Chesswood Announces Second Quarter Results for 2016
Results Reflect Record Operating Earnings and Originations
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 08/11/16 -- Chesswood Group Limited (the "Company" or "Chesswood") (TSX: CHW) announced today its results for the three and six months ended June 30, 2016.
The Company generated operating earnings of $9.0 million in the second quarter this year, compared to $8.1 million in the first quarter of this year and $8.4 million in the second quarter of last year. In addition, originations during the quarter were at an all-time high, growing by more than 20% over the second quarter of last year.
Net income and earnings per share (adjusted to eliminate the effects of non-cash mark-to-market adjustments, described in more detail below), also reflected improvements over the prior year. These results are particularly noteworthy because they have been achieved despite the sale of Acura Sherway and EcoHome Financial (which contributed $952,000 of the Adjusted EBITDA, $620,000 of the net income and $0.03 of the earnings per share in the second quarter of 2015). The 2016 results therefore reflect that Chesswood has very quickly replaced the income generated by its sold businesses with significant growth in its more focused financial services companies.
"We''re very pleased with our second quarter results and the significant market penetration that continued during this quarter," said Barry Shafran, Chesswood''s President and CEO. "Application volumes and originations were both at record levels for us during the quarter. We also continued to improve the margin between our dividend payout level and our free cash flow. We''ve been providing shareholders with a superior yield for years, and based on today''s market price that yield is currently at 7.5%."
"On a six month basis our operating income was $17.1 million, an increase of 19% over the same period in 2015, as our portfolio growth continues to drive increased earnings," said Shafran. "We''re also proud of the fact that the growth in our commercial equipment finance businesses have more than offset the effects of our decision to tighten credit requirements in our working capital loan business," Shafran added.
Chesswood continues to experience some volatility in pretax earnings due to mark-to-market adjustments on interest rate swaps and convertible debentures. The Company recorded a non-cash mark-to-market loss of $1.4 million this quarter on these two instruments, compared to a $98,000 gain in the second quarter of 2015, for a variance $1.5 million. These non-cash adjustments are fully reversed as interest rate swaps are used and upon maturity of the debentures in December 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 and six months ended June 30, 2016 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 in the financial services industry with operating businesses in both Canada and the U.S. To learn more about Chesswood, visit .
The separate websites of Chesswood Group Limited''s operating businesses are at , and
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.
Contacts:
Chesswood Group Limited
Barry Shafran
416-386-3099
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 11.08.2016 - 17:24 Uhr
Sprache: Deutsch
News-ID 1452247
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
TORONTO, ONTARIO
Phone:
Kategorie:
Commercial & Investment Banking
Typ of Press Release:
type of sending:
Date of sending:
Anmerkungen:
Diese Pressemitteilung wurde bisher 530 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Chesswood Announces Second Quarter Results for 2016
"
steht unter der journalistisch-redaktionellen Verantwortung von
Chesswood Group Limited (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
