BETHESDA, Md., May 4 /PRNewswire-FirstCall/ -- American Capital,
Ltd. (“ACAS” or the “Company”) (Nasdaq: ACAS) announced net
operating income (“NOI”) for the quarter ended March 31, 2010 of $49
million, or $0.17 per diluted
share. Net earnings (loss) less appreciation and
(depreciation) (“Net Realized Loss”) for the quarter was
$(77) million, or $(0.27) per diluted share. For the quarter
ended March 31, 2010, the Company
reported net earnings of $187
million, or $0.65 per diluted
share.
Q1 2010 FINANCIAL SUMMARY
- $49 million NOI
- $357 million net unrealized
appreciation of portfolio investments
- $(107) million net realized loss
on portfolio investments
- $187 million net earnings
- $734 million improvement over Q1
2009
- $163 million of cash proceeds
from realizations
- $8.98 net asset value (“NAV”) per
share
- $0.69 per share, or 8%,
improvement over Q4 2009 NAV per share of $8.29
- $8.31 pro forma NAV per share as
adjusted for April 2010 $295 million equity offering
- $820 million of unrestricted cash
and cash equivalents as of March 31,
2010
- $1.2 billion of unrestricted cash
and cash equivalents as of April 30,
2010
“We’ve certainly seen progress in this past year in the economy,
the capital markets and our performance,” said Malon Wilkus, Chairman and Chief Executive
Officer. “We believe the economic recovery is well underway
and that’s reflected in the performance of our investments. We have
now experienced three consecutive quarters of net unrealized
appreciation of our portfolio investments after two years of net
unrealized depreciation. We are optimistic that if the
economy and capital markets continue to improve, we should see the
improvement reflected in our asset valuations and net asset
value.”
NET OPERATING INCOME
NOI decreased to $49 million, or
$0.17 per diluted share, for the
quarter ended March 31, 2010 compared
to $64 million, or $0.31 per diluted share, for the comparable
quarter in 2009.
NET REALIZED LOSS
Net Realized Loss increased to $(77)
million, or $(0.27) per
diluted share, for the quarter ended March
31, 2010 compared to $(55)
million, or $(0.27) per
diluted share, for the comparable quarter in 2009.
NET EARNINGS (LOSS)
Net earnings (loss) improved to $187
million, or $0.65 per diluted
share, for the quarter ended March 31,
2010 compared to $(547)
million, or $(2.65) per
diluted share, for the comparable quarter in 2009.
PORTFOLIO VALUATION
For the quarter ended March 31,
2010, net unrealized appreciation of investments totaled
$264 million. The primary
components of the net unrealized appreciation were:
- $50 million of appreciation on
American Capital’s investment in European Capital Limited primarily
due to appreciation in the NAV of European Capital Limited offset
by $15 million of foreign currency
net depreciation on the investment;
- The equity investment in European Capital is valued at
$0.3 billion compared to European
Capital’s NAV of approximately $0.8
billion.
- $111 million of net appreciation
of American Capital’s private finance portfolio primarily a result
of improved portfolio company performance and improved multiples;
and
- $103 million of reversals of
prior unrealized depreciation associated with net realized losses
on portfolio investments.
As of March 31, 2010, NAV per
share was $8.98, an increase of
$0.69 per share from a NAV per share
of $8.29 as of December 31, 2009.
“In April, we raised $295 million
of our equity at an approximately 5% discount to our closing price
from institutions that have significant experience investing in
financial institutions. We will put this new capital to work
investing in new and existing portfolio companies, debt repayment
and general corporate purposes,” said John
Erickson, Chief Financial Officer. “This is a strong
vote of confidence in our ability to grow shareholder value.
This new capital plus asset appreciation, together with
additional liquidity events has increased our cash balance to
$1.2 billion, improved our asset
coverage ratio and strengthened our balance sheet.”
