Company Announcements

TORONTO--(BUSINESS WIRE)--May 14, 2025-- Accord Financial Corp. (TSX – ACD) today released its financial results for the quarter ended March 31, 2025. The financial figures presented in this release are reported in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards.

The Company’s President and CEO, Mr. Simon Hitzig, commented: “Throughout 2024 Accord completed important strategic initiatives to streamline the business, control operating expenses and position the Company for a stronger 2025. However, the uncertain business environment continues to weigh on many companies in our core markets. In addition to tempering our credit appetite, the impact of unpredictable trade and economic conditions on our borrowers warrant an elevated allowance for expected credit losses.”

Accord’s finance receivables and loans grew 7.6% in the quarter, closing at $385 million on March 31, 2025, up from $358 million at the start of the year, but down from $447 million on March 31, 2024 (impacted by the sale of the AEF portfolio in September 2024). Average funds employed during the quarter dropped to $379 million compared to $460 million in the same period last year. Reflecting the year-over-year decline in average funds employed, and lower average yields, first quarter revenue came in at $15.5 million compared to $20.7 million in the same quarter last year.

In tandem with the decline in the portfolio, the Company made progress reducing overhead, with first quarter general and administrative expenses coming in at $7.5 million versus $9.5 million in the same period last year. The Company’s cost-control measures led to a pre-provision operating profit, however, the $2.6 million provision for credit losses tipped the Company to a first quarter net loss attributable to shareholders of $1.3 million, compared to net earnings of $632,000 in the first quarter of 2024. The loss of 16 cents per common share caused book value per share to slip to $9.29.

Within the first quarter provision, actual write-offs of $1.1 million were a significant improvement over the same period last year ($1.6 million) and the fourth quarter of 2024 ($10.8 million). To reflect the economic challenges facing a number of our clients, the provision also includes a $1.5 million non-cash increase in the allowance for expected credit losses, which now sits at $9.6 million on the balance sheet, compared to $8.0 million at the start of the year.

Commenting further Mr. Hitzig said, “Leveraging a more streamlined organization, Accord’s portfolio grew in the first quarter, while our overhead declined. Now we’re looking ahead, focused on further strategic initiatives in 2025, including potential additional asset sales, and negotiating to refinance the Company’s main bank facility in late July.”

About Accord Financial Corp.

Accord Financial is one of North America’s most dynamic commercial finance company providing fast, versatile financing solutions including asset-based lending, factoring, inventory finance, equipment finance (in Canada), 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:

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 November 2023. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties including the ability of the Company to reinstate dividends and those risks identified in the Accord's periodic filings with Canadian securities regulators. See Accord's most recent annual information form and most recent management’s discussion and analysis of results of operations and financial condition for a detailed discussion of the risk factors affecting Accord. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250514421386/en/

For further information please visit www.accordfinancial.com or contact:

Irene Eddy
Senior Vice President, Chief Financial Officer
Accord Financial Corp.
40 Eglinton Avenue East, Suite 602
Toronto, Ontario M4P 3A2
(416) 961-0304
ieddy@accordfinancial.com

Source: Accord Financial Corp.