CKI Clarke Inc

HALIFAX, May 15, 2012 /CNW/ - Clarke Inc. ("Clarke" or the "Company") (TSX:  CKI CKI.DB.A) today announced its results for the three months ended March 31, 2012.

Net income attributable to equity holders of the Company for the three months ended March 31, 2012 was $4.1 million or $0.24 per share compared with a net loss of $0.9 million or $0.05 loss per share in the corresponding period in 2011.

Basic earnings per share ("EPS") from continuing operations for the three months ended March 31, 2012 was $0.24, compared to basic loss per share of $0.08 for the three months ended March 31, 2011, an increase of $0.32 per share. Book value per share at March 31, 2012 was $5.55, an increase of $0.18 or 3.35% from a book value per share of $5.37 on March 31, 2011.

RESULTS OF OPERATIONS

Highlights of the interim condensed consolidated financial statements for the three months ended March 31, 2012 compared to the three months ended March 31, 2011 are as follows:

THREE MONTHS ENDED MARCH 31, 2012

Net income attributable to equity holders of the Company for the three months ended March 31, 2012 was $4.1 million compared with a net loss of $0.9 million in the corresponding period in 2011. During the three months ended March 31, 2012, the Company had net realized and unrealized gains on its publicly traded securities of $5.0 million compared to net realized and unrealized losses of $1.0 million for the corresponding period in 2011. The Company's investment portfolio decreased by $10.4 million in value during the quarter due to net proceeds on the sale of marketable securities of $15.4 million offset by the net realized and unrealized gains on its publicly traded securities noted above.

The Company's Freight Transportation segment continues to benefit from increased efficiencies and greater revenue focus in 2012. Revenue and other income for the three months ended March 31, 2012 was $42.4 million compared to $38.8 million for the corresponding period in 2011. The segment delivered EBITDA of $1.3 million for the three months ended March 31, 2012, consistent with that achieved in the same period a year ago.

Clarke's Commercial Tanks & Home Heating segment (formerly the Home Heating segment) had revenue and other income for the three months ended March 31, 2012 that was $4.0 million higher when compared to the same period in 2011, mainly due to incremental sales associated with businesses acquired in 2011. Increased revenue and other income has resulted in EBITDA for the three months ended March 31, 2012 of $1.7 million, compared to $0.4 million in the same period in 2011.

During the quarter, the Company invested $9.0 million in Highkelly Drilling Ltd. ("Highkelly"). The Company now owns 38% of the outstanding common shares of Highkelly. Highkelly is a newly formed contract drilling company based in Calgary, Alberta that has entered into a strategic partnership with a Calgary based oilfield equipment manufacturer with facilities in China and has secured three year drilling contracts with a senior natural gas producer for the use of two drilling rigs.

On March 30, 2012, the Company announced that it would complete the redemption of its remaining 6% convertible unsecured subordinated debentures maturing December 31, 2012 (the "Debentures") for an aggregate principal amount of $18.3 million. On May 3, 2012, the Company redeemed these Debentures.

Further information about Clarke, including Clarke's Interim Condensed Consolidated Financial Statements and Management's Discussion & Analysis for the three months ended March 31, 2012, is available at www.sedar.com and www.clarkeinc.com.

About Clarke

Halifax-based Clarke invests in a variety of private and publicly-traded businesses and participates actively where necessary to enhance performance and increase return. Clarke's securities trade on the Toronto Stock Exchange (CKI; CKI.DB.A); for more information about Clarke Inc., please visit our website at www.clarkeinc.com.

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", "budget", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or equivalents or variations, including negative 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 price of  securities held by the Company, changes in these securities holdings, changes to the Company's hedging practices, currency fluctuations, requirements for additional capital, changes to government regulations and the timing and possible outcome of pending litigation. 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.

With respect to the Company's Investment segment, such risks and uncertainties include, without limitation, the Company's investment strategy, legal and regulatory risks, general market risk, potential lack of diversification in the Company's investments, reliance on certain key executives, interest rates and foreign currency fluctuations and other factors.  With respect to the Company's Freight Transportation segment, such risks and uncertainties include, without limitation, competition, expiry of certain leases, labour relations, the use of third party service providers, dependence on certain personnel, fuel costs, weather conditions, customer relationships, claims, litigation and insurance, government regulation of the transport industry and other factors.  With respect to the Company's Commercial Tanks & Home Heating segment, such risks and uncertainties include, without limitation, the costs of housing and major consumer products, energy costs, alternative energy sources, steel costs, product liability claims, foreign exchange risk, and other factors.  Other general risks and uncertainties include, without limitation, environmental considerations, use of information technology and information systems, safety issues, concentration of sales among a small number of customers, the seasonality of business cycles for certain segments, commodity market risk, risks associated with investment in derivative instruments 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.