Chesswood Group Reports Q3 Results, Provides COVID-19 Update

November 12, 2020, 07:10 AM

Filed Under: Corporate Earnings

Related: Blue Chip Leasing, Chesswood Group, COVID-19, Pawnee Leasing, Ryan Marr, Tandem Finance Inc.

Chesswood Group Limited, a North American commercial equipment finance provider for small and medium-sized businesses, reported its results for the third quarter and provided a COVID-19 update.

The company reported net income of $7.5 million in the third quarter, up from $2.8 million in the third quarter 2019. Adjusted operating income was $3.8 million, down from $5.1 million a year ago.

"Our efforts to return customer contracts to their regular payment schedules continued in Q3, with total modified leases and loans declining to 5.8 percent in the U.S. and to 1.8 percent in Canada" said Ryan Marr, President and CEO. "As a result, our charge-offs and allowance for credit losses declined meaningfully in the quarter, resulting in strong profitability. As well, we are in the process of appropriate rehires of employees at our operating companies."

"In addition, we successfully repositioned our balance sheet during the quarter as a result of our previously announced ABS transaction. These restructuring efforts have provided us with the ability to restart our dividend program beginning with a dividend for the month ending November 30. To start, the dividend will be set at $0.02 per share payable monthly. We are excited by the opportunities in front of us and expect to build further momentum into year end and 2021" said Marr.

The full release is available here.

Chesswood Group Limited is North America's only publicly traded commercial equipment finance company focused on small and medium-sized businesses. Its 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 U.S. 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. Located in Houston, TX, Tandem Finance Inc. provides equipment financing to small and medium-sized businesses in the U.S.