ACD - <span class="din">Accord Announces Second Quarter and First Half Earnings, Declares a 7% Increase in Quarterly Dividend and Resolves to Renew Normal Course Issuer Bid</span> (CAD 0.08)

Company: Accord Financial
Stock Name: ACD
Amount: CAD 0.08
Announcement Date: 24/07/2012
Record Date: 13/08/2012

Dividend Detail:

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TORONTO, July 24, 2012 /CNW/ - Accord Financial Corp. (TSX - ACD), a
leading North American provider of factoring and other asset-based
financial services to businesses, today released its interim unaudited
consolidated financial results for the three and six months ended June
30, 2012.�� The financial results presented in this release are reported
in Canadian dollars and have been prepared in accordance with
International Financial Reporting Standards.

��

SUMMARY OF FINANCIAL RESULTS

����������������������������������������������������������������������������������������������������������������������������������������������

Three Months Ended June 30

Six Months Ended June 30

��

2012

2011

2012

����2011

��

��

��

��

��

��

��

��

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Factoring volume (millions)

$

443

$

455

$

880

$

937

��

��

��

��

��

��

��

��

��

Revenue��

$

6,322,501

$

6,828,201

$

12,002,125

$

13,695,478

��

��

��

��

��

��

��

��

��

Net earnings

$

1,243,038

$

��1,393,639

$

2,126,254

$

��2,992,107

��

��

��

��

��

��

��

��

��

Basic and diluted earnings

$

0.15

$

0.16

$

0.25

$

0.33

��

per common share

��

��

��

��

��

��

��

��

Basic and diluted weighted

��

��

��

��

��

��

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average�� number of shares

��

��8,515,898

��

��8,948,580

��

��8,525,571

��

��8,975,460

��

��

��

��

��

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Net earnings for the second quarter of 2012 declined 11% to $1,243,038
compared to $1,393,639 last year. Earnings declined mainly due to lower
revenue and, to a lesser extent, a higher provision for credit and loan
losses.�� Earnings per share were 15 cents compared to 16 cents last
year. Factoring volume declined 3% to $443 million compared to $455
million last year largely due to lower non-recourse volume.�� Revenue
decreased 7% to $6,322,501 compared to $6,828,201 last year mainly due
to lower non-recourse volume, and somewhat lower average funds employed
and yields thereon.

Net earnings for the first six months of 2012 declined 29% to $2,126,254
compared with $2,992,107 in 2011 for similar reasons to those noted
above. Earnings per share were 25 cents compared to 33 cents last year.
Factoring volume for the first half of 2012 declined 6% to $880 million
largely as a result of lower non-recourse volume.�� Revenue decreased
12% to $12,002,125 compared to $13,695,478 last year for reasons noted
above.

Commenting on the second quarter and first half 2012 results, Mr. Tom
Henderson, the Company's President and CEO, stated: "Our earnings are
weaker compared to last year but we expect that the second half of 2012
will be better than the first half.�� The earnings for the quarter just
ended do not yet reflect the impact of the marketing initiatives Accord
has undertaken.�� However, where the results of those initiatives can
clearly be seen is in the build-up of funds employed that has occurred
in our recourse factoring business, particularly in the U.S.�� Funds
employed have increased 29% since the beginning of 2012 to $116 million
at June 30, 2012 and are within touching distance of our record high
$120 million. In addition, the pipeline of prospective transactions
continues to be satisfactory.�� This augurs well for the Company's
recourse business as we head into the second half of the year. Our
non-recourse business is also ramping up its marketing campaign for our
new product, AccordOctet."

The Company's Board of Directors today declared an increased quarterly
dividend of $0.08 per common share, payable September 4, 2012 to
shareholders of record August 15, 2012. The Board also resolved,
subject to regulatory approval, to renew its normal course issuer bid
which expires August 7, 2012.

��

��

SOURCE: Accord Financial Corp.

For further information:

Please contact:

Stuart Adair
Vice President, Chief Financial Officer
Accord Financial Corp.
77 Bloor Street West, 18^th floor
Toronto, ON�������� M5S 1M2
(416) 961-0304 Ext. 207
sadair@accordfinancial.com