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American Capital Reports Net Operating Income Before Income Taxes Of $68 Million, Or $0.21 Per Diluted Share, And Net Earnings



   American Capital Reports Net Operating Income Before Income Taxes Of $68
  Million, Or $0.21 Per Diluted Share, And Net Earnings Of $346 Million, Or
                           $1.09 Per Diluted Share

PR Newswire

BETHESDA, Md., April 30, 2013

BETHESDA, Md., April 30, 2013 /PRNewswire/ -- American Capital, Ltd.
("American Capital" or the "Company") (Nasdaq: ACAS) announced net operating
income ("NOI") before income taxes for the quarter ended March 31, 2013 of $68
million, or $0.21 per diluted share.  NOI after income taxes for the quarter
ended March 31, 2013 was $46 million, or $0.14 per diluted share.  Net
earnings for the quarter ended March 31, 2013 were  $346 million, or $1.09 per
diluted share.  As of March 31, 2013, net asset value ("NAV") per share was
$19.04, a $1.20, or 7% per share, increase from the December 31, 2012 NAV per
share of $17.84.

Q1 2013 FINANCIAL SUMMARY

  o $0.21 NOI before income taxes per diluted share, or $68 million

       o $47 million decrease over Q4 2012
       o $0.14 NOI after income taxes per diluted share, or $46 million

  o $0.12 net realized earnings per diluted share, or $38 million

       o $60 million decrease over Q4 2012

  o $0.97 net unrealized appreciation per diluted share, or $308 million

       o $283 million increase over Q4 2012

  o $1.09 net earnings per diluted share, or $346 million

       o 25% annualized return on average shareholders' equity
       o $223 million increase over Q4 2012

  o $281 million of cash proceeds from realizations
  o $113 million of securitized debt repaid
  o 9.0 million shares repurchased, totaling $128 million, of American Capital
    common stock

       o $14.23 average price per share
       o $0.14 accretive to NAV per share

  o $19.04 NAV per share

       o $1.20 per share, or 27% annualized increase over Q4 2012

"Our positive momentum from 2012 continued into the first quarter of 2013,"
said Malon Wilkus, Chairman and Chief Executive Officer.  "We are quite
pleased with the $1.20 increase in our NAV per share, which was driven by
continued growth of our asset management business, an increase in the value of
European Capital and continued stock repurchases.  Additionally, our NAV per
share grew 21% from the first quarter of last year, which is a terrific growth
rate.  I believe as we continue to execute on our growth strategies and
enhance the performance of our operating companies, and as the economy
continues its recovery, our NAV per share should advance as well."

PORTFOLIO VALUATION
For the quarter ended March 31, 2013, net unrealized appreciation, before
income taxes, totaled $308 million.  The primary components of the net
unrealized appreciation were:

  o $214 million unrealized appreciation in American Capital's investment in
    American Capital Asset Management, LLC, its alternative asset management
    company, due to an increase in actual and forecasted growth;
  o $90 million net unrealized appreciation in American Capital's investment
    in European Capital, primarily due to a decrease in the implied discount
    to European Capital's NAV as a result of European Capital's comparable
    companies trading at higher multiples as well as an increase in the NAV of
    European Capital; and

       o The Company's equity investment in European Capital was valued at
         $790 million as of March 31, 2013, or 85% of NAV, compared to $700
         million as of December 31, 2012, or 75% of NAV.

  o $13 million net unrealized appreciation from American Capital's private
    finance portfolio.

"Our asset management business continues its strong performance," said John
Erickson, Chief Financial Officer.  "As of the end of the quarter, it had $15
billion of earning assets under management, a 20% increase from year end.  It
successfully added $2.4 billion of earning assets in its residential mortgage
businesses and sponsored the issuance of a $414 million CLO during the
quarter.  We look forward to continued growth and expansion of our asset
management business in 2013."

