Clairvest Reports Fiscal 2013 Third Quarter Results
TORONTO, ONTARIO, Feb 11, 2013 (Menafn - MARKETWIRE via COMTEX) --Clairvest Group Inc. today reported results for thethird quarter ended December 31, 2012. (All figures are in Canadiandollars unless otherwise stated)
Highlights
--December 31, 2012 book value was 339.0 million or 22.41 per share
versus 21.86 per share at September 30, 2012. Non-restricted cash or
near cash represented 35.5% of the December 31, 2012 book value, or
7.95 per share
--Net income for the quarter and for the nine months was 8.4 million or
0.55 per share and 25.7 million or 1.70 per share respectively
--Rivers Casino, a gaming entertainment complex located in Des Plaines,
Illinois, completed a financing and paid a distribution to its owners.
Clairvest, CEP IV and CEP IV-A received a combined US39.3 million from
this distribution against their US37.4 million original investment
--Subsequent to quarter end, Clairvest and CEP III realized a combined 81
million through the sale of PEER 1, a global online IT infrastructure
provider
--Subsequent to quarter end, Clairvest, CEP IV and CEP IV-A invested a
combined 39.5 million in CRS, an equipment rental company based in
Ontario, Canada
--Subsequent to quarter end, Centaur Gaming, which owns and operates the
Hoosier Park Racing & Casino in Indianapolis, Indiana, received all
necessary regulatory approvals to proceed with its acquisition of
Indiana Grand Casino and Indiana Downs racetrack
--Subject to the approval of the Toronto Stock Exchange, Clairvest's Board
of Directors approved a new normal course issuer bid
Clairvest's book value was 339.0 million or 22.41 per share atDecember 31, 2012, compared with 21.86 per share at September 30,2012. The increase in book value per share was attributable to netincome for the quarter of 8.4 million, or 0.55 per share. Duringthe quarter, Clairvest recorded 6.4 million in pre-tax netunrealized gains and 4.7 million in pre-tax distributions, interest,dividends and fees from its corporate investment portfolio.
During the quarter, Rivers Casino completed a financing and paid adistribution to its owners. Clairvest, Clairvest Equity Partners IVLimited Partnership ("CEP IV") and Clairvest Equity Partners IV-ALimited Partnership CEP IV-A ("CEP IV-A") received US10.5 million,US24.8 million and US4.0 million respectively from thisdistribution. Rivers Casino commenced operations in July 2011, and toDecember 31, 2012 it has made pre-tax distributions totaling 1.5times invested capital to its owners.
As previously announced, during the quarter ended December 31, 2012,Clairvest entered into an agreement to tender all of the commonshares of PEER 1 Network Enterprises Inc. ("PEER 1") held byClairvest and Clairvest Equity Partners III Limited Partnership ("CEPIII") to a takeover bid made by Cogeco Cable Inc. at a price of 3.85in cash per share. Subsequent to quarter end the takeover bid wascompleted. On the initial combined investment of 25.2 million,Clairvest and CEP III generated a pre-tax return of 3.2 timesinvested capital, or a 40% IRR, over the life of this investment.Consistent with its ownership percentage, on closing Clairvestrealized 19.9 million on a 6.3 million investment for a 13.6million gain, 13.5 million of which had been recognized in income toDecember 31, 2012.
Also as previously announced, subsequent to quarter end, Clairvest,CEP IV and CEP IV-A invested a combined 39.5 million for a 51.9%ownership interest in CRS Contractors Rental Supply LimitedPartnership ("CRS"), a leading provider of construction equipmentrental and related merchandise across 21 locations in Ontario,Canada. Clairvest's portion of the investment was 10.6 million for a13.9% ownership interest in CRS.
"We are realizing the rewards of our focused domain approach and theteam's discipline in sourcing best in class companies that are led bysuperior management teams. The financial return achieved on our saleof PEER 1 is a tribute to our partners' efforts and our team's focuson the growing IT infrastructure industry. In addition, Clairvest'sactive domain research in the rental services domain resulted in anew exciting opportunity that builds on our current interest in theequipment rental sector," said Ken Rotman, Co-Chief Executive Officerand Managing Director of Clairvest.
Also as previously announced, subsequent to quarter end, CentaurGaming received all necessary regulatory approvals to proceed withits acquisition of Indiana Grand Casino and Indiana Downs racetrack.The closing of this acquisition is subject to review of the finalfinancing terms.
Subject to the approval of the Toronto Stock Exchange, Clairvest'sBoard of Directors has approved a new normal course issuer bid topurchase up to 756,204 common shares on the Toronto Stock Exchangeduring the 12-month period commencing March 6, 2013.
Summary of Financial Results - Unaudited
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Financial Performance MeasuresQuarters ended Nine months ended
December 31December 31
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2012201120122011
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(000's, except per share amounts)
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Net realized gains (losses) on corporate
investments-(54)(14)501
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Net changes in unrealized gains on
corporate investments6,44913,28213,87010,186
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Net income8,41917,59225,67517,068
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Basic net income per share0.551.141.701.11
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Fully diluted net income per share0.551.121.671.09
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Financial Condition MeasuresDecemberMarch
20122012
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(000's, except per share amounts)
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Total assets364,042338,424
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Total cash, cash equivalents and temporary
investments(1)120,31297,553
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Total corporate investments193,424187,876
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Total liabilities25,05021,997
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Book value338,992316,427
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Book value per share22.4120.93
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(1)Excludes restricted cash and temporary investments
Clairvest's third quarter fiscal 2013 financial statements and MD&A areavailable on the SEDAR website at www.sedar.com and on the Clairvestwebsite at www.clairvest.com.
About Clairvest
Clairvest Group Inc. is a private equity investor which invests itsown capital, and that of third parties through the Clairvest EquityPartners ("CEP") limited partnerships, in businesses that have thepotential to generate superior returns. In addition to providingfinancing, Clairvest contributes strategic expertise and executionability to support the growth and development of its investeepartners. Clairvest realizes value through investment returns and theeventual disposition of its investments.
Forward-looking Statements
This news release contains forward-looking statements with respect toClairvest Group Inc., its subsidiaries, its CEP limited partnershipsand their investments. These statements are based on currentexpectations and are subject to known and unknown risks,uncertainties and other factors which may cause the actual results,performance or achievements of Clairvest, its subsidiaries, its CEPlimited partnerships and their investments to be materially differentfrom any future results, performance or achievements expressed orimplied by such forward-looking statements. Such factors includegeneral and economic business conditions and regulatory risks.Clairvest is under no obligation to update any forward-lookingstatements contained herein should material facts change due to newinformation, future events or otherwise.
Contacts:
Clairvest Group Inc.
Maria Klyuev
Director, Investor Relations and Marketing
(416) 925-9270
(416) 925-5753 (FAX)
mariak@clairvest.com
www.clairvest.com
SOURCE: Clairvest Group Inc.
mailto:mariak@clairvest.com
http://www.clairvest.com
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