PORTFOLIO LIQUIDITY AND PERFORMANCE
In the first quarter of 2010, $163
million of cash proceeds were received from realizations of
portfolio investments and exits, which were 3.7% lower than the
prior quarter’s valuations of the investments. There was
$84 million in new committed
investments during the quarter. The weighted average
effective interest rate on the Company’s private finance debt
investments as of March 31, 2010 was
10.3%, 40 basis points higher than as of December 31, 2009. Unrestricted cash and
cash equivalents totaled $820 million
as of March 31, 2010 and $1.2 billion as of April
30, 2010.
As of March 31, 2010, loans with a
fair value of $263 million were on
non-accrual representing 7.0% of total loans at fair value,
compared to $290 million fair value
of non-accrual loans representing 7.8% of total loans at fair value
as of December 31, 2009.
AMERICAN CAPITAL, LTD.
CONSOLIDATED BALANCE SHEETS
As of March 31, 2010, December 31, 2009 and March 31, 2009
(in millions, except per share amounts)
Q1 Q4 Q1 2010
2010 2009 Versus Q4 2009
---- ---- --------------
(unaudited) $ %
Assets --- ---
Investments at fair value (cost
of $9,013, $9,158 and $10,707,
respectively) $5,698 $5,575 $123 2%
Cash and cash equivalents 820 835 (15) -2%
Restricted cash and cash equivalents 79 96 (17) -18%
Interest receivable 39 38 1 3%
Derivative agreements at fair value 2 1 1 100%
Other 119 127 (8) -6%
--- --- -- --
Total assets $6,757 $6,672 $85 1%
===== ===== == ==
Liabilities and Shareholders' Equity
Debt $4,026 $4,142 $(116) -3%
Derivative agreements at fair value 109 102 7 7%
Other 96 99 (3) -3%
-- -- -- --
Total liabilities 4,231 4,343 (112) -3%
----- ----- --- --
Commitments and contingencies
Shareholders' equity
Undesignated preferred stock,
$0.01 par value, 5.0 shares
authorized, 0 issued and
outstanding - - - 0%
Common stock, $0.01 par value,
1,000.0 shares authorized,
292.9, 292.9 and 225.8 issued
and 281.3, 280.9 and 215.4
outstanding, respectively 3 3 - 0%
Capital in excess of par value 6,745 6,735 10 0%
(Distributions in excess of)
undistributed net realized
earnings (786) (709) (77) -11%
Net unrealized depreciation of
investments (3,436) (3,700) 264 7%
----- ----- --- --
Total shareholders' equity 2,526 2,329 197 8%
----- ----- --- --
Total liabilities and
shareholders' equity $6,757 $6,672 $85 1%
===== ===== == ==
Net asset value per common share $8.98 $8.29 $0.69 8%
==== ==== ==== ==
Q1 2010 Versus
Q1 2009 Q1 2009
------- -------
(unaudited) $ %
Assets --- ---
Investments at fair value (cost
of $9,013, $9,158 and $10,707,
respectively) $6,839 $(1,141) -17%
Cash and cash equivalents 88 732 832%
Restricted cash and cash equivalents 68 11 16%
Interest receivable 44 (5) -11%
Derivative agreements at fair value 10 (8) -80%
Other 162 (43) -27%
--- --- ---
Total assets $7,211 $(454) -6%
===== ==== ==
Liabilities and Shareholders' Equity
Debt $4,377 $(351) -8%
Derivative agreements at fair value 102 7 7%
Other 78 18 23%
-- -- --
Total liabilities 4,557 (326) -7%
----- --- --
Commitments and contingencies
Shareholders' equity
Undesignated preferred stock,
$0.01 par value, 5.0 shares
authorized, 0 issued and
outstanding - - 0%
Common stock, $0.01 par value,
1,000.0 shares authorized,
292.9, 292.9 and 225.8 issued
and 281.3, 280.9 and 215.4
outstanding, respectively 2 1 50%
Capital in excess of par value 6,591 154 2%
(Distributions in excess of)
undistributed net realized
earnings 21 (807) NM
Net unrealized depreciation of
investments (3,960) 524 13%
----- --- --
