BETHESDA, Md., Aug. 5, 2015 /PRNewswire/ -- American Capital,
Ltd. ("American Capital" or the "Company") (NASDAQ: ACAS) announced
consolidated net operating income ("NOI") before income taxes for
the quarter ended June 30, 2015 of $97
million, or $0.34 per diluted
share, a 7% annualized return on equity. Consolidated NOI
after income taxes for the quarter ended June 30, 2015 was
$67 million, or $0.24 per diluted share. Consolidated net
earnings for the quarter ended June 30, 2015 was $62
million, or $0.22 per diluted
share. As of June 30, 2015, net asset value ("NAV") per
share was $20.35, a $0.23 per share increase from the March 31, 2015 NAV per share of $20.12.
Q2 2015 CONSOLIDATED FINANCIAL SUMMARY
- $20.35 NAV per share outstanding
- $0.23 per share increase, or 5%
annualized, over Q1 2015
- $0.34 NOI before income taxes per
diluted share, or $97 million
- 21%, or $0.06 per diluted share,
increase over Q1 2015, or $19
million
- 7% annualized return on equity
- $0.24 NOI after income taxes per
diluted share, or $67 million
- 33%, or $0.06 per diluted share,
increase over Q1 2015, or $17
million
- $0.22 net earnings per diluted
share, or $62 million
- 340%, or $0.17 per diluted share,
increase over Q1 2015, or $47
million
- $594 million of cash proceeds
from realizations
- $186 million from Senior Floating
Rate Loans ("SFRLs")
- $170 million from investments
sold to a European Capital debt fund
- $976 million in new committed
investments
- $300 million in Senior Floating
Rate Loans
- $179 million in a European
Capital debt fund
- $155 million in Structured
Products
- $145 million in buyback of ACE I
and ACE II interests in 22 portfolio companies ("ACE
Buybacks")
- $114 million in Sponsor Finance
Investments
- 6.5 million shares of American Capital common stock
repurchased, totaling $93 million
- $14.32 average price per
share
- $0.14 per share accretive to
June 30, 2015 NAV per share
ASSET MANAGEMENT
In the second quarter of 2015,
American Capital committed to purchase the interests of American
Capital Equity I and American Capital Equity II, two affiliated
private equity funds, in 22 portfolio companies for $145 million, which was their fair market value
as of March 31, 2015. These
purchases are intended to adjust the Company's asset composition to
meet statutory requirements in connection with the spin-off of
American Capital Income, Ltd.
Additionally, a European Capital debt fund closed on €318
million ($353 million) of capital
commitments, including €153 million ($170
million) of third-party investments and commitments.
European Capital sold €162 million ($175
million) of assets into the fund. European Capital's
investment and remaining commitments to the fund total €165 million
($183 million). The Company
anticipates a final closing by March
2016 to increase the investment capacity of the fund.
The fund will have a three-year investment period and an affiliate
of American Capital Asset Management will manage the fund for an
annual base management fee of 1.5% and 15% incentive fees, subject
to performance hurdles.
ACAS CLO 2015-1, a $552 million
CLO fund, closed during the quarter. The CLO will have an
approximate four-year investment period, and an affiliate of
American Capital Asset Management will manage the fund for an
annual base management fee of 0.5% and 20% incentive fees, subject
to performance hurdles.
Also, after quarter end, the Company raised ACAS CLO 2015-2, a
$510 million CLO fund. The CLO
fund will have an approximate four-year investment period, and an
affiliate of American Capital Asset Management will manage the fund
for an annual base management fee of 0.5% and 20% incentive fees,
subject to performance hurdles.
"We made good progress preparing for the spin-off of American
Capital Income and remain on track to make initial regulatory
filings this September," said Malon
Wilkus, Chairman and Chief Executive Officer. "We also
made progress in our asset management business, closing the
$552 million ACAS CLO 2015-1 and
completing the first two closings for a European Capital debt fund,
totaling $353 million. We
expect a final closing for the European fund by March of next
year."
"We continue to believe in repurchasing our stock when it is
trading at meaningful discounts to our NAV, as can be seen by our
$93 million of purchases in the
second quarter and $1.3 billion of
total purchases since we started buybacks in 2011," continued Mr.
Wilkus. "Our stock repurchases have totaled 31% of our shares
outstanding immediately prior to the start of the program.
Our Board of Directors has recently modified the program and
we intend to repurchase $300
million to $600 million of our stock prior to the completion
of the American Capital Income spin-off, at prices below 85% of the
most recent quarterly reported NAV per share, subject to certain
conditions. The very substantial amount of accretion in book
value per share that would result from these share repurchases,
should make this program highly attractive to shareholders."
"A key strategy of the spin-off will be positioning the balance
sheet of American Capital Income to pay a market rate dividend,"
said John Erickson, Chief Financial
Officer and President, Specialty Finance. "We have made
progress during the quarter increasing our NOI before income taxes
by 24% to $97 million. Our
second quarter NOI before income taxes return on equity was 7.1%
compared to 5.6% for the last twelve months. While we have
more work to improve the yield, we are making progress."
"The Sponsor Finance business continues to benefit from a
dynamic industry with increased regulation and changes in the
competitive landscape," said Brian
Graff, President Private Finance. "In the second
quarter, the Sponsor Finance business originated $114 million and an additional $50 million of investments in July. Over
70% of the year to date investments were originated directly with
private equity sponsors. We are very pleased with our current
origination efforts, sizable backlog and response from sponsors to
our recently disclosed increase in underwriting and hold
sizes. We believe this puts us on track to achieve the annual
volume we were planning."
PORTFOLIO VALUATION
For the quarter ended
June 30, 2015, net unrealized appreciation, before income
taxes, on American Capital's consolidated investment portfolio
totaled $140 million. The
primary components of the net unrealized appreciation were:
- $180 million reversal of prior
period unrealized depreciation primarily due to the exercise of the
WRH, Inc. equity option; partially offset by
- $11 million net unrealized
depreciation in Structured Products;
- $11 million net unrealized
depreciation in Senior Floating Rate Loans; and
- $10 million net unrealized
depreciation in American Capital Asset Management.
