May 4, 2011 (Canada NewsWire Group) --
TORONTO, May 4 /CNW/ - Accord Financial Corp. (TSX - ACD), a leading North American provider of factoring and other asset-based financial services to businesses, today released its financial results for the quarter ended March 31, 2011. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards.
|SUMMARY OF FINANCIAL RESULTS||Three Months Ended March 31|
|Factoring volume (millions)||$ 482||$ 505|
|Revenue||$ 6,867,277||$ 6,978,924|
|Net earnings||$ 1,598,468||$ 1,608,824|
|Basic and diluted earnings per common share||$ 0.18||$ 0.17|
|Basic and diluted weighted average number of shares||9,002,340||9,408,971|
Net earnings totalled $1,598,468 in the first quarter of 2011 slightly below last year's $1,608,824. Net earnings declined on somewhat lower revenue and higher interest expense. Despite slightly lower net earnings, earnings per common share increased to 18 cents compared to 17 cents last year on a lower share count resulting from share repurchases under the Company's Issuer Bid.
Factoring volume decreased to $482 million compared to $505 million in last year's first quarter on lower non-recourse volume. Revenue declined by $112,000 or 2% to $6,867,000 this year compared to $6,979,000 in the first quarter of 2010 as a result of the lower non-recourse volume, as well as the impact of a weaker U.S. dollar on the translation of our U.S. operations revenue into Canadian dollars.
Commenting on the first quarter's results, Mr. Tom Henderson, the Company's President and CEO, noted: "While the Company started 2011 out solidly and our Canadian lending business is performing very nicely, our U.S. lending and Canadian non-recourse factoring businesses are facing aggressive competition from the U.S. regional banks and Canadian credit insurers, respectively. This is impacting factoring volumes and margins. Accordingly, 2011 will be a year of challenges for the Company."
As noted in the Company's press release of April 20, 2011, a regular quarterly dividend of $0.075 per share has been declared payable June 1, 2011 to shareholders of record at the close of business May 16, 2011.
Vice President, Chief Financial Officer
Accord Financial Corp.
77 Bloor Street West, 18th floor
Toronto, Ontario, M5S 1M2
(416) 961-0304 Ext. 207