Accord Financial Corp. (TSX – ACD) has announced its financial results for the quarter ending June 30, 2024. All figures are presented in Canadian dollars and comply with International Financial Reporting Standards (IFRS).
Financial Highlights
- Average Resources Committed: $428 million (2024), compared to $455 million (2023)
- Turnover: $19.957 million (2024), up from $17.933 million (2023)
- Net Income (Loss) Attributable to Shareholders: $(1.149 million) (2024), compared to $(263,000) (2023)
- Adjusted Net Income (Loss): $(764,000) (2024), compared to $(166,000) (2023)
- Earnings (Loss) Per Share: $(0.13) (basic and diluted) (2024), compared to $(0.03) (2023)
- Adjusted Earnings Per Share: $(0.09) (basic and diluted) (2024), compared to $(0.02) (2023)
- Book Value Per Share: $9.78 (June 30, 2024), down from $11.79 (June 30, 2023)
Simon Hitzig, President and CEO, commented on the results: “With inflation easing and interest rates adjusting, SMEs are returning to normal operations. However, we remain cautious from a credit perspective.”
As of June 30, 2024, Accord’s financial receivables and loans (“the Portfolio”) totaled $431 million, down from $479 million a year ago. Average committed funds for the second quarter were $428 million, compared to $455 million in the same period last year. Despite this decline, increased average yields led to second-quarter revenue of $20 million and first-half revenue of $40.6 million, up from $36.4 million the previous year.
Although revenues improved, rising expenses exceeded revenue growth. Interest expense increased due to an amendment fee from the first quarter, now amortized over the remaining term of the bank facility (through July 2025). The provision for credit losses rose to $3.4 million for the quarter, with $1.1 million representing a non-cash increase in the allowance for losses, now totaling $10.6 million.
Higher expenses, despite reduced overhead costs, resulted in a net loss attributable to shareholders of $1.1 million for the quarter, compared to a net loss of $263,000 in the same quarter last year. Year-to-date net loss attributable to shareholders stands at $517,000. However, year-to-date adjusted earnings were positive at $768,000, or 9 cents per common share. Book value per common share decreased slightly to $9.78 from $9.80 at the start of the year.
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About Accord Financial Corp.
Financial Agreement
Non-IFRS Measures
The Company’s financial statements comply with IFRS. However, Accord uses various non-IFRS measures to monitor performance, which may not have standardized definitions or methods under IFRS. These measures include adjusted net income (loss), adjusted EPS/LPS, and book value per share.
Forward-Looking Statements
This release contains forward-looking statements, which involve risks and uncertainties. Actual results may differ materially. For detailed discussions on risk factors, refer to Accord’s most recent Annual Information Form and Management’s Discussion and Analysis of Operating Results and Financial Condition.
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