HALIFAX, NS, Aug. 9, 2021 /CNW/ - Clarke Inc. ("Clarke" or the
"Company") (TSX: CKI) (TSX: CKI.DB) today announced its results for
the three and six months ended June 30,
2021.
Second Quarter Results
Net income for the three and six months ended June 30, 2021 was $3.1
million and $7.1 million,
respectively compared to net income of $6.9
million and a net loss of $46.2
million for the same periods in 2020. During the three and
six months ended June 30, 2021, the
Company had unrealized gains on its investments of $5.9 million and $3.9
million, respectively, compared to unrealized gains of
$12.9 million and unrealized losses
of $52.1 million for the same periods
in 2020. The Company had realized gains on its investments of nil
and $10.2 million for the three and
six months ended June 30, 2021
compared to nil and $29.0 million for
the same periods in 2020.
During the second quarter of 2021, the Company's book value per
common share increased by $1.29, or
10.6%. The increase can primarily be ascribed to (i) an increase in
the after-tax value of our pension plan surplus of $5.1 million, or $0.34 per common share, (ii) unrealized gains on
our marketable securities of $5.9
million, or $0.39 per common
share, (iii) an increase in the after-tax value of certain property
and equipment upon revaluation of $10.0
million, or $0.67 per common
share, offset by (iv) losses in our operating businesses and other
corporate overhead in an amount of $3.1
million, or $0.20 per common
share. Our book value per common share at the end of the second
quarter was $13.50 while our common
share price was $8.40.
COVID-19
The COVID-19 pandemic continues to have an adverse effect on the
Company's operating business, particularly its hotels, driven by
the decline in both leisure and business travel. The impact of
COVID-19 on the ferry business has been significantly reduced from
the same period in 2020 but operations remain below normal
operating levels. The ferry operations are expected to remain
somewhat subdued in 2021 compared to historic operating levels.
Regardless of the subdued revenues, the Company's efforts to
significantly reduce costs and the positive impact of several
government subsidies have allowed us to maintain operations and we
expect to generate positive cash flow from these businesses in the
year.
Additional commentary on our second quarter results can be found
in our Management's Discussion & Analysis for the three and six
months ended June 30, 2021.
Other Information
Further information about Clarke, including Clarke's Interim
Condensed Consolidated Financial Statements and Management's
Discussion & Analysis for the three and six months ended
June 30, 2021, is available at
www.sedar.com and www.clarkeinc.com.
Highlights of the interim condensed consolidated financial
statements for the three and six months ended June 30, 2021 compared to the three and six
months ended June 30, 2020 are as
follows:
|
|
|
|
|
|
|
(in millions,
except per share amounts)
|
|
Three months
ended
June 30,
2021
|
Three months
ended
June 30,
2020
|
Six months
ended
June 30,
2021
|
Six months
ended
June 30,
2020
|
|
|
|
|
|
|
|
|
$
|
$
|
$
|
$
|
|
Hotel and management
services
|
|
6.0
|
3.8
|
11.7
|
17.6
|
|
Provision of
services
|
|
1.5
|
0.6
|
1.6
|
0.8
|
|
Investment and other
income (loss)*
|
|
5.9
|
13.1
|
14.3
|
(41.4)
|
|
Net income
(loss)
|
|
3.1
|
6.9
|
7.1
|
(46.2)
|
|
Comprehensive income
(loss)
|
|
18.0
|
4.4
|
32.7
|
(50.4)
|
|
Basic earnings (loss)
per share ("EPS")
|
|
0.21
|
0.43
|
0.48
|
(2.85)
|
|
Diluted
EPS
|
|
0.20
|
0.38
|
0.44
|
(2.85)
|
|
Total
assets
|
|
372.2
|
286.3
|
372.2
|
286.3
|
|
Long-term financial
liabilities
|
|
136.0
|
98.7
|
136.0
|
98.7
|
|
Book value per
share
|
|
13.50
|
8.41
|
13.50
|
8.41
|
|
|
*Investment and
other income (loss) include unrealized/realized gains/losses on
investments, hotel revaluations presented in the statement of
earnings, interest income, pension expense/recovery, insurance
proceeds, gains/losses on disposal of assets, and foreign exchange
gains/losses.
|
About Clarke
Halifax-based Clarke invests in
a variety of private and publicly-traded businesses and
participates actively where necessary to enhance the performance of
such businesses and increase its return. Clarke's securities trade
on the Toronto Stock Exchange (CKI, CKI.DB); for more information
about Clarke Inc., please visit our website at
www.clarkeinc.com.
Cautionary Statement Regarding Use of Non-IFRS Accounting
Measures
This press release makes reference to the Company's book value
per share as a measure of the performance of the Company as a
whole. Book value per share is measured by dividing shareholders'
equity at the date of the statement of financial position by the
number of Common Shares outstanding at that date. Clarke's method
of determining this amount may differ from other companies' methods
and, accordingly, this amount may not be comparable to measures
used by other companies. This amount is not a performance measure
as defined under IFRS and should not be considered either in
isolation of, or as a substitute for, net earnings prepared in
accordance with IFRS.
Note on Forward-Looking Statements and Risks
This press release may contain or refer to certain
forward-looking statements relating, but not limited, to the
Company's expectations, intentions, plans and beliefs with respect
to the Company. Often, but not always, forward-looking statements
can be identified by the use of words such as "plans", "expects",
"does not expect", "is expected", "budgets", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate",
"believes", or equivalents or variations of such words and phrases,
or state that certain actions, events or results, "may", "could",
"would", "should", "might" or "will" be taken, occur or be
achieved. Forward-looking statements include, without limitation,
those with respect to the future or expected performance of the
Company's investee companies, the future price and value of
securities held by the Company, changes in these securities
holdings, the future price of oil, changes to the Company's hedging
practices, currency fluctuations and requirements for additional
capital. Forward-looking statements rely on certain underlying
assumptions that, if not realized, can result in such
forward-looking statements not being achieved. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that could cause the actual results of the Company to be
materially different from the historical results or from any future
results expressed or implied by such forward-looking statements.
Such risks and uncertainties include, among others, the Company's
investment strategy, legal and regulatory risks, general market
risk, potential lack of diversification in the Company's
investments, interest rates, foreign currency fluctuations, the
sale of Company investments, the fact that dividends from investee
companies are not guaranteed, reliance on key executives, commodity
market risk, risks associated with investment in derivative
instruments and other factors. With respect to the Company's
investment in hotel and ferry operations, such risks and
uncertainties include, among others, weather conditions, safety,
claims and insurance, uninsured losses, changes in levels of
business and commercial travel and tourism, increases in the supply
of accommodations in local markets, the recurring need for
renovation and improvement of hotel properties, labour relations,
and other factors.
Although the Company has attempted to identify important factors
that could cause actions, events or results not to be as estimated
or intended, there can be no assurance that forward-looking
statements will prove to be accurate as actual results and future
events could differ materially from those anticipated in such
statements. Other than as required by applicable Canadian
securities laws, the Company does not update or revise any such
forward-looking statements to reflect events or circumstances after
the date of this document or to reflect the occurrence of
unanticipated events. Accordingly, readers should not place undue
reliance on forward-looking statements.
SOURCE Clarke Inc.