RYE BROOK, N.Y.--()--Full Circle Capital Corporation (Nasdaq: FULL) (the “Company”) today announced its financial results for the second quarter of fiscal 2013 ended December 31, 2012.
“Net investment income per share increased 10% sequentially to $0.22, marking the second consecutive quarter of such growth. While growing net investment income, we have continued to increase our investment portfolio which totaled $77.6 million at quarter end, the largest level since our IPO in 2010”
Financial Highlights for the Second Quarter of Fiscal 2013
- Net asset value was $8.03 per share at December 31, 2012.
- Total investment income was $3.1 million, including income from fees, dividends and other sources of $0.5 million.
- Net investment income was $1.5 million, or $0.22 per share.
- Monthly distributions of $0.077 per share were paid on November 15, 2012, December 14, 2012 and January 15, 2013, totaling $0.23 per share for the quarter.
- Net realized losses were $(3.2) million, or $(0.49) per share, and net unrealized gains were $1.3 million, or $0.20 per share, and combined with net investment income, resulted in a net decrease in net assets from operations of $(0.4) million, or $(0.06) per share.
- Total portfolio investments at December 31, 2012 were $77.6 million (excluding U.S. treasury bills of $22.0 million), compared to $75.5 million (excluding U.S. treasury bills of $25.0 million) at September 30, 2012.
- Weighted average portfolio interest rate was 12.55% at December 31, 2012.
- New originations were $3.9 million, consisting of a new debt facility to SOLEX Fine Foods, LLC. Additional funding to existing borrowers totaled $1.6 million (excluding regular borrowing under revolvers).
- At December 31, 2012, 88% of portfolio company investments were first lien senior secured loans.
- At December 31, 2012, debt outstanding was $20.0 million consisting of $16.6 million drawn under the Company’s $35.0 million senior credit facility and $3.4 million of senior unsecured notes.
- On November 27, 2012 the Company raised $10.1 million of net equity capital through a public offering of 1.35 million common shares priced at $7.90 per share.
On February 5, 2013, the Board of Directors declared monthly distributions for the fourth quarter of fiscal 2013 as follows:
|Record Date||Payment Date||Per Share Amount|
|April 30, 2013||May 15, 2013||$0.077|
|May 31, 2013||June 14, 2013||$0.077|
|June 28, 2013||July 15, 2013||$0.077|
These distributions equate to a $0.924 annualized distribution rate, or a current annualized yield of 11.9%, based on the closing price of the Company’s common stock of $7.76 per share on February 8, 2013.
“Net investment income per share increased 10% sequentially to $0.22, marking the second consecutive quarter of such growth. While growing net investment income, we have continued to increase our investment portfolio which totaled $77.6 million at quarter end, the largest level since our IPO in 2010,” said John Stuart, Chairman and Chief Executive Officer of Full Circle Capital Corp. “Our primary strategy of investing in first lien senior secured loans to smaller and lower middle-market companies with a desirable yield continues to produce highly competitive portfolio metrics. We now have debt investments in 18 companies with first lien senior secured loans comprising 88% of the total investment portfolio. The weighted average yield on the portfolio was 12.55% for the quarter, within our current target range. Our positions are further supported by a loan-to-value ratio of 59%, with floating rate flexibility in 84% of our investments.”
“With the capital raised during the quarter, we have additional resources to continue to expand our investment portfolio. Originations and additional funding to existing borrowers totaled $5.5 million for the second quarter and subsequent to the end of the quarter we added, net of payoffs, a $2.0 million investment to our portfolio. Our flexible uni-tranche lending solutions continue to attract quality credit opportunities allowing us to remain highly selective in the current market environment.”
Second Quarter Fiscal 2013 Results
The Company’s net asset value at December 31, 2012 was $8.03 per share. During the quarter, the Company generated $2.6 million of interest income, of which 100% was paid in cash. Income from fees, dividends and other sources totaled $0.5 million. The Company recorded net investment income of $1.5 million, or $0.22 per share. Net realized losses were $(3.2) million, or $(0.49) per share, and unrealized gains were $1.3 million, or $0.20 per share, both primarily related to the disposition of one investment. Net decrease in net assets from operations was $(0.4) million, or $(0.06) per share. Per share amounts for the quarter ended December 31, 2012 are based on approximately 6.7 million weighted average shares outstanding.
During the quarter, the Company originated a $3.9 million new loan facility, which was fully funded at closing. Additional funding to existing borrowers, excluding regular borrowing under revolvers, was $1.6 million during the quarter.
At December 31, 2012, the Company’s portfolio included investments in 21 companies, of which 18 were debt investments. The average portfolio company debt investment at December 31, 2012 was $4.0 million. The weighted average interest rate on investments was 12.55%. At fair value, 88% of portfolio investments were first lien loans, 4% were second lien loans and 8% were equity investments. Approximately 84% of the debt investment portfolio, at fair value, bore interest at floating rates. The loan-to-value ratio on the Company’s loans was 59% at December 31, 2012 compared to 62% at September 30, 2012.
On January 31, 2013 the Company received a full payoff of its senior secured term loan to The Selling Source, LLC, receiving $2.4 million in principal, interest and fees. On February 1, 2013, the Company invested $4.0 million in a new senior secured term loan to The Selling Source, LLC, bearing interest at 12.50% and maturing February 1, 2017.
Conference Call Details
Management will host a conference call to discuss these results on Tuesday, February 12, 2013 at 10:00 a.m. ET. To participate in the conference call, please call 866-305-6438 (domestic call-in) or 706-679-7161 (international call-in) and reference code # 96405426.