PORTFOLIO PERFORMANCE
As of June 30, 2015, the
Company's investments in Senior Floating Rate Loans were
diversified across 255 portfolio companies and 51 industries, with
the average issuer concentration at $9.0
million and no single company representing more than 0.4% of
the Company's Senior Floating Rate Loan portfolio. The
weighted average effective interest rate on the Company's Senior
Floating Rate Loan portfolio as of June 30, 2015 was 4.2%, 10
basis points lower than the March 31,
2015 rate of 4.3%. The weighted average effective
interest rate on the consolidated debt investments, excluding
Senior Floating Rate Loans, as of June 30, 2015 was 8.8%, 10
basis points lower than the March 31,
2015 rate of 8.9%. The weighted average effective
interest rate on European Capital's debt investments as of
June 30, 2015 was 4.1%, 150 basis points lower than the
March 31, 2015 rate of 5.6%.
Excluding the impact of debt investments on non-accrual, the
weighted average effective interest rate on European Capital's debt
investments as of June 30, 2015 was 8.0%. The weighted
average effective interest rate on consolidated debt investments as
of June 30, 2015 was 6.4%, 20 basis points lower than the
March 31, 2015 rate of 6.6%.
As of June 30, 2015, excluding European Capital loans,
loans with a fair value of $109
million were on non-accrual, representing 2.7% of total
loans at fair value, compared to $98
million, or 2.5%, of loans at fair value as of March 31, 2015. The $11 million increase in the fair value of loans
on non-accrual was generally driven by net appreciation of existing
non-accrual loans. Total loans on non-accrual were valued at
61.2% of cost at the end of the quarter, an 8.5% increase from the
prior quarter. This is an estimate of the amount the Company
expects to recover on non-accruing loans. The estimated loss
on total loans at cost, defined as net accumulated depreciation on
non-accrual loans plus realized losses on loans during the period,
was $101 million, or 2.5%.
As of June 30, 2015, European Capital loans with a fair
value of $28 million were on
non-accrual, representing 15.5% of total European Capital loans at
fair value, compared to $20 million,
or 5.7%, of European Capital loans at fair value as of March 31, 2015. The $8 million increase in the fair value of European
Capital loans on non-accrual was driven by one loan added to
non-accrual status. Total European Capital loans on
non-accrual were valued at 18.2% of cost at the end of the quarter,
a 3.6% increase from the prior quarter. The estimated loss on
total loans at cost was $126 million,
or 40.5%.
SHARE REPURCHASE PROGRAM MODIFIED TO PURCHASE BETWEEN
$300 MILLION AND $600 MILLION
American Capital's Board of Directors has modified its Share
Repurchase Program beginning in the third quarter. Under the
program, American Capital will purchase between $300 million and $600 million of common stock at
prices per share below 85% of its most recent quarterly net asset
value per share, subject to certain conditions. The purchases
will be made prior to the spin-off of American Capital Income by
the Company.
During the second quarter of 2015, American Capital made open
market purchases of 6.5 million shares, for an aggregate price of
$93 million, of American Capital
common stock at an average price of $14.32 per share. Since the inception of
the program in August 2011, American
Capital has made open market purchases of 108.1 million shares, or
$1.3 billion, of American Capital
common stock at an average price of $11.90 per share. This represents 31% of
shares outstanding immediately prior to the launch of the
program.
AMERICAN CAPITAL,
LTD.
|
CONSOLIDATED
BALANCE SHEETS
|
As of June 30,
2015, March 31, 2015 and December 31, 2014
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
Q1
|
|
Q2 2015 Versus
Q1 2015
|
|
Q4
|
|
Q2 2015 Versus
Q4 2014
|
|
2015
|
|
2015
|
|
$
|
|
%
|
|
2014
|
|
$
|
|
%
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair
value (cost of $7,013, $6,924
and $6,417, respectively)
|
$
7,260
|
|
$
7,035
|
|
$
225
|
|
3%
|
|
$
6,280
|
|
$
980
|
|
16%
|
Cash and cash
equivalents
|
274
|
|
469
|
|
(195)
|
|
(42%)
|
|
676
|
|
(402)
|
|
(59%)
|
Restricted cash and
cash equivalents
|
78
|
|
81
|
|
(3)
|
|
(4%)
|
|
167
|
|
(89)
|
|
(53%)
|
Interest and dividend
receivable
|
50
|
|
40
|
|
10
|
|
25%
|
|
46
|
|
4
|
|
9%
|
Deferred tax asset,
net
|
264
|
|
276
|
|
(12)
|
|
(4%)
|
|
354
|
|
(90)
|
|
(25%)
|
Other
|
159
|
|
133
|
|
26
|
|
20%
|
|
117
|
|
42
|
|
36%
|
Total
assets
|
$
8,085
|
|
$
8,034
|
|
$
51
|
|
1%
|
|
$
7,640
|
|
$
445
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
|
$
2,107
|
|
$
2,002
|
|
$
105
|
|
5%
|
|
$
1,703
|
|
$
404
|
|
24%
|
Trade date settlement
liability
|
402
|
|
385
|
|
17
|
|
4%
|
|
191
|
|
211
|
|
110%
|
Other
|
120
|
|
221
|
|
(101)
|
|
(46%)
|
|
274
|
|
(154)
|
|
(56%)
|
Total
liabilities
|
2,629
|
|
2,608
|
|
21
|
|
1%
|
|
2,168
|
|
461
|
|
21%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 271.9, 273.9
and 271.1
issued and 268.1, 269.7 and 266.9
outstanding, respectively
|
3
|
|
3
|
|
—
|
|
—%
|
|
3
|
|
—
|
|
—%
|
Capital in excess of
par value
|
6,231
|
|
6,281
|
|
(50)
|
|
(1%)
|
|
6,246
|
|
(15)
|
|
—%
|
Cumulative
translation adjustment, net of tax
|
(116)
|
|
(134)
|
|
18
|
|
13%
|
|
(38)
|
|
(78)
|
|
(205%)
|
Distributions in
excess of net realized earnings
|
(824)
|
|
(668)
|
|
(156)
|
|
(23%)
|
|
(505)
|
|
(319)
|
|
(63%)
|
Net unrealized
appreciation (depreciation) of
investments
|
162
|
|
(56)
|
|
218
|
|
NM
|
|
(234)
|
|
396
|
|
NM
|
Total
shareholders' equity
|
5,456
|
|
5,426
|
|
30
|
|
1%
|
|
5,472
|
|
(16)
|
|
—%
|
Total
liabilities and shareholders' equity
|
$
8,085
|
|
$
8,034
|
|
$
51
|
|
1%
|
|
$
7,640
|
|
$
445
|
|
6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV per common share
outstanding
|
$
20.35
|
|
$
20.12
|
|
$
0.23
|
|
1%
|
|
$
20.50
|
|
$
(0.15)
|
|
(1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________
NM = Not meaningful
Note: Effective October 1, 2014, European Capital's financial
results have been consolidated with the financial results of
American Capital.
