BETHESDA, Md., Nov. 4, 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 September 30, 2015 of $108 million, or $0.40 per diluted share, an 8% annualized return
on equity. Consolidated NOI after income taxes for the
quarter ended September 30, 2015 was $75 million, or $0.28 per diluted share. Consolidated net
loss for the quarter ended September 30, 2015 was $(37)
million, or $(0.14) per diluted
share. As of September 30, 2015, net asset value ("NAV")
per share was $20.44, a $0.09 per share increase from the June 30, 2015 NAV per share of $20.35.
Q3 2015 CONSOLIDATED FINANCIAL SUMMARY
- $20.44 NAV per share outstanding
- $0.09 per share increase, or 2%
annualized, over Q2 2015
- $0.40 NOI before income taxes per
diluted share, or $108 million
- 18%, or $0.06 per diluted share,
increase over Q2 2015, or $11
million
- 67%, or $0.16 per diluted share,
increase over Q3 2014, or $42
million
- 8.0% annualized return on equity
- $0.28 NOI after income taxes per
diluted share, or $75 million
- 17%, or $0.04 per diluted share,
increase over Q2 2015, or $8
million
- $(0.14) net loss per diluted
share, or $(37) million
- $0.36 per diluted share, decline
from Q2 2015, or $99 million
- $494 million of cash proceeds
from realizations
- $262 million from Senior Floating
Rate Loans ("SFRLs")
- $691 million in new committed
investments
- $223 million in Senior Floating
Rate Loans
- Funded by drawing on a credit facility
- $177 million in Sponsor Finance
Investments
- $147 million in Structured
Products
- 9.7 million shares of American Capital common stock repurchased
for $135 million
- 3.6% of shares outstanding as of June
30, 2015
- $13.82 average price per
share
- $0.23 per share accretive to
September 30, 2015 NAV per share
"This was an important quarter for American Capital for two
reasons," said Malon Wilkus,
Chairman and Chief Executive Officer. "First, our annualized
pretax per share NOI return on equity improved to 8% this
quarter. Our NOI before income taxes was $108 million, or $0.40 per diluted share, up 67% from the
comparable period in 2014 and reflects our ongoing efforts to
reposition our balance sheet and improve NOI. Second, and
more importantly, we made significant progress on our previously
announced plan to spin-off a new BDC, American Capital Income, to
our shareholders by making our initial filings with the SEC in late
September and last week receiving the IRS private letter ruling for
the tax free nature of the spin-off. In addition to our
regular earnings materials being issued today, we will post a
slide presentation that provides financial forecasts and related
assumptions for American Capital and American Capital Income,
reflecting the spin-off and American Capital's continuing operation
as an asset management company managing our existing funds under
management and American Capital Income."
PORTFOLIO VALUATION
For the quarter ended
September 30, 2015, net unrealized depreciation, before income
taxes, on American Capital's consolidated investment portfolio
totaled $60 million. The
primary components of the net unrealized depreciation were:
- $55 million unrealized
depreciation of American Capital Asset Management primarily due to
a reduction in projected management fees for managing American
Capital Agency Corp. and American Capital Mortgage Investment Corp.
due to a decrease in the equity capital of each company as a result
of share repurchases and realized losses;
- $45 million net unrealized
depreciation of American Capital One Stop Buyouts®
primarily driven by declining performance in one portfolio
company;
- $45 million net unrealized
depreciation of Structured Products investments primarily due to
unrealized depreciation on our CLO investment portfolio as a result
of a decline in forecasted cash flows and lower dealer marks;
- $26 million net unrealized
appreciation of European Capital investments; and
- $70 million reversal of prior
period unrealized depreciation upon realization.
"During the quarter we repurchased 9.7 million shares of our
common stock for $135 million, which
resulted in $0.23 per share of
accretion in the net asset value of our remaining shares," said
John Erickson, Chief Financial
Officer and President, Specialty Finance. "We remain
committed to our previously announced share repurchase
program. If our share price generally remains at current
levels, we would expect our repurchases to aggregate to the high
end of the previously announced range of $300 million to $600 million. In
addition, we expect to undertake a tender for outstanding stock
options in connection with the spin-off transaction, assuming that
we receive the necessary shareholder approval to use our shares for
the tender, and the tender will result in reduced dilution from
stock option exercises."
"We originated $177 million in the
third quarter and an additional $138
million in October of Sponsor Finance investments," said
Brian Graff, President, Private
Finance. "We continue to make strong progress in achieving
our goals for deploying Sponsor Finance assets. Currently, we
are seeing a substantive dislocation in the credit markets due to
increased volatility in the high yield bond market and large banks
digesting previously underwritten credits. As a result, we
have a robust fourth quarter pipeline with many larger than normal
borrowers and opportunities for increasing yields. It is also
worth noting that we have no securities on non-accrual in our
Sponsor Finance portfolio."
PORTFOLIO PERFORMANCE
As of September 30, 2015,
the Company's investments in Senior Floating Rate Loans were
diversified across 257 portfolio companies and 51 industries, with
the average issuer concentration at $8.7
million and no single company representing more than 1.7% 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 September 30, 2015 was
4.2%. As of September 30, 2015, the weighted average
effective interest rate on the consolidated debt investments,
excluding Senior Floating Rate Loans and inclusive of non-accrual
loans, was 8.7%, 10 basis points lower than the June 30, 2015 rate of 8.8%. The weighted
average effective interest rate on European Capital's debt
investments as of September 30, 2015 was 3.7%, 40 basis points
lower than the June 30, 2015 rate of
4.1%. Excluding the impact of debt investments on
non-accrual, the weighted average effective interest rate on
European Capital's debt investments as of September 30, 2015
was 7.6%, 40 basis points lower than the June 30, 2015 rate of 8.0%. The weighted
average effective interest rate on consolidated debt investments as
of September 30, 2015 was 6.5%, 10 basis points higher than
the June 30, 2015 rate of 6.4%.
As of September 30, 2015, excluding European Capital loans,
loans with a fair value of $85
million were on non-accrual, representing 2.0% of total
loans at fair value, compared to $109
million, or 2.7%, of loans at fair value as of June 30, 2015. The $24 million decrease in the fair value of loans
on non-accrual was generally driven by net depreciation of existing
non-accrual loans and the removal of one loan from
non-accrual. Total loans on non-accrual were valued at 47.5%
of cost at the end of the quarter, a 13.7% decrease 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 $94 million, or 2.2%.
As of September 30, 2015, European Capital loans with a
fair value of $42 million were on
non-accrual, representing 21.6% of total European Capital loans at
fair value, compared to $28 million,
or 15.5%, of European Capital loans at fair value as of
June 30, 2015. The $14 million increase in the fair value of
European Capital loans on non-accrual was driven by net
appreciation of one existing non-accrual loan. Total European
Capital loans on non-accrual were valued at 37.1% of cost at the
end of the quarter, an 18.9% increase from the prior quarter.
The estimated loss on total loans at cost was $121 million, or 38.1%.
SHARE REPURCHASE PROGRAM
As previously announced,
American Capital's Board of Directors modified its Share Repurchase
Program beginning in the third quarter of 2015. 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 previously announced spin-off of American
Capital Income, Ltd. by the Company.
During the third quarter of 2015, American Capital made open
market purchases of 9.7 million shares, or 3.6% of the shares
outstanding as of June 30, 2015, for
an aggregate price of $135 million,
of American Capital common stock at an average price of
$13.82 per share. Since the
inception of the program in August
2011, American Capital has made open market purchases of
117.8 million shares, or $1.4
billion, of American Capital common stock at an average
price of $12.05 per share. This
represents 34% of shares outstanding immediately prior to the
launch of the program.
AMERICAN CAPITAL,
LTD.
|
CONSOLIDATED
BALANCE SHEETS
|
As of September
30, 2015, June 30, 2015 and December 31, 2014
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q2
|
|
Q3 2015 Versus Q2
2015
|
|
Q4
|
|
Q3 2015 Versus
Q4 2014
|
|
2015
|
|
2015
|
|
$
|
|
%
|
|
2014
|
|
$
|
|
%
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair
value (cost of $6,921, $7,013 and $6,417, respectively)
|
$
|
7,106
|
|
|
$
|
7,260
|
|
|
$
|
(154)
|
|
|
(2%)
|
|
$
|
6,280
|
|
|
$
|
826
|
|
|
13%
|
Cash and cash
equivalents
|
244
|
|
|
274
|
|
|
(30)
|
|
|
(11%)
|
|
676
|
|
|
(432)
|
|
|
(64%)
|
Restricted cash and
cash equivalents
|
97
|
|
|
78
|
|
|
19
|
|
|
24%
|
|
167
|
|
|
(70)
|
|
|
(42%)
|
Interest and dividend
receivable
|
53
|
|
|
50
|
|
|
3
|
|
|
6%
|
|
46
|
|
|
7
|
|
|
15%
|
Deferred tax asset,
net
|
263
|
|
|
264
|
|
|
(1)
|
|
|
—%
|
|
354
|
|
|
(91)
|
|
|
(26%)
|
Trade date settlement
receivable
|
304
|
|
|
32
|
|
|
272
|
|
|
850%
|
|
4
|
|
|
300
|
|
|
NM
|
Other
|
101
|
|
|
127
|
|
|
(26)
|
|
|
(20%)
|
|
113
|
|
|
(12)
|
|
|
(11%)
|
Total assets
|
$
|
8,168
|
|
|
$
|
8,085
|
|
|
$
|
83
|
|
|
1%
|
|
$
|
7,640
|
|
|
$
|
528
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt
|
$
|
2,649
|
|
|
$
|
2,107
|
|
|
$
|
542
|
|
|
26%
|
|
$
|
1,703
|
|
|
$
|
946
|
|
|
56%
|
Trade date settlement
liability
|
77
|
|
|
402
|
|
|
(325)
|
|
|
(81%)
|
|
191
|
|
|
(114)
|
|
|
(60%)
|
Other
|
135
|
|
|
120
|
|
|
15
|
|
|
13%
|
|
274
|
|
|
(139)
|
|
|
(51%)
|
Total liabilities
|
2,861
|
|
|
2,629
|
|
|
232
|
|
|
9%
|
|
2,168
|
|
|
693
|
|
|
32%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 263.3, 271.9 and 271.1 issued
and 259.6, 268.1 and 266.9 outstanding, respectively
|
3
|
|
|
3
|
|
|
—
|
|
|
—%
|
|
3
|
|
|
—
|
|
|
—%
|
Capital in excess of
par value
|
6,112
|
|
|
6,231
|
|
|
(119)
|
|
|
(2%)
|
|
6,246
|
|
|
(134)
|
|
|
(2%)
|
Cumulative
translation adjustment, net of tax
|
(109)
|
|
|