A live webcast of the conference call and the accompanying slide presentation will be available at http://ir.fccapital.com/CorporateProfile.aspx?iid=4151676. All participants should call or access the website approximately 10 minutes before the conference begins.
A telephone replay of the conference call will be available from 1:00 p.m. ET on February 12, 2013 until 11:59 p.m. ET on February 14, 2013 by calling 855-859-2056 (domestic) or 404-537-3406 (international) and entering confirmation # 96405426. An archived replay of the conference call and slide presentation will also be available in the investor relations section of the company’s website.
About Full Circle Capital Corporation
Full Circle Capital Corporation (www.fccapital.com) is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Full Circle lends to and invests in senior secured loans and, to a lesser extent, mezzanine loans and equity securities issued by smaller and lower middle-market companies that operate in a diverse range of industries. Full Circle’s investment objective is to generate both current income and capital appreciation through debt and equity investments. For additional information visit the company’s web site www.fccapital.com.
This press release contains forward-looking statements which relate to future events or Full Circle's future performance or financial condition. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Full Circle's filings with the Securities and Exchange Commission. Full Circle undertakes no duty to update any forward-looking statements made herein.
|FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES|
|December 31, 2012||June 30, 2012|
Control Investments at Fair Value (Cost of $18,137,713 and
Affiliate Investments at Fair Value (Cost of $11,296,481 and
Non-Control/Non-Affiliate Investments at Fair Value (Cost of
$72,151,382 and $85,181,617, respectively)
Total Investments at Fair Value (Cost of $101,585,576 and
|Deposit with Broker||2,250,000||2,350,000|
|Due from Portfolio Investment||364,535||11,140|
|Receivable for Investments Sold||1,126,196||-|
|Deferred Offering Expenses||-||67,685|
|Deferred Credit Facility Fees||100,000||50,000|
|Due to Affiliate||710,556||580,353|
|Due to Broker||22,000,733||22,500,041|
|Accrued Offering Expenses||-||19,697|
|Line of Credit||16,622,598||18,544,660|
|Components of Net Assets|
|Common Stock, par value $0.01 per share|
|(100,000,000 authorized; 7,569,382 and 6,219,382 issued|
|and outstanding, respectively)||$||75,694||$||62,194|
|Paid-in Capital in Excess of Par||67,420,152||57,455,232|
|Distributions in Excess of Net Investment Income||(500,122||)||(122,763||)|
|Accumulated Net Realized Losses||(4,222,474||)||(175,366||)|
|Accumulated Net Unrealized Losses||(1,966,610||)||(3,776,512||)|
|Net Asset Value Per Share||$||8.03||$||8.59|
FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|Three Months Ended||Six Months Ended|
|December 31,||December 31,|
|Interest Income from Non-Control/Non-Affiliate Investments||$||1,974,071||$||2,104,779||$||3,994,055||$||3,930,042|
|Interest Income from Affiliate Investments||280,567||-||560,508||234,864|
|Interest Income from Control Investments||319,411||227,071||598,584||254,644|
|Dividend Income from Control Investments||72,493||1,823||106,590||1,823|
|Other Income from Non-Control/Non-Affiliate Investments||384,553||64,992||528,580||376,449|
|Other Income from Affiliate Investments||56,004||-||59,585||54,086|
|Other Income from Control Investments||12,500||-||25,000||105,000|
|Total Investment Income||3,099,599||2,398,665||5,872,902||4,956,908|
|Total Advisory Fees||710,556||575,364||1,352,524||1,232,926|
|Allocation of Overhead Expenses||84,552||89,207||141,308||174,892|
Total Costs Incurred Under Administration Agreement
|Professional Services Expense||109,902||93,806||275,063||314,679|
|Total Gross Operating Expenses||1,633,949||1,300,025||3,169,007||2,627,718|
|Management Fee Waiver and Expense Reimbursement||-||-||-||(313,792||)|
|Total Net Operating Expenses||1,633,949||1,300,025||3,169,007||2,313,926|
|Net Investment Income||1,465,650||1,098,640||2,703,895||2,642,982|
|Net Change in Unrealized Gain (Loss) on Investments||1,292,589||(846,865||)||1,809,902||(917,680||)|
|Net Realized Gain (Loss) on Investments||(3,186,441||)||766||(4,047,108||)||126,572|
Net Increase (Decrease) in Net Assets Resulting
|Earnings (Loss) per Common Share Basic and Diluted||$||(0.06||)||$||0.04||$||0.07||$||0.30|
|Net Investment Income per Common Share Basic and Diluted||$||0.22||$||0.18||$||0.42||$||0.43|
Weighted Average Shares of Common Share
Outstanding Basic and Diluted
|FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES|
|FINANCIAL HIGHLIGHTS (Unaudited)|
|Three months ended||
Three months ended
|Six months ended||Six months ended|
|December 31, 2012||December 31, 2011||December 31, 2012||December 31, 2011|
|Per Share Data 1 :|
|Net asset value at beginning of period||$||8.51||$||9.11||$||8.59||$||9.08|
|Dilution from offering 2||(0.17||)||-||(0.17||)||-|
|Net investment income||0.22||0.18||0.42||0.43|
|Change in unrealized gain (loss)||0.20||(0.14||)||0.28||(0.15||)|
|Realized gain (loss)||(0.49||)||-||(0.62||)||0.02|
|Net asset value at end of period||$||8.03||$||8.92||$||8.03||$||8.92|
|1||Financial highlights are based on weighted average shares outstanding.|
|2||Dilution from offering is based on the change in net asset value from the secondary offering on November 27, 2012.|