American Capital Reports 2012 Net Operating Income Before Income Taxes Of $383 Million, Or $1.16 Per Diluted Share, And Net
American Capital Reports 2012 Net Operating Income Before Income Taxes Of $383
Million, Or $1.16 Per Diluted Share, And Net Earnings Of $1,136 Million, Or
$3.44 Per Diluted Share
PR Newswire
BETHESDA, Md., Feb. 11, 2013
BETHESDA, Md., Feb. 11, 2013 /PRNewswire/ -- American Capital, Ltd. ("American
Capital" or the "Company") (Nasdaq: ACAS) announced net operating income
("NOI") before income taxes for the quarter and year ended December 31, 2012
of $115 million, or $0.36 per diluted share, and $383 million, or $1.16 per
diluted share, respectively. NOI after income taxes for the quarter and year
ended December 31, 2012 was $83 million, or $0.26 per diluted share, and $397
million, or $1.20 per diluted share, respectively. Net earnings for the
quarter and year ended December 31, 2012 were $123 million, or $0.38 per
diluted share, and $1,136 million, or $3.44 per diluted share, respectively.
As of December 31, 2012, net asset value ("NAV") per share was $17.84, a 10%
annualized, or $0.45 per share, increase from the September 30, 2012 NAV per
share of $17.39 and a 29%, or $3.97 per share, increase from the December 31,
2011 NAV per share of $13.87.
2012 FINANCIAL SUMMARY
o $1.16 NOI before income taxes per diluted share, or $383 million
o $80 million increase over 2011
o $1.20 NOI after income taxes per diluted share, or $397 million
o $0.38 net realized earnings per diluted share, or $124 million
o $14 million decline from 2011
o $3.06 net unrealized appreciation per diluted share, or $1,012 million
o $176 million increase over 2011
o $3.44 net earnings per diluted share, or $1,136 million
o 22% annual return on average shareholders' equity
o $162 million increase over 2011
o $1,498 million of cash proceeds from realizations
o $487 million of securitized debt repaid
o 34.8 million shares of American Capital common stock repurchased, totaling
$362 million
o $10.39 average price per share
o $0.77 accretive to NAV per share
o $17.84 NAV per share
o $3.97 per share, or 29%, increase over Q4 2011
Q4 2012 FINANCIAL SUMMARY
o $0.36 NOI before income taxes per diluted share, or $115 million
o $31 million increase over Q4 2011
o $0.26 NOI after income taxes per diluted share, or $83 million
o $0.31 net realized earnings per diluted share, or $98 million
o $39 million decline from Q4 2011
o $0.08 net unrealized appreciation per diluted share, or $25 million
o $432 million decline from Q4 2011
o $0.38 net earnings per diluted share, or $123 million
o 9% annualized return on average shareholders' equity
o $471 million decline from Q4 2011
o $634 million of cash proceeds from realizations
o $28 million of securitized debt repaid
o 8.8 million shares of American Capital common stock repurchased, totaling
$103 million
o $11.72 average price per share
o $0.18 accretive to NAV per share
o $17.84 NAV per share
o $0.45 per share, or 10% annualized, increase over Q3 2012
o S&P credit rating upgraded from B to B+
"The fourth quarter of 2012 capped an excellent year for American Capital,"
said Malon Wilkus, Chairman and Chief Executive Officer. "For the year, NOI
totaled $397 million, American Capital Asset Management appreciated $329
million, previously depreciated assets recovered approximately $325 million of
net value, and the net value of our remaining portfolio of private finance
companies grew by approximately $75 million, resulting in $1.1 billion in net
earnings. These earnings were 14% higher than our prior best in 2010. Our
NAV grew $3.97 per share to $17.84 per share as of December 31, 2012,
increasing an impressive 29% for the year. We also originated $719 million of
new investments, which we believe will generate attractive returns for our
shareholders. Additionally, our highly accretive stock repurchase program
continues to be an important enhancement to shareholder value."
