Clairvest : Q1 2024 Financial Statements

CLAIRVEST GROUP INC. NOTICE TO READER June 30, 2023 (unaudited)

NOTICE TO READER PURSUANT TO NATIONAL INSTRUMENT 51-102 - CONTINUOUS DISCLOSURE OBLIGATIONS

Under National Instrument 51-102 - Continuous Disclosure Obligations, if an auditor has not performed a review of a reporting issuer's interim financial statements, the financial statements must be accompanied by a notice indicating that they have not been reviewed by an auditor.

The Company's independent auditor has not performed a review of these interim condensed consolidated financial statements in accordance with standards established by the Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

CLAIRVEST GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (unaudited)

$000's		June 30		March 31
	2023		2023
ASSETS	$	121,692
Cash and cash equivalents (notes 4 and 13)	$	217,870
Temporary investments (note 4)		168,247		172,962
Accounts receivable and other assets (note 11(g))		74,522		65,727
Loans receivable (note 11(f))		85,274		24,350
Income taxes recoverable		10,218		1,142
Derivative instruments asset (note 14)		887		-
Carried interest from Clairvest Equity Partners III and IV (note 8)		49,905		49,314
Corporate investments (note 6)		911,482		891,709
Fixed assets (notes 9 and 15(g))		6,843		6,577
	$	1,429,070	$	1,429,651
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities	$	15,610
Accounts payable and accrued liabilities		13,834
Dividend payable		12,177		-
Income taxes payable		-		25,201
Derivative instruments liability (note 14)		-		7,077
Accrued compensation expense (notes 12 and 15(b))		18,435		17,024
Share-based compensation (note 12)		80,591		74,269
Management participation from Clairvest Equity Partners III and IV (note 8)		39,160		38,365
Deferred income tax liability		38,085		36,154
		204,058		211,924
Contingencies, commitments and guarantees (notes 11 and 15)
Shareholders' Equity		80,642
Share capital (note 10)			80,642
Retained earnings		1,144,370		1,137,085
		1,225,012		1,217,727
	$	1,429,070	$	1,429,651

(see accompanying notes to interim condensed consolidated financial statements)

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CLAIRVEST GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

		Quarter ended
		2023		June 30
$000's (except per share information)			2022
REVENUE	$	24,469
Net investment gain (loss) (notes 5 and 6)	$	(11,021)
Distributions and interest income (notes 6, 7 and 11)		7,124		4,600
Carried interest from Clairvest Equity Partners III and IV (note 8)		591		(585)
Dividend income		679		555
Management fees (note 7)		3,298		2,871
Advisory and other fees		708		577
		36,869		(3,003)
EXPENSES		4,567
Employee compensation and benefits (note 12 and 15(b))			3,168
Share-based compensation expenses (note 12)		6,094		7,380
Administration and other expenses		3,642		2,139
Finance and foreign exchange expenses (recovery)		733		(1,527)
Management participation from Clairvest Equity Partners III and IV (note 8)		795		(584)
		15,831		10,576
Income (loss) before income taxes		21,038		(13,579)
Income tax expense (recovery)		1,576		(2,241)
Net income (loss) and comprehensive income (loss) for the period		19,462		(11,338)
Basic and fully diluted net income (loss) and comprehensive income (loss) per share	$	1.30	$	(0.75)
(see accompanying notes to interim condensed consolidated financial statements)

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CLAIRVEST GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)

						Total
				Retained		shareholders'
$000's		Share capital		earnings		equity
As at April 1, 2023	$	80,642	$	1,137,085	$	1,217,727
Changes in shareholders' equity				19,462		19,462
Net income and comprehensive income for the period
				1,156,547		1,237,189
Dividends declared ($0.8105 per share)				(12,177)		(12,177)
As at June 30, 2023	$	80,642	$	1,144,370	$	1,225,012
As at April 1, 2022	$	80,794	$	1,098,293	$	1,179,087
Changes in shareholders' equity
Net loss and comprehensive loss for the period				(11,338)		(11,338)
				1,086,955		1,167,749
Dividends declared ($0.7833 per share)				(11,789)		(11,789)
As at June 30, 2022	$	80,794	$	1,075,166	$	1,155,960

(see accompanying notes to interim condensed consolidated financial statements)

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CLAIRVEST GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

$000's

Quarter ended June 30

2023 2022

OPERATING ACTIVITIES	$	19,462
Net income (loss) and comprehensive income (loss) for the period	$	(11,338)
Add (deduct) items not involving a current cash outlay:		295
Amortization of fixed assets			291
Share-based compensation		6,094		7,380
Deferred income tax expense (recovery)		1,931		(13,510)
Net investment (gain) loss		(24,469)		11,021
Carried interest and management participation from Clairvest Equity Partners III and IV		204		126
Non-cash items relating to foreign exchange forward contracts		(5,923)		3,437
Non-cash items relating to corporate investments		7,279		(2,515)
Adjustments for:		4,873		(5,108)
	2,132
Net proceeds on sale (cost of acquisition) of temporary investments			(28,866)
Net loans advanced to acquisition entities or the CEP Funds (note 11(f))		(60,924)		(30,720)
Cost of settlement of realized foreign exchange forward contracts		(2,041)		(218)
Increase in restricted cash		-		(5,156)
Settlement of share-based compensation liability		228		323
			(60,605)		(64,637)
Net change in non-cash working capital balances related to operations (note 13)		(39,885)		2,758
Cash used in operating activities		(95,617)		(66,987)
INVESTING ACTIVITIES		(561)
Purchase of fixed assets			(10)
Cash used in investing activities		(561)		(10)
Net decrease in cash during the period		(96,178)		(66,997)
Cash and cash equivalents, beginning of period		217,870		218,417
Cash and cash equivalents, end of period (note 13)	$	121,692	$	151,420
Supplemental cash flow information	$	3,702
Interest received	$	1,533
Distributions received	$	220	$	973
Income taxes paid	$	33,919	$	535
Interest paid		$	169	$	172

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