(116)
|
|
|
7
|
|
|
6%
|
|
(38)
|
|
|
(71)
|
|
|
(187%)
|
Distributions in
excess of net realized earnings
|
(806)
|
|
|
(824)
|
|
|
18
|
|
|
2%
|
|
(505)
|
|
|
(301)
|
|
|
(60%)
|
Net unrealized
appreciation (depreciation) of investments
|
107
|
|
|
162
|
|
|
(55)
|
|
|
(34%)
|
|
(234)
|
|
|
341
|
|
|
NM
|
Total shareholders' equity
|
5,307
|
|
|
5,456
|
|
|
(149)
|
|
|
(3%)
|
|
5,472
|
|
|
(165)
|
|
|
(3%)
|
Total liabilities and shareholders' equity
|
$
|
8,168
|
|
|
$
|
8,085
|
|
|
$
|
83
|
|
|
1%
|
|
$
|
7,640
|
|
|
$
|
528
|
|
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV per common share
outstanding
|
$
|
20.44
|
|
|
$
|
20.35
|
|
|
$
|
0.09
|
|
|
—%
|
|
$
|
20.50
|
|
|
$
|
(0.06)
|
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________
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
September 30, 2015, June 30, 2015 and September 30,
2014
|
(in millions,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q2
|
|
Q3 2015 Versus
Q2 2015
|
|
Q3
|
|
Q3 2015 Versus
Q3 2014
|
|
2015
|
|
2015
|
|
$
|
|
%
|
|
2014
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
$
|
165
|
|
|
$
|
151
|
|
|
$
|
14
|
|
|
9%
|
|
$
|
115
|
|
|
$
|
50
|
|
|
43%
|
Fee income
|
11
|
|
|
17
|
|
|
(6)
|
|
|
(35%)
|
|
14
|
|
|
(3)
|
|
|
(21%)
|
Total operating
revenue
|
176
|
|
|
168
|
|
|
8
|
|
|
5%
|
|
129
|
|
|
47
|
|
|
36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
21
|
|
|
20
|
|
|
1
|
|
|
5%
|
|
14
|
|
|
7
|
|
|
50%
|
Salaries, benefits
and stock-based compensation
|
31
|
|
|
32
|
|
|
(1)
|
|
|
(3%)
|
|
37
|
|
|
(6)
|
|
|
(16%)
|
European Capital
management fees
|
3
|
|
|
4
|
|
|
(1)
|
|
|
(25%)
|
|
—
|
|
|
3
|
|
|
100%
|
General and
administrative
|
13
|
|
|
15
|
|
|
(2)
|
|
|
(13%)
|
|
12
|
|
|
1
|
|
|
8%
|
Total operating
expenses
|
68
|
|
|
71
|
|
|
(3)
|
|
|
(4%)
|
|
63
|
|
|
5
|
|
|
8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME BEFORE INCOME TAXES
|
108
|
|
|
97
|
|
|
11
|
|
|
11%
|
|
66
|
|
|
42
|
|
|
64%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
provision
|
(33)
|
|
|
(30)
|
|
|
(3)
|
|
|
(10%)
|
|
(15)
|
|
|
(18)
|
|
|
(120%)
|
NET OPERATING
INCOME
|
75
|
|
|
67
|
|
|
8
|
|
|
12%
|
|
51
|
|
|
24
|
|
|
47%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized (loss)
gain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio company
investments
|
(68)
|
|
|
(284)
|
|
|
216
|
|
|
76%
|
|
46
|
|
|
(114)
|
|
|
NM
|
Foreign currency
transactions
|
(10)
|
|
|
3
|
|
|
(13)
|
|
|
NM
|
|
(8)
|
|
|
(2)
|
|
|
(25%)
|
Derivative agreements
and other
|
(2)
|
|
|
46
|
|
|
(48)
|
|
|
NM
|
|
(44)
|
|
|
42
|
|
|
95%
|
Tax
benefit
|
23
|
|
|
12
|
|
|
11
|
|
|
92%
|
|
17
|
|
|
6
|
|
|
35%
|
Total net realized
(loss) gain
|
(57)
|
|
|
(223)
|
|
|
166
|
|
|
74%
|
|
11
|
|
|
(68)
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
(depreciation) appreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio company
investments
|
(60)
|
|
|
140
|
|
|
(200)
|
|
|
NM
|
|
135
|
|
|
(195)
|
|
|
NM
|
Foreign currency
translation
|
(2)
|
|
|
13
|
|
|
(15)
|
|
|
NM
|
|
(66)
|
|
|
64
|
|
|
97%
|
Derivative agreements
and other
|
1
|
|
|
65
|
|
|
(64)
|
|
|
(98%)
|
|
(11)
|
|
|
12
|
|
|
NM
|
Tax benefit
(provision)
|
6
|
|
|
—
|
|
|
6
|
|
|
100%
|
|
(6)
|
|
|
12
|
|
|
NM
|
Total net unrealized
(depreciation) appreciation
|
(55)
|
|
|
218
|
|
|
(273)
|
|
|
NM
|
|
52
|
|
|
(107)
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (DECREASE)
INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ("NET (LOSS) EARNINGS")
|
$
|
(37)
|
|
|
$
|
62
|
|
|
$
|
(99)
|
|
|
NM
|
|
$
|
114
|
|
|
$
|
(151)
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME BEFORE INCOME TAXES PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.40
|
|
|
$
|
0.36
|
|
|
$
|
0.04
|
|
|
11%
|
|
$
|
0.25
|
|
|
$
|
0.15
|
|
|
60%
|
Diluted
|
$
|
0.40
|
|
|
$
|
0.34
|
|
|
$
|
0.06
|
|
|
18%
|
|
$
|
0.24
|
|
|
$
|
0.16
|
|
|
67%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.28
|
|
|
$
|
0.25
|
|
|
$
|
0.03
|
|
|
12%
|
|
$
|
0.19
|
|
|
$
|
0.09
|
|
|
47%
|
Diluted
