Clairvest Reports Fiscal 2020 Third Quarter Results - Seite 2

Also during the quarter, Top Aces, a portfolio company of Clairvest and CEP IV, completed an equity financing of $100 million which comprised $20 million from existing shareholders and $80 million from a new investor. Clairvest and CEP IV made a combined $5 million follow-on investment as part of this equity financing, Clairvest’s portion of which was $2.1 million. As at December 31, 2019, Clairvest’s investment in Top Aces was carried at the implied value of this equity financing. 

Subsequent to quarter end, Clairvest and CEP IV completed the sale of their interest in County Waste for aggregate proceeds of US$170.5 million and at closing, and a deferred payment which is based on achieving certain corporate milestones, the probability of which is currently unknown. At closing, the sale proceeds represented 3.6 times invested capital, or an IRR of 30% over the 6.5 year investment life. Including the deferred payment, total sale proceeds may be up to 4.5 times invested capital. In Canadian dollar terms, Clairvest received sale proceeds of $59.3 million at closing against its cost of $14.8 million, or 4.0 times invested capital. As at December 31, 2019, Clairvest’s investment in County Waste was carried at a value which approximated the sale proceeds received at closing.

Also subsequent to quarter end, Clairvest and CEP V made a US$29 million minority equity investment in DTG Recycle, a waste hauling and recycling company with operations concentrated in the greater Seattle-Tacoma area of Washington State. Clairvest’s portion of the investment was US$8.7 million (C$11.3 million). 

“We welcome the start of our partnership with DTG Recycle and are pleased with the returns generated on the exits of GTA Gaming and County Waste. We are also pleased with the progress of the existing portfolio, particularly the material milestone at Top Aces. The $100 million equity financing will support Top Aces’ expansion into the United States after its recent award of an IDIQ, through which it expects to provide adversary air services to the United States Air Force,” said Ken Rotman, CEO of Clairvest.

Subject to the approval of the Toronto Stock Exchange, Clairvest’s Board of Directors has approved a new normal course issuer bid to purchase up to 5% of the outstanding common shares on the Toronto Stock Exchange during a 12-month period expected to commence on March 7, 2020.

Summary of Financial Results – Unaudited

Financial Results(1)	Quarter ended		Nine months ended
	December 31		December 31
	2019	2018	2019	2018
($000’s, except per share amounts)	$	$	$	$
Net investment gain (loss)	86,848	24,258	120,498	(108,661	)
Net carried interest income – realized and unrealized changes	18,534	4,206	22,473	29,971
Distributions, interest income, dividends and fees	5,388	6,068	24,363	229,213
Total expenses, excluding income taxes	26,402	5,892	60,099	43,253
Net income and comprehensive income	73,046	24,032	94,435	92,060
Basic and fully diluted net income per share	4.84	1.59	6.26	6.07