Clairvest Group Inc.
TSX : CVG

August 11, 2011 16:20 ET

Clairvest Reports Fiscal 2012 First Quarter Results

TORONTO, ONTARIO--(Marketwire - Aug. 11, 2011) - Clairvest Group Inc. (TSX:CVG) today reported results for the quarter ended June 30, 2011. (All figures are in Canadian dollars unless otherwise stated).

Highlights

  • June 30, 2011 book value was $300.6 million or $19.53 per share versus $19.65 at March 31, 2011. Cash or near cash represented 49.6% of the June 30, 2011 book value, or $9.69 per share.
  • Net income for the quarter was $1.3 million or $0.08 per share.
  • Clairvest and CEP III realized US$70 million in gross proceeds through the sale of Hudson Valley Waste, a regional solid waste company in the Northeastern United States. Clairvest's portion of the proceeds was C$17.5 million.
  • Subsequent to quarter end, Grey Eagle Casino completed recapitalization and repaid in full its debentures and accrued interest totaling $31.1 million owing to Clairvest and CEP. Clairvest's portion of the proceeds was $7.8 million.
  • Subsequent to quarter end, Rivers Casino, a gaming entertainment complex located in Des Plaines, Illinois, commenced operations.
  • Subsequent to quarter end, Clairvest paid an annual ordinary dividend of $1.5 million, or $0.10 per share, and a special dividend of $1.5 million, or $0.0965 per share, which in aggregate represent 1% of the March 31, 2011 book value.

Clairvest's book value was $300.6 million or $19.53 per share, at June 30, 2011, compared with $19.65 per share at March 31, 2011. The decrease in book value per share was attributable to the combined dividends totaling $0.1965 per share, or 1% of the March 31, 2011 book value, net of profit for the quarter of $1.3 million, or $0.08 per share.

As previously announced, Clairvest and Clairvest Equity Partners III Limited Partnership ("CEP III") sold their interests in Hudson Valley Waste Holding, Inc. to Waste Connections, Inc. for cash proceeds of US$70.0 million. On an initial combined US$35.3 million [C$36.9 million] investment, Clairvest and CEP III generated a pre-tax return of 2.0 times in U.S. dollars and an internal rate of return of 87% over this 13 month investment. Consistent with its ownership percentage, Clairvest realized 25% of this amount, or C$17.5 million on a C$9.2 million investment.

Also as previously announced, subsequent to quarter end, Grey Eagle Casino completed a financing and repaid in full its debentures plus accrued interest totaling $31.1 million owing to Clairvest and Clairvest Equity Partners Limited Partnership ("CEP"). The Grey Eagle Casino is located on Tsuu T'ina First Nation reserve lands, southwest of the City of Calgary, Alberta. Consistent with its ownership, Clairvest received 25% of this amount, or $7.8 million, the same as the March 31, 2011 carrying value for the debenture investment. Clairvest continues to hold an equity participation interest in the Grey Eagle Casino, enabling it to between 2.8% and 9.6% of the earnings of the casino until December 18, 2022.

Subsequent to quarter end, Rivers Casino, a gaming entertainment complex located in Des Plaines, Illinois, commenced operations. The 147,000 square foot state-of-the-art Rivers Casino features 1,050 slot machines, 48 table games, and various entertainment amenities and venues and is located 16 miles from downtown Chicago and minutes from O'Hare International Airport.

"We are very pleased that Rivers Casino opened its doors ahead of schedule and initial results are above forecast. We are extremely excited by the prospects of this project," said Ken Rotman, Co-Chief Executive Officer and Managing Director of Clairvest. "In addition, we continue to deploy our focused strategy in sourcing new investments to put our and our limited partners' capital to work. With a strong balance sheet and a solid portfolio of investments, we are well positioned to deliver attractive risk adjusted returns to our shareholders and our limited partners."

Subsequent to quarter end, Clairvest paid an annual ordinary dividend of $0.10 per share and a special dividend of $0.0965 per share, such that in aggregate, the dividends represent 1% of the March 31, 2011 book value. The dividends were paid on July 25, 2011 to common shareholders of record as of July 8, 2011 and are eligible dividends for Canadian income tax purposes.

Summary of Financial Results – Unaudited
Financial Performance Measures - Quarters ended June 30 2011 2010
($000's, except per share amounts) $ $
Net realized gains on corporate investments 577
Net unrealized gains on corporate investments 833 1,113
Net income 1,254 891
Basic net income per share 0.08 0.06
Fully diluted net income per share 0.08 0.05
Financial Condition Measures June
2011
March
2011
($000's, except per share amounts) $ $
Total assets 323,013 318,860
Total cash, cash equivalents and temporary investments(1) 143,750 138,338
Total corporate investments 148,385 162,177
Total liabilities 22,382 16,458
Book value 300,631 302,402
Book value per share 19.53 19.65
(1) Excludes restricted cash

Clairvest's first quarter fiscal 2012 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, its CEP limited partnerships 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, its CEP limited partnerships 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.

www.clairvest.com

Contact Information

  • Clairvest Group Inc.
    Maria Klyuev
    Director, Investor Relations and Marketing
    (416) 925-9270
    (416) 925-5753 (FAX)
    mariak@clairvest.com