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Clarke Inc. Reports 2020 Second Quarter Results

HALIFAX, NS, Aug. 11, 2020 /CNW/ -A Clarke Inc. ("Clarke" or the "Company") (TSX: CKI) (TSX: CKI.DB) today announced its results for the three and six months ended June 30, 2020.COVID-19The spread of COVID-19, consumer and business perceptions of the danger of COVID-19 and Canadian and provincial government responses to COVID-19 have affected Clarke materially and adversely during the first two quarters of 2020. Oil prices collapsed, impacting oil and gas producer capex budgets and, therefore, Trican Well Service Ltd. ("Trican"). Business and leisure travel collapsed, impacting Holloway Lodging Corporation ("Holloway"). Even day-to-day commuting and travel collapsed, which impacted Clarke's ferry business, including a five and half week postponement to the opening of the season. At some point, business lockdowns and travel bans will be lifted, economic activity will resume, and our businesses will recover. But, when this occurs and how long it takes for business levels to normalize remain highly uncertain. In mid-March, as the impact of COVID-19 on business levels became apparent, we took immediate and drastic action at our businesses to safeguard employee and customer safety, ensure financial liquidity, reduce and/or defer expenses and minimize cash burn. Although we believe the impact of COVID-19 will be temporary, we expect to generate negative cash flow at Holloway, and our ferry business until the economy "opens up" again. The world will need energy once again, a large portion of this will be provided from oil or natural gas and Trican will be best positioned in Canada to help oil and gas producers complete their wells. People will still want or need to travel, and Holloway will accommodate guests. And cars, trucks and passengers will need to cross the St. Lawrence River and our ferry operation will remain an efficient way of doing so. Second Quarter Results
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