Chesswood Group Limited

Chesswood Group Limited

August 15, 2011 08:00 ET

Chesswood Announces Results for Q2 2011

Portfolio Growth and Low Delinquencies Continue to Generate Strong Results

TORONTO, ONTARIO--(Marketwire - Aug. 15, 2011) - Chesswood Group Limited (the "Company") (TSX:CHW), announced today its results for the second quarter of 2011, ended June 30, 2011.

The Company's income before taxes and fair value adjustments on interest rate swaps and other liabilities totaled $2.7 million in the second quarter of 2011, compared to $2.8 million in the second quarter of 2010. "This year, our second quarter also includes the one-time deduction of $425,000 of acquisition costs on the closing of the purchase of Case Funding, in June" said Barry Shafran, the Company's President and CEO.

The Company's largest business, Pawnee Leasing Corporation, posted another quarter of growth in its portfolio, which exceeded US$120 million for the first time in its history. The performance of the portfolio continued to reflect the strong underlying credit profile of its lessees and their guarantors, with net charge-offs for the quarter returning to levels not seen since 2006.

"We're very pleased by the truly excellent performance of Pawnee, which reflects years of hard work and our successful entrance into the B+ market, back in September 2008" added Shafran.

Financial Highlights For the Three Months For the Six Months
(in CDN $000's ) Ended June 30 Ended June 30
2011 2010(1) 2011 2010(1)
Income before Taxes, Fair Value Adjustments on Swaps and Other Liabilities







Net Income (Loss)(1) $ 1,077 $ 862 $ 2,782 $ (1,480 )
Adjusted EBITDA(2) $ 3,344 $ 3,464 $ 7,369 $ 6,347
(1) - The adoption of International Financial Reporting Standards ("IFRS") resulted in the deduction of the Fund's distributions and a fair value adjustment of its units, amongst other changes, to the Fund's 2010 income.
(2) - See "Non-GAAP Measures" below.

Non GAAP Measures

Reference to Adjusted EBITDA is not a recognized measure under Canadian GAAP and IFRS and does not have a standard meaning under Canadian GAAP and IFRS. 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 and six months ended June 30, 2011 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

The Company operates primarily in the financial services industry 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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