MVC Capital Announces Second Quarter 2018 Results
• New yielding investment activity has generated increased net operating income per share of
- Further deployment of capital into high yield investments should result in increased net operating income and shareholder distributions.
• Senior Notes refinancing completed in
• NAV was
• Excluding the NAV reductions detailed below, the portfolio had
$.28per share decline was directly attributable to the market prices of two publicly-traded securities, Crius Energy Trust(“Crius”) and Equus Total Return(“Equus”).
- The Euro moved from
$1.24on January 31, 2018to $1.21on April, 30, 2018, accounting for additional write-downs in the value of the portfolio by $1.9 millionor $.10per share.
1 Adjusted for incentive compensation and one-time expenses during the quarter.
2 Borrowing costs, adjusted for the one-time installment sale interest true-up from the sale of USG&E in
• Made two new yielding investments totaling
$15.0 millionin a first lien loan in Apex Industrial Technologies, LLC(“Apex”).
$6.0 millionin a second lien loan in Array Information Technology, Inc.(“Array”).
• Made six follow-on investments totaling
$6.0 millionto Custom Alloy Corporation(“Custom”) in the form of a first lien 10% short-term working capital loan that matures on August 31, 2018. The funded amount as of April 30, 2018was approximately $3.4 million.
- Loaned a total of
$700,000in two $350,000installments to RuMe, Inc.(“RuMe”), increasing the subordinated loan amount to approximately $1.7 millionand extended the maturity to March 30, 2020.
- Provided a
$2.3 millionloan to MVC Automotive Group GmbHto be used for working capital purposes, increasing the bridge loan amount to approximately $7.1 millionand extending the maturity to June 30, 2019.
• FDS, Inc. repaid its
• Vestal Manufacturing Enterprises, Inc. repaid its
• Received a principal payment of
|(Unaudited)($ in thousands, except per share data)||Q2 2018||Q1 2018||Q4 2017||Q3 2017||Q2 2017|
|Total operating income||5,500||5,207||5,490||7,305||3,929|
|Portfolio fees - asset management||148||147||148||146||138|
|Management fee - asset management||66||67||67||67||49|
|Interest, fees and other borrowing costs||2,981||3,117||2,495||2,649||2,606|
|Loss on extinguishment of debt||-||1,783||-||-||-|
|Net Incentive compensation||(1,012)||267||(1,224)||5,077||985|
|Total waiver by adviser||(599)||(390)||(372)||(386)||(461)|
|Net operating income (loss) before net realized and unrealized gains||1,563||(2,490)||2,057||(2,445)||(2,256)|
|Net (decrease) increase in net assets resulting from operations||(3,393)||950||(4,028)||23,906||3,069|
|Net (decrease) increase in net assets resulting from operations per share||(0.18)||0.05||(0.17)||1.06||0.14|
|Net asset value per share||13.09||13.42||13.24||13.38||12.45|
Key Financial Metrics
For the second quarter of fiscal 2018, the Company earned
The Company reported total operating income of
In the quarter, the NAV decreased by
Since implementing its dividend policy in July of 2005, MVC has paid fifty-two consecutive quarterly dividends, which have grown over time. Through
About MVC Capital, Inc.
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
The information contained in this press release contains forward-looking statements. 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: MVC Capital's ability to deliver value to shareholders and execute its yield investment strategy; the ability to pay and grow shareholder distributions; the ability to maintain expenses; the ability to improve net operating income; the performance of MVC Capital's investments, including, portfolio companies in which the Company invested this past quarter; and changes in economic or financial market conditions and other factors that are enumerated in the Company's periodic filings with the Securities and Exchange Commission. MVC Capital disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release.
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 is no assurance that the market price of MVC's shares, either absolutely or relative to net asset value, will increase as a result of any share repurchases, or that the program will enhance shareholder value over the long-term. 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.