Accord Financial reported a company record of C$11.887 million ($9.31 million) of net earnings attributable to shareholders in 2021 compared with C$417,000 ($326,600) in 2020, delivering earnings per share of C$1.39 ($1.09) compared with C$0.05 ($0.04) in 2020.
Adjusted net earnings reached C$13.068 million ($10.24 million) in 2021 compared with C$2.032 million ($1.59 million) in 2020, resulting in adjusted earnings per share of C$1.53 ($1.20) compared with C$0.24 ($0.19) in 2020. Accord Financial’s 2021 marks in earnings per share and adjusted earnings per share beat the company’s previous full-year best of C$1.24 ($0.97) and C$1.30 ($1.02), respectively, in 2018. In addition, shareholders’ equity reached C$100 million ($78.32 million) at Dec. 31, 2021, compared with C$90 million ($70.49 million) a year earlier.
Accord Financial also reported that its funds employed, revenue and earnings all accelerated in Q4/21, leading to the strongest quarter of the year for the company. Accord Financial’s Q4/21 revenue increased 43% to C$18.465 million ($14.46 million) from C$12.903 million ($10.11 million) in the same quarter in 2020. This drove shareholders’ net earnings up 158% to C$3.573 million ($2.8 million) compared with the C$1.384 million ($1.08 million) reported in Q4/20. Earnings per share reached $C0.42 ($0.33), up from C$0.16 ($0.13) in Q4/20. Accord Financial boosted book value per share to C$11.68 ($9.15) at year end.
| Summary of Financial Results | ||||
| Q4 | 2021 Overall | |||
| 2021 | 2020 | 2021 | 2020 | |
| C$ | C$ | C$ | C$ | |
| Average funds employed (millions) | 460 | 360 | 402 | 347 |
| Revenue (000s) | 18,465 | 12,903 | 63,480 | 48,501 |
| Net earnings attributable to shareholders (000s) | 3,573 | 1,384 | 11,887 | 417 |
| Adjusted net earnings (000s) | 4,423 | 2,095 | 13,068 | 2,032 |
| Earnings per common share (basic and diluted) | 0.42 | 0.16 | 1.39 | 0.05 |
| Adjusted earnings per common share
(basic and diluted) |
0.52 | 0.24 | 1.53 | 0.24 |
| Book value per share (Dec. 31, 2021) | C$11.68 | C$10.50 | ||
“Accord turned in a record performance in 2021 across every key metric, putting the company squarely back on its pre-pandemic growth and earnings trajectory. Total funds employed rose 33% from year-end 2020, closing 2021 at an all-time high of C$478 million [$374.38 million]. Earnings per share (EPS) followed suit, also notching a record at C$1.39 [$1.09]. With the economy rebounding, we continue to capitalize on innovative product development, deep market presence and financial strength, and look forward to accelerating into 2022,” Simon Hitzig, president and CEO of Accord Financial, said.
Along with growth in funds employed, Accord Financial reported that average yields also rose as its portfolio mix shifted in favor of higher yielding segments, led by Accord Small Business Finance and BondIt Media Capital. These factors combined to drive 2021 revenue to a company record of C$63.480 million ($49.72 million), up 31% from C$48.501 million ($37.99 million) in 2020.
“Since emerging from the economic shutdown in the summer of 2020, Accord has reported six straight quarters of strong financial performance,” Hitzig said. “Accord’s record funds employed at year end set us up for a strong start to 2022. And steady improvement of operating efficiency, diversification and credit quality underpin the foundation, adding an element of stability as we look forward to continued success in the coming years.”
In addition to reporting its Q4/21 and full-year 2021 financial results, Accord Financial also appointed Burt Feinberg and David Spivak to its board, with the two appointments taking effect on April 1.
Feinberg has more than 35 years of experience in corporate finance, middle-market direct lending, asset-based lending and equipment finance. He is currently managing director and head of asset-based lending at Apple Bank in New York, a role he took after several years of advisory work with investment banks, financial institutions and asset managers. Prior to that, he served as managing director and group head of CIT Commercial & Industrial.
Spivak has 30 years of experience as an investment banker, capital markets advisor and CFO for both public and private companies. He is currently president of Brockstreet Capital, an investment and corporate finance advisory firm. The majority of his career was spent at Citigroup in Toronto and New York, where he held multiple positions, including managing director in the investment banking and equity capital markets groups. He is currently a director of Höegh LNG Partners and a past member of the TSX Listings advisory committee.
“Adding veteran talent to our board in key areas will help accelerate our growth plan and galvanize support throughout the investor community,” David Beutel, chairman of Accord Financial, said.
