+++ Zertifikate Performance-Studie 2021 belegt: 💰 +5,2 % p.a. RENDITE durchschnittlich mit defensiven ZERTIFIKATEN der Raiffeisen Centrobank +++-w-
03.08.2021 23:30

Chesswood Announces Strong Second Quarter 2021 Results


TORONTO, Aug. 3, 2021 /CNW/ - Chesswood Group Limited ("Chesswood" or the "Company") (TSX: CHW), a publically traded North American commercial equipment finance provider for small and medium-sized businesses, today reported its results for its second quarter ended June 30, 2021. 

Q2 2021 Highlights

  • Gross finance receivables at quarter end of $1.24 billion, up 33% from Q1 2021
  • Earnings growth of 8% quarter over quarter to $0.40 per fully diluted share (despite a $2.2 million non-cash charge associated with the merger between Blue Chip and Vault Credit Corporation)
  • Strong free cash flow generation of $8.1 million, or $0.45 per fully diluted share, in the quarter
  • Record portfolio collections resulting in net portfolio recoveries of $1 million
  • Closed the merger with Vault Credit Corporation creating one of Canada's largest independent equipment finance companies

"The second quarter of 2021 was further evidence of the momentum we have built across each of our business units.  We saw strength in originations continue throughout Q2 along with exceptional portfolio performance" said Chesswood CEO Ryan Marr.  "Our net recoveries in the quarter demonstrate the credit discipline of our portfolio team in addition to the refined collections process developed over the 30+ years of being in business."

"In addition, we closed the merger of Blue Chip Leasing ("Blue Chip") and Vault Credit Corporation ("VCC"), creating one of Canada's largest independent equipment finance organizations.  We are excited to be working with the talented people at VCC and welcome them to the Chesswood family."

Summary of Second Quarter Results

The Company reported consolidated net income of $7.8 million in the three months ended June 30, 2021 compared to net income of $1.4 million in the same period in 2020, an increase of $6.4 million year-over-year.  Other than one-time charges taken in Q2 2020, better portfolio performance and strong collections are responsible for the improvement in net income.

On a constant currency basis, net income would have been $1.8 million higher for the quarter (or $0.11 per share).

The U.S. Equipment Finance segment (Pawnee Leasing and Tandem Finance) reported interest revenue on leases and loans of $21.6 million and ancillary and other income of $2.0 million, a total decrease of $2.5 million year on year.  The decrease is a result of an increasing weighting of prime receivables and a decrease in the foreign exchange rate.

The Canadian Equipment Finance segment reported interest revenue on leases and loans of $5.4 million and ancillary and other income of $1.4 million, a total increase of $3.0 million year on year.  The increase is a result of a larger portfolio of receivables in our Canadian operations due to the merger of Blue Chip and VCC. 

Overall operating costs were up $3.9 million year over year to $13.5 million.  Operating expenses were up primarily due to the merger and supporting growth in the U.S. segment, resulting in an increase in average full-time employees for the period. 

Free cash flow for the period was $8.1 million, up $4.3 million from Q2 2020.  The increase in free cash flow is mainly the result of net recoveries in the period, compared to net charge-offs in Q2 2020. There were also no restructuring costs, compared to $5.8 million in the second quarter of 2020 related to COVID. In addition to these items, on a constant currency basis, free cash flow would have been $1.4 million higher for the quarter.


The origination pipeline remains strong as we move into Q3 for both our U.S. and Canadian business units. 

We see additional opportunities to enhance our balance sheet and improve our cost of funds in the second half of the year. Interest rates remain low, providing us an opportunity to further reduce funding costs.

We continue to look for organic and inorganic opportunities for expansion in the Canadian and U.S. market.

Financial Highlights

For the Three Months

For the Six Months

(in CDN $000's, except EPS)

Ended June 30

Ended June 30










Interest expense





Net charge-offs















Other expenses










Adjusted Operating Income(1)





  Decrease/(Increase) in allowance for credit






   Amortization – intangible assets





Operating income (loss)





   Restructuring costs





   Goodwill and intnagible assets impairment





   Mark-to-market adj. on swaps/caps 





   Other non-cash items





Income (loss) before taxes





Net income (loss)





Earnings Per Share - basic





Free Cash Flow





Free cash flow per share - basic





(1)  - See "Non-GAAP Measures" below.

