BETHESDA, Md., Nov. 3, 2016 /PRNewswire/ -- American
Capital, Ltd. ("American Capital" or the "Company") (NASDAQ: ACAS)
announced consolidated net operating income ("NOI") before income
taxes for the quarter ended September 30, 2016 of $52 million, or $0.23 per diluted share, a 5% annualized return
on equity. Consolidated NOI for the quarter ended
September 30, 2016 was $34
million, or $0.15 per diluted
share. Consolidated net earnings for the quarter ended
September 30, 2016 was $141 million, or $0.63 per diluted share. As of
September 30, 2016, net asset value ("NAV") per share was
$21.40, a $0.63 per share increase from the June 30,
2016 NAV per share of $20.77.
Q3 2016 CONSOLIDATED FINANCIAL SUMMARY
- $21.40 NAV per share outstanding
- $0.63 per share increase from Q2
2016
- 13% annualized economic return from Q2 2016
- $0.23 NOI before income taxes per
diluted share, or $52 million
- (26%), or $(0.08) per diluted
share, decline over Q2 2016, or $(19)
million
- 5% annualized return on equity
- $0.15 NOI after income taxes per
diluted share, or $34 million
- (25%), or $(0.05) per diluted
share, decline over Q2 2016, or $(12)
million
- $0.63 net earnings per diluted
share, or $141 million
- 34%, or $0.16 per diluted share
increase over Q2 2016, or $35
million
- $914 million of cash proceeds
from realizations
- $562 million from the sale of
American Capital Mortgage Manager, LLC ("ACMM")
- $176 million from Sponsor Finance
and Other Investments
- $71 million from American Capital
One Stop Buyouts®
- $1,025 million of cash and cash
equivalents as of September 30, 2016
American Capital repaid in full and terminated its secured term
loan facility and its $350 million
senior unsecured five year notes. American Capital recorded a
loss on extinguishment of debt of $(7)
million, net of tax.
On July 1, 2016, pursuant to the
terms of the Mortgage Manager Purchase Agreement, American Capital
Agency Corp. acquired from American Capital Asset Management, LLC
("ACAM") all of the issued and outstanding limited liability
company interests in ACMM for a purchase price of $562 million, or $2.45 per diluted share. During the three
months ended September 30, 2016,
American Capital recognized a net realized gain of $386 million on the sale of ACMM, which was fully
offset by a reversal of unrealized appreciation of $386 million.
PORTFOLIO VALUATION
For the quarter ended
September 30, 2016, net unrealized depreciation, before income
taxes, on American Capital's consolidated investment portfolio
totaled $226 million. The
primary components of the net unrealized depreciation were:
- $325 million reversal of prior
period net unrealized appreciation associated with net realized
gains on portfolio investments, of which $386 million was associated with the reversal of
unrealized appreciation for the sale of ACMM;
- $26 million net unrealized
depreciation in Sponsor Finance and Other Investments primarily
driven by specific company performance; partially offset by
- $81 million net unrealized
appreciation in European Capital investments primarily driven by a
company that is in a sales process and specific company
performance;
- $27 million net unrealized
appreciation in Structured Products investments primarily due to
higher dealer marks and increased secondary trading as well as an
increase in loan prices; and
- $25 million unrealized
appreciation in ACAM primarily driven by assets that are currently
in a sales process as well as appreciation related to other ACAM
managed funds.
PORTFOLIO PERFORMANCE
As of September 30, 2016,
the weighted average effective interest rate on consolidated debt
investments at cost was 8.3%, 10 basis points lower than the
June 30, 2016 rate of 8.4%. Excluding the impact of debt
investments on non-accrual, the weighted average effective interest
rate on consolidated debt investments at cost as of
September 30, 2016 was 9.6%, the same as the June 30,
2016 rate of 9.6%.
