very good shape to match or exceed our previous record year of 2004 when earnings were 76 cents per diluted share.” Net earnings for the fourth quarter of 2006 declined by 12% to $2,460,000 compared to $2,796,000 in the fourth quarter of 2005. Diluted earnings per share decreased to 25 cents compared to 28 cents in the fourth quarter of 2005. Net earnings in the fourth quarter of 2005 included the extraordinary gain of $908,000 referred to above and were after charges, net of tax, of $395,000 relating to the consolidation of the Company’s Montreal operations. Excluding these two items, net earnings in the fourth quarter of 2006 would have been $2,283,000 and the rise in 2006’s fourth quarter net earnings would have been 8%. Factoring volume in the fourth quarter declined by
4% to $357 million compared with $370 million last year.
Revenue increased by 7% to $7,647,000 compared to $7,117,000
in the previous year for the same reasons noted above. For further information please contact: Stuart Adair (416) 961-0304 Ext. 207
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