MVC Capital Announces Fourth Quarter and Full Year 2018 Results
For the fourth quarter of fiscal 2018, the Company earned interest income of
The Company reported total operating income of
For the fiscal year 2018, the Company earned interest income of
The Company reported total operating income of
Key Financial Metrics
|(Unaudited)($ in thousands, except per share data)||Q4 2018||Q3 2018||Q2 2018||Q1 2018||Q4 2017|
|Total operating income||5,967||6,211||5,500||5,207||5,490|
|Portfolio fees - asset management||122||112||148||147||148|
|Management fee - asset management||81||70||66||67||67|
|Interest, fees and other borrowing costs||2,238||2,403||2,981||3,117||2,495|
|Loss on extinguishment of debt||-||-||-||1,783||-|
|Net Incentive compensation||-||(1,316||)||(1,012||)||267||(1,224||)|
|Total waiver by adviser||(598||)||(595||)||(599||)||(390||)||(372||)|
|Net operating income (loss) before net realized and unrealized gains||1,705||2,980||1,563||(2,490||)||2,057|
|Net (decrease) increase in net assets resulting from operations||(2,220||)||(5,870||)||(3,393||)||950||(4,028||)|
|Net (decrease) increase in net assets resulting from operations per share||(0.10||)||(0.32||)||(0.18||)||0.05||(0.17||)|
|Net asset value per share||12.46||12.62||13.09||13.42||13.24|
Operational Update & Portfolio Activity For Fiscal 2018
- NAV was
$12.46per share as of October 31, 2018, compared to $12.62per share as of July 31, 2018.
- Total operating income increased to
$22.9 millionfor the year ending October 31, 2018, a 14% increase over fiscal year 2017.
- The Company made six new investments totaling
$41.5 millionand eight follow-on investments totaling $20.8 millionduring the fiscal year. The new investments were made in Essner Manufacturing ( $3.7 million), Black Diamond Equipment Rental ( $7.5 million), Apex Industrial Technologies, LLC( $15.0 million), Array Information Technology, Inc.( $6 million), Tuf-Tug, Inc.( $5.6 million) and Tin Roof Software, LLC( $3.7 million). The eight follow-on investments were made in U.S. Spray Drying Holding Company, Initials, Inc. Turf Products, LLC, Custom Alloy Corporation, MVC Automotive Group GmbH, RuMe, Inc., Trientis GmbHand Security Holdings B.V.
- The weighted average yields on the fourth quarter new originations was 13.36% and the leverage at the time of underwriting was under 3.0X.1
- During fiscal 2018, the Company acquired approximately 2.3 million shares of its common stock at
$10.90per share via a modified “Dutch Auction” Tender Offer at an aggregate cost of $25 million. Also, during fiscal 2018, the Company made open market repurchases of its shares totaling $5.9 millionat an average cost of $9.45per share, including commissions. The Company plans to continue to repurchase shares to complete the $10 millionshare repurchase program announced in September 2018.
• The shares repurchased, including those repurchased in the “Dutch Auction” Tender Offer during fiscal 2018, resulted in approximately
$.37of NAV accretion during the year.
Since implementing its dividend policy in July of 2005, MVC has paid fifty-five consecutive quarterly dividends, which have increased over time. Through
The Company continues to make yielding investments to help support and ultimately seek to grow its distributions to shareholders.
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,including with respect to the continuation of share repurchases by the Company as currently intended. 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: the Company's ability to continue to repurchase shares and to complete the
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
1 Leverage at the time of underwriting was based on adjusted EBITDA and may have changed from the time of underwriting. The entire loan portfolio generated by the Yielding team since Fiscal 2015 remains at under 4X as of the most recent valuation date for that portion of the portfolio.
2 Based upon share repurchases settled as of
Source: MVC Capital, Inc.