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Chesswood Announces Results for Q3 2015

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Chesswood Announces Results for Q3 2015
By Pawnee Leasing On November 4, 2015  0 Comment

Record Q3 Originations in the U.S. and Canada

TORONTO, November 4, 2015 – Chesswood Group Limited (the “Company” or
“Chesswood”) (TSX: CHW) announced today its results for the three and nine-months
ended September 30th.

“We had another strong quarter of originations in all of our businesses, which, along with the
strength of the U.S. dollar, drove the growth in our gross receivables to more than $550
million, from $500 million at June 30th.” said Barry Shafran, Chesswood’s President and
CEO. “In fact, both of our equipment finance businesses, Pawnee and Blue Chip,
experienced record third quarter application flow and origination volumes” Shafran added.

“Our Adjusted EBITDA (1) and Operating Income (1) increased by almost 50% compared to
Q3 last year, a reflection of our portfolio growth and the acquisition in March this year of
Blue Chip and EcoHome, our Canadian finance businesses” said Shafran.

Net Income for the quarter was impacted by an increase in Chesswood’s non-cash
allowance for doubtful accounts of $1.8 million as well as by a non-cash mark-to-market loss
on interest rate swaps of $1.3 million. The Company’s allowance on its U.S. based finance
receivables is calculated according to a formula based largely on the change in 30-day past
due delinquency, which increased during the quarter primarily in the start-up segment of the
lease portfolio, one of the company’s highest yielding products.

Financial Highlights
(in CDN $000’s, except EPS )		 For the Three Months
Ended September 30		 For the Six Months
Ended September 30
2015 2014 2015 2014
Operating Income(1) $7,348 $4,972 $23,006 $16,789
Adjusted EBITDA (1) $8,172 $5,406 $25,034 $17,986
Net Income $3,140 $3,269 $11,752 $9,639
Earnings Per Share – basic $0.17 $0.27 $0.73 $0.82
(1) – See “Non-GAAP Measures” below.

 

Non GAAP Measures

References to Adjusted EBITDA and Operating Income 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 three and nine
-months ended September 30, 2015 for additional information concerning these measures
and a reconciliation of these measures 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.
To learn more about Chesswood, visit www.ChesswoodGroup.com

The separate websites of Chesswood Group Limited’s operating businesses are at www.PawneeLeasing.com , www.WindsetCapital.com , www.BlueChipLeasing.com, www.EcoHomeFinancial.com, www.NStarleasing.com and www.AcuraSherway.com

— 30 —

For more information contact:

Barry Shafran

Chesswood Group Limited

416-386-3099

bshafran@chesswoodgroup.com

 

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.

NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.