Clairvest Reports Fiscal 2022 Second Quarter Results
TORONTO, Nov. 11, 2021 (GLOBE NEWSWIRE) — Clairvest Group Inc. (TSX: CVG) today reported results for the fiscal 2022 second quarter and six months ended September 30, 2021 and material events subsequent to quarter end. (All figures are in Canadian dollars unless otherwise stated)
Highlights
- September 30, 2021 book value was $895.9 million or $59.49 per share compared with $867.3 million or $57.60 per share as at June 30, 2021
- Net income for the quarter ended September 30, 2021 was $28.6 million or $1.89 per share. For the six months ended September 30, 2021, net income was $46.7 million or $3.10 per share
- Subsequent to quarter end and as previously announced, Clairvest and Clairvest Equity Partners VI (“CEP VI”) entered into an agreement to acquire Delaware Park
- Clairvest named a Top Founder-Friendly Private Equity Firm by Inc. magazine, recognizing our success of backing entrepreneurs over the past 34 years
Clairvest’s book value was $895.9 million or $59.49 per share as at September 30, 2021, compared with $867.3 million or $57.60 per share as at June 30, 2021. The increase in book value for the quarter was attributable to net income for the quarter of $28.6 million, or $1.89 per share, which resulted from a net increase in the valuation of our private equity investment portfolio and a recovery of share based compensation expense due to a reduction in the Clairvest share price during the quarter.
In November 2021, Clairvest together with CEP VI and a newly formed subsidiary of Rubico Gaming LLC, agreed to acquire the Delaware Park casino and racetrack business. The closing of the transaction is subject to, among other things, obtaining regulatory approvals, and is expected to close by end of calendar year 2021.
“With the mission to help entrepreneurs build strategically significant businesses, we continue to work diligently to identify investment opportunities and continue growing our portfolio,” said Ken Rotman, CEO of Clairvest. “Despite an interesting & unpredictable environment, the majority of our portfolio companies have done an excellent job of navigating the situation and growing throughout. Additionally, we are proud to be on Inc.’s Top Founder-Friendly Investor List this year, which further underscores our approach and mission.”
| Summary of Financial Results – Unaudited | ||||
| Financial Results | Quarter ended | Six months ended | ||
| September 30 | September 30 | |||
| 2021 | 2020 | 2021 | 2020 | |
| ($000’s, except per share amounts) | $ | $ | $ | $ |
| Net investment gain (loss) | 12,982 | (24,615) | 41,933 | 50,075 |
| Net carried interest from Clairvest Equity Partners III and IV | 1,632 | 120 | 1,298 | (7,765) |
| Distributions, interest income, dividends and fees | 17,050 | 8,015 | 24,350 | 19,157 |
| Total expenses, excluding income taxes | 152 | 11,502 | 11,902 | 17,789 |
| Net income (loss) and comprehensive income (loss) | 28,560 | (24,234) | 46,659 | 40,118 |
| Basic and fully diluted net income (loss) per share | 1.89 | (1.61) | 3.10 | 2.66 |
| Financial Position | September 30 | March 31, |
| 2021 | 2021 | |
| ($000’s, except share information and per share amounts) | $ | $ |
| Total assets | 1,009,862 | 985,025 |
| Total cash, cash equivalents and temporary investments | 308,207 | 279,373 |
| Carried interest from Clairvest Equity Partners III and IV | 31,933 | 34,318 |
| Corporate investments(1) | 594,117 | 534,667 |
| Total liabilities | 113,979 | 127,218 |
| Management participation from Clairvest Equity Partners III and IV | 24,033 | 25,996 |
| Book value(2) | 895,883 | 857,807 |
| Common shares outstanding | 15,058,301 | 15,058,401 |
| Book value per share(2) | 59.49 | 56.96 |
(1) Includes carried interest of $94,858 (March 31: $88,343) and management participation of $65,573 (March 31: $60,346) from Clairvest Equity Partners V and VI, and $57,653 (March 31, 2021: $65,953) 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.
Clairvest’s second quarter fiscal 2022 financial statements and MD&A are available on the SEDAR website at www.sedar.com and the Clairvest website at www.clairvest.com.
About Clairvest
Clairvest’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 Information
Stephanie Lo
Manager, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753
stephaniel@clairvest.com
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.
