{"id":5056,"date":"2021-05-05T16:08:15","date_gmt":"2021-05-05T21:08:15","guid":{"rendered":"https:\/\/accordfinancial.com\/staging\/?p=5056"},"modified":"2025-01-06T14:03:52","modified_gmt":"2025-01-06T20:03:52","slug":"accord-announces-strong-first-quarter-revenue-and-earnings","status":"publish","type":"post","link":"https:\/\/accordfinancial.com\/staging\/accord-announces-strong-first-quarter-revenue-and-earnings\/","title":{"rendered":"Accord Announces Strong First Quarter Revenue and Earnings"},"content":{"rendered":"\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Summary of Financial Results<\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-table\">\n    <table>\n        <thead>\n            <tr>\n                <th><\/th>\n                <th colspan=\"2\">Three Months Ended March 31<\/th>\n            <\/tr>\n            <tr>\n                <th><\/th>\n                <th>2021<\/th>\n                <th>2020<\/th>\n            <\/tr>\n            <tr>\n                <th><\/th>\n                <th>$<\/th>\n                <th>$<\/th>\n            <\/tr>\n        <\/thead>\n        <tbody>\n            <tr>\n                <td><strong>Average funds employed (millions)<\/strong><\/td>\n                <td>358<\/td>\n                <td>362<\/td>\n            <\/tr>\n            <tr>\n                <td><strong>Revenue (000\u2019s)<\/strong><\/td>\n                <td>13,480<\/td>\n                <td>12,015<\/td>\n            <\/tr>\n            <tr>\n                <td><strong>Net earnings (loss) attributable to shareholders (000\u2019s)<\/strong><\/td>\n                <td>2,585<\/td>\n                <td>(5,876)<\/td>\n            <\/tr>\n            <tr>\n                <td><strong>Adjusted net  earnings (loss) (000\u2019s) (note)<\/strong><\/td>\n                <td>2,683<\/td>\n                <td>(5,414)<\/td>\n            <\/tr>\n            <tr>\n                <td><strong>Earnings (loss) per common share (basic and diluted)<\/strong><\/td>\n                <td>0.30<\/td>\n                <td>(0.69)<\/td>\n            <\/tr>\n            <tr>\n                <td><strong>Adjusted earnings (loss) per common share (basic and diluted)<\/strong><\/td>\n                <td>0.31<\/td>\n                <td>(0.63)<\/td>\n            <\/tr>\n            <tr>\n                <td><strong>Book value per share (Mar. 31)<\/strong><\/td>\n                <td>$10.70<\/td>\n                <td>$10.27<\/td>\n            <\/tr>\n        <\/tbody>\n    <\/table>\n<\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Net earnings attributable to shareholders (\u201cshareholders\u2019 net earnings\u201d) in the first quarter of 2021 was a strong $2,585,000 compared to the Covid-19 impacted shareholders\u2019 net loss of $5,876,000 in the same period last year. The increase in shareholders\u2019 net earnings mainly reflects a combination of higher revenue and a substantially lower provision for credit and loan losses. While average funds employed remained steady year-over-year, improving yields helped push revenue up by $1,465,000, or 12%, to $13,480,000 in 2021 compared to $12,015,000 last year. The current quarter also saw a recovery of credit and loan losses of $0.9 million as the economy, and the Company\u2019s client base, has shown significant improvement. The provision for credit and loan losses in the first quarter of 2020 was $8.8 million; this incorporated the Company\u2019s estimate of potential losses from the economic fallout of Covid-19.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Earnings per common share (\u201cEPS\u201d) were 30 cents compared to a loss per common share (\u201cLPS\u201d) of 69 cents in the first quarter of 2020. Adjusted net earnings were $2,683,000 compared to an adjusted net loss of $5,414,000 in the first quarter of 2020. Adjusted EPS were 31 cents compared to an adjusted LPS of 63 cents in last year\u2019s first quarter. Average funds employed in the first quarter of 2021 were $358 million slightly below the $362 million last year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Commenting on the results, Mr. Simon Hitzig, CEO, noted: \u201cWith revenue up 12% over the same quarter last year, bottom-line financial performance began to reflect the earnings power we can deliver as the economic cycle gathers steam. In fact, Accord\u2019s thirty cents of earnings per share reflected the strongest first quarter in our history. Solid earnings in the quarter were reflective of a shift in product mix towards higher yielding segments, including our Canadian small business division and US-based media finance division \u2013 both positioned squarely at the center of key trends. In Canada, we\u2019re enjoying the successful launch of AccordExpress, our unique solution designed to bridge small businesses through to the economic recovery, while, in the U.S., BondIt Media Capital is perfectly positioned to finance the long-term secular growth of video on demand.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Continuing, Mr. Hitzig added: \u201cDuring the quarter, Accord also reduced our overall allowance for loan losses to a position more reflective of economic reopening and near-term economic stability. The allowance now stands at $5.7 million, down from $7.4 million at the end of the first quarter of 2020 (with a similar size portfolio). These are the kinds of markets in which we earn our stripes. With the deepest and most experienced management team we\u2019ve ever had, and a streamlined platform designed for growth, Accord is positioned to perform as the economy rebuilds.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Company\u2019s Board of Directors recently declared a quarterly dividend of $0.05 per common share, payable June 1, 2021 to shareholders of record at the close of business May 14, 2021.