NEW YORK, May 12, 2015 /PRNewswire/ -- Alcentra Capital
Corporation (NASDAQ: ABDC) ("Alcentra" or the "Company"),
announced today its financial results for the first quarter of
2015. The Company reported net investment income of $4.9 million or $0.37 per share, for the first quarter 2015.
Mr. Paul J. Echausse, the
Company's President and Chief Executive Officer, said, "Since our
IPO last May 8, 2014, we have had
more than $100 million of net
originations which represents an increase of 13 portfolio
companies. The first quarter saw a new investment followed by an
add on investment and one repayment. In our second quarter we
have closed on two new investments."
"The weighted average yield on our debt portfolio was 11.9% and
the weighted average leverage is 3.3x at the end of the first
quarter. With the addition of our two recent investments this
weighted average yield is at 12.0%. We have a good first year
as a public company, with strong investment pacing on a
year-over-year basis," observed Mr. Echausse. "We said that we
would be improving on the yield characteristics of the portfolio
and have done so, without straying from a disciplined approach to
moderate portfolio company leverage. We believe the quality of our
portfolio compares favorably to the rest of the BDC industry on a
risk-adjusted basis."
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Highlights
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($ in mm, except
per share calculation)
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Portfolio results, as
of March 31, 2015
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Total Investment
portfolio, at fair value:
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$
267.0
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million
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Total Net Assets
(Equity):
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$
201.3
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million
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Net Asset Value per
share (Book Value):
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$
14.90
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Weighted Average
yield on debt investments:
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11.9%
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Weighted Average
leverage:
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3.31x
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Investment Portfolio
Activity for the Quarter Ended March 31, 2015:
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- Cost of
Investments made during the period:
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$
17.3
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million
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- Proceeds
related to the sale of equity investments during the
period
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$
8.6
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million
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Non-Accrual assets as
a Percentage of Total Portfolio Cost/Fair Value:
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-
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Financial Results for
the Quarter Ended March 31, 2015:
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- Total
Investment Income:
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$
8.2
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million
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- Net
Investment Income:
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$
4.9
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million
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- Net
Investment Income per share:
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$
0.37
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- Net
increase in net assets resulting from operations:
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$
4.9
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million
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- Net
increase in net assets resulting from operations per
share:
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$
0.37
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Liquidity and Capital Resources
As of March 31, 2015, we had
$3.9 million of cash. On
April 15, 2015, Alcentra completed a
$40 million note offering program
(the "Notes") which commenced on January 29,
2015. The unsecured notes mature on January 15, 2022, February
15, 2020, March 15, 2020 and
April 15, 2020. The Notes bear
interest at a rate of 6.5% and 6.375% semi-annually and have
maturities ranging from five to seven years. The net proceeds of
$39.2 million were used to reduce the
outstanding borrowings on the credit facility. The Company
had borrowings of $43.3 million on
their $115 million revolver after the
Note Offering.
Dividend Information
On May 11, 2015, the Company's
Board of Directors declared the 2015 2nd quarter calendar dividend
of $0.34 per share, payable on
July 6, 2015 to shareholders of
record on June 30, 2015. The Company
had previously paid a dividend of $0.34 per share on April
6, 2015 to shareholders of record on March 31, 2014.
Recent Portfolio Activity
New investment transactions which occurred during the second
quarter of 2015 are summarized as follows:
In April 2015, Alcentra made a
$10.0 million subordinated debt
investment in Radiant Logistics, Inc. ("Radiant). Radiant is
a non-asset based transportation and logistics company providing
domestic and international freight forwarding services. Also, in
April 2015, Alcentra made a
$9,500,000 investment in Alarm
Capital Alliance, LLC ("ACA). ACA is a security alarm
monitoring company whose services also include servicing,
installation and patrol/guard services.
Conference Call to Discuss First Quarter 2015 Results
Alcentra has scheduled a conference call to discuss first
quarter 2015 results for Tuesday, May 12,
2015 at 3:30pm (Eastern
Time).
To listen to the call, please dial 844-832-0218 approximately 10
minutes prior to the start of the call. International callers
should dial (484) 756-4314. Please reference conference ID
43626132#. A live webcast of the conference call will be available
at http://investors.alcentracapital.com/events-presentations. Web
participants are encouraged to access the website 15 minutes prior
to the start of the call to download and install any necessary
audio software. An archived webcast replay will be available on the
Company's website until May 12,
2016.
1 Earnings and earnings per share before a
provision for taxes on unrealized appreciation from portfolio
investments are non-GAAP financial measures that are calculated by
subtracting the provision of taxes on unrealized gain on
investments from Net Increase in Net Assets from Operations.
Reconciliations of these numbers to the most directly comparable
GAAP financial measure are set forth in Schedule 1 hereto.
