Business Development Corporation of America Announces Second Quarter 2012 Results from Operations
NEW YORK, Aug. 6, 2012 /PRNewswire/ -- Business Development Corporation of America ("BDCA" or the "Company") announced results of operations for the second quarter ended June 30, 2012.
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The Company commenced operations on August 25, 2011, subsequent to raising sufficient funds to meet escrow break requirements. For the six months ended June 30, 2012, BDCA acquired $80.4 million of investments, in 37 individual investments. In addition, BDCA received proceeds of $23.5 million during this period from selling certain investments and repayments. The Company realized gains of $0.6 million from exiting such investments. Net investment income (determined in accordance with generally accepted accounting principles) of $1.4 million was generated during the six months ended June 30, 2012, excluding realized and unrealized gains and losses. During the same period, the Company paid distributions of $0.7 million.
"Once again, we are pleased to report another strong quarter of operations for BDCA," stated Peter M. Budko, president and chief operating officer of the Company. Mr. Budko noted, "We continue to fully cover our regular monthly dividend from our core net investment income rather than rely upon investment gains and new equity raised to cover shortfalls. Our portfolio continues to be of high quality, with over 91 percent of our assets invested in senior secured loans. With continued unease in Europe and other economic concerns, we believe that our strategy of originating and participating in well-structured, senior secured loans to middle market U.S. companies provides our investors with a conservative investment alternative."
Portfolio Highlights (dollar amounts in thousands):
| June 30, 2012 |
December 31, 2011 |
|||||
| Investments, at fair value |
$ 71,846 |
$ 14,271 |
||||
| Net asset value per share (1) |
$ 9.20 |
$ 9.00 |
||||
| Weighted average effective yield (2) |
9.09% |
10.79% |
||||
| Number of portfolio investments |
32 |
34 |
||||
| Number of industry groups |
14 |
18 |
||||
| (1) |
Net asset value per share and common shares outstanding for the year ended December 31, 2011 have been adjusted to reflect a stock dividend of $0.05 per share declared on March 29, 2012. |
|||||
| (2) |
Includes the effect of the amortization or accretion of loan premiums or discounts. |
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BUSINESS DEVELOPMENT CORPORATION OF AMERICA
STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share and per share data)
| June 30, 2012 |
December 31, 2011 |
||||
| (Unaudited) |
|||||
| ASSETS |
|||||
| Investments, at fair value (amortized cost of $71,899 and $14,294, respectively) |
$ |
71,846 |
$ |
14,271 |
|
| Cash and cash equivalents |
10,651 |
828 |
|||
| Interest receivable |
380 |
142 |
|||
| Due from affiliate |
2,097 |
918 |
|||
| Deferred credit facility financing costs, net |
25 |
50 |
|||
| Prepaid expenses and other assets |
189 |
41 |
|||
| Receivable for unsettled trades |
1,935 |
— |
|||
| Total assets |
$ |
87,123 |
$ |
16,250 |
|
| LIABILITIES |
|||||
| Revolving credit facility |
$ |
10,000 |
$ |
5,900 |
|
| Payable for unsettled trades |
14,642 |
1,914 |
|||
| Accounts payable and accrued expenses |
72 |
154 |
|||
| Interest and credit facility fees payable |
31 |
19 |
|||
| Stockholder distributions payable |
427 |
56 |
|||
| Total liabilities |
25,172 |
8,043 |
|||
| NET ASSETS |
|||||
| Preferred stock, $.001 par value, 50,000,000 shares authorized, none issued and outstanding |
— |
— |
|||
| Common stock, $.001 par value, 450,000,000 shares authorized |
7 |
1 |
|||
| Capital in excess of par value |
61,671 |
8,235 |
|||
| Accumulated undistributed (distributions in excess of) net investment income |
7 |
(7) |
|||
| Accumulated undistributed net realized gain from investments |
319 |
1 |
|||
| Net unrealized depreciation on investments |
(53) |
(23) |
|||
| Net assets |
61,951 |
8,207 |
|||
| Total liabilities and net assets |
$ |
87,123 |
$ |
16,250 |
|
| Net asset value per share * |
$ |
9.20 |
$ |
9.00 |
|
*Net asset value per share and common shares outstanding for the year ended December 31, 2011 have been adjusted to reflect a stock dividend of $0.05 per share declared on March 29, 2012.
