Oct. 26, 2010 (Canada NewsWire Group) --
TORONTO, Oct. 26 /CNW/ - Accord Financial Corp. (TSX - ACD), a leading North American provider of factoring and other asset-based financial services to businesses, today released its interim unaudited consolidated financial results for the three and nine months ended September 30, 2010. 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 |
Nine Months Ended |
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| 2010 | 2009 | 2010 | 2009 | ||||
| Factoring volume (millions) | $ 582 | $ 449 | $ 1,588 | $ 1,232 | |||
| Revenue | $ 8,141,361 | $ 5,663,933 | $ 23,189,517 | $ 17,412,184 | |||
| Net earnings | $ 1, 369,706 | $ 709,231 | $ 5,292,315 | $ 2,483,575 | |||
| Earnings per share | |||||||
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Basic |
$ 0.15 | $ 0.08 | $ 0.56 | $ 0.26 | |||
| Diluted | $ 0.15 | $ 0.08 | $ 0.56 | $ 0.26 | |||
| Weighted average number of shares | |||||||
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Basic |
9,407,348 | 9,427,823 | 9,408,338 | 9,421,466 | |||
| Diluted | 9,407,348 | 9,427,823 | 9,408,338 | 9,426,791 | |||
Net earnings for the third quarter of 2010 almost doubled to $1,369,706 compared with $709,231 last year. Earnings rose on record third quarter revenue. Diluted earnings per share for the third quarter increased to 15 cents compared to 8 cents last year. Factoring volume increased by 30% to a third quarter record $582 million compared to $449 million last year. Revenue rose by 44% to $8,141,361 from $5,663,933 last year largely as a result of a combination of higher factoring volume, increased funds employed and improved yields. Net earnings were impacted by an impairment charge of $653,000, net of tax, taken against certain assets held for sale.
Net earnings for the nine months ended September 30, 2010 rose by 113% to $5,292,315 compared with $2,483,575 in 2009. Diluted earnings per share were 56 cents compared to 26 cents last year. Factoring volume for the first nine months of 2010 rose to a record $1,588 million, while revenue increased to $23,189,517 for reasons similar to those noted above.
Commenting on the third quarter and nine months results of 2010, Mr. Tom Henderson, the Company's President and CEO stated: "We are pleased with our third quarter results. Our factoring volume and revenues were third quarter records for the Company, while our net earnings before the impairment charge would have been a third quarter record. Our portfolio seems to be in the best condition since the onset of the Great Recession in 2008 and our underlying business is performing nicely."
The Company's Board of Directors today declared a regular quarterly dividend of $0.075 per share, payable December 1, 2010 to shareholders of record November 15, 2010.
%SEDAR: 00001979E
Stuart Adair
Chief Financial Officer
Accord Financial Corp.
77 Bloor Street West, 18th floor
Toronto, ON M5S 1M2
(416) 961-0304 Ext. 207
sadair@accordfinancial.com