Accord Financial Announces Fourth Quarter and Fiscal 2023 Financial Results
SUMMARY OF FINANCIAL RESULTS
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Three Months Ended
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Year Ended
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2023 |
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2022 |
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2023 |
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2022 |
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$ |
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$ |
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$ |
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$ |
Average funds employed (millions) |
503 |
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443 |
|
472 |
|
450 |
Revenue (000s) |
23,898 |
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18,370 |
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79,705 |
|
67,490 |
(Loss) net earnings attributable to shareholders (000s) |
(7,575) |
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(3,663) |
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(14,625) |
|
1,427 |
Adjusted net earnings (loss) (000s) (note) |
3,698 |
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(1,828) |
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5,817 |
|
3,463 |
(Loss) earnings per common share (basic and diluted) |
(0.89) |
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(0.42) |
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(1.71) |
|
0.17 |
Adj. earnings per common share (basic and diluted) |
0.43 |
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(0.21) |
|
0.68 |
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0.40 |
Book value per share ( |
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Accord generated steady top line performance in 2023, with finance receivables and loans (“funds employed”) averaging
The Company’s President and CEO, Mr.
Leading up to the fourth quarter headwinds, Accord’s funds employed grew 9% from
While the top line, and adjusted earnings, reflected positive operating performance, net earnings were impacted by several significant non-recurring items. In addition to the single account write-off, the Company wrote off the remaining
Given the changes in Accord’s equity base and primary bank facility, the Company is evaluating additional funding sources, including various private market financing arrangements to support, replace or add to current debt facilities. In addition, the Company is exploring a number of strategic initiatives to generate additional cash and capital to support portfolio growth and create shareholder value.
Looking ahead,
About
Accord is North America’s most dynamic commercial finance company providing fast, versatile financing solutions including asset-based lending, 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.
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 evaluating the Company’s 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:
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’ net earnings before goodwill impairment, net single account loss, stock-based compensation, business acquisition expenses (primarily amortization of intangible assets) and restructuring expenses (which include non-recurring expenses associated with amendments to debentures in 2023). 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 an 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’s net earnings to adjusted net earnings (in $000s): |
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Three Months Ended |
Year Ended |
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2023 |
2022 |
2023 |
2022 |
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Shareholders’ net earnings |
(7,575) |
(3,663) |
(14,625) |
1,427 |
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Adjustments, net of tax: |
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8,729 |
1,384 |
8,729 |
1,384 |
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Net single account write-off and associated costs |
2,563 |
- |
10,961 |
- |
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Restructuring and other expenses |
(19) |
451 |
752 |
652 |
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Adjusted net earnings |
3,698 |
(1,828) |
5,817 |
3,463 |
2) |
Book value per share – book value is shareholders’ 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 or shareholders’ equity divided by the number of common shares outstanding as of a particular date. |
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3) |
Funds employed are the Company’s finance receivables and loans, an IFRS measure. Average funds employed are the average finance receivables and loans calculated over a particular period. |
Forward-Looking Statements
This news release contains certain "forward-looking statements" and certain "forward-looking information" as defined under applicable Canadian securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management's beliefs, expectations or intentions regarding the financial position of the Company, the collectability of the account under investigation described above, the effect the foregoing may have on the funding available to maintain the Company’s current pace of portfolio growth, and the duration of the suspension of the quarterly dividend announced in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240325335182/en/
For further information please visit www.accordfinancial.com or contact:
Senior Vice President, Chief Financial Officer
(416) 961-0304
ieddy@accordfinancial.com
Source: