HALIFAX,
NS, Aug. 11, 2023 /CNW/ - Clarke Inc.
("Clarke" or the "Company") (TSX: CKI) today announced its results
for the three and six months ended June 30,
2023.
Second Quarter Results
Results for the three and six months ended June 30, 2023 were consistent with the same
periods in 2022. The Company's net loss was $0.5 million and $2.2
million, for the three and six months ended June 30, 2023, respectively, compared to
$0.5 million and $2.0 million for the same periods in 2022.
Hotel operations produced strong second quarter results and
achieved net operating income1 of $5.6 million for the quarter and $10.0 million year to date, compared to
$4.8 million and $8.0 million in 2022. Hotel revenue was
$15.7 million for the quarter and
$30.7 million year to date, compared
to $12.6 million and $22.2 million in 2022. In addition to the
continued COVID-19 pandemic recovery, this increase is primarily
due to two factors. During the second quarter of 2022, the
Sternwheeler Hotel and Conference Center in Whitehorse, YT was still undergoing
renovations and was not operating at full capacity. The Company
also acquired the Stanford Inn & Suites in Grande Prairie, AB in June 2022, increasing the Company's total hotel
room count by approximately 10%.
During the second quarter of 2023, the Company's book value per
common share1 decreased by $0.04, or 0.3%. The change can be attributed
primarily to (i) hotel net operating income of $5.6 million or $0.40 per share offset by (ii) deprecation and
amortization of $2.6 million or
$0.18 per share, and (iii) interest
and accretion of $1.9 million or
$0.14 per share.
The Company's book value per common share at the end of the
quarter was $15.31 while our common
share price was $12.93.
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, 2023.
Other Information
Highlights of the interim condensed consolidated financial
statements for the three and six months ended June 30, 2023 compared to the three and six
months ended June 30, 2022 are as
follows:
|
|
|
|
|
|
(in millions, except
per share amounts)
|
Three
months
ended
June 30,
2023
$
|
Three months
ended
June 30,
2022
$
|
Six
months
ended
June 30,
2023
$
|
Six
months
ended
June 30,
2022
$
|
|
Hotel
revenue
|
15.7
|
12.6
|
30.7
|
22.2
|
|
Provision of
services
|
2.4
|
2.0
|
2.7
|
2.3
|
|
Investment and other
income (loss)*
|
(0.3)
|
0.4
|
(0.1)
|
0.8
|
|
Net loss
|
(0.5)
|
(0.5)
|
(2.2)
|
(2.0)
|
|
Comprehensive income
(loss)
|
(0.8)
|
(20.5)
|
0.2
|
(14.8)
|
|
Basic and diluted loss
per share ("EPS")
|
(0.03)
|
(0.04)
|
(0.16)
|
(0.14)
|
|
Total assets
|
444.5
|
379.7
|
444.5
|
379.7
|
|
Total
liabilities
|
230.4
|
187.9
|
230.4
|
187.9
|
|
Long-term financial
liabilities
|
54.4
|
125.7
|
54.4
|
125.7
|
|
Book value per
share
|
15.31
|
13.49
|
15.31
|
13.49
|
|
* Investment and other income (loss)
includes unrealized and realized gains and losses on assets and
liabilities, interest income and pension
expense/recovery.
|
|
___________________________
|
|
1 Book value
per share and hotel net operating income are non-IFRS measures
and ratios. Refer to the "Cautionary Statement Regarding Use of
Non-IFRS Accounting Measures and Ratios" section of this press
release and our June 30, 2023 MD&A for more
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, 2023, is available
at www.sedar.com and www.clarkeinc.com.
About Clarke
Halifax-based Clarke is an
investment and real estate company with holdings in a diversified
group of businesses and across real estate sectors. Clarke's common
shares trade on the Toronto Stock Exchange (CKI); for more
information about Clarke Inc., please visit our website at
www.clarkeinc.com.
Cautionary Statement Regarding Use of Non-IFRS Accounting
Measures and Ratios
This press release makes reference to "book value per share" and
"net operating income" (or "hotel net operating income").
Book value per share and net operating income are not financial
measures or ratios calculated and presented in accordance with
International Financial Reporting Standards ("IFRS") and should not
be considered in isolation or as a substitute to any financial
measures or ratios of performance calculated and presented in
accordance with IFRS. These non-IFRS financial measures and ratios
are presented in this press release because management of Clarke
believes that such measures and ratios enhance the user's
understanding of our historical and current financial
performance.
Book value per share is measured by dividing shareholders'
equity of the Company at the date of the statement of financial
position by the number of common shares outstanding at that
date. Net operating income is defined as revenue less
expenses. Net operating income measures operating results before
interest, depreciation, and amortization. Clarke's method of
determining these amounts may differ from other companies' methods
and, accordingly, these amounts may not be comparable to measures
used by other companies.
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, real estate 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.
