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Chesswood Announces Year-End Results for 2011

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Chesswood Announces Year-End Results for 2011
By Pawnee Leasing On March 19, 2012  0 Comment

Pretax Income of $12.6 million

 

Chesswood Group Limited (the “Company” or “Chesswood”) (TSX: CHW), announced today results for its year-ended December 31, 2011.

Chesswood posted another year of record earnings before taxes in 2011. “We earned $12.6 million before taxes this past year, driven by the continued doubledigit growth of Pawnee’s portfolio and strong overall portfolio performance” said Barry Shafran, the Company’s President and CEO. “Our business model, which withstood the toughest economic climate in decades, is now showing its strength in a time of growth, as well” added Shafran.

The Company’s audited consolidated financial statements for the years ended December 31, 2011 and 2010 have been filed with the related management discussion and analysis. The 2010 financial statements relate to Chesswood Income Fund (the “Fund”), which was converted from a trust structure into the Company, effective as of January 1, 2011.

Financial Highlights (in CDN $000’s) For the year ended December 31st.
    2011         2010    (1)
Income before Taxes, Fair Value Adjustments of
Other Liabilities (and Distributions in 2010)		   $12,622   $9,603
Net Income (Loss)(1)  $6,509   ($2,650)
Adjusted EBITDA(2)  $14,949   $13,148
Earnings Per Share/Unit – basic(3)  $0.59   $0.41(4)

 

(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 results.

(2) – See “Non-GAAP Measures” below.

(3) – The earnings per share and earnings per unit have been calculated based on the number of shares of the Company or trust units of the Fund outstanding, as applicable, plus the number of shares or units(as applicable) that would have been outstanding assuming the exchange of the Class B and Class C shares of Chesswood US Acquisitionco Ltd. (which are exchangeable by the holders at any time without the requirement to pay any further amounts).

(4) – For comparative purposes, the Fund’s trust units have been treated as equity throughout the year and related fair value adjustments have been made to reflect equity treatment, although the trust units were not considered equity securities for purposes of IFRS.

The common shares of the Company began trading on the Toronto Stock Exchange on January 4, 2011, under the symbol “CHW”. Concurrently, the Fund’s trust units were delisted.

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 years ended December 31, 2011 and 2010 for additional information concerning these measures and a reconciliation of these measures to the consolidated net income for the relevant period.