Total shareholders' equity 2,654 (128) -5%
----- --- --
Total liabilities and
shareholders' equity $7,211 $(454) -6%
===== === ==
Net asset value per common share $12.32 $(3.34) -27%
===== ==== ===
AMERICAN CAPITAL, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2010 and 2009
(in millions, except per share data)
(unaudited)
Three Months Ended Three Months Ended
March 31, March 31, 2010 Versus 2009
2010 2009 $ %
---- ---- --- ---
OPERATING INCOME
Interest and dividend
income $150 $179 $(29) -16%
Fee income 14 16 (2) -13%
--- --- --- ---
Total operating income 164 195 (31) -16%
--- --- --- ---
OPERATING EXPENSES
Interest 57 52 5 10%
Salaries, benefits and
stock-based compensation 34 53 (19) -36%
General and administrative 24 26 (2) -8%
-- -- -- --
Total operating expenses 115 131 (16) -12%
--- --- --- ---
NET OPERATING INCOME 49 64 (15) -23%
--- --- --- ---
Net gain on extinguishment
of debt - 12 (12) -100%
--- --- --- ----
Net realized loss on
investments
Portfolio company
investments (107) (79) (28) -35%
Foreign currency
transactions (3) (2) (1) -50%
Derivative agreements
and option agreements (16) (50) 34 68%
--- --- --- ---
Total net realized
loss on investments (126) (131) 5 4%
---- ---- --- ---
NET REALIZED LOSS (77) (55) (22) -40%
--- --- --- ---
Net unrealized appreciation
(depreciation) of
investments
Portfolio company
investments 357 (525) 882 NM
Foreign currency
translation (87) (69) (18) -26%
Derivative and option
agreements (6) 102 (108) NM
--- --- --- ---
Total net unrealized
appreciation
(depreciation)
of investments 264 (492) 756 NM
--- ---- --- ---
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS ("NET
EARNINGS (LOSS)") $187 $(547) $734 NM
==== ===== ==== ===
NET OPERATING INCOME PER
COMMON SHARE*
Basic $0.17 $0.31 $(0.14) -45%
Diluted $0.17 $0.31 $(0.14) -45%
NET REALIZED LOSS PER
COMMON SHARE*
Basic $(0.27) $(0.27) $- 0%
Diluted $(0.27) $(0.27) $- 0%
NET EARNINGS (LOSS) PER
COMMON SHARE*
Basic $0.66 $(2.65) $3.31 NM
Diluted $0.65 $(2.65) $3.30 NM
WEIGHTED AVERAGE
SHARES OF COMMON
STOCK OUTSTANDING
Basic 283.7 206.6 77.1 37%
Diluted 286.0 206.6 79.4 38%
DIVIDENDS DECLARED
PER COMMON SHARE $- $- $- 0%
NM = Not meaningful.
* May not recalculate due to rounding.
AMERICAN CAPITAL, LTD.
OTHER FINANCIAL INFORMATION
Three Months Ended March 31, 2010, December 31, 2009 and March 31, 2009
(in millions, except per share data)
(Unaudited)
Q1 2010 Versus Q4 2009
----------------------
Q1 2010 Q4 2009 $ %
------- ------- --- ---
Assets Under
Management
American Capital
Assets at Fair
Value(1) $6,757 $6,672 $85 1%
Externally Managed
Assets at Fair
Value(2) 6,967 5,802 1,165 20%
----- ----- ----- ---
Total $13,724 $12,474 $1,250 10%
======= ======= ====== ===
Capital Resources
Under Management
American Capital
Assets at Fair
Value plus
Available Capital
Resources(1) $6,757 $6,672 $85 1%
Externally Managed
Assets at Fair
Value plus
Available Capital
Resources(2) 7,185 6,020 1,165 19%
----- ----- ----- ---
Total $13,942 $12,692 $1,250 10%
======= ======= ====== ===
New Investments
Senior Debt $- $12 $(12) -100%
Subordinated Debt 81 - 81 100%
Preferred Equity 1 4 (3) -75%
Common Equity 2 7 (5) -71%
--- --- --- ---
Total $84 $23 $61 265%
=== === === ===
Add-on Financing
for Working Capital
in Distressed
Situations $8 $17 $(9) -53%
Add-on Financing
for Acquisitions - 3 (3) -100%
Add-on Financing
for Growth and
Working Capital 1 2 (1) -50%
Add-on Financing
for
Recapitalizations 75 1 74 NM
--- --- --- ---
Total $84 $23 $61 265%
=== === === ===
