Chesswood Group released its results for the third quarter and nine-months which ended on September 30, 2019.

The third quarter was an exceptionally busy time for Chesswood’s treasury activities, culminating in October with the renewal of the company’s $250 million revolving borrowing facility, the renewal of subsidiary Pawnee Leasing’s $250 million warehouse facility and completion of Pawnee Leasing’s first marketed securitization transaction in the U.S. for $254 million of receivables.

Free cash flow for the quarter continued to be strong, even after being reduced by Tandem Finance’s net expenses from its start-up this year, and higher charge-offs. As well, while the quarter’s originations of $100 million increased modestly over the third quarter of last year, October’s originations at Pawnee Leasing reached another all-time high while Tandem Finance continued to grow, setting the table for a potentially strong fourth quarter of originations.

“In our opinion, our free cash flow, a measure which eliminates the impact of non-cash charges and
recoveries, results in a clearer view of our operational performance, and is consistent with measurements used by management” said Barry Shafran, Chesswood president and CEO. “Chesswood continues to remain focused on maintaining the strategic approach and disciplines we believe will position us to maintain, and even strengthen, our competitive position through what we believe are the later stages of a cycle for our industry. Our markets continue to experience aggressive approaches to credit and pricing decisions by many competitors.”

• Financial highlights for the quarter included:

  $2.977 million in net income in 2019, versus $6.092 million in the same quarter in 2018

• Earnings per share of $0.17 for Q3/2019 versus $0.34 for Q3/2018
• Adjusted operating income for the quarter of $5.09 million versus $9.415 million for the third quarter in 2018

Financial highlights for YTD included:

• $9.942 million in net income in 2019, versus $17.608 million YTD in 2018
• Earnings per share of $0.56 for YTD 2019 versus $0.98 for YTD 2018
• Adjusted operating income YTD of $17.45 million versus $25.8 million YTD in 2018

Through three wholly-owned subsidiaries in the U.S. and Canada – Pawnee Leasing, Blue Chip Leasing, Tandem Finance – Chesswood Group is North America’s only publicly-traded commercial equipment finance company focused on small and medium-sized businesses.