PORTFOLIO LIQUIDITY, NEW COMMITTED INVESTMENTS AND LOAN PERFORMANCE
In the first quarter of 2013, $281 million of cash proceeds were received from
realizations of portfolio investments.  American Capital made $98 million in
new committed investments during the quarter.  The weighted average effective
interest rate on American Capital's debt investments as of March 31, 2013 was
10.6%, 80 basis points lower than the December 31, 2012 rate of 11.4%.  As of
March 31, 2013, loans with a fair value of $208 million were on non-accrual,
representing 11.3% of total loans at fair value, compared to $177 million fair
value of non-accrual loans, representing 9.0% of total loans at fair value as
of December 31, 2012.  The $31 million net increase in the fair value of loans
on non-accrual was generally driven by new non-accruing loans as a result of
weaker company performance.

"In the first quarter, we completed the One Stop Buyout® of Service Experts, a
leading HVAC company, committing $27 million," said Gordon O'Brien, President,
Specialty Finance and Operations. "The transaction was implemented by our
Special Situations Group as a value opportunity. With 2012 revenue of $385
million, we believe there is opportunity for significant operational
improvement and upside potential. The investment follows two One Stop Buyouts®
we completed in December 2012, in which we committed $301 million."

STOCK REPURCHASE AND DIVIDEND PROGRAM
During the third quarter of 2011, American Capital's Board of Directors
adopted a program that may provide for 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 first
quarter of 2013, American Capital made open market purchases of 9.0 million
shares, or $128 million, of American Capital common stock at an average price
of $14.23 per share. Since the inception of the program, American Capital has
made open market purchases of 61.4 million shares, or $624 million, of
American Capital common stock at an average price of $10.16 per share.  This
represented 18% of shares outstanding immediately prior to the inception of
the program in August 2011.

 

AMERICAN CAPITAL, LTD.
CONSOLIDATED BALANCE SHEETS
As of March 31, 2013, December 31, 2012 and March 31, 2012
(in millions, except per share amounts)
                                      Q1 2013                     Q1 2013
                  Q1           Q4     Versus         Q1           Versus
                                      Q4 2012                     Q1 2012
                  2013         2012   $       %      2012         $      %
                  (unaudited)                        (unaudited)
Assets
Investments at
fair value (cost  $            $                     $            $  
of $5,694, $5,842  5,411       5,265  $  146  3%      5,379        32    1%
and $6,322,
respectively)
Cash and cash     360          331    29      9%     313          47     15%
equivalents
Restricted cash
and cash          53           140    (87)    (62%)  205          (152)  (74%)
equivalents
Interest and
dividend          48           43     5       12%    44           4      9%
receivable
Deferred tax      452          455    (3)     (1%)   396          56     14%
asset, net
Derivative
agreements at     8            11     (3)     (27%)  10           (2)    (20%)
fair value
Other             71           74     (3)     (4%)   74           (3)    (4%)
Total assets      $            $      $       1%     $            $      -
                   6,403       6,319   84             6,421       (18)
Liabilities and
Shareholders'
Equity
Debt              $            $      $       (15%)  $            $      (42%)
                  662           775   (113)           1,132       (470)
Derivative
agreements at     22           38     (16)    (42%)  105          (83)   (79%)
fair value
Other             50           77     (27)    (35%)  70           (20)   (29%)
Total liabilities 734          890    (156)   (18%)  1,307        (573)  (44%)
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,
303.0, 310.1 and
332.5             3            3      -       -      3            -      -
   issued and
297.8, 304.4 and
325.6
outstanding,
respectively
Capital in excess 6,677        6,783  (106)   (2%)   7,024        (347)  (5%)
of par value
Distributions in
excess of net     (837)        (875)  38      4%     (1,058)      221    21%
realized earnings
Net unrealized
depreciation of   (174)        (482)  308     64%    (855)        681    80%
investments
Total
shareholders'     5,669        5,429  240     4%     5,114        555    11%
equity
Total liabilities $            $      $              $            $  
and shareholders'  6,403       6,319   84     1%      6,421       (18)   -
equity
NAV per common    $            $      $ 1.20  7%     $            $      21%
share outstanding  19.04       17.84                  15.71       3.33