Non-GAAP Measures

Adjusted Operating Income and Free Cash Flow are not recognized measures under International Financial Reporting Standards and do not have a standard meaning. Accordingly, these measures may not be comparable to similar measures presented by other issuers. Please refer to the Company's Management Discussion and Analysis in Chesswood's 2021 Second Quarter Report for additional information concerning these measures and a reconciliation of these measures to the Company's consolidated income before taxes.

About Chesswood Group Limited

Through two wholly-owned subsidiaries in the United States and two subsidiaries in Canada, Chesswood Group Limited is North America's only publicly traded commercial equipment finance company focused on small and medium-sized businesses. Colorado-based Pawnee Leasing Corporation, founded in 1982, finances a highly diversified portfolio of commercial equipment leases and loans through relationships with over 600 independent brokers in the United States. Tandem Finance Inc. provides financing in the U.S. through the equipment vendor channel. In Canada, Blue Chip Leasing Corporation has been originating and servicing commercial equipment leases and loans since 1996, and today operates through a nationwide network of more than 50 independent brokers. Vault Credit Corporation specializes in equipment leases and commercial loans across Canada, allowing for customizable financing solutions while catering to a wide spectrum of credit tiers, equipment types and sectors by offering industry-leading service levels, experienced underwriters and account administrators.

Based in Toronto, Canada, Chesswood Group Limited's shares trade on the TSX under the symbol CHW.

To learn more about Chesswood Group Limited, visit www.ChesswoodGroup.com.

The websites of Chesswood Group Limited's operating businesses are:

www.PawneeLeasing.com          www.BlueChipLeasing.com 
www.TandemFinance.com          www.VaultCredit.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 (including the ultimate duration and severity of the COVID-19 pandemic and the successful integration of Blue Chip Leasing and Vault Credit Corporation). By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. Additional information about the risks and uncertainties of the Company's businesses and material factors or assumptions on which information contained in forward-looking statements is based is provided in its publicly filed documents, including the Company's annual information form and management's discussion and analysis of the financial condition and performance, which are available electronically through the System for Electronic Document Analysis and Retrieval at www.sedar.com.


SOURCE Chesswood Group Limited

Börse Stuttgart Anlegerclub

Heute im Fokus

DAX eröffnet stark -- Asiens Börsen uneins -- EZB könnte Inflationsziel womöglich bis 2025 erreichen -- Cerberus zeigt Interesse an Commerzbank-Aktien des Bundes -- GM im Fokus

Vitesco-Aktie vorbörslich gefragt nach Kaufempfehlung durch Deutsche Bank. trans-o-flex will noch in diesem Jahr an die Börse. Biotest wird nach Spanien verkauft. CIMIC erhält Auftrag für Western Sydney Airport. Umfrage: Jeder zweite Deutsche investiert an der Börse. IG Metall ruft zu Warnstreik bei Airbus auf. Infineon eröffnet neues Chipwerk in Österreich.

Die 5 beliebtesten Top-Rankings

Diese Jobs werden künftig Roboter übernehmen
Billiger als der Mensch.
Bei diesen Unternehmen gibt es in Deutschland das höchste Gehalt
Bei diesen Unternehmen gibt es in Deutschland das höchste Gehalt
Rohstoffe: Die Gewinner und Verlierer im August 2021
Welcher Rohstoff macht das Rennen?
Die 30 weltgrößten Unternehmen
Es gibt hunderte milliardenschwere Unternehmen. Die Top 30.
Jobs mit Zukunft und hohem Gehalt
Hier wird man auch künftig noch gut bezahlt
mehr Top Rankings


Wenn morgen Bundestagswahl wäre, wen würden Sie wählen?

finanzen.net zero
finanzen.net zero



Oskar ist der einfache und intelligente ETF-Sparplan. Er übernimmt die ETF-Auswahl, ist steuersmart, transparent und kostengünstig.
Zur klassischen Ansicht wechseln