Clairvest Group Inc.: Appreciation in Investment Portfolio.TORONTO--(BUSINESS WIRE)--July 7, 1998--Clairvest Group Inc. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CVG CVG Convergys Corp CVG Corporación Venezolana de Guayana CVG Clear Vertical Grain (woodworking) CVG Carrier Group CVG Corporacion Venezolana de Guyana CVG Comprehensive Video Group (South Hackensack, NJ, USA) .) Clairvest Group Inc. ("Clairvest") today released results for its fiscal year ended March 31, 1998. Net income for the year was $2,414,000 or 13 per share, an increase of $1,832,000 or 10 per share over the prior year. The improvement in earnings reflects the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. of gains from the sale of certain investments together with increased equity accounted income from investments. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: total revenues increased from $71.9 million for the year ended March 31, 1997 to $108.2 million for 1998. The increase in revenues reflects the inclusion of Signature Security Group in Clairvest's consolidated operations during 1998. Clairvest realizes gains from sale of Western and Sportscope During the year, Clairvest sold its interests in Western Co-Axial Limited ("Western"), the largest independent cable operator in Southern Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , and Sportscope Television Network Limited ("Sportscope"), a programming venture now known as Headline HEADLINE Hybrid Electronic Access and Delivery in the Library Networked Environment Sports. From May 1994 to December December: see month. 1997, Clairvest invested a total of $15.0 million in Western. During fiscal 1998, Clairvest recorded a gain on sale of Western of $2.2 million, dividend income of $1.2 million and interest income of $1.0 million. Over the period of its investment, Clairvest received $21.2 million in total proceeds from its investment in Western. During the period of its investment in Western, Clairvest partnered with Western and Levycorp Communications in developing Sportscope. Clairvest invested $1.0 mids, generating a gain on sale of $1.9 million. Indications of value appreciation within Clairvest's investment portfolio Throughout the year, Clairvest worked with its partners to create value within its portfolio of investments. These efforts are being rewarded as the business fundamentals business fundamentals The general background within which an economy operates including earnings, sales, wage rates, taxes, and inflation. Improving business fundamentals are generally viewed as bullish for stocks, although stock prices at any given point for most of Clairvest's partner companies have improved, resulting in increased valuations. The share prices of Clairvest's publicly traded investments have increased and financings have validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. increases in the value of its privately held investments. These increases in value are not reflected in Clairvest's annual operating results. Appreciation in the value of investments is recognized for financial statement purposes when that appreciation is realized (usually when the investment is sold). Consoltex's share price increases Consoltex Group Inc. ("Consoltex"), the largest Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. based textile textile Any filament, fibre, or yarn that can be made into fabric or cloth, and the resulting material itself. The word originally referred only to woven fabrics but now includes knitted, bonded, felted, and tufted fabrics as well. manufacturer, has seen its share price triple since the time of Clairvest's initial investment in January January: see month. 1997. The appreciation in the share price reflects Consoltex's improved operating results and increased visibility within the financial markets. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Clairvest believes that Consoltex's shares at current market values represent good value. Operational improvements combined with Consoltex's future prospects offer a strong opportunity for value appreciation. As a result, Clairvest purchased 1,175,600 shares in June June: see month. 1998, by way of private agreement. Clairvest now owns 7,374,900 subordinate voting shares Voting Shares Shares that give the stockholder the right to vote on matters of corporate policy making as well as who will compose the members of the board of directors. Notes: Different classes of shares, such as preferred stock, sometimes don't allow for voting rights. of Consoltex representing 43 percent of the outstanding shares. Consoltex is publicly traded on the Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing and Montreal stock exchanges Montreal Stock Exchange See Bourse de Montreal, Inc. (Canadian Derivatives Exchange) . Clairvest to receive second dividend from Datamark Datamark Inc. ("Datamark") is Canada's fourth largest printer of business forms and related items. Due to the company's strong cash flows over a number of years, Datamark was able to pay a special dividend of $1.532 per common share in March 1998. In June 1998, Datamark declared a second dividend of $0.36 per common share payable July July: see month. 