PORTFOLIO VALUATION
For the quarter ended December 31, 2012, net unrealized appreciation, before
income taxes, totaled $61 million. The primary components of the net
unrealized appreciation were:
o $50 million net unrealized appreciation in American Capital's investment
in European Capital, primarily due to a strengthening of the Euro and an
increase in the NAV of European Capital.
o The Company's equity investment in European Capital was valued at
$700 million as of December 31, 2012, or 75% of NAV, compared to $651
million as of September 30, 2012, or 75% of NAV;
o $5 million net unrealized appreciation from American Capital's structured
products investments, generally as a result of improved projected cash
flows; and
o $2 million net unrealized appreciation from American Capital's private
finance portfolio.
"In 2012, we experienced $1.5 billion of liquidity in our portfolio at
excellent valuations which coupled with our cash flows from operations allowed
us to continue to execute on our balance sheet management strategies," said
John Erickson, Chief Financial Officer. "With net debt of $304 million
compared to equity of $5,429 million, our balance sheet is outstanding. In
fact, our net debt is now about the amount of the liquidity we generate on
average in a quarter. Looking forward to 2013, we believe that our liquidity
can be invested in new assets at attractive returns and in repurchasing our
shares. We remain laser focused on maximizing shareholder value."
PORTFOLIO REALIZATIONS AND PERFORMANCE
In the fourth quarter of 2012, $634 million of cash proceeds were received
from realizations of portfolio investments. American Capital made $527
million in new committed investments during the quarter. The weighted average
effective interest rate on American Capital's debt investments as of
December 31, 2012 was 11.4%, 30 basis points higher than the September 30,
2012 rate of 11.1% and 70 basis points higher than the December 31, 2011 rate
of 10.7%. As of December 31, 2012, loans with a fair value of $177 million
were on non-accrual, representing 9.0% of total loans at fair value, compared
to $252 million fair value of non-accrual loans, or 12.5% of total loans at
fair value as of September 30, 2012. The $75 million decrease in the fair
value of loans on non-accrual was generally driven by loans removed from
non-accrual status as a result of improved company performance.
"We are extremely pleased with the two One Stop Buyouts^® and six new Sponsor
Finance investments we completed during the fourth quarter of 2012," said
Darin Winn, Senior Vice President and Senior Managing Director.
"Collectively, we committed more than a half a billion dollars in the fourth
quarter of 2012. We believe that our two One Stop Buyouts^® are synergistic
with our existing Health Care Products and Services segment and energy
investments and we will continue to seek One Stop Buyouts^® in 2013."
STOCK REPURCHASE AND DIVIDEND PROGRAM
During the third quarter of 2011, American Capital's Board of Directors
adopted a program that may provide for repurchases of shares or dividend
payments through December 31, 2013. Under the program, American Capital will
consider quarterly setting an amount to be utilized for stock repurchases or
dividends. Generally, the amount may be utilized for repurchases if the price
of American Capital's common stock represents a discount to the NAV of its
shares, and the amount may be utilized for the payment of cash dividends if
the price of American Capital's common stock represents a premium to the NAV
of its shares.
In determining the quarterly amount for repurchases or dividends, the
Company's Board will be guided by the Company's cumulative net cash provided
by operating activities in the prior quarter and since the beginning of 2012,
cumulative repurchases or dividends, cash on hand, debt service
considerations, investment plans, forecasts of financial liquidity and
economic conditions, operational issues and the then current trading price of
American Capital stock.
The repurchase and dividend program may be suspended, terminated or modified
at any time for any reason. The program does not obligate American Capital to
acquire any specific number of shares, and all repurchases will be made in
accordance with SEC Rule 10b-18, which sets certain restrictions on the
method, timing, price and volume of stock repurchases. During the fourth
quarter of 2012, American Capital made open market purchases of 8.8 million
shares, or $103 million, of American Capital common stock at an average price
of $11.72 per share. Since the inception of the program, American Capital has
made open market purchases of 52.4 million shares, or $495 million, of
American Capital common stock at an average price of $9.46 per share.
AMERICAN CAPITAL, LTD.