Realizations
Principal
Prepayments $90 $88 $2 2%
Loan Syndications
and Sales 15 303 (288) -95%
Scheduled Principal
Amortization 7 12 (5) -42%
Payment of Accrued
Payment-in-kind
Notes and Dividends
and Accreted Loan
Discounts 2 16 (14) -88%
Sale of Equity
Investments 49 57 (8) -14%
--- --- --- ---
Total $163 $476 $(313) -66%
==== ==== ===== ===
Appreciation,
Depreciation, Gain
and Loss
Gross Realized Gain $8 $3 $5 167%
Gross Realized Loss (115) (285) 170 60%
---- ---- --- ---
Portfolio Net
Realized Loss (107) (282) 175 62%
Foreign Currency (3) (1) (2) -200%
Derivative and
Option Agreements (16) (19) 3 16%
Net Realized Loss (126) (302) 176 58%
---- ---- --- ---
Gross Unrealized
Appreciation of
Private Finance
Portfolio
Investments 195 163 32 20%
Gross Unrealized
Depreciation of
Private Finance
Portfolio
Investments (84) (141) 57 40%
--- ---- --- ---
Net Unrealized
Appreciation
(Depreciation) of
Private Finance
Portfolio
Investments 111 22 89 405%
Net Unrealized
Appreciation
(Depreciation) of
European Capital
Limited Investment 50 102 (52) -51%
Net Unrealized
Appreciation of
European Capital
Limited Foreign
Currency 69 22 47 214%
Net Unrealized
Depreciation of
American Capital
Agency Corp. (2) (5) 3 60%
Net Unrealized
Appreciation
(Depreciation) of
American Capital,
LLC 26 10 16 160%
Net Unrealized
Depreciation of
Structured Products - (25) 25 100%
Reversal of Prior
Period Net
Unrealized
Depreciation Upon
Realization 103 284 (181) -64%
--- --- ---- ---
Net Unrealized
Appreciation
(Depreciation) of
Portfolio
Investments 357 410 (53) -13%
Foreign Currency
Translation (87) (26) (61) -235%
Derivative
Agreements and
Other (6) 6 (12) NM
Reversal of Prior
Period Net
Unrealized
Depreciation on
Option Agreements - - - 0%
--- --- --- ---
Net Unrealized
Appreciation
(Depreciation) of
Investments 264 390 (126) -32%
--- --- ---- ---
Net Gains, Losses,
Appreciation and
Depreciation $138 $88 $50 57%
==== === === ===
Other Financial
Data
NAV per Share $8.98 $8.29 $0.69 8%
Debt at Cost $4,026 $4,142 $(116) -3%
Debt at Fair Value $3,955 $3,929 $26 1%
Market
Capitalization $1,429 $685 $744 109%
Total Enterprise
Value(3) $4,635 $3,992 $643 16%
Credit Quality
Weighted Average
Effective Interest
Rate on Private
Finance Debt
Investments at
Period End 10.3% 9.9% 0.4% 4%
Loans on Non-
Accrual at Cost $671 $811 $(140) -17%
Loans on Non-
Accrual at Fair
Value $263 $290 $(27) -9%
Non-Accrual Loans
at Cost as a
Percentage of Total
Loans 15.4% 18.1%
Non-Accrual Loans
at Fair Value as a
Percentage of Total
Loans 7.0% 7.8%
Past Due Loans at
Cost $47 $88 $(41) -47%
Debt to Equity
Conversions at Cost $77 $54 $23 43%
Return on Equity
LTM Net Operating
Income Return on
Average Equity at
Cost 1.9% 2.1%
LTM Realized (Loss)
Earnings Return on
Average Equity at
Cost -11.3% -10.7%
LTM Net Loss Return
on Average Equity -7.6% -37.3%
Current Quarter Net
Operating Income
Return on Average
Equity at Cost
Annualized 3.2% 1.2%
Current Quarter
Realized Loss
Return on Average
Equity at Cost
Annualized -5.1% -18.4%
Current Quarter
Earnings Return
(Loss) on Average
Equity Annualized 30.7% 18.9%
Q1 2010 Versus Q1 2009
----------------------
Q1 2009 $ %
------- --- ---
Assets Under Management
American Capital Assets at
Fair Value(1) $7,211 $(454) -6%
Externally Managed Assets
at Fair Value(2) 3,659 3,308 90%
----- ----- ---
Total $10,870 $2,854 26%
======= ====== ===
Capital Resources Under
Management
American Capital Assets at
Fair Value plus Available
Capital Resources(1) $7,234 $(477) -7%
