MVC Capital Announces Third Quarter 2018 Results
For the third quarter of fiscal 2018, the Company earned interest income of
The Company reported total operating income of
Key Financial Metrics
|(Unaudited)($ in thousands, except per share data)||Q3 2018||Q2 2018||Q1 2018||Q4 2017||Q3 2017|
|Total operating income||6,211||5,500||5,207||5,490||7,305|
|Portfolio fees - asset management||112||148||147||148||146|
|Management fee - asset management||70||66||67||67||67|
|Interest, fees and other borrowing costs||2,403||2,981||3,117||2,495||2,649|
|Loss on extinguishment of debt||-||-||1,783||-||-|
|Net Incentive compensation||(1,316)||(1,012)||267||(1,224)||5,077|
|Total waiver by adviser||(595)||(599)||(390)||(372)||(386)|
|Net operating income (loss) before net realized and unrealized gains||2,980||1,563||(2,490)||2,057||(2,445)|
|Net (decrease) increase in net assets resulting from operations||(5,870)||(3,393)||950||(4,028)||23,906|
|Net (decrease) increase in net assets resulting from operations per share||(0.32)||(0.18)||0.05||(0.17)||1.06|
|Net asset value per share||12.62||13.09||13.42||13.24||13.38|
- Completed the sale of
Centile Holdings B.V.for an approximate 2X return on initial investment1
- Total operating income increased to
$16.9 millionfor the nine-months ending July 31, 2018, a 16% increase over the same period in fiscal 2017
- Increased net operating income per share of
$.092 per share for the quarter compared to negative net operating income in the third quarter of 2017.
- Increased net operating income per share of
- NAV was
$12.62per share as of July 31, 2018, compared to $13.09per share as of April 30, 2018. The changes in the value of the portfolio were largely driven by declines in the market prices of two publicly-traded securities, Crius Energy Trust(“Crius”) and Equus Total Return(“Equus”), and currency headwinds. Excluding these items, the net valuation changes across the entire portfolio were approximately flat.
1 The proceeds at closing and after the escrow period are net of transaction fees and expenses and based on the exchange rate on July 31, 2018. The escrow proceeds remain subject to currency fluctuations.
2 Adjusted for incentive compensation
- Made follow-on yielding investments in three portfolio companies totaling
$8.9 millionduring the third quarter of 2018.
May 30, 2018, the Company loaned an additional $4.8 millionto Security Holdings, B.V.(“Security Holdings”) in the form of a senior subordinated loan and provided a 3.3 million Euroletter of credit. The loan has an annual interest rate of 12.45% and a maturity date of May 31, 2020.
$1.2 millionto RuMe, Inc.(“RuMe”) in the third quarter of 2018, increasing the subordinated loan amount to approximately $3.0 millionand extended the maturity date to March 31, 2020.
February 28, 2018, the Company committed $6.0 millionto Custom Alloy Corporation(“Custom Alloy”) in the form of a first lien loan with an interest rate of 10%. During the third quarter of fiscal 2018, the Company loaned approximately $3.0 millionto Custom. The funded amount as of July 31, 2018, net of repayments, was approximately $4.1 millionwith no additional borrowings available on the commitment.
Since implementing its dividend policy in July of 2005, MVC has paid fifty-three consecutive quarterly dividends, which have increased over time. 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
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:
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.