14, 1998. Clairvest received $6.4 million from the Datamark dividend paid in March and will receive $1.5 million from the dividend to be paid in July. Both dividends will be netted against Clairvest's investment cost, lowering Clairvest's net cost to $5.1 million. The declaration of the July dividend was in anticipation of Datamark completing its acquisition of Systems Business Forms Limited ("Systems") of Winnipeg Winnipeg, city, Canada Winnipeg (wĭn`ĭpĕg), city (1991 pop. 616,790), provincial capital, SE Man., Canada, at the confluence of the Red and Assiniboine rivers. . The acquisition of Systems was completed July 2, 1998 for total consideration of $9.2 million including cash and shares of Datamark. The acquisition of Systems will strengthen Datamark's position as one of the largest document management and business forms companies in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . Systems, whose customers are predominately in Western Canada
Western Canada, commonly referred to as the West , has few customers in common with Datamark and provides Datamark with the ability to service a broader range of clients on a Canada wide basis. Clairvest currently holds 4,186,270 Datamark common shares, representing 36 percent of Datamark's outstanding shares subsequent to the Systems acquisition. The market value of Clairvest's investment in Datamark is approximately $8.4 million at $2.00 per share (post dividend). Clairvest expects Datamark's earnings to improve and share values to appreciate to more appropriately reflect the company's prospects. NRI NRI Nomura Research Institute (Tokyo, Japan) NRI Non-Resident Indian NRI Natural Resources Institute NRI National Resources Inventory NRI Networked Readiness Index NRI Natural Resources Inventory NRI National Research Institute Industries' growth in sales continues NRI Industries Inc. ("NRI") utilizes proprietary technology to manufacture and market high-quality products and compounds derived from recycled, engineered rubber, to a variety of customers. NRI's sales growth continued in the year ended March 31, 1998. Sales for the year ended March 31, 1998 were $73.0 million compared to $63.9 million for the year ended March 31, 1997. Sales growth is being lead by increases in sales of recycled rubber parts to automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of manufactures and other industrial users. The sale of recycled rubber material has also increased due to the installation of fine grinding grinding, process by which surface material is removed from an object, usually metal, by the abrasive action of a rotating wheel or a moving belt that contains abrasive grains. equipment at NRI's Flat Rock, Michigan For the Flat Rock in Delta County, MI, see . Flat Rock is a city in Wayne County of the U.S. state of Michigan. As of the 2000 census, the city population was 8,488. Flat Rock is home to the AutoAlliance International manufacturing plant, co-owned by Ford Motor Company and Mazda plant. EBITDA increased from $7.0 in 1997 to $8.0 for the year ended March 31, 1998, but declined as a percentage of sales. The decline in EBITDA as a percentage of sales is the result of increased sales and marketing overheads in the parts division and losses generated by the Materials Division. Management is comfortable the investment in sales and marketing in the parts division is generating the intended revenue increase. For the year, NRI's Parts Division generated $10.1 million of EBITDA versus $8.7 million in 1997. Start-up Start-up The earliest stage of a new business venture. losses and difficulty in converting customers from tire tread tread injury to the coronet of the horse's hoof by treading on it by the opposite hoof, or by another horse when they are being worked in a team. If the coronary matrix is injured there may be a subsequent crack or deformity. rubber buffings to scrap tire derived materials have negatively affected results from the Materials Division. The Materials Division lost $1.9 million in EBITDA in 1998. Despite the issues in the Materials Division, NRI is confident in its ability to create value through its material substitution Substitution Arsinoë put her own son in place of Orestes; her son was killed and Orestes was saved. [Gk. Myth.: Zimmerman, 32] Barabbas robber freed in Christ’s stead. [N.T.: Matthew 27:15–18; Swed. Lit. technology now utilized in its Parts Division. NRI is aggressively looking at options to turn this potential into value, including the acquisition of other, and potential joint venture with, rubber companies that would benefit from the use of NRI's technology. Signature offers services coast to coast in Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. In March 1998, Signature Security Group Holdings Pty. Limited ("Signature") completed its largest acquisition to date when it purchased Consolidated Security Systems Australia for AUD AUD In currencies, this is the abbreviation for the Australian Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. $48 million (CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $46 