BETHESDA, Md., Feb. 14, 2012 /PRNewswire/ -- American Capital,
Ltd. ("American Capital" or the "Company") (Nasdaq: ACAS) announced
net operating income ("NOI") for the quarter and year ended
December 31, 2011 of $229
million, or $0.67 per diluted
share, and $448 million, or
$1.26 per diluted share,
respectively. Net earnings for the quarter and year ended
December 31, 2011 were $594
million, or $1.73 per diluted
share, and $974 million, or $2.74 per diluted share, respectively. The
results reflect a $428 million
deferred tax benefit recognized in the fourth quarter. As of
December 31, 2011, net asset value ("NAV") per share was
$13.87, a 16%, or $1.95 per
share, increase from the September 30,
2011 NAV per share of $11.92 and a 30%, or
$3.16 per share, increase from the
December 31, 2010 NAV per share of $10.71.
Q4 2011 FINANCIAL SUMMARY
- $0.67 NOI per diluted share, or
$229 million
- $162 million increase over Q4
2010
- $0.24 per diluted share, or
$84 million, before deferred tax
benefit
- $0.40 net realized earnings per
diluted share, or $137 million
- $132 million increase over Q4
2010
- $(0.24) per diluted share, or
$(83) million, before deferred tax
benefit
- $1.33 net unrealized appreciation
per diluted share, or $457 million
- $81 million increase over Q4
2010
- $0.72 per diluted share, or
$249 million, before deferred tax
benefit
- $1.73 net earnings per diluted
share, or $594 million
- $213 million increase over Q4
2010
- $0.48 per diluted share, or
$166 million, before deferred tax
benefit
- $1.24 per diluted share, or
$428 million, deferred tax
benefit
- $356 million of cash proceeds
from realizations
- $268 million of debt repaid
- Repurchased 8.4 million shares, totaling $59 million, of American Capital common stock at
an average price of $6.97 per share
- $0.17 accretive to NAV per
share
- $13.87 NAV per share
- $1.95 per share, or 16%, increase
over Q3 2011
2011 FINANCIAL SUMMARY
- $1.26 NOI per diluted share, or
$448 million
- $244 million increase over
2010
- $0.85 per diluted share, or
$303 million, before deferred tax
benefit
- $0.39 net realized earnings per
diluted share, or $138 million
- $510 million improvement over
2010
- $(0.23) per diluted share, or
$(82) million, before deferred tax
benefit
- $2.35 net unrealized appreciation
per diluted share, or $836
million
- $534 million decrease from
2010
- $1.77 per diluted share, or
$628 million, before deferred tax
benefit
- $2.74 net earnings per diluted
share, or $974 million
- 23% annual return on average equity
- $24 million decrease from
2010
- $1.54 per diluted share, or
$546 million, before deferred tax
benefit
- $1,066 million of cash proceeds
from realizations
- $1,008 million of debt
repaid
- Repurchased 17.6 million shares, totaling $134 million, of American Capital common stock at
an average price of $7.61 per
share
- $0.32 accretive to NAV per
share
- $13.87 NAV per share
- $3.16 per share, or 30%, increase
over Q4 2010
"Last year proved to be another volatile year and I am very
pleased with our performance against that backdrop," said
Malon Wilkus, Chairman and Chief
Executive Officer. "Our NAV per share grew by $3.16 for the year to $13.87, delivering a 30% increase since the end
of 2010. We have now experienced net earnings on our
investments in nine of the ten quarters since the low point of our
valuation in the second quarter of 2009, earning $2.2 billion during that period. We believe that
the performance of our portfolio will continue to be positive as
the U.S. economy continues to recover. Based on this
confidence and the current price to book, we believe our shares are
an excellent value and expect to continue our share repurchase
program in 2012. We remain focused on growing shareholder
value by improving our balance sheet, growing our portfolio
companies, originating high quality investment opportunities and
increasing our NAV per share."
PORTFOLIO VALUATION
For the quarter ended December 31, 2011, net
unrealized appreciation, before deferred tax benefit, totaled
$249 million. The primary
components of the net unrealized appreciation were:
- $111 million unrealized
appreciation in American Capital's investment in American Capital,
LLC, its alternative asset management company, due to an increase
in forecasted growth and a reduction in the overall discount
rate;
- $68 million net unrealized
appreciation from American Capital's private finance portfolio,
generally as a result of improved portfolio company performance and
improved multiples;
- $154 million of reversals of net
unrealized depreciation upon realization of portfolio company
investments; and
- $(85) million net unrealized
depreciation in American Capital's investment in European Capital,
primarily due to a decline in European Capital's NAV, a slight
increase in the implied discount to its NAV and a decline in the
value of the Euro.
- The Company's equity investment in European Capital was valued
at $547 million, compared to the
$814 million fair value of European
Capital's NAV at the end of the fourth quarter, which was 67% of
NAV as of December 31, 2011, compared to 69% of NAV at
the end of the prior quarter
"During 2011, we enjoyed $1.1
billion of liquidity in our portfolio at valuations that
were on average 3.6% greater than the previous quarter's valuation,
which allowed us to further strengthen our balance sheet," said
John Erickson, Chief Financial
Officer. "We paid down $1
billion of debt and made over $300
million of new investments while our asset coverage ratio
improved to 465%. Additionally, we used our net cash flow
from operations to repurchase $134
million of our outstanding shares, resulting in $0.32 per share of accretion to our NAV per share
at year-end. During the fourth quarter, we were able to
release a $428 million, or
$1.24 per diluted share, valuation
allowance on our ordinary deferred tax assets, which we expect to
utilize to offset future ordinary taxable income. This will
allow us to retain capital, which would not be possible if we were
a regulated investment company for tax purposes. We remain
focused on maximizing shareholder value."
