Alcentra Capital Corporation Announces First Quarter 2015 Results
NEW YORK, May 12, 2015 /PRNewswire/ -- Alcentra Capital Corporation (NASDAQ: ABDC) ("Alcentra" or the "Company"), announced today its financial results for the first quarter of 2015. The Company reported net investment income of $4.9 million or $0.37 per share, for the first quarter 2015.
Mr. Paul J. Echausse, the Company's President and Chief Executive Officer, said, "Since our IPO last May 8, 2014, we have had more than $100 million of net originations which represents an increase of 13 portfolio companies. The first quarter saw a new investment followed by an add on investment and one repayment. In our second quarter we have closed on two new investments."
"The weighted average yield on our debt portfolio was 11.9% and the weighted average leverage is 3.3x at the end of the first quarter. With the addition of our two recent investments this weighted average yield is at 12.0%. We have a good first year as a public company, with strong investment pacing on a year-over-year basis," observed Mr. Echausse. "We said that we would be improving on the yield characteristics of the portfolio and have done so, without straying from a disciplined approach to moderate portfolio company leverage. We believe the quality of our portfolio compares favorably to the rest of the BDC industry on a risk-adjusted basis."
| Highlights |
||
| ($ in mm, except per share calculation) |
||
| Portfolio results, as of March 31, 2015 |
||
| Total Investment portfolio, at fair value: |
$ 267.0 |
million |
| Total Net Assets (Equity): |
$ 201.3 |
million |
| Net Asset Value per share (Book Value): |
$ 14.90 |
|
| Weighted Average yield on debt investments: |
11.9% |
|
| Weighted Average leverage: |
3.31x |
|
| Investment Portfolio Activity for the Quarter Ended March 31, 2015: |
||
| - Cost of Investments made during the period: |
$ 17.3 |
million |
| - Proceeds related to the sale of equity investments during the period |
$ 8.6 |
million |
| Non-Accrual assets as a Percentage of Total Portfolio Cost/Fair Value: |
- |
|
| Financial Results for the Quarter Ended March 31, 2015: |
||
| - Total Investment Income: |
$ 8.2 |
million |
| - Net Investment Income: |
$ 4.9 |
million |
| - Net Investment Income per share: |
$ 0.37 |
|
| - Net increase in net assets resulting from operations: |
$ 4.9 |
million |
| - Net increase in net assets resulting from operations per share: |
$ 0.37 |
|
Liquidity and Capital Resources
As of March 31, 2015, we had $3.9 million of cash. On April 15, 2015, Alcentra completed a $40 million note offering program (the "Notes") which commenced on January 29, 2015. The unsecured notes mature on January 15, 2022, February 15, 2020, March 15, 2020 and April 15, 2020. The Notes bear interest at a rate of 6.5% and 6.375% semi-annually and have maturities ranging from five to seven years. The net proceeds of $39.2 million were used to reduce the outstanding borrowings on the credit facility. The Company had borrowings of $43.3 million on their $115 million revolver after the Note Offering.
Dividend Information
On May 11, 2015, the Company's Board of Directors declared the 2015 2nd quarter calendar dividend of $0.34 per share, payable on July 6, 2015 to shareholders of record on June 30, 2015. The Company had previously paid a dividend of $0.34 per share on April 6, 2015 to shareholders of record on March 31, 2014.
Recent Portfolio Activity
New investment transactions which occurred during the second quarter of 2015 are summarized as follows:
In April 2015, Alcentra made a $10.0 million subordinated debt investment in Radiant Logistics, Inc. ("Radiant). Radiant is a non-asset based transportation and logistics company providing domestic and international freight forwarding services. Also, in April 2015, Alcentra made a $9,500,000 investment in Alarm Capital Alliance, LLC ("ACA). ACA is a security alarm monitoring company whose services also include servicing, installation and patrol/guard services.
Conference Call to Discuss First Quarter 2015 Results
Alcentra has scheduled a conference call to discuss first quarter 2015 results for Tuesday, May 12, 2015 at 3:30pm (Eastern Time).
To listen to the call, please dial 844-832-0218 approximately 10 minutes prior to the start of the call. International callers should dial (484) 756-4314. Please reference conference ID 43626132#. A live webcast of the conference call will be available at http://investors.alcentracapital.com/events-presentations. Web participants are encouraged to access the website 15 minutes prior to the start of the call to download and install any necessary audio software. An archived webcast replay will be available on the Company's website until May 12, 2016.
