Clairvest Reports Fiscal 2016 Third Quarter Results

TORONTO, ON--(Marketwired - February 08, 2016) - Clairvest Group Inc. (TSX: CVG) today reported results for the quarter and nine months ended December 31, 2015. (All figures are in Canadian dollars unless otherwise stated)

Highlights

• December 31, 2015 book value was $468.3 million or $30.78 per share versus $455.0 million or $30.00 per share at September 30, 2015
• Net income for the quarter and for the nine months was $11.9 million or $0.78 per share and $22.7 million or $1.50 per share respectively
• Clairvest received total proceeds of $14.8 million on the sale of Casino New Brunswick ("CNB") for a 1.5 times return on investment
• Clairvest invested $11.0 million to increase its profit participation interest in the Grey Eagle Casino
• Subsequent to quarter end, Clairvest increased its ownership in Casino Osorno and Casino Sol Calama
• Subject to the approval of the Toronto Stock Exchange, Clairvest's Board of Directors approved a new normal course issuer bid

Clairvest's book value was $468.3 million or $30.78 per share at December 31, 2015, compared with $455.0 million or $30.00 per share at September 30, 2015. The increase in book value per share for the quarter was attributable to net income for the quarter of $11.9 million, or $0.78 per share. For the nine months ended December 31, 2015, net income was $22.7 million or $1.50 per share.

At December 31, 2015, Clairvest had $776.1 million of capital available for future acquisitions through treasury funds, credit facilities, access to funds in its acquisition entities and uncalled committed capital in various Clairvest Equity Partnerships (the "CEP Funds"). 

During the quarter, Clairvest and CEP III completed the sale of CNB. Clairvest, through an acquisition entity, realized $14.8 million in total proceeds, which included full repayment of debentures, equity distributions as well as interest and fees, against its original investment of $9.8 million. The sale of CNB also resulted in $5.4 million of carried interest paid by CEP III, $2.7 million of which was ultimately paid to Clairvest. As part of the transaction, rather than an escrow holdback, Clairvest agreed to a net guarantee of $13.5 million to fund any valid claims made by the purchaser under the indemnity provisions of the sale for a specified period of time. Any funding pursuant to the guarantee will be allocated 25% to Clairvest and 75% to CEP III.