Chesswood Income Fund

Chesswood Income Fund

May 03, 2010 09:00 ET

Chesswood Income Fund Announces Results for Q1 2010

TORONTO, ONTARIO--(Marketwire - May 3, 2010) - Chesswood Income Fund (the "Fund") (TSX:CHW.UN) announced today its results for the first quarter of 2010, ended March 31st.

"Our first quarter results reflect a pattern of improved portfolio performance throughout the three-month period at Pawnee Leasing, our largest operating business" said Barry Shafran, the Fund's President and CEO. "We experienced a drop in both delinquencies and net charge-offs in the period, resulting in improved profitability for the Fund. Our 2010 adjusted EBITDA doubled and our net income improved almost fifty-percent, over the first quarter of last year" added Shafran.

Financial Highlights For The Fund For The Three Months
(in CDN $000's, except Per Unit Amounts) Ended March 31
  2010 2009
Revenues $ 18,257 $ 16,408
Adjusted EBITDA $ 2,288 $ 1,142
Distributable Cash $ 1,384 $ 855
Distributions(1) $ 971 $ 636
Net Income before taxes, unrealized        
  foreign exchange and swap gains/losses $ 1,971 $ 734
Net Income $ 825 $ 556
(1) - includes dividends on 1,478,537 Class B and C shares of Chesswood
     US Acquisition Co Ltd. and distributions on 7,767,055 Fund units.    

Non GAAP Measures

References to Adjusted EBITDA and Distributable Cash are not recognized measures under Canadian GAAP and do not have standard meanings under Canadian GAAP. Accordingly, these measures may not be comparable to similar measures presented by other issuers.

Please refer to the Fund's Management Discussion and Analysis for the three-months ended March 31, 2010 for additional information concerning these measures and a reconciliation of these measures to the Fund's consolidated net income for the period.

Proposed Conversion

As previously disclosed, the Fund intends to seek unitholder approval for the conversion from an income trust to a dividend paying corporation at its annual general and special meeting to be held May 13, 2010. It is contemplated that the proposed conversion be completed on or about December 31, 2010.

About Chesswood Income Fund

The Fund is a financial services trust with operating businesses in both Canada and the U.S.

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This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.


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