Clairvest Group Inc.
TSX : CVG

February 10, 2011 15:11 ET

Clairvest Reports Fiscal 2011 Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Feb. 10, 2011) - Clairvest Group Inc. (TSX:CVG) today reported results for the quarter ended December 31, 2010. (All figures are in Canadian dollars unless otherwise stated).

Highlights

  • December 31, 2010 book value of $296.3 million or $18.57 per share versus $18.28 at September 30, 2010. Cash or near cash at 43% of the December 31, 2010 book value, or $8.03 per share
  • Net income for the quarter and for the nine months were $4.7 million or $0.29 per share and $5.6 million or $0.35 per share respectively
  • Subsequent to quarter end, the Clairvest Equity Partners IV Limited Partnership and Clairvest Equity Partners IV-A Limited Partnership (collectively, "CEP IV") fund pool had a final closing with $467 million in committed capital
  • Clairvest and CEP IV invested US$67.5 million in senior secured first lien debt of Centaur, LLC ("Centaur")
  • Clairvest and Clairvest Equity Partners III Limited Partnership ("CEP III") completed an equity investment in Casino Sol Calama
  • Clairvest's Board of Directors approved a new normal course issuer bid

Clairvest's book value was $296.3 million or $18.57 per share, at December 31, 2010, compared with $18.28 per share at September 30, 2010. Net income for the quarter was $4.7 million, or $0.29 per share. For the nine months ended December 31, 2010, Clairvest had net income of $5.6 million, or $0.35 per share. Net unrealized gains on corporate investments were $5.3 million for the third quarter and $6.5 million for the nine months.

As previously announced, the CEP IV fund pool completed a final closing subsequent to quarter end with a further $83 million in capital commitments since September 30, 2010, bringing total committed capital to $467 million or 117% of the $400 million CEP IV fund pool target. As part of the final closing, Clairvest announced it had increased its commitment to the CEP IV fund pool by $25 million such that it is investing $125 million alongside the $342 million from third party investors.

During the quarter, Clairvest and CEP IV invested US$67.5 million (C$68.3 million) in senior secured first lien debt ("Senior Debt") of Centaur. Centaur holds various gaming interests including the Hoosier Park Racing & Casino in Indianapolis, Indiana, one of two gaming facilities serving this 1.7 million person Indianapolis area market. As part of the transaction, Clairvest has entered into an agreement with another holder of Senior Debt to vote together in furtherance of their mutual interest in the ongoing Chapter 11 proceedings for Centaur. Clairvest's portion of the investment was US$21.6 million (C$21.9 million).

Also as previously announced, Clairvest and CEP III completed an equity investment in Casino Sol Calama through their investment in a holding entity ("Chilean Gaming Holdings") jointly owned by Clairvest, CEP III and other strategic investors. As part of the transaction, Latin Gaming Chile S.A., the operator of Casino Sol Calama, repaid the US$13.8 million in bridge loans previously advanced by Chile Gaming Holdings. Clairvest, which owns 36.8% of Chilean Gaming Holdings, invested an additional $3.2 million to support the equity investment. Chilean Gaming Holdings owns a 50% equity stake in each of Casino Marina del Sol, Casino Osorno and Casino Sol Calama in Chile.

"2010 has been an exceptional year for Clairvest," said Ken Rotman, Co-Chief Executive Officer and Managing Director of Clairvest Group Inc. "In addition to successfully raising CEP IV, our team has deployed over $150 million of capital to new and existing investments following our proven investment strategy. As we continue to make new investments for CEP IV, we are also fully dedicated to achieving the best value for our existing investments, for the benefit of our shareholders and limited partners."

Subject to the approval of the Toronto Stock Exchange, Clairvest's Board of Directors has approved a new normal course issuer bid to purchase up to 797,678 common shares on the Toronto Stock Exchange during the 12-month period commencing March 6, 2011.

Summary of Financial Results – Unaudited    
       
Financial Performance Measures - Quarter ended December 31 2010 2009  
($000's, except per share amounts) $ $  
Net realized gains (losses) on corporate investments - (42 )
Net unrealized gains on corporate investments 5,290 5,962  
Net income 4,652 2,268  
Basic net income per share 0.29 0.14  
Fully diluted net income per share 0.29 0.14  
       
Financial Condition Measures December
 2010
March
2010
 
($000's, except per share amounts) $ $  
Total assets 308,977 305,360  
Total cash, cash equivalents and temporary investments 128,182 152,228  
Total corporate investments 153,324 118,881  
Total liabilities 12,675 13,075  
Book value per share 18.57 18.32  

Clairvest's third 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, CEP III and CEP IV 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, CEP IV 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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