million). The acquisition solidified so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. Signature's position as one of the largest, full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. electronic security companies in Australasia Australasia (ôstrəlā`zhə, –shə), islands of the South Pacific, including Australia, New Zealand, New Guinea, and adjacent islands. The term is sometimes used to include all of Oceania. , where it sells, installs, services and monitors residential and commercial security alarms. As a result of this acquisition and a strengthening in Signature's sales team, the company has doubled its sales of new monthly monitoring revenues. Signature has increased monthly monitoring revenues from AUD$0.9 million per month when Clairvest made its initial investment in March 1997 to AUD$2.8 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , an increase of 318 percent. Acquisitions, which have driven growth to date, will diminish in emphasis as the company shifts its focus for growth to marketing and internal sales. To fund this growth, Signature has raised AUD$35 million (CDN$30 million) in equity at an 85 percent premium to Clairvest's original investment cost and recently negotiated an increase in its bank credit facility to AUD$115 million (CDN$102 million). Clairvest currently owns 44 percent of Signature's equity. Signature's other investors who have supported the company in its growth include GE Capital, Australia's Macquarie Bank Macquarie Bank Limited is an Australian merchant bank and financial services group, providing a broad range of products and services to investors, corporations and government. Its global headquarters is in Sydney, and it is listed on the Australian Stock Exchange (ASX). and Toronto Dominion dominion, power to rule, or that which is subject to rule. Before 1949 the term was used officially to describe the self-governing countries of the Commonwealth of Nations—e.g., Canada, Australia, or India. Australia Limited. Clairvest projects substantial growth in value for its investment in Signature as the company, now a market leader with strong infrastructure and management, benefits from the increase in penetration of security alarms in both Australia and New Zealand. Voxcom continues strong growth Voxcom Incorporated ("Voxcom"), which is traded on the Vancouver Stock Exchange Vancouver Stock Exchange (VSE) A securities and options exchange in Vancouver, British Columbia, (Canada), specializing in venture capital companies. Vancouver Stock Exchange See Canadian Venture Exchange (CDNX). , sells and provides monitoring services The general surveillance of known air traffic movements by reference to a radar scope presentation or other means, for the purpose of passing advisory information concerning conflicting traffic or providing navigational assistance. for security alarm systems and Lifecall medical alert systems throughout Canada. The Edmonton Edmonton (ĕd`məntən), city (1991 pop. 616,741), provincial capital, central Alta., Canada, on the North Saskatchewan River. The center of the largest metropolitan area in Alberta, Edmonton, known as the "Gateway to the North," is located based company has increased its subscriber subscriber, n the person, usually the employee, who represents the family unit in relation to the prepayment plan. Other family members are dependents. Also called certificate holders or enrollees. base from 22,600 to 37,500 subscribers in the last year and has doubled its recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. monthly monitoring revenues to $860,000 over the same period. Subscriber growth has been lead by acquisitions, but internal sales have been strong due to the strength of Voxcom's affinity The relationship that a person has to the blood relatives of a spouse by virtue of the marriage. The doctrine of affinity developed from a Maxim of Canon Law that a Husband and Wife were made one by their marriage. There are three types of affinity. based marketing programs and its dealer network. Clairvest's investment in Voxcom is by way of convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. and common shares. If the debentures were converted today, Clairvest would own approximately 9 million Voxcom shares or 31 percent of the company with a market value of $17.8 million. The cost of Clairvest's investment in Voxcom at March 31, 1998 was $6.7 million. Sparkling Springs continues its acquisition strategy Sparkling Spring Water Group Limited ("Sparkling Springs") is the leading bottled water provider to residential and commercial customers in each of its markets - England England, the largest and most populous portion of the United Kingdom of Great Britain and Northern Ireland (1991 pop. 46,382,050), 50,334 sq mi (130,365 sq km). It is bounded by Wales and the Irish Sea on the west and Scotland on the north. ; Scotland Scotland, political division of Great Britain (1991 pop. 4,957,000), 30,414 sq mi (78,772 sq km), comprising the northern portion of the island of Great Britain and many surrounding islands. ; the U.S. states A U.S. state is any one of the fifty subnational entities of the United States, although four states use the official title "commonwealth". The separate state governments and the federal government share sovereignty, in that an American is a citizen both of the federal entity and of Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. and Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. ; the Canadian Maritimes; and, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography . The company remains committed to building value through consolidation, having consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. eleven acquisitions since Clairvest's initial investment. In November November: see month. 