PORTFOLIO LIQUIDITY AND PERFORMANCE
In the fourth quarter of 2011, $356
million of cash proceeds were received from realizations of
portfolio investments. The Company made $31 million in new committed investments during
the quarter. The weighted average effective interest rate on
the Company's private finance debt investments as of
December 31, 2011 was 10.7%, 40 basis points higher than
the September 30, 2011 rate of 10.3% and 50 basis points
higher than the December 31, 2010 rate of 10.2%.
As of December 31, 2011, loans with a fair value of
$219 million were on non-accrual,
representing 8.7% of total loans at fair value, compared to
$173 million fair value of
non-accrual loans, representing 6.6% of total loans at fair value
as of September 30, 2011.
"We are extremely pleased with the results of our sale of CIBT
Solutions ("CIBT") during the quarter," said Brian Graff, Senior Vice President and Senior
Managing Director. "CIBT is the leading global provider of
expedited travel document processing services such as for visas and
passports. In the second quarter of 2006, we provided
$58 million of debt financing to
support the private equity buyout of CIBT and increased our
investment to $98 million by the
second quarter of 2007 to support several add-on acquisitions.
In 2008, we acquired CIBT from the private equity sponsor by
buying the company through an American Capital One Stop Buyout®.
Four years later, we sold CIBT, receiving $215 million in cash proceeds and recognizing a
$43 million gain with an additional
$15 million of escrow proceeds
expected to be received in the future. Our investments
produced a 15% annualized return on our senior debt, mezzanine debt
and equity. We achieved this while assisting the company in
making 13 add-on acquisitions in the U.S. and Europe and managing through the recession when
the fair value of our investments dropped by as much as 43%.
Our patient approach to our private finance investments
allows us to exit investments when the time is right."
INCOME TAXES
During the second quarter of 2011, the Company became taxable
under Subchapter C of the Internal Revenue Code for its tax year
ended September 30, 2011, which is
applicable to most corporations. As a result, during the
quarter ended June 30, 2011, the
Company recorded a $1.2 billion
deferred tax asset and a corresponding $1.2
billion valuation allowance. A valuation allowance is
required if it is more likely than not that the deferred tax asset
will not be realized. In accordance with GAAP, the Company's
history prior to the fourth quarter of cumulative pre-tax net
losses over the prior three calendar years (2008 - 2010) prevented
the Company from relying on its forecast of future taxable income
to realize the deferred tax asset and therefore required a 100%
valuation allowance on its deferred tax asset.
The Company's pre-tax net earnings of $546 million for the year ended December 31, 2011 provided the Company with
cumulative pre-tax net earnings over the prior three calendar years
(2009 - 2011). As a result, in accordance with GAAP, the
Company was able to rely on its forecast of future ordinary taxable
income and release the valuation allowance on its ordinary deferred
tax assets in the amount of $428
million, or $1.24 per diluted
share for the quarter, which is reflected as a deferred tax benefit
in the Company's consolidated statement of operations for the
quarter and year ended December 31,
2011. As of December 31,
2011, the Company continues to have a full valuation
allowance on its capital deferred tax assets of $841 million.
STOCK REPURCHASE AND DIVIDEND PROGRAM
During the third quarter of 2011, American Capital's Board of
Directors adopted a program that may provide for additional
repurchases of shares or dividend payments through December 31, 2012. Under the program,
American Capital will consider quarterly setting an amount to be
utilized for stock repurchases or dividends. Generally, the
amount may be utilized for repurchases if the price of American
Capital's common stock represents a discount to the NAV of its
shares, and the amount may be utilized for the payment of cash
dividends if the price of American Capital's common stock
represents a premium to the NAV of its shares.
In determining the quarterly amount for repurchases or
dividends, the Company's Board will be guided by the Company's
cumulative net cash provided by operating activities in the prior
quarter since the second quarter of 2011, cumulative repurchases or
dividends, cash on hand, debt service considerations, investment
plans, forecasts of financial liquidity and economic conditions,
operational issues and the then current trading price of American
Capital stock.
The repurchase and dividends program may be suspended,
terminated or modified at any time for any reason. The
program does not obligate American Capital to acquire any specific
number of shares, and all repurchases will be made in accordance
with SEC Rule 10b-18, which sets certain restrictions on the
method, timing, price and volume of stock repurchases. During
the third and fourth quarters of 2011, American Capital made open
market purchases of 17.6 million shares, or $134 million, of American Capital common stock at
an average price of $7.61 per share.
