Portfolio Investments
The total value of our investments, including cash and cash equivalents, net of unsettled trades, was $216.4 million at September 30, 2011. During the quarter ended September 30, 2011, the Company originated $54.4 million of new investments and ended the quarter with investments in securities of eighteen portfolio companies with approximately 55.1% consisting of senior secured first lien investments, 36.7% consisting of senior secured second lien investments, 0.3% consisting of equities/warrants and 7.9% consisting of cash and cash equivalents. As of September 30, 2011, there were no non-accrual assets.
As of September 30, 2011, the weighted average yield based upon the original cost basis of our portfolio investments, excluding cash and cash equivalents, was 14.5%.
Results of Operations: Three Months Ended September 30, 2011
The Company reported earnings and net investment income of $0.23 per share and $0.26 per share, respectively, for the three months ended September 30, 2011, and net asset value (NAV) was $12.57 per share.
Investment Income
For the three months ended September 30, 2011, gross investment income was $6.9 million and consisted of $6.0 million of portfolio interest income, $0.9 million of other fee income and $6,033 of interest on cash and cash equivalents.
Expenses
For the three months ended September 30, 2011, total expenses net of management fee waiver were $2.5 million and consisted of the following: base management fees, net of management fee waiver of $0.8 million, professional fees of $0.3 million, administrator expenses of $0.3 million, interest and credit facility financing expenses of $0.2 million, directors fees of $0.1 million, incentive management fees of $0.6 million and other general and administrative related expenses of $0.2 million.
Net Investment Income
The Company reported net investment income of $4.4 million, or $0.26 on a weighted average per share basis, for the quarter ended September 30, 2011.
Net Realized and Unrealized Gains/Losses
For the three months ended September 30, 2011, the Company reported net unrealized depreciation of $0.5 million.
Results of Operations: Year Ended September 30, 2011
The Company reported earnings and net investment income of $0.55 per share and $0.56 per share, respectively, for the year ended September 30, 2011.
Investment Income
For the year ended September 30, 2011, gross investment income was $14.6 million and consisted of $12.7 million of portfolio interest income, $1.8 million of other fee income and $0.1 million of interest on cash and cash equivalents.
Expenses
For the year ended September 30, 2011, total expenses net of management fee waiver were $4.9 million and consisted of the following: base management fees, net of management fee waiver of $1.6 million, professional fees of $0.6 million, administrator expenses of $0.9 million, interest and credit facility financing expenses of $0.2 million, directors fees of $0.4 million, incentive management fees of $0.7 million and other general and administrative related expenses of $0.5 million.
Net Investment Income
The Company reported net investment income of $9.6 million, or $0.56 on a weighted average per share basis, for the year ended September 30, 2011.
Net Realized and Unrealized Gains/Losses
For the year ended September 30, 2011, the Company reported net realized gains of $0.1 million and net unrealized depreciation of $0.1 million.
Liquidity and Capital Resources
As of September 30, 2011, the Company had cash and cash equivalents, net of unsettled trades, of $17.2 million and did not have any debt outstanding, and the Company had $60 million of availability under its revolving credit facility with ING.
On November 29, 2011, the Company’s board of directors declared a quarterly dividend of $0.25 per share payable on December 30, 2011 to stockholders of record at the close of business on December 15, 2011.
All interested parties may participate in the conference call by dialing (866) 770-7120 approximately 5-10 minutes prior to the call: international callers should dial (617) 213-8065. Participants should reference Medley Capital Corporation and the participant passcode of 65635980 when prompted. Following the call you may access a replay of the event via audio webcast. This conference call will be broadcast live over the Internet and can be accessed by all interested parties through the Company's website, http://www.medleycapitalcorp.com. To listen to the live call, please go to the Company's website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the Company’s website.
ABOUT MEDLEY CAPITAL CORPORATION
The Company is a newly-organized, externally-managed, non-diversified closed-end management investment company that has filed an election to be treated as a business development company under the Investment Company Act of 1940, as amended. The Company's investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies. The Company is a direct lender targeting private debt transactions ranging in size from $10 to $50 million to borrowers principally located in North America. The Company's investment activities are managed by its investment adviser, MCC Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended.
FORWARD-LOOKING STATEMENTS
Statements included herein may contain "forward-looking statements". Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
SOURCE: Medley Capital Corporation