As of September 30, 2016, total loans with a fair value of
$181 million were on non-accrual,
representing 9.2% of total loans at fair value, compared to
$161 million, or 7.4%, of total loans
at fair value as of June 30, 2016. The $20 million increase in the fair value of loans
on non-accrual was generally driven by an increase in fair value of
existing loans on non-accrual. Total loans on non-accrual
were valued at 65.8% of cost at the end of the quarter, a 10.5%
increase from the prior quarter. This is an estimate of the
amount the Company expects to recover on non-accruing loans.
The estimated loss on total loans at cost, defined as net
accumulated depreciation on non-accrual loans plus realized losses
on loans during the period, was $104
million, or 4.9%.
|
AMERICAN CAPITAL,
LTD.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
As of September
30, 2016, June 30, 2016 and December 31, 2015
|
|
(in millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3
|
|
Q2
|
|
Q3 2016 Versus
Q2 2016
|
|
Q4
|
|
Q3 2016 Versus
Q4 2015
|
|
2016
|
|
2016
|
|
$
|
|
%
|
|
2015
|
|
$
|
|
%
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair
value (cost of $3,660, $4,201 and $4,905, respectively)
|
$
3,294
|
|
$
4,062
|
|
$
(768)
|
|
(19%)
|
|
$
4,998
|
|
$
(1,704)
|
|
(34%)
|
|
Cash and cash
equivalents
|
1,025
|
|
881
|
|
144
|
|
16%
|
|
483
|
|
542
|
|
112%
|
|
Restricted cash and
cash equivalents
|
32
|
|
33
|
|
(1)
|
|
(3%)
|
|
46
|
|
(14)
|
|
(30%)
|
|
Interest and dividend
receivable
|
15
|
|
37
|
|
(22)
|
|
(59%)
|
|
48
|
|
(33)
|
|
(69%)
|
|
Deferred tax asset,
net
|
256
|
|
235
|
|
21
|
|
9%
|
|
198
|
|
58
|
|
29%
|
|
Trade date settlement
receivable
|
—
|
|
3
|
|
(3)
|
|
(100%)
|
|
373
|
|
(373)
|
|
(100%)
|
|
Other
|
78
|
|
83
|
|
(5)
|
|
(6%)
|
|
94
|
|
(16)
|
|
(17%)
|
|
Total
assets
|
$
4,700
|
|
$
5,334
|
|
$
(634)
|
|
(12%)
|
|
$
6,240
|
|
$
(1,540)
|
|
(25%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt, net
|
$
-
|
|
$
784
|
|
$
(784)
|
|
(100%)
|
|
$
1,253
|
|
$
(1,253)
|
|
(100%)
|
|
Other
|
124
|
|
132
|
|
(8)
|
|
(6%)
|
|
165
|
|
(41)
|
|
(25%)
|
|
Total
liabilities
|
124
|
|
916
|
|
(792)
|
|
(86%)
|
|
1,418
|
|
(1,294)
|
|
(91%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, 216.0, 215.1 and
247.3 issued and 213.8, 212.7 and 242.6 outstanding,
respectively
|
2
|
|
2
|
|
—
|
|
—%
|
|
2
|
|
—
|
|
—%
|
|
Capital in excess of
par value
|
5,412
|
|
5,398
|
|
14
|
|
—%
|
|
5,847
|
|
(435)
|
|
(7%)
|
|
Cumulative
translation adjustment, net of tax
|
(95)
|
|
(98)
|
|
3
|
|
3%
|
|
(101)
|
|
6
|
|
6%
|
|
Distributions in
excess of net realized earnings
|
(443)
|
|
(640)
|
|
197
|
|
31%
|
|
(879)
|
|
436
|
|
50%
|
|
Net unrealized
depreciation of investments
|
(300)
|
|
(244)
|
|
(56)
|
|
(23%)
|
|
(47)
|
|
(253)
|
|
(538%)
|
|
