Accord Announces Second Quarter Financial Results

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeBusiness Wire News ReleasesPMN Press ReleasesThis section is The content in this section is supplied by Business Wire for the purposes of distributing press releases on behalf of its clients. Postmedia has not reviewed the content. by Business Wire Accord Announces Second Quarter Financial ResultsAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountTORONTO — Accord Financial Corp. (TSX – ACD) today released its financial results for the quarter ended June 30, 2026. The financial figures 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 3020262025$$Average funds employed (millions)150395Revenue (000s)6,8248,788Net loss attributable to shareholders (000s)(2,790)(353)Adjusted net loss (000s) (note)(1,403)(244)Loss per common share (basic and diluted)(0.33)(0.04)Adjusted loss per common share (basic and diluted)(0.16)(0.03)Book value per share (June 30)$ 5.11$ 9.19Note: all figures, except for average funds employed, reflect results of continuing operationsDuring the first half of 2026, the Company successfully executed a number of strategic initiatives, notably, a series of transactions to exit the U.S. market. Through these and other initiatives, the outstanding balance on Accord’s senior secured credit facility (the “Bank Facility”) was reduced from $148 million as at December 31, 2025 to $55 million at June 30, 2026. This progress paved the way for a longer-term extension of the Bank Facility; the Company announced on June 15th an amendment extending the maturity to October 31, 2026, to provide time for a comprehensive restructuring and refinancing of the balance sheet.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againProgress has continued; on June 15th, the Company announced it was seeking approval of holders of its listed and unlisted 12% unsecured subordinated debentures due July 31, 2026 (the “Debentures”), with principal outstanding of $26.7 million, to amend certain terms designed to support the Company’s overall refinancing efforts. Subsequent to quarter end, on July 27th, the Company announced the approval of Debenture amendments including extending the maturity date from July 31, 2026 to October 31, 2031 (provided that if the Company doesn’t refinance its Bank Facility by December 31, 2026, the Debentures will instead mature on October 31, 2027), reducing the rate to 7% and providing the Company flexibility to pay interest in cash or continue to accrue (as has been the case since July 1, 2025). The Company also announced similar amendments to the terms of unsecured demand notes and term notes held by the Hitzig family (“Hitzig Notes”), representing principal outstanding of approximately $11 million, reducing the interest rate to 0% for two years from July 31st, and mirroring the maturity dates of the Debentures.Exiting the US, simplifying the portfolio, and extending the Debentures and Hitzig Notes sets the stage to refinance the Bank Facility. The Company’s President and CEO, Mr. Simon Hitzig, commented, “We continue to work with our financial advisors in this regard, aiming for a fourth quarter transaction. If successful, Accord can get back to the business of growing.”Successfully refocusing the Company on SME lending in Canada caused the Company’s finance receivables and loans to decline from $346 million at the start of the year to $142 million at June 30, 2026. Mr. Hitzig further noted, “Accord is now positioned to compete in the market where we have clear competitive advantages, however, the effort to refocus and repay debt has put us at a suboptimal scale. The first half numbers reflect this challenge, compounded by the continuing burden of professional and other fees related to managing and repaying our bank syndicate. Accord must grow again, but meaningful growth requires that we refinance the Bank Facility first.”The Company notes that while progress continues, there are no assurances that it will be able to fully repay its outstanding debt when due or that its lenders will grant further extensions, with uncertainty remaining as to the Company’s ability to continue as a going concern.About Accord Financial Corp.Accord Financial is one of Canada’s most dynamic commercial finance companies providing fast, versatile financing solutions including asset-based lending, factoring, inventory finance, equipment finance and working capital loans. By leveraging our unique combination of deep experience and independent thinking, we craft winning financial solutions for small and medium-sized businesses, simply delivered, so our clients can thrive.For further information please visit www.accordfinancial.com.The Company’s financial statements have been prepared in accordance with IFRS. The Company uses a number of other financial measures to monitor its performance and believes that these measures may be useful to investors in evaluating the Company’s operating performance and financial position. These measures may not have standardized meanings or computations as prescribed by IFRS that would ensure consistency between companies using these measures and are, therefore, considered to be non-IFRS measures. The non-IFRS measures presented in this press release are as follows:1) Adjusted net loss and adjusted LPS. The Company derives these measures from amounts presented in its IFRS prepared financial statements. Adjusted net loss comprises shareholders’ net loss before restructuring and other expenses as well as the tax impact of the adjustments. Adjusted LPS (basic and diluted) is adjusted net loss divided by the weighted average number of common shares outstanding (basic and diluted) in the period. Management believes adjusted net earnings is a more appropriate measure of operating performance as it excludes items which do not relate to ongoing operating activities. The following table provides a reconciliation of the Company’s net loss to adjusted net loss:Three Months Ended June 3020262025$’000$’000Shareholders’ net loss(2,790)(353)Adjustments:Restructuring and other expenses1,887148Tax impact from adjustments(500)(39)Adjusted net loss(1,403)(244)Note: all figures reflect results of continuing operationsThis advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.2) Book value per share – book value is shareholders’ equity and is the same as the net asset value (calculated as total assets minus total liabilities) of the Company less non-controlling interests. Book value per share is the book value or shareholders’ equity divided by the number of common shares outstanding as of a particular date.3) Funds employed are the Company’s finance receivables and loans, an IFRS measure. Average funds employed are the average finance receivables and loans calculated over a particular period.Forward-Looking StatementsThis news release contains certain “forward-looking statements” and certain “forward-looking information” as defined under applicable Canadian securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “continue”, “plans” or similar terminology. Forward-looking statements in this news release include, but are not limited to, statements, management’s beliefs, expectations or intentions regarding the financial position of the Company and the ability of the Company to repay or refinance its outstanding debt obligations. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties including the Company’s overall liquidity and capital resource position and its ability to repay its debt obligations when due and those risks identified in the Accord’s periodic filings with Canadian securities regulators. If any or all of the Company’s outstanding debt obligations are not renewed or replaced upon expiration of their terms, and if the Company is unsuccessful in its ability to generate additional capital from sales of portfolio assets and/or business units and additional alternative financing arrangements to repay same on terms acceptable to the Company, or at all, the Company may not be able to continue to finance its operations and operate as a going concern. See Accord’s most recent annual information form and most recent management’s discussion and analysis of results of operations and financial condition for a detailed discussion of the risk factors affecting Accord. Such forward-looking information represents management’s best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.View source version on businesswire.com: Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.