Business
Accord Announces Strong Fourth Quarter and Fiscal 2006 Earnings
Accord Announces Strong Fourth Quarter and Fiscal 2006 Earnings.
About this update from Accord Financial Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, Feb. 21 /CNW/ - Accord Financial Corp. (TSX - ACD), a leading\nNorth American provider of asset-based financial services to businesses,\nincluding factoring, financing, credit investigation and guarantees, is\npleased to announce its financial results for the fourth quarter and year\nended December 31, 2006. The financial figures presented in this release are\nreported 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 2006 2005 2006 2005\n ---- ---- ---- ----\nFactoring volume\n (millions) $ 357 $ 370 $ 1,417 $ 1,424\n\nRevenue $ 7,647,019 $ 7,117,040 $28,863,716 $26,230,358\n\nNet earnings $ 2,460,421 $ 2,795,762 $ 7,116,999 $ 6,210,422\n\nEarnings per share\n Basic $ 0.26 $ 0.28 $ 0.73 $ 0.63\n Diluted $ 0.25 $ 0.28 $ 0.72 $ 0.62\nWeighted average\n number of shares\n Basic 9,636,026 9,936,906 9,802,730 9,919,457\n Diluted 9,752,857 10,080,852 9,935,873 10,096,946\n-------------------------------------------------------------------------\n\n\nNet earnings for 2006 increased by 15% to $7,117,000 compared to last\nyear's $6,210,000, while diluted earnings per share rose to 72 cents compared\nto 62 cents last year. Net earnings in 2005 included an extraordinary gain of\n$908,000 on the acquisition of i Trade Finance Inc. (\"i Trade\") and were after\ncharges, net of tax, of $670,000 relating to the consolidation of the\nCompany's Montreal operations. Excluding these two items, net earnings would\nhave been $5,972,000 in 2005 and the rise in 2006's net earnings would have\nbeen 19%. The Company's return on average shareholders' equity was 18.3% in\n2006 compared to 16.8% in 2005.\n\n\nFactoring volume in 2006 decreased slightly to $1,417 million compared to\n$1,424 million in 2005. Total revenue for 2006 increased by 10% to $28,864,000\ncompared with $26,230,000 the prior year. Revenue rose despite the small\ndecline in volume as yields in the Company's recourse factoring business and\ninterest earned on asset-based loans both increased.\n\n\nDuring 2006 the Company was successful in repurchasing and cancelling\n573,100 (2005 - 38,700) common shares ac...