Clairvest Group Inc.

TSX : CVG


February 11, 2014 18:22 ET

Clairvest Reports Fiscal 2014 Third Quarter Results

TORONTO, ONTARIO--(Marketwired - Feb. 11, 2014) - Clairvest Group Inc. (TSX:CVG) today reported results for the quarter ended December 31, 2013. (All figures are in Canadian dollars unless otherwise stated)

Highlights

  • December 31, 2013 book value was $375.7 million or $24.82 per share versus $24.11 per share at September 30, 2013. Cash or near cash of $151.3 million represented 40.3% of the December 31, 2013 book value, or $9.99 per share
  • Net income for the quarter and for the nine months was $10.9 million or $0.72 per share and $29.3 million or $1.94 per share
  • Clairvest and its managed funds invested a combined US$28.5 million in Winters Bros. Waste Systems of CT, LLC ("Winters Bros"), a regional solid waste collection, recycling and disposal company based in Danbury, Connecticut
  • Clairvest and its managed funds funded their remaining US$13.0 million commitment in New Meadowlands Racetrack LLC (the "Meadowlands"), which operates North America's premier standardbred horse racing track located in East Rutherford, New Jersey
  • 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 $375.7 million or $24.82 per share at December 31, 2013, compared with $24.11 per share at September 30, 2013. The increase in book value per share was attributable to net income for the quarter of $10.9 million, or $0.72 per share.

As previously announced, Clairvest and its managed funds invested a combined US$28.5 million for a 49.9% ownership interest in Winters Bros., a regional solid waste collection, recycling and disposal company based in Danbury, Connecticut. The investment was made in the form of Class C units. Clairvest's portion of the investment was US$7.6 million for a 13.4% ownership interest in Winters Bros.

"Winters Bros. of CT is our fourth investment in the waste management industry, which has been a core domain for Clairvest since 2005," said Ken Rotman, Co-Chief Executive Officer and Managing Director of Clairvest. "We are investing behind a management team that we previously worked with at Winters Bros. of Long Island and we are honoured to be selected again as partners."

Also during the quarter ended December 31, 2013, Clairvest and its managed funds funded their remaining US$13.0 million commitment to invest in the Meadowlands, which operates North America's premier standardbred horse racing track located in East Rutherford, New Jersey. The investment was made in the form of debentures and warrants which entitle Clairvest and its managed funds to invest in equity securities of the Meadowlands subject to certain conditions. Clairvest's portion of the investment at December 31, 2013 was US$3.5 million.

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 756,705 common shares on the Toronto Stock Exchange during the 12-month period commencing March 6, 2014.

Summary of Financial Results - Unaudited

Financial Performance Measures Quarters ended December 31 Nine months ended December 31
2013 2012 2013 2012
($000's, except per share amounts) $ $ $ $
Net realized gains (losses) on corporate investments - - - (14 )
Net changes in unrealized gains (losses) on corporate investments 11,326 (2,432 ) 27,954 4,989
Net income 10,872 8,419 29,294 25,675
Basic net income per share 0.72 0.55 1.94 1.70
Fully diluted net income per share 0.71 0.54 1.90 1.67
Financial Condition Measures December
2013
March
2013
($000's, except per share amounts) $ $
Total assets 410,074 378,936
Total cash, cash equivalents and temporary investments(1) 151,258 174,513
Total corporate investments 233,081 176,390
Total liabilities 34,378 29,248
Book value 375,696 349,688
Book value per share 24.82 23.12

(1) Excludes restricted temporary investments where applicable

Clairvest's third quarter fiscal 2014 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.

www.clairvest.com

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