Clairvest Reports Fiscal 2020 Third Quarter Results

TORONTO, Feb. 11, 2020 (GLOBE NEWSWIRE) -- Clairvest Group Inc. (TSX: CVG) today reported results for the fiscal 2020 third quarter and nine months ended December 31, 2019. (All figures are in Canadian dollars unless otherwise stated)

Highlights

• December 31, 2019 book value was $863.3 million or $57.19 per share versus $790.3 million or $52.35 per share as at September 30, 2019
• Net income for the quarter and for the nine months ended December 31, 2019 was $73.0 million or $4.84 per share and $94.4 million or $6.26 per share, respectively
• Clairvest and Clairvest Equity Partners V (“CEP V”) completed the sale of their interest in GTA Gaming for cash proceeds of $51.8 million
• Clairvest and CEP V rolled 100% of their equity interest in Accel Entertainment, Inc. (“Accel Entertainment”) into the business combination of Accel Entertainment and TPG Pace Holdings Corp. (“TPG Pace”)
• Top Aces, a portfolio company of Clairvest and Clairvest Equity Partners IV (“CEP IV”), completed an equity financing of $100 million from new and existing investors
• Subsequent to quarter end, Clairvest and CEP IV completed the sale of their interest in County Waste of Virginia, LLC (“County Waste”) for cash proceeds of US$170.5 million
• Subsequent to quarter end, Clairvest and CEP V completed a US$29 million minority investment in DTG Recycle
• 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 $863.3 million or $57.19 per share as at December 31, 2019, compared with $790.3 million or $52.35 per share as at September 30, 2019. The increase in book value per share for the quarter was primarily attributable to net income for the quarter of $73.0 million, or $4.84 per share. The net income for the quarter was primarily attributable to the various investment and divesture transactions as articulated in this press release. For the nine months ended December 31, 2019, net income was $94.4 million or $6.26 per share.

In November 2019, Clairvest and CEP V completed the sale of their interest in GTA Gaming for cash proceeds of $51.8 million. Clairvest’s portion of the proceeds was $15.5 million, compared to the cost and carrying value of $9.0 million as at September 30, 2019.

In November 2019, Accel Entertainment, a portfolio company of Clairvest and CEP V, completed a business combination with TPG Pace. In support of the transaction, Clairvest and CEP V rolled 100% of their equity interest in Accel Entertainment into the new combined entity (“Accel”) and received 16,241,871 Class A-1 Shares, 1,223,368 Class A-2 Shares and 996,840 private warrants of Accel.  The Class A-1 Shares are publicly listed on the NYSE under symbol ACEL.  On a standalone basis, the 16,241,871 Class A-1 Shares held by Clairvest and CEP V represents 21.2% of the total Class A-1 Shares outstanding as at December 31, 2019.  Clairvest and CEP V are subject to a 6-month hold period on the Class A-1 Shares. Clairvest and CEP V have customary registration rights with respect to their Class A-1 Shares and would expect any sale of such shares to be conducted pursuant to a resale prospectus. The Class A-2 Shares vest over a three-year period and the conversion into Class A-1 Shares are subject to certain criteria based on share price or earnings. The private warrants have a strike price of US$11.50 per share and expire in five years.  Clairvest holds its Accel investment through CEP V Co-Investment Limited Partnership, and as at December 31, 2019, held 4,872,570 Class A-1 Shares, 367,011 Class A-2 Shares and 299,052 private warrants of Accel.