|
$
|
0.28
|
|
|
$
|
0.24
|
|
|
$
|
0.04
|
|
|
17%
|
|
$
|
0.18
|
|
|
$
|
0.10
|
|
|
56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REALIZED
EARNINGS (LOSS) PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.07
|
|
|
$
|
(0.57)
|
|
|
$
|
0.64
|
|
|
NM
|
|
$
|
0.23
|
|
|
$
|
(0.16)
|
|
|
(70%)
|
Diluted
|
$
|
0.07
|
|
|
$
|
(0.55)
|
|
|
$
|
0.62
|
|
|
NM
|
|
$
|
0.22
|
|
|
$
|
(0.15)
|
|
|
(68%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET (LOSS)
EARNINGS PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.14)
|
|
|
$
|
0.23
|
|
|
$
|
(0.37)
|
|
|
NM
|
|
$
|
0.43
|
|
|
$
|
(0.57)
|
|
|
NM
|
Diluted
|
$
|
(0.14)
|
|
|
$
|
0.22
|
|
|
$
|
(0.36)
|
|
|
NM
|
|
$
|
0.41
|
|
|
$
|
(0.55)
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OF COMMON STOCK OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
267.7
|
|
|
272.4
|
|
|
(4.7)
|
|
|
(2%)
|
|
267.1
|
|
|
0.6
|
|
|
—%
|
Diluted
|
267.7
|
|
|
283.4
|
|
|
(15.7)
|
|
|
(6%)
|
|
279.9
|
|
|
(12.2)
|
|
|
(4%)
|
______________________________
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
September 30, 2015, June 30, 2015 and September 30,
2014
|
(in millions,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2015
Versus
Q2 2015
|
|
|
|
Q3 2015 Versus
Q3 2014
|
|
Q3
2015
|
|
Q2
2015
|
|
$
|
|
%
|
|
Q3
2014
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Capital
Total Assets at Fair Value
|
$
|
8,168
|
|
|
$
|
8,085
|
|
|
$
|
83
|
|
|
1%
|
|
$
|
7,176
|
|
|
$
|
992
|
|
|
14%
|
Externally Managed
Assets at Fair Value(1)
|
71,943
|
|
|
73,389
|
|
|
(1,446)
|
|
|
(2%)
|
|
73,304
|
|
|
(1,361)
|
|
|
(2%)
|
Total
|
$
|
80,111
|
|
|
$
|
81,474
|
|
|
$
|
(1,363)
|
|
|
(2%)
|
|
$
|
80,480
|
|
|
$
|
(369)
|
|
|
—%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-Party Earning
Assets Under Management(2)
|
$
|
15,105
|
|
|
$
|
14,667
|
|
|
$
|
438
|
|
|
3%
|
|
$
|
14,044
|
|
|
$
|
1,061
|
|
|
8%
|
Total Earning Assets
Under Management(3)
|
$
|
23,273
|
|
|
$
|
22,752
|
|
|
$
|
521
|
|
|
2%
|
|
$
|
21,220
|
|
|
$
|
2,053
|
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Senior Debt
|
$
|
303
|
|
|
$
|
393
|
|
|
$
|
(90)
|
|
|
(23%)
|
|
$
|
928
|
|
|
$
|
(625)
|
|
|
(67%)
|
Second Lien
Senior Debt
|
138
|
|
|
94
|
|
|
44
|
|
|
47%
|
|
129
|
|
|
9
|
|
|
7%
|
Mezzanine
Debt
|
14
|
|
|
4
|
|
|
10
|
|
|
250%
|
|
4
|
|
|
10
|
|
|
250%
|
Preferred
Equity
|
4
|
|
|
89
|
|
|
(85)
|
|
|
(96%)
|
|
23
|
|
|
(19)
|
|
|
(83%)
|
Common
Equity
|
85
|
|
|
241
|
|
|
(156)
|
|
|
(65%)
|
|
207
|
|
|
(122)
|
|
|
(59%)
|
Structured
Products
|
147
|
|
|
155
|
|
|
(8)
|
|
|
(5%)
|
|
152
|
|
|
(5)
|
|
|
(3%)
|
Total by Security
Type
|
$
|
691
|
|
|
$
|
976
|
|
|
$
|
(285)
|
|
|
(29%)
|
|
$
|
1,443
|
|
|
$
|
(752)
|
|
|
(52%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Floating Rate
Loans
|
$
|
223
|
|
|
$
|
300
|
|
|
$
|
(77)
|
|
|
(26%)
|
|
$
|
825
|
|
|
$
|
(602)
|
|
|
(73%)
|
Sponsor Finance and
Other Investments
|
191
|
|
|
90
|
|
|
101
|
|
|
112%
|
|
155
|
|
|
36
|
|
|
23%
|
Structured
Products
|
147
|
|
|
155
|
|
|
(8)
|
|
|
(5%)
|
|
152
|
|
|
(5)
|
|
|
(3%)
|
Investments in ACAM
and Fund Development
|
88
|
|
|
69
|
|
|
19
|
|
|
28%
|
|
201
|
|
|
(113)
|
|
|
(56%)
|
European
Capital
|
14
|
|
|
179
|
|
|
(165)
|
|
|
(92%)
|
|
—
|
|
|
14
|
|
|
100%
|
Add-on Financing for
Growth and Working Capital
|
27
|
|
|
34
|
|
|
(7)
|
|
|
(21%)
|
|
106
|
|
|
(79)
|
|
|
(75%)
|
Add-on Financing for
Distressed Situations
|
1
|
|
|
4
|
|
|
(3)
|
|
|
(75%)
|
|
—
|
|
|
1
|
|
|
100%
|
Add-on Financing for
ACE Buybacks
|
—
|
|
|
145
|
|
|
(145)
|
|
|
(100%)
|
|
—
|
|
|
—
|
|
|
—%
|
Add-on Financing for
Recapitalizations, not Including Distressed Investments
|
—
|
|
|
—
|
|
|
—
|
|
|
—%
|
|
4
|
|
|
(4)
|
|
|
(100%)
|
Total by
Use
|
$
|
691
|
|
|
$
|
976
|
|
|
$
|
(285)
|
|
|
(29%)
|
|
$
|
1,443
|
|
|
$
|
(752)
|
|
|
(52%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realizations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Scheduled Principal
Amortization
|
$
|
192
|
|
|
$
|
139
|
|
|
$
|