CONSOLIDATED BALANCE SHEETS
As of December 31, 2012 and 2011
(in millions, except per share amounts)
2012 Versus 2011
2012 2011 $ %
(unaudited)
Assets
Investments at fair value (cost of $ 5,265 $ 5,130 $ 135 3%
$5,842 and $6,739, respectively)
Cash and cash equivalents 331 204 127 62%
Restricted cash and cash equivalents 140 80 60 75%
Interest receivable 17 24 (7) (29%)
Deferred tax asset, net 455 428 27 6%
Derivative agreements at fair value 11 10 1 10%
Other 100 85 15 18%
Total assets $ 6,319 $ 5,961 $ 358 6%
Liabilities and Shareholders' Equity
Debt $ 775 $ 1,251 $ (476) (38%)
Derivative agreements at fair value 38 99 (61) (62%)
Other 77 48 29 60%
Total liabilities 890 1,398 (508) (36%)
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, 310.1 and
336.4 issued 3 3 - -
and 304.4 and 329.1 outstanding,
respectively
Capital in excess of par value 6,783 7,053 (270) (4%)
Distributions in excess of net realized (875) (999) 124 12%
earnings
Net unrealized depreciation of (482) (1,494) 1,012 68%
investments
Total shareholders' equity 5,429 4,563 866 19%
Total liabilities and shareholders' $ 6,319 $ 5,961 $ 358 6%
equity
NAV per common share outstanding $ 17.84 $ 13.87 $ 3.97 29%
AMERICAN CAPITAL, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months and Fiscal Years Ended December 31, 2012 and 2011
(in millions, except per share data)
Three Months Fiscal Year
Ended Ended
Three Months Ended December 31, Fiscal Year Ended December 31,
December 31, 2012 Versus December 31, 2012 Versus
2011 2011
2012 2011 $ % 2012 2011 $ %
(unaudited) (unaudited) (unaudited)
OPERATING
REVENUE
Interest and $ $ $ $ $ $
dividend 157 149 5% 586 8%
income 8 543 43
Fee income 23 11 12 109% 60 48 12 25%
Total
operating 180 160 20 13% 646 591 55 9%
revenue
OPERATING
EXPENSES
Interest 12 21 (9) (43%) 59 90 (31) (34%)
Salaries,
benefits and
stock-based 40 36 4 11% 148 143 5 3%
compensation
General and 13 19 (6) (32%) 56 55 1 2%
administrative
Total
operating 65 76 (11) (14%) 263 288 (25) (9%)
expenses
NET OPERATING
INCOME BEFORE
115 84 31 37% 383 303 80 26%
INCOME
TAXES
Tax
(provision) (32) 145 (177) NM 14 145 (131) (90%)
benefit
NET OPERATING 83 229 (146) (64%) 397 448 (51) (11%)
INCOME
Loss on
extinguishment - - - - (3) - (3) (100%)
of debt, net
of tax
Net realized
gain (loss)
Portfolio
company 9 (154) 163 NM (271) (335) 64 19%
investments
Foreign
currency - - - - 1 - 1 100%
transactions
Derivative (3) (13) 10 77% (87) (50) (37) (74%)
agreements
Tax benefit 9 75 (66) (88%) 87 75 12 16%
Total net
realized gain 15 (92) 107 NM (270) (310) 40 13%
(loss)
NET REALIZED 98 137 (39) (28%) 124 138 (14) (10%)
EARNINGS
Net unrealized
appreciation
(depreciation)
Portfolio
company 22 309 (287) (93%) 1,005 646 359 56%
investments
Foreign
currency 36 (65) 101 NM 27 (31) 58 NM
translation
Derivative 3 5 (2) (40%) 62 13 49 377%
agreements
Tax
(provision) (36) 208 (244) NM (82) 208 (290) NM
