Accord Financial (ACD) Q3 2024 earnings summary

Executive summary

• Q3 revenue rose to $21.2M from $19.4M YoY despite lower average funds employed; higher yields and the AEF leasing-portfolio sale gain supported results.

• Net loss attributable to shareholders was $772K; pre-provision operating profit was positive, but credit-loss provisions drove the quarter to a loss.

• The September 30 sale of leasing assets advanced a refocus on core businesses and contributed to higher tangible book value per share.

Financial highlights

• Q3 revenue was $21.213M versus $19.430M in 2023; 9M revenue increased 10.8% to $61.8M from $55.8M.

• Q3 net loss attributable to shareholders was $772K versus $8.806M in 2023; 9M net loss was $1.3M versus $7.1M a year earlier.

• Q3 adjusted net loss was $1.329M versus adjusted net earnings of $127K in 2023; adjusted loss per share was $0.16 versus earnings per share of $0.01.

• 9M adjusted net loss was $562K, or $0.07 per common share; this measure excludes the AEF sale gain and other specified items.

Outlook and guidance

• Positive pre-provision operating performance was described as setting a path back to profitability, while challenging conditions and credit losses remain headwinds.

• Strategic priorities include potential additional non-core asset sales to strengthen the balance sheet, streamline operations and reposition for future success.