    

AMERICAN CAPITAL, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2013 and December 31, 2012
(in millions, except per share data)
(unaudited)
                                                            Q1 2013 Versus
                                                            Q4 2012
                                    Q1 2013     Q4 2012     $          %
OPERATING REVENUE
Interest and dividend income        $      122  $      157  $    (35)  (22%)
Fee income                          11          23          (12)       (52%)
Total operating revenue             133         180         (47)       (26%)
OPERATING EXPENSES
Interest                            11          12          (1)        (8%)
Salaries, benefits and stock-based  41          40          1          3%
compensation
General and administrative          13          13          -          -
Total operating expenses            65          65          -          -
NET OPERATING INCOME BEFORE INCOME  68          115         (47)       (41%)
TAXES
Tax provision                       (22)        (32)        10         31%
NET OPERATING INCOME                46          83          (37)       (45%)
Net realized (loss) gain
Portfolio company investments       (7)         9           (16)        NM 
Derivative agreements               (14)        (3)         (11)       (367%)
Tax benefit                         13          9           4          44%
Total net realized (loss) gain      (8)         15          (23)       NM
NET REALIZED EARNINGS               38          98          (60)       (61%)
Net unrealized appreciation
(depreciation)
Portfolio company investments       335         22          313        1423%
Foreign currency translation        (40)        36          (76)       NM
Derivative agreements               13          3           10         333%
Tax provision                       -           (36)        36         100%
Total net unrealized appreciation   308         25          283        1132%
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ("NET     $      346  $      123  $   223    181%
EARNINGS")
NET OPERATING INCOME PER COMMON
SHARE
Basic                               $     0.15  $     0.27  $ (0.12)   (44%)
Diluted                             $     0.14  $     0.26  $ (0.12)   (46%)
NET REALIZED EARNINGS PER COMMON
SHARE
Basic                               $     0.12  $     0.32  $ (0.20)   (63%)
Diluted                             $     0.12  $     0.31  $ (0.19)   (61%)
NET EARNINGS PER COMMON SHARE
Basic                               $     1.13  $     0.40  $  0.73    183%
Diluted                             $     1.09  $     0.38  $  0.71    187%
WEIGHTED AVERAGE SHARES OF COMMON
STOCK OUTSTANDING
Basic                               305.4       309.7       (4.3)      (1%)
Diluted                             317.9       320.7       (2.8)      (1%)
NM = Not meaningful.

    