Externally Managed Assets
at Fair Value plus
Available Capital
Resources(2) 3,884 3,301 85%
----- ----- ---
Total $11,118 $2,824 25%
======= ====== ===
New Investments
Senior Debt $27 $(27) -100%
Subordinated Debt 5 76 1520%
Preferred Equity 8 (7) -88%
Common Equity - 2 100%
--- --- ---
Total $40 $44 110%
=== === ===
Add-on Financing for
Working Capital in
Distressed Situations $25 $(17) -68%
Add-on Financing for
Acquisitions - - 0%
Add-on Financing for
Growth and Working Capital - 1 100%
Add-on Financing for
Recapitalizations 15 60 400%
--- --- ---
Total $40 $44 110%
=== === ===
Realizations
Principal Prepayments $42 $48 114%
Loan Syndications and Sales 8 7 88%
Scheduled Principal
Amortization 10 (3) -30%
Payment of Accrued Payment-
in-kind Notes and
Dividends and Accreted
Loan Discounts 4 (2) -50%
Sale of Equity Investments 15 34 227%
--- --- ---
Total $79 $84 106%
=== === ===
Appreciation, Depreciation,
Gain and Loss
Gross Realized Gain $8 $- 0%
Gross Realized Loss (87) (28) -32%
--- --- ---
Portfolio Net Realized Loss (79) (28) -35%
Foreign Currency (2) (1) -50%
Derivative and Option
Agreements (50) 34 68%
--- --- ---
Net Realized Loss (131) 5 4%
---- --- ---
Gross Unrealized
Appreciation of Private
Finance Portfolio
Investments 33 162 491%
Gross Unrealized
Depreciation of Private
Finance Portfolio
Investments (453) 369 81%
---- --- ---
Net Unrealized Appreciation
(Depreciation) of Private
Finance Portfolio
Investments (420) 531 NM
Net Unrealized Appreciation
(Depreciation) of European
Capital Limited Investment (13) 63 NM
Net Unrealized Appreciation
of European Capital Limited
Foreign Currency 56 13 23%
Net Unrealized Depreciation
of American Capital Agency
Corp. (18) 16 89%
Net Unrealized Appreciation
(Depreciation) of American
Capital, LLC (162) 188 NM
Net Unrealized Depreciation
of Structured Products (46) 46 100%
Reversal of Prior Period
Net Unrealized
Depreciation Upon
Realization 78 25 32%
--- --- ---
Net Unrealized Appreciation
(Depreciation) of
Portfolio Investments (525) 882 NM
Foreign Currency
Translation (69) (18) -26%
Derivative Agreements and
Other 53 (59) NM
Reversal of Prior Period
Net Unrealized
Depreciation on Option
Agreements 49 (49) -100%
Net Unrealized Appreciation
(Depreciation) of
Investments (492) 756 NM
---- --- ---
Net Gains, Losses,
Appreciation and
Depreciation $(623) $761 NM
===== ==== ===
Other Financial Data
NAV per Share $12.32 $(3.34) -27%
Debt at Cost $4,377 $(351) -8%
Debt at Fair Value $2,722 $1,233 45%
Market Capitalization $403 $1,026 255%
Total Enterprise Value(3) $4,692 $(57) -1%
Credit Quality
Weighted Average Effective
Interest Rate on Private
Finance Debt Investments
at Period End 9.5% 0.8% 8%
Loans on Non-Accrual at
Cost $1,061 $(390) -37%
Loans on Non-Accrual at
Fair Value $214 $49 23%
Non-Accrual Loans at Cost
as a Percentage of Total
Loans 17.1%
Non-Accrual Loans at Fair
Value as a Percentage of
Total Loans 4.4%
Past Due Loans at Cost $36 $11 31%
Debt to Equity Conversions
at Cost $35 $42 120%
Return on Equity
LTM Net Operating Income
Return on Average Equity
at Cost 6.1%
LTM Realized (Loss)
Earnings Return on Average
Equity at Cost 4.3%
LTM Net Loss Return on
Average Equity -64.2%
Current Quarter Net
Operating Income Return on
Average Equity at Cost
Annualized 3.9%
Current Quarter Realized
Loss Return on Average
Equity at Cost Annualized -3.4%
Current Quarter Earnings
Return (Loss) on Average
Equity Annualized -75.4%
NM = Not meaningful
(1) Includes American Capital's investment in its externally managed
funds.
