Clairvest Reports Fiscal 2021 Third Quarter Results

TORONTO, Feb. 11, 2021 (GLOBE NEWSWIRE) -- Clairvest Group Inc. (TSX: CVG) today reported results for the fiscal 2021 third quarter and nine months ended December 31, 2020 as well as material events which occurred subsequent to quarter end. (All figures are in Canadian dollars unless otherwise stated)

Highlights

• December 31, 2020 book value was $843.0 million or $55.98 per share versus $868.5 million or $57.67 per share as at September 30, 2020. During the quarter, Clairvest paid a $5.00 per share special dividend
• Net income for the quarter ended December 31, 2020 was $49.9 million or $3.32 per share. For the nine months ended December 31, 2020, net income was $90.1 million or $5.98 per share
• Clairvest and Clairvest Equity Partners V (“CEP V”) completed the sale of Right Time Heating and Air Conditioning (“Right Time”) for a 4.7x multiple of invested capital or an IRR of 110%
• Clairvest and Clairvest Equity Partners VI (“CEP VI”) made a new equity investment in F12.NET
• Clairvest and CEP VI made a new equity investment in Brunswick Bierworks
• 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 $843.0 million or $55.98 per share as at December 31, 2020, compared with $868.5 million or $57.67 per share as at September 30, 2020. The decrease in book value for the quarter was attributable to $5.00 per share special dividend which was declared and paid in November 2020. Net income for the quarter was $49.9 million, or $3.32 per share, which resulted from the incremental gains on the sale of Right Time and net valuation changes in our private equity investment portfolio. Net income for the nine months ended December 31, 2020 was $90.1 million, or $5.98 per share.

During the quarter, Clairvest and CEP V completed the sale of Right Time. At closing, Clairvest and CEP V realized sale proceeds of $98.3 million, Clairvest’s portion of which was $29.5 million, against its $6.4 million investment over the two-year holding period. Clairvest is entitled to certain additional proceeds of up to $0.9 million as stipulated in the purchase and sale agreement.

In November 2020, Clairvest and CEP VI made a $36 million equity investment in F12.NET, a leader in the Canadian managed IT services space. F12.NET provides comprehensive technology packages to small and medium enterprises across the country. Clairvest’s portion of the investment was $9.7 million.