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Press Information: ACCORD FINANCIAL CORP. Accord Announces Fourth Quarter and Fiscal 2007 Earnings Accord Financial Corp. (TSX – ACD), a leading North American provider of factoring and other asset-based financial services to businesses today announced its financial results for the fourth quarter and year ended December 31, 2007. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with Canadian generally accepted accounting principles.
Net earnings for 2007 declined by 12% to $6,287,000 compared to last year’s $7,117,000, while diluted earnings per share decreased to 66 cents compared to 72 cents last year. The Company’s return on average shareholders’ equity was 16.0% in 2007 compared to 18.3% in 2006. Net earnings declined due to lower revenue, in part due to the weaker U.S. dollar, and a higher interest expense and provision for credit and loan losses. Factoring volume in 2007 rose by 6% to $1,497 million compared to $1,417 million in 2006. Revenue in 2007 declined by 2% to $28,346,000 compared with $28,864,000 last year. Revenue decreased despite the rise in volume as yields declined somewhat after rising in 2006, partly due to competitive pressures, funding larger deals at lower rates, and reduced miscellaneous, non-recurring fees. Commenting on 2007’s results, Ken Hitzig, the Company’s President, noted that “the Company saw an unprecedented 30% rise in gross factored receivables and loans in 2007. These rose to a record $106 million at Dec. 31, 2007, which required that we prudently set aside higher allowances for potential losses. In addition, we also recorded higher write-offs in the second half of 2007. These developments, together with an accelerated depreciation in the U.S. dollar, had a dampening effect on the Company’s drive toward higher earnings. At the same time, I hasten to add that, thanks to the diligent efforts of our employees, officers, and directors, the over-all picture for 2007 presented positive signs as we prepared to enter 2008 with record levels of gross factored receivables and loans”. Net earnings for the fourth quarter of 2007 declined by 16% to $2,059,000 compared to $2,460,000 last year as a result of a higher provision for credit and loan losses and interest expense. Diluted earnings per share decreased to 22 cents compared to 25 cents in the fourth quarter of 2006. For further information please contact: Stuart Adair (416) 961-0304 Ext. 207 |
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