Business
Clarke Inc. Reports 2010 First Quarter Results
Clarke Inc. Reports 2010 First Quarter Results
About this update from Clarke Inc.
[{"type":"text","content":"\n\n\n\n May 14, 2010 (Canada NewsWire Group) -- TSX: CKI, CKI.DB; CKI.DB.A\n\n May 14, 2010 - Clarke Inc. ("Clarke" or the "Company") today announced its results for the three months ended March 31, 2010.\nClarke had net income for the three months ended March 31, 2010 of $3.0 million compared to a net loss of $10.1 million for the three months ended March 31, 2009.\nThe first quarter of 2009 offered a slight improvement in the operating environment facing our Freight Transportation segment, and efficiencies established throughout 2009 have begun to generate improved performance in a sector that continues to be highly competitive. We continued to build on the momentum generated in 2009 in the Steel Tanks segment, improving on the levels of profitability from the first quarter of 2009. Clarke has continued to work closely with management in place at its core businesses, achieving cost savings and executing strategic transactions that are expected to improve the future prospects of these businesses. While public equity markets continued to recover in 2010, certain of our marketable securities were impacted by significant negative events that sharply reduced the carrying value of our investment. However, these were not comparable to the other-than-temporary-impairments of $12.9 million on available for sale and significantly influenced investments in the same quarter of 2009.\n\nRESULTS OF OPERATIONS\n\nHighlights of the interim consolidated financial statements for the three months ended March 31, 2010 compared to the three months ended March 31, 2009 are as follows:\n\n\n >\n\n\n\nQUARTER ENDED MARCH 31, 2010\n\nRevenue and other income in the Investment segment has decreased in the current year, with income of $7.4 million compared to $12.5 million for the same period in 2009, a difference of $5.1 million. This difference is largely attributable to a decrease in the income portion of trust distributions in the amount of $2.1 million compared to the same period in 2009. Several portfolio companies have reduced or eliminated their distributions and certain holdings were divested throughout 2009. This decrease was also attributable to smaller intercompany dividends declared in the current year. These intercompany dividends are eliminated upon consolidation. This decrease was partially offset by the increase in ...