TORONTO, July 28 /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 six months ended June 30, 2009. 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 Six Months Ended
June 30 June 30
2009 2008 2009 2008
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Factoring volume
(millions) $ 380 $ 365 $ 782 $ 748
Revenue $ 5,677,356 $ 7,094,273 $ 11,748,251 $ 14,521,482
Net earnings $ 494,183 $ 1,759,394 $ 1,774,344 $ 3,247,236
Earnings per share
Basic $ 0.05 $ 0.19 $ 0.19 $ 0.34
Diluted $ 0.05 $ 0.18 $ 0.19 $ 0.34
Weighted average
number of shares
Basic 9,408,027 9,497,922 9,418,288 9,481,431
Diluted 9,408,027 9,529,659 9,426,276 9,543,033
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Net earnings for the second quarter of 2009 declined to $494,183 compared with $1,759,394 last year. Earnings declined due to lower revenue and a higher provision for credit and loan losses, although increased general and administrative expenses ("G&A") also contributed to the decline. Diluted earnings per share decreased to 5 cents compared to 18 cents last year. Factoring volume increased to a record $380 million in the second quarter compared to $365 million last year. Revenue decreased to $5,677,356 from $7,094,273 last year as a result of lower factored receivables and loans, as well as reduced yields due, in part, to lower interest rates and an increase in non-performing loans.
Net earnings for the first half of 2009 declined to $1,774,344 compared with $3,247,236 in 2008. Diluted earnings per share were 19 cents compared to 34 cents last year. Factoring volume for the first half of 2009 rose to a record $782 million. Total revenue decreased to $11,748,251 for reasons similar to those noted above.
The Company's Board of Directors today declared a regular quarterly dividend of $0.065 per share, payable September 1, 2009 to shareholders of record August 14, 2009. The Board also resolved, subject to regulatory approval, to renew its normal course issuer bid, which expires August 7, 2009.
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