benefit
Total net
unrealized 25 457 (432) (95%) 1,012 836 176 21%
appreciation
NET INCREASE
IN NET ASSETS
RESULTING $ $ $ $ $ $
FROM 123 594 (79%) 1,136 17%
OPERATIONS (471) 974 162
("NET
EARNINGS")
NET OPERATING
INCOME PER
COMMON
SHARE
$ $ $ $ $ $
Basic 0.27 0.68 (60%) 1.24 (5%)
(0.41) 1.30 (0.06)
$ $ $ $ $ $
Diluted 0.26 0.67 (61%) 1.20 (5%)
(0.41) 1.26 (0.06)
NET REALIZED
EARNINGS PER
COMMON
SHARE
$ $ $ $ $ $
Basic 0.32 0.41 (22%) 0.39 (3%)
(0.09) 0.40 (0.01)
$ $ $ $ $ $
Diluted 0.31 0.40 (23%) 0.38 (3%)
(0.09) 0.39 (0.01)
NET EARNINGS
PER COMMON
SHARE
$ $ $ $ $ $
Basic 0.40 1.76 (77%) 3.55 25%
(1.36) 2.83 0.72
$ $ $ $ $ $
Diluted 0.38 1.73 (78%) 3.44 26%
(1.35) 2.74 0.70
WEIGHTED
AVERAGE SHARES
OF
COMMON
STOCK
OUTSTANDING
Basic 309.7 337.1 (27.4) (8%) 320.3 343.9 (23.6) (7%)
Diluted 320.7 343.9 (23.2) (7%) 330.3 355.3 (25.0) (7%)
NM = Not
meaningful.
AMERICAN CAPITAL, LTD.
OTHER FINANCIAL INFORMATION
Three Months Ended December 31, 2012 and September 30, 2012 and Fiscal Years Ended
December 31, 2012 and 2011
(in millions, except per share data)
(unaudited)
Q4 2012 Versus 2012 Versus
Q3 2012 2011
Q4 2012 Q3 2012 $ % 2012 2011 $ %
Assets Under
Management
American Capital $ $ $ $ $ $
Assets at Fair 6,266 1% 5,961 6%
Value 6,319 53 6,319 358
Third-Party Assets 110,481 112,083 (1,602) (1%) 110,481 62,168 48,313 78%
at Fair Value(1)
$ $ $ $ $ $
Total 116,800 118,349 (1%) 116,800 68,129 71%
(1,549) 48,671
Third-Party $ $ $ $
Earning Assets $ - $ 63%
Under 12,381 12,359 22 12,381 7,593 4,788
Management(2)
Total Earning $ $ $ $ $ $
Assets Under 18,567 - 13,496 38%
Management(3) 18,642 75 18,642 5,146
New Investments
$ $ $ $ $ $
Senior Debt 100% 184 127%
349 - 349 417 233
Mezzanine Debt 27 - 27 100% 56 57 (1) (2%)
Preferred Equity 79 6 73 NM 87 15 72 480%
Common Equity 63 - 63 100% 149 59 90 153%
Equity Warrants - - - - 1 1 - -
Structured 9 - 9 100% 9 1 8 800%
Products
$ $ $ $ $ $
Total NM 317 127%
527 6 521 719 402
Financing for $ $ $ $ $ $
Private Equity 100% 336%
Buyouts 87 - 87 109 25
84
Investments in 50 - 50 100% 50 137 (87) (64%)
Managed Funds
American Capital 301 - 301 100% 301 1 300 NM
Buyouts
Direct and Other - - - - - 15 (15) (100%)
Investments
Structured 9 - 9 100% 9 - 9 100%
Products
Add-on Investment
in American
Capital Asset 30 - 30 100% 116 11 105 955%
Management, LLC
Add-on Financing
for Growth and 6 - 6 100% 22 4 18 450%
Working Capital
Add-on Financing
for Working
Capital in 5 - 5 100% 22 35 (13) (37%)
Distressed
Situations
Add-on Financing 10 6 4 67% 19 58 (39) (67%)
for Acquisitions
Add-on Financing
for
Recapitalizations,
not 29 - 29 100% 71 27 44 163%
Including
Distressed
Investments
Add-on Financing
for Purchase of
Debt of a - - - - - 4 (4) (100%)
Portfolio
Company
$ $ $ $ $ $
Total NM 317 127%
527 6 521 719 402
Realizations
Sale of Equity $ $ $ $ $ $
Investments 56 130% 394 (30%)
129 73 274 (120)
