Q3 Results & Dividend IncreaseIt doesn't get much better than this. I will continue to buy and hold as I have since 2008.
Chesswood Announces Q3 Results and Dividend Increase 16 minutes ago - ACQUIREMEDIA
TORONTO, ONTARIO--(Marketwired - Nov. 9, 2016) - Chesswood Group Limited (the "Company" or "Chesswood") (TSX:CHW) announced today its results for the three and nine months ended September 30, 2016, as well as an increase in its monthly dividend.
The Company generated operating earnings of $7.2 million in the third quarter this year, compared to $6.8 million in the third quarter of last year. Net Income was $5.1 million compared to $3.1 for the same quarter in 2015.
Chesswood's originations in its equipment finance businesses increased by 55% over the third quarter of last year, setting another quarterly record for new business. "We're proud of achieving another milestone in the growth of our commercial portfolio as it exceeded $500 million in gross receivables for the first time," said Barry Shafran, Chesswood's President and CEO.
"Our net income was also excellent this quarter while our operating earnings were impacted by a $1.9 million increase in our non-cash portfolio reserve on behalf of our non-prime U.S. equipment finance portfolio. While our charge-offs in this portfolio were the same as in the last quarter, higher delinquencies drove our reserve increase, consistent with the pattern of seasonality we typically encounter as collections slow in the last four months of the year," added Shafran.
On a nine month basis Chesswood's operating earnings were $24.3 million, an increase of 14% or $3.1 million over the same period in 2015.
"We are also very pleased to provide our shareholders with an increase in our monthly dividend, from $0.065 per share to $0.07 per share, for an increase of 7.7%," added Mr. Shafran. "Our free cash flow has grown consistently over the past three years, since we last raised our dividend in November 2013. Our annualized yield will now rise to 7.3% based on yesterday's closing price," said Mr. Shafran. The dividend will be payable to shareholders of record at the close of business on November 30, 2016 and will be paid on December 15, 2016. Chesswood has designated its dividends as eligible dividends for purposes of the Income Tax Act (Canada).
Financial Highlights For the Three Mths For the Nine Mths (in CDN $000's, except EPS) Ended September 30, Ended September 30, 2016 2015 2016 2015 ---------------------------------------------- Operating Income(1) $ 7,220 $ 6,811 $ 24,331 $ 21,237 Adjusted EBITDA(1) $ 7,168 $ 8,172 $ 24,958 $ 25,034 Net Income $ 5,083 $ 3,140 $ 19,175(2) $ 11,752 Earnings Per Share - basic $ 0.29 $ 0.17 $ 1.08(2) $ 0.73 (1) - See "Non-GAAP Measures" below. (2) - includes gain on sale of EcoHome Financial in the 1st quarter.