1997 the company raised US$100 million from a Senior Subordinated Debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". issue. The proceeds were used to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. debt and fund acquisitions. Today, Sparkling Springs' cash, together with available bank financing, provides the company with more than US$45 million for future acquisitions. Sparkling Springs recently completed the acquisition of a small company in the UK and is currently evaluating additional fold-in acquisitions in its existing markets. As a result of acquisitions and internal growth, Sparkling Springs' revenue and EBITDA for the quarter ended March 31, 1998 increased 99 percent and 93 percent, respectively, over the prior year. Net income was reduced due to the increased interest costs related to the debt issue. Income will improve as funds are invested in new acquisitions. Sparkling Springs will seek to aggressively build value through acquisitions and internal sales growth. Outlook During fiscal 1998, Clairvest saw its portfolio of investments appreciate in value. Higher share prices for all of Clairvest's publicly traded investment partners and the ability of a number of the private companies to complete debt and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. equity financings Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. are indications of this appreciation. Fiscal 1999 should see continued appreciation. Clairvest's investment partners are positioned for growth and the Company has $40 million in available capital to support these current investments and make new investments. Clairvest is currently researching several industries and anticipates making at least one new investment within the next year. In addition, Clairvest will consider opportunities to realize on the value of existing investments where appropriate. Clairvest announced an annual dividend of $0.10 per common share to shareholders of record as of July 15, 1998. Payment date for such dividends will be July 21, 1998. Clairvest Group Inc. is a merchant bank backed by leading Canadian entrepreneurs, that invests and assists in the development of carefully selected, high potential companies. It contributes financing and strategic support to accelerate the growth and development of its entrepreneur entrepreneur (än'trəprənûr`) [Fr.,=one who undertakes], person who assumes the organization, management, and risks of a business enterprise. partners in order to create long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. value for shareholders. -0-
Summary of Clairvest's Core Investments at March 31, 1998
----------------------------------------------------------------
Core Trading Percent Book Value
Investment Symbol Ownership of
and and Investments
Exchange Accounting ($ millions) Description of
Policy Business
----------------------------------------------------------------
NRI Industries The North
Inc. Private 85 percent - $18.3 American
Consolidation leader in
converting
tire-derived
waste rubber
into
value-added
manufactured
products.
----------------------------------------------------------------
Consoltex CTX - 36 percent - $26.9 A
Group Inc.(1) Toronto Equity fully-
and integrated
Montreal North American
manufacturer
of woven
textile
fabrics for
the apparel,
home
furnishing,
and industrial
markets.
----------------------------------------------------------------
Datamark DMK - 45 percent - $7.8 Provides a
Inc. (2) Montreal Equity full range of
products and
services including
forms, labels,
short and
medium-run
commercial printing
and document
management.
----------------------------------------------------------------
Signature Private 47 percent - $16.2 The second
Security Equity largest
Group Holdings electronic
Pty. Limited (3) security
company serving
Australia and New
Zealand. Installs,
services, and
monitors security
alarm systems for
residential and
commercial
customers.
----------------------------------------------------------------
Sparkling Private 31 percent - $2.4 The largest
Spring Water Equity purified water
Group Limited (4) company
serving
customers in
British
Columbia,
Atlantic
Canada; the
U.S. states of
Oregon and
Washington;
and the United
Kingdom.
----------------------------------------------------------------
Voxcom VOX - 31 percent - $6.7 Sells and
Incorporated(5) Vancouver Cost/Accrued provides
Value monitoring
services for
electronic
security
alarm systems
throughout
Canada.