|
AMERICAN CAPITAL,
LTD.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
Three Months Ended
June 30, 2015, March 31, 2015 and June 30, 2014
|
(in millions,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
|
|
Q1
|
|
Q2 2015 Versus
Q1 2015
|
|
Q2
|
|
Q2 2015 Versus
Q2 2014
|
|
|
2015
|
|
2015
|
|
$
|
|
%
|
|
2014
|
|
$
|
|
%
|
OPERATING
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
$
151
|
|
$
138
|
|
$
13
|
|
9%
|
|
$
83
|
|
$
68
|
|
82%
|
Fee income
|
|
17
|
|
16
|
|
1
|
|
6%
|
|
17
|
|
—
|
|
—%
|
Total
operating revenue
|
|
168
|
|
154
|
|
14
|
|
9%
|
|
100
|
|
68
|
|
68%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
20
|
|
17
|
|
3
|
|
18%
|
|
11
|
|
9
|
|
82%
|
Salaries, benefits
and stock-based compensation
|
|
32
|
|
40
|
|
(8)
|
|
(20%)
|
|
35
|
|
(3)
|
|
(9%)
|
European Capital
management fees
|
|
4
|
|
4
|
|
—
|
|
—%
|
|
—
|
|
4
|
|
100%
|
General and
administrative
|
|
15
|
|
15
|
|
—
|
|
—%
|
|
13
|
|
2
|
|
15%
|
Total
operating expenses
|
|
71
|
|
76
|
|
(5)
|
|
(7%)
|
|
59
|
|
12
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME BEFORE INCOME
TAXES
|
|
97
|
|
78
|
|
19
|
|
24%
|
|
41
|
|
56
|
|
137%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
provision
|
|
(30)
|
|
(28)
|
|
(2)
|
|
(7%)
|
|
(15)
|
|
(15)
|
|
(100%)
|
NET OPERATING
INCOME
|
|
67
|
|
50
|
|
17
|
|
34%
|
|
26
|
|
41
|
|
158%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio company
investments
|
|
(284)
|
|
(206)
|
|
(78)
|
|
(38%)
|
|
(14)
|
|
(270)
|
|
NM
|
Foreign currency
transactions
|
|
3
|
|
(2)
|
|
5
|
|
NM
|
|
1
|
|
2
|
|
200%
|
Derivative agreements
and other
|
|
46
|
|
(48)
|
|
94
|
|
NM
|
|
1
|
|
45
|
|
NM
|
Tax
benefit
|
|
12
|
|
43
|
|
(31)
|
|
(72%)
|
|
5
|
|
7
|
|
140%
|
Total
net realized loss
|
|
(223)
|
|
(213)
|
|
(10)
|
|
(5%)
|
|
(7)
|
|
(216)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
appreciation (depreciation)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio company
investments
|
|
140
|
|
229
|
|
(89)
|
|
(39%)
|
|
185
|
|
(45)
|
|
(24%)
|
Foreign currency
translation
|
|
13
|
|
19
|
|
(6)
|
|
(32%)
|
|
(12)
|
|
25
|
|
NM
|
Derivative agreements
and other
|
|
65
|
|
6
|
|
59
|
|
983%
|
|
(3)
|
|
68
|
|
NM
|
Tax benefit
(provision)
|
|
—
|
|
(76)
|
|
76
|
|
100%
|
|
23
|
|
(23)
|
|
(100%)
|
Total
net unrealized appreciation
|
|
218
|
|
178
|
|
40
|
|
22%
|
|
193
|
|
25
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE IN
NET ASSETS RESULTING
FROM OPERATIONS ("NET EARNINGS")
|
|
$
62
|
|
$
15
|
|
$
47
|
|
313%
|
|
$
212
|
|
$
(150)
|
|
(71%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME BEFORE INCOME
TAXES PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.36
|
|
$
0.29
|
|
$
0.07
|
|
24%
|
|
$
0.15
|
|
$
0.21
|
|
140%
|
Diluted
|
|
$
0.34
|
|
$
0.28
|
|
$
0.06
|
|
21%
|
|
$
0.15
|
|
$
0.19
|
|
127%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.25
|
|
$
0.18
|
|
$
0.07
|
|
39%
|
|
$
0.10
|
|
$
0.15
|
|
150%
|
Diluted
|
|
$
0.24
|
|
$
0.18
|
|
$
0.06
|
|
33%
|
|
$
0.09
|
|
$
0.15
|
|
167%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REALIZED
(LOSS) EARNINGS
PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.57)
|
|
$
(0.60)
|
|
$
0.03
|
|
5%
|
|
$
0.07
|
|
$
(0.64)
|
|
NM
|
Diluted
|
|
$
(0.55)
|
|
$
(0.58)
|
|
$
0.03
|
|
5%
|
|
$
0.07
|
|
$
(0.62)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS PER
COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.23
|
|
$
0.06
|
|
$
0.17
|
|
283%
|
|
$
0.80
|
|
$
(0.57)
|
|
(71%)
|
Diluted
|
|
$
0.22
|
|
$
0.05
|
|
$
0.17
|
|
340%
|
|
$
0.76
|
|
$
(0.54)
|
|
(71%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OF COMMON
STOCK OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
272.4
|
|
271.1
|
|
1.3
|
|
—%
|
|
266.2
|
|
6.2
|
|
2%
|
Diluted
|
|
283.4
|
|
282.9
|
|
0.5
|
|
—%
|
|
278.5
|
|
4.9
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________
NM = Not meaningful
Note: Effective October 1, 2014, European Capital's financial
results have been consolidated with the financial results of
American Capital.
