Accord Announces Fourth Quarter and Fiscal 2007 Earnings

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[{"type":"text","content":"\n\n\n\nTORONTO, Feb. 21 /CNW/ - Accord Financial Corp. (TSX - ACD), a leading\nNorth American provider of factoring and other asset-based financial services\nto businesses today announced its financial results for the fourth quarter and\nyear ended December 31, 2007. The financial figures presented in this release\nare reported in Canadian dollars and have been prepared in accordance with\nCanadian generally accepted accounting principles.\n\n\n-------------------------------------------------------------------------\n SUMMARY OF FINANCIAL RESULTS\n ----------------------------\n\n Three Months Ended Year Ended\n December 31 December 31\n 2007 2006 2007 2006\n ---- ---- ---- ----\n\nFactoring volume\n (millions) $ 376 $ 357 $ 1,497 $ 1,417\n\nRevenue $ 7,770,561 $ 7,647,019 $28,345,999 $28,863,716\n\nNet earnings $ 2,059,228 $ 2,460,421 $ 6,286,965 $ 7,116,999\n\nEarnings per share\n Basic $ 0.22 $ 0.26 $ 0.66 $ 0.73\n Diluted $ 0.22 $ 0.25 $ 0.66 $ 0.72\n\nWeighted average\n number of shares\n Basic 9,471,727 9,636,026 9,463,231 9,802,730\n Diluted 9,574,470 9,752,857 9,575,387 9,935,873\n-------------------------------------------------------------------------\n\n\nNet earnings for 2007 declined by 12% to $6,287,000 compared to last\nyear's $7,117,000, while diluted earnings per share decreased to 66 cents\ncompared to 72 cents last year. The Company's return on average shareholders'\nequity was 16.0% in 2007 compared to 18.3% in 2006. Net earnings declined due\nto lower revenue, in part due to the weaker U.S. dollar, and a higher interest\nexpense and provision for credit and loan losses.\n\n\nFactoring volume in 2007 rose by 6% to $1,497 million compared to\n$1,417 million in 2006. Revenue in 2007 declined by 2% to $28,346,000 compared\nwith $28,864,000 last year. Revenue decreased despite the rise in volume as\nyields declined somewhat after rising in 2006, partly due to competitive\npressures, funding larger deals at lower rates, and reduced miscellaneous,\nnon-recurring fees.\n\n\nCommenting on 2007's results, Ken Hitzig, the Company's President, noted\nthat "the Company saw an unprecedented 30% rise in gross factored receivables\nand loans in 2007. These rose to a record $106 million at Dec. 31, 2007, which\nrequired that we prudently set aside higher allowances for potential losses.\nIn addition, we also recorded ...

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