Net Investment Income Increases to $0.22 Per Share, Up 10%
Quarter-Over-Quarter
Announces Monthly Distributions of $0.077 per Share for a Total of
$0.231 Per Share for Fourth Fiscal Quarter 2013, Equal to Annualized
Distribution Rate of $0.924 Per Share
RYE BROOK, N.Y. -- (Business Wire)
Full Circle Capital Corporation (Nasdaq: FULL) (the “Company”) today
announced its financial results for the second quarter of fiscal 2013
ended December 31, 2012.
Financial Highlights for the Second Quarter of
Fiscal 2013
-
Net asset value was $8.03 per share at December 31, 2012.
-
Total investment income was $3.1 million, including income from fees,
dividends and other sources of $0.5 million.
-
Net investment income was $1.5 million, or $0.22 per share.
-
Monthly distributions of $0.077 per share were paid on November 15,
2012, December 14, 2012 and January 15, 2013, totaling $0.23 per share
for the quarter.
-
Net realized losses were $(3.2) million, or $(0.49) per share, and net
unrealized gains were $1.3 million, or $0.20 per share, and combined
with net investment income, resulted in a net decrease in net assets
from operations of $(0.4) million, or $(0.06) per share.
-
Total portfolio investments at December 31, 2012 were $77.6 million
(excluding U.S. treasury bills of $22.0 million), compared to $75.5
million (excluding U.S. treasury bills of $25.0 million) at September
30, 2012.
-
Weighted average portfolio interest rate was 12.55% at December 31,
2012.
-
New originations were $3.9 million, consisting of a new debt facility
to SOLEX Fine Foods, LLC. Additional funding to existing borrowers
totaled $1.6 million (excluding regular borrowing under revolvers).
-
At December 31, 2012, 88% of portfolio company investments were first
lien senior secured loans.
-
At December 31, 2012, debt outstanding was $20.0 million consisting of
$16.6 million drawn under the Company’s $35.0 million senior credit
facility and $3.4 million of senior unsecured notes.
-
On November 27, 2012 the Company raised $10.1 million of net equity
capital through a public offering of 1.35 million common shares priced
at $7.90 per share.
On February 5, 2013, the Board of Directors declared monthly
distributions for the fourth quarter of fiscal 2013 as follows:
|
Record Date
|
|
|
|
|
|
|
|
Payment Date
|
|
|
|
|
|
|
|
Per Share Amount
|
|
April 30, 2013
|
|
|
|
|
|
|
|
May 15, 2013
|
|
|
|
|
|
|
|
$0.077
|
|
May 31, 2013
| | | | | | | |
June 14, 2013
| | | | | | | |
$0.077
|
|
June 28, 2013
|
|
|
|
|
|
|
|
July 15, 2013
|
|
|
|
|
|
|
|
$0.077
|
| | | | | | | | | | | | | | | |
|
These distributions equate to a $0.924 annualized distribution rate, or
a current annualized yield of 11.9%, based on the closing price of the
Company’s common stock of $7.76 per share on February 8, 2013.
Management Commentary
“Net investment income per share increased 10% sequentially to $0.22,
marking the second consecutive quarter of such growth. While growing net
investment income, we have continued to increase our investment
portfolio which totaled $77.6 million at quarter end, the largest level
since our IPO in 2010,” said John Stuart, Chairman and Chief Executive
Officer of Full Circle Capital Corp. “Our primary strategy of investing
in first lien senior secured loans to smaller and lower middle-market
companies with a desirable yield continues to produce highly competitive
portfolio metrics. We now have debt investments in 18 companies with
first lien senior secured loans comprising 88% of the total investment
portfolio. The weighted average yield on the portfolio was 12.55% for
the quarter, within our current target range. Our positions are further
supported by a loan-to-value ratio of 59%, with floating rate
flexibility in 84% of our investments.”
“With the capital raised during the quarter, we have additional
resources to continue to expand our investment portfolio. Originations
and additional funding to existing borrowers totaled $5.5 million for
the second quarter and subsequent to the end of the quarter we added,
net of payoffs, a $2.0 million investment to our portfolio. Our flexible
uni-tranche lending solutions continue to attract quality credit
opportunities allowing us to remain highly selective in the current
market environment.”
