Results Reflect 34% Increase in Operating Income and Gain on the Sale of EcoHome Financial
TORONTO, May 12, 2016 – Chesswood Group Limited (the “Company” or “Chesswood”) (TSX: CHW) announced today its results for the first quarter of 2016, ended March 31, 2016.
Net income was $12.2 million, an increase of $8.7 million from the $3.5 million in net income in the first quarter of 2015. Operating income was $8.1 million compared to $6.0 million, in the same quarter of last year, a 34% improvement. Chesswood’s first quarter was most notable for strong originations, growing operating earnings and a gain on the sale of EcoHome Financial, which was completed in February. While a significant portion of the increase in net income was attributable to the gain on sale of EcoHome Financial, the healthy increases in operating income and Adjusted EBITDA were entirely the result of growth in our operating businesses.
“Our operations continue to generate increasing profitability as our portfolios expand” said Barry Shafran, Chesswood’s President and CEO. “This quarter’s results also reflect our gain on the sale of our former EcoHome Financial consumer business, a gain we shared with our shareholders through a special dividend paid in March” Shafran added.
| Financial Highlights (in CDN $000’s, except EPS ) |
For the Three Months Ended March 31, |
|
| 2016 | 2015 | |
| Operating Income(1) | $8,095 | $6,027 |
| Adjusted EBITDA (1) | $8,724 | $6,872 |
| Net Income | $12,197 | $3,498 |
| Earnings Per Share – basic | $0.69 | $0.27 |
| (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 months and year ended March 31, 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 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 and www.BlueChipLeasing.com
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.