MVC Capital Announces First Quarter 2019 Results
For the first quarter of fiscal 2019, the Company earned interest income of
The Company reported total operating income of
Key Financial Metrics
|(Unaudited)($ in thousands, except per share data)||Q1 2019||Q4 2018||Q3 2018||Q2 2018||Q1 2018|
|Total operating income||6,441||5,888||6,151||5,440||5,147|
|Portfolio fees - asset management||96||122||112||148||147|
|Management fee - asset management||71||81||70||66||67|
|Interest, fees and other borrowing costs||2,484||2,238||2,403||2,981||3,117|
|Loss on extinguishment of debt||-||-||-||-||1,783|
|Net Incentive compensation||-||-||(1,316||)||(1,012||)||267|
|Total waiver by adviser||(604||)||(598||)||(595||)||(599||)||(390||)|
|Net operating income (loss) before net realized and unrealized gains||1,447||1,705||2,980||1,563||(2,490||)|
|Net (decrease) increase in net assets resulting from operations||(3,053||)||(2,220||)||(5,870||)||(3,393||)||950|
|Net (decrease) increase in net assets resulting from operations per share||(0.17||)||(0.10||)||(0.32||)||(0.18||)||0.05|
|Net asset value per share||12.24||12.46||12.62||13.09||13.42|
Operational Update & Portfolio Activity
- NAV was
$12.24per share as of January 31, 2019, compared to $12.46per share as of October 31, 2018.
- Total operating income increased to
$6.4 millionfor the quarter ending January 31, 2019, a 25% increase over the same quarter of fiscal 2018.
- The Company made one new investment totaling
$1.9 millionand one follow-on investment totaling $2.0 millionduring the first fiscal quarter. The new investment was made in GTM Intermediate Holdings, Inc.and the follow-on investment was made in Custom Alloy Corporation.
- Received proceeds from the
MVC Private Equity Fund L.P.(“PE Fund”) related to the sale of Plymouth Rock Energy, LLC, a portfolio company of the PE Fund.
- During the quarter, 467,686 shares of its common stock were repurchased at an average price per share of
$8.70, including commissions, completing the Company’s $10 millionshare repurchase program initiated during the fourth quarter of 2018.
January 29, 2019, the Company entered into a favorable three-year, $35 millionrevolving credit facility with People’s, which can be increased up to $85 millionunder certain conditions. Borrowings under the facility bear interest of LIBOR plus 2.85% or the prime rate plus 0.5%, at MVC’s discretion.
Since implementing its dividend policy in July of 2005, the Company has paid fifty-five consecutive quarterly dividends. Through
About MVC Capital, Inc.
MVC Capital (MVC) is a business development company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For additional information about MVC, please visit MVC's website at www.mvccapital.com.
Safe Harbor Statement and Other Disclosures
These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including, among other things: whether the Crius Transaction will be consummated and the amount of the actual price per share ultimately to be paid at closing;
The press release contains unaudited financial results. For ease of review, we have excluded the word "approximately" when rounding the results.
There can be no assurance that future dividend payments will match or exceed historic ones, or that they will be made at all. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell shares of MVC's common stock. There can be no assurance that MVC will achieve its investment objective.
Jeffrey Goldberger / Allison Soss
212.896.1249 / 212.896.1267
Source: MVC Capital, Inc.