NEW YORK, NY (August 9, 2017) - Medley Capital
Corporation (NYSE: MCC) (the "Company") today announced financial
results for its fiscal third quarter ended June 30, 2017.
Third Quarter Highlights
-
Net investment income of $0.18 per share
-
Net income of $0.06 per share
-
Declared a dividend of $0.16 per share
-
Net asset value (NAV) of $8.84 per share
Portfolio Investments
The total value of our investments was $880.6
million at June 30, 2017. During the quarter ended June 30, 2017,
the Company had net repayments of $43.6 million. As of June 30,
2017, the Company had investments in securities of 60 portfolio
companies with approximately 63.6% consisting of senior secured
first lien investments, 21.1% consisting of senior secured second
lien investments, and 15.3% in equities / warrants. As of June 30,
2017, the weighted average yield based upon the cost basis of our
portfolio investments, excluding cash and cash equivalents, was
11.0%.
Results of Operations
For the three and nine months ended June 30, 2017,
the Company reported net investment income of $0.18 and $0.51 per
share, respectively, calculated based upon the weighted average
shares outstanding. As of June 30, 2017, the Company's NAV was
$8.84 per share.
Investment Income
For the three months ended June 30, 2017, gross
investment income was $23.7 million and consisted of $20.7 million
of portfolio interest income, $1.1 million of dividend income, and
$1.9 million of fee income.
For the nine months ended June 30, 2017, gross
investment income was $74.1 million and consisted of $66.6 million
of portfolio interest income, $2.7 million of dividend income, and
$4.8 million of fee income.
Expenses
For the three months ended June 30, 2017, total
expenses, net of management fee waiver, were $14.1 million and
consisted of the following: base management fees, net of waiver, of
$4.4 million, interest and financing expenses of $7.3 million,
professional fees of $0.6 million, administrator expenses of $1.1
million, directors fees of $0.2 million, and other general and
administrative related expenses of $0.5 million.
For the nine months ended June 30, 2017, total
expenses, net of management and incentive fee waiver, were $46.1
million and consisted of the following: base management fees, net
of waiver, of $13.4 million, incentive fees, net of waiver, of $0.9
million, interest and financing expenses of $24.2 million,
professional fees of $1.9 million, administrator expenses of $3.0
million, directors fees of $0.5 million, and other general and
administrative related expenses of $2.2 million.
Net Investment Income
For the three and nine months ended June 30, 2017,
the Company reported net investment income of $9.6 million and
$27.7 million, respectively, or $0.18 and $0.51, respectively, on a
weighted average per share basis.
Net Realized and Unrealized
Gains/Losses
For the three and nine months ended June 30, 2017,
the Company reported net realized losses on investments of $55.1
million and $61.4 million, respectively.
For the three and nine months ended June 30, 2017,
the Company reported net unrealized appreciation on investments of
$47.7 million and $30.4 million, respectively.
Liquidity and Capital
Resources
As of June 30, 2017, the Company had a cash
balance of $118.2 million and $526.9 million of total debt
outstanding, which was comprised of $26.0 million of debt
outstanding under its senior secured revolving credit facility,
$174.0 million of debt outstanding under its senior secured term
loan credit facility, $150.0 million outstanding in SBA-guaranteed
debentures, $74.0 million outstanding in aggregate principal amount
of 6.5% senior notes due 2021 and $102.9 million outstanding in
aggregate principal amount of 6.125% senior notes due 2023.
Dividend Declaration
On August 3, 2017, the Company's Board of
Directors declared a dividend for the quarter ended June 30, 2017
of $0.16 per share, payable on September 22, 2017, to stockholders
of record as of August 23, 2017. The specific tax characteristics
of the dividend will be reported to stockholders on Form 1099 after
the end of the calendar year.
Webcast/Conference Call
The Company will host an earnings conference call
and audio webcast at 10:00 a.m. (Eastern Time) on Wednesday, August
9, 2017.