Total shareholders'
equity
|
4,576
|
|
4,418
|
|
158
|
|
4%
|
|
4,822
|
|
(246)
|
|
(5%)
|
|
Total liabilities and
shareholders' equity
|
$
4,700
|
|
$
5,334
|
|
$
(634)
|
|
(12%)
|
|
$
6,240
|
|
$
(1,540)
|
|
(25%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV per common share
outstanding
|
$21.40
|
|
$20.77
|
|
$0.63
|
|
3%
|
|
$19.88
|
|
$1.52
|
|
8%
|
|
AMERICAN CAPITAL,
LTD.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
Three Months Ended
September 30, 2016, June 30, 2016 and September 30,
2015
|
|
(in millions,
except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
Q3 2016 Versus
Q2 2016
|
|
|
|
Q3 2016 Versus
Q3 2015
|
|
|
Q3
2016
|
|
Q2
2016
|
|
$
|
|
%
|
|
Q3
2015
|
|
$
|
|
%
|
|
OPERATING
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and dividend
income
|
|
$
86
|
|
$
121
|
|
$
(35)
|
|
(29%)
|
|
$
165
|
|
$
(79)
|
|
(48%)
|
|
Fee income
|
|
8
|
|
21
|
|
(13)
|
|
(62%)
|
|
11
|
|
(3)
|
|
(27%)
|
|
Total operating
revenue
|
|
94
|
|
142
|
|
(48)
|
|
(34%)
|
|
176
|
|
(82)
|
|
(47%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
5
|
|
15
|
|
(10)
|
|
(67%)
|
|
21
|
|
(16)
|
|
(76%)
|
|
Salaries, benefits
and stock-based compensation
|
|
24
|
|
27
|
|
(3)
|
|
(11%)
|
|
31
|
|
(7)
|
|
(23%)
|
|
European Capital
management fees
|
|
2
|
|
2
|
|
—
|
|
—%
|
|
3
|
|
(1)
|
|
(33%)
|
|
General and
administrative
|
|
11
|
|
27
|
|
(16)
|
|
(59%)
|
|
13
|
|
(2)
|
|
(15%)
|
|
Total operating
expenses
|
|
42
|
|
71
|
|
(29)
|
|
(41%)
|
|
68
|
|
(26)
|
|
(38%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME BEFORE INCOME TAXES
|
|
52
|
|
71
|
|
(19)
|
|
(27%)
|
|
108
|
|
(56)
|
|
(52%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
provision
|
|
(18)
|
|
(25)
|
|
7
|
|
28%
|
|
(33)
|
|
15
|
|
45%
|
|
NET OPERATING
INCOME
|
|
34
|
|
46
|
|
(12)
|
|
(26%)
|
|
75
|
|
(41)
|
|
(55%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on
extinguishment of debt, net of tax
|
|
(7)
|
|
—
|
|
(7)
|
|
(100%)
|
|
—
|
|
(7)
|
|
(100%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio company
investments
|
|
326
|
|
191
|
|
135
|
|
71%
|
|
(68)
|
|
394
|
|
NM
|
|
Foreign currency
transactions
|
|
—
|
|
(4)
|
|
4
|
|
100%
|
|
(10)
|
|
10
|
|
100%
|
|
Derivative agreements
and other
|
|
—
|
|
—
|
|
—
|
|
—%
|
|
(2)
|
|
2
|
|
100%
|
|
Tax (provision)
benefit
|
|
(156)
|
|
4
|
|
(160)
|
|
NM
|
|
23
|
|
(179)
|
|
NM
|
|
Total net realized
gain (loss)
|
|
170
|
|
191
|
|
(21)
|
|
(11%)
|
|
(57)
|
|
227
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
appreciation (depreciation)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio company
investments
|
|
(226)
|
|
(161)
|
|
(65)
|
|
(40%)
|
|
(60)
|
|
(166)
|
|
(277%)
|
|
Foreign currency
translation
|
|
(8)
|
|
(11)
|
|
3
|
|
27%
|
|
(2)
|
|
(6)
|
|
(300%)
|
|
Derivative agreements