Principal 403 24 379 NM 938 510 428 84%
Prepayments
Payment of Accrued
Payment-in-Kind
Notes and
Dividends and 93 42 51 121% 242 108 134 124%
Accreted Original
Issue
Discounts
Scheduled
Principal 6 14 (8) (57%) 41 38 3 8%
Amortization
Loan Syndications 3 - 3 100% 3 16 (13) (81%)
and Sales
$ $ $ $ $ $
Total 136 366% 1,066 41%
634 498 1,498 432
Appreciation,
Depreciation, Gain
and Loss
$ $ $ $
Gross Realized $ 230% $ (58%)
Gain 33 10 23 66 158
(92)
Gross Realized (24) (5) (19) (380%) (337) (493) 156 32%
Loss
Portfolio Net
Realized Gain 9 5 4 80% (271) (335) 64 19%
(Loss)
Foreign Currency - - - - 1 - 1 100%
Transactions
Derivative (3) (5) 2 40% (87) (50) (37) (74%)
Agreements
Tax Benefit 9 4 5 125% 87 75 12 16%
Net Realized Gain 15 4 11 275% (270) (310) 40 13%
(Loss)
Gross Unrealized
Appreciation of
Private Finance 103 152 (49) (32%) 412 403 9 2%
Portfolio
Investments
Gross Unrealized
Depreciation of
Private Finance (101) (111) 10 9% (218) (428) 210 49%
Portfolio
Investments
Net Unrealized
Appreciation
(Depreciation) of
2 41 (39) (95%) 194 (25) 219 NM
Private Finance
Portfolio
Investments
Unrealized
Appreciation
(Depreciation) of 31 65 (34) (52%) 146 (34) 180 NM
European
Capital Investment
Unrealized
(Depreciation)
Appreciation of
(16) (15) (1) (7%) (19) 3 (22) NM
European
Capital Foreign
Currency
Translation
Unrealized
Appreciation of
American Capital - 1 (1) (100%) 329 280 49 18%
Asset
Management, LLC
Unrealized
Appreciation
(Depreciation) of
- - - - 12 (5) 17 NM
American
Capital Mortgage
Investment Corp.
Net Unrealized
Appreciation of
Structured 5 20 (15) (75%) 47 52 (5) (10%)
Products
Reversal of Prior
Period Net
Unrealized
- (3) 3 100% 296 375 (79) (21%)
(Appreciation)
Depreciation Upon
Realization
Net Unrealized
Appreciation of
Portfolio Company 22 109 (87) (80%) 1,005 646 359 56%
Investments
Foreign Currency
Translation - 35 27 8 30% 26 (29) 55 NM
European Capital
Foreign Currency
Translation - 1 2 (1) (50%) 1 (2) 3 NM
Other
Derivative 3 6 (3) (50%) 7 8 (1) (13%)
Agreements
Reversal of Prior
Period Net
Unrealized
Depreciation - - - - 55 5 50 NM
Upon Realization
of Terminated
Swaps
Tax (Provision) (36) (20) (16) (80%) (82) 208 (290) NM
Benefit
Net Unrealized
Appreciation of 25 124 (99) (80%) 1,012 836 176 21%
Investments
Net Gains, Losses, $ $ $ $
Appreciation and $ (69%) $ 41%
40 128 (88) 742 526 216
Depreciation
Other Financial
Data
$ $ $ $ $ $
NAV per Share 17.39 3% 13.87 29%
17.84 0.45 17.84 3.97
$ $ $ $ $ $
Debt at Cost 803 (3%) 1,251 (38%)
775 (28) 775 (476)
$ $ $ $ $ $
Debt at Fair Value 797 (2%) 1,210 (35%)
781 (16) 781 (429)
Market $ $ $ $ $ $
Capitalization 3,509 4% 2,215 65%
3,659 150 3,659 1,444
Total Enterprise $ $ $ $ $ $
Value(4) 4,008 2% 3,262 26%
4,103 95 4,103 841
Asset Coverage 801 % 769 % 801 % 465 %
Ratio
Debt to Equity 0.1x 0.1x 0.1x 0.3x
Ratio
Credit Quality
Weighted Average
Effective Interest
Rate on
