Clarke Inc. Reports 2019 First Quarter Results and Election of Directors

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Clarke Inc. Reports 2019 First Quarter Results and Election of Directors

Canada NewsWire

HALIFAX, May 13, 2019 /CNW/ - Clarke Inc. ("Clarke" or the "Company") (TSX: CKI) today announced its results for the three months ended March 31, 2019.

First Quarter Results

Net income attributable to equity holders of the Company for the three months ended March 31, 2019 was $37.4 million compared with $2.1 million for the same period in 2018. During the three months ended March 31, 2019, the Company had unrealized gains on its investments of $4.0 million compared to $2.1 million for the same period in 2018. The Company had realized gains on its investments of $12.5 million for the three months ended March 31, 2019 compared with nil for the same period in 2018.

First Quarter Review and Outlook

The first quarter was a period of significant change for Clarke. First, Clarke acquired majority ownership of Holloway Lodging Corp. ("Holloway") following a substantial issuer bid ("SIB") pursuant to which Holloway repurchased 1,553,755 of its common shares. Clarke did not sell any shares of Holloway into this SIB and currently owns 51.0% of Holloway's shares. As a result of acquiring majority ownership of Holloway, Clarke must now consolidate Holloway's financial results into its own results. Second, Clarke made its first significant new investment in several years by acquiring, together with certain deemed joint actors, 10% of Trican Well Service Ltd.

In the first quarter of 2019, the Company's book value per share increased by $3.02 or 24.7%.  The increase can be ascribed to (i) $1.43 per Clarke common share ("Common Share") from the consolidation of Holloway's financial results into our own financial results, (ii) $1.62 per Common Share of positive investment performance and net income, (iii) $0.04 per Common Share due to repurchasing Common Shares at prices below our book value per share, offset by (iv) negative $0.07 per Common Share resulting from a decrease in the value of our pension plan surplus due to a lower discount rate. Our book value per Common Share at the end of the quarter was $15.23 while our Common Share price was $13.00

Additional commentary on our first quarter results can be found in our Management's Discussion & Analysis for the three months ended March 31, 2019.

Other Information

Further information about Clarke, including Clarke's Interim Condensed Consolidated Financial Statements and Management's Discussion & Analysis for the three and nine months ended March 31, 2019, is available at www.sedar.com and www.clarkeinc.com.

Highlights of the interim condensed consolidated financial statements for the three months ended March 31, 2019 compared to the three months ended March 31, 2018 are as follows:

 




(in millions, except per share amounts)

March 31, 2019
$ 

March 31, 2018

Hotel management services

15.8

― 

Provision of services

0.2

0.2

Bargain purchase

22.4

― 

Investment and other income*

17.3

3.1

Net income attributable to equity holders of the Company

37.4

2.1

Comprehensive income attributable to equity holders of the Company

36.6

2.3

Basic earnings per share ("EPS")

3.06

0.16

Diluted EPS

3.04

0.16

Total assets

442.1

143.1

Long-term financial liabilities

59.5

0.4

Book value per share

15.23

10.93


*Investment and other income include unrealized/realized gains/losses on investments, dividend and interest income, gains/losses on sale of property and equipment, pension recovery/expense, and foreign exchange gains/losses.

 

Election of Directors

Clarke also announced today that the director nominees listed in the Management Information Circular dated April 15, 2019, were elected as directors of the Company. The detailed results of the vote for the election of directors held at Clarke's Annual General Meeting of Shareholders held on May 13, 2019 in Toronto, Ontario are set out below.

 

Nominee

Votes in
Favour

% in
Favour

Votes
Withheld

%
Withheld

George Armoyan

8,558,712

95.17%

434,047

4.83%

Blair Cook

8,847,432

98.38%

145,327

1.62%

Brian Luborsky

8,981,059

99.87%

11,700

0.13%

Charles Pellerin

8,811,561

97.99%

181,198

2.01%

Michael Rapps

8,558,712

95.17%

434,047

4.83%

 

Final voting results on all matters voted on at the Annual General Meeting of Shareholders held on May 13, 2019 will be filed on the Company's issuer profile on SEDAR at www.sedar.com.

About Clarke

Halifax-based Clarke invests in a variety of private and publicly-traded businesses and participates actively where necessary to enhance the performance of such businesses and increase its return. Clarke's securities trade on the Toronto Stock Exchange (CKI); for more information about Clarke Inc., please visit our website at www.clarkeinc.com.

Cautionary Statement Regarding Use of Non-IFRS Accounting Measures

This press release makes reference to the Company's book value per share as a measure of the performance of the Company as a whole. Book value per share is measured by dividing shareholders' equity attributable to equity holders of the Company at the date of the statement of financial position by the number of Common Shares outstanding at that date. Clarke's method of determining this amount may differ from other companies' methods and, accordingly, this amount may not be comparable to measures used by other companies. This amount is not a performance measure as defined under IFRS and should not be considered either in isolation of, or as a substitute for, net earnings prepared in accordance with IFRS.

Note on Forward-Looking Statements and Risks

This press release may contain or refer to certain forward-looking statements relating, but not limited, to the Company's expectations, intentions, plans and beliefs with respect to the Company. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "budgets", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", or equivalents or variations of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements include, without limitation, those with respect to the future or expected performance of the Company's investee companies, the future price and value of securities held by the Company, changes in these securities holdings, the future price of oil and value of securities held in the Company's energy basket, changes to the Company's hedging practices, currency fluctuations and requirements for additional capital. Forward-looking statements rely on certain underlying assumptions that, if not realized, can result in such forward-looking statements not being achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the Company's investment strategy, legal and regulatory risks, general market risk, potential lack of diversification in the Company's investments, interest rates, foreign currency fluctuations, the sale of Company investments, the fact that dividends from investee companies are not guaranteed, reliance on key executives, commodity market risk, risks associated with investment in derivative instruments and other factors. With respect to the Company's investment in a ferry operation, such risks and uncertainties include, among others, weather conditions, safety, claims and insurance, labour relations, and other factors.

Although the Company has attempted to identify important factors that could cause actions, events or results not to be as estimated or intended, there can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Other than as required by applicable Canadian securities laws, the Company does not update or revise any such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.

 

SOURCE Clarke Inc.

View original content: http://www.newswire.ca/en/releases/archive/May2019/13/c6698.html

Copyright CNW Group 2019

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