and other
|
|
(4)
|
|
(6)
|
|
2
|
|
33%
|
|
1
|
|
(5)
|
|
NM
|
|
Tax
benefit
|
|
182
|
|
47
|
|
135
|
|
287%
|
|
6
|
|
176
|
|
NM
|
|
Total net unrealized
depreciation
|
|
(56)
|
|
(131)
|
|
75
|
|
57%
|
|
(55)
|
|
(1)
|
|
(2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ("NET EARNINGS
(LOSS)")
|
|
$
141
|
|
$
106
|
|
$
35
|
|
33%
|
|
$
(37)
|
|
$
178
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME BEFORE INCOME TAXES PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.24
|
|
$
0.33
|
|
$
(0.09)
|
|
(27%)
|
|
$
0.40
|
|
$
(0.16)
|
|
(40%)
|
|
Diluted
|
|
$
0.23
|
|
$
0.31
|
|
$
(0.08)
|
|
(26%)
|
|
$
0.40
|
|
$
(0.17)
|
|
(43%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET OPERATING
INCOME PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.16
|
|
$
0.21
|
|
$
(0.05)
|
|
(24%)
|
|
$
0.28
|
|
$
(0.12)
|
|
(43%)
|
|
Diluted
|
|
$
0.15
|
|
$
0.20
|
|
$
(0.05)
|
|
(25%)
|
|
$
0.28
|
|
$
(0.13)
|
|
(46%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET REALIZED GAIN
PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.92
|
|
$
1.09
|
|
$
(0.17)
|
|
(16%)
|
|
$
0.07
|
|
$
0.85
|
|
NM
|
|
Diluted
|
|
$
0.88
|
|
$
1.05
|
|
$
(0.17)
|
|
(16%)
|
|
$
0.07
|
|
$
0.81
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET EARNINGS
(LOSS) PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.66
|
|
$
0.49
|
|
$
0.17
|
|
35%
|
|
$
(0.14)
|
|
$
0.80
|
|
NM
|
|
Diluted
|
|
$
0.63
|
|
$
0.47
|
|
$
0.16
|
|
34%
|
|
$
(0.14)
|
|
$
0.77
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OF COMMON STOCK OUTSTANDING
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
214.9
|
|
216.6
|
|
(1.7)
|
|
(1%)
|
|
267.7
|
|
(52.8)
|
|
(20%)
|
|
Diluted
|
|
225.1
|
|
226.7
|
|
(1.6)
|
|
(1%)
|
|
267.7
|
|
(42.6)
|
|
(16%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM = Not
meaningful
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMERICAN CAPITAL,
LTD.
|
|
OTHER FINANCIAL
INFORMATION
|
|
Three Months Ended
September 30, 2016, June 30, 2016 and September 30,
2015
|
|
(in millions,
except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2016 Versus
Q2 2016
|
|
|
|
Q3 2016 Versus
Q3 2015
|
|
Q3
2016
|
|
Q2
2016
|
|
$
|
|
%
|
|
Q3
2015
|
|
$
|
|
%
|
|
Assets Under
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Capital
Total Assets at Fair Value
|
$
4,700
|
|
$
5,334
|
|
$
(634)
|
|
(12%)
|
|
$
8,168
|
|
$
(3,468)
|
|
(42%)
|
|
Externally Managed
Assets at Fair Value(1)
|
4,813
|
|
70,294
|
|
(65,481)
|
|
(93%)
|
|
71,943
|
|
(67,130)
|
|
(93%)
|
|
Total
|
$
9,513
|
|
$
75,628
|
|
$
(66,115)
|
|
(87%)
|
|
$
80,111
|
|
$
(70,598)
|
|
(88%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third-Party Earning
Assets Under Management(2)
|
$
4,864
|
|
$
13,922
|
|
$
(9,058)
|
|
(65%)
|
|
$
15,105
|
|
$
(10,241)
|
|
(68%)
|
|
Total Earning Assets
