MVC Capital Announces Second Quarter 2019 Results
The Company reported total operating income of
The Company earned interest income of
Key Financial Metrics
|(Unaudited)($ in thousands, except per share data)||Q2 2019||Q1 2019||Q4 2018||Q3 2018||Q2 2018|
|Total operating income||8,593||6,441||5,888||6,151||5,440|
|Portfolio fees - asset management||76||96||122||112||148|
|Management fee - asset management||69||71||81||70||66|
|Interest, fees and other borrowing costs||2,283||2,484||2,238||2,403||2,981|
|Loss on extinguishment of debt||-||-||-||-||-|
|Net Incentive compensation||-||-||-||(1,316||)||(1,012||)|
|Total waiver by adviser||(635||)||(604||)||(598||)||(595||)||(599||)|
|Net operating income (loss) before net realized and unrealized gains||4,219||1,447||1,705||2,980||1,563|
|Net (decrease) increase in net assets resulting from operations||15,964||(3,053||)||(2,220||)||(5,870||)||(3,393||)|
|Net (decrease) increase in net assets resulting from operations per share||0.90||(0.17||)||(0.10||)||(0.32||)||(0.18||)|
|Net asset value per share||12.99||12.24||12.46||12.62||13.09|
- NAV increased by
$0.75per share to $12.99as of April 30, 2019, compared to $12.24per share as of January 31, 2019.
- Net increase in net assets resulting from operations (bottom line performance) was
$0.90per share for the second quarter of fiscal 2019.
- Total operating income increased to
$8.6 millionfor the quarter ending April 30, 2019, a 58% increase over the same quarter of fiscal 2018. 1
- Net operating income for the quarter increased to
$4.2 millionor $0.24per share, a 170% increase over the same quarter of fiscal 2018. 1
1 Total operating income and net operating income for the second quarter include one-time PIK interest and dividend income of
- Custom’s strong cash flows, new government contracts and improved EBITDA supported the conversion from equity to debt and positions MVC’s investment higher in the capital structure in a secured position while also providing a stronger overall yield, consistent with the Company’s strategy.
- The current interest rate on the
$38.6 millionof loans is 15% and the loans mature on April 30, 2022.
- The transaction resulted in a realized gain of approximately
$3.2 million, in addition to receiving one-time PIK interest and dividends of $2.3 million.
- In addition, on
April 30, 2019, MVC provided Custom with a $3.0 millionline of credit at a 15% interest rate with a maturity date of April 30, 2020. There was no amount outstanding on the line of credit as of April 30, 2019.
• As of
• During the quarter, the Company made no new investments and three follow-on debt investments into
• During the quarter, RuMe made a principal payment on its revolver of
Assuming no major repayments in the portfolio and no impairments or unforeseen events, the yielding investments are anticipated to generate net operating income for the quarter ending
Since implementing its dividend policy in July of 2005, the Company has paid fifty-six consecutive quarterly dividends. Through
About MVC Capital, Inc.
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 restructured Custom Alloy investment will perform and generate increased yield for
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.