HALIFAX, Aug. 13, 2019 /CNW/ - Clarke Inc. ("Clarke" or the "Company") (TSX: CKI) today announced its results for the three and six months ended June 30, 2019.
Second Quarter Results
Net income (loss) attributable to equity holders of the Company for the three and six months ended June 30, 2019 was ($1.6) million and $35.5 million, respectively, compared with 0.9 and $3.0 million for the same periods in 2018. During the three and six months ended June 30, 2019, the Company had unrealized losses on its investments of $3.3 million and unrealized gains of $0.7 million, respectively, compared to losses of $2.5 million and $0.4 million for the same periods in 2018. The Company had realized gains on its investments of nil and $12.5 million for the three and six months ended June 30, 2019 compared with $2.2 million for the three and six month periods in 2018.
In the second quarter of 2019, the Company's book value per share decreased by $0.44 or 2.9%. The decrease can be ascribed to (i) negative $0.27 per Common Share resulting from a decrease in the value of our pension plan surplus due to a lower discount rate, and (ii) negative $0.22 per Common Share as a result of consolidating Holloway Lodging Corp.'s ("Holloway") results into our own. These negative factors were offset slightly by investment income and cash flows from our ferry business. Our book value per Common Share at the end of the quarter was $14.79 while our Common Share price was $13.00.
Additional commentary on our second quarter results can be found in our Management's Discussion & Analysis for the three and six months ended June 30, 2019.
Other Information
Further information about Clarke, including Clarke's Interim Condensed Consolidated Financial Statements and Management's Discussion & Analysis for the three and six months ended June 30, 2019, is available at www.sedar.com and www.clarkeinc.com.
Highlights of the interim condensed consolidated financial statements for the three and six months ended June 30, 2019 compared to the three and six months ended June 30, 2018 are as follows:
(in millions, except per share amounts) |
Three months ended June 30, 2019 $ |
Three months ended June 30, 2018 $ |
Six months ended June 30, 2019 $ |
Six months ended June 30, 2018 $ |
Hotel and management services |
21.1 |
― |
36.9 |
― |
Provision of services |
2.0 |
1.7 |
2.2 |
1.9 |
Bargain purchase |
― |
― |
22.1 |
― |
Investment and other income* |
(2.6) |
0.9 |
14.7 |
4.0 |
Net income attributable to equity holders of the Company |
(1.6) |
0.9 |
35.5 |
3.0 |
Comprehensive income attributable to equity holders of the Company |
(5.0) |
1.0 |
31.3 |
3.3 |
Basic earnings per share |
(0.13) |
0.07 |
2.93 |
0.24 |
Diluted earnings per share |
(0.13) |
0.07 |
2.91 |
0.24 |
Total assets |
433.8 |
164.1 |
433.8 |
164.1 |
Long-term financial liabilities |
109.3 |
2.4 |
109.3 |
2.4 |
Book value per share |
14.79 |
10.99 |
14.79 |
10.99 |
*Investment and other income (loss) include unrealized/realized gains/losses on investments, dividend and interest income, pension recovery/expense, and foreign exchange gains/losses. |
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.
Michael Rapps, President and CEO, at (416) 855-1925 or Stephen Cyr, CFO, at (902) 442-3415
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