Clairvest Group Inc.
TSX : CVG

November 11, 2010 15:30 ET

Clairvest Reports Fiscal 2011 Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 11, 2010) - Clairvest Group Inc. (TSX:CVG) today reported results for the quarter ended September 30, 2010. (All figures are in Canadian dollars unless otherwise stated).

Highlights

  • September 30, 2010 book value of $291.7 million or $18.28 per share versus $18.28 at June 30, 2010. Cash or near cash represents 53% of the September 30, 2010 book value, or $9.61 per share
  • Net income for the quarter and for the six months were $0.1 million or nil per share and $1.0 million or $0.06 per share respectively
  • CEP IV fund pool reached $347 million in committed capital
  • Clairvest and CEP III completed a consolidation of their Chilean gaming investments
  • Clairvest paid an annual dividend of $1.6 million, or $0.10 per share

Clairvest's book value was at $291.7 million or $18.28 per share, at September 30, 2010, compared with $18.28 per share at June 30, 2010. Net income for the quarter was $0.1 million, or nil per share. For the six months ended September 30, 2010, Clairvest had net income of $1.0 million, or $0.06 per share.

As previously announced, Clairvest Equity Partners IV closed on $35 million in capital commitments during the quarter, bringing total committed capital to 87% of the $400 million Clairvest Equity Partners IV fund pool target.

Also as previously announced, Clairvest and Clairvest Equity Partners III Limited Partnership ("CEP III") initiated a consolidation of their Chilean gaming investments which was completed subsequent to quarter end. As discussed in more detail in the MD&A, Clairvest received net cash proceeds of $12.7 million and retained a 36.8% ownership interest in Chilean Gaming Holdings, which owns a 50% stake in each of Casino del Sol, Casino Osorno and Casino Sol Calama. CEP III's ownership interest in Chilean Gaming Holdings is 37.6% and with the remainder owned by strategic co-investors.

"The combination of our investments in three Chilean casinos is a prime example of Clairvest adhering to its investment principles", said Jeff Parr, Co-Chief Executive Officer and Managing Director of Clairvest Group Inc. "We believe the alignment of Clairvest's interests with those of its fund investors and the casinos' strategic advisors will be the key to building valuable and strategic assets."

Also as previously announced, Clairvest paid an annual dividend of $0.10 per share. The dividend was paid on July 26, 2010 to common shareholders of record as of July 9, 2010. This is an eligible dividend for Canadian income tax purposes.

Summary of Financial Results – Unaudited  
     
Financial Performance Measures - Quarter ended September 30 2010 2009
  ($000's, except per share amounts) $ $
Net realized gains on corporate investments 4 ─
Net unrealized gains on corporate investments 103 1,867
Net income 69 3,692
Basic net income per share ─ 0.23
Fully diluted net income per share ─ 0.23
     
Financial Condition Measures September
2010
March
2010
  ($000's) $ $
Total assets 303,426 305,360
Total cash, cash equivalents and temporary investments 153,312 152,228
Total corporate investments 125,138 118,881
Total liabilities 11,776 13,075

Clairvest's second quarter 2011 financial statements and MD&A are available on the SEDAR website at www.sedar.com and on the Clairvest website at www.clairvest.com.

About Clairvest

Clairvest Group Inc. is a private equity management firm which invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.

Forward-looking Statements

This news release contains forward-looking statements with respect to Clairvest Group Inc., its subsidiaries, Clairvest Equity Partners III Limited Partnership ("CEP III") and their investments. These statements are based on current expectations 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, CEP III and their investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general and economic business conditions and regulatory risks. Clairvest is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

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