TORONTO, July 23 /CNW/ - Accord Financial Corp. (TSX - ACD), a leading North American provider of factoring and other asset-based financial services to businesses, is pleased to announce its interim unaudited consolidated financial results for the three and six months ended June 30, 2008. The financial results 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
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Three Months Ended June 30 Six Months Ended June 30
2008 2007 2008 2007
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Factoring volume
(millions) $ 365 $ 341 $ 748 $ 707
Revenue $ 7,094,273 $ 6,785,396 $ 14,521,482 $ 13,401,876
Net earnings $ 1,759,394 $ 1,670,727 $ 3,247,236 $ 3,064,536
Earnings per
share
Basic $ 0.19 $ 0.18 $ 0.34 $ 0.32
Diluted $ 0.18 $ 0.17 $ 0.34 $ 0.32
Weighted average
number of shares
Basic 9,497,922 9,449,499 9,481,431 9,445,541
Diluted 9,529,659 9,564,474 9,543,033 9,566,633
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Net earnings for the second quarter of 2008 rose by 5% to $1,759,394 compared with $1,670,727 last year. Earnings improved due to higher revenue. Diluted earnings per share rose by 6% to 18 cents compared to 17 cents last year. Factoring volume increased by 7% to a record $365 million in the second quarter compared to $341 million last year, while asset-based loans to clients were also significantly higher this year. Revenue rose by 5% to $7,094,273 from $6,785,396 principally on higher interest from asset-based loans.
Net earnings for the first half of 2008 increased by 6% to $3,247,236 compared with $3,064,536 in 2007. Diluted earnings per share were 34 cents, 6% higher than the 32 cents last year. Factoring volume for the first half of 2007 rose by 6% to a record $748 million, while, as noted above, asset-based loans also rose. Total revenue increased by 8% to $14,521,482 principally on higher interest from asset-based loans.
The Company's Board of Directors today declared an 18% increase in its quarterly dividend. A dividend of $0.065 per share, payable September 2, 2008 to shareholders of record August 15, 2008 was declared. The Board also resolved, subject to regulatory approval, to renew its normal course issuer bid, which expires August 7, 2008.
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