----------------------------------------------------------------
1. At March 31, 1998, Clairvest owned 6,199,300 subordinate voting shares of Consoltex, representing 36 percent of the outstanding shares. Subsequent to March 31, 1998, Clairvest purchased an additional 1,175,600 subordinate voting shares of Consoltex for $6.8 million, increasing its ownership percentage in Consoltex to 43 percent. Book value includes a loan to Les Gantiers Holding B.V., the controlling shareholder of Consoltex (accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. value $11.5 million). 2. Clairvest owns 4,186,270 common shares of Datamark. Book value is net of $6.4 million in proceeds from a special dividend paid by Datamark in March 1998. In July 1998, Datamark acquired Systems Business Forms Limited for cash and the issuance of Datamark shares. As a result, Clairvest's ownership percentage decreased to 36 percent. 3. Clairvest began equity accounting for Signature March 1, 1998. Subsequent to March 31, 1998, Signature raised an additional $3.0 million in equity from two existing shareholders and Clairvest's ownership position was reduced to 44 percent. 4. Book value is net of $6.5 million in capital repaid to Clairvest. 5. Clairvest has invested $5.0 million in Voxcom by way of convertible debentures and $1.3 million in common shares (representing 1,150,000 common shares). If both debentures were converted Clairvest would own 31 percent of the issued and outstanding common shares of Voxcom subsequent to conversion. -0-
Clairvest Group Inc.
Consolidated Balance Sheets
As at March 31, 1998 and 1997
(Thousands of dollars)
-------------------------------------------------------------
March 31, March 31,
1998 1997
-------------------------------------------------------------
(Audited) (Audited)
ASSETS
CURRENT
Cash and short-term investments $23,063 $13,304
Accounts receivable 14,529 14,828
Inventories 5,804 5,649
Other assets 5,640 6,101
------------------------
49,036 39,882
------------------------
LONG-TERM
Corporate investments
Consoltex Group Inc. 26,950 20,179
Datamark Inc. 7,845 9,755
Signature Security Group
Holdings Pty. Limited 20,099 -
Sparkling Spring Water
Group Limited 2,423 8,711
Voxcom Incorporated 6,674 2,044
Western Co-Axial Limited - 16,958
Other 1,265 9,444
------------------------
65,256 67,091
Capital assets 41,772 49,806
Other long-term assets 1,369 15,759
------------------------
108,397 132,656
------------------------
$157,433 $172,538
-------------------------------------------------------------
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT
Bank indebtedness $13,856 $14,060
Accounts payable 8,832 8,527
Current portion of long-term debt 967 4,843
------------------------
23,655 27,430
LONG-TERM
Long-term debt 22,088 31,289
Other long-term liabilities 144 867
------------------------
45,887 59,586
------------------------
MINORITY INTEREST 5,044 7,010
------------------------
SHAREHOLDERS' EQUITY
Share capital 94,469 94,469
Retained earnings 12,033 11,473
------------------------
106,502 105,942
------------------------
$157,433 $172,538
-------------------------------------------------------------
The consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge included the accounts of Clairvest Group Inc., its 84.6 percent owned subsidiary NRI Industries Inc. and for the period from March 31, 1997 to February February: see month. 28, 1998 the accounts of Signature Security Group Holdings Pty. Limited. While consolidation of these subsidiaries is appropriate for financial statement presentation purposes, Clairvest has not guaranteed the payment of any obligations or liabilities of NRI, Signature or any of their subsidiaries as might be implied by their consolidation. Clairvest Group Inc. Consolidated Statements of Income and Retained Earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. For the years ended March 31, 1998 and 1997 (Thousands of dollars, except per share information) -0-
Quarter ended March 31, Year ended March 31,
1998 1997 1998 1997
(Unaudited) (Unaudited) (Audited) (Audited)
Sales $25,097 $17,027 $95,305 $63,935
Cost of
sales 17,899 12,358 67,071 48,063
--------------------- -----------------------
7,198 4,669 28,234 15,872
Other revenue
Interest and