53
|
|
|
38%
|
|
$
|
12
|
|
|
$
|
180
|
|
|
NM
|
Equity
Investments
|
177
|
|
|
90
|
|
|
87
|
|
|
97%
|
|
656
|
|
|
(479)
|
|
|
(73%)
|
Loan Syndications and
Sales
|
75
|
|
|
206
|
|
|
(131)
|
|
|
(64%)
|
|
32
|
|
|
43
|
|
|
134%
|
Principal
Prepayments
|
41
|
|
|
147
|
|
|
(106)
|
|
|
(72%)
|
|
332
|
|
|
(291)
|
|
|
(88%)
|
Payment of Accrued
PIK Notes and Dividends and Accreted OID
|
9
|
|
|
12
|
|
|
(3)
|
|
|
(25%)
|
|
110
|
|
|
(101)
|
|
|
(92%)
|
Total by
Source
|
$
|
494
|
|
|
$
|
594
|
|
|
$
|
(100)
|
|
|
(17%)
|
|
$
|
1,142
|
|
|
$
|
(648)
|
|
|
(57%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Floating Rate
Loans
|
$
|
262
|
|
|
$
|
186
|
|
|
$
|
76
|
|
|
41%
|
|
$
|
57
|
|
|
$
|
205
|
|
|
360%
|
Sponsor Finance and
Other Investments
|
99
|
|
|
33
|
|
|
66
|
|
|
200%
|
|
234
|
|
|
(135)
|
|
|
(58%)
|
European
Capital(4)
|
72
|
|
|
175
|
|
|
(103)
|
|
|
(59%)
|
|
127
|
|
|
(55)
|
|
|
(43%)
|
American Capital
Asset Management
|
32
|
|
|
3
|
|
|
29
|
|
|
967%
|
|
2
|
|
|
30
|
|
|
NM
|
Structured
Products
|
22
|
|
|
99
|
|
|
(77)
|
|
|
(78%)
|
|
83
|
|
|
(61)
|
|
|
(73%)
|
American Capital One
Stop Buyouts®
|
7
|
|
|
98
|
|
|
(91)
|
|
|
(93%)
|
|
639
|
|
|
(632)
|
|
|
(99%)
|
Total by Business
Line
|
$
|
494
|
|
|
$
|
594
|
|
|
$
|
(100)
|
|
|
(17%)
|
|
$
|
1,142
|
|
|
$
|
(648)
|
|
|
(57%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation,
Depreciation, Gain and Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Realized
Gain
|
$
|
46
|
|
|
$
|
8
|
|
|
$
|
38
|
|
|
475%
|
|
$
|
110
|
|
|
$
|
(64)
|
|
|
(58%)
|
Gross Realized
Loss
|
(114)
|
|
|
(292)
|
|
|
178
|
|
|
61%
|
|
(64)
|
|
|
(50)
|
|
|
(78%)
|
Portfolio Net
Realized (Loss) Gain
|
(68)
|
|
|
(284)
|
|
|
216
|
|
|
76%
|
|
46
|
|
|
(114)
|
|
|
NM
|
Foreign Currency
Transactions
|
(10)
|
|
|
3
|
|
|
(13)
|
|
|
NM
|
|
(8)
|
|
|
(2)
|
|
|
(25%)
|
Derivative
Agreements
|
(2)
|
|
|
46
|
|
|
(48)
|
|
|
NM
|
|
(44)
|
|
|
42
|
|
|
95%
|
Tax
Benefit
|
23
|
|
|
12
|
|
|
11
|
|
|
92%
|
|
17
|
|
|
6
|
|
|
35%
|
Net Realized (Loss)
Gain
|
(57)
|
|
|
(223)
|
|
|
166
|
|
|
74%
|
|
11
|
|
|
(68)
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unrealized
(Depreciation) Appreciation of American Capital One Stop
Buyouts®
|
(45)
|
|
|
(9)
|
|
|
(36)
|
|
|
(400%)
|
|
110
|
|
|
(155)
|
|
|
NM
|
Net Unrealized
Appreciation (Depreciation) of American Capital Sponsor Finance and
Other Investments
|
8
|
|
|
(5)
|
|
|
13
|
|
|
NM
|
|
19
|
|
|
(11)
|
|
|
(58%)
|
Net Unrealized
Appreciation of European Capital Investments
|
26
|
|
|
6
|
|
|
20
|
|
|
333%
|
|
—
|
|
|
26
|
|
|
100%
|
Net Unrealized
Appreciation of Investment in European Capital
|
—
|
|
|
—
|
|
|
—
|
|
|
—%
|
|
37
|
|
|
(37)
|
|
|
(100%)
|
Net Unrealized
Appreciation of Investment in European Capital Foreign Currency
Translation
|
—
|
|
|
—
|
|
|
—
|
|
|
—%
|
|
12
|
|
|
(12)
|
|
|
(100%)
|
Net Unrealized
Depreciation of ACAM
|
(55)
|
|
|
(10)
|
|
|
(45)
|
|
|
(450%)
|
|
—
|
|
|
(55)
|
|
|
(100%)
|
Net Unrealized
Depreciation of Senior Floating Rate Loans
|
(19)
|
|
|
(11)
|
|
|
(8)
|
|
|
(73%)
|
|
(16)
|
|
|
(3)
|
|
|
(19%)
|
Net Unrealized
(Depreciation) Appreciation of Structured Products
|
(45)
|
|
|
(11)
|
|
|
(34)
|
|
|
(309%)
|
|
8
|
|
|
(53)
|
|
|
NM
|
Reversal of Prior
Period Net Unrealized Depreciation (Appreciation) Upon
Realization
|
70
|
|
|
180
|
|
|
(110)
|
|
|
(61%)
|
|
(35)
|
|
|
105
|
|
|
NM
|
Net Unrealized
(Depreciation) Appreciation of Portfolio Company
Investments
|
(60)
|
|
|
140
|
|
|
(200)
|
|
|
NM
|
|
135
|
|
|
(195)
|
|
|
NM
|
Foreign Currency
Translation - Investment in European Capital
|
—
|
|
|
—
|
|
|
—
|
|
|
—%
|
|
(63)
|
|
|
63
|
|
|
100%
|
Foreign Currency
Translation - European Capital Investments
|
(4)
|
|
|
11
|
|
|
(15)
|
|
|
NM
|
|
—
|
|
|
(4)
|
|
|
(100%)
|
Foreign Currency
Translation - Other
|
2
|
|
|
2
|
|
|
—
|
|
|
—%
|
|
(3)
|
|
|
5
|
|
|
NM
|
Derivative Agreements
and Other
|
1
|
|
|
65
|
|
|
(64)
|
|
|
(98%)
|
|
(11)
|
|
|
12
|
|
|
NM
|
Tax Benefit
(Provision)
|
6
|
|
|
—
|
|
|
6
|
|
|