Second Quarter Fiscal 2013 Results
The Company’s net asset value at December 31, 2012 was $8.03 per share.
During the quarter, the Company generated $2.6 million of interest
income, of which 100% was paid in cash. Income from fees, dividends and
other sources totaled $0.5 million. The Company recorded net investment
income of $1.5 million, or $0.22 per share. Net realized losses were
$(3.2) million, or $(0.49) per share, and unrealized gains were $1.3
million, or $0.20 per share, both primarily related to the disposition
of one investment. Net decrease in net assets from operations was $(0.4)
million, or $(0.06) per share. Per share amounts for the quarter ended
December 31, 2012 are based on approximately 6.7 million weighted
average shares outstanding.
During the quarter, the Company originated a $3.9 million new loan
facility, which was fully funded at closing. Additional funding to
existing borrowers, excluding regular borrowing under revolvers, was
$1.6 million during the quarter.
At December 31, 2012, the Company’s portfolio included investments in 21
companies, of which 18 were debt investments. The average portfolio
company debt investment at December 31, 2012 was $4.0 million. The
weighted average interest rate on investments was 12.55%. At fair value,
88% of portfolio investments were first lien loans, 4% were second lien
loans and 8% were equity investments. Approximately 84% of the debt
investment portfolio, at fair value, bore interest at floating rates.
The loan-to-value ratio on the Company’s loans was 59% at December 31,
2012 compared to 62% at September 30, 2012.
Subsequent Events
On January 31, 2013 the Company received a full payoff of its senior
secured term loan to The Selling Source, LLC, receiving $2.4 million in
principal, interest and fees. On February 1, 2013, the Company invested
$4.0 million in a new senior secured term loan to The Selling Source,
LLC, bearing interest at 12.50% and maturing February 1, 2017.
Conference Call Details
Management will host a conference call to discuss these results on
Tuesday, February 12, 2013 at 10:00 a.m. ET. To participate in the
conference call, please call 866-305-6438 (domestic call-in) or
706-679-7161 (international call-in) and reference code # 96405426.
A live webcast of the conference call and the accompanying slide
presentation will be available at http://ir.fccapital.com/CorporateProfile.aspx?iid=4151676.
All participants should call or access the website approximately 10
minutes before the conference begins.
A telephone replay of the conference call will be available from 1:00
p.m. ET on February 12, 2013 until 11:59 p.m. ET on February 14, 2013 by
calling 855-859-2056 (domestic) or 404-537-3406 (international) and
entering confirmation # 96405426. An archived replay of the conference
call and slide presentation will also be available in the investor
relations section of the company’s website.
About Full Circle Capital Corporation
Full Circle Capital Corporation (www.fccapital.com)
is a closed-end investment company that has elected to be treated as a
business development company under the Investment Company Act of 1940.
Full Circle lends to and invests in senior secured loans and, to a
lesser extent, mezzanine loans and equity securities issued by smaller
and lower middle-market companies that operate in a diverse range of
industries. Full Circle’s investment objective is to generate both
current income and capital appreciation through debt and equity
investments. For additional information visit the company’s web site www.fccapital.com.
Forward-Looking Statements
This press release contains forward-looking statements which relate to
future events or Full Circle's future performance or financial
condition. Any statements that are not statements of historical fact
(including statements containing the words “believes,” “plans,”
“anticipates,” “expects,” “estimates” and similar expressions) should
also be considered to be forward-looking statements. These
forward-looking statements are not guarantees of future performance,
condition or results and involve a number of risks and uncertainties.