AMERICAN
CAPITAL, LTD.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
As of
December 31, 2011 and 2010
|
|
(in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 Versus
2010
|
|
|
2011
|
|
2010
|
|
$
|
|
%
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Investments at fair value (cost
of $6,739 and $7,698, respectively)
|
$
5,130
|
|
$ 5,475
|
|
$
(345)
|
|
(6)%
|
|
Cash and cash
equivalents
|
204
|
|
269
|
|
(65)
|
|
(24)%
|
|
Restricted cash and cash
equivalents
|
80
|
|
185
|
|
(105)
|
|
(57)%
|
|
Interest receivable
|
24
|
|
37
|
|
(13)
|
|
(35)%
|
|
Deferred tax asset,
net
|
428
|
|
-
|
|
428
|
|
100%
|
|
Derivative agreements at fair
value
|
10
|
|
4
|
|
6
|
|
150%
|
|
Other
|
85
|
|
114
|
|
(29)
|
|
(25)%
|
|
Total assets
|
$
5,961
|
|
$ 6,084
|
|
$
(123)
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
|
|
Debt
|
$
1,251
|
|
$
2,259
|
|
$
(1,008)
|
|
(45)%
|
|
Derivative agreements at fair
value
|
99
|
|
106
|
|
(7)
|
|
(7)%
|
|
Other
|
48
|
|
51
|
|
(3)
|
|
(6)%
|
|
Total liabilities
|
1,398
|
|
2,416
|
|
(1,018)
|
|
(42)%
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
Undesignated preferred
stock, $0.01 par value, 5.0 shares authorized, 0 issued and
outstanding
|
-
|
|
-
|
|
-
|
|
-
|
|
Common stock, $0.01 par
value, 1,000.0 shares authorized, 336.4 and 352.7 issued and 329.1
and 342.4 outstanding, respectively
|
3
|
|
3
|
|
-
|
|
-
|
|
Capital in excess of par
value
|
7,053
|
|
7,131
|
|
(78)
|
|
(1)%
|
|
Distributions in excess of net
realized earnings
|
(999)
|
|
(1,136)
|
|
137
|
|
12%
|
|
Net unrealized depreciation of
investments
|
(1,494)
|
|
(2,330)
|
|
836
|
|
36%
|
|
Total shareholders' equity
|
4,563
|
|
3,668
|
|
895
|
|
24%
|
|
Total liabilities and shareholders' equity
|
$
5,961
|
|
$ 6,084
|
|
$
(123)
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
|
NAV per common share
outstanding
|
$
13.87
|
|
$ 10.71
|
|
$
3.16
|
|
30%
|
|
|
|
|
|
|
|
|
|
AMERICAN
CAPITAL, LTD.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
Three Months
and Fiscal Year Ended December 31, 2011 and 2010
|
|
(in
millions, except per share data)
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
Fiscal Year Ended
|
|
|
Three Months Ended
|
|
December
31,
|
|
Fiscal Year Ended
|
|
December
31,
|
|
|
December
31,
|
|
2011 Versus
2010
|
|
December
31,
|
|
2011 Versus
2010
|
|
|
2011
|
|
2010
|
|
$
|
|
%
|
|
2011
|
|
2010
|
|
$
|
|
%
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
$
149
|
|
$
133
|
|
$ 16
|
|
12%
|
|
$
543
|
|
$ 546
|
|
$ (3)
|
|
(1)%
|
|
Fee income
|
11
|
|
10
|
|
1
|
|
10%
|
|
48
|
|
54
|
|
(6)
|
|
(11)%
|
|
Total operating
income
|
160
|
|
143
|
|
17
|
|
12%
|
|
591
|
|
600
|
|
(9)
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
21
|
|
28
|
|
(7)
|
|
(25)%
|
|
90
|
|
177
|
|
(87)
|
|
(49)%
|
|
Salaries, benefits and
stock-based compensation
|
36
|
|
35
|
|
1
|
|
3%
|
|
143
|
|
134
|
|
9
|
|
7%
|
|
General and
administrative
|
19
|
|
13
|
|
6
|
|
46%
|
|
55
|
|
64
|
|
(9)
|
|
(14)%
|
|
Debt refinancing
costs
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
21
|
|
(21)
|
|
(100)%
|
|
Total operating
expenses
|
76
|
|
76
|
|
—
|
|
—
|
|
288
|
|
396
|
|
(108)
|
|
(27)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME BEFORE INCOME
TAXES
|
84
|
|
67
|
|
17
|
|
25%
|
|
303
|
|
204
|
|
99
|
|
49%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax benefit
|
145
|
|
—
|
|
145
|
|
100%
|
|
145
|
|
—
|
|
145
|
|
100%
|
|
NET OPERATING
INCOME
|
229
|
|
67
|
|
162
|
|
242%
|
|
448
|
|
204
|
|
244
|
|
120%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized (loss)
gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio company
investments
