Clarke Inc. Reports 2014 Second Quarter Results and Quarterly Dividend Declaration

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[{"type":"text","content":"\n\n\nHALIFAX, Aug. 7, 2014 /CNW/ - Clarke Inc. (\"Clarke\" or the \"Company\")\n (TSX: CKI) today announced its results for the three and six months\n ended June 30, 2014.\n\n\nFor the three and six months ended June 30, 2014, Clarke generated net\n income attributable to equity holders of $19.9 million or $1.00 per\n share and $92.9 million or $4.87 per share, respectively. This compared\n to net income attributable to equity holders of $7.1 million or $0.43\n per share and $10.3 million or $0.62 per share for the same periods in\n the prior year. This represents the highest net income generated in a six month period\n in the Company's history. \n\n\nThe following were certain key events during the second quarter:\n\n\n\nThe Company's Investment segment had significant increases in the market\n value of its marketable securities resulting in total gains of $16.5\n million for the three months ended June 30, 2014.\n\n\nClarke concluded its proxy contest with Sherritt International\n Corporation (\"Sherritt\"). Clarke commenced a proxy contest against\n Sherritt in early 2014 with the goal of replacing three directors with\n nominees of Clarke and promoting positive change at Sherritt. Although\n we were not successful in obtaining board seats, our investment in\n Sherritt was a financial success. We sold a portion of our shares of\n Sherritt in the second quarter resulting in a realized gain on\n marketable securities of $8.1 million. The remainder of our position in\n Sherritt was sold subsequent to the end of the second quarter. In\n total, Clarke generated a profit of $17.5 million and an IRR of 68% on\n its investment in Sherritt.\n\n\nThe Company redeemed all of its remaining 2018 convertible debentures.\n The Company no longer has any debentures outstanding.\n\n\nThe Company sold a real estate holding in Kitchener, Ontario for net\n proceeds of $2.1 million, resulting in a gain on sale of $1.5 million.\n\n\n\nClarke's book value at the end of the second quarter was $12.19 per\n share. The Company grew book value per share by $3.87 in the first half\n of the year while also returning $0.30 per share to shareholders in the\n form of dividends.  In addition, the Company spent $8.0 million during\n the first half of the year repurchasing shares, all at a discount to\n book value.\n\n\nClarke's Board of Directors also ann...

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