Clarke Inc. · TSX:CKI
Clarke — Investor Presentation (2021)
13 slides from Clarke's investor presentation, 2021
Slide 1: 2021 Investor Presentation
|CLARHE 2021 Investor Presentation
Slide 2: Forward Looking Statements
Forward Looking Statements This document may contain or refer to certain forward-looking statements relating, but not limited to, Clarke's expectations, intentions, plans and beliefs with respect to Clarke. Often, but not always, forward-looking statements can be identified by the use of words such
Slide 3: Overview
Overview • Publicly-traded investment company • $123mn market cap • $232mn enterprise value • Objective is to compound NAV per share over long-term • Book value per share CAGR of 9.3% since Chairman took control in 2002 • Currently trading at 0.62x Price to Book Value • Aligned management and board
Slide 4: Our Approach to Investing
Our Approach to Investing • Freedom to invest across industries and asset classes • Long-term investors • Indefinite holding period – no pre-determined policies on selling • Allows us to compound value tax-efficiently • Willing to hold investments through cyclical downturns • Focus on intrinsic valu
Slide 5: Case Study – TerraVest Industries
Case Study – TerraVest Industries TerraVest is a consolidator of manufacturing businesses in the oilfield equipment and fuel containment industries $18.00 2009 – 2011 2012 – 2015 2016 – 2020 10% ownership $16.92 Clarke stake disclosed, • Sale of 4 operating • Dividend restarted $15.00 announces Geor
Slide 6: Our Approach to Capital Allocation
Our Approach to Capital Allocation • We can allocate capital to: • Debt repayment • Dividends • Share Repurchases • New or Existing Investments • We benchmark each investment against alternative opportunities/uses • Will repurchase shares when implied return is superior to external investing • We be
Slide 7: Share Repurchases
Share Repurchases $45 ($ Millions) $40.0 $40 $35 $30 $25.0 $25 $22.8 $20 $15.5 $15 $12.5 $11.3 $10 $7.2 $6.6 $5 $2.7 $3.2 $1.6 $0.8 $- 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Jun-21 Average Purchase Price Per Share: $3.77 $5.03 $4.21 $5.21 $10.05 $10.34 $9.25 $11.23 $10.78 $12.89 $7.4
Slide 8: Shares Outstanding Since 2002
Shares Outstanding Since 2002 • Clarke has reduced its shares outstanding by 45% since 2002 • Clarke has repurchased the equivalent of 98% of its 2002 share count at a cumulative cost of $195mn 30 (Millions) 27.7 Debentures Converted 25 Holloway Lodging 20 Acquisition 14.7 15 10 2002 2003 2004 2005
Slide 9: Clarke Has Created Value For Nearly Two Decades
Clarke Has Created Value For Nearly Two Decades • Book Value per Share Compound Annual Growth Rate of 9.3% • BVPS + Cumulative Dividend Growth Rate: 12.3% 2021 Investor Presentation 9
Slide 10: Clarke Has Consistently Delivered Attractive Returns
Clarke Has Consistently Delivered Attractive Returns $100 invested on Jan. 1, 2002 would have grown to: Clarke: $1,256 TSX: $444 S&P 500: $430 Compound Annual Growth Rate: Clarke: 13.4% TSX: 7.8% S&P 500: 7.6% Value at the end of each period. Returns assume reinvested dividends. 2021 Investor Presen
Slide 11: Our Investments
Our Investments Ownership Publicly Traded Marketable Securities Diversified Portfolio <10% Privately Owned Holloway Hotels Hospitality 2,000+ Rooms 100% Ferry Operations Passenger Ferry 596 Trips in 2020 100% Real Estate 1111 Atwater Luxury condos & rentals 38-storeys 33% Investment Properties Resid
Slide 12: Adding Up the Pieces
Adding Up the Pieces Investment Method Total Value Per Clarke Share Publicly Traded Marketable Securities Market Value $29mn $1.96 Privately Owned Holloway Hotels Book Value $131mn $8.96 Ferry Operations Book Value nil nil Real Estate 1111 Atwater Book Value $21mn $1.43 Investment Properties Book Va
Slide 13: Clarke Going Forward
Clarke Going Forward Maximize the Value of our Current Investments • Work with portfolio companies on capital allocation and value-add initiatives • Redevelop select Holloway properties • Lease up and stabilize Houston office portfolio Identify New Investment Opportunities • Tuck-in opportunities fo