1 Earnings and earnings per share before a provision for taxes on unrealized appreciation from portfolio investments are non-GAAP financial measures that are calculated by subtracting the provision of taxes on unrealized gain on investments from Net Increase in Net Assets from Operations. Reconciliations of these numbers to the most directly comparable GAAP financial measure are set forth in Schedule 1 hereto.
| Alcentra Capital Corporation and Subsidiary |
|||
| Consolidated Statements of Assets and Liabilities |
|||
| Assets |
As of |
As of |
|
| Portfolio investments, at fair value |
|||
| Non-controlled, non-affiliated investments, at fair value |
$ 173,433,992 |
$ 167,325,100 |
|
| Non-controlled, affiliated investments, at fair value |
63,435,406 |
61,253,192 |
|
| Controlled, affiliated investments, at fair value |
30,158,773 |
30,055,562 |
|
| Total of portfolio investments, at fair value |
267,028,171 |
258,633,854 |
|
| Cash |
3,962,318 |
10,022,617 |
|
| Dividends and interest receivable |
762,380 |
1,417,500 |
|
| Receivable for investments sold |
- |
4,753 |
|
| Deferred financing costs |
1,803,033 |
1,986,520 |
|
| Deferred note offering costs |
227,642 |
25,743 |
|
| Prepaid expenses and other assets |
73,205 |
128,388 |
|
| Total Assets |
$ 273,856,749 |
$ 272,219,375 |
|
| Liabilities |
|||
| Credit facility payable |
$ 56,954,490 |
$ 62,499,154 |
|
| Notes payable |
5,936,000 |
- |
|
| Payable for investments purchased |
- |
8,717 |
|
| Other accrued expenses and liabilities |
153,821 |
539,417 |
|
| Directors' fees payable |
38,000 |
85,692 |
|
| Professional fees payable |
362,551 |
409,628 |
|
| Interest and credit facility expense payable |
154,693 |
216,476 |
|
| Management fee payable |
1,148,005 |
615,668 |
|
| Incentive fee payable |
806,100 |
- |
|
| Distributions payable |
4,595,700 |
4,595,700 |
|
| Unearned structuring fee revenue |
494,381 |
517,339 |
|
| Income tax liability |
1,690 |
45,272 |
|
| Deferred tax liability |
1,856,987 |
1,697,004 |
|
| Total Liabilities |
72,502,418 |
71,230,067 |
|
| Commitments and Contingencies (Note 12) |
|||
| Net Assets |
|||
| Common stock, par value $0.001 per share (100,000,000 shares authorized, 13,516,766 and 13,516,766 shares issued and outstanding, respectively) |
13,517 |
13,517 |
|
| Additional paid-in capital |
197,806,987 |
197,838,155 |
|
| Accumulated net realized gain (loss) |
71,966 |
71,712 |
|
| Undistributed investment income |
593,320 |
211,846 |
|
| Net unrealized appreciation (depreciation) on investments, net of provision for taxes of $1,859,328 and $1,697,004 as of March 31, 2015 and December 31, 2014, respectively |
2,868,541 |
2,854,078 |
|
| Total Net Assets |
201,354,331 |
200,989,308 |
|
| Total Liabilities and Net Assets |
$ 273,856,749 |
$ 272,219,375 |
|
| Net Asset Value Per Share |
$ 14.90 |
$ 14.87 |
|
| Alcentra Capital Corporation and Subsidiary |
||||
| Consolidated Statements of Operations |
||||
| Alcentra Capital Corporation and Subsidiary |
BNY Mellon-Alcentra Mezzanine III, L.P. |
|||
| Investment Income: |
For the three months ended |
For the three months ended |
||
| From non-controlled, non-affiliated investments: |
||||
| Interest income from portfolio investments |
$ 4,157,559 |
$ 1,392,791 |
||
| Paid in-kind income from portfolio investments |
735,724 |
373,338 |
||
| Other income from portfolio investments |
659,896 |
105,089 |
||
| Dividend income from portfolio investments |
- |
251,752 |
||
| From non-controlled, affiliated investments: |
||||
| Interest income from portfolio investments |
1,219,056 |
725,012 |
||
| Paid in-kind income from portfolio investments |
611,499 |
195,383 |
||
| Other income from portfolio investments |
28,358 |
21,176 |
||
| From controlled, affiliated investments: |
||||
| Interest income from portfolio investments |
575,980 |
514,320 |
||
| Paid in-kind income from portfolio investments |
