Chesswood Income Fund

Chesswood Income Fund

May 11, 2009 16:42 ET

Chesswood Income Fund Announces Results for Q1 2009

TORONTO, ONTARIO--(Marketwire - May 11, 2009) - Chesswood Income Fund (the "Fund") (TSX:CHW.UN) announced today its results for the first quarter of 2009, ended March 31, 2009.

"Our first quarter results reflect growth in Pawnee's portfolio, following the rapid correction in our market in late 2008, that saw the departure of so many of our competitors," said Barry Shafran, the Fund's President and CEO. "Pawnee's portfolio growth in the quarter resulted from a significant increase in application levels, notwithstanding approval levels that were constrained by our focus on adding improved credit quality to our portfolio."

"Our results improved over 2008, despite a continuation of elevated charge-offs at Pawnee and a dramatic change in the new car market, year-over-year, at our Acura dealership," added Shafran. "Last year's first quarter was characterized by near record new car sales, due to strong incentives offered by the manufacturer. In 2009, new car sales in Canada are at very suppressed levels."

The Fund's new car dealership has a strong brand and continues to operate profitably, but at reduced levels from 2008. The changes in the new vehicle market resulted in the majority of the decrease in revenues for the Fund, year-over-year.

Financial Highlights For The Fund For The Three Months
(in CDN $000's) Ended March 31
2009 2008

Revenues $16,430 $22,907

Adjusted EBITDA $1,142 $451

Distributable Cash $855 $688

Distributions(1) $635 $1,207

Net Income before taxes, unrealized
foreign exchange and swap gains/losses $734 $212

Net Income (Loss) $556 ($253)

(1) - includes dividends on 1,478,537 Class B and C shares of Chesswood
US Acquisition Co Ltd. in the quarter, and distributions on 7,040,558
Fund units in January and February, and 6,978,558 Fund units in March.

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 Chesswood's Management Discussion and Analysis for the three-months ended March 31, 2009 for additional information concerning these measures and a reconciliation of these measures to the Fund's consolidated net income for the period.

About Chesswood Income Fund

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

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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