Chesswood Group Limited

Chesswood Group Limited

August 07, 2012 08:30 ET

Chesswood Announces Results for Q2 2012

Net earnings for the three and six-month periods increase by more than 50%

TORONTO, ONTARIO--(Marketwire - Aug. 7, 2012) - Chesswood Group Limited ("Chesswood") (TSX:CHW), announced today its results for the six-months and second quarter ended June 30, 2012.

Chesswood's earnings reflected continued growth in Pawnee Leasing's portfolio along with excellent portfolio performance. Chesswood's net income more than doubled for the second quarter, compared to the second quarter of last year, while net earnings for the first six months of this year were up by more than 50% over the prior year.

"We are extremely pleased with our excellent results in the first half of the year. Each of our businesses posted strong operating results for the quarter" said Barry Shafran, Chesswood's President and CEO."While the economic environment in the U.S. is dominated by uncertainty, we remain focused on strengthening and growing each of our businesses" added Shafran.

Case Funding's portfolio also grew and exceeded $3.5 million by quarter end, generating finance income that resulted in a small operating profit before non-cash share-based compensation and an accrual for a potential earn-out bonus. Acura Sherway began selling two new Acura models in the quarter - the new ILX entry level sedan and the newly redesigned RDX sport utility vehicle - and grew its earnings in the quarter on the heels of the introduction of these long awaited new products.

Financial Highlights For the Three Months For the Six Months
(in CDN $000's, except EPS) Ended June 30 Ended June 30
2012 2011 2012 2011
Income before taxes, fair value adjustments and unrealized foreign exchange $4,005 $2,734 $7,681 $6,082
Net Income $2,307 $1,077 $4,208 $2,782
Adjusted EBITDA(1) $4,506 $3,344 $8,792 $7,369
Earnings Per Share - basic $0.20 $0.10 $0.37 $0.26
(1) - See "Non-GAAP Measures" below.

Non-GAAP Measures

Adjusted EBITDA is not a recognized measure under generally accepted accounting principles and does not have a standard meaning. Accordingly, this measure may not be comparable to similar measures presented by other issuers.

Please refer to Chesswood's Management Discussion and Analysis for the three and six- month periods ended June 30, 2012 for additional information concerning this measure and a reconciliation of this measure to the consolidated net income for the relevant period.

About Chesswood Group Limited

Chesswood 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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