100%
|
|
(6)
|
|
|
12
|
|
|
NM
|
Net Unrealized
(Depreciation) Appreciation of Investments
|
(55)
|
|
|
218
|
|
|
(273)
|
|
|
NM
|
|
52
|
|
|
(107)
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Gains, Losses,
Appreciation and Depreciation
|
$
|
(112)
|
|
|
$
|
(5)
|
|
|
$
|
(107)
|
|
|
NM
|
|
$
|
63
|
|
|
$
|
(175)
|
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV per
Share
|
$
|
20.44
|
|
|
$
|
20.35
|
|
|
$
|
0.09
|
|
|
—%
|
|
$
|
20.54
|
|
|
$
|
(0.10)
|
|
|
—%
|
Market
Capitalization
|
$
|
3,157
|
|
|
$
|
3,633
|
|
|
$
|
(476)
|
|
|
(13%)
|
|
$
|
3,751
|
|
|
$
|
(594)
|
|
|
(16%)
|
Total Enterprise
Value(5)
|
$
|
5,562
|
|
|
$
|
5,466
|
|
|
$
|
96
|
|
|
2%
|
|
$
|
4,675
|
|
|
$
|
887
|
|
|
19%
|
Asset Coverage
Ratio
|
300%
|
|
|
358%
|
|
|
|
|
|
|
423%
|
|
|
|
|
|
Debt to Equity
Ratio
|
0.5x
|
|
0.4x
|
|
|
|
|
|
0.3x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on SFRLs at Period End
|
4.2%
|
|
|
4.2%
|
|
|
|
|
|
|
4.4%
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on Debt Investments, Excluding SFRLs, at
Period End
|
8.7%
|
|
|
8.8%
|
|
|
|
|
|
|
9.1%
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on European Capital's Debt Investments at
Period End
|
3.7%
|
|
|
4.1%
|
|
|
|
|
|
|
NA
|
|
|
|
|
Weighted Average
Effective Interest Rate on All Debt Investments at Period
End
|
6.5%
|
|
|
6.4%
|
|
|
|
|
|
|
6.8%
|
|
|
|
|
|
Loans on Non-Accrual
at Cost
|
$
|
342
|
|
|
$
|
332
|
|
|
$
|
10
|
|
|
3%
|
|
$
|
256
|
|
|
$
|
86
|
|
|
34%
|
Loans on Non-Accrual
at Fair Value
|
$
|
127
|
|
|
$
|
137
|
|
|
$
|
(10)
|
|
|
(7%)
|
|
$
|
172
|
|
|
$
|
(45)
|
|
|
(26%)
|
Non-Accrual Loans at
Cost as a Percentage of Total Loans at Cost
|
7.3%
|
|
|
7.4%
|
|
|
|
|
|
|
8.3%
|
|
|
|
|
|
Non-Accrual Loans at
Fair Value as a Percentage of Total Loans at Fair Value
|
2.9%
|
|
|
3.2%
|
|
|
|
|
|
|
5.7%
|
|
|
|
|
|
Non-Accruing Loans at
Fair Value as a Percentage of Non-Accruing Loans at Cost
|
37.1%
|
|
|
41.3%
|
|
|
|
|
|
|
67.2%
|
|
|
|
|
|
Estimated
Loss(6)
|
$
|
215
|
|
|
$
|
227
|
|
|
$
|
(12)
|
|
|
(5%)
|
|
$
|
108
|
|
|
$
|
107
|
|
|
99%
|
Estimated Loss as a
Percentage of Total Loans at Cost
|
4.7%
|
|
|
5.1%
|
|
|
|
|
|
|
3.7%
|
|
|
|
|
|
Past Due Loans at
Cost
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—%
|
|
$
|
45
|
|
|
$
|
(45)
|
|
|
(100%)
|
Debt to Equity
Conversions at Cost
|
$
|
3
|
|
|
$
|
—
|
|
|
$
|
3
|
|
|
100%
|
|
$
|
—
|
|
|
$
|
3
|
|
|
100%
|
Return on Average
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTM Net Operating
Income Before Income Taxes Return on Average Shareholders'
Equity
|
6.3%
|
|
|
5.6%
|
|
|
|
|
|
|
3.3%
|
|
|
|
|
|
LTM Net Operating
Income Return on Average Shareholders' Equity
|
4.2%
|
|
|
3.7%
|
|
|
|
|
|
|
2.3%
|
|
|
|
|
|
LTM Net Realized
(Loss) Earnings Return on Average Shareholders' Equity
|
(2.6%)
|
|
|
(1.7%)
|
|
|
|
|
|
|
3.1%
|
|
|
|
|
|
LTM Net Earnings
Return on Average Shareholders' Equity
|
1.4%
|
|
|
4.2%
|
|
|
|
|
|
|
4.1%
|
|
|
|
|
|
Current Quarter
Annualized Net Operating Income Before Income Taxes Return on
Average Shareholders' Equity
|
8.0%
|
|
|
7.1%
|
|
|
|
|
|
|
5.0%
|
|
|
|
|
|
Current Quarter
Annualized Net Operating Income Return on Average Shareholders'
Equity
|
5.6%
|
|
|
4.9%
|
|
|
|
|
|
|
3.8%
|
|
|
|
|
|
Current Quarter
Annualized Net Realized Earnings (Loss) Return on Average
Shareholders' Equity
|
1.3%
|
|
|
(11.5%)
|
|
|
|
|
|
|
4.6%
|
|
|
|
|
|
Current Quarter
Annualized Net (Loss) Earnings Return on Average Shareholders'
Equity
|
(2.7%)
|
|
|
4.6%
|
|
|
|
|
|
|
8.5%
|
|
|
|
|
|
______________________________
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, ACAS CLO 2015-2, ACAS CLO Fund I,
European Capital UK SME Debt 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) Includes
realizations from American Capital's investment in European Capital
during the three months ended September 30, 2014. Includes European
Capital investment portfolio realizations during the three months
ended September 30, 2015 and June 30, 2015,
respectively.
