Mr. George Armoyan reports

CLARKE INC. REPORTS 2023 SECOND QUARTER RESULTS

Clarke Inc. has released its results for the three and six months ended June 30, 2023.

Second quarter results

Results for the three and six months ended June 30, 2023, were consistent with the same periods in 2022. The company's net loss was $500,000 and $2.2-million for the three and six months ended June 30, 2023, respectively, compared with $500,000 and $2-million for the same periods in 2022.

Hotel operations produced strong second quarter results and achieved net operating income of $5.6-million for the quarter and $10-million year to date, compared with $4.8-million and $8-million in 2022. Hotel revenue was $15.7-million for the quarter and $30.7-million year to date, compared with $12.6-million and $22.2-million in 2022. In addition to the continued COVID-19 pandemic recovery, this increase is primarily due to two factors. During the second quarter of 2022, the Sternwheeler Hotel and Conference Center in Whitehorse, Yukon, was still undergoing renovations and was not operating at full capacity. The company also acquired the Stanford Inn & Suites in Grande Prairie, Alta., in June, 2022, increasing the company's total hotel room count by approximately 10 per cent.

During the second quarter of 2023, the company's book value per common share decreased by four cents, or 0.3 per cent. The change can be attributed primarily to: (i) hotel net operating income of $5.6-million, or 40 cents per share; offset by: (ii) deprecation and amortization of $2.6-million, or 18 cents per share; and (iii) interest and accretion of $1.9-million, or 14 cents per share.

The company's book value per common share at the end of the quarter was $15.31 while the company's common share price was $12.93.

Additional commentary on the company's second quarter results can be found in its management discussion and analysis for the three and six months ended June 30, 2023.

Other information

Highlights of the interim condensed consolidated financial statements for the three and six months ended June 30, 2023, compared with the three and six months ended June 30, 2022, are as shown in the attached table.

Further information about Clarke, including Clarke's interim condensed consolidated financial statements and management discussion and analysis for the three and six months ended June 30, 2023, is available on SEDAR+ and on the company's website.

About Clarke Inc.

Halifax-based Clarke is an investment and real estate company with holdings in a diversified group of businesses and across real estate sectors. Clarke's common shares trade on the Toronto Stock Exchange.

We seek Safe Harbor.