|
(154)
|
|
(47)
|
|
(107)
|
|
(228)%
|
|
(335)
|
|
(499)
|
|
164
|
|
33%
|
|
Foreign currency
transactions
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2)
|
|
2
|
|
100%
|
|
Derivative
agreements
|
(13)
|
|
(15)
|
|
2
|
|
13%
|
|
(50)
|
|
(75)
|
|
25
|
|
33%
|
|
Deferred tax
benefit
|
75
|
|
—
|
|
75
|
|
100%
|
|
75
|
|
—
|
|
75
|
|
100%
|
|
Total net realized
loss
|
(92)
|
|
(62)
|
|
(30)
|
|
(48)%
|
|
(310)
|
|
(576)
|
|
266
|
|
46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REALIZED EARNINGS
(LOSS)
|
137
|
|
5
|
|
132
|
|
NM
|
|
138
|
|
(372)
|
|
510
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
appreciation (depreciation)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio company
investments
|
309
|
|
388
|
|
(79)
|
|
(20)%
|
|
646
|
|
1,468
|
|
(822)
|
|
(56)%
|
|
Foreign currency
translation
|
(65)
|
|
(36)
|
|
(29)
|
|
(81)%
|
|
(31)
|
|
(107)
|
|
76
|
|
71%
|
|
Derivative
agreements
|
5
|
|
24
|
|
(19)
|
|
(79)%
|
|
13
|
|
9
|
|
4
|
|
44%
|
|
Deferred tax
benefit
|
208
|
|
—
|
|
208
|
|
100%
|
|
208
|
|
—
|
|
208
|
|
100%
|
|
Total net unrealized
appreciation
|
457
|
|
376
|
|
81
|
|
22%
|
|
836
|
|
1,370
|
|
(534)
|
|
(39)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN NET ASSETS
RESULTING FROM
OPERATIONS ("NET
EARNINGS")
|
$
594
|
|
$
381
|
|
$ 213
|
|
56%
|
|
$
974
|
|
$ 998
|
|
$ (24)
|
|
(2)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING INCOME PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.68
|
|
$
0.19
|
|
$ 0.49
|
|
258%
|
|
$
1.30
|
|
$ 0.63
|
|
$ 0.67
|
|
106%
|
|
Diluted
|
$
0.67
|
|
$
0.19
|
|
$ 0.48
|
|
253%
|
|
$
1.26
|
|
$ 0.62
|
|
$ 0.64
|
|
103%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REALIZED EARNINGS (LOSS) PER
COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.41
|
|
$
0.01
|
|
$ 0.40
|
|
NM
|
|
$
0.40
|
|
$ (1.14)
|
|
$ 1.54
|
|
NM
|
|
Diluted
|
$
0.40
|
|
$
0.01
|
|
$ 0.39
|
|
NM
|
|
$
0.39
|
|
$ (1.12)
|
|
$ 1.51
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
1.76
|
|
$
1.11
|
|
$ 0.65
|
|
59%
|
|
$
2.83
|
|
$ 3.06
|
|
$ (0.23)
|
|
(8)%
|
|
Diluted
|
$
1.73
|
|
$
1.08
|
|
$ 0.65
|
|
60%
|
|
$
2.74
|
|
$ 3.02
|
|
$ (0.28)
|
|
(9)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OF
COMMON STOCK OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
337.1
|
|
344.6
|
|
(7.5)
|
|
(2)%
|
|
343.9
|
|
325.9
|
|
18.0
|
|
6%
|
|
Diluted
|
343.9
|
|
353.1
|
|
(9.2)
|
|
(3)%
|
|
355.3
|
|
330.9
|
|
24.4
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM = Not meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN
CAPITAL, LTD.
|
|
OTHER
FINANCIAL INFORMATION
|
|
Three Months
Ended December 31, 2011 and September 30, 2011 and Fiscal Year
Ended December 31, 2011 and 2010
|
|
(in
millions, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2011
Versus
Q3 2011
|
|
|
|
|
|
2011 Versus
2010
|
|
|
Q4
2011
|
|
Q3
2011
|
|
$
|
|
%
|
|
2011
|
|
2010
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Capital Assets at
Fair Value
|
$
5,961
|
|
$ 5,692
|
|
$
269
|
|
5%
|
|
$ 5,961
|
|
$
6,084
|
|
$
(123)
|
|
(2)%
|
|
Externally Managed Assets
at Fair Value(1)
|
62,168
|
|
50,941
|
|
11,227
|
|
22%
|
|
62,168
|
|
16,561
|
|
45,607
|
|
275%
|
|
Total
|
$
68,129
|
|
$ 56,633
|
|
$ 11,496
|
|
20%
|
|
$ 68,129
|
|
$
22,645
|
|
$ 45,484
|
|
201%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Debt
|
$
14
|
|
$
27
|
|
$
(13)
|
|
(48)%
|
|
$
184
|
|
$
123
|
|
$
61
|
|
50 %
|
|
Mezzanine Debt
|
—
|
|
57
|
|
(57)
|
|
(100)%
|
|
57
|
|
85
|
|
(28)
|
|
(33)%
|
|
Preferred
Equity
|
14
|
|
—
|
|
14
|
|
100%
|
|
15
|
|
24
|
|
(9)
|
|
(38)%
|
|
Common Equity
|
2
|
|
43
|
|
(41)
|
|
(95)%
|
|
59
|
|
2
|
|
57
|
|
NM
|
