Newsroom |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Press Information: ACCORD FINANCIAL CORP. Accord Announces Third Quarter and Nine Months’ Earnings, Toronto – October 24, 2007: Accord Financial Corp. (TSX – ACD) (the “Company”), a leading North American provider of factoring and other asset-based financial services to businesses is pleased to announce its unaudited consolidated financial results for the three and nine months ended September 30, 2007. The financial figures presented in this release are reported in Canadian dollars in accordance with Canadian generally accepted accounting principles.
Net earnings for the third quarter of 2007 declined by 20% to $1,163,201 compared to $1,459,557 last year mainly due to a higher provision for credit and loan losses and lower “net revenue” (revenue net of interest expense). Diluted earnings per share were 12 cents for the quarter compared to 15 cents last year. Factoring volume in the third quarter was a strong $413 million, 12% higher than last year and only $6 million below the previous record third quarter volume. Revenue increased by 2% to $7,173,562 compared to $7,005,528 last year. Revenue did not rise in the same proportion as volume primarily due to lower yields. Net earnings for the nine months ended Sept. 30, 2007 declined by 9% to $4,227,737 compared to $4,656,578 in the same period last year. Diluted earnings per share for the nine months were 44 cents compared to 47 cents last year. Factoring volume for the current nine month period rose by 6% to $1,121 million compared to $1,060 million last year. Revenue declined by 3% to $20,575,438 compared with $21,216,697 last year due to reduced yields. Commenting on the results, Ken Hitzig, President, stated “Accord generated a large increase in new business in the third quarter pushing outstanding gross factored receivables and loans up by 32% to a record $105 million at Sept. 30, 2007. As is the Company’s practice, this necessitated a corresponding increase in the allowance for losses, which, in turn, resulted in an increase in the provision for credit and loan losses in the current quarter and nine months, more than $500,000 higher than the same periods last year. This new level of outstandings should produce higher revenue in the final quarter of the year and into 2008.” The Company's Board of Directors today declared a regular quarterly dividend of $0.055 per common share, payable December 3, 2007 to shareholders of record at the close of business November 15, 2007.
For further information please contact: Stuart Adair (416) 961-0304 Ext. 207
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