(2) Includes American Capital Agency Corp., American Capital Equity I,
American Capital Equity II, ACAS CLO-1 and ACAS CRE CDO 2007-1.
(3) Enterprise value is calculated as debt at cost plus market
capitalization less cash and cash equivalents on hand.
Static Pool (1)
Portfolio Statistics ---------------------------------------
($ in millions, unaudited) Pre-2001 2001 2002 2003 2004
------------------------- -------- ---- ---- ---- ----
IRR -Fair Value -All
Investments(2) 7.9% 18.1% 7.9% 20.9% 13.2%
IRR -Fair Value -Equity
Investments Only(2)(3)(4) 5.8% 46.9% 11.4% 28.7% 27.6%
IRR -Exited Investments(5) 8.6% 20.2% 9.1% 23.5% 17.0%
Original Investments and
Commitments $1,065 $376 $962 $1,434 $2,266
Total Exits and
Prepayments of Original
Investments and Commitments $998 $353 $757 $1,083 $1,830
Total Interest, Dividends
and Fees Collected $386 $142 $307 $365 $540
Total Net Realized (Loss)
Gain on Investments $(128) $(4) $(90) $142 $29
Current Cost of Investments $76 $23 $196 $331 $471
Current Fair Value of Investments $20 $2 $136 $418 $351
Current Fair Value of
Investments as a % of
Total Investments at Fair Value 0.4% 0.0% 2.4% 7.3% 6.2%
Net Unrealized Appreciation
(Depreciation) $(56) $(21) $(60) $87 $(120)
Non-Accruing Loans at Cost $18 $14 $27 $- $39
Non-Accruing Loans at Fair Value $20 $2 $20 $- $11
Equity Interest at Fair Value(3) $- $- $1 $191 $73
Debt to EBITDA(6)(7)(8) 7.0 NM 8.1 4.5 6.2
Interest Coverage(6)(8) 1.9 NM 0.9 2.7 2.1
Debt Service Coverage(6)(8) 1.9 NM 0.8 2.5 1.5
Average Age of Companies(8) 37 yrs 25 yrs 50 yrs 40 yrs 45 yrs
Diluted Ownership Percentage(3) 64% 86% 39% 52% 45%
Average Sales(8)(9) $46 $7 $46 $187 $95
Average EBITDA(8)(10) $4 $- $9 $36 $23
Average EBITDA Margin 8.7% - 19.6% 19.3% 24.2%
Total Sales(8)(9) $70 $267 $169 $1,269 $820
Total EBITDA(8)(10) $6 $4 $18 $179 $167
% of Senior Loans(8)(11) 86% 21% 57% 61% 41%
% of Loans with Lien(8)(11) 100% 68% 100% 100% 91%
Static Pool (1)
Portfolio Statistics -----------------------------
($ in millions, unaudited) 2005 2006 2007 2008
------------------------- ---- ---- ---- ----
IRR - Fair Value - All Investments(2) 2.9% 7.2% -10.5% -2.5%
IRR -Fair Value -Equity Investments
Only(2)(3)(4) -8.2% 12.7% -16.5% -9.6%
IRR - Exited Investments(5) 23.9% 9.7% -3.3% -74.9%
Original Investments and Commitments $4,636 $5,179 $7,328 $1,021
Total Exits and Prepayments of
Original Investments and Commitments $2,096 $3,277 $3,151 $55
Total Interest, Dividends and Fees
Collected $696 $785 $815 $154
Total Net Realized (Loss) Gain on
Investments $293 $(92) $(377) $(50)
Current Cost of Investments $2,326 $1,570 $3,221 $799