|
AMERICAN CAPITAL,
LTD.
|
|
OTHER FINANCIAL
INFORMATION
|
|
Three Months Ended
June 30, 2015, March 31, 2015 and June 30, 2014
|
|
(in millions,
except per share data)
|
|
(unaudited)
|
|
|
Q2
|
|
Q1
|
|
Q2 2015 Versus
Q1 2015
|
|
Q2
|
|
Q2 2015 Versus
Q2 2014
|
|
|
|
2015
|
|
2015
|
|
$
|
|
%
|
|
2014
|
|
$
|
|
%
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Capital
Total Assets at Fair Value
|
$
8,085
|
|
$
8,034
|
|
$
51
|
|
1%
|
|
$
6,394
|
|
$
1,691
|
|
26%
|
|
|
Externally Managed
Assets at Fair Value(1)
|
73,389
|
|
83,715
|
|
(10,326)
|
|
(12%)
|
|
76,510
|
|
(3,121)
|
|
(4%)
|
|
|
Total
|
$ 81,474
|
|
$ 91,749
|
|
$ (10,275)
|
|
(11%)
|
|
$ 82,904
|
|
$
(1,430)
|
|
(2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-Party Earning
Assets Under Management(2)
|
$ 14,667
|
|
$ 14,630
|
|
$
37
|
|
—%
|
|
$ 13,137
|
|
$
1,530
|
|
12%
|
|
|
Total Earning Assets
Under Management(3)
|
$ 22,752
|
|
$ 22,664
|
|
$
88
|
|
—%
|
|
$ 19,450
|
|
$
3,302
|
|
17%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Senior Debt
|
$
393
|
|
$
747
|
|
$
(354)
|
|
(47%)
|
|
$
571
|
|
$
(178)
|
|
(31%)
|
|
|
Second Lien
Senior Debt
|
94
|
|
12
|
|
82
|
|
683%
|
|
103
|
|
(9)
|
|
(9%)
|
|
|
Mezzanine
Debt
|
4
|
|
54
|
|
(50)
|
|
(93%)
|
|
2
|
|
2
|
|
100%
|
|
|
Preferred
Equity
|
89
|
|
90
|
|
(1)
|
|
(1%)
|
|
1
|
|
88
|
|
NM
|
|
|
Common
Equity
|
241
|
|
2
|
|
239
|
|
NM
|
|
63
|
|
178
|
|
283%
|
|
|
Structured
Products
|
155
|
|
47
|
|
108
|
|
230%
|
|
73
|
|
82
|
|
112%
|
|
|
Total by
Security Type
|
$
976
|
|
$
952
|
|
$
24
|
|
3%
|
|
$
813
|
|
$
163
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Floating Rate
Loans
|
$
300
|
|
$
603
|
|
$
(303)
|
|
(50%)
|
|
$
579
|
|
$
(279)
|
|
(48%)
|
|
|
Structured
Products
|
155
|
|
47
|
|
108
|
|
230%
|
|
73
|
|
82
|
|
112%
|
|
|
European
Capital
|
179
|
|
169
|
|
10
|
|
6%
|
|
—
|
|
179
|
|
100%
|
|
|
Sponsor Finance and
Other Investments
|
90
|
|
41
|
|
49
|
|
120%
|
|
99
|
|
(9)
|
|
(9%)
|
|
|
Investments in ACAM
and Fund Development
|
69
|
|
19
|
|
50
|
|
263%
|
|
50
|
|
19
|
|
38%
|
|
|
Add-on Financing for
ACE Buybacks
|
145
|
|
—
|
|
145
|
|
100%
|
|
—
|
|
145
|
|
100%
|
|
|
Add-on Financing for
Growth and Working Capital
|
34
|
|
21
|
|
13
|
|
62%
|
|
3
|
|
31
|
|
NM
|
|
|
Add-on Financing for
Distressed Situations
|
4
|
|
6
|
|
(2)
|
|
(33%)
|
|
9
|
|
(5)
|
|
(56%)
|
|
|
Add-on Financing for
Recapitalizations, not Including
Distressed Investments
|
—
|
|
46
|
|
(46)
|
|
(100%)
|
|
—
|
|
—
|
|
—%
|
|
|
Total by
Use
|
$
976
|
|
$
952
|
|
$
24
|
|
3%
|
|
$
813
|
|
$
163
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realizations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Syndications and
Sales
|
206
|
|
54
|
|
152
|
|
281%
|
|
1
|
|
205
|
|
NM
|
|
|
Principal
Prepayments
|
147
|
|
29
|
|
118
|
|
407%
|
|
185
|
|
(38)
|
|
(21%)
|
|
|
Scheduled Principal
Amortization
|
139
|
|
32
|
|
107
|
|
334%
|
|
19
|
|
120
|
|
632%
|
|
|
Equity
Investments
|
90
|
|
93
|
|
(3)
|
|
(3%)
|
|
142
|
|
(52)
|
|
(37%)
|
|
|
Payment of Accrued
PIK Notes and Dividends and
Accreted OID
|
12
|
|
17
|
|
(5)
|
|
(29%)
|
|
61
|
|
(49)
|
|
(80%)
|
|
|
Total by
Source
|
$
594
|
|
$
225
|
|
$
369
|
|
164%
|
|
$
408
|
|
$
186
|
|
46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Floating Rate
Loans
|
186
|
|
91
|
|
95
|
|
104%
|
|
8
|
|
178
|
|
NM
|
|
|
European
Capital(6)
|
175
|
|
110
|
|
65
|
|
59%
|
|
34
|
|
141
|
|
415%
|
|
|
Structured
Products
|
99
|
|
5
|
|
94
|
|
NM
|
|
42
|
|
57
|
|
136%
|
|
|
American Capital One
Stop Buyouts®
|
98
|
|
14
|
|
84
|
|
600%
|
|
282
|
|
(184)
|
|
(65%)
|
|
|
Sponsor Finance and
Other Investments
|
33
|
|
2
|
|
31
|
|
NM
|
|
41
|
|
(8)
|
|
(20%)
|
|
|
American Capital
Asset Management
|
3
|
|
3
|
|
—
|
|
—%
|
|
1
|
|
2
|
|
200%
|
|
|
Total by
Business Line
|
$
594
|
|
$
225
|
|
$
369
