Chesswood Income Fund

Chesswood Income Fund

August 11, 2009 09:00 ET

Chesswood Income Fund Announces Results for Q2 2009

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Chesswood Income Fund (the "Fund") (TSX:CHW.UN) announced today its results for the second quarter and six months ended June 30, 2009.

"We're pleased that our second quarter of 2009 reflected a continuation of the pattern we experienced in the first quarter, of an improvement in delinquencies in our portfolio at Pawnee Leasing. While net charge-offs remained relatively level, we are hopeful that the improved delinquency levels will result in lower charge-offs in the coming months." said Barry Shafran, the Fund's President and CEO.

"Our income before realized and unrealized foreign exchange gains and losses (and before the goodwill impairment taken in the same period last year) showed improvement year-over-year, notwithstanding that our Acura dealership had record earnings in the first half of last year, due to very strong retail incentives for Canadian consumers" added Shafran.

On July 14, 2009, the Fund announced an increase in the monthly distributions commencing in the third quarter of 2009 from $0.025 to $0.03 per unit.

The Fund continued to repurchase units under its issuer bid, however the limits to this process make the repurchase of significant volumes challenging. At current trading prices, the Fund believes that repurchasing units using available excess cash is in the best interests of the Fund and its unitholders.

Financial Highlights for the Fund
(in CDN $000's, except Per Unit Amounts)

For The Three Months For The Six Months
Ended June 30 Ended June 30
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2009 2008 2009 2008
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Revenues $ 21,698 $ 23,321 $ 38,106 $ 46,228

Adjusted EBITDA $ 1,739 $1,438 $ 2,881 $1,889

Distributable Cash $ 1,210 $909 $ 2,065 $1,597

Distributions(1) $634 $1,230 $ 1,269 $2,437

Net Income before foreign exchange
gain/loss, unrealized and swap
gains/losses and goodwill
impairment $ 1,337 $1,129 $ 2,071 $1,341

Goodwill Impairment - ($14,823) - ($14,823)

Net Income (Loss) $ 2,142 ($13,586) $ 2,698 ($13,839)

(1) - includes dividends on 1,478,537 Class B and C shares of Chesswood
US Acquisition Co Ltd. and distributions on 7,040,558 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 and six months ended June 30, 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.

For more information visit

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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