Home » Clarke Inc. Reports 2013 Q1 Results, 33% Increase in Quarterly Dividend

Clarke Inc. Reports 2013 Q1 Results, 33% Increase in Quarterly Dividend

fleetnewsdaily | May 16, 2013

Clarke Inc. (“Clarke” or the “Company”) (TSX: CKI; CKI.DB.A) has reported its results for the three months ended March 31, 2013. Net income attributable to equity holders of the Company for the three months ended March 31, 2013 was $3.1 million, compared with net income of $3.7 million for the same period in 2012.

During the three months ended March 31, 2013, the Company had realized gains on its publicly-traded securities of $3.0 million, compared to realized losses of $2.0 million for the same period in 2012. The Company had unrealized gains on its publicly-traded securities of $0.6 million for the three months ended March 31, 2013, compared to unrealized gains of $7.0 million for the same period in 2012. Realized gains in the first quarter of 2013 were the result of exiting our investments in Vitran Corporation Inc. and Imvescor Restaurant Group Inc.

The Freight Transportation segment had a strong quarter generating EBITDA (before intercompany dividend revenue) of $1.7 million for the three months ended March 31, 2013 compared to $0.9 million for the three months ended March 31, 2012. The significantly improved results in this segment are attributable to higher margin revenue, the turnaround of the refrigeration transportation business, lower operating costs and a decrease in accidents and claims.

The Commercial Tanks & Home Heating segment generated EBITDA of $1.4 million for the three months ended March 31, 2013 compared to $2.0 million for the same period in 2012. This year to date decrease is mainly due to strong earnings achieved at the start of 2012 by the commercial tanks division. Results in this division were not repeated to this extent in early 2013 as fluctuations in revenues are expected. However, the Company believes that results for this division and the segment as a whole in 2013 will meet or exceed that of 2012.

The Company has also reduced its debt levels and its cost of borrowing throughout 2012 and into 2013 which has translated into meaningful reductions of interest expense.

Basic earnings per share from continuing operations for the three months ended March 31, 2013 was $0.19, compared to a basic earnings per share of $0.22 for the three months ended March 31, 2012, a decrease of $0.03 per share. Book value per share at March 31, 2013 was $5.42 compared to $5.37 on March 31, 2012 and reflects the payment of $0.18 per share of dividends in the last twelve months.

Clarke’s Board of Directors also announced an increase in its quarterly dividend to $0.08 per Common Share, from the previous level of $0.06 per Common Share. This dividend is payable on June 14, 2013 to shareholders of record at the end of business on May 31, 2013. The Board of Directors believes that the payment of a dividend is a useful way to return capital to shareholders and that this level of dividend will continue to allow Clarke to pursue its current business plan and invest in attractive growth opportunities.

George Armoyan, President and CEO of Clarke commented: “Clarke is dedicated to providing a dividend that is sustainable and meaningful to shareholders. Today’s increase in our dividend highlights our commitment to providing an attractive yield to shareholders and reflects our confidence in the Company’s underlying businesses.”

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.A); for more information, visit Clarke Inc.