AMERICAN CAPITAL, LTD.
OTHER FINANCIAL INFORMATION
Three Months Ended March 31, 2013, December 31, 2012 and March 31, 2012
(in millions, except per share data)
(unaudited)
                                      Q1 2013                 Q1 2013 Versus
                                      Versus                  Q1 2012
                                      Q4 2012
                    Q1 2013  Q4 2012  $      %       Q1 2012  $       %
Assets Under
Management
American Capital
Assets at Fair      $ 6,403  $ 6,319  $ 84   1%      $ 6,421  $ (18)  -
Value
Third-Party Assets  110,639  110,481  158    -       94,654   15,985  17%
at Fair Value(1)
Total               $        $        $ 242  -       $        $       16%
                    117,042  116,800                 101,075  15,967
Third-Party Earning $        $        $              $        $
Assets Under        14,881   12,381   2,500  20%     10,286   4,595   45%
Management(2)
Total Earning       $        $        $              $        $
Assets Under        21,208   18,642   2,566  14%     16,640   4,568   27%
Management(3)
New Investments
Senior Debt         $ 80     $ 349    $      (77%)   $ 25     $ 55    220%
                                      (269)
Mezzanine Debt      -        27       (27)   (100%)  -        -       -
Preferred Equity    16       79       (63)   (80%)   2        14      700%
Common Equity       2        63       (61)   (97%)   56       (54)    (96%)
Structured Products -        9        (9)    (100%)  -        -       -
Total by Security   $ 98     $ 527    $      (81%)   $ 83     $ 15    18%
Type                                  (429)
Financing for                         $
Private Equity      $ 29     $ 87     (58)   (67%)   $ -      $ 29    100%
Buyouts
Investments in      -        50       (50)   (100%)  -        -       -
Managed Funds
American Capital    27       301      (274)  (91%)   -        27      100%
One Stop Buyouts®
Structured Products -        9        (9)    (100%)  -        -       -
Add-on Investment
in American Capital -        30       (30)   (100%)  56       (56)    (100%)
Asset Management,
LLC
Add-on Financing
for Growth and      3        6        (3)    (50%)   12       (9)     (75%)
Working Capital
Add-on Financing
for Working Capital 3        5        (2)    (40%)   15       (12)    (80%)
in Distressed
Situations
Add-on Financing    -        10       (10)   (100%)  -        -       -
for Acquisitions
Add-on Financing
for
Recapitalizations,  36       29       7      24%     -        36      100%
not Including
Distressed
Investments
Total by Use        $ 98     $ 527    $      (81%)   $ 83     $ 15    18%
                                      (429)
Realizations
Sale of Equity      $ 60     $ 129    $      (53%)   $ 47     $ 13    28%
Investments                           (69)
Principal           148      403      (255)  (63%)   288      (140)   (49%)
Prepayments
Payment of Accrued
Payment-in-Kind
Notes and Dividends 60       93       (33)   (35%)   51       9       18%
and Accreted
Original Issue
Discounts
Scheduled Principal 9        6        3      50%     10       (1)     (10%)
Amortization
Loan Syndications   4        3        1      33%     -        4       100%
and Sales
Total by Source     $ 281    $ 634    $      (56%)   $ 396    $       (29%)
                                      (353)                   (115)
American Capital    $ 169    $ 454    $      (63%)   $ 198    $ (29)  (15%)
One Stop Buyouts®                     (285)
Private Equity      86       145      (59)   (41%)   72       14      19%
Buyouts
American Capital
Asset Management,   8        4        4      100%    3        5       167%
LLC
Direct and Other    13       27       (14)   (52%)   117      (104)   (89%)
Investments
Structured Products 5        4        1      25%     6        (1)     (17%)
Total by Business   $ 281    $ 634    $      (56%)   $ 396    $       (29%)
Line                                  (353)                   (115)
Appreciation,
Depreciation, Gain
and Loss
Gross Realized Gain $ 31     $ 33     $ (2)  (6%)    $ 15     $ 16    107%