All interested parties may participate in the
conference call by dialing (888) 637-5728 approximately 5-10
minutes prior to the call, international callers should dial (484)
747-6636. Participants should reference Medley Capital Corporation
and the Conference ID: 51057928. 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.
Financial Statements
Medley Capital
Corporation
Consolidated
Statements of Assets and Liabilities
(in thousands, except share and per share
data)
| |
|
|
June 30, 2017 |
|
September 30, 2016 |
| |
|
|
(unaudited) |
|
|
| ASSETS |
|
|
|
|
|
| Investments at fair value |
|
|
|
|
|
Non-controlled/non-affiliated
investments
(amortized cost of $640,598 and $813,814,
respectively) |
|
|
|
$ 608,166 |
|
$ 767,302 |
Controlled investments (amortized cost
of
$273,521 and $189,077, respectively) |
|
|
239,084 |
|
136,882 |
Affiliated investments (amortized cost
of
$34,780 and $10,000, respectively) |
|
|
|
33,317 |
|
10,000 |
| Total investments at fair value |
|
|
|
880,567 |
|
914,184 |
| Cash and cash equivalents |
|
|
118,186 |
|
104,485 |
| Interest receivable |
|
|
6,629 |
|
8,982 |
| Receivable for dispositions
and investments sold |
|
|
4,205 |
|
689 |
| Other assets |
|
|
1,104 |
|
893 |
| Fees Receivable |
|
|
643 |
|
1,404 |
| Deferred offering costs |
|
|
307 |
|
243 |
| Total assets |
|
|
|
$ 1,011,641 |
|
$ 1,030,880 |
| |
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
Revolving credit facility
payable (net of debt issuance costs
of $1,583 and $3,590, respectively) |
|
|
$ 24,417 |
|
$ 10,410 |
Term loan payable (net of debt
issuance costs of $1,667
and $2,197, respectively) |
|
|
172,333 |
|
171,803 |
Notes payable (net of debt
issuance costs of $4,367
and $4,630, respectively) |
|
|
172,508 |
|
172,883 |
SBA debentures payable (net of
debt issuance costs of
$3,017 and $3,525, respectively) |
|
|
146,983 |
|
146,475 |
| Management and incentive fees
payable |
|
|
4,439 |
|
4,559 |
| Interest and fees payable |
|
|
3,195 |
|
1,714 |
Payable for investments
originated, purchased
and participated |
|
|
1,995 |
|
- |
| Accounts payable and accrued
expenses |
|
|
1,855 |
|
2,663 |
| Deferred tax liability |
|
|
1,221 |
|
2,004 |
| Administrator expenses
payable |
|
|
1,075 |
|
990 |
| Deferred revenue |
|
|
219 |
|
370 |
| Due to affiliate |
|
|
103 |
|
90 |
| Total liabilities |
|
|
|
$ 530,343 |
|
$ 513,961 |
| |
|
|
|
|
|
|
| NET ASSETS |
|
|
|
|
|
Common stock, par value $0.001
per share,
100,000,000 common shares authorized, |
|
|
|
|
|
54,474,211 and 54,474,211 common shares
issued
and outstanding, respectively |
|
|
|
$ 54 |
|
$ 54 |
| Capital in excess of par
value |
|
|
705,313 |
|
705,326 |
| Accumulated undistributed net
investment income |
|
|
5,873 |
|
10,812 |
| Accumulated net realized
gain/(loss) from investments |
|
|
(160,827) |
|
(99,000) |
Net unrealized
appreciation/(depreciation) on
investments, net of deferred taxes |
|
|
(69,115) |
|
(100,273) |
| Total net assets |
|
|
481,298 |
|
516,919 |
| |
|
|
|
|
|
|
| Total liabilities and net
assets |
|
|
$ 1,011,641 |
|
$ 1,030,880 |
| |
|
|
|
|
|
|
| NET ASSET VALUE PER SHARE |
|