|
|
164%
|
|
$
408
|
|
$
186
|
|
46%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation,
Depreciation, Gain and Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Realized
Gain
|
$
8
|
|
$
5
|
|
$
3
|
|
60%
|
|
$
69
|
|
$
(61)
|
|
(88%)
|
|
|
Gross Realized
Loss
|
(292)
|
|
(211)
|
|
(81)
|
|
(38%)
|
|
(83)
|
|
(209)
|
|
(252%)
|
|
|
Portfolio Net Realized Loss
|
(284)
|
|
(206)
|
|
(78)
|
|
(38%)
|
|
(14)
|
|
(270)
|
|
NM
|
|
|
Foreign Currency
Transactions
|
3
|
|
(2)
|
|
5
|
|
NM
|
|
1
|
|
2
|
|
200%
|
|
|
Derivative
Agreements
|
46
|
|
(2)
|
|
48
|
|
NM
|
|
1
|
|
45
|
|
NM
|
|
|
Long Term Incentive
Plan Liability
|
—
|
|
(46)
|
|
46
|
|
100%
|
|
—
|
|
—
|
|
—%
|
|
|
Tax
Benefit
|
12
|
|
43
|
|
(31)
|
|
(72%)
|
|
5
|
|
7
|
|
140%
|
|
|
Net
Realized Loss
|
(223)
|
|
(213)
|
|
(10)
|
|
(5%)
|
|
(7)
|
|
(216)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unrealized
(Depreciation) Appreciation of American
Capital One Stop Buyouts®
|
(9)
|
|
4
|
|
(13)
|
|
NM
|
|
(15)
|
|
6
|
|
40%
|
|
|
Net Unrealized
(Depreciation) Appreciation of American
Capital Sponsor Finance and Other Investments
|
(5)
|
|
—
|
|
(5)
|
|
(100%)
|
|
18
|
|
(23)
|
|
NM
|
|
|
Net Unrealized
Appreciation of European Capital
Investments
|
6
|
|
2
|
|
4
|
|
200%
|
|
—
|
|
6
|
|
100%
|
|
|
Net Unrealized
Appreciation of Investment in European
Capital
|
—
|
|
—
|
|
—
|
|
—%
|
|
66
|
|
(66)
|
|
(100%)
|
|
|
Net Unrealized
Appreciation of Investment in European
Capital Foreign Currency Translation
|
—
|
|
—
|
|
—
|
|
—%
|
|
2
|
|
(2)
|
|
(100%)
|
|
|
Net Unrealized
(Depreciation) Appreciation of ACAM
|
(10)
|
|
(4)
|
|
(6)
|
|
(150%)
|
|
101
|
|
(111)
|
|
NM
|
|
|
Net Unrealized
(Depreciation) Appreciation of Senior
Floating Rate Loans
|
(11)
|
|
21
|
|
(32)
|
|
NM
|
|
—
|
|
(11)
|
|
(100%)
|
|
|
Net Unrealized
(Depreciation) Appreciation of Structured
Products
|
(11)
|
|
(3)
|
|
(8)
|
|
(267%)
|
|
3
|
|
(14)
|
|
NM
|
|
|
Reversal of Prior
Period Net Unrealized Depreciation Upon
Realization
|
180
|
|
209
|
|
(29)
|
|
(14%)
|
|
10
|
|
170
|
|
NM
|
|
|
Net Unrealized
Appreciation of Portfolio Company
Investments
|
140
|
|
229
|
|
(89)
|
|
(39%)
|
|
185
|
|
(45)
|
|
(24%)
|
|
|
Foreign Currency
Translation - Investment in European
Capital
|
—
|
|
—
|
|
—
|
|
—%
|
|
(8)
|
|
8
|
|
100%
|
|
|
Foreign Currency
Translation - European Capital
Investments
|
11
|
|
28
|
|
(17)
|
|
(61%)
|
|
—
|
|
11
|
|
100%
|
|
|
Foreign Currency
Translation - Other
|
2
|
|
(9)
|
|
11
|
|
NM
|
|
(4)
|
|
6
|
|
NM
|
|
|
Derivative Agreements
and Other
|
65
|
|
6
|
|
59
|
|
983%
|
|
(3)
|
|
68
|
|
NM
|
|
|
Tax (Provision)
Benefit
|
—
|
|
(76)
|
|
76
|
|
100%
|
|
23
|
|
(23)
|
|
(100%)
|
|
|
Net
Unrealized Appreciation of Investments
|
218
|
|
178
|
|
40
|
|
22%
|
|
193
|
|
25
|
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Gains, Losses, Appreciation and Depreciation
|
$
(5)
|
|
$
(35)
|
|
$
30
|
|
86%
|
|
$
186
|
|
$
(191)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV per
Share
|
$
20.35
|
|
$
20.12
|
|
$
0.23
|
|
1%
|
|
$
20.12
|
|
$
0.23
|
|
1%
|
|
|
Debt at
Cost
|
$
2,107
|
|
$
2,002
|
|
$
105
|
|
5%
|
|
$
791
|
|
$
1,316
|
|
166%
|
|
|
Market
Capitalization
|
$
3,633
|
|
$
3,989
|
|
$
(356)
|
|
(9%)
|
|
$
4,032
|
|
$
(399)
|
|
(10%)
|
|
|
Total Enterprise
Value(4)
|
$
5,466
|
|
$
5,522
|
|
$
(56)
|
|
(1%)
|
|
$
4,688
|
|
$
778
|
|
17%
|
|
|
Asset Coverage
Ratio
|
358%
|
|
370%
|
|
|
|
|
|
593%
|
|
|
|
|
|
|
Debt to Equity
Ratio
|
0.4x
|
|
0.4x
|
|
|
|
|
|
0.1x
|
|
|
|
|
|
|
Credit
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on SFRLs at
Period End
|
4.2%
|
|
4.3%
|
|
|
|
|
|
4.4%
|
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on Debt
Investments, Excluding SFRLs, at Period End
|
8.8%
|
|
8.9%
|
|
|
|
|
|
9.3%
|
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on European
