MVC Capital Announces First Quarter Fiscal 2012 Results
PURCHASE, N.Y.--(BUSINESS WIRE)-- MVC Capital, Inc. (MVC), a publicly traded business development company that makes private equity and debt investments, today announced its financial results for the first fiscal quarter ended January 31, 2012.
As of January 31, 2012, the Company's net assets were approximately $407.6 million, or $17.04 per share, compared with net assets of approximately $419.5 million, or $17.54 per share at the beginning of the quarter and $415.9 million, or $17.33 per share, at the end of the same period last year. During the quarter, the Valuation Committee, which is comprised of three independent directors, adjusted the fair values of thirteen portfolio companies, resulting in a net decrease of approximately $10.4 million or $0.44 per share. In arriving at these determinations and consistent with the Company's valuation procedures and ASC 820, the Valuation Committee took into account a variety of factors, including the performance of the portfolio companies, the impact of changes in market multiples within certain sectors and fluctuations in currency valuations.
In the first quarter of 2012, the Company earned approximately $2.7 million in interest and dividend income, and approximately $976,000 in fee and other income, representing a decrease in total operating income of approximately $880,000 as compared to the same quarter in 2011. The decrease in operating income over the same period last year was primarily due to the repayment of investments that provided the Company with current income and a decrease in dividend income from the sale of portfolio companies.
The Company reported $1.3 million in net operating income for the first quarter, as compared to net operating income of $1.8 million for the same quarter in 2011. The Company's provision for incentive compensation was decreased by approximately $1.9 million during the quarter as a result of decreases in the valuations of certain portfolio companies.
During the quarter, the Company made one new investment and four follow-on investments in two existing portfolio companies, committing total capital of approximately $7.3 million. The Fund's new investment was made into Freshii USA, Inc. Follow-on investments were made in the MVC Private Equity Fund, L.P. (PE Fund) through MVC Partners Limited Partnership interest and MVCFS General Partnership interest, contributing approximately $6.3 million of its $20.1 million capital commitment to the PE Fund, which as of the end of the quarter has invested in Plymouth Rock Energy, LLC and Gibdock Limited.
"We believe that by maintaining our focus on the portfolio, we should be in a position to enhance shareholder returns in both the near and long-term, said Michael Tokarz, Chairman and Portfolio Manager. We are actively looking at exit opportunities within our portfolio and are encouraged by the momentum we are seeing in the marketplace.
As of January 31, 2012, the Company had 35 investments across 27 industries with 79.4% of our portfolio comprised of equity investments and 20.6% comprised of debt and yielding investments.
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 the MVC's website at www.mvccapital.com. For MVC's investor relations, please call 914-510-9400. All media inquiries should be directed to Nathaniel Garnick at 212-687-8080.
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, and these factors are enumerated in the company's periodic filings with the Securities and Exchange Commission.
MVC Capital, Inc.
Nathaniel Garnick, 212-687-8080
Source: MVC Capital, Inc.Copyright Business Wire 2012