Actual results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those described
from time to time in Full Circle's filings with the Securities and
Exchange Commission. Full Circle undertakes no duty to update any
forward-looking statements made herein.
|
|
|
|
| |
|
| |
| FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES |
| CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES |
| | | | | | | |
|
| | | | |
December 31, 2012
| | |
June 30, 2012
|
| | | | |
(Unaudited)
| | |
(Audited)
|
| Assets | | | | | | | | |
Control Investments at Fair Value (Cost of $18,137,713 and
| | | | | | | | |
$6,639,648, respectively)
| | | | |
$
|
18,570,697
| | | |
$
|
6,777,511
| |
Affiliate Investments at Fair Value (Cost of $11,296,481 and
| | | | | | | | | | |
$6,802,017, respectively)
| | | | | |
9,282,442
| | | | |
5,112,142
| |
Non-Control/Non-Affiliate Investments at Fair Value (Cost of
| | | | | | | | | | |
$72,151,382 and $85,181,617, respectively)
| | | | |
|
71,765,827
|
| | |
|
82,957,117
|
|
Total Investments at Fair Value (Cost of $101,585,576 and
| | | | | | | | | | |
$98,623,282, respectively)
| | | | | |
99,618,966
| | | | |
94,846,770
| |
| | | | | | | | | |
|
|
Cash
| | | | | |
304,077
| | | | |
639,149
| |
|
Deposit with Broker
| | | | | |
2,250,000
| | | | |
2,350,000
| |
|
Interest Receivable
| | | | | |
848,630
| | | | |
902,711
| |
|
Principal Receivable
| | | | | |
251,751
| | | | |
513,372
| |
|
Dividends Receivable
| | | | | |
72,493
| | | | |
-
| |
|
Due from Portfolio Investment
| | | | | |
364,535
| | | | |
11,140
| |
|
Receivable for Investments Sold
| | | | | |
1,126,196
| | | | |
-
| |
|
Prepaid Expenses
| | | | | |
107,717
| | | | |
43,053
| |
|
Other Assets
| | | | | |
10,550
| | | | |
25,499
| |
|
Deferred Offering Expenses
| | | | | |
-
| | | | |
67,685
| |
|
Deferred Credit Facility Fees
| | | | |
|
100,000
|
| | |
|
50,000
|
|
| Total Assets | | | | |
|
105,054,915
|
| | |
|
99,449,379
|
|
| | | | | | | | | |
|
| Liabilities | | | | | | | | | | |
|
Due to Affiliate
| | | | | |
710,556
| | | | |
580,353
| |
|
Accounts Payable
| | | | | |
19,337
| | | | |
115,741
| |
|
Accrued Liabilities
| | | | | |
47,455
| | | | |
79,651
| |
|
Due to Broker
| | | | | |
22,000,733
| | | | |
22,500,041
| |
|
Dividends Payable
| | | | | |
582,842
| | | | |
478,892
| |
|
Interest Payable
| | | | | |
100,479
| | | | |
142,518
| |
|
Other Liabilities
| | | | | |
759,692
| | | | |
140,458
| |
|
Accrued Offering Expenses
| | | | | |
-
| | | | |
19,697
| |
|
Line of Credit
| | | | | |
16,622,598
| | | | |
18,544,660
| |
|
Distribution Notes
| | | | |
|
3,404,583
|
| | |
|
3,404,583
|
|
| Total Liabilities | | | | |
|
44,248,275
|
| | |
|
46,006,594
|
|
| | | | | | | | | |
|
| Net Assets | | | | |
$
|
60,806,640
|
| | |
$
|
53,442,785
|
|
| Components of Net Assets | | | | | | | | | | |
|
Common Stock, par value $0.01 per share
| | | | | | | | | | |
|
(100,000,000 authorized; 7,569,382 and 6,219,382 issued
| | | | | | | | | | |
|
and outstanding, respectively)
| | | | |
$
|
75,694
| | | |
$
|
62,194
| |
|
Paid-in Capital in Excess of Par
| | | | | |
67,420,152
| | | | |
57,455,232
| |
|