11.4 % 11.1 % 11.4 % 10.7 %
Private Finance
Debt Investments
at Period End
Loans on $ $ $ $ $ $
Non-Accrual at 370 (30%) 419 (38%)
Cost 260 (110) 260 (159)
Loans on $ $ $ $
Non-Accrual at $ (30%) $ (19%)
Fair Value 177 252 (75) 177 219
(42)
Non-Accrual Loans
at Cost as a
Percentage of 12.9% 17.4% 12.9% 15.3%
Total Loans at
Cost
Non-Accrual Loans
at Fair Value as a
Percentage 9.0% 12.5 % 9.0% 8.7 %
of Total Loans
at Fair Value
Non-Accruing Loans
at Fair Value as a
Percentage 68.1% 68.1% 68.1% 52.3%
of Non-Accruing
Loans at Cost
$ $ $ $ $ $
Past Due Loans at 489% 141%
Cost 53 9 44 53 22
31
Debt to Equity $ $ $ $ $
Conversions at (100%) $ (61%)
Cost - 2 (2) 60 153
(93)
Return on Average
Equity
LTM Net Operating
Income Return on
Average 7.7 % 11.1 % 7.7 % 10.7 %
Shareholders'
Equity
LTM Net Realized
Earnings Return on
Average 2.5 % 3.5 % 2.5 % 3.3 %
Shareholders'
Equity
LTM Net Earnings
Return on Average
22.1 % 33.0 % 22.1 % 23.3 %
Shareholders'
Equity
Current Quarter
Annualized Net
Operating Income
6.1 % 5.3 % 6.1 % 21.4 %
Return on
Average
Shareholders'
Equity
Current Quarter
Annualized Net
Realized Earnings
7.3 % 5.7 % 7.3 % 12.8 %
Return on
Average
Shareholders'
Equity
Current Quarter
Annualized Net
Earnings Return
9.1 % 14.7 % 9.1 % 55.4 %
on Average
Shareholders'
Equity
NM = Not
meaningful.
(1) Includes total assets of American Capital Agency Corp., American Capital Mortgage
Investment Corp., European Capital, American Capital Equity I, American Capital Equity
II, ACAS CLO 2007-1 and ACAS CLO 2012-1, 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.
(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.
Static Pool (1)
Pre-2001
Portfolio Statistics -
($ in millions,
unaudited) 2012
Static
Pre-
Aggregate 2001 2002 2003 2004 2005 2006 2007 2008 2011 2012 Pools
2001
Aggregate
IRR at Fair Value of All 8.1 % 18.1 7.6 % 20.4 % 13.6 % 12.7 % 10.8 % (3.0%) 7.9 % 23.5 NM 8.8 %
Investments(2) % %
IRR of Exited 9.2 % 18.6 9.7 % 20.0 % 15.8 % 22.1 % 8.4 % (5.2%) 3.7 % 32.5 NM 10.2 %
Investments(3) % %
IRR at Fair Value of 46.4 30.8
Equity Investments 6.2 % % 11.2 % 27.6 % 26.2 % 11.5 % 14.9 % (7.5%) 19.8 % % NM 11.1 %
Only(2)(4)(5)
IRR of Exited Equity 46.4 35.1
Investments 10.9 % % 21.4 % 36.7 % 45.8 % 50.2 % 11.5 % 9.5 % 35.3 % % N/A 26.6 %
Only(3)(4)(5)
IRR at Fair Value of All 17.1
One Stop Buyout® 1.9 % % 9.9 % 18.9 % 16.0 % 28.4 % 13.0 % 2.7 % 15.4 % —% NM 13.7 %
Investments(2)
IRR at Fair Value of
Current One Stop Buyout® 10.0 % N/A (2.6%) 17.6 % 5.6 % 24.3 % 11.9 % 0.4 % 15.5 % —% NM 11.3 %
Investments(2)
IRR of Exited One Stop 1.4 % 17.1 14.7 % 16.3 % 21.4 % 30.8 % 11.9 % 14.8 % 13.9 % N/A N/A 15.2 %
Buyout® Investments(3) %
Committed Investments(7) $1,065 $376 $966 $1,437 $2,267 $4,943 $5,297 $7,501 $1,045 $137 $419 $25,453
Total Exits and
Prepayments of Committed $999 $367 $836 $1,267 $2,081 $2,611 $4,384 $5,275 $503 $50 $2 $18,375
