TORONTO, Nov. 13, 2024 (GLOBE NEWSWIRE) — Clairvest Group Inc. (TSX: CVG) today reported results for the fiscal 2025 second quarter and six months ended September 30, 2024. (All figures are in Canadian dollars unless otherwise stated)
Highlights
- September 30, 2024 book value was $1,196.9 million or $84.06 per share compared with $1,186.2 million or $81.02 per share as at June 30, 2024
- Net income for the quarter ended September 30, 2024 was $39.0 million or $2.68 per share
- Net income for the six months ended September 30, 2024 was $62.9 million of $4.31 per share
- Clairvest and Clairvest Equity Partners V (“CEP V”) completed the sale of Winters Bros. Waste Systems of Long Island (“Winters Bros. Long Island”) realizing a 7.5x multiple of invested capital
- Clairvest repurchased for cancellation 404,020 shares for a total cost of $28.3 million
- Clairvest announces the addition of Les Viner to its board of directors
Clairvest’s book value was $1,196.9 million or $84.06 per share as at September 30, 2024, compared with $1,186.2 million or $81.02 per share as at June 30, 2024. For the quarter ended September 30, 2024, Clairvest recorded net income of $39.0 million, or $2.68 per share, which was primarily driven by a net increase in the valuation of Clairvest’s private equity investment portfolio in the waste management and gaming industries. Also during the quarter, Clairvest purchased and cancelled 404,020 common shares at an average price of $70 per share, or a total cost of $28.3 million, the majority of which were from a passive shareholder. The share cancellation added $0.37 per share to the book value.
For the six months ended September 30, 2024, the net income was $62.9 million, or $4.31 per share. The net income for the six months was primarily driven by a net gain realized on Winters Bros. Long Island and an increase in the valuation of Clairvest’s private equity investment portfolio over the corresponding period.
In July 2024, and as previously announced in the first quarter press release, Clairvest, CEP V and the Winters family sold Winters Bros. Long Island to Waste Management. At closing, Clairvest received proceeds totalling US$57.4 million. Subsequently in September 2024, certain residual assets not acquired by Waste Management in the aforementioned transaction were sold to another third party which resulted in additional cash proceeds totalling US$5.5 million for Clairvest. To date, Clairvest realized a 7.5x multiple of invested capital and an IRR of 24% on the investment in Winters Bros. Long Island over 9 years.
“We continue to be fully engaged in working with our partners to grow value as well as working with potential new partners to cement transactions. We are making progress on most fronts and dealing with our challenges as they come up,” said Ken Rotman, CEO of Clairvest.
| Summary of Financial Results – Unaudited | ||||
| Financial Results | Quarter ended | Six months ended | ||
| September 30 | September 30 | |||
| 2024 | 2023 | 2024 | 2023 | |
| ($000’s, except per share amounts) | $ | $ | $ | $ |
| Net investment loss | (38,606) | (46,762) | (18,494) | (22,293) |
| Net carried interest from Clairvest Equity Partners III and IV | (593) | 1,212 | 1,531 | 1,803 |
| Distributions, interest income, dividends and fees | 93,725 | 14,311 | 110,428 | 26,120 |
| Total expenses, excluding income taxes | 10,082 | 20,233 | 22,040 | 36,064 |
| Net income (loss) and comprehensive income (loss) | 38,950 | (43,968) | 62,871 | (24,506) |
| Basic and fully diluted net income (loss) per share | 2.68 | (2.93) | 4.31 | (1.63) |
| Financial Position | September 30 | March 31, |
| 2024 | 2024 | |
| ($000’s, except share information and per share amounts) | $ | $ |
| Total assets | 1,354,271 | 1,342,139 |
| Total cash, cash equivalents, temporary investments and restricted cash | 319,649 | 330,193 |
| Carried interest from Clairvest Equity Partners III and IV | 53,719 | 52,188 |
| Corporate investments(1) | 894,135 | 870,660 |
| Total liabilities | 157,393 | 165,842 |
| Management participation from Clairvest Equity Partners III and IV | 42,643 | 41,506 |
| Book value(2) | 1,196,878 | 1,176,297 |
| Common shares outstanding | 14,237,631 | 14,673,701 |
| Book value per share(2) | 84.06 | 80.16 |
(1) Includes carried interest of $124,001 (March 31: $143,617) and management participation of $91,856 (March 31: $103,740) from Clairvest Equity Partners V and VI, and $151,349 (March 31: $90,973) 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 2025 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 $4.4 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 66 different platform companies and generated top quartile performance over an extended period.
Contact Information
Stephanie Lo
Director of 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.
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