Feb. 22, 2011 (Canada NewsWire Group) --
TORONTO, Feb. 22 /CNW/ - Accord Financial Corp. (TSX - ACD), a leading North American provider of factoring and other asset-based financial services to businesses today announced its financial results for the fourth quarter and year ended December 31, 2010. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with Canadian generally accepted accounting principles.
SUMMARY OF FINANCIAL RESULTS
|
Three Months Ended December 31 |
Year Ended December 31 |
||||||
| 2010 | 2009 | 2010 | 2009 | ||||
| Factoring volume (millions) | $ 532 | $ 516 | $ 2,120 | $ 1,748 | |||
| Revenue | $ 8,216,934 | $ 6,633,104 | $ 31,406,451 | $ 24,045,288 | |||
| Net earnings | $ 2,962,484 | $ 605,038 | $ 8,254,799 | $ 3,088,613 | |||
| Earnings per share | |||||||
|
Basic |
$ 0.32 | $ 0.06 | $ 0.88 | $ 0.33 | |||
|
Diluted |
$ 0.32 | $ 0.06 | $ 0.88 | $ 0.33 | |||
| Weighted average number of shares | |||||||
|
Basic |
9,325,878 | 9,417,160 | 9,387,723 | 9,420,390 | |||
|
Diluted |
9,325,878 | 9,417,160 | 9,387,723 | 9,424,384 | |||
Net earnings increased to a record $8,255,000 in 2010, far above 2009's net earnings of $3,089,000. Diluted earnings per share rose 167% to a record 88 cents in 2010 compared to 33 cents in 2009. The Company's return on average shareholders' equity improved to 18.2% in 2010 compared to 6.7% in 2009. Net earnings increased as a result of higher revenue and, to a lesser extent, a lower provision for credit and loan losses.
Factoring volume in 2010 rose by 21% and exceeded $2 billion for the first time ever. Volume was a record $2.12 billion compared to $1.75 billion the previous year. Revenue increased by 31% to a record $31,406,000 in 2010 compared with $24,045,000 in 2009. Revenue increased on a combination of higher factoring volume and funds employed, as well as improved yields and lower non-performing loans compared to 2009.
Commenting on 2010's results, Tom Henderson, the Company's President and CEO stated: "we've come from lackluster results in 2009 - a year of The Great Recession - to record profits in 2010. As for 2011, we are well prepared to continue to operate with discipline, a common sense of purpose and the confidence that we possess the collective genius to withstand any challenge and capitalize on all opportunities".
Net earnings for the fourth quarter of 2010 were the Company's highest ever quarterly earnings. They rose to $2,962,000 compared to $605,000 last year as a result of higher revenue and lower provisions for credit, loan losses and impairment charges. Diluted earnings per share increased to 32 cents compared to 6 cents in the fourth quarter of 2009.
Factoring volume in the fourth quarter rose to $532 million compared with $516 million last year. Revenue increased to $8,217,000 compared to $6,633,000 in the 2009 fourth quarter for similar reasons to those noted above for 2010.
Stuart Adair
Vice-president, Chief Financial Officer
Accord Financial Corp.
77 Bloor Street West, 18th floor
Toronto, Ontario
M5S 1M2
(416) 961-0304 Ext. 207
sadair@accordfinancial.com