|
Equity Warrants
|
—
|
|
1
|
|
(1)
|
|
(100)%
|
|
1
|
|
—
|
|
1
|
|
100%
|
|
Structured
Products
|
1
|
|
—
|
|
1
|
|
100%
|
|
1
|
|
—
|
|
1
|
|
100%
|
|
Total
|
$
31
|
|
$
128
|
|
$
(97)
|
|
(76)%
|
|
$
317
|
|
$
234
|
|
$
83
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing for Private
Equity Buyouts
|
$
10
|
|
$
15
|
|
$
(5)
|
|
(33)%
|
|
$
25
|
|
$
—
|
|
$
25
|
|
100 %
|
|
Investments in Managed
Funds
|
—
|
|
40
|
|
(40)
|
|
(100)%
|
|
40
|
|
—
|
|
40
|
|
100%
|
|
American Capital
Buyouts
|
—
|
|
1
|
|
(1)
|
|
(100)%
|
|
1
|
|
—
|
|
1
|
|
100%
|
|
Direct and Other
Investments
|
1
|
|
—
|
|
1
|
|
100%
|
|
15
|
|
35
|
|
(20)
|
|
(57)%
|
|
Add-on Financing for
Growth and Working Capital
|
—
|
|
13
|
|
(13)
|
|
(100)%
|
|
112
|
|
2
|
|
110
|
|
NM
|
|
Add-on Financing for
Working Capital in Distressed Situations
|
14
|
|
2
|
|
12
|
|
600%
|
|
35
|
|
38
|
|
(3)
|
|
(8)%
|
|
Add-on Financing for
Acquisitions
|
—
|
|
57
|
|
(57)
|
|
(100)%
|
|
58
|
|
22
|
|
36
|
|
164%
|
|
Add-on Financing for
Recapitalizations, not Including Distressed Investments
|
2
|
|
—
|
|
2
|
|
100%
|
|
27
|
|
80
|
|
(53)
|
|
(66)%
|
|
Add-on Financing for
Purchase of Debt of a Portfolio Company
|
4
|
|
—
|
|
4
|
|
100%
|
|
4
|
|
57
|
|
(53)
|
|
(93)%
|
|
Total
|
$
31
|
|
$
128
|
|
$
(97)
|
|
(76)%
|
|
$
317
|
|
$
234
|
|
$
83
|
|
35%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realizations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sale of Equity
Investments
|
$
176
|
|
$
127
|
|
$
49
|
|
39%
|
|
$
394
|
|
$
266
|
|
$
128
|
|
48 %
|
|
Principal
Prepayments
|
151
|
|
96
|
|
55
|
|
57%
|
|
510
|
|
874
|
|
(364)
|
|
(42)%
|
|
Payment of Accrued
Payment-in-Kind Notes and Dividends and Accreted Original
Issue
Discounts
|
19
|
|
16
|
|
3
|
|
19%
|
|
108
|
|
77
|
|
31
|
|
40%
|
|
Scheduled Principal
Amortization
|
10
|
|
11
|
|
(1)
|
|
(9)%
|
|
38
|
|
36
|
|
2
|
|
6%
|
|
Loan Syndications and
Sales
|
—
|
|
10
|
|
(10)
|
|
(100)%
|
|
16
|
|
40
|
|
(24)
|
|
(60)%
|
|
Total
|
$
356
|
|
$
260
|
|
$
96
|
|
37%
|
|
$ 1,066
|
|
$
1,293
|
|
$
(227)
|
|
(18)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation, Depreciation, Gain
and Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Realized
Gain
|
$
46
|
|
$
96
|
|
$
(50)
|
|
(52)%
|
|
$
158
|
|
$
54
|
|
$
104
|
|
193 %
|
|
Gross Realized
Loss
|
(200)
|
|
(52)
|
|
(148)
|
|
(285)%
|
|
(493)
|
|
(553)
|
|
60
|
|
11%
|
|
Portfolio Net Realized
(Loss) Gain
|
(154)
|
|
44
|
|
(198)
|
|
NM
|
|
(335)
|
|
(499)
|
|
164
|
|
33%
|
|
Foreign Currency
Transactions
|
—
|
|
(1)
|
|
1
|
|
100%
|
|
—
|
|
(2)
|
|
2
|
|
100%
|
|
Derivative
Agreements
|
(13)
|
|
(10)
|
|
(3)
|
|
(30)%
|
|
(50)
|
|
(75)
|
|
25
|
|
33%
|
|
Deferred Tax
Benefit
|
75
|
|
—
|
|
75
|
|
100%
|
|
75
|
|
—
|
|
75
|
|
100%
|
|
Net Realized (Loss)
Gain
|
(92)
|
|
33
|
|
(125)
|
|
NM
|
|
(310)
|
|
(576)
|
|
266
|
|
46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Unrealized Appreciation of
Private Finance Portfolio Investments
|
147
|
|
82
|
|
65
|
|
79%
|
|
403
|
|
611
|
|
(208)
|
|
(34)%
|
|
Gross Unrealized Depreciation of
Private Finance Portfolio Investments
|
(79)
|
|
(285)
|
|
206
|
|
72%
|
|
(433)
|
|
(289)
|
|
(144)
|
|
(50)%
|
|
Net Unrealized Appreciation
(Depreciation) of Private Finance Portfolio Investments
|
68
|
|
(203)
|
|
271
|
|
NM
|
|
(30)
|
|
322
|
|
(352)
|
|
NM
|
|
Unrealized (Depreciation)
Appreciation of European Capital Investment
|
(56)
|
|
(248)
|
|
192
|
|
77%
|
|
(34)
|
|
371
|
|
(405)
|
|
NM
|
|
Unrealized Appreciation of
European Capital Foreign Currency Translation
|
33
|
|
25
|
|
8
|
|
32%
|
|
3
|
|
97
|
|
(94)
|
|
(97)%
|
|
Unrealized Appreciation
(Depreciation) of American Capital, LLC
