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Press release from Marketwire

Clairvest Reports Fiscal 2013 Fourth Quarter and Year-End Results

Tuesday, June 25, 2013

Clairvest Reports Fiscal 2013 Fourth Quarter and Year-End Results

16:36 EDT Tuesday, June 25, 2013

TORONTO, ONTARIO--(Marketwired - June 25, 2013) - Clairvest Group Inc. (TSX:CVG) today reported results for the quarter and year ended March 31, 2013. (All figures are in Canadian dollars unless otherwise stated)

Highlights

  • March 31, 2013 book value was $349.7 million or $23.12 per share versus $22.41 per share at December 31, 2012 and $20.93 per share at March 31, 2012, an increase of $2.19 per share over the last twelve months. Non-restricted cash or near cash represented 49.9% of the March 31, 2013 book value, or $11.54 per share
  • Net income for the quarter and for the year was $10.1 million or $0.67 per share and $35.8 million or $2.36 per share respectively
  • Clairvest and CEP III realized a combined $79.8 million through the sale of PEER 1, a global online IT infrastructure provider, realizing a gain of $54.6 million
  • Centaur Gaming completed the acquisition of Indiana Grand Casino and Indiana Downs racetrack. Clairvest, CEP IV, CEP IV-A and co-investors invested US$30.4 million in support of the acquisition. In conjunction with the acquisition, Centaur Gaming completed a financing where Clairvest, CEP IV, CEP IV-A and co-investors received US$91.1 million in principal repayments
  • Clairvest, CEP IV and CEP IV-A invested a combined $39.5 million in CRS, an equipment rental company based in Ontario, Canada
  • Clairvest, CEP IV and CEP IV-A invested a combined US$7.0 million in MAG, a U.S.-based specialty aviation and intelligence, surveillance and reconnaissance service provider
  • Subsequent to quarter end, Clairvest, CEP IV and CEP IV-A invested a combined US$15.0 million in County Waste of Virginia, a private regional solid waste management company based in West Point, Virginia.
  • Subsequent to quarter end, Clairvest declared an annual ordinary dividend of $1.5 million, or $0.10 per share, and a special dividend of $2.0 million, or $0.1312 per share

Clairvest's book value was $349.7 million or $23.12 per share at March 31, 2013, compared with $22.41 per share at December 31, 2012 and $20.93 per share at March 31, 2012. The increase in book value per share was primarily attributable to net income for the quarter of $10.1 million, or $0.67 per share. Net income for the year was $35.8 million or $2.36 per share.

As previously announced, during the quarter ended March 31, 2013, Clairvest and CEP III sold their interests in PEER 1 Network Enterprises Inc. ("PEER 1"), a company which was publicly traded on the TSX under symbol PIX, at a price of $3.85 in cash per share. Clairvest and CEP III received cash proceeds of $79.8 million from the sale. On the initial combined investment of $25.2 million, Clairvest and CEP III generated a pre-tax return of 3.2 times invested capital, or a 40% IRR, over the life of this investment. On closing Clairvest realized $19.9 million on a $6.3 million investment for a $13.6 million gain, $13.5 million of which had been previously recognized.

As previously announced, during the quarter ended March 31, 2013, Centaur Gaming completed the acquisition of Indiana Grand Casino and Indiana Downs racetrack ("Indiana Grand"). With the acquisition, Centaur Gaming now owns both Hoosier Park Racing & Casino and Indiana Grand, the only two racinos in the Indianapolis region. Clairvest, CEP IV, CEP IV-A and other co-investors (the "investors") invested US$30.4 million in support of the Indiana Grand acquisition. Prior to this investment, the investors had an aggregate investment in Centaur Gaming of US$112.6 million. In conjunction with this transaction, Centaur Gaming completed a financing which resulted in US$91.0 million in principal repayments to the investors, bringing net investment by the investors in Centaur Gaming at March 31, 2013 to US$52.0 million. Consistent with its ownership, Clairvest had an investment in Centaur Gaming of US$36.2 million at December 31, 2012 and invested an additional US$8.4 million in support of the Indiana Grand acquisition. Clairvest received total principal repayments of US$30.1 million on the financing bringing Clairvest's net investment in Centaur Gaming at March 31, 2013 to US$14.5 million.

As previously announced, during the quarter ended March 31, 2013, Clairvest, CEP IV and CEP IV-A invested a combined $39.5 million for a 51.9% ownership interest in CRS Contractors Rental Supply Limited Partnership ("CRS"), a leading provider of construction equipment rental and related merchandise across 21 locations in Ontario, Canada. Clairvest's portion of the investment was $10.6 million for a 13.9% ownership interest in CRS.

During the quarter ended March 31, 2013, Clairvest, CEP IV and CEP IV-A invested a combined US$7.0 million for a 30.0% ownership interest in MAG Defense Services ("MAG"), a U.S.-based specialty aviation and intelligence, surveillance and reconnaissance service provider. Clairvest's portion of the investment was $1.9 million for an 8.0% ownership interest.

"This was a very active quarter for Clairvest. Our proactive investment approach created three new opportunities and deployed over $90 million of capital to new and existing investments," said Jeff Parr, Co-Chief Executive Officer and Managing Director of Clairvest "The returns achieved on the recent sale of PEER 1 and the continued progress of the portfolio are a tribute to our proven investment strategy of creating intrinsic value within our portfolio companies. We are pleased with the growth in book value over the last year and will continue to apply our rigorous standards in identifying, qualifying and closing on new investment opportunities."

Subsequent to quarter end, Clairvest, CEP IV and CEP-IV-A invested a combined US$15.0 million for an 46.9% ownership interest in County Waste of Virginia, LLC ("County Waste"), a private regional solid waste management company based in West Point, Virginia. Clairvest's portion of the investment was US$4.1 million for a 12.5% ownership in County Waste.

Subsequent to quarter end, Clairvest declared an annual ordinary dividend of $0.10 per share and a special dividend of $0.1312 per share, such that in aggregate, the dividends represent 1% of the March 31, 2013 book value. Both dividends will be payable July 26, 2013 to common shareholders of record as of July 9, 2013 and are eligible dividends for Canadian income tax purposes.

Summary of Financial Results - Unaudited

Financial Performance Measures Quarters ended
March 31
Year ended
March 31
2013 2012 2013 2012
($000's, except per share amounts) $ $ $ $
Net realized gains (losses) on corporate investments (377 ) 44 9,009 545
Net changes in unrealized gains on corporate investments 9,009 6,404 4,598 16,590
Net income 10,111 5,348 35,763 22,416
Basic net income per share 0.67 0.35 2.36 1.46
Fully diluted net income per share 0.66 0.34 2.32 1.43
Financial Condition Measures March
2013
March
2012
($000's, except per share amounts) $ $
Total assets 378,936 338,424
Total cash, cash equivalents and temporary investments(1) 174,513 97,553
Total corporate investments 176,390 187,876
Total liabilities 29,248 21,997
Book value 349,688 316,427
Book value per share 23.12 20.93
(1) Excludes restricted temporary investments

Clairvest's annual 2013 financial statements and MD&A are available on the SEDAR website at www.sedar.com and on the Clairvest website at www.clairvest.com.

About Clairvest

Clairvest Group Inc. is a private equity investor which invests its own capital, and that of third parties through the Clairvest Equity Partners ("CEP") limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.

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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:
Clairvest Group Inc.
Maria Klyuev
Director, Investor Relations and Marketing
(416) 925-9270
(416) 925-5753 (FAX)
mariak@clairvest.com
www.clairvest.com

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