Skip to main content

Clairvest Reports Fiscal 2021 Third Quarter Results

Written by Customer Service on . Posted in Public Companies.

TORONTO, Feb. 11, 2021 (GLOBE NEWSWIRE) — Clairvest Group Inc. (TSX: CVG) today reported results for the fiscal 2021 third quarter and nine months ended December 31, 2020 as well as material events which occurred subsequent to quarter end. (All figures are in Canadian dollars unless otherwise stated)
HighlightsDecember 31, 2020 book value was $843.0 million or $55.98 per share versus $868.5 million or $57.67 per share as at September 30, 2020. During the quarter, Clairvest paid a $5.00 per share special dividendNet income for the quarter ended December 31, 2020 was $49.9 million or $3.32 per share. For the nine months ended December 31, 2020, net income was $90.1 million or $5.98 per shareClairvest and Clairvest Equity Partners V (“CEP V”) completed the sale of Right Time Heating and Air Conditioning (“Right Time”) for a 4.7x multiple of invested capital or an IRR of 110%Clairvest and Clairvest Equity Partners VI (“CEP VI”) made a new equity investment in F12.NETClairvest and CEP VI made a new equity investment in Brunswick BierworksSubject to the approval of the Toronto Stock Exchange, Clairvest’s Board of Directors approved a new normal course issuer bidClairvest’s book value was $843.0 million or $55.98 per share as at December 31, 2020, compared with $868.5 million or $57.67 per share as at September 30, 2020. The decrease in book value for the quarter was attributable to $5.00 per share special dividend which was declared and paid in November 2020. Net income for the quarter was $49.9 million, or $3.32 per share, which resulted from the incremental gains on the sale of Right Time and net valuation changes in our private equity investment portfolio. Net income for the nine months ended December 31, 2020 was $90.1 million, or $5.98 per share.During the quarter, Clairvest and CEP V completed the sale of Right Time. At closing, Clairvest and CEP V realized sale proceeds of $98.3 million, Clairvest’s portion of which was $29.5 million, against its $6.4 million investment over the two-year holding period. Clairvest is entitled to certain additional proceeds of up to $0.9 million as stipulated in the purchase and sale agreement.In November 2020, Clairvest and CEP VI made a $36 million equity investment in F12.NET, a leader in the Canadian managed IT services space. F12.NET provides comprehensive technology packages to small and medium enterprises across the country. Clairvest’s portion of the investment was $9.7 million.Also in November 2020, Clairvest and CEP VI made a $19 million equity investment in Brunswick Bierworks, a leading Canadian contract manufacturer of specialty beverages. Clairvest’s portion of the investment was $5.1 million.“Our rigorous investment approach continues to generate superior returns for our investors, as evidenced by the Right Time sale,” said Ken Rotman, CEO of Clairvest. “On the capital deployment side, we are very excited with the two new investments and we look forward to growing these businesses with our respective entrepreneur 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 5% of the outstanding common shares on the Toronto Stock Exchange during a 12-month period expected to commence on March 8, 2021.
Summary of Financial Results – Unaudited
(1) Includes carried interest of $71,111 (March 31, 2020: $14,453) and management participation of $48,613 (March 31, 2020: $10,893) from Clairvest Equity Partners V and VI, and $91,460 (March 31, 2020: $56,431) in cash, cash equivalents and temporary investments held by Clairvest’s acquisition entities.
(2) Book value is a Non-IFRS measure calculated as the value of total assets less the value of total liabilities. The term book value does not have any standardized meaning according to IFRS and therefore may not be comparable to similar measures presented by other companies. There is no comparable IFRS measure presented in Clairvest’s consolidated financial statements and thus no applicable quantitative reconciliation for such non-IFRS financial measure. The Company has calculated book value consistently for many years and believes that book value can provide information useful to its shareholders in understanding its performance, and may assist in the evaluation of its business relative to that of its peers.
Clairvest’s third quarter fiscal 2021 financial statements and MD&A are available on the SEDAR website at www.sedar.com and the Clairvest website at www.clairvest.com.About ClairvestClairvest’s mission is to partner with entrepreneurs to help them build strategically significant businesses. Founded in 1987 by a group of successful Canadian entrepreneurs, Clairvest is a top performing private equity management firm with over CAD $2.5 billion of capital under management. Clairvest invests its own capital and that of third parties through the Clairvest Equity Partners limited partnerships in owner-led businesses. Under the current management team, Clairvest has initiated investments in 56 different platform companies and generated top quartile performance over an extended period.Contact InformationMaria Shkolnik
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753
marias@clairvest.comForward-looking StatementsThis 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

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.