Accord Financial reports record revenues, net income, funds employed and book value per common share

TORONTO, November 4, 2021 / CNW / – Accord Financial Corp. (TSX: ACD) today released financial results for the three and nine months ended September 30, 2021. The financial figures presented in this press release are expressed in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards.

SUMMARY OF FINANCIAL RESULTS

Three months ended

September 30

Nine months ended

September 30


2021

2020

2021

2020


$

$

$

$

Average funds employed (millions)

414

327

383

343

Revenue (in thousands)

16,119

12 312

45,015

35,598

Gains (losses) before income tax (in thousands)

3 132

(120)

10 083

(5,209)

Net income (loss) attributable to shareholders (in thousands)

2,643

566

8 313

(968)

Adjusted net income (loss) (in thousands) (note)

2 801

621

8 645

(63)

Earnings (loss) per common share (basic and diluted)

0.31

0.07

0.97

(0.11)

Adjusted earnings (loss) per common share (basic and diluted)

0.33

0.07

1.01

(0.01)

Book value per common share (September 30)



$ 11.31

$ 10.56

Third quarter revenue hits record $ 16,119,000 compared to $ 12,312,000 last year, mainly due to a 27% increase in average funds employed and other income. The average funds employed were $ 414 million during the current quarter compared to $ 327 million last year, ending the quarter at an all-time high $ 437 million.

Net income attributable to shareholders (“shareholders’ net income”) increased from $ 566,000 in the third quarter of last year for $ 2,643,000 in the third quarter of 2021 representing a clear recovery after the negative economic impacts of Covid-19. Earnings per common share (“EPS”) rose to 31 cents compared to 7 cents Last year. Adjusted net income was $ 2,801,000 compared to $ 621,000 in the third quarter of 2020, resulting in adjusted EPS of 33 cents compared to 7 cents Last year.

Revenues and profits for the first nine months reflect a steady growth in funds employed; average funds employed increased by 12% to reach $ 383 million compared to $ 343 million Last year. Portfolio growth and higher yields drove income up 26% to a record high in first nine months $ 45.0 million in 2021 compared to $ 35.6 million Last year. Shareholder net profit hit a record for the first nine months $ 8,313,000 rebound in net shareholder loss of $ 968,000 in 2020. The increase in net income results mainly from higher revenues and a decrease in the provision for losses. BPA was also a record for the first nine months 97 cents compared to a loss per common share (“LPS”) of 11 cents Last year. Adjusted net income for the first nine months of 2021 was a record $ 8,645,000 (EPS adjusted from $ 1.01) compared to an adjusted net loss of $ 63,000 (LPS adjusted from 1 cent) in the first nine months of 2020.

Commenting on the financial results, the President and CEO of the Company, Mr. Simon hitzig, said: “Accord’s strong performance in the third quarter and over nine months puts the company back on its pre-pandemic growth path. Coming out of the economic crisis, Accord has built four consecutive strong quarters, with year-over-year adjusted earnings per share. of $ 1.26. With the economy rebounding, we continue to capitalize on the development of innovative products, our strong market presence and our financial strength. Progress rarely follows a straight line, but the fundamentals are falling into place. ”

Mr. Hitzig added: “Accord’s record performance since the start of the year validates our strategy, and the constant improvement in operational efficiency, diversification and credit quality underpin the foundation, adding an element of strength and stability as we expect continued success in 2022. “

About Accord Financial Corp.
Financial Accord is North America the most dynamic trade finance company providing fast and versatile financing solutions to businesses in transition including factoring, inventory finance, equipment leasing, trade finance and film / media finance . Leveraging our unique combination of financial strength, deep experience and independent thinking, we design winning financial solutions for small and medium businesses, delivered simply, so our clients can thrive. For 43 years, Accord has helped businesses manage their cash flow and maximize financial opportunities.

Note: Non-IFRS measures

The Company’s financial statements have been prepared in accordance with IFRS. The Company uses a number of other financial measures to monitor its performance and believes that these measures may be useful to investors in assessing the operating performance and financial condition of the Company. These measures may not have standardized meanings or calculations as prescribed by IFRS that would ensure consistency between companies using these measures and are therefore considered non-IFRS measures. The non-IFRS measures presented in this press release are as follows:

1) Adjusted net earnings and adjusted EPS. The Company derives these measures from amounts presented in its financial statements prepared in accordance with IFRS. Adjusted net income includes shareholders’ net income before stock-based compensation, business acquisition costs (transaction and integration costs and amortization of intangible assets) and restructuring costs. Adjusted EPS (basic and diluted) is adjusted net income divided by the weighted average number of common shares outstanding (basic and diluted) during the period. Management believes that adjusted net income is a more appropriate measure of operating performance as it excludes items that are not directly related to ongoing operating activities. The following table presents a reconciliation of the Company’s net income to adjusted net income:


Three months ended September 30

Nine months ended September 30


2021

2020

2021

2020


$ ‘000

$ ‘000

$ ‘000

$ ‘000

Shareholders’ net profit:

2,643

566

8 313

(967)

Net tax adjustments:





Restructuring costs

139

186

738

Stock-based compensation expense

13

13

Business acquisition costs

6

55

133

166

Adjusted net profit

2 801

621

8 645

(63)

2) Book value per share – book value is equity and is the same as the net asset value (calculated as total assets less total liabilities) of the Company less non-controlling interests. Book value per share is the book value divided by the number of common shares outstanding on a particular date.

3) Funds employed are the Company’s financial receivables and loans, a measure in accordance with IFRS. The average funds employed are the average financial claims and loans calculated over a given period.

SOURCE Accord Financial Corp.

For more information: please visit www.accordfinancial.com or contact: Stuart Adair, Senior Vice President, Chief Financial Officer, Accord Financial Corp., 602 – 40 Eglinton Avenue East, Toronto, ON M4P 3A2, (416) 642- 5647, [email protected]

Related links

http://www.accordfinancial.com


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