Distributions in Excess of Net Investment Income
| | | | | |
(500,122
|
)
| | | |
(122,763
|
)
|
|
Accumulated Net Realized Losses
| | | | | |
(4,222,474
|
)
| | | |
(175,366
|
)
|
|
Accumulated Net Unrealized Losses
| | | | |
|
(1,966,610
|
)
| | |
|
(3,776,512
|
)
|
| Net Assets | | | | |
$
|
60,806,640
|
| | |
$
|
53,442,785
|
|
| Net Asset Value Per Share | | | | |
$
|
8.03
|
| | |
$
|
8.59
|
|
| | | | | | | | | |
|
|
|
| | |
|
| | |
|
|
| | |
|
|
| | |
FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) |
| | | | | | | | | | | | | | | | | |
|
| | | | Three Months Ended | | | | | Six Months Ended |
| | | | December 31, | | | | | December 31, |
| | | | 2012 | | | | 2011 | | | | | 2012 | |
| | | 2011 |
| Investment Income | | | | | | | | | | | | | | | | | | |
|
Interest Income from Non-Control/Non-Affiliate Investments
| | |
$
|
1,974,071
| | | |
$
|
2,104,779
| | | | |
$
|
3,994,055
| | | | |
$
|
3,930,042
| |
|
Interest Income from Affiliate Investments
| | | |
280,567
| | | | |
-
| | | | | |
560,508
| | | | | |
234,864
| |
|
Interest Income from Control Investments
| | | |
319,411
| | | | |
227,071
| | | | | |
598,584
| | | | | |
254,644
| |
|
Dividend Income from Control Investments
| | | |
72,493
| | | | |
1,823
| | | | | |
106,590
| | | | | |
1,823
| |
|
Other Income from Non-Control/Non-Affiliate Investments
| | | |
384,553
| | | | |
64,992
| | | | | |
528,580
| | | | | |
376,449
| |
|
Other Income from Affiliate Investments
| | | |
56,004
| | | | |
-
| | | | | |
59,585
| | | | | |
54,086
| |
|
Other Income from Control Investments
| | | |
12,500
|
| | | |
-
|
| | | | |
25,000
|
| | | | |
105,000
|
|
|
Total Investment Income
| | | |
3,099,599
|
| | | |
2,398,665
|
| | | | |
5,872,902
|
| | | | |
4,956,908
|
|
| | | | | | | | | | | | | | | | | |
|
| Operating Expenses | | | | | | | | | | | | | | | | | | |
|
Management Fee
| | | |
345,126
| | | | |
300,690
| | | | | |
679,162
| | | | | |
586,650
| |
|
Incentive Fee
| | | |
365,430
|
| | | |
274,674
|
| | | | |
673,362
|
| | | | |
646,276
|
|
|
Total Advisory Fees
| | | |
710,556
|
| | | |
575,364
|
| | | | |
1,352,524
|
| | | | |
1,232,926
|
|
| | | | | | | | | | | | | | | | | |
|
|
Allocation of Overhead Expenses
| | | |
84,552
| | | | |
89,207
| | | | | |
141,308
| | | | | |
174,892
| |
|
Sub-Administration Fees
| | | |
50,000
| | | | |
78,115
| | | | | |
123,429
| | | | | |
156,229
| |
|
Officers’ Compensation
| | | |
75,160
|
| | | |
71,629
|
| | | | |
150,354
|
| | | | |
117,553
|
|
Total Costs Incurred Under Administration Agreement
| | | |
209,712
|
| | | |
238,951
|
| | | | |
415,091
|
| | | | |
448,674
|
|
| | | | | | | | | | | | | | | | | |
|
|
Directors’ Fees
| | | |
33,125
| | | | |
26,125
| | | | | |
61,750
| | | | | |
54,250
| |
|
Interest Expense
| | | |
438,587
| | | | |
244,405
| | | | | |
835,082
| | | | | |
366,965
| |
|
Professional Services Expense
| | | |
109,902
| | | | |
93,806
| | | | | |
275,063
| | | | | |
314,679
| |
|
Bank Fees
| | | |
5,230
| | | | |
3,285
| | | | | |
8,320
| | | | | |
6,966
| |
|
Other
| | | |
126,837
|
| | | |
118,089
|
| | | | |
221,177
|
| | | | |
203,258
|
|
| Total Gross Operating Expenses | | | |
1,633,949
| | | | |
1,300,025
