Clarke Inc. Reports 2023 Second Quarter Results

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.

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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.

George Armoyan, President and Chief Executive Officer, at [phone] or Tom Casey, CPA, CA, Chief Financial Officer, at [phone]