HALIFAX, N.S. — Clarke’s strategic and opportunistic investment strategy led to positive results for the first quarter of 2007, ending March 31.
Based on the strength of the results, Clarke’s board of directors also announced today a 2-for-1 stock split, which will be effected by way of a stock dividend payable on June 29 to shareholders of record at the end of business on June 18.
“This is the second time in just over a year that Clarke’s stock has split, illustrating the company’s continuing growth, said George Armoyan, president and CEO of Clarke. We believe the stock split we are announcing today, together with the ongoing conversion of the company’s convertible debentures, will help enhance liquidity for our shareholders.”
EBITDA for the Freight Transportation Segment increased by $0.7 million in the three months ended March 31, from $0.3 million in the same quarter last year to $1.0 million, despite the negative impact of a labour disruption at CN Railway, noted company officials.
Results for the three month period were also negatively impacted by a lock-out of dock workers at Clarke’s Toronto terminal during the period.
On Feb. 27, Dean Cull, president of Clarke Road Transport, was also promoted COO of Freight Transportation Services for Clarke; as well as president of the company’s wholly-owned subsidiary Clarke Transport.
“Dean’s leadership has helped to deliver positive results at Clarke Road Transport; now, he is working to help us achieve our goals for our entire Freight Transportation business,” said Armoyan, regarding Cull’s appointment.
The company will continue to pursue its strategic and opportunistic investment strategy, and looks forward to making significant investments in new companies in which it can actively participate at the board level.
Clarke also anticipates continued improved performance in its Freight Transportation Segment.
“We continue to have significant liquid assets and a solid balance sheet,” said Armoyan. “Clarke has transformed itself into an activist catalyst investor, turning in a strong investment performance based on excellent research, active involvement, operational expertise and a sound underlying strategy. Barring any unforeseen events, we expect 2007 to be a record year for the company.”
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