HALIFAX, March 19, 2013 /CNW/ - Clarke Inc. ("Clarke" or the "Company")
(TSX: CKI CKI.DB.A) today announced its results for the year ended
December 31, 2012.
RESULTS OF OPERATIONS
Highlights of the consolidated financial statements for the three months
and year ended December 31, 2012 compared to the three months and year
ended December 31, 2011 are as follows:
(in millions, except per share amounts)
Revenue and other income
Net income (loss) attributable to equity holders of the Company
Other comprehensive loss
Comprehensive income (loss) attributable to equity holders of the
Basic EPS - continuing operations
Net income attributable to equity holders of the Company for the year
ended December 31, 2012 was $1.7 million compared with a net loss of
$2.6 million in 2011. During the year ended December 31, 2012, the
Company had unrealized losses on its marketable securities of $4.7
million compared to unrealized losses of $10.2 million in 2011. The
Company had realized losses on its marketable securities of $2.8
million for the year ended December 31, 2012, compared to realized
losses of $8.3 million in 2011.
The Commercial Tanks & Home Heating segment continued to deliver strong
sales volumes due in part to incremental sales associated with
businesses acquired in the last two years which resulted in increased
earnings in this segment. This segment generated EBITDA of $8.5 million
for the year ended December 31, 2012 compared to $5.8 million in 2011.
The Freight Transportation segment delivered reasonable results despite
challenging market conditions and due to efficiencies introduced over
the last two years was able to generate meaningful earnings in this
segment. EBITDA before intercompany dividend revenue for the Freight
Transportation segment for the year ended December 31, 2012 was $14.0
million compared to $15.2 million in 2011.
During the year ended December 31, 2012, the Company had equity in
losses of associates of $3.4 million compared to losses of $0.9 million
in 2011. The losses in 2012 mainly consist of impairments taken on
petroleum and natural gas properties in associate Midlake Oil & Gas
Basic earnings per share ("EPS") from continuing operations for the year
ended December 31, 2012 was $0.08, compared to basic loss per share of
$0.47 for the year ended December 31, 2011, an increase of $0.55 per
share. Book value per share at December 31, 2012 was $5.30, in line
with book value per share of $5.31 on December 31, 2011. Book value per
share reflects dividends in the amount of $0.12 per share that were
paid during 2012.
Clarke's Board of Directors also announced today a quarterly dividend of
$0.06 per common share payable on April 15, 2013 to shareholders of
record at the end of business on March 28, 2013. The Board of Directors
believes that the payment of a dividend is a useful way to return
capital to shareholders and that this level of dividend will continue
to allow Clarke to pursue its current business plan and invest in
attractive growth opportunities.
QUARTER ENDED DECEMBER 31, 2012
Fourth quarter revenue and other income decreased as a result of a
decrease in the value of our portfolio of publicly-traded securities.
Realized/unrealized losses on marketable securities for the fourth
quarter of 2012 were $7.8 million compared to gains of $11.9 million
for the same period in 2011. This decrease was offset by increased
revenue generated in both the Freight Transportation and Commercial
Tanks & Home Heating segments. Higher revenue in the Freight
Transportation segment is due primarily to an increased focus on
revenue growth in that segment and the acquisition of refrigeration
transportation assets acquired late in the fourth quarter of 2011.
Higher revenues in the Commercial Tanks & Home Heating segment are due
to incremental sales associated with two businesses acquired in 2011.
The Company incurred a loss from continuing operations of $2.9 million
in the fourth quarter of 2012 compared to generating income of $16.1 in
the same period in the prior year. This was driven largely by the
decrease in the value of the portfolio of publicly-traded securities
and equity in losses of associates of $1.8 million.
Net income from discontinued operations for both years consists of the
results of Butterfly Holdings LP (formerly Countdown LP), which was
entirely divested during 2011 with the final contingent payment earned
in the fourth quarter of 2012.
The value of our portfolio of publicly-traded securities decreased in
the fourth quarter of 2012 compared to an increase in the fourth
quarter for 2011, leading to comprehensive loss attributable to equity
holders of the Company of $3.3 million for the fourth quarter of 2012
compared to comprehensive income of $16.3 million for the same period
For the three months ended December 31, 2012, Clarke's basic loss per
share from continuing operations was $0.20, compared to EPS of $0.78
for the same quarter in 2011. This was reflective of the results of
operations for each quarter.
The Commercial Tanks & Home Heating segment delivered strong financial
performance in 2012 and we expect this strong performance to continue
in 2013. The 2012 results for the Freight Transportation segment were
reasonable despite challenging market conditions and the Company
believes we will meet or exceed the 2012 results in 2013.
The Company believes that its publicly-traded securities continue to be
undervalued by the public markets. The Company has purchased additional
shares of those issuers where the undervaluation is most pronounced and
will continue to do so as market conditions permit. The Company also
intends to become more active in the governance and management of those
issuers where the undervaluation is most pronounced with a view to
unlocking the value we believe exists. Subsequent to the year ended
December 31, 2012, the company disposed of two publicly-traded
securities at significantly higher prices than those paid for the
During the year the Company continued to return capital to shareholders.
The Company repurchased 370,402 shares during the year at an average
price of $4.21 per share. Additionally, the Company reinstated a
quarterly dividend of $0.06 per share in the third quarter. The Company
will continue to repurchase its shares depending on market prices and
the Board of Directors will consider the merits of increasing the
Company's dividend in coming quarters.
Further information about Clarke, including Clarke's Consolidated
Financial Statements and Management's Discussion & Analysis for the
year ended December 31, 2012, is available at www.sedar.com and www.clarkeinc.com.
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; CKI.DB.A); for
more information about Clarke Inc., please visit our website at www.clarkeinc.com.
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",
"budget", "estimates", "forecasts", "intends", "anticipates" or "does
not anticipate", or "believes", or equivalents or variations, including
negative 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 price of
securities held by the Company, changes in these securities holdings,
changes to the Company's hedging practices, currency fluctuations,
requirements for additional capital, changes to government regulations
and the timing and possible outcome of pending litigation.
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
With respect to the Company's Investment segment, such risks and
uncertainties include, without limitation, the Company's investment
strategy, legal and regulatory risks, general market risk, potential
lack of diversification in the Company's investments, reliance on
certain key executives, interest rates and foreign currency
fluctuations and other factors. With respect to the Company's Freight
Transportation segment, such risks and uncertainties include, without
limitation, competition, expiry of certain leases, labour relations,
the use of third party service providers, dependence on certain
personnel, fuel costs, weather conditions, customer relationships,
claims, litigation and insurance, government regulation of the
transport industry and other factors. With respect to the Company's
Commercial Tanks & Home Heating segment, such risks and uncertainties
include, without limitation, the costs of housing and major consumer
products, energy costs, alternative energy sources, steel costs,
product liability claims, foreign exchange risk, and other factors.
Other general risks and uncertainties include, without limitation,
environmental considerations, use of information technology and
information systems, safety issues, concentration of sales among a
small number of customers, the seasonality of business cycles for
certain segments, commodity market risk, risks associated with
investment in derivative instruments 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.
For further information:
Chief Financial Officer
Telephone: (902) 442-3987