|
111
|
|
(47)
|
|
158
|
|
NM
|
|
280
|
|
111
|
|
169
|
|
152%
|
|
Net Unrealized (Depreciation)
Appreciation of Structured Products
|
(1)
|
|
6
|
|
(7)
|
|
NM
|
|
52
|
|
50
|
|
2
|
|
4%
|
|
Reversal of Prior Period Net
Unrealized Depreciation (Appreciation) Upon Realization
|
154
|
|
(10)
|
|
164
|
|
NM
|
|
375
|
|
517
|
|
(142)
|
|
(27)%
|
|
Net Unrealized (Depreciation)
Appreciation of Portfolio Company Investments
|
309
|
|
(477)
|
|
786
|
|
NM
|
|
646
|
|
1,468
|
|
(822)
|
|
(56)%
|
|
Foreign Currency
Translation - European Capital
|
(62)
|
|
(77)
|
|
15
|
|
19%
|
|
(29)
|
|
(104)
|
|
75
|
|
72%
|
|
Foreign Currency
Translation - Other
|
(3)
|
|
(3)
|
|
—
|
|
—
|
|
(2)
|
|
(3)
|
|
1
|
|
33%
|
|
Derivative
Agreements
|
5
|
|
(5)
|
|
10
|
|
NM
|
|
13
|
|
9
|
|
4
|
|
44%
|
|
Net Unrealized
Appreciation (Depreciation) of Investments
|
249
|
|
(562)
|
|
811
|
|
NM
|
|
628
|
|
1,370
|
|
(742)
|
|
(54)%
|
|
Deferred Tax
Benefit
|
208
|
|
—
|
|
208
|
|
100%
|
|
208
|
|
—
|
|
208
|
|
100%
|
|
Net Gains, Losses,
Appreciation and Depreciation
|
$
365
|
|
$
(529)
|
|
$
894
|
|
NM
|
|
$
526
|
|
$
794
|
|
$
(268)
|
|
(34)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV per Share
|
$
13.87
|
|
$ 11.92
|
|
$
1.95
|
|
16 %
|
|
$ 13.87
|
|
$
10.71
|
|
$
3.16
|
|
30 %
|
|
Debt at Cost
|
$
1,251
|
|
$ 1,519
|
|
$
(268)
|
|
(18)%
|
|
$ 1,251
|
|
$
2,259
|
|
$
(1,008)
|
|
(45)%
|
|
Debt at Fair
Value
|
$
1,210
|
|
$ 1,443
|
|
$
(233)
|
|
(16)%
|
|
$ 1,210
|
|
$
2,208
|
|
$
(998)
|
|
(45)%
|
|
Market
Capitalization
|
$
2,215
|
|
$ 2,299
|
|
$
(84)
|
|
(14)%
|
|
$ 2,215
|
|
$
2,588
|
|
$
(373)
|
|
(14)%
|
|
Total Enterprise
Value(2)
|
$
3,262
|
|
$ 3,631
|
|
$
(369)
|
|
(10)%
|
|
$ 3,262
|
|
$
4,579
|
|
$
(1,317)
|
|
(29)%
|
|
Asset Coverage
Ratio
|
465 %
|
|
364 %
|
|
|
|
|
|
465 %
|
|
262 %
|
|
|
|
|
|
Debt to Equity
Ratio
|
0.3x
|
|
0.4x
|
|
|
|
|
|
0.3x
|
|
0.6x
|
|
|
|
|
|
Credit Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Effective
Interest Rate on Private Finance Debt Investments at Period
End
|
10.7 %
|
|
10.3 %
|
|
|
|
|
|
10.7 %
|
|
10.2 %
|
|
|
|
|
|
Loans on Non-Accrual at
Cost
|
$
419
|
|
$
569
|
|
$
(150)
|
|
(26)%
|
|
$
419
|
|
$
702
|
|
$
(283)
|
|
(40)%
|
|
Loans on Non-Accrual at
Fair Value
|
$
219
|
|
$
173
|
|
$
46
|
|
27 %
|
|
$
219
|
|
$
239
|
|
$
(20)
|
|
(8)%
|
|
Non-Accrual Loans at Cost
as a Percentage of Total Loans at Cost
|
15.3%
|
|
18.6%
|
|
|
|
|
|
15.3%
|
|
19.6%
|
|
|
|
|
|
Non-Accrual Loans at Fair
Value as a Percentage of Total Loans at Fair Value
|
8.7%
|
|
6.6%
|
|
|
|
|
|
8.7%
|
|
7.8%
|
|
|
|
|
|
Past Due Loans at
Cost
|
$
22
|
|
$
3
|
|
$
19
|
|
633 %
|
|
$
22
|
|
$
58
|
|
$
(36)
|
|
(62)%
|
|
Debt to Equity Conversions
at Cost
|
$
46
|
|
$
—
|
|
$
46
|
|
100 %
|
|
$
153
|
|
$
86
|
|
$
67
|
|
78 %
|
|
Return on Average
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTM Net
Operating Income Return on Average Equity at Cost
|
7.5%
|
|
4.8%
|
|
|
|
|
|
7.5%
|
|
3.4%
|
|
|
|
|
|
LTM Net
Realized Earnings (Loss) Return on Average Equity at
Cost
|
2.3%
|
|
0.1%
|
|
|
|
|
|
2.3%
|
|
(6.2)%
|
|
|
|
|
|
LTM Net
Earnings Return on Average Equity at Fair Value
|
23.3%
|
|
19.4%
|
|
|
|
|
|
23.3%
|
|
33.5%
|
|
|
|
|
|
Current
Quarter Annualized Net Operating Income Return on Average Equity at
Cost
|
15.2%
|
|
4.3%
|
|
|
|
|
|
15.2%
|
|
4.5%
|
|
|
|
|
|
Current
Quarter Annualized Net Realized Earnings Return on Average Equity
at Cost
|
9.1%
|
|
6.6%
|
|
|
|
|
|
9.1%
|
|
0.3%
|
|
|
|
|
|
Current
Quarter Annualized Net Earnings (Loss) Return on Average Equity at
Fair Value
|
55.4%
|
|
(43.4)%
|
|
|
|
|
|
55.4%
|
|
44.0%
|
|
|
|
|
|
|
|
|
|
NM = Not meaningful.