Gross Realized Loss (38)     (24)     (14)   (58%)   (137)    99      72%
Portfolio Net
Realized (Loss)     (7)      9        (16)   NM      (122)    115     94%
Gain
Foreign Currency    -        -        -      -       1        (1)     (100%)
Transactions
Derivative          (14)     (3)      (11)   (367%)  (8)      (6)     (75%)
Agreements
Tax Benefit         13       9        4      44%     22       (9)     (41%)
Net Realized (Loss) (8)      15       (23)   NM      (107)    99      93%
Gain
Gross Unrealized
Appreciation of
Private Finance     82       103      (21)   (20%)   127      (45)    (35%)
Portfolio
Investments
Gross Unrealized
Depreciation of
Private Finance     (69)     (101)    32     32%     (56)     (13)    (23%)
Portfolio
Investments
Net Unrealized
Appreciation of
Private Finance     13       2        11     550%    71       (58)    (82%)
Portfolio
Investments
Net Unrealized
Appreciation of     111      31       80     258%    148      (37)    (25%)
European Capital
Investment
Net Unrealized
Appreciation
(Depreciation) of   17       (16)     33     NM      (21)     38      NM
European Capital
Foreign Currency
Translation
Net Unrealized
Appreciation of
American Capital    214      -        214    100%    287      (73)    (25%)
Asset Management,
LLC
Net Unrealized
Appreciation of
American Capital    -        -        -      -       7        (7)     (100%)
Mortgage Investment
Corp.
Net Unrealized
(Depreciation)      (8)      5        (13)   NM      18       (26)    NM
Appreciation of
Structured Products
Reversal of Prior
Period Net
Unrealized          (12)     -        (12)   100%    117      (129)   NM
(Appreciation)
Depreciation Upon
Realization
Net Unrealized
Appreciation of     335      22       313    1423%   627      (292)   (47%)
Portfolio Company
Investments
Foreign Currency
Translation -       (38)     35       (73)   NM      37       (75)    NM
European Capital
Foreign Currency    (2)      1        (3)    NM      1        (3)     NM
Translation - Other
Derivative          4        3        1      33%     (6)      10      NM
Agreements
Reversal of Prior
Period Net
Unrealized          9        -        9      100%    -        9       100%
Depreciation Upon
Realization of
Terminated Swaps
Tax Provision       -        (36)     36     100%    (21)     21      100%
Net Unrealized
Appreciation of     308      25       283    1132%   638      (330)   52%
Investments
Net Gains, Losses,                                            $
Appreciation and    $ 300    $ 40     $ 260  650%    $ 531    (231)   (44%)
Depreciation
Other Financial
Data
NAV per Share       $ 19.04  $ 17.84  $      7%      $ 15.71  $ 3.33  21%
                                      1.20
Debt at Cost        $ 662    $ 775    $      (15%)   $ 1,132  $       (42%)
                                      (113)                   (470)
Debt at Fair Value  $ 674    $ 781    $      (14%)   $ 1,116  $       (40%)
                                      (107)                   (442)
Market              $ 4,348  $ 3,659  $ 689  19%     $ 2,826  $       54%
Capitalization                                                1,522
Total Enterprise    $ 4,650  $ 4,103  $ 547  13%     $ 3,645  $       28%
Value(4)                                                      1,005
Asset Coverage      956 %    801 %                   552 %
Ratio
Debt to Equity      0.1x     0.1x                    0.2x
Ratio
Credit Quality
Weighted Average
Effective Interest
Rate on Debt        10.6 %   11.4 %                  11.1 %
Investments at
Period End
Loans on            $ 313    $ 260    $ 53   20%     $ 356    $ (43)  (12%)
Non-Accrual at Cost
Loans on
Non-Accrual at Fair $ 208    $ 177    $ 31   18%     $ 178    $ 30    17%
Value
Non-Accrual Loans
at Cost as a        16.3%    12.9%                   15.0%
Percentage of Total
Loans at Cost
Non-Accrual Loans
at Fair Value as a  11.3%    9.0%                    8.1%
Percentage of Total
Loans at Fair Value
Non-Accruing Loans
at Fair Value as a
Percentage of       66.5%    68.1%                   50.0%
Non-Accruing Loans
at Cost
Past Due Loans at   $ 73     $ 54     $ 19   35%     $ 22     $ 51    232%
