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TORONTO, ONTARIO -- (Marketwire) -- 02/11/13 -- Clairvest Group Inc. (TSX: CVG) today reported results for the third quarter ended December 31, 2012. (All figures are in Canadian dollars unless otherwise stated)
Highlights
-- December 31, 2012 book value was $339.0 million or $22.41 per share versus $21.86 per share at September 30, 2012. Non-restricted cash or near cash represented 35.5% of the December 31, 2012 book value, or $7.95 per share-- Net income for the quarter and for the nine months was $8.4 million or $0.55 per share and $25.7 million or $1.70 per share respectively-- Rivers Casino, a gaming entertainment complex located in Des Plaines, Illinois, completed a financing and paid a distribution to its owners. Clairvest, CEP IV and CEP IV-A received a combined US$39.3 million from this distribution against their US$37.4 million original investment-- Subsequent to quarter end, Clairvest and CEP III realized a combined $81 million through the sale of PEER 1, a global online IT infrastructure provider-- Subsequent to quarter end, Clairvest, CEP IV and CEP IV-A invested a combined $39.5 million in CRS, an equipment rental company based in Ontario, Canada-- Subsequent to quarter end, Centaur Gaming, which owns and operates the Hoosier Park Racing & Casino in Indianapolis, Indiana, received all necessary regulatory approvals to proceed with its acquisition of Indiana Grand Casino and Indiana Downs racetrack-- Subject to the approval of the Toronto Stock Exchange, Clairvest's Board of Directors approved a new normal course issuer bid
Clairvest's book value was $339.0 million or $22.41 per share at December 31, 2012, compared with $21.86 per share at September 30, 2012. The increase in book value per share was attributable to net income for the quarter of $8.4 million, or $0.55 per share. During the quarter, Clairvest recorded $6.4 million in pre-tax net unrealized gains and $4.7 million in pre-tax distributions, interest, dividends and fees from its corporate investment portfolio.
During the quarter, Rivers Casino completed a financing and paid a distribution to its owners. Clairvest, Clairvest Equity Partners IV Limited Partnership ("CEP IV") and Clairvest Equity Partners IV-A Limited Partnership CEP IV-A ("CEP IV-A") received US$10.5 million, US$24.8 million and US$4.0 million respectively from this distribution. Rivers Casino commenced operations in July 2011, and to December 31, 2012 it has made pre-tax distributions totaling 1.5 times invested capital to its owners.
As previously announced, during the quarter ended December 31, 2012, Clairvest entered into an agreement to tender all of the common shares of PEER 1 Network Enterprises Inc. ("PEER 1") held by Clairvest and Clairvest Equity Partners III Limited Partnership ("CEP III") to a takeover bid made by Cogeco Cable Inc. at a price of $3.85 in cash per share. Subsequent to quarter end the takeover bid was completed. On the initial combined investment of $25.2 million, Clairvest and CEP III generated a pre-tax return of 3.2 times invested capital, or a 40% IRR, over the life of this investment. Consistent with its ownership percentage, on closing Clairvest realized $19.9 million on a $6.3 million investment for a $13.6 million gain, $13.5 million of which had been recognized in income to December 31, 2012.