Under Management(3)
|
$
9,564
|
|
$
19,256
|
|
$
(9,692)
|
|
(50%)
|
|
$
23,273
|
|
$
(13,709)
|
|
(59%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
New
Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Lien
Senior Debt
|
$
—
|
|
$
—
|
|
$
—
|
|
—%
|
|
$
303
|
|
$
(303)
|
|
(100%)
|
|
Second Lien
Senior Debt
|
4
|
|
119
|
|
(115)
|
|
(97%)
|
|
138
|
|
(134)
|
|
(97%)
|
|
Mezzanine
Debt
|
—
|
|
—
|
|
—
|
|
—%
|
|
14
|
|
(14)
|
|
(100%)
|
|
Preferred
Equity
|
—
|
|
1
|
|
(1)
|
|
(100%)
|
|
4
|
|
(4)
|
|
(100%)
|
|
Common
Equity
|
5
|
|
46
|
|
(41)
|
|
(89%)
|
|
85
|
|
(80)
|
|
(94%)
|
|
Structured
Products
|
—
|
|
—
|
|
—
|
|
—%
|
|
147
|
|
(147)
|
|
(100%)
|
|
Total by Security
Type
|
$
9
|
|
$
166
|
|
$
(157)
|
|
(95%)
|
|
$
691
|
|
$
(682)
|
|
(99%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments in ACAM
and Fund Development
|
$
5
|
|
$
46
|
|
$
(41)
|
|
(89%)
|
|
$
82
|
|
$
(77)
|
|
(94%)
|
|
Sponsor Finance and
Other Investments
|
—
|
|
97
|
|
(97)
|
|
(100%)
|
|
191
|
|
(191)
|
|
(100%)
|
|
European
Capital
|
—
|
|
1
|
|
(1)
|
|
(100%)
|
|
14
|
|
(14)
|
|
(100%)
|
|
Structured
Products
|
—
|
|
—
|
|
—
|
|
—%
|
|
147
|
|
(147)
|
|
(100%)
|
|
Senior Floating Rate
Loans
|
—
|
|
—
|
|
—
|
|
—%
|
|
223
|
|
(223)
|
|
(100%)
|
|
Add-on Financing for
Acquisitions
|
4
|
|
22
|
|
(18)
|
|
(82%)
|
|
—
|
|
4
|
|
100%
|
|
Add-on Financing for
Growth and Working Capital
|
—
|
|
—
|
|
—
|
|
—%
|
|
33
|
|
(33)
|
|
(100%)
|
|
Add-on Financing for
Distressed Situations
|
—
|
|
—
|
|
—
|
|
—%
|
|
1
|
|
(1)
|
|
(100%)
|
|
Total by
Use
|
$
9
|
|
$
166
|
|
$
(157)
|
|
(95%)
|
|
$
691
|
|
$
(682)
|
|
(99%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realizations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
Investments
|
$
635
|
|
$
447
|
|
$
188
|
|
42%
|
|
$
177
|
|
$
458
|
|
259%
|
|
Principal
Prepayments
|
195
|
|
223
|
|
(28)
|
|
(13%)
|
|
41
|
|
154
|
|
376%
|
|
Loan Syndications and
Sales
|
41
|
|
64
|
|
(23)
|
|
(36%)
|
|
75
|
|
(34)
|
|
(45%)
|
|
Payment of Accrued
PIK Notes and Dividends and Accreted OID
|
22
|
|
122
|
|
(100)
|
|
(82%)
|
|
9
|
|
13
|
|
144%
|
|
Scheduled Principal
Amortization
|
21
|
|
21
|
|
—
|
|
—%
|
|
192
|
|
(171)
|
|
(89%)
|
|
Total by
Source
|
$
914
|
|
$
877
|
|
$
37
|
|
4%
|
|
$
494
|
|
$
420
|
|
85%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American Capital
Asset Management
|
$
579
|
|
$
20
|
|
$
559
|
|
NM
|
|
$
32
|
|
$
547
|
|
NM
|
|
Sponsor Finance and
Other Investments
|
176
|
|
222
|
|
(46)
|
|
(21%)
|
|
99
|
|
77
|
|
78%
|
|
American Capital One
Stop Buyouts®
|
71
|
|
562
|
|
(491)
|
|
(87%)
|
|
7
|
|
64
|
|
914%
|
|
European
Capital
|
68
|
|
23
|
|
45
|
|
196%
|
|
72
|
|
(4)
|
|
(6%)
|
|
Structured
Products
|
17
|
|
15
|
|
2
|
|
13%
|
|
22
|
|
(5)
|
|
(23%)
|
|
Senior Floating Rate
Loans
|
3
|
|
35
|
|
(32)
|
|
(91%)
|
|
262
|
|
(259)
|
|
(99%)
|
|
Total by Business
Line
|
$
914
|
|
$
877
|
|
$
37
|
|
4%
|
|
$
494
|
|
$
420
|
|
85%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Appreciation,
Depreciation, Gain and Loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Realized
Gain
|
$
417
|
|
$
347
|
|
$
70
|
|
20%
|
|
$
46
|
|
$
371
|
|
807%
|
|
Gross Realized
Loss
|
(91)
|
|
(156)
|
|
65
|
|
42%
|
|
(114)
|
|
23
|
|
20%
|
|
Portfolio Net
Realized Gain (Loss)
|
326
|
|
191
|
|
135
|
|
71%
|
|
(68)
|
|
394
|
|
NM
|
|
Foreign Currency
Transactions
|
—
|
|
(4)
|
|
4
|
|
100%
|
|
(10)
|
|
10
|
|
100%
|
|
Derivative Agreements
and Other
|
—
|
|
—
|
|
—
|
|
—%
|
|
(2)
|
|
2
|
|
100%
|
|
Tax (Provision)
Benefit
|
(156)
|
|
4
|
|
(160)
|
|
NM
|
|
23
|
|
(179)
|
|
NM
|
|
Net Realized Gain
(Loss)
|
170
|
|
191
|
|
(21)
|
|
(11%)
|
|
(57)
|
|
227
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Unrealized
Depreciation of American Capital One Stop Buyouts®
|
(8)
|
|
(23)
|
|
15
|
|
65%
|
|
(45)
|
|
37
|
|
82%
|
|
Net Unrealized
(Depreciation) Appreciation of American Capital Sponsor Finance and
Other Investments
|
(26)
|
|
47
|
|
(73)
|
|
NM
|
|
8
|
|
(34)
|
|
NM
|
|
Net Unrealized
Appreciation of European Capital Investments
|
81
|
|
4
|
|
77
|
|
NM
|
|
26
|
|
55
|
|
212%
|
|
Net Unrealized
Appreciation (Depreciation) of ACAM
|
25
|
|
(28)
|
|
53
|
|
NM
|
|
(55)
|
|
80
|
|
NM
|
|
Net Unrealized
Depreciation of Senior Floating Rate Loans
|
—
|
|
—
|
|
—
|
|
—%
|
|
(19)
|
|
19
|
|
100%
|
|
Net Unrealized
Appreciation (Depreciation) of Structured Products
|
27
|
|
20
|
|
7
|
|
35%
|
|
(45)
|
|
72
|
|
NM
|
|
Reversal of Prior
Period Net Unrealized (Appreciation) Depreciation Upon
Realization
|
(325)
|
|
(181)
|
|
(144)
|
|
(80%)
|
|
70
|
|
(395)
|
|
NM
|
|
Net Unrealized
Depreciation of Portfolio Company Investments
|
(226)
|
|
(161)
|
|
(65)
|
|
(40%)
|
|
(60)
|
|
(166)
|
|
(277%)
|
|
Foreign Currency
Translation - European Capital Investments
|
(8)
|
|
(14)
|
|
6
|
|
43%
|
|
(4)
|
|
(4)
|
|
(100%)
|
|
Foreign Currency
Translation - Other
|
—
|
|
3
|
|
(3)
|
|
(100%)
|
|
2
|
|
(2)
|
|
(100%)
|
|
Derivative Agreements
and Other
|
(4)
|
|
(6)
|
|
2
|
|
33%
|
|
1
|
|
(5)
|
|
NM
|
|
Tax
Benefit
|
182
|
|
47
|
|
135
|
|
287%
|
|
6
|
|
176
|
|
NM
|
|
Net Unrealized
Depreciation of Investments
|
(56)
|
|
(131)
|
|
75
|
|
57%
|
|
(55)
|
|
(1)
|
|
(2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Gains, Losses,
Appreciation and Depreciation
|
$
114
|
|
$
60
|
|
$
54
|
|
90%
|
|
$
(112)
|
|
$
226
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAV per
Share
|
$
21.40
|
|
$
20.77
|
|
$
0.63
|
|
3%
|
|
$
20.44
|
|
$
0.96
|
|
5%
|
|
Market
Capitalization
|
$
3,615
|
|
$
3,367
|
|
$
248
|
|
7%
|
|
$
3,157
|
|
$
458
|
|
15%
|
|
Total Enterprise
Value(4)
|
$
2,590
|
|
$
3,270
|
|
$
(680)
|
|
(21%)
|
|
$
5,562
|
|
$
(2,972)
|
|
(53%)
|
|
Asset Coverage
Ratio
|
N/A
|
|
658%
|
|
|
|
|
|
300%
|
|
|
|
|
|
Debt to Equity
Ratio
|
0.0x
|
|
0.2x
|
|
|
|
|
|
0.5x
|
|
|
|
|
|
Credit
Quality
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on SFRLs at Period End(5)
|
—%
|
|
—%
|
|
|
|
|
|
4.2%
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on Debt Investments, Excluding SFRLs, at
Period End(5)
|
8.3%
|
|
8.4%
|
|
|
|
|
|
8.7%
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on European Capital's Debt Investments at
Period End(5)
|
1.9%
|
|
1.7%
|
|
|
|
|
|
3.7%
|
|
|
|
|
|
Weighted Average
Effective Interest Rate on All Debt Investments at Period
End(5)
|
8.3%
|
|
8.4%
|
|
|
|
|
|
6.5%
|
|
|
|
|
|
European Capital
Loans on Non-Accrual at Cost
|
$
83
|
|
$
95
|
|
$
(12)
|
|
(13%)
|
|
$
163
|
|
$
(80)
|
|
(49%)
|
|
Loans on Non-Accrual
at Cost, excluding European Capital
|
$
192
|
|
$
196
|
|
$
(4)
|
|
(2%)
|
|
$
179
|
|
$
13
|
|
7%
|
|
Total Loans on
Non-Accrual at Cost
|
$
275
|
|
$
291
|
|
$
(16)
|
|
(5%)
|
|
$
342
|
|
$
(67)
|
|
(20%)
|
|
European Capital
Loans on Non-Accrual at Fair Value
|
$
84
|
|
$
32
|
|
$
52
|
|
163%
|
|
$
42
|
|
$
42
|
|
100%
|
|
Loans on Non-Accrual
at Fair Value, excluding European Capital
|
$
97
|
|
$
129
|
|
$
(32)
|
|
(25%)
|
|
$
85
|
|
$
12
|
|
14%
|
|
Total Loans on
Non-Accrual at Fair Value
|
$
181
|
|
$
161
|
|
$
20
|
|
12%
|
|
$
127
|
|
$
54
|
|
43%
|
|
Total Non-Accrual
Loans at Cost as a Percentage of Total Loans at Cost
|
13.2%
|
|
12.6%
|
|
|
|
|
|
7.3%
|
|
|
|
|
|
Total Non-Accrual
Loans at Fair Value as a Percentage of Total Loans at Fair
Value
|
9.2%
|
|
7.4%
|
|
|
|
|
|
2.9%
|
|
|
|
|
|
Total Non-Accruing
Loans at Fair Value as a Percentage of Non-Accruing Loans at
Cost
|
65.8%
|
|
55.3%
|
|
|
|
|
|
37.1%
|
|
|
|
|
|
Estimated Loss on
Non-Accrual Loans(6)
|
$
104
|
|
$
139
|
|
$
(35)
|
|
(25%)
|
|
$
215
|
|
$
(111)
|
|
(52%)
|
|
Estimated Loss as a
Percentage of Total Loans at Cost
|
4.9%
|
|
6.0%
|
|
|
|
|
|
4.7%
|
|
|
|
|
|
Past Due Loans at
Cost
|
$
19
|
|
$
18
|
|
$
1
|
|
6%
|
|
$
—
|
|
$
19
|
|
100%
|
|
Debt to Equity
Conversions at Cost
|
$
—
|
|
$
—
|
|
$
—
|
|
—%
|
|
$
3
|
|
$
(3)
|
|
(100%)
|
|
Return on Average
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LTM Net Operating
Income Before Income Taxes Return on Average Shareholders'
Equity
|
6.6%
|
|
7.5%
|
|
|
|
|
|
6.3%
|
|
|
|
|
|
LTM Net Operating
Income Return on Average Shareholders' Equity
|
4.6%
|
|
5.2%
|
|
|
|
|
|
4.2%
|
|
|
|
|
|
LTM Net Realized
Earnings (Loss) Return on Average Shareholders' Equity
|
7.4%
|
|
3.4%
|
|
|
|
|
|
(2.6%)
|
|
|
|
|
|
LTM Net (Loss)
Earnings Return on Average Shareholders' Equity
|
(1.3%)
|
|
(4.9%)
|
|
|
|
|
|
1.4%
|
|
|
|
|
|
Current Quarter
Annualized Net Operating Income Before Income Taxes Return on
Average Shareholders' Equity
|
4.6%
|
|
6.4%
|
|
|
|
|
|
8.0%
|
|
|
|
|
|
Current Quarter
Annualized Net Operating Income Return on Average Shareholders'
Equity
|
3.1%
|
|
4.1%
|
|
|
|
|
|
5.6%
|
|
|
|
|
|
Current Quarter
Annualized Net Realized Gain Return on Average Shareholders'
Equity
|
17.5%
|
|
21.2%
|
|
|
|
|
|
1.3%
|
|
|
|
|
|
Current Quarter
Annualized Net Earnings (Loss) Return on Average Shareholders'
Equity
|
12.6%
|
|
9.5%
|
|
|
|
|
|
(2.7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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______________________________
N/A = Not applicable
NM = Not meaningful
|
|
(1) Includes
total assets of American Capital Senior Floating, American Capital
Equity I, American Capital Equity II, American Capital Equity III,
ACAS CLO 2007-1, ACAS CLO 2012-1, ACAS CLO 2013-1, ACAS CLO 2013-2,
ACAS CLO
2014-1, ACAS CLO 2014-2, ACAS CLO
2015-1, ACAS CLO 2015-2, ACAS CLO Fund I, ACAS CLO IX, European
Capital UK SME Debt, European Capital Private Debt and European
Capital Private Equity 1, less American Capital's
investment in the funds. For the
three months ended June 30, 2016 and September 30, 2015, also
includes total assets of American Capital Agency and American
Capital Mortgage.
|
|
(2) Represents
third-party earning assets under management from which the
associated base management fees are calculated, less American
Capital's investment in the funds.
|
|
(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.
|
|
(5) The
weighted average effective interest rate is computed as (a) annual
stated interest rate or yield earned plus the net annual
amortization of original issue discount and market discount or
premium earned on debt investments, divided
by (b) total debt investments
at cost basis.
|
|
(6) Net
accumulated depreciation on non-accrual loans plus realized losses
on loans during the period presented.
|
ABOUT AMERICAN CAPITAL
American Capital, Ltd.
(NASDAQ: ACAS) 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 and
structured products. American Capital manages $10 billion of assets, including assets on its
balance sheet and fee earning assets under management by affiliated
managers. Through a wholly owned affiliate, American Capital
manages publicly traded American Capital Senior Floating, Ltd.
(NASDAQ: ACSF) with $125 million of
total net book value. American Capital and its affiliates
operate out of six offices in the U.S. and Europe. 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, 2015 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/american-capital-reports-noi-before-income-taxes-of-023-per-diluted-share-net-earnings-of-063-per-diluted-share-and-nav-per-share-of-2140-300357140.html
SOURCE American Capital, Ltd.