| | | | | |
3,169,007
| | | | | |
2,627,718
| |
| | | | | | | | | | | | | | | | | |
|
|
Management Fee Waiver and Expense Reimbursement
| | | |
-
|
| | | |
-
|
| | | | |
-
|
| | | | |
(313,792
|
)
|
| Total Net Operating Expenses | | | |
1,633,949
|
| | | |
1,300,025
|
| | | | |
3,169,007
|
| | | | |
2,313,926
|
|
| | | | | | | | | | | | | | | | | |
|
|
Net Investment Income
| | | |
1,465,650
| | | | |
1,098,640
| | | | | |
2,703,895
| | | | | |
2,642,982
| |
|
Net Change in Unrealized Gain (Loss) on Investments
| | | |
1,292,589
| | | | |
(846,865
|
)
| | | | |
1,809,902
| | | | | |
(917,680
|
)
|
|
Net Realized Gain (Loss) on Investments
| | | |
(3,186,441
|
)
| | | |
766
|
| | | | |
(4,047,108
|
)
| | | | |
126,572
|
|
Net Increase (Decrease) in Net Assets Resulting | | | | | | | | | | | | | | | | | | | | | | |
from Operations | | |
$
|
(428,202
|
)
| | |
$
|
252,541
|
| | | |
$
|
466,689
|
| | | |
$
|
1,851,874
|
|
| | | | | | | | | | | | | | | | | |
|
|
Earnings (Loss) per Common Share Basic and Diluted
| | |
$
|
(0.06
|
)
| | |
$
|
0.04
| | | | |
$
|
0.07
| | | | |
$
|
0.30
| |
|
Net Investment Income per Common Share Basic and Diluted
| | |
$
|
0.22
| | | |
$
|
0.18
| | | | |
$
|
0.42
| | | | |
$
|
0.43
| |
Weighted Average Shares of Common Share
| | | | | | | | | | | | | | | | | | | | | | |
Outstanding Basic and Diluted
| | | |
6,732,969
| | | | |
6,219,382
| | | | | |
6,476,175
| | | | | |
6,219,382
| |
| | | | | | | | | | | | | | | | | |
|
|
|
| |
| |
|
| | | |
| FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES |
| FINANCIAL HIGHLIGHTS (Unaudited) |
| | | | | | | | | |
|
| | | | |
| | | | | |
| | | Three months ended | | Three months ended | | | Six months ended | | Six months ended |
| | | December 31, 2012 | | December 31, 2011 | | | December 31, 2012 | | December 31, 2011 |
| Per Share Data 1 : | | | | | | | |
|
|
|
|
| | |
|
Net asset value at beginning of period
| | |
$
|
8.51
| | |
$
|
9.11
| | |
$
|
8.59
| | |
$
|
9.08
| |
|
Dilution from offering 2 | | | |
(0.17
|
)
| | |
-
| | | |
(0.17
|
)
| | |
-
| |
|
Offering costs
| | | |
(0.01
|
)
| | |
-
| | | |
(0.01
|
)
| | |
-
| |
|
Net investment income
| | | |
0.22
| | | |
0.18
| | | |
0.42
| | | |
0.43
| |
|
Change in unrealized gain (loss)
| | | |
0.20
| | | |
(0.14
|
)
| | |
0.28
| | | |
(0.15
|
)
|
|
Realized gain (loss)
| | | |
(0.49
|
)
| | |
-
| | | |
(0.62
|
)
| | |
0.02
| |
|
Dividends declared
| | |
|
(0.23
|
)
| |
|
(0.23
|
)
| |
|
(0.46
|
)
| |
|
(0.46
|
)
|
|
Net asset value at end of period
| | |
$
|
8.03
|
| |
$
|
8.92
|
| |
$
|
8.03
|
| |
$
|
8.92
|
|
| | | | | | | | | | | | |
|
|
|
|
| |
|
|
| |
| | | 1 | | | |
Financial highlights are based on weighted average shares
outstanding.
|
| | | | | | |
|
| | | 2 | | | |
Dilution from offering is based on the change in net asset value
from the secondary offering on November 27, 2012.
|
| | | | | | |
|
Contacts:
Company:
Full Circle Capital Corporation
John E.
Stuart, CEO
914-220-6300
jstuart@fccapital.com
or
Investor
Relations:
LHA
Stephanie Prince/Jody Burfening
212-838-3777
sprince@lhai.com
Source: Full Circle Capital Corporation
© 2014 Canjex Publishing Ltd. All rights reserved.