Chesswood Announces Year-End Results for 2011 - Pretax Income of $12.6 Million

Fort Collins, CO, March 21, 2012 --(PR.com)-- Chesswood posted another year of record earnings before taxes in 2011.

“We earned $12.6 million before taxes this past year, driven by the continued double digit growth of Pawnee’s portfolio and strong overall portfolio performance,” said Barry Shafran, the Company’s President and CEO. “Our business model, which withstood the toughest economic climate in decades, is now showing its strength in a time of growth, as well,” added Shafran.

The Company’s audited consolidated financial statements for the years ended December 31, 2011 and 2010 have been filed with the related management discussion and analysis. The 2010 financial statements relate to Chesswood Income Fund (the“Fund”), which was converted from a trust structure into the Company, effective as of January 1, 2011.

Financial Highlights(in CDN $000's ) For the Year-Ended December 31 2011.

2011
Income before Taxes, Fair Value Adjustments of Other Liabilities (and Distributions in 2010) - $12,622
Net Income (Loss)(1) - $6,509
Adjusted EBITDA(2) - $14,949
Earnings Per Share/Unit – basic(3) - $0.59

2010 (1)
Income before Taxes, Fair Value Adjustments of Other Liabilities (and Distributions in 2010) - $9,603
Net Income (Loss)(1) - ($2,650)
Adjusted EBITDA(2) - $13,148
Earnings Per Share/Unit – basic(3) - $0.41(4)

(1) The adoption of International Financial Reporting Standards ("IFRS") resulted in the deduction of the Fund's distributions and a fair value adjustment of its units, amongst other changes, to the Fund's 2010 results.

(2) See "Non-GAAP Measures" below.

(3) The earnings per share and earnings per unit have been calculated based on the number of shares of the Company or trust units of the Fund outstanding, as applicable, plus the number of shares or units (as applicable) that would have been outstanding assuming the exchange of the Class B and Class C shares of Chesswood US Acquisitionco Ltd. (which are exchangeable by the holders at any time without the requirement to pay any further amounts).

(4) For comparative purposes, the Fund’s trust units have been treated as equity throughout the year and related fair value adjustments have been made to reflect equity treatment, although the trust units were not considered equity securities for purposes of IFRS.