|
$ 8.84 |
|
$ 9.49 |
Medley Capital
Corporation
Consolidated
Statements of Operations
(in thousands, except share and per share
data)
| |
|
|
|
For the three
months |
|
For the nine months |
| |
|
|
|
ended June 30 |
|
ended June 30 |
| |
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
| |
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
| INVESTMENT INCOME: |
|
|
|
|
|
|
|
|
| Interest from investments |
|
|
|
|
|
|
|
|
| Non-controlled/non-affiliated
investments: |
|
|
|
|
|
|
|
|
|
|
| Cash |
|
|
$ 16,029 |
|
$ 22,708 |
|
$ 51,064 |
|
$ 76,109 |
|
Payment-in-kind |
|
|
2,506 |
|
1,723 |
|
8,192 |
|
5,297 |
| Affiliated investments: |
|
|
|
|
|
|
|
|
|
|
| Cash |
|
|
462 |
|
167 |
|
1,493 |
|
500 |
|
Payment-in-kind |
|
|
102 |
|
- |
|
304 |
|
- |
| Controlled investments: |
|
|
|
|
|
|
|
|
|
|
| Cash |
|
|
621 |
|
822 |
|
1,317 |
|
1,700 |
|
Payment-in-kind |
|
|
1,009 |
|
2,020 |
|
4,052 |
|
4,147 |
|
Total interest income |
|
|
20,729 |
|
27,440 |
|
66,422 |
|
87,753 |
Dividend income, net of
provisional taxes
($0 and $512, respectively) |
|
1,050 |
|
333 |
|
2,745 |
|
333 |
| Interest from cash and cash
equivalents |
|
46 |
|
4 |
|
109 |
|
16 |
| Fee income |
|
1,870 |
|
635 |
|
4,832 |
|
5,452 |
| Total investment income |
|
|
|
23,695 |
|
28,412 |
|
74,108 |
|
93,554 |
| |
|
|
|
|
|
|
|
|
|
|
| EXPENSES: |
|
|
|
|
|
|
|
|
| Base management fees |
|
4,450 |
|
4,657 |
|
13,461 |
|
14,880 |
| Incentive fees |
|
- |
|
2,794 |
|
896 |
|
9,859 |
| Interest and financing
expenses |
|
7,321 |
|
7,680 |
|
24,238 |
|
22,571 |
| Administrator expenses |
|
1,075 |
|
966 |
|
2,988 |
|
2,925 |
| Professional fees |
|
616 |
|
638 |
|
1,930 |
|
1,827 |
| General and
administrative |
|
424 |
|
325 |
|
1,904 |
|
1,488 |
| Directors fees |
|
152 |
|
133 |
|
472 |
|
397 |
| Insurance |
|
99 |
|
124 |
|
298 |
|
395 |
Expenses before
management and
incentive fee waivers |
|
14,137 |
|
17,317 |
|
46,187 |
|
54,342 |
| Management fee waiver |
|
(11) |
|
(40) |
|
(48) |
|
(112) |
| Incentive fee waiver |
|
- |
|
181 |
|
(44) |
|
(1,871) |
Total expenses net of management and
incentive fee waivers |
|
|
|
14,126 |
|
17,458 |
|
46,095 |
|
52,359 |
Net investment
income before
excise taxes |
|
9,569 |
|
10,954 |
|
28,013 |
|
41,195 |
| Excise tax
expense |
|
- |
|
- |
|
(267) |
|
- |
| NET INVESTMENT INCOME |
|
9,569 |
|
10,954 |
|
27,746 |
|
41,195 |
| |
|
|
|
|
|
|
|
|
|
|
REALIZED AND
UNREALIZED
GAIN/(LOSS) ON INVESTMENTS: |
|
|
|
|
|
|
|
|
| Net realized gain/(loss) from
investments |
|
(55,083) |
|
(29,177) |
|
(61,371) |
|
(23,699) |
Net unrealized
appreciation/(depreciation)
on investments |
|
47,730 |
|
32,285 |
|
30,374 |
|
(41,831) |
Change in provision for
deferred taxes on
unrealized (appreciation)/depreciation on investments |
|
783 |
|
(40) |
|
783 |
|
(399) |
| Loss on extinguishment of
debt |
|
- |
|
- |
|
(456) |
|
- |
| Net gain/(loss) on investments |
|
|
|
(6,570) |
|
3,068 |
|
(30,670) |
|
(65,929) |
| |
|
|
|
|
|
|
|
|
|
|
NET INCREASE/(DECREASE) IN
NET
ASSETS RESULTING FROM OPERATIONS |
|
$ 2,999 |
|
$ 14,022 |
|
$ (2,924) |
|
$ (24,734) |
| |