Current Fair Value of Investments $1,224 $1,249 $1,691 $607
Current Fair Value of Investments as
a % of Total Investments at Fair
Value 21.5% 21.9% 29.7% 10.6%
Net Unrealized Appreciation
(Depreciation) $(1,102) $(321) $(1,530) $(192)
Non-Accruing Loans at Cost $99 $136 $334 $4
Non-Accruing Loans at Fair Value $78 $58 $70 $4
Equity Interest at Fair Value(3) $554 $422 $394 $138
Debt to EBITDA(6)(7)(8) 4.6 5.3 6.9 6.3
Interest Coverage(6)(8) 2.4 2.5 2.2 1.4
Debt Service Coverage(6)(8) 1.6 2.0 1.9 1.2
Average Age of Companies(8) 29 yrs 31 yrs 28 yrs 25 yrs
Diluted Ownership Percentage(3) 54% 44% 44% 35%
Average Sales(8)(9) $122 $132 $234 $98
Average EBITDA(8)(10) $24 $36 $40 $28
Average EBITDA Margin 19.7% 27.3% 17.1% 28.6%
Total Sales(8)(9) $1,954 $5,854 $8,107 $1,190
Total EBITDA(8)(10) $323 $896 $1,538 $234
% of Senior Loans(8)(11) 38% 37% 62% 26%
% of Loans with Lien(8)(11) 89% 93% 93% 61%
Static Pool (1)
---------------------------------------------
Portfolio Statistics Pre-2001 - 2010 2005 - 2010
($ in millions, unaudited) 2009 2010 Aggregate Aggregate
------------------------- ---- ---- --------- ---------
IRR - Fair Value - All
Investments(2) - - 4.5% -0.9%
IRR - Fair Value -
Equity Investments
Only(2)(3)(4) - - 2.5% -5.0%
IRR -Exited Investments(5) - - 13.0% 11.5%
Original Investments and
Commitments $- $- $24,267 $18,164
Total Exits and
Prepayments of Original
Investments and
Commitments $- $- $13,600 $8,579
Total Interest,
Dividends and Fees
Collected $- $- $4,190 $2,450
Total Net Realized
(Loss) Gain on Investments $- $- $(277) $(226)
Current Cost of Investments $- $- $9,013 $7,916
Current Fair Value of
Investments $- $- $5,698 $4,771
Current Fair Value of
Investments as a % of
Total Investments at
Fair Value - - 100.0% 83.7%
Net Unrealized
Appreciation
(Depreciation) $- $- $(3,315) $(3,145)
Non-Accruing Loans at Cost $- $- $671 $573
Non-Accruing Loans at
Fair Value $- $- $263 $210
Equity Interest at Fair
Value(3) $- $- $1,773 $1,508
Debt to EBITDA(6)(7)(8) - - 5.9 5.9
Interest Coverage(6)(8) - - 2.2 2.2
Debt Service Coverage(6)(8) - - 1.8 1.8
Average Age of Companies(8) - - 31 yrs 29 yrs
Diluted Ownership
Percentage(3) - - 46% 46%
Average Sales(8)(9) $- $- $159 $166
Average EBITDA(8)(10) $- $- $33 $34
Average EBITDA Margin - - 20.8% 20.5%
Total Sales(8)(9) $- $- $19,700 $17,105
Total EBITDA(8)(10) $- $- $3,365 $2,991
% of Senior Loans(8)(11) - - 47% 46%
% of Loans with Lien(8)(11) - - 89% 87%
(1) Static pool classification is based on the year the initial
investment was made. Subsequent add-on investments are included in
the static pool year of the original investment.
(2) Assumes investments are exited at current fair value.