Capital's Debt Investments at Period End
|
4.1%
|
|
5.6%
|
|
|
|
|
|
NA
|
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on All Debt
Investments at Period End
|
6.4%
|
|
6.6%
|
|
|
|
|
|
7.8%
|
|
|
|
|
|
|
Loans on Non-Accrual
at Cost
|
$
332
|
|
$
323
|
|
$
9
|
|
3%
|
|
$
299
|
|
$
33
|
|
11%
|
|
|
Loans on Non-Accrual
at Fair Value
|
$
137
|
|
$
118
|
|
$
19
|
|
16%
|
|
$
171
|
|
$
(34)
|
|
(20%)
|
|
|
Non-Accrual Loans at
Cost as a Percentage of Total Loans
at Cost
|
7.4%
|
|
7.3%
|
|
|
|
|
|
12.5%
|
|
|
|
|
|
|
Non-Accrual Loans at
Fair Value as a Percentage of Total
Loans at Fair Value
|
3.2%
|
|
2.8%
|
|
|
|
|
|
7.5%
|
|
|
|
|
|
|
Non-Accruing Loans at
Fair Value as a Percentage of
Non-Accruing Loans at Cost
|
41.3%
|
|
36.5%
|
|
|
|
|
|
57.2%
|
|
|
|
|
|
|
Estimated
Loss(5)
|
$
227
|
|
$
255
|
|
$
(28)
|
|
(11%)
|
|
$
142
|
|
$
85
|
|
60%
|
|
|
Estimated Loss as a
Percentage of Total Loans at Cost
|
5.1%
|
|
6.0%
|
|
|
|
|
|
6.1%
|
|
|
|
|
|
|
Past Due Loans at
Cost
|
$
-
|
|
$
-
|
|
$
-
|
|
—%
|
|
$
-
|
|
$
-
|
|
—%
|
|
|
Debt to Equity
Conversions at Cost
|
$
-
|
|
$
59
|
|
$
(59)
|
|
(100%)
|
|
$
-
|
|
$
-
|
|
—%
|
|
|
Return on Average
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTM Net Operating
Income Before Income Taxes Return
on Average Shareholders' Equity
|
5.6%
|
|
4.6%
|
|
|
|
|
|
2.9%
|
|
|
|
|
|
|
LTM Net Operating
Income Return on Average
Shareholders' Equity
|
3.7%
|
|
3.0%
|
|
|
|
|
|
1.7%
|
|
|
|
|
|
|
LTM Net Realized
(Loss) Earnings Return on Average
Shareholders' Equity
|
(1.7%)
|
|
1.5%
|
|
|
|
|
|
1.6%
|
|
|
|
|
|
|
LTM Net Earnings
Return on Average Shareholders' Equity
|
4.2%
|
|
7.1%
|
|
|
|
|
|
1.9%
|
|
|
|
|
|
|
Current Quarter
Annualized Net Operating Income Before
Income Taxes Return on Average Shareholders'
Equity
|
7.1%
|
|
5.7%
|
|
|
|
|
|
3.1%
|
|
|
|
|
|
|
Current Quarter
Annualized Net Operating Income
Return on Average Shareholders' Equity
|
4.9%
|
|
3.7%
|
|
|
|
|
|
2.0%
|
|
|
|
|
|
|
Current Quarter
Annualized Net Realized (Loss) Earnings
Return on Average Shareholders' Equity
|
(11.5%)
|
|
(11.9%)
|
|
|
|
|
|
1.4%
|
|
|
|
|
|
|
Current Quarter
Annualized Net Earnings Return on
Average Shareholders' Equity
|
4.6%
|
|
1.1%
|
|
|
|
|
|
16.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________
NM = Not meaningful
Note: Effective October 1, 2014, European Capital's financial
results have been consolidated with the financial results of
American Capital.
|
(1) Includes
total assets of American Capital Agency, American Capital Mortgage,
American Capital Senior Floating, investment in European Capital
through September 30, 2014, American Capital Equity I, American
Capital
Equity II, American Capital
Equity III, ACAS CLO 2007-1, ACAS CLO 2012-1, ACAS CLO 2013-1, ACAS
CLO 2013-2, ACAS CLO 2014-1, ACAS CLO 2014-2, ACAS CLO 2015-1,
European Capital UK SME Debt LP and
a European Capital debt fund,
less American Capital's investment in the funds.
|
(2) Represents
third-party earning assets under management from which the
associated base management fees are calculated, less American
Capital's investment in the funds.
|
(3) Represents
total assets of American Capital less American Capital's investment
in the funds as well as third-party earning assets under management
from which the associated base management fees are
calculated.
|
(4) Enterprise
value is calculated as debt at cost plus market capitalization less
cash and cash equivalents on hand.
|
(5) Net
accumulated depreciation on non-accrual loans plus realized losses
on loans during the period presented.
|
(6) Includes
realizations from American Capital's investment in European Capital
during the three months ended June 30, 2014. Includes European
Capital investment portfolio realizations during the three months
ended
June 30, 2015 and March 31,
2015, respectively.