other income 635 747 2,848 3,495
Fees 113 118 609 225
Equity accounted
income 1,360 16 3,590 16
Dividend
income - - 1,156 -
Gain (loss)
on sale of
investments (500) - 4,727 4,252
-------------------- -----------------------
8,806 5,550 41,164 23,860
-------------------- -----------------------
Expenses
Operating 5,615 3,233 23,043 12,535
Amortiz-
ation 3,349 1,855 11,575 6,869
Interest 837 686 4,206 2,389
-------------------- -----------------------
9,801 5,774 38,824 21,793
-------------------- -----------------------
Operating income
before the
undernoted (995) (224) 2,340 2,067
Restructuring
provision -
NRI Industries
Inc. - - - (2,700)
-------------------- -----------------------
(995) (224) 2,340 (633)
Provision for
income taxes
(recovery) 483 267 1,052 (617)
-------------------- -----------------------
Net income
before minority
interest (1,478) (491) 1,288 (16)
Minority
interest (426) (18) (1,126) (598)
--------------------- ----------------------
Net income ($1,052) ($473) $2,414 $582
--------------------- ----------------------
Net income
per share ($0.06) ($0.03) $0.13 $0.03
--------------------- ----------------------
Fully diluted
net income
per share ($0.05) ($0.03) $0.13 $0.03
--------------------- ----------------------
Weighted
average number
of shares
outstanding
18,541,590 18,541,590 18,541,590 18,541,590
------------------------ -------------------------
Retained earnings,
beginning
of period $13,085 $11,946 $11,473 $12,745
Net income (1,052) (473) 2,414 582
------------------------ -------------------------
12,033 11,473 13,887 13,327
Dividends - - 1,854 1,854
------------------------ -------------------------
Retained
earnings, end
of period $12,033 $11,473 $12,033 $11,473
------------------------ -------------------------
Clairvest Group Inc.
Consolidated Statements of Changes in Financial Position For the
years ended March 31, 1998 and 1997 (Thousands of dollars)
---------------------------------------------------------------
Quarter ended March 31, Year ended March 31,
1998 1997 1998 1997
---------------------------------------------------------------
(Unaudited) (Unaudited) (Audited) (Audited)
Funds provided
from (used for):
Operations
Net income $ (1,052) $ (473) $ 2,414 $ 582
Items not
affecting funds:
Minority interest (426) (18) (1,126) (598)
Amortization 3,349 1,855 11,575 6,869
Deferred income
taxes 324 (17) 761 (1,001)
Gain on sale of
corporate
investments 500 - (4,727) (4,252)
Equity accounted
income (1,360) (16) (3,590) (16)
----------------------- ---------------------
1,335 1,331 5,307 1,584
Changes in working
capital 2,259 (3,118) 910 (3,689)
----------------------- ---------------------
3,594 (1,787) 6,217 (2,105)
----------------------- ---------------------
Financing
Change in
long-term debt (7,233) 12,512 (689) 12,256
Change in other
long-term
liabilities (3,571) 867 (867) 867
Deferred charges 541 (587) (357) (717)
Dividends paid - - (1,854) (1,854)
----------------------- ---------------------
(10,263) 12,792 (3,767) 10,552
----------------------- ---------------------
Investing
Proceeds from
sale of corporate
investments 3,500 - 29,989 6,160
Acquisition of
corporate
investments (6,008) (31,275) (23,818) (47,323)
Return of capital
from existing
investments 6,414 - 14,640 -
Net change in
corporate
investments (7,220) (497) (2,866) (1,137)
Change in
minority
interest (7,942) 1,484 (30) 1,357
Fixed assets (3,869) (7,619) (10,918) (11,804)
Goodwill 17,471 (13,203) - (13,203)
Other long-term
assets 4,684 - - 1,426
----------------------- ---------------------
7,030 (51,110) 6,997 (64,524)
----------------------- ---------------------
Funds provided (used)
during the period 361 (40,105) 9,447 (56,077)
Deconsolidation of bank
indebtedness of Signature
Security Group Holdings
Pty. Limited 516 - 516 -
Cash and short-term
investments, net of bank
indebtedness,
beginning
of period 8,330 39,349 (756) 55,321
--------------------- ---------------------
Cash and short-term
investments, net
of bank
indebtedness, end
of period $ 9,207 $ (756) $ 9,207 $ (756)
---------------------------------------------------------------
CONTACT: Clairvest Group Inc.
Jeff Parr, 416/925-9270 x348
or
Clairvest Group Inc.
Rob Crocker, 416/925-9270 x246
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion