Chesswood Group Limited

TSX : CHW


Chesswood Group Limited

March 13, 2014 07:54 ET

Chesswood Announces Results for 2013

Record pretax earnings of $19.7 million

TORONTO, ONTARIO--(Marketwired - March 13, 2014) - Chesswood Group Limited (the "Company" or "Chesswood") (TSX:CHW) announced today its results for the year ended December 31, 2013.

The Company's income before taxes was $19.7 million for the year, compared to $16.6 million in 2012, an increase of 19%.

"This year was another milestone year for Chesswood. Pawnee generated record earnings, we launched Windset Capital in October, our new U.S. based working capital business, while Case Funding and Acura Sherway posted excellent results which also improved over the prior year," said Barry Shafran, the Company's President and CEO.

Chesswood paid dividends of $8.1 million in 2013, compared to $7.2 million in 2012.

Financial Highlights For the Year
(in CDN $000's, except EPS) Ended December 31
2013 2012
Income before taxes, fair value adjustments, debenture issue costs & unrealized foreign exchange $ 19,881 $ 15,838
Net Income $ 10,905 $ 8,989
Adjusted EBITDA(1) $ 21,588 $ 17,953
Earnings Per Share - basic $ 0.96 $ 0.80
(1) - See "Non GAAP Measures" below.

Other News - Debenture, Northstar Leasing and Windset Growth

On December 16, 2013, Chesswood announced it had completed its offering of $20.0 million aggregate principal amount of 6.50% convertible unsecured subordinated debentures. The Debentures have been listed on the TSX under the symbol CHW.DB.

On February 3, 2014, Chesswood announced that it had purchased of all of the outstanding shares of Northstar Leasing Corporation, a long-standing non-prime commercial equipment finance company, located in Barrie, Ontario. Chesswood now has a North-American small ticket platform and can offer its products and services to brokers and their customers, regardless of which country they operate in. Northstar has decades of experience and management believes that this experience coupled with Pawnee's expertise, will allow the businesses to leverage the strengths of one another.

During February, Chesswood injected an additional U.S.$1.75 million into Windset Capital Corporation to fund growth in its working capital loan portfolio. In conjunction with this additional investment, Pawnee's syndicate of lenders approved amendments to the current banking agreement that provide Windset with access to an additional U.S.$5.0 million of capital from Pawnee's credit facility.

These financing activities reflect the stronger than expected originations of Windset, since its launch in late 2013.

Non GAAP Measures

References to Adjusted EBITDA are not recognized measures under International Financial Reporting Standards and do not have standard meanings. Accordingly, these measures may not be comparable to similar measures presented by other issuers.

Please refer to the Company's Management Discussion and Analysis for the three months and year ended December 31, 2013 for additional information concerning this measure and a reconciliation of this measure to the Company's consolidated net income for the period.

About Chesswood Group Limited

Chesswood is a specialty finance company with operating businesses in both Canada and the U.S.

To learn more about Chesswood Group Limited, visit www.ChesswoodGroup.com. The separate websites of Chesswood Group Limited's operating businesses are at www.PawneeLeasing.com, www.WindsetCapital.com, www.nstarleasing.com, www.CaseFunding.com and www.AcuraSherway.com.

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.

NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

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