TORONTO, Feb. 21 /CNW/ - Accord Financial Corp. (TSX - ACD), a leading
North American provider of asset-based financial services to businesses,
including factoring, financing, credit investigation and guarantees, is
pleased to announce its financial results for the fourth quarter and year
ended December 31, 2005. The financial figures presented in this release are
reported in Canadian dollars and have been prepared in accordance with
Canadian generally accepted accounting principles.
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SUMMARY OF FINANCIAL RESULTS
Three Months Ended Year Ended
December 31 December 31
2005 2004 2005 2004
---- ---- ---- ----
Factoring volume
(millions) $ 370 $ 358 $ 1,424 $ 1,489
Revenue $ 7,117,040 $ 7,194,477 $ 26,230,358 $27,418,051
Net earnings $ 2,795,762 $ 2,771,482 $ 6,210,422 $ 7,624,088
Earnings per
share
Basic $ 0.28 $ 0.28 $ 0.63 $ 0.78
Diluted $ 0.28 $ 0.27 $ 0.62 $ 0.76
Weighted average
number of shares
Basic 9,936,906 9,873,829 9,919,457 9,788,810
Diluted 10,080,852 10,103,156 10,096,946 10,011,030
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Net earnings for 2005 declined by 19% to $6,210,000 compared to last
year's record $7,624,000, while diluted earnings per share fell to 62 cents
compared to 76 cents last year. Net earnings for the year included an
extraordinary gain of $908,000 on the acquisition of i Trade Finance Inc.
("i Trade") and were after a charge, 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. The Company's return on average
shareholders' equity was 16.8% in 2005 compared to 19.1% in 2004.
Factoring volume in 2005 decreased by 4% to $1,424 million compared to
the record $1,489 million in 2004. Total revenue for 2005 similarly declined
to $26,230,000 compared with $27,418,000 the prior year.
Commenting on 2005's results, Ken Hitzig, the Company's President, noted
that, "2005 was going to be a challenge from the onset if the Company was to
repeat its record-breaking performance of 2004. Competitive pressures resulted
in the consolidation of the Company's Montreal operation during the year.
However, the Company gained momentum in the second half of 2005 and concluded
the year with a healthier than expected bottom line, in part due to an
extraordinary gain on the acquisition of i Trade in October. The Company ended
2005 with gross outstanding receivables and loans of $85.7 million, a year-end
record high. We are optimistic about our prospects heading into 2006."
Net earnings for the fourth quarter of 2005 increased slightly to
$2,796,000 compared to $2,771,000 in the fourth quarter of 2004. Diluted
earnings per share increased to 28 cents compared to 27 cents in the fourth
quarter of 2004. Factoring volume in the fourth quarter rose by 3% to
$370 million compared with the $358 million last year. Revenue declined
slightly to $7,117,000 compared to $7,194,000 in the previous year as yields
decreased somewhat. Fourth quarter net earnings included the extraordinary
gain of $908,000 referred to above and were after a charge, net of tax, of
$395,000 relating to the consolidation of the Company's Montreal operations.
Excluding these two items, net earnings would have been $2,283,000.
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%SEDAR: 00001979E