|
|
(1) Includes total assets of
American Capital Agency Corp., American Capital Mortgage Investment
Corp., European Capital, American Capital Equity I, American
Capital Equity II and ACAS CLO 2007-1 less American Capital's
investment in the funds.
|
|
(2) Enterprise value is
calculated as debt at cost plus market capitalization less cash and
cash equivalents on hand.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Static Pool
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-2001
- 2011
Static
Pools
Aggregate
|
|
Portfolio
Statistics
($ in millions,
unaudited
Aggregate
|
Pre-2001
|
2001
|
2002
|
2003
|
2004
|
2005
|
2006
|
2007
|
2008
|
2011
|
|
IRR at Fair Value of All
Investments(2)
|
8.4%
|
18.1%
|
8.2%
|
20.3%
|
13.4%
|
10.2%
|
10.2%
|
(6.2)%
|
5.9%
|
3.1%
|
7.4%
|
|
IRR of Exited
Investments(3)
|
9.1%
|
18.3%
|
9.5%
|
23.3%
|
17.1%
|
22.3%
|
10.6%
|
(11.1)%
|
4.7%
|
N/A
|
10.7%
|
|
IRR at Fair Value of
Equity Investments Only(2)(4)(5)
|
7.6%
|
46.4%
|
11.4%
|
27.7%
|
26.3%
|
6.5%
|
14.7%
|
(10.6)%
|
18.0%
|
(17.6)%
|
8.8%
|
|
IRR of Exited Equity
Investments Only(3)(4)(5)
|
10.9%
|
41.0%
|
21.4%
|
36.7%
|
49.0%
|
54.1%
|
18.1%
|
9.3%
|
35.5%
|
N/A
|
28.5%
|
|
IRR at Fair Value of All
One Stop Buyout® Investments(2)
|
2.6%
|
17.1%
|
10.9%
|
18.8%
|
15.7%
|
26.4%
|
12.7%
|
0.7%
|
14.6%
|
—%
|
12.7%
|
|
IRR at Fair Value of
Current One Stop Buyout® Investments(2)
|
16.3%
|
(4.4)%
|
(0.2)%
|
17.3%
|
5.8%
|
19.5%
|
11.6%
|
(2.3)%
|
14.6%
|
—%
|
9.3%
|
|
IRR of Exited One Stop
Buyout® Investments(3)
|
1.3%
|
16.4%
|
14.7%
|
21.9%
|
27.5%
|
30.6%
|
15.3%
|
15.5%
|
14.2%
|
N/A
|
16.5%
|
|
Committed
Investments(7)
|
$1,065
|
$376
|
$964
|
$1,436
|
$2,266
|
$4,755
|
$5,227
|
$7,469
|
$1,039
|
$137
|
$24,734
|
|
Total Exits and
Prepayments of Committed Investments(7)
|
$995
|
$366
|
$836
|
$1,098
|
$1,970
|
$2,517
|
$3,855
|
$4,625
|
$480
|
$—
|
$16,742
|
|
Total Interest, Dividends
and Fees Collected
|
$407
|
$148
|
$345
|
$434
|
$688
|
$1,116
|
$1,205
|
$1,147
|
$327
|
$5
|
$5,822
|
|
Total Net Realized (Loss)
Gain on Investments
|
($137)
|
($22)
|
($99)
|
$142
|
$29
|
$373
|
($132)
|
($1,059)
|
($100)
|
$—
|
($1,005)
|
|
Current Cost of
Investments
|
$77
|
$5
|
$145
|
$335
|
$338
|
$1,967
|
$1,106
|
$2,274
|
$384
|
$108
|
$6,739
|
|
Current Fair Value of
Investments
|
$50
|
$—
|
$94
|
$462
|
$233
|
$1,540
|
$1,037
|
$1,308
|
$304
|
$102
|
$5,130
|
|
Current Fair Value of
Investments as a % of Total Investments at Fair Value
|
1.0%
|
—%
|
1.8%
|
9.0%
|
4.6%
|
30.0%
|
20.2%
|
25.5%
|
5.9%
|
2.0%
|
100.0%
|
|
Net Unrealized
(Depreciation) Appreciation
|
($27)
|
($5)
|
($51)
|
$127
|
($105)
|
($427)
|
($69)
|
($966)
|
($80)
|
($6)
|
($1,609)
|
|
Non-Accruing Loans at
Cost
|
$—
|
$—
|
$18
|
$—
|
$31
|
$59
|
$79
|
$193
|
$39
|
$—
|
$419
|
|
Non-Accruing Loans at Fair
Value
|
$1
|
$—
|
$7
|
$—
|
$5
|
$28
|
$43
|
$111
|
$24
|
$—
|
$219
|
|
Equity Interest at Fair
Value(4)
|
$25
|
$—
|
$8
|
$244
|
$82
|
$1,135
|
$467
|
$306
|
$89
|
$38
|
$2,394
|
|
Debt to Adjusted
EBITDA(8)(9)(10)(11)(14)
|
2.6
|
NM
|
9.3
|
3.2
|
5.8
|
2.9
|
4.5
|
6.0
|
6.0
|
5.8
|
4.7
|
|
Interest
Coverage(10)(11)(14)
|
4.7
|
NM
|
1.8
|
4.5
|
2.4
|
2.2
|
2.7
|
2.0
|
2.2
|
2.3
|
2.6
|
|
Debt Service
Coverage(10)(11)(14)
|
4.2
|
NM
|
1.8
|
3.8
|
1.6
|
0.9
|
2.3
|
1.8
|
1.8
|
2.2
|
2.0
|
|
Average Age of
Companies(11)(14)
|
49 yrs
|
27 yrs
|
35 yrs
|
42 yrs
|
57 yrs
|
19 yrs
|
39 yrs
|
32 yrs
|
20 yrs
|
26 yrs
|
33 yrs
|
|
Diluted Ownership
Percentage(4)(15)
|
61%
|
—%
|
18%
|
55%
|
66%
|
90%
|
47%
|
59%
|
55%
|
22%
|
70%
|
|
Average
Revenue(11)(12)(14)
|
$48
|
$7
|
$49
|
$222
|
$65
|
$133
|
$169
|
$165
|
$95
|
$ 157
|
$151
|
|
Average Adjusted
EBITDA(8)(11)(14)
|
$7
|
$—
|
$11
|
$48
|
$16
|
$41
|
$40
|
$36
|
$21
|
$
41
|
$36
|
|
Total
Revenue(11)(12)
|
$99
|
$256
|
$183
|
$1,416
|
$341
|
$1,273
|
$3,378
|
$4,937
|
$1,555
|
$ 471
|
$13,909
|
|
Total Adjusted
EBITDA(8)(11)
|
$15
|
$7
|
$37
|
$197
|
$57
|
$270
|
$455
|
$863
|
$252
|
$ 137
|
$2,290
|
|
% of Senior
Loans(10)(11)(13)
|
71%
|
100%
|
52%
|
57%
|
37%
|
28%
|
29%
|
52%
|
32%
|
37%
|
42%
|
|
% of Loans with
Lien(10)(11)(13)
|
100%
|
100%
|
100%
|
100%
|
100%
|
88%
|
97%
|
88%
|
69%
