HALIFAX, Nov. 8, 2013 /CNW/ - Clarke Inc. ("Clarke" or the "Company")
(TSX: CKI CKI.DB.A) today announced its results for the three and nine
months ended September 30, 2013.
RESULTS OF OPERATIONS
Highlights of the interim condensed consolidated financial statements
for the three and nine months ended September 30, 2013 compared to the
three and nine months ended September 30, 2012 are as follows:
|
|
Three months ended September 30, 2013 $
|
Three months
ended
September 30,
2012
$
|
Nine months ended September 30, 2013 $
|
Nine months
ended
September 30,
2012
$
|
Revenue and other income
|
87.5
|
71.4
|
208.7
|
179.4
|
Income from continuing operations and net income attributable to equity
holders of the Company
|
21.5
|
11.5
|
31.8
|
3.6
|
Comprehensive income attributable to equity holders of the Company
|
23.1
|
12.3
|
35.7
|
6.2
|
Basic earnings per share ("EPS") (in dollars)
|
|
|
|
|
|
Income from continuing operations and net income
|
1.30
|
0.69
|
1.92
|
0.21
|
Total assets
|
297.0
|
239.2
|
297.0
|
239.2
|
Cash dividends declared per share
(in dollars)
|
0.10
|
0.06
|
0.24
|
0.06
|
Book value per share (in dollars)
|
7.07
|
5.44
|
7.07
|
5.44
|
For the three and nine months ended September 30, 2013, the Company
generated net income attributable to equity holders of the Company of
$21.5 million and $31.8 million or $1.30 and $1.92 per share compared
with net income of $11.5 million and $3.6 million or $0.69 and $0.21
per share in the corresponding periods in 2012.
During the three and nine months ended September 30, 2013, the
Investment segment had realized and unrealized gains on its marketable
securities of $15.1 million and $22.7 million, compared to realized and
unrealized gains of $8.2 million and $0.3 million for the same periods
in 2012. The Company also generated dividend revenue of $1.5 million
and $4.0 million for the three and nine months ended September 30,
2013, compared with dividend revenue of $0.7 million and $2.3 million
for the same period in 2012. This increase is attributable to the
purchase of additional dividend paying securities and the introduction
of dividends by various investee companies.
The Freight Transportation segment generated EBITDA of $5.7 million and
$11.5 million for the three and nine months ended September 30, 2013,
compared to $5.6 million and $10.5 million for the same periods in
2012. The improved results in this segment year over year are
attributable to higher margin revenue in several business lines,
reduced operating costs, the turnaround of the refrigeration
transportation business and a decrease in accidents and claims.
During the quarter, an entity in the Commercial Tanks & Home Heating
segment acquired 90% of Pro-Par Group ("Pro-Par"), a Sherbrooke, Quebec
based company with operations in Quebec and Ontario with over 80
employees. Pro-Par is an established and recognized leader in the
manufacturing of storage tanks, dispensers and transport units for the
Canadian propane industry. Pro-Par's management will continue to own
the remaining 10% of the company.
The Commercial Tanks & Home Heating segment generated EBITDA of $3.0
million and $5.8 million for the three and nine months ended September
30, 2013 compared to $2.5 million and $6.1 million for the same periods
in 2012. The 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 segment will improve during the remainder of the
year due in part to the Pro-Par acquisition.
Clarke's Board of Directors also announced a quarterly dividend of $0.10
per Common Share payable on December 13, 2013 to shareholders of record
at the end of business on November 29, 2013.
Subsequent to the end of the quarter, Clarke completed the sale of its
shares of Bonnett's Energy Corp., receiving approximately $25.9 million
on the sale. Clarke also announced, on October 31, 2013 that it had
entered into an agreement for the sale of its shares in its truckload,
less-than-truckload and freight logistics businesses to Transforce Inc.
("Transforce") and expects to receive proceeds of approximately $94.0
million on completion of this transaction (consisting of $88.0 million
for the business and $6.0 million as a working capital adjustment).
Please refer to our press release dated October 31, 2013 for additional
details of this transaction.
Also subsequent to the end of the quarter, Clarke disposed of the
majority of its shares of Vitran Corporation Inc. ("Vitran") for
proceeds of US$8.2 million and entered into a lock-up agreement with
Transforce for the remainder of its shares of Vitran in the event
Transforce commences an offer to acquire all of Vitran prior to a
certain date.
Further information about Clarke, including Clarke's Interim Condensed
Consolidated Financial Statements and Management's Discussion &
Analysis for the three and nine months ended September 30, 2013, is
available at www.sedar.com and www.clarkeinc.com.
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; 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
forward-looking statements.
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.