Investments(7)
Total Interest,
Dividends and Fees $400 $143 $344 $448 $702 $1,259 $1,375 $1,358 $355 $19 $12 $6,415
Collected
Total Net Realized
(Loss) Gain on $(135) $(23) $(118) $143 $18 $375 $(305) $(1,137) $(104) $10 $ — $(1,276)
Investments
Current Cost of $75 $4 $110 $166 $218 $2,038 $682 $1,850 $355 $60 $284 $5,842
Investments
Current Fair Value of $27 $ — $62 $343 $145 $2,147 $792 $1,096 $320 $61 $272 $5,265
Investments
Current Fair Value of
Investments as a % of 1.2
Total Investments at 0.5 % —% 1.2 % 6.5 % 2.7 % 40.8 % 15.0 % 20.8 % 6.1 % % 5.2 % 100.0 %
Fair Value
Net Unrealized
(Depreciation) $(48) $(4) $(48) $177 $(73) $109 $110 $(754) $(35) $1 $(12) $(577)
Appreciation
Non-Accruing Loans at $ — $ — $47 $ — $10 $58 $48 $75 $22 $ — $ — $260
Cost
Non-Accruing Loans at $ — $ — $22 $ — $6 $53 $16 $49 $31 $ — $ — $177
Fair Value
Equity Interest at Fair $ — $ — $ — $305 $82 $1,743 $411 $348 $96 $5 $71 $3,061
Value(4)
Debt to Adjusted 6.5 N/A 13.2 2.8 3.4 1.8 4.5 6.4 6.4 5.1 4.6 4.3
EBITDA(8)(9)(12)(13)(16)
Interest 1.9 N/A 1.2 3.4 3.9 0.9 2.7 1.9 2.3 1.9 3.0 1.9
Coverage(10)(12)(13)(16)
Debt Service 1.8 N/A 1.2 3.1 3.5 0.6 1.7 1.7 2.1 1.6 2.4 1.5
Coverage(11)(12)(13)(16)
Average Age of 43 yrs N/A 29 yrs 41 yrs 40 yrs 17 yrs 37 yrs 29 yrs 19 yrs 26 19 yrs 26 yrs
Companies(13)(16) yrs
Diluted Ownership 62 % —% —% 56 % 73 % 49 % 48 % 61 % 58 % 26 % 90 % 53 %
Percentage(4)(17)
Average $48 $ — $42 $220 $47 $162 $154 $189 $87 $168 $190 $162
Revenue(13)(14)(16)
Average Adjusted $5 $ — $8 $48 $13 $65 $41 $32 $21 $45 $47 $44
EBITDA(8)(13)(16)
Total Revenue(13)(14) $81 $225 $78 $1,513 $243 $1,319 $3,043 $4,553 $1,209 $354 $2,913 $15,531
Total Adjusted $7 $2 $10 $204 $40 $296 $431 $628 $213 $108 $576 $2,515
EBITDA(8)(13)
% of Senior 75 % —% 77 % —% 39 % 32 % 31 % 51 % 29 % 27 % 69 % 43 %
Loans(12)(13)(15)
% of Loans with 100 % —% 100 % 100 % 100 % 84 % 90 % 85 % 67 % 27 % 100 % 67 %
Lien(12)(13)(15)
Pre-2001 -
2012
Majority Owned Portfolio
Companies ("MOPC")(6) Static Pools
Aggregate
Total Number of MOPC 45
Total Revenue(14) $3,299
Total Gross Profit(14) $1,691
Total Adjusted EBITDA(8) $768
Total Capital $118
Expenditures(14)
Total Current ACAS
Investment in MOPC at $3,384
Fair Value
Total Current ACAS
Investment in MOPC at $3,178
Cost Basis
Total Current ACAS Debt
Investment in MOPC at $1,207
Fair Value
Total Current ACAS Debt
Investment in MOPC at $1,260
Cost Basis
Diluted Ownership
Percentage of ACAS in 72 %
MOPC(17)
Total Cash(18) $212
Total Assets(18) $4,506
Total Debt(18) $3,895
Total Third-party Debt $2,164
at Cost(18)
Total Shareholders' $3,075
Equity(18)(19)
NM - Not meaningful
(1) Static pool classification is based on the year the initial investment was made. Subsequent add-on
investments are included in the static pool year of the original investment. There were no investments made in
2009 and 2010 static pool years.