|
(5) Enterprise
value is calculated as debt at cost plus market capitalization less
cash and cash equivalents on hand.
|
(6) Net
accumulated depreciation on non-accrual loans plus realized losses
on loans during the period presented.
|
|
Static Pool
(1)
|
American Capital
Portfolio Statistics
($ in millions, unaudited)
|
1997-
2004
|
2005
|
2006
|
2007
|
2008
|
2011
|
2012
|
2013
|
2014
|
2015
|
SFRL
|
Aggregate
|
IRR of All
Investments(2)
|
12.3%
|
|
13.6%
|
|
10.5%
|
|
(2.0%)
|
|
10.0%
|
|
12.5%
|
|
(14.8%)
|
|
39.8%
|
|
9.8%
|
|
3.9%
|
|
3.1%
|
|
8.9%
|
|
IRR of Exited
Investments(3)
|
13.2%
|
|
17.8%
|
|
8.9%
|
|
(3.8%)
|
|
9.1%
|
|
21.9%
|
|
(67.8%)
|
|
13.0%
|
|
10.2%
|
|
5.6%
|
|
N/M
|
9.2%
|
|
IRR of Equity
Investments(2)(4)(5)
|
19.1%
|
|
13.6%
|
|
13.5%
|
|
(8.2%)
|
|
20.6%
|
|
3.5%
|
|
(99.2%)
|
|
142.7%
|
|
30.9%
|
|
N/A
|
N/A
|
11.0%
|
|
IRR of Exited Equity
Investments(3)(4)(5)
|
24.1%
|
|
28.6%
|
|
12.4%
|
|
(7.6%)
|
|
19.3%
|
|
35.1%
|
|
NM
|
N/A
|
N/A
|
N/A
|
N/A
|
15.6%
|
|
IRR of All One Stop
Buyout Investments(2)(19)
|
11.6%
|
|
26.5%
|
|
12.6%
|
|
2.0%
|
|
15.8%
|
|
(30.5%)
|
|
(21.7%)
|
|
198.1%
|
|
N/A
|
N/A
|
N/A
|
12.8%
|
|
IRR of All One Stop
Buyout Equity Investments(2)(4)(5)(19)
|
17.3%
|
|
37.3%
|
|
15.2%
|
|
(8.0%)
|
|
16.0%
|
|
(46.9%)
|
|
(99.2%)
|
|
197.9%
|
|
N/A
|
N/A
|
N/A
|
16.2%
|
|
IRR of Current One
Stop Buyout Investments(2)(19)
|
(0.9%)
|
|
23.9%
|
|
10.5%
|
|
(0.6%)
|
|
24.9%
|
|
(30.5%)
|
|
(21.7%)
|
|
198.1%
|
|
N/A
|
N/A
|
N/A
|
8.4%
|
|
IRR of Exited One
Stop Buyout Investments(3)
|
13.0%
|
|
21.2%
|
|
12.0%
|
|
2.0%
|
|
15.8%
|
|
N/A
|
NM
|
NM
|
N/A
|
N/A
|
N/A
|
12.4%
|
|
Committed
Investments(7)
|
$
|
6,189
|
|
$
|
5,675
|
|
$
|
5,422
|
|
$
|
7,609
|
|
$
|
1,072
|
|
$
|
233
|
|
$
|
894
|
|
$
|
370
|
|
$
|
1,263
|
|
$
|
647
|
|
$
|
3,016
|
|
$
|
32,390
|
|
Total Exits and
Prepayments of Committed Investments(7)
|
$
|
5,919
|
|
$
|
4,866
|
|
$
|
4,894
|
|
$
|
6,647
|
|
$
|
856
|
|
$
|
168
|
|
$
|
443
|
|
$
|
164
|
|
$
|
401
|
|
$
|
80
|
|
$
|
494
|
|
$
|
24,932
|
|
Total Interest,
Dividends and Fees Collected
|
$
|
2,148
|
|
$
|
1,753
|
|
$
|
1,631
|
|
$
|
1,623
|
|
$
|
466
|
|
$
|
32
|
|
$
|
102
|
|
$
|
72
|
|
$
|
123
|
|
$
|
15
|
|
$
|
96
|
|
$
|
8,061
|
|
Total Net Realized
(Loss) Gain on Investments
|
$
|
(119)
|
|
$
|
387
|
|
$
|
(278)
|
|
$
|
(1,549)
|
|
$
|
(100)
|
|
$
|
11
|
|
$
|
(165)
|
|
$
|
(1)
|
|
$
|
1
|
|
$
|
—
|
|
$
|
(3)
|
|
$
|
(1,816)
|
|
Current Cost of
Investments
|
$
|
271
|
|
$
|
555
|
|
$
|
352
|
|
$
|
620
|
|
$
|
159
|
|
$
|
51
|
|
$
|
408
|
|
$
|
212
|
|
$
|
798
|
|
$
|
541
|
|
$
|
2,259
|
|
$
|
6,226
|
|
Current Fair Value of
Investments
|
$
|
144
|
|
$
|
1,185
|
|
$
|
328
|
|
$
|
462
|
|
$
|
176
|
|
$
|
35
|
|
$
|
314
|
|
$
|
342
|
|
$
|
805
|
|
$
|
532
|
|
$
|
2,227
|
|
$
|
6,550
|
|
Current Fair Value of
Investments as a % of Total Investments at Fair Value
|
2.2%
|
|
18.1%
|
|
5.0%
|
|
7.1%
|
|
2.7%
|
|
0.5%
|
|
4.8%
|
|
5.2%
|
|
12.3%
|
|
8.1%
|
|
34.0%
|
|
100.0%
|
|
Net Unrealized
(Depreciation) Appreciation
|
$
|
(127)
|
|
$
|
630
|
|
$
|
(24)
|
|
$
|
(158)
|
|
$
|
17
|
|
$
|
(16)
|
|
$
|
(94)
|
|
$
|
130
|
|
$
|