|
37%
|
82%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Majority
Owned Portfolio Companies(6)
|
Pre-2001 -
2011
Static Pools
Aggregate
|
|
|
|
|
|
|
|
|
|
|
Total
Revenue(12)
|
$3,142
|
|
|
|
|
|
|
|
|
|
|
Total Gross
Profit(12)
|
$1,537
|
|
|
|
|
|
|
|
|
|
|
Total Adjusted
EBITDA(8)
|
$685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Capital
Expenditures(12)
|
$89
|
|
|
|
|
|
|
|
|
|
|
Total Current ACAS
Investment in MOPC at Fair Value
|
$3,347
|
|
|
|
|
|
|
|
|
|
|
Diluted Ownership
Percentage of ACAS in MOPC(15)
|
67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Cash
|
$177
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
$4,627
|
|
|
|
|
|
|
|
|
|
|
Total Debt
|
$3,369
|
|
|
|
|
|
|
|
|
|
|
Total Third-party Debt at
Cost
|
$1,233
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders' Equity
at Fair Value
|
$2,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
There were no investments made in 2009 and 2010 static pool
years.
|
|
(2)
Assumes investments are exited at current fair value.
|
|
(3)
Includes fully exited investments of existing portfolio
companies.
|
|
(4)
Excludes investments in Structured Products.
|
|
(5)
Excludes equity investments that are the result of conversions of
debt and warrants received with the issuance of debt.
|
|
(6)
Majority Owned Portfolio Company (“MOPC”) investments represents
investments in which American Capital, or it affiliates, have a
fully diluted ownership percentage of 50% or more or has over
50% board representation at the portfolio company. Excludes our
investment in European Capital.
|
|
(7)
Represents committed investment amount at the time of
origination.
|
|
(8)
Adjusted EBITDA may reflect certain adjustments to the reported
EBITDA of a portfolio company for non-recurring, unusual or
infrequent items or other pro-forma items or events to normalize
current earnings which a buyer may consider in a change in control
transactions. These adjustments may be material and are
highly subjective in nature. Portfolio company reported
EBITDA is for the most recently available twelve months, or when
appropriate, the forecasted twelve months or current annualized
run-rate.
|
|
(9)
For portfolio companies with a nominal Adjusted EBITDA amount, the
portfolio company's maximum debt leverage is limited to 15 times
Adjusted EBITDA.
|
|
(10)
Excludes investments in which we own only equity.
|
|
(11)
Excludes investments in Structured Products and managed
funds.
|
|
(12) For the
most recent twelve months, or when appropriate, the forecasted
twelve months.
|
|
(13) As a
percentage of our total debt investments.
|
|
(14)
Weighted average based on fair value.
|
|
(15)
Weighted average based on fair value of equity
investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDER CALL
American Capital invites shareholders, analysts and interested
parties to attend the shareholder call on February 15, 2012 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 (574) 941-7382
(international). All callers are asked to dial in 10-15
minutes prior to the call to register. Please provide the
operator with the conference ID number 41247892. Callers who
do not plan on asking a question and have access to the internet
are asked to utilize 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 Q4 2011 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 on February 15, 2012.
In addition, there will be a phone recording available from
2:00 pm ET February 15, 2012 until 11:59 pm ET February 29,
2012. If you are interested in hearing the recording
of the presentation, please dial (855) 859-2056 (U.S. domestic) or
(404) 537-3406 (international). The access code for both
domestic and international callers is 41247892.
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 has $68
billion in assets under management and seven offices in the
U.S. and Europe. American
Capital and European Capital will consider investment opportunities
from $10 million to $300 million.
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, 2010 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.
CONTACT:
Investors - (301) 951-5917
Media - (301) 968-9400
SOURCE American Capital, Ltd.