(2) Assumes investments are exited at current fair value.
(3) Includes fully exited investments of existing portfolio companies.
(4) Excludes investments in Structured Products.
(5) Excludes equity investments that are the result of conversions of debt and warrants received with the
issuance of debt.
(6) 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. Excludes
our investment in European Capital.
(7) Represents committed investment amount at the time of origination.
(8) Adjusted EBITDA may reflect certain adjustments to the reported EBITDA of a portfolio company for
non-recurring, unusual or infrequent items or other pro-forma items or events to normalize current earnings
which a buyer may consider in
a change in control transactions. These adjustments may be material and are highly subjective in
nature. Portfolio company reported EBITDA is for the most recently available twelve months, or when
appropriate, the forecasted twelve
months or current annualized run-rate.
(9) 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 and managed funds.
(14) For the most recent twelve months, or when appropriate, the forecasted twelve months.
(15) As a percentage of our total debt investments.
(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) Calculated as the estimated enterprise value of the MOPC less the cost basis of any outstanding debt of
the MOPC.
SHAREHOLDER CALL
American Capital invites shareholders, analysts and interested parties to
attend the shareholder call on February 11, 2013 at 11:00 am ET. The
shareholder call can be accessed through a live webcast, free of charge, at
www.AmericanCapital.com or by dialing (888) 317-6016 (U.S. domestic) or (412)
317-6016 (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. Callers who do not plan on asking
a question and have access to the internet are asked to utilize the webcast.
A slide presentation will accompany the shareholder call and will be available
at www.AmericanCapital.com. Select the Q4 2012 Earnings Presentation link to
download and print the presentation in advance of the shareholder call.
An archived audio replay of the shareholder call combined with the slide
presentation will be made available on our website after the call on February
11, 2013. In addition, there will be a phone recording available from 2:00 pm
ET February 11, 2013 until 9:00 am ET February 26, 2013. 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 10024416.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset
manager. American Capital, both directly and through its asset management
business, originates, underwrites and manages investments in middle market
private equity, leveraged finance, real estate and structured products.
American Capital manages $18.6 billion of assets, including assets on its
balance sheet and fee earning assets under management by affiliated managers,
with $117 billion of total assets under management (including levered assets).
Through an affiliate, American Capital manages publicly traded American
Capital Agency Corp. (Nasdaq: AGNC) with approximately $10 billion market
capitalization and American Capital Mortgage Investment Corp. (Nasdaq: MTGE)
with approximately $850 million market capitalization. From its eight offices
in the U.S. and Europe, American Capital and its affiliate, European Capital,
will consider investment opportunities from $10 million to $750 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, 2011 and the Company's subsequent periodic filings. Copies are available
on the SEC's website at www.sec.gov. Forward-looking statements are made as
of the date of this press release, and are subject to change without notice.
We disclaim any obligation to update or revise any forward-looking statements
based on the occurrence of future events, the receipt of new information, or
otherwise.
CONTACT:
Investors - (301) 951-5917
Media - (301) 968-9400
SOURCE American Capital, Ltd.
Website: http://www.americancapital.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement
Rate this Page