Accord Announces First Quarter Financial Results
SUMMARY OF FINANCIAL RESULTS |
Three Months Ended |
|
|
2024 |
2023 |
|
$ |
$ |
Average funds employed (millions) |
460 |
451 |
Revenue (000s) |
20,666 |
18,444 |
Net earnings attributable to shareholders (000s) |
632 |
2,019 |
Adjusted net earnings (000s) (note) |
1,532 |
2,158 |
Earnings per common share (basic and diluted) |
0.07 |
0.24 |
Adjusted earnings per common share (basic and diluted) |
0.18 |
0.25 |
Book value per share ( |
|
|
Commenting on the first quarter results, the Company’s President and CEO, Mr.
Accord’s finance receivables and loans closed at
While the portfolio and revenue held up well through the first quarter, expenses grew owing to the lengthy negotiation to amend the primary banking facility. As a result, the Company’s first quarter performance was weighed down by
Commenting further,
As highlighted in its 2023 Annual Report, the Company continues to evaluate a number of strategic initiatives, including the addition of new funding sources, a shift in overall product mix, and the potential to divest one or more non-core subsidiaries.
“The Company is making progress on a range of initiatives to generate additional capital to support portfolio growth and create shareholder value,” added
About
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 (in 2023), professional fees related to bank negotiations (2024), stock-based compensation, business acquisition expenses (primarily 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’s net earnings to adjusted net earnings: |
|
Three Months Ended |
|
|
2024 |
2023 |
|
$’000 |
$’000 |
Shareholders’ net earnings |
632 |
2,019 |
Adjustments, net of tax: |
|
|
Costs associated with single account write-off |
803 |
- |
Restructuring and other expenses |
97 |
139 |
Adjusted net earnings |
1,532 |
2,158 |
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, and the duration of the suspension of the quarterly dividend announced in
View source version on businesswire.com: https://www.businesswire.com/news/home/20240514909886/en/
For further information please visit www.accordfinancial.com or contact:
Senior Vice President, Chief Financial Officer
(416) 961-0304
ieddy@accordfinancial.com
Source: