MCG Capital: An Overpriced BDC
Jul. 28, 2015, 8:34 AM
- MCG Capital (NASDAQ:MCGC): Q2 EPS of $0.00
- Revenue of $1.63M (-82.9% Y/Y) beats by $0.33M.
Apr. 29, 2015, 7:23 AM
Apr. 29, 2015, 7:14 AM
- MCG Capital (NASDAQ:MCGC): Q1 EPS of $0.03 beats by $0.05.
- Revenue of $1.95M (-79.1% Y/Y) beats by $0.05M.
Mar. 2, 2015, 10:46 AM
- Q4 net income of $2.1M or $0.05 per share. 7.8M shares repurchased during quarter for average price of $3.74 each, includes 4.9M shares purchased on Dec. 10 in the "Dutch Auction" for $3.75 each.
- Company continues to look for a buyer, or some other strategic alternative.
- No conference call has been scheduled.
- Outlook: "We continue to believe that current market conditions in our primary lending markets are consistent with a peak of a credit cycle... Our primary asset is unencumbered cash and we do not have sufficient net earning assets to generate positive net operating income at this time."
- Previously: MCG Capital beats by $0.05, beats on revenue (March 2)
- MCGC flat on the session at $3.90.
Mar. 2, 2015, 9:05 AM
- MCG Capital (NASDAQ:MCGC): Q4 EPS of $0.05 beats by $0.05.
- Revenue of $2.28M (-79.6% Y/Y) beats by $0.25M.
Oct. 29, 2014, 9:12 AM
- Reopened for trade, MCG Capital (NASDAQ:MCGC) is ahead 14.5% to $3.48 after the company launches a Dutch Tender for more than half the float.
- Turning to operations, the company reported net interest income of $4M, down 62.6% from a year ago as the company shed investments.
- NAV per share of $4.48 vs. $4.74 at 2014's start.
- 2.45M shares repurchased during quarter at an average price of $3.52 each.
- "We believe that current market conditions in our primary lending markets are consistent with a peak of a credit cycle. We believe that we have successfully monetized challenging investments into a very liquid market, improving the quality of our assets and our cash position and resulting in a stronger balance sheet."
- Previously: MCG Capital misses by $0.01, misses on revenue
Oct. 29, 2014, 8:25 AM
- MCG Capital (NASDAQ:MCGC): Q3 EPS of $0.03 misses by $0.01.
- Revenue of $5.66M (-57.0% Y/Y) misses by $0.82M.
Apr. 28, 2014, 7:50 AM
- Net operating income of $4.3M of $0.06 per share compares to $8M one year ago. No new originations during quarter; $6.7M in advances made to existing portfolio companies.
- New repurchase plan of up to $50M worth of MCGC stock replaces $35M program. At the current stock price, $50M will buy back around 14M shares, of 20% of the float. 2.8M shares repurchased during Q1.
- Employee cutbacks coming in Q2, with expected charges of $3.6M or $0.06 per share. With new management focus on stabilizing the investment portfolio and buybacks, company expects to stop providing NOI or other operating metric guidance.
- CC at 9 ET
- Previously: MCG Capital misses on revenue
- April 21: Saville out at MCG; Keith Kennedy takes over
Apr. 28, 2014, 7:33 AM
- MCG Capital (MCGC): Q1 EPS of -$0.27
- Revenue of $9.34M (-29.5% Y/Y) misses by $0.59M.
Apr. 27, 2014, 5:30 PM
Mar. 5, 2014, 7:52 AM
- Net operating income of $6.3M or $0.09 per share compares to $0.125 dividend. $37.1M of originations and advances during quarter, including $33M to two new portfolio companies. $39.6M of portfolio monetized. 512K shares repurchased at average price of $4.73 each. For full year, about 1M shares repurchased at average price of $4.62 each. Operating efficiency: Costs (excl. interest expense) as a percentage of total assets falls to 2.2% from 3.6% two years ago.
- Outlook: "We believe that current market conditions in our primary lending markets are consistent with the peak of a credit cycle. The current supply of debt capital exceeds the demand by issuers in our markets, resulting in lower pricing and weaker contractual protections ... We intend to redeploy our excess liquidity in a cautious and deliberate manner." Money will instead go to buybacks as share repurchase program is boosted to $35M from $25M.
- NOI for FY2014 is guided for $0.25-$0.30 per share vs. $0.42 for 2013. Management expects distribution to be cut to something in the area of $0.07 per share for the rest of 2014.
- MCGC -0.5% premarket
- Last week: Hercules warns over frothy market
Mar. 5, 2014, 7:33 AM
- MCG Capital (MCGC): Q4 NOI of $0.09 misses by $0.02.
Mar. 5, 2014, 12:05 AM
Mar. 4, 2014, 5:30 PM
Mar. 4, 2014, 12:05 AM
MCG Capital Corporation is a solutions-focused commercial finance company that provides capital and advisory services to middle-market companies in the United States. It is aninternally managed, non-diversified, closed-end investment company.
Industry: Asset Management
Country: United States
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