7
|
|
$
|
(9)
|
|
$
|
(32)
|
|
$
|
324
|
|
Non-Accruing Loans at
Cost
|
$
|
3
|
|
$
|
9
|
|
$
|
13
|
|
$
|
122
|
|
$
|
4
|
|
$
|
—
|
|
$
|
20
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
8
|
|
$
|
179
|
|
Non-Accruing Loans at
Fair Value
|
$
|
1
|
|
$
|
—
|
|
$
|
13
|
|
$
|
59
|
|
$
|
5
|
|
$
|
—
|
|
$
|
4
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3
|
|
$
|
85
|
|
Equity Interest at
Fair Value(4)
|
$
|
75
|
|
$
|
1,087
|
|
$
|
217
|
|
$
|
94
|
|
$
|
58
|
|
$
|
11
|
|
$
|
10
|
|
$
|
202
|
|
$
|
54
|
|
$
|
1
|
|
N/A
|
$
|
1,809
|
|
Debt to Adjusted
EBITDA(8)(9)(12)(13)(16)
|
5.3
|
|
0.6
|
|
7.3
|
|
4.6
|
|
5.7
|
|
—
|
|
6.1
|
|
6.4
|
|
5.3
|
|
6.0
|
|
N/A
|
4.0
|
|
Interest
Coverage(10)(12)(13)(16)
|
1.7
|
|
0.1
|
|
5.7
|
|
2.0
|
|
1.9
|
|
—
|
|
2.3
|
|
2.5
|
|
3.2
|
|
2.1
|
|
N/A
|
1.8
|
|
Debt Service
Coverage(11)(12)(13)(16)
|
1.3
|
|
0.1
|
|
2.9
|
|
1.9
|
|
1.5
|
|
—
|
|
2.2
|
|
2.2
|
|
2.3
|
|
1.9
|
|
N/A
|
1.4
|
|
Average Age of
Companies(13)(16)
|
40
yrs
|
11
yrs
|
45
yrs
|
40
yrs
|
22
yrs
|
5 yrs
|
20
yrs
|
21
yrs
|
26
yrs
|
30 yrs
|
N/A
|
24
yrs
|
Diluted Ownership
Percentage(4)(17)
|
95%
|
|
93%
|
|
82%
|
|
83%
|
|
83%
|
|
90%
|
|
99%
|
|
79%
|
|
4%
|
|
5%
|
|
N/A
|
86%
|
|
Average
Revenue(13)(14)(16)
|
$
|
51
|
|
$
|
230
|
|
$
|
170
|
|
$
|
89
|
|
$
|
33
|
|
$
|
—
|
|
$
|
216
|
|
$
|
314
|
|
$
|
292
|
|
$
|
642
|
|
N/A
|
$
|
247
|
|
Average Adjusted
EBITDA(8)(13)(16)
|
$
|
9
|
|
$
|
102
|
|
$
|
33
|
|
$
|
17
|
|
$
|
15
|
|
$
|
—
|
|
$
|
46
|
|
$
|
34
|
|
$
|
65
|
|
$
|
31
|
|
N/A
|
$
|
57
|
|
Total
Revenue(13)(14)
|
$
|
836
|
|
$
|
561
|
|
$
|
2,412
|
|
$
|
1,703
|
|
$
|
57
|
|
$
|
—
|
|
$
|
972
|
|
$
|
2,115
|
|
$
|
4,965
|
|
$
|
6,830
|
|
N/A
|
$
|
20,451
|
|
Total Adjusted
EBITDA(8)(13)
|
$
|
103
|
|
$
|
142
|
|
$
|
30
|
|
$
|
115
|
|
$
|
26
|
|
$
|
—
|
|
$
|
275
|
|
$
|
344
|
|
$
|
1,287
|
|
$
|
448
|
|
N/A
|
$
|
2,770
|
|
% of Senior
Loans(12)(13)(15)
|
32%
|
|
9%
|
|
6%
|
|
54%
|
|
32%
|
|
100%
|
|
53%
|
|
100%
|
|
100%
|
|
100%
|
|
N/A
|
73%
|
|
% of Loans with
Lien(12)(13)(15)
|
99%
|
|
64%
|
|
100%
|
|
93%
|
|
40%
|
|
100%
|
|
100%
|
|
81%
|
|
100%
|
|
100%
|
|
N/A
|
93%
|
|
Diluted Ownership
Percentage of ACAS in MOPC(6)(17)
|
98%
|
|
96%
|
|
93%
|
|
97%
|
|
95%
|
|
80%
|
|
99%
|
|
85%
|
|
N/A
|
N/A
|
N/A
|
94%
|
|
Total Third-party
Debt at Cost in MOPC(6)(18)
|
$
|
39
|
|
$
|
21
|
|
$
|
338
|
|
$
|
27
|
|
$
|
22
|
|
$
|
—
|
|
$
|
22
|
|
$
|
22
|
|
$
|
—
|
|
N/A
|
N/A
|
$
|
491
|
|
———————
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 November 5, 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 Q3
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 November 5, 2015. In
addition, there will be a phone recording available one hour after
the live call on November 5, 2015
through November 19, 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 10073273.
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
$80 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 $10 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-040-per-diluted-share-net-loss-of-014-per-diluted-share-and-nav-per-share-of-2044-300172699.html
SOURCE American Capital, Ltd.