|
|
Static Pool
(1)
|
|
American Capital
Portfolio Statistics
($ in millions, unaudited)
|
1997-
2004
|
|
|
|
|
|
|
|
|
|
SFRL
|
Aggregate
|
2005
|
2006
|
2007
|
2008
|
2011
|
2012
|
2013
|
2014
|
2015
|
IRR of All
Investments(2)
|
12.3%
|
13.8%
|
10.5%
|
(2.2%)
|
10.0%
|
15.7%
|
(10.4%)
|
40.7%
|
12.8%
|
15.1%
|
3.8%
|
9.0%
|
IRR of Exited
Investments(3)
|
13.2%
|
17.9%
|
8.9%
|
(4.1%)
|
9.1%
|
21.9%
|
(87.9%)
|
16.3%
|
14.0%
|
N/A
|
NM
|
9.4%
|
IRR of Equity
Investments(2)(4)(5)
|
19.1%
|
13.9%
|
13.5%
|
(8.4%)
|
20.5%
|
12.2%
|
(98.7%)
|
151.8%
|
33.6%
|
N/A
|
N/A
|
11.1%
|
IRR of Exited Equity
Investments(3)(4)(5)
|
24.1%
|
28.6%
|
12.4%
|
(6.3%)
|
19.3%
|
35.1%
|
NM
|
N/A
|
N/A
|
N/A
|
N/A
|
16.1%
|
IRR of All One Stop
Buyout Investments(2)(19)
|
11.5%
|
26.9%
|
12.6%
|
1.8%
|
15.8%
|
(15.2%)
|
(16.5%)
|
211.8%
|
N/A
|
N/A
|
N/A
|
12.9%
|
IRR of All One Stop
Buyout Equity Investments(2)(4)(5)(19)
|
17.3%
|
37.8%
|
15.2%
|
(8.2%)
|
16.0%
|
(23.1%)
|
(98.7%)
|
211.6%
|
N/A
|
N/A
|
N/A
|
16.4%
|
IRR of Current One
Stop Buyout Investments(2)(19)
|
(2.4%)
|
24.6%
|
10.4%
|
(1.3%)
|
24.9%
|
(15.2%)
|
(16.5%)
|
211.8%
|
N/A
|
N/A
|
N/A
|
8.5%
|
IRR of Exited One
Stop Buyout Investments(3)
|
13.0%
|
21.3%
|
12.0%
|
3.1%
|
15.8%
|
N/A
|
NM
|
NM
|
N/A
|
N/A
|
N/A
|
12.6%
|
Committed
Investments(7)
|
$6,188
|
$5,591
|
$5,422
|
$7,609
|
$1,072
|
$229
|
$894
|
$355
|
$1,261
|
$298
|
$2,794
|
$31,713
|
Total Exits and
Prepayments of Committed Investments(7)
|
$5,918
|
$4,816
|
$4,894
|
$6,373
|
$856
|
$168
|
$434
|
$114
|
$164
|
$—
|
$287
|
$24,024
|
Total Interest,
Dividends and Fees Collected
|
$2,146
|
$1,722
|
$1,623
|
$1,612
|
$461
|
$32
|
$96
|
$62
|
$88
|
$6
|
$72
|
$7,920
|
Total Net Realized
(Loss) Gain on Investments
|
$(118)
|
$384
|
$(278)
|
$(1,544)
|
$(99)
|
$12
|
$(165)
|
$—
|
$(2)
|
$—
|
$(1)
|
$(1,811)
|
Current Cost of
Investments
|
$269
|
$516
|
$339
|
$709
|
$160
|
$47
|
$408
|
$228
|
$955
|
$293
|
$2,303
|
$6,227
|
Current Fair Value of
Investments
|
$128
|
$1,210
|
$330
|
$547
|
$177
|
$40
|
$374
|
$339
|
$961
|
$293
|
$2,290
|
$6,689
|
Current Fair Value of
Investments as a % of Total Investments at Fair Value
|
1.9%
|
18.1%
|
4.9%
|
8.2%
|
2.6%
|
0.6%
|
5.6%
|
5.1%
|
14.4%
|
4.4%
|
34.2%
|
100.0%
|
Net Unrealized
(Depreciation) Appreciation
|
$(141)
|
$694
|
$(9)
|
$(162)
|
$17
|
$(7)
|
$(34)
|
$111
|
$6
|
$—
|
$(13)
|
$462
|
Non-Accruing Loans at
Cost
|
$6
|
$9
|
$13
|
$127
|
$3
|
$—
|
$20
|
$—
|
$—
|
$—
|
$—
|
$178
|
Non-Accruing Loans at
Fair Value
|
$3
|
$—
|
$13
|
$74
|
$4
|
$—
|
$15
|
$—
|
$—
|
$—
|
$—
|
$109
|
Equity Interest at
Fair Value(4)
|
$57
|
$1,112
|
$213
|
$180
|
$60
|
$17
|
$57
|
$173
|
$20
|
$1
|
N/A
|
$1,890
|
Debt to Adjusted
EBITDA(8)(9)(12)(13)(16)
|
5.8
|
0.6
|
7.9
|
4.7
|
6.9
|
—
|
5.6
|
6.3
|
5.8
|
4.7
|
N/A
|
3.9
|
Interest
Coverage(10)(12)(13)(16)
|
1.8
|
0.1
|
6.0
|
2.2
|
1.7
|
—
|
2.5
|
2.5
|
2.5
|
1.8
|
N/A
|
1.6
|
Debt Service
Coverage(11)(12)(13)(16)
|
1.3
|
0.1
|
3.0
|
1.8
|
1.3
|
—
|
2.4
|
2.3
|
2.0
|
1.6
|
N/A
|
1.3
|
Average Age of
Companies(13)(16)
|
43
yrs
|
11
yrs
|
46
yrs
|
33
yrs
|
21
yrs
|
5
yrs
|
19
yrs
|
19
yrs
|
25
yrs
|
21
yrs
|
N/A
|
22
yrs
|
Diluted Ownership
Percentage(4)(17)
|
95%
|
96%
|
82%
|
62%
|
83%
|
87%
|
99%
|
78%
|
9%
|
5%
|
N/A
|
88%
|
Average
Revenue(13)(14)(16)
|
$51
|
$199
|
$176
|
$259
|
$32
|
$—
|
$205
|
$305
|
$282
|
$87
|
N/A
|
$207
|
Average Adjusted
EBITDA(8)(13)(16)
|
$10
|
$91
|
$35
|
$27
|
$14
|
$—
|
$48
|
$31
|
$64
|
$26
|
N/A
|
$56
|
Total
Revenue(13)(14)
|
$830
|
$531
|
$2,405
|
$2,644
|
$57
|
$—
|
$963
|
$2,078
|
$4,770
|
$872
|
N/A
|
$15,150
|
Total Adjusted
EBITDA(8)(13)
|
$99
|
$130
|
$28
|
$103
|
$22
|
$—
|
$278
|
$342
|
$1,242
|
$247
|
N/A
|
$2,491
|
% of Senior
Loans(12)(13)(15)
|
31%
|
9%
|
6%
|
56%
|
32%
|
100%
|
51%
|
100%
|
100%
|
100%
|
N/A
|
69%
|
% of Loans with
Lien(12)(13)(15)
|
97%
|
64%
|
100%
|
93%
|
39%
|
100%
|
100%
|
100%
|
100%
|
100%
|
N/A
|
93%
|
Diluted Ownership
Percentage of ACAS in MOPC(6)(17)
|
98%
|
96%
|
94%
|
96%
|
95%
|
80%
|
99%
|
84%
|
N/A
|
N/A
|
N/A
|
94%
|
Total Third-party
Debt at Cost in MOPC(6)(18)
|
$42
|
$20
|
$350
|
$26
|
$35
|
$—
|
$24
|
$17
|
$—
|
N/A
|
N/A
|
$514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
———————
N/A = Not Applicable
NM = Not Meaningful
Note: Excludes portfolio companies of
European Capital. For static pool statistics, American
Capital's investment in European Capital was treated as an exited
investment at its net asset value on October 1, 2014, the date on
which it was consolidated
into American Capital.
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 the 2009 and 2010 static pool years.
2)
Internal rate of return ("IRR") calculations are based on a
sequence of cash proceeds invested, cash realizations or non-cash
consideration received, and the terminal value of an investment
over time. For active investments, the terminal value is
assumed to be the current fair value. For exited investments,
