Clairvest Group Inc.

TSX : CVG


November 13, 2012 18:27 ET

Clairvest Reports Fiscal 2013 Second Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2012) - Clairvest Group Inc. (TSX:CVG) today reported results for the second quarter ended September 30, 2012. (All figures are in Canadian dollars unless otherwise stated)

Highlights

  • September 30, 2012 book value was $330.6 million or $21.86 per share versus $21.35 per share at June 30, 2012. Non-restricted cash or near cash represented 30.6% of the September 30, 2012 book value, or $6.69 per share
  • Net income for the quarter and for the six months was $7.6 million or $0.51 per share and $17.3 million or $1.14 per share respectively
  • Clairvest advanced a US$7.9 million promissory note to Centaur, operator of the Hoosier Park Racing & Casino in Indianapolis, Indiana, in support of a potential acquisition being made by Centaur
  • Clairvest paid an annual ordinary dividend of $1.5 million, or $0.10 per share, and a special dividend of $1.7 million, or $0.1093 per share, which in aggregate represent 1% of the March 31, 2012 book value

Clairvest's book value was $330.6 million or $21.86 per share at September 30, 2012, compared with $21.35 per share at June 30, 2012. The increase in book value per share was attributable to net income for the quarter of $7.6 million, or $0.51 per share. During the quarter, Clairvest recorded $4.2 million in pre-tax unrealized gains and $4.4 million in pre-tax distributions, interest, dividends and fees from its corporate investment portfolio.

"We continue to be very pleased with the progress of our corporate investment portfolio. Our team is highly engaged in our chosen industries and we are applying our domain-based approach to identify superior investment opportunities," said Jeff Parr, Co-Chief Executive Officer and Managing Director of Clairvest.

During the quarter, Clairvest advanced a US$7.9 million promissory note to Centaur, LLC ("Centaur") in support of a potential acquisition being made by Centaur. The promissory note has a stated interest rate of 3.41% per annum and is repayable no later than April 1, 2013.

Clairvest paid an annual ordinary dividend of $0.10 per share and a special dividend of $0.1093 per share, such that in aggregate, the dividends totaled to $0.2093 and represent 1% of the March 31, 2012 book value. Both dividends were paid on July 26, 2012 to common shareholders of record as of July 9, 2012 and are eligible dividends for Canadian income tax purposes.

Summary of Financial Results - Unaudited

Financial Performance Measures Quarters ended September 30 Six months ended September 30
2012 2011 2012 2011
($000's, except per share amounts) $ $ $ $
Net realized gains (losses) on corporate investments ΓöÇ (22 ) (14 ) 555
Net changes in unrealized gains (losses) on corporate investments 4,232 (3,979 ) 7,421 (3,096 )
Net income (loss) 7,647 (1,778 ) 17,256 (524 )
Basic net income (loss) per share 0.51 (0.11 ) 1.14 (0.03 )
Fully diluted net income (loss) per share 0.50 (0.11 ) 1.12 (0.03 )
Financial Condition Measures September
2012
March
2012
($000's, except per share amounts) $ $
Total assets 353,285 338,424
Total cash, cash equivalents and temporary investments(1) 101,123 97,553
Total corporate investments 195,344 187,876
Total liabilities 22,712 21,997
Book value 330,573 316,427
Book value per share 21.86 20.93

(1)Excludes restricted cash and temporary investments

Clairvest's second quarter fiscal 2013 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 investor which invests its own capital, and that of third parties through the Clairvest Equity Partners ("CEP") 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.

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