(3) Excludes investments in structured products.
(4) Excludes equity investments that are the result of conversions of
debt and warrants received with the issuance of debt.
(5) Includes exited securities of existing portfolio companies.
(6) These amounts do not include investments in which we own only equity.
(7) For portfolio companies with a nominal EBITDA amount, the portfolio
company’s maximum debt leverage is limited to 15 times EBITDA.
(8) Excludes investments in structured products, managed funds and
American Capital, LLC.
(9) Sales of the most recent twelve months, or when appropriate, the
forecasted twelve months.
(10) EBITDA of the most recent twelve months, or when appropriate, the
forecasted twelve months.
(11) As a percentage of our total debt investments.
SHAREHOLDER CALL
American Capital invites shareholders, analysts and interested
parties to attend the shareholder call on May 5, 2010 at 11:00 am
ET. The shareholder call can be accessed through a
live webcast, free of charge, at www.AmericanCapital.com or by
dialing (877) 569-8701 (U.S. domestic) or +1 (574) 941-7382
(international). Please provide the operator with the
conference ID number 68310346. If you do not plan on asking a
question on the call and have access to the internet, please take
advantage of the webcast.
A slide presentation will accompany the shareholder call and
will be available at www.AmericanCapital.com in advance of the
shareholder call. Select the Q1 2010 Earnings Presentation
link to download and print the presentation in advance of the
shareholder call.
An archived audio replay of the shareholder call combined with
the slide presentation will be made available on our website after
the call. In addition, there will be a phone recording
available from 4:00 pm ET
May 5, 2010 until 11:59 pm ET May 19,
2010. If you are interested in hearing the recording
of the presentation, please dial (800) 642-1687 (U.S. domestic) or
+1 (706) 645-9291 (international). The access code for both
domestic and international callers is 68310346.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and
global asset manager. American Capital, both directly and
through its asset management business, originates, underwrites and
manages investments in middle market private equity, leveraged
finance, real estate and structured products. Founded in
1986, American Capital currently has $13.9
billion in capital resources under management and eight
offices in the U.S., Europe and
Asia. For further
information, please refer to www.AmericanCapital.com.
ADDITIONAL INFORMATION
Persons considering an investment in American Capital should
consider the investment objectives, risks and charges and expenses
of the Company carefully before investing. Such information and
other information about the Company is available in the Company’s
annual report on Form 10-K, quarterly reports on Form 10-Q and in
the prospectuses the Company issues from time to time in connection
with its offering of securities. Such materials are filed
with the Securities and Exchange Commission (“SEC”) and copies are
available on the SEC’s website, www.sec.gov. Prospective
investors should read such materials carefully before investing.
Performance data quoted above represents past performance of
American Capital. Past performance does not guarantee future
results and the investment return and principal value of an
investment in American Capital will likely fluctuate.
Consequently, an investor’s shares, when sold, may be worth
more or less than their original cost. Additionally, American
Capital’s current performance may be lower or higher than the
performance data quoted above.
This press release contains forward-looking statements.
Forward-looking statements are based on estimates,
projections, beliefs and assumptions of management of the Company
at the time of such statements and are not guarantees of future
performance. Forward-looking statements involve risks and
uncertainties in predicting future results and conditions.
Actual results could differ materially from those projected
in these forward-looking statements due to a variety of factors,
including, without limitation, the uncertainties associated with
the timing of transaction closings, changes in interest rates,
availability of transactions, changes in regional, national or
international economic conditions or changes in the conditions of
the industries in which American Capital has made investments.
Certain factors that could cause actual results to differ
materially from those contained in the forward-looking statements
are included in the “Risk Factors” section of the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2009 and the Company’s subsequent
periodic filings. Copies are available on the SEC’s website
at www.sec.gov. Forward-looking statements are made as of the
date of this press release, and are subject to change without
notice. We disclaim any obligation to update or revise any
forward-looking statements based on the occurrence of future
events, the receipt of new information, or otherwise.
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CONTACT:
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Investors - (301) 951-5917
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Media - (301) 968-9400
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SOURCE American Capital Ltd.