Commercial equipment finance provider Chesswood Group reported its results for the second quarter and six-months ended June 30, 2019. Adjusted operating income for the second quarter was $8 million compared to $9 million in the second quarter of 2018. This measures Chesswood’s operating income before the change in the allowance for credit losses in the period and Tandem Finance’s net expenses.
Free cash flow remained strong and well in excess of the company’s dividend levels.

Chesswood continues to focus on the build-out of its vendor-channel business Tandem Finance. In just its first five months, Tandem has generated originations in excess of initial expectations.

“We’re very pleased with Tandem’s first full quarter of results, after having launched business development efforts just five months ago, in March of this year,” said Barry Shafran, Chesswood president and CEO. “At the same time, we continue to build out the Tandem team and its infrastructure, including the vendor portal through which vendor-partners and borrowers can transact entirely through electronic documents, if desired.”

Other financial highlights for the second quarter included:

• Adjusted Operating Income of $7.961 million, compared to $9.025 million for Q2/2018
• Operating Income of $6.773 million, compared to $8.046 million for Q2/2018
• Income before Taxes of $5.872 million, compared to $8,221 for Q2/2018
• Net income of $3.894, compared to $5.616 million for Q2/2018
• Earnings Per Share (basic) of $0.22, compared to $0.31 for Q2/2018

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