the terminal value is the total cash realization received upon
exit. Additionally, IRR calculations exclude securities
traded but not yet settled at period end.
3) IRR
calculations are based on a sequence of cash proceeds invested,
cash realizations or non-cash consideration received, and the
terminal value of an investment over time. For exited
investments, the terminal value is the total cash realization
received upon exit. This includes fully exited investments of
existing portfolio companies. Additionally, IRR calculations
exclude securities traded but not yet settled at period end.
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 represent
portfolio company investments in which American Capital, or its
affiliates, have a fully diluted ownership percentage of 50% or
more or have over 50% board representation
at the portfolio company. Includes American Capital Asset
Management, LLC prior to the consolidation of the collateralized
loan obligations. Excludes our investment in European Capital
through September 30, 2014.
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)
Debt, which represents the debt and other liabilities senior to
ACAS and the total of ACAS's debt in each portfolio company's debt
capitalization, divided by Adjusted EBITDA. For portfolio companies
with a nominal Adjusted EBITDA amount,
the portfolio company's maximum debt leverage is limited to 15
times Adjusted EBITDA.
10) Adjusted EBITDA
divided by the total cash interest expense of the portfolio company
during the most recent twelve month period, or when appropriate as
a result of a new debt capital structure, the forecasted twelve
months.
11) Adjusted EBITDA
divided by the total scheduled principal amortization and total
cash interest expense of the portfolio company during the most
recent twelve month period, or when appropriate, the forecasted
twelve months.
12) Excludes
investments in which we own only equity.
13) Excludes
investments in Structured Products, Senior Floating Rate Loans and
our investment in European Capital through September 30, 2014.
14) For the most
recent twelve months, or when appropriate, the forecasted twelve
months.
15) As a percentage
of our total debt investments, excluding Senior Floating Rate
Loans.
16) Weighted
average based on fair value.
17) Weighted
average based on fair value of equity investments.
18) As of the most
recent month end available.
19) Includes
American Capital Asset Management, LLC.
|
SHAREHOLDER CALL
American Capital invites shareholders, analysts and interested
parties to attend the shareholder call on August 6, 2015 at 11:00 am
ET. Callers who do not plan on asking a question and
have access to the internet are encouraged to utilize the free live
webcast at www.AmericanCapital.com. Those who plan on
participating in the Q&A or do not have the internet available
may access the call by dialing (877) 266-8979 (U.S. domestic) or
(412) 902-6605 (international). All callers are asked to dial
in 10-15 minutes prior to the call to register. Please advise
the operator you are dialing in for the American Capital
shareholder call.
A slide presentation will accompany the shareholder call and
will be available at www.AmericanCapital.com. Select the Q2
2015 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 available on our website after the
call on August 6, 2015. In
addition, there will be a phone recording available one hour after
the live call on August 6, 2015
through August 20, 2015. If you
are interested in hearing the recording of the presentation, please
dial (877) 344-7529 (U.S. domestic) or (412) 317-0088
(international). The access code for both domestic and
international callers is 10068971.
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (NASDAQ: ACAS) 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, energy & infrastructure
and structured products. American Capital manages
$23 billion of assets, including
assets on its balance sheet and fee earning assets under management
by affiliated managers, with $81
billion of total assets under management (including levered
assets). Through a wholly owned affiliate, American Capital
manages publicly traded American Capital Agency Corp. (NASDAQ:
AGNC), American Capital Mortgage Investment Corp. (NASDAQ: MTGE)
and American Capital Senior Floating, Ltd. (NASDAQ: ACSF) with
approximately $11 billion of total
net book value. From its eight offices in the U.S.,
Europe and Asia, American Capital and its wholly owned
affiliate, European Capital, will consider investment opportunities
from $10 million to $600
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,
2014 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
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/american-capital-reports-noi-before-income-taxes-of-034-per-diluted-share-net-earnings-of-022-per-diluted-share-and-nav-per-share-of-2035-300124479.html
SOURCE American Capital, Ltd.