198,781 |
406,120 |
||
| Other income from portfolio investments |
37,800 |
10,482 |
||
| Total investment income |
8,224,653 |
3,995,463 |
||
| Expenses: |
||||
| Management fees |
1,148,005 |
699,473 |
||
| Incentive fees |
1,807,567 |
- |
||
| Professional fees |
189,386 |
79,327 |
||
| Valuation services |
122,905 |
- |
||
| Interest and credit facility expense |
605,888 |
40,947 |
||
| Amortization of deferred financing costs |
183,487 |
- |
||
| Directors' fees |
38,000 |
- |
||
| Insurance expense |
69,535 |
- |
||
| Other expenses |
84,173 |
- |
||
| Total expenses |
4,248,946 |
819,747 |
||
| Waiver of management and incentive fees by the |
(1,001,467) |
- |
||
| Net expenses |
3,247,479 |
819,747 |
||
| Net investment income |
4,977,174 |
3,175,716 |
||
| Realized Gain (Loss) and Net Change in Unrealized Appreciation (Depreciation) From Portfolio Investments |
||||
| Net realized gain (loss) on: |
||||
| Non-controlled, non-affiliated investments |
254 |
94,409 |
||
| Non-controlled, affiliated investments |
- |
- |
||
| Controlled, affiliated investments |
- |
- |
||
| Net realized gain (loss) from portfolio investments |
254 |
94,409 |
||
| Net change in unrealized appreciation (depreciation) on: |
||||
| Non-controlled, non-affiliated investments (really Media |
(1,123,914) |
2,734,627 |
||
| Non-controlled, affiliated investments |
1,396,274 |
182,597 |
||
| Controlled, affiliated investments |
(95,573) |
279,333 |
||
| Net change in unrealized appreciation |
176,787 |
3,196,557 |
||
| Benefit/(Provision) for taxes on unrealized gain |
(162,324) |
- |
||
| Net realized gain (loss) and net change in |
14,717 |
3,290,966 |
||
| Net Increase in Net Assets from Operations |
$ 4,991,891 |
$ 6,466,682 |
||
| Basic and diluted: |
||||
| Net investment income per share |
$ 0.37 |
N.A. |
||
| Earnings per share |
$ 0.37 |
N.A. |
||
| Weighted Average Shares of Common Stock Outstanding |
13,516,766 |
N.A. |
||
| Dividends declared per common share |
$ 0.340 |
N.A. |
||
About Alcentra Capital Corporation
Alcentra (www.alcentracapital.com) is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Alcentra's investment objective is to generate both current income and capital appreciation primarily by making direct investments in lower middle-market companies in the form of subordinated debt and, to a lesser extent, senior debt and minority equity investments. Alcentra's investment activities are managed by its investment adviser, Alcentra NY, LLC.
About Alcentra NY, LLC
Alcentra NY, LLC, our investment adviser, is part of BNY Alcentra Group Holdings, Inc. ("Alcentra Group"), one of the world's leading sub-investment grade credit asset managers focusing on the U.S. and European markets. Alcentra Group has an investment track record that spans across 75 separate investment vehicles and accounts totaling approximately $23 billion (including accounts managed by Alcentra NY, LLC, Alcentra Ltd, and assets managed by Alcentra Group personnel for affiliates under dual officer arrangements).
FORWARD-LOOKING STATEMENTS
Statements included herein may contain "forward-looking statements," which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. Alcentra undertakes no duty to update any forward-looking statement made herein except as required by law. All forward-looking statements speak only as of the date of this press release.
Schedule 1
Reconciliation of Non-GAAP Financial Measures
|
Three Months Ended March 31, 2015
|
|||
| Amount |
Per Share |
||
| Net Increase in Net Assets from Operations |
$4,991,891 |
$0.37 |
|
| Less: (Provision) for taxes on unrealized gain on investments |
($162,324) |
- |
|
| Earnings before a provision for taxes on unrealized appreciation from portfolio investments |
$5,154,215 |
$0.38 |
|
SOURCE Alcentra Capital Corporation
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