Revenue increased by 17% to a quarterly record C$15.299 million ($11.616 million) in the third quarter compared to C$13.120 million ($9.961 million) last year as a result of higher funds employed. Average funds employed were 35% higher at C$383 million ($291.042 million) in the current quarter compared to C$283 million ($215.052 million) last year. Funds employed at September 30, 2019 were C$385 million.
Net earnings attributable to shareholders rose by 24% or C$621,000 ($471,897) to C$3.237 million ($2.46 million) in the third quarter of 2019 compared to the C$2.616 million ($1.988 million) earned last year. Shareholders’ net earnings rose as a result of a higher net revenue (revenue less interest expense), a lower provision for losses and reduced business acquisition expenses. Earnings per common share were 38 cents compared to 31 cents last year.
Adjusted net earnings increased to C$2.862 million ($2.175 million) from the C$2.842 million ($2.16 million) earned in the third quarter of 2018. Adjusted EPS remained unchanged at 34 cents in the current quarter compared to last year.
Revenue rose by 23% to a nine months record C$41.878 million ($31.823 million) in 2019 compared to C$33.976 million ($25.818 million) last year mainly as a result of higher funds employed. Average funds employed in the first nine months of 2019 increased by 46% to C$373 million ($283.4 million).
Shareholders’ net earnings in the first nine months of 2019 increased by 15% or C$907,000 ($689,229) to C$7.102 million ($5.397 million) compared to $6.195 million in 2018. Shareholders’ net earnings rose for reasons noted above. EPS increased by 12% to 84 cents compared to 75 cents last year. Adjusted net earnings increased by C$118,000 ($89,668) to C$7.075 million ($5.376 million) compared to the C$6.957 million ($5.287 million) earned in the first nine months of 2018. Adjusted EPS remained unchanged at 84 cents in the first nine months of 2019 compared to last year.
Commenting on 2019’s results, the company’s president and CEO, Simon Hitzig, stated, “Accord’s growth path continued through the third quarter, with the loan portfolio, revenue and net earnings showing strong year-over-year growth. First nine months earnings per share of 84 cents drove book value per share to a record high of C$11.07 ($8.41). During the quarter, Accord’s financial position was strengthened by exercising the accordion feature in its bank facility, which increased the company’s facility by C$75 million ($56.992 million) to C$367 million ($27.888 million). In addition, Concentra Bank invested C$5 million ($3.8 million) in a private convertible debenture issue as part of an exciting strategic alliance. Accord’s capacity for portfolio growth has never been stronger.”
Founded in 1978, Accord Financial an independent finance company which serves clients throughout the United States and Canada. Its flexible finance programs cover the full spectrum of asset-based lending, including factoring, inventory finance, equipment finance, trade finance and film/media finance.
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