BUSINESS DEVELOPMENT CORPORATION OF AMERICA
STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)
| For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||
| 2012 |
2011 |
2012 |
2011 |
|||||||||
| Investment income: |
||||||||||||
| Interest income |
$ |
1,148 |
$ |
— |
$ |
1,718 |
$ |
— |
||||
| Other income |
8 |
— |
49 |
— |
||||||||
| Total investment income |
1,156 |
— |
1,767 |
— |
||||||||
| Operating expenses: |
||||||||||||
| Interest and credit facility financing expenses |
122 |
12 |
228 |
25 |
||||||||
| Professional fees |
108 |
— |
227 |
— |
||||||||
| Directors fees |
11 |
— |
39 |
— |
||||||||
| Insurance |
52 |
— |
103 |
— |
||||||||
| Management fees |
230 |
— |
328 |
— |
||||||||
| Incentive fees |
246 |
— |
396 |
— |
||||||||
| Other administrative |
13 |
100 |
40 |
150 |
||||||||
| Expenses before expense waivers and reimbursements |
782 |
112 |
1,361 |
175 |
||||||||
| Waiver of management and incentive fees |
(476) |
— |
(724) |
— |
||||||||
| Expense support reimbursement |
(189) |
— |
(266) |
— |
||||||||
| Total expenses, net of expense waivers and reimbursements |
117 |
112 |
371 |
175 |
||||||||
| Net investment income (loss) |
1,039 |
(112) |
1,396 |
(175) |
||||||||
| Realized and unrealized gain on investments: |
||||||||||||
| Net realized gain from investments |
502 |
— |
582 |
— |
||||||||
| Net unrealized depreciation on investments |
(363) |
— |
(30) |
— |
||||||||
| Net realized and unrealized gain on investments |
139 |
— |
552 |
— |
||||||||
| Net increase (decrease) in net assets resulting from operations |
$ |
1,178 |
$ |
(112) |
$ |
1,948 |
$ |
(175) |
||||
| Per share information - basic and diluted*: |
||||||||||||
| Net investment income (loss) |
$ |
0.21 |
$ |
(5.06) |
$ |
0.41 |
$ |
(7.88) |
||||
| Net increase (decrease) in net assets resulting from operations |
$ |
0.23 |
$ |
(5.06) |
$ |
0.57 |
$ |
(7.88) |
||||
| Weighted average common shares outstanding |
5,055,135 |
22,223 |
3,397,075 |
22,223 |
||||||||
*Per share information - basic and diluted and weighted average common shares outstanding for the three and six months ended June 30, 2011 have been adjusted to reflect a stock dividend of $0.05 per share declared on March 29, 2012.
The statements in this press release that are not historical facts may be forward-looking statements. These forward looking statements involve substantial risks and uncertainties. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements BDCA makes. Forward-looking statements may include, but are not limited to, statements regarding stockholder liquidity and investment value and returns. The words "anticipates," "believes," "expects," "estimates," "projects," "plans," "intends," "may," "will," "would," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that might cause such differences include, but are not limited to: the impact of current and future regulation; the impact of credit rating changes; the effects of competition; the ability to attract, develop and retain executives and other qualified employees; changes in general economic or market conditions; and other factors, many of which are beyond our control, including other factors included in our reports filed with the SEC, particularly in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of BDCA's latest Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, each as filed with the SEC, as such Risk Factors may be updated from time to time in subsequent reports. BDCA does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Business Development Corporation of America
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