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">About Accord Financial Corp.<\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Accord Financial is North America\u2019s most dynamic commercial finance company providing fast, versatile financing solutions for companies in transition including factoring, inventory finance, equipment leasing, trade finance and film\/media finance. By leveraging our unique combination of financial strength, deep experience and independent thinking, we craft winning financial solutions for small and medium-sized businesses, simply delivered, so our clients can thrive. For 43 years, Accord has helped businesses manage their cash flows and maximize financial opportunities.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For further information please visit www.accordfinancial.com or contact:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Stuart Adair<br>Senior Vice President, Chief Financial Officer<br>Accord Financial Corp.<br>40 Eglinton Avenue East, Suite 602<br>Toronto, ON M4P 3A2<br>(416) 642-5647<br>sadair@accordfinancial.com<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Note: Non-IFRS Measures<\/h2>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">The Company\u2019s 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 evaluating the Company\u2019s operating performance and financial position. These measures may not have standardized meanings or computations as prescribed by IFRS that would ensure consistency between companies using these measures and are, therefore, considered to be non-IFRS measures. The non-IFRS measures presented in this press release are as follows:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">1) Adjusted net earnings and adjusted EPS. The Company derives these measures from amounts presented in its IFRS prepared financial statements. Adjusted net earnings comprise shareholders\u2019 net earnings before stock-based compensation, business acquisition expenses (transaction and integration costs and amortization of intangible assets) and restructuring expenses. Adjusted EPS (basic and diluted) is adjusted net earnings divided by the weighted average number of common shares outstanding (basic and diluted) in the period. Management believes adjusted net earnings is a more appropriate measure of operating performance as it excludes items which do not relate to ongoing operating activities. The following table provides a reconciliation of the Company\u2019s net earnings to adjusted net earnings:<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-table\">\n    <table>\n        <thead>\n            <tr>\n                <th><\/th>\n                <th colspan=\"2\">Three Months Ended March 31<\/th>\n            <\/tr>\n            <tr>\n                <th><\/th>\n                <th>2021<\/th>\n                <th>2020<\/th>\n            <\/tr>\n            <tr>\n                <th><\/th>\n                <th>$&#8217;000<\/th>\n                <th>$&#8217;000<\/th>\n            <\/tr>\n        <\/thead>\n        <tbody>\n            <tr>\n                <td><strong>Shareholders\u2019 net earnings (loss)<\/strong><\/td>\n                <td>2,585<\/td>\n                <td>(5,876)<\/td>\n            <\/tr>\n            <tr>\n                <td><strong>Adjustments, net of tax:<\/strong><\/td>\n                <td><\/td>\n                <td><\/td>\n            <\/tr>\n            <tr>\n                <td><strong>Restructuring expenses<\/strong><\/td>\n                <td>47<\/td>\n                <td>407<\/td>\n            <\/tr>\n            <tr>\n                <td><strong>Business acquisition expenses<\/strong><\/td>\n                <td>51<\/td>\n                <td>55<\/td>\n            <\/tr>\n            <tr>\n                <td><strong>Adjusted net earnings (loss)<\/strong><\/td>\n                <td>2,683<\/td>\n                <td>(5,414)<\/td>\n            <\/tr>\n        <\/tbody>\n    <\/table>\n<\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">2) Book value per share \u2013 book value is shareholders\u2019 equity and is the same as the net asset value (calculated as total assets minus 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 as of a particular date.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">3) Funds employed are the Company\u2019s finance receivables and loans, an IFRS measure. Average funds employed are the average finance receivables and loans calculated over a particular period.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Accord Financial Corp. (TSX \u2013 ACD) today released its financial results for the quarter ended March 31, 2021. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards.<\/p>\n","protected":false},"author":1,"featured_media":5080,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[139],"tags":[],"location":[],"class_list":["post-5056","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-releases"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>05\/05\/2021 | Accord Announces Strong First Quarter Revenue and Earnings | Accord Financial<\/title>\n<meta name=\"description\" content=\"Accord financial results - Strong first quarter revenue and net earnings attributable to shareholders report for the quarter ended March 31, 2021.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/accordfinancial.com\/staging\/accord-announces-strong-first-quarter-revenue-and-earnings\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"05\/05\/2021 | Accord Announces Strong First Quarter Revenue and Earnings | Accord Financial\" \/>\n<meta property=\"og:description\" content=\"Accord financial results - 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