Cost
Debt to Equity      $ 1      $ -      $ 1    100%    $ 20     $ (19)  (95%)
Conversions at Cost
Return on Average
Equity
LTM Net Operating
Income Return on
Average             7.3 %    7.7 %                   9.3 %
Shareholders'
Equity
LTM Net Realized
Earnings Return on
Average             4.2 %    2.5 %                   - %
Shareholders'
Equity
LTM Net Earnings
Return on Average   16.8 %   22.1 %                  25.1 %
Shareholders'
Equity
Current Quarter
Annualized Net
Operating Income    3.3 %    6.1 %                   4.1 %
Return on Average
Shareholders'
Equity
Current Quarter
Annualized Net
Realized Earnings
(Loss) Return on    2.8 %    7.3 %                   (4.8%)
Average
Shareholders'
Equity
Current Quarter
Annualized Net
Earnings Return on  24.9 %   9.1 %                   47.9 %
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, ACAS CLO 2012-1 and ACAS CLO
2013-1, less American Capital's investment in the funds. Total assets of
American Capital Agency Corp. and American Capital Mortgage Investment Corp.
are as of December 31, 2012.
(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)
Portfolio Statistics                                                                                          Pre-2001
($ in millions,                                                                                               -
unaudited)                                                                                                    2013
                                                                                                              Static
Aggregate                Pre-2001 2001  2002   2003   2004   2005   2006   2007     2008   2011 2012    2013  Pools
                                                                                                              Aggregate
IRR at Fair Value of All 8.0 %    18.1  7.6 %  20.3 % 13.5 % 14.0 % 10.7 % (2.7%)   8.3 %  22.4 5.6 %    N/M  9.2 %
Investments(2)                    %                                                        %
IRR of Exited            9.2 %    18.6  9.7 %  20.0 % 15.8 % 22.0 % 8.4 %  (3.6%)   3.7 %  29.4 14.3 %   N/A  10.2 %
Investments(3)                    %                                                        %
IRR at Fair Value of              46.4                                                     29.0
Equity Investments       6.2 %    %     11.2 % 27.3 % 25.7 % 16.2 % 14.7 % (6.7%)   19.7 % %    (27.9%)  N/M  13.1 %
Only(2)(4)(5)
IRR of Exited Equity              46.4                                                     35.1
Investments              10.9 %   %     21.4 % 36.7 % 45.8 % 49.7 % 11.5 % 7.9 %    35.3 % %     N/A     N/A  26.2 %
Only(3)(4)(5)
IRR at Fair Value of All          17.1
One Stop Buyout®         1.8 %    %     9.9 %  18.8 % 15.7 % 29.3 % 13.1 % 2.6 %    15.4 % —%   (2.8%)  N/M   14.0 %
Investments(2)
IRR at Fair Value of All          53.8
One Stop Buyout® Equity  (9.3%)   %     11.0 % 24.5 % 25.4 % 41.3 % 16.6 % (7.0%)   15.3 % —%   (27.9%) N/M   18.8 %
Investments(2)(4)(5)
IRR at Fair Value of
Current One Stop Buyout® 9.5 %    N/A   (2.6%) 17.4 % 4.5 %  26.1 % 12.0 % (0.8%)   15.5 % —%   (2.8%)  N/M   11.9 %
Investments(2)
IRR of Exited One Stop   1.4 %    17.1  14.7 % 16.3 % 21.4 % 30.6 % 11.9 % 13.9 %   13.9 % N/A  N/A     N/A   15.1 %
Buyout® Investments(3)            %
Committed Investments(7) $1,065   $376  $967   $1,437 $2,268 $4,949 $5,326 $7,501   $1,047 $140 $419    $56   $25,551
Total Exits and
Prepayments of Committed $999     $367  $836   $1,267 $2,084 $2,661 $4,384 $5,438   $503   $50  $42     $—    $18,631
Investments(7)
Total Interest,
Dividends and Fees       $400     $143  $345   $460   $704   $1,301 $1,396 $1,415   $360   $20  $16     $1    $6,561
Collected
Total Net Realized
(Loss) Gain on           $(135)   $(23) $(118) $170   $16    $374   $(305) $(1,169) $(104) $10  $1      $—    $(1,283)
Investments
Current Cost of          $71      $4    $111   $150   $200   $2,051 $715   $1,660   $374   $49  $265    $44   $5,694
Investments
Current Fair Value of    $22      $—    $61    $301   $132   $2,458 $818   $940     $337   $49  $253    $40   $5,411
