Fifth Consecutive Record Year of Earnings
TORONTO, March 17, 2016 – Chesswood Group Limited (the “Company” or “Chesswood”)
(TSX: CHW) announced today its results for the three months and year ended December
31, 2015.
Chesswood posted its fifth consecutive year of record earnings from both a net income and
operating income (1) perspective, during a very busy 2015 for the Company. Net Income was
$19.8 million, up from $11.5 million in 2014, while operating income was $28.8 million
compared to $19.6 million last year. Chesswood’s two largest entities, Pawnee Leasing and
Blue Chip Leasing, had originations growth of 37% and 47% respectively, to drive the record
earnings.
The Company’s operating earnings reflect the pretax profits from Pawnee Leasing, Blue
Chip Leasing and Windset Capital. During the year, Chesswood sold the assets of Case
Funding, as well as Acura Sherway, in February and November, respectively, and
completed the sale of EcoHome Financial early in 2016. These businesses are reflected as
discontinued operations in Chesswood’s results for the fourth quarter and year ended
December 2015 (and comparative values) and therefore their earnings and the net gains on
sale are not included in operating earnings.
“We are very proud of achieving another record year and of the efforts of our extraordinary
team” said Barry Shafran, Chesswood’s President and Chief Executive Officer. “We believe
that our North-American equipment finance businesses are extremely well positioned to
continue to grow and to make use of our very strong balance sheet and access to multiple
funding sources, in pursuit of market share” Shafran added.
Financial Highlights (in CDN $000’s, except EPS ) |
For the Three Months Ended December 31, |
For the Year Ended December 31, |
||
2015 | 2014 | 2015 | 2014 | |
Operating Income(1) | $7,547 | $4,002 | $28,784 | $19,632 |
Adjusted EBITDA (1) | $7,395 | $4,989 | $32,429 | $22,975 |
Net Income | $8,052 | $1,900 | $19,804 | $11,539 |
Earnings Per Share – basic | $0.46 | $0.16 | $1.19 | $0.98 |
(1) – See “Non-GAAP Measures” below. |
Operating income for the fourth quarter was $7.5 million, compared to $6.8 million in the
third quarter of this year and $4.0 million in the fourth quarter of 2014. Chesswood’s gross
receivables from continuing operations totaled $480 million at December 31, 2015, up from
$451 million at the end of the third quarter.
Chief Operating Officer to Assume New Role as Strategic Advisor
Chesswood also announces that Daniel Wittlin has entered into a new agreement to serve
as a strategic advisor to Chesswood under which he will seek out for Chesswood expansion
opportunities in our current and new markets, as well as provide ongoing counsel to senior
management.
Mr. Wittlin became a director, officer and significant shareholder of Chesswood upon
Chesswood’s acquisitions of Blue Chip Leasing Corporation and EcoHome Financial Inc. in
March 2015. Chesswood did not have a chief operating officer prior to Mr. Wittlin’s
appointment, and there are no current plans to appoint a replacement chief operating
officer. Mr. Wittlin will continue to serve as a director of Chesswood and remains
Chesswood’s largest shareholder. Mr. Wittlin’s shareholdings are governed by a multi-year
escrow agreement.
“Both our board and management greatly appreciate the role that Daniel provided in the
successful integration of Blue Chip Leasing and the divestiture of EcoHome Financial. We
value the entrepreneurial spirit and industry knowledge that Daniel provides and look
forward to the continuing benefit of his strategic advice as a director and in his role of
advisor” stated Barry Shafran.
Adjustment to Conversion Price of Convertible Debentures (TSX: CHW.DB)
The Company has adjusted the $21.25 conversion price of the 6.5% convertible debentures
effective February 18, 2016 to $20.19 per Common Share as a result of the previously
announced special dividend of $0.50 per Common Share, in accordance with section 6.5(a)
of the trust indenture that governs the debentures. The debentures mature on December
31, 2018.
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 months
and year ended December 31, 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.BlueChipLeasing.com , www.WindsetCapital.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.
Contact Information:
800.864.4266
Fax 970.482.2666
3801 Automation Way
Suite 207
Fort Collins, Colorado 80525
Share On