Chesswood Income Fund Announces Results for Q1 2009

* Reuters is not responsible for the content in this press release.

Mon May 11, 2009 4:42pm EDT 

  TORONTO, ONTARIO, May 11 (MARKET WIRE) -- 
Chesswood Income Fund (the "Fund") (TSX: CHW.UN) announced today its
results for the first quarter of 2009, ended March 31, 2009.

    "Our first quarter results reflect growth in Pawnee's portfolio,
following the rapid correction in our market in late 2008, that saw the
departure of so many of our competitors," said Barry Shafran, the Fund's
President and CEO. "Pawnee's portfolio growth in the quarter resulted
from a significant increase in application levels, notwithstanding
approval levels that were constrained by our focus on adding improved
credit quality to our portfolio."

    "Our results improved over 2008, despite a continuation of elevated
charge-offs at Pawnee and a dramatic change in the new car market,
year-over-year, at our Acura dealership," added Shafran. "Last year's
first quarter was characterized by near record new car sales, due to
strong incentives offered by the manufacturer. In 2009, new car sales in
Canada are at very suppressed levels."

    The Fund's new car dealership has a strong brand and continues to operate
profitably, but at reduced levels from 2008. The changes in the new
vehicle market resulted in the majority of the decrease in revenues for
the Fund, year-over-year.


Financial Highlights For The Fund                      For The Three Months
(in CDN $000's)                                              Ended March 31
                                                    ------------------------
                                                           2009        2008
                                                    ------------------------

Revenues                                                $16,430     $22,907

Adjusted EBITDA                                          $1,142        $451

Distributable Cash                                         $855        $688

Distributions(1)                                           $635      $1,207

Net Income before taxes, unrealized
 foreign exchange and swap gains/losses                    $734        $212

Net Income (Loss)                                          $556       ($253)

(1) - includes dividends on 1,478,537 Class B and C shares of Chesswood
      US Acquisition Co Ltd. in the quarter, and distributions on 7,040,558 
      Fund units in January and February, and 6,978,558 Fund units in March.


    Non GAAP Measures

    References to Adjusted EBITDA and Distributable Cash are not recognized
measures under Canadian GAAP and do not have standard meanings under
Canadian GAAP. Accordingly, these measures may not be comparable to
similar measures presented by other issuers.

    Please refer to Chesswood's Management Discussion and Analysis for the
three-months ended March 31, 2009 for additional information concerning
these measures and a reconciliation of these measures to the Fund's
consolidated net income for the period.

    About Chesswood Income Fund

    The Fund is a financial services trust with operating businesses in both
Canada and the U.S.

    This press release contains forward-looking statements that involve a
number of risks and uncertainties because they relate to events and
depend on circumstances that will occur in the future. Many factors could
cause actual results and developments to differ materially from those
expressed or implied by these forward-looking statements.


 
 NO STOCK
EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS
APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

Contacts:
Chesswood Income Fund
Barry Shafran
416-386-3099
bshafran@chesswoodfund.com
www.ChesswoodFund.com

Copyright 2009, Market Wire, All rights reserved.

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