Investments
Current Fair Value of
Investments as a % of    0.4 %    —%    1.1 %  5.6 %  2.5 %  45.4 % 15.1 % 17.4 %   6.2 %  0.9  4.7 %   0.7 % 100.0 %
Total Investments at                                                                       %
Fair Value
Net Unrealized
(Depreciation)           $(49)    $(4)  $(50)  $151   $(68)  $407   $103   $(720)   $(37)  $—   $(12)   $(4)  $(283)
Appreciation
Non-Accruing Loans at    $19      $—    $46    $—     $10    $63    $76    $62      $37    $—   $—      $—    $313
Cost
Non-Accruing Loans at    $19      $—    $19    $—     $5     $53    $39    $40      $33    $—   $—      $—    $208
Fair Value
Equity Interest at Fair  $—       $—    $—     $263   $70    $2,023 $417   $371     $107   $7   $72     $11   $3,341
Value(4)
Debt to Adjusted         7.2      N/A   14.5   2.6    5.6    1.5    4.2    5.4      6.3    5.0  4.7     4.5   3.8
EBITDA(8)(9)(12)(13)(16)
Interest                 1.7      N/A   1.3    3.6    7.9    0.6    3.3    1.9      2.3    2.0  6.3     1.6   2.2
Coverage(10)(12)(13)(16)
Debt Service             1.7      N/A   1.3    3.2    6.5    0.5    2.5    1.6      2.1    1.5  3.2     1.5   1.6
Coverage(11)(12)(13)(16)
Average Age of            43 yrs   N/A   29     40     38     16     37     32 yrs   19     31   18      17    26 yrs 
Companies(13)(16)                       yrs    yrs    yrs    yrs    yrs             yrs    yrs  yrs     yrs 
Diluted Ownership        85 %     —%    —%     56 %   79 %   92 %   48 %   60 %     57 %   50 % 90 %    90 %  78 %
Percentage(4)(17)
Average                  $49      $—    $43    $214   $47    $182   $155   $201     $88    $167 $178    $317  $171
Revenue(13)(14)(16)
Average Adjusted         $5       $—    $7     $45    $12    $82    $40    $34      $21    $37  $44     $41   $52
EBITDA(8)(13)(16)
Total Revenue(13)(14)    $82      $234  $80    $1,416 $272   $1,262 $2,922 $4,189   $1,218 $194 $2,174  $921  $14,964
Total Adjusted           $7       $2    $9     $199   $42    $305   $409   $561     $224   $43  $425    $110  $2,336
EBITDA(8)(13)
% of Senior              72 %     —%    81 %   —%     38 %   32 %   37 %   65 %     29 %   —%   65 %    100 % 46 %
Loans(12)(13)(15)
% of Loans with          100 %    —%    100 %  100 %  100 %  77 %   93 %   93 %     67 %   —%   100 %   100 % 62 %
Lien(12)(13)(15)
                         Pre-2001 -
Majority Owned Portfolio 2013
Companies ("MOPC")(6)    Static Pools
                         Aggregate
Total Number of MOPC     44
Total Revenue(14)        $3,516
Total Gross Profit(14)   $1,829
Total Adjusted EBITDA(8) $754
Total Capital            $107
Expenditures(14)
Total Current ACAS
Investment in MOPC at    $3,414
Fair Value
Total Current ACAS
Investment in MOPC at    $3,004
Cost Basis
Total Current ACAS Debt
Investment in MOPC at    $1,063
Fair Value
Total Current ACAS Debt
Investment in MOPC at    $1,131
Cost Basis
Diluted Ownership
Percentage of ACAS in    76 %
MOPC(17)
Total Cash(18)           $179
Total Assets(18)         $4,818
Total Debt(18)           $3,778
Total Third-party Debt   $2,176
at Cost(18)
Total Shareholders'      $3,194
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. Includes American Capital Asset Management, LLC prior to the consolidation of the
collateralized loan obligations. 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 May 1, 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 Q1 2013 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 May 1,
2013.  In addition, there will be a phone recording available from 1:00 pm ET
May 1, 2013 until 9:00 am ET May 16, 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 10027589.

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 $21.2 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 $13 billion market
capitalization and American Capital Mortgage Investment Corp. (Nasdaq: MTGE)
with approximately $1.5 billion 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, 2012 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
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