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE - BASIC
AND
DILUTED EARNINGS |
|
$ 0.06 |
|
$ 0.26 |
|
$ (0.05) |
|
$ (0.44) |
| PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE - BASIC
AND
DILUTED NET INVESTMENT INCOME |
|
|
|
|
|
|
|
|
| PER COMMON SHARE |
|
|
|
$ 0.18 |
|
$ 0.20 |
|
$ 0.51 |
|
$ 0.74 |
WEIGHTED AVERAGE
COMMON
STOCK OUTSTANDING |
|
|
|
|
|
|
|
|
| - BASIC AND DILUTED |
|
|
|
54,474,211 |
|
54,763,411 |
|
54,474,211 |
|
55,618,719 |
| |
|
|
|
|
|
|
|
|
|
|
DIVIDENDS DECLARED
PER
COMMON SHARE |
|
$ 0.16 |
|
$ 0.30 |
|
$ 0.60 |
|
$ 0.90 |
ABOUT MEDLEY CAPITAL
CORPORATION
Medley Capital Corporation is a closed-end,
externally managed business development company ("BDC") that trades
on the New York Stock Exchange (NYSE: MCC). Medley Capital
Corporation's investment objective is to generate current income
and capital appreciation by lending to privately-held middle market
companies, primarily through directly originated transactions, to
help these companies expand their businesses, refinance and make
acquisitions. Our portfolio generally consists of senior secured
first lien loans and senior secured second lien loans. In many of
our investments, we receive warrants or other equity participation
features, which we believe will increase the total investment
returns. Medley Capital Corporation is externally managed by MCC
Advisors LLC, which is an investment adviser registered under the
Investment Advisers Act of 1940, as amended. For additional
information, please visit Medley Capital Corporation at
www.medleycapitalcorp.com.
ABOUT MCC ADVISORS
LLC
MCC Advisors LLC is a subsidiary of Medley
Management Inc. (NYSE: MDLY). Medley is an alternative asset
management firm offering yield solutions to institutional and
retail investors. Medley's national direct origination franchise,
with over 85 people, is a premier provider of capital to the middle
market in the U.S. As of March 31, 2017, Medley had $5.5
billion of assets under management in several private investment
vehicles as well as two business development companies, Medley
Capital Corporation (NYSE:MCC) and Sierra Income Corporation and a
credit interval fund, Sierra Total Return Fund (NASDAQ:SRNTX). Over
the past 15 years, Medley has provided capital to over 350
companies across 35 industries in North America. For additional
information, please visit Medley Management Inc. at
www.mdly.com.
Medley LLC, the operating company of Medley
Management Inc., has outstanding bonds which trade on the NYSE
under the symbol (NYSE: MDLX) and (NYSE:MDLQ). Medley Capital
Corporation (NYSE: MCC) has outstanding bonds which trade on the
NYSE under the symbols (NYSE: MCV) and (NYSE: MCX).
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. Except as required by law, 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
Investor Relations Contact:
Sam Anderson
Head of Capital Markets & Risk Management
Medley Management Inc.
212-759-0777
Media Contact:
Erin Clark
Teneo Strategy
646-214-8355
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Medley Capital Corporation via Globenewswire
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