HALIFAX, May 14, 2013 /CNW/ - Clarke Inc. ("Clarke" or the "Company")
(TSX: CKI CKI.DB.A) today announced its results for the three months
ended March 31, 2013.
RESULTS OF OPERATIONS
Highlights of the interim condensed consolidated financial statements
for the three months ended March 31, 2013 compared to the three months
ended March 31, 2012 are as follows:
Three months ended
March 31, 2013
Three months ended
March 31, 2012
Revenue and other income
Income from continuing operations attributable to equity holders of the
Net income attributable to equity holders of the Company
Comprehensive income attributable to equity holders of the Company
Basic earnings per share ("EPS") (in dollars)
Income from continuing operations and net income
Cash dividends declared per share (in dollars)
Book value per share (in dollars)
Net income attributable to equity holders of the Company for the three
months ended March 31, 2013 was $3.1 million, compared with net income
of $3.7 million for the same period in 2012. During the three months
ended March 31, 2013, the Company had realized gains on its
publicly-traded securities of $3.0 million, compared to realized losses
of $2.0 million for the same period in 2012. The Company had unrealized
gains on its publicly-traded securities of $0.6 million for the three
months ended March 31, 2013, compared to unrealized gains of $7.0
million for the same period in 2012. Realized gains in the first
quarter of 2013 were the result of exiting our investments in Vitran
Corporation Inc. and Imvescor Restaurant Group Inc.
The Freight Transportation segment had a strong quarter generating
EBITDA (before intercompany dividend revenue) of $1.7 million for the
three months ended March 31, 2013 compared to $0.9 million for the
three months ended March 31, 2012. The significantly improved results
in this segment are attributable to higher margin revenue, the
turnaround of the refrigeration transportation business, lower
operating costs and a decrease in accidents and claims.
The Commercial Tanks & Home Heating segment generated EBITDA of $1.4
million for the three months ended March 31, 2013 compared to $2.0
million for the same period in 2012. This year to date decrease is
mainly due to strong earnings achieved at the start of 2012 by the
commercial tanks division. Results in this division were not repeated
to this extent in early 2013 as fluctuations in revenues are expected.
However, the Company believes that results for this division and the
segment as a whole in 2013 will meet or exceed that of 2012.
The Company has also reduced its debt levels and its cost of borrowing
throughout 2012 and into 2013 which has translated into meaningful
reductions of interest expense.
Basic earnings per share from continuing operations for the three months
ended March 31, 2013 was $0.19, compared to a basic earnings per share
of $0.22 for the three months ended March 31, 2012, a decrease of $0.03
per share. Book value per share at March 31, 2013 was $5.42 compared to
$5.37 on March 31, 2012 and reflects the payment of $0.18 per share of
dividends in the last twelve months.
Clarke's Board of Directors also announced an increase in its quarterly
dividend to $0.08 per Common Share, from the previous level of $0.06
per Common Share. This dividend is payable on June 14, 2013 to
shareholders of record at the end of business on May 31, 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.
George Armoyan, President and CEO of Clarke commented: "Clarke is
dedicated to providing a dividend that is sustainable and meaningful to
shareholders. Today's increase in our dividend highlights our
commitment to providing an attractive yield to shareholders and
reflects our confidence in the Company's underlying businesses."
Further information about Clarke, including Clarke's Interim Condensed
Consolidated Financial Statements and Management's Discussion &
Analysis for the three months ended March 31, 2013, 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