Clarke Inc. Reports 2024 Third Quarter Results
HALIFAX, NS, Nov. 8, 2024 /CNW/ - Clarke Inc. ("Clarke" or the "Company") (TSX:CKI) today announced its results for the three and nine months ended September 30, 2024.
Third Quarter Results
Results for the three and nine months ended September 30, 2024, improved compared to the same periods in 2023. The Company's net income was $12.2 million and $16.4 million for the three and nine months ended September 30, 2024, respectively, compared to net losses of $1.9 million and $4.1 million, respectively, for the same periods in 2023.
Hotel operations produced strong third quarter results and achieved net operating income1 of $8.6 million for the quarter and $18.4 million year-to-date, compared to $8.2 million and $18.2 million, respectively, in 2023. The improved year-over-year results are mainly due to increased business in our Northern Canadian markets. Hotel revenue in the three and nine months ended September 30, 2024 was $18.5 million and $47.4 million, respectively, compared to $19.3 million and $50.0 million in 2023. The Company had two fewer hotels in operations in 2024 compared to 2023, which was the cause of the decline. On a same-hotel basis, hotel revenue was materially consistent for the three months ended September 30, 2024 and increased by $0.8 million for the nine months ended September 30, 2024.
During the third quarter of 2024, the Company's book value per common share1 increased by $1.69, or 10.2%. The increase can be attributed primarily to (i) hotel net operating income of $8.6 million or $0.62 per share, (ii) revaluation gains on certain hotels of $15.6 million or $1.12 per share, (iii) a fair value adjustment on investment properties of $4.1 million or $0.29 per share, and (iv) after-tax remeasurement gains and changes on the Company's pension plans of $2.5 million or $0.18 per share, offset by (v) depreciation of $2.6 million or $0.19 per share and (vi) interest and accretion of $1.9 million or $0.14 per share.
The Company's book value per common share at the end of the quarter was $18.32 while our common share price was $23.96. Additional commentary on our third quarter results can be found in our Management's Discussion & Analysis for the three and nine months ended September 30, 2024.
1 Book value per share and hotel net operating income are non-IFRS measures and ratios. Refer to the "Cautionary Statement Regarding Use of Non-IFRS Accounting Measures and Ratios" section of this press release and our September 30, 2024 MD&A for more information.
Other Information
Highlights of the interim condensed consolidated financial statements for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023 are as follows:
(in millions, except per share amounts)
