CLAIRVEST REPORTS FISCAL 2008 FOURTH QUARTER AND YEAR-END RESULTS
Toronto, Ontario (June 24, 2008) – Clairvest Group Inc. (TSX:CVG) today reported results for the year ended March 31, 2008 and the fourth quarter. (All figures are in Canadian dollars unless otherwise stated).
Clairvest’s book value increased 15.9% during the year to $270.8 million compared to $233.6 million at March 31, 2007. Book value per share increased by 15.6% during the year to $16.98 per share, compared with $14.69 per share at March 31, 2007 and $16.66 at the end of the third quarter.
As previously announced, Clairvest and Clairvest Equity Partners III Limited Partnership (“CEP III”) invested a combined $41.6 million for a combined 50% interest in Casino Marina del Sol (“Casino del Sol”), a new gaming entertainment complex that is being constructed adjacent to the city of Concepción, the second largest city in Chile.
Also as previously announced, Clairvest and CEP III invested a combined $23.6 million for a combined 46% interest in Light Tower Rentals, Inc. (“Light Tower”) of Odessa, Texas. Light Tower is a fast growing oilfield equipment rental company, operating in Texas, New Mexico and Colorado.
Also as previously announced, Clairvest and CEP III invested a combined $20.2 million for a combined 42% interest in Lyophilization Services of New England Inc. (“LSNE”) of Manchester, New Hampshire. LSNE is a contract manufacturing organization focused on providing lyophilization (freeze-drying) services to biotech, pharmaceutical and medical device manufacturers. Subsequent to quarter end, Clairvest and CEP III invested a further combined $5.6 million in LSNE, increasing the combined interest to 49%.
The investments in Casino del Sol, Light Tower and LSNE were made by Clairvest and CEP III pro-rata to the capital commitments to the investment pool, of 25% from Clairvest and 75% from CEP III respectively.
Also during the quarter, Clairvest provided a US$5.0 million loan to Latin Gaming Osorno S.A. (“Latin Gaming”), a gaming entertainment complex that is being constructed in Osorno, Chile. The loan was provided as bridging capital as Clairvest is awaiting regulatory approval to invest in Latin Gaming. Subsequent to year end, Clairvest advanced an additional US$3.0 million to Latin Gaming.
Also as previously announced, Clairvest made a full provision for its investment in Integral Orthopedics Inc. The amount of the provision was $6.3 million.
Subsequent to year end, Shepell•fgi sold substantially all of its assets to an unrelated third party. Clairvest and CEP received combined cash proceeds of $104.5 million at closing, and promissory notes secured by the acquirer for an additional $61.1 million, payable through to July 2010. The payment of the promissory notes is subject to satisfaction of certain items in the purchase documentation, and up to $32.7 million of the promissory notes may be received in the form of the acquirer’s equity at the option of the acquirer. Clairvest’s share of the sale proceeds is $26.1 million at closing, and promissory notes for an additional $15.3 million on a $6.6 million investment.
Subsequent to year end, the province of New Brunswick selected Sonco Gaming New Brunswick Ltd. (“Sonco”) as the preferred proponent to construct, own, equip and operate a destination casino in that province. The proponent’s limited partners include Clairvest, Sonco, Navegante Group Inc. and 2050631 Ontario Inc. The selection as the preferred proponent is conditional on Sonco and the Lotteries Commission of New Brunswick negotiating an acceptable Casino Service Provider Agreement.
“Our final quarter in fiscal 2008 featured a series of investments in high-potential companies in the U.S. and Chile that met our demanding standards,” said Ken Rotman, Co-CEO of Clairvest. “In addition to pursuing an active investment agenda during that period, we also realized an excellent return through the sale of our interest in Shepell•fgi shortly after the end of the fourth quarter. We look forward to achieving further success in fiscal 2009 by identifying additional investee companies that meet our criteria and assisting their managements to accelerate growth.”
Subsequent to year end, Clairvest paid a one-time special dividend of $10 million, or $0.6272 per share. The dividend was paid on June 20, 2008 to common shareholders of record as of May 20, 2008. Clairvest also declared an annual dividend of $0.10 per share, which will be payable July 28, 2008 to common shareholders of record as of July 11, 2008. Both dividends are ineligible dividends for Canadian income tax purposes.
About Clairvest
Clairvest Group Inc. is a Canadian merchant bank that invests its own capital, and that of third parties through Clairvest Equity Partners Limited Partnership and Clairvest Equity Partners III Limited Partnership, 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.
Contact Information
Lana Reiken
Chief Financial Officer and Corporate Secretary
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753
Forward-looking Statements
This news release contains forward-looking statements with respect to Clairvest Group Inc., its subsidiaries 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 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. 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.
www.clairvest.com