PURCHASE, N.Y., June 11, 2018 (GLOBE NEWSWIRE) -- MVC Capital, Inc. (NYSE:MVC) (the Company), a publicly traded business development company (BDC) that makes private debt and equity investments, announced its financial results for the fiscal second quarter ended April 30, 2018.
• New yielding investment activity has generated increased net operating income per share of $.06 for the quarter1, reflecting progress from approximately break-even (on an adjusted basis) at January 31, 2018, and negative net operating income in the second quarter of 2017.
• Senior Notes refinancing completed in November 2017 has resulted in reduced borrowing costs, normalized at $2.4 million for the second quarter of 20182.
• NAV was $13.09 per share as of April 30, 2018, compared to $13.42 per share as of January 31, 2018.
• Excluding the NAV reductions detailed below, the portfolio had $2.1 million or $.11 per share of net write-ups.
1 Adjusted for incentive compensation and one-time expenses during the quarter.
• Made two new yielding investments totaling $21 million in the second quarter of 2018.
• Made six follow-on investments totaling $6.8 million during the second quarter of 2018.
• FDS, Inc. repaid its $2.4 million loan.
• Vestal Manufacturing Enterprises, Inc. repaid its $2.5 million loan.
• Received a principal payment of $2.0 million from Morey’s Seafood International, LLC.
|(Unaudited)($ in thousands, except per share data)||Q2 2018||Q1 2018||Q4 2017||Q3 2017||Q2 2017|
|Total operating income||5,500||5,207||5,490||7,305||3,929|
|Portfolio fees - asset management||148||147||148||146||138|
|Management fee - asset management||66||67||67||67||49|
|Interest, fees and other borrowing costs||2,981||3,117||2,495||2,649||2,606|
|Loss on extinguishment of debt||-||1,783||-||-||-|
|Net Incentive compensation||(1,012)||267||(1,224)||5,077||985|
|Total waiver by adviser||(599)||(390)||(372)||(386)||(461)|
|Net operating income (loss) before net realized and unrealized gains||1,563||(2,490)||2,057||(2,445)||(2,256)|
|Net (decrease) increase in net assets resulting from operations||(3,393)||950||(4,028)||23,906||3,069|
|Net (decrease) increase in net assets resulting from operations per share||(0.18)||0.05||(0.17)||1.06||0.14|
|Net asset value per share||13.09||13.42||13.24||13.38||12.45|
As of April 30, 2018, the Company's net assets were $246.3 million, or $13.09 per share, compared with net assets of $252.6 million, or $13.42 per share, at the end of the prior fiscal quarter.
In the quarter, the NAV decreased by $0.33 per share to $13.09 per share primarily due to (1) declines in the stock price of two publicly-traded securities, Crius and Equus, (2) a decline in the Euro, and (3) the cash distribution paid to common stockholders, partially offset by write-ups in the Company’s private securities totaling $2.1 million or $.11 per share and net operating income before adjustments of $0.08 per share.
About MVC Capital, Inc.
MVC is a business development company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries. For additional information about MVC, please visit MVC's website at www.mvccapital.com.
Safe Harbor Statement and Other Disclosures
The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including: MVC Capital's ability to deliver value to shareholders and execute its yield investment strategy; the ability to pay and grow shareholder distributions; the ability to maintain expenses; the ability to improve net operating income; the performance of MVC Capital's investments, including, portfolio companies in which the Company invested this past quarter; and changes in economic or financial market conditions and other factors that are enumerated in the Company's periodic filings with the Securities and Exchange Commission. MVC Capital disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release.
The press release contains unaudited financial results. For ease of review, we have excluded the word "approximately" when rounding the results.
There can be no assurance that future dividend payments will match or exceed historic ones, or that they will be made at all. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell shares of MVC's common stock. There is no assurance that the market price of MVC's shares, either absolutely or relative to net asset value, will increase as a result of any share repurchases, or that the program will enhance shareholder value over the long-term. There can be no assurance that MVC will achieve its investment objective.
Jeffrey Goldberger / Allison Soss
KCSA Strategic Communications
212.896.1249 / 212.896.1267