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Alcentra Capital
Corporation and Subsidiary
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Consolidated
Statements of Assets and
Liabilities
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Assets
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As of
March 31, 2015 (unaudited)
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As of
December 31, 2014
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Portfolio
investments, at fair value
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Non-controlled, non-affiliated investments, at fair value
(cost of $173,154,341 and $165,921,535,
respectively)
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$
173,433,992
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$
167,325,100
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Non-controlled, affiliated investments, at fair value
(cost $62,350,239 and $61,564,299,
respectively)
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63,435,406
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61,253,192
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Controlled, affiliated investments, at fair value
(cost $26,795,722 and $26,596,938,
respectively)
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30,158,773
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30,055,562
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Total of
portfolio investments, at fair value
(cost $262,300,302
and $254,082,772, respectively)
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267,028,171
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258,633,854
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Cash
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3,962,318
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10,022,617
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Dividends and
interest
receivable
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762,380
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1,417,500
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Receivable for
investments sold
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-
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4,753
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Deferred financing
costs
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1,803,033
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1,986,520
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Deferred note
offering costs
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227,642
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25,743
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Prepaid expenses and
other assets
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73,205
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128,388
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Total
Assets
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$
273,856,749
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$
272,219,375
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Liabilities
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Credit facility
payable
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$
56,954,490
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$
62,499,154
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Notes
payable
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5,936,000
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-
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Payable for
investments purchased
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-
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8,717
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Other accrued
expenses and liabilities
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153,821
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539,417
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Directors' fees
payable
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38,000
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85,692
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Professional fees
payable
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362,551
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409,628
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Interest and credit
facility expense payable
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154,693
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216,476
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Management fee
payable
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1,148,005
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615,668
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Incentive fee
payable
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806,100
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-
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Distributions
payable
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4,595,700
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4,595,700
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Unearned structuring
fee revenue
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494,381
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517,339
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Income tax
liability
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1,690
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45,272
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Deferred tax
liability
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1,856,987
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1,697,004
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Total
Liabilities
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72,502,418
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71,230,067
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Commitments and
Contingencies (Note 12)
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Net
Assets
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Common stock, par
value $0.001 per share (100,000,000 shares authorized, 13,516,766
and 13,516,766 shares issued and outstanding,
respectively)
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13,517
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13,517
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Additional paid-in
capital
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197,806,987
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197,838,155
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Accumulated net
realized gain (loss)
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71,966
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71,712
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Undistributed
investment income
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593,320
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211,846
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Net unrealized
appreciation (depreciation) on investments, net of provision for
taxes of $1,859,328 and $1,697,004 as of March 31, 2015 and
December 31, 2014, respectively
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2,868,541
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2,854,078
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Total Net Assets
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201,354,331
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200,989,308
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Total
Liabilities and Net Assets
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$
273,856,749
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$
272,219,375
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Net Asset Value Per
Share
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$
14.90
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$
14.87
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Alcentra Capital
Corporation and Subsidiary
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Consolidated
Statements of Operations
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Alcentra Capital
Corporation and Subsidiary
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BNY
Mellon-Alcentra Mezzanine III, L.P.
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Investment
Income:
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For the three
months ended
March 31, 2015
(unaudited)
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For the three
months ended
March 31, 2014
(unaudited)
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From non-controlled,
non-affiliated investments:
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Interest
income from portfolio investments
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$
4,157,559
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$
1,392,791
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Paid
in-kind income from portfolio investments
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735,724
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373,338
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Other
income from portfolio investments
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659,896
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105,089
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Dividend
income from portfolio investments
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-
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251,752
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From non-controlled,
affiliated investments:
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Interest
income from portfolio investments
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1,219,056
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725,012
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Paid
in-kind income from portfolio investments
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611,499
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195,383
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Other
income from portfolio investments
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28,358
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21,176
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From controlled,
affiliated investments:
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Interest
income from portfolio investments
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575,980
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514,320
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Paid
in-kind income from portfolio investments
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198,781
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406,120
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Other
income from portfolio investments
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37,800
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10,482
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Total
investment
income
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8,224,653
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3,995,463
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Expenses:
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Management
fees
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1,148,005
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699,473
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Incentive
fees
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1,807,567
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-
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Professional
fees
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189,386
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79,327
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Valuation
services
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122,905
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-
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Interest and credit
facility expense
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605,888
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40,947
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Amortization of
deferred financing costs
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183,487
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-
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Directors'
fees
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38,000
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-
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Insurance
expense
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69,535
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-
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Other
expenses
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84,173
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-
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Total
expenses
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4,248,946
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819,747
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Waiver
of management and incentive fees by the
Investment Advisor
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(1,001,467)
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-
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Net
expenses
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3,247,479
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819,747
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Net
investment income
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4,977,174
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3,175,716
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Realized Gain
(Loss) and Net Change in Unrealized Appreciation (Depreciation)
From Portfolio Investments
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Net realized gain
(loss) on:
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Non-controlled, non-affiliated investments
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254
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94,409
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Non-controlled, affiliated investments
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-
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-
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Controlled, affiliated investments
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-
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-
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Net
realized gain (loss) from portfolio investments
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254
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94,409
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Net change in
unrealized appreciation (depreciation) on:
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Non-controlled, non-affiliated investments (really Media
Storm and Wholesome written down 1.2 from
12.31.14)
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(1,123,914)
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2,734,627
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Non-controlled, affiliated investments
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1,396,274
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182,597
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Controlled, affiliated investments
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(95,573)
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279,333
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Net
change in unrealized appreciation
(depreciation) from portfolio
investments
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176,787
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3,196,557
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Benefit/(Provision) for taxes on unrealized gain
on investments
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(162,324)
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-
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Net
realized gain (loss) and net change in
unrealized appreciation (depreciation) from
portfolio investments
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14,717
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3,290,966
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Net Increase in
Net Assets from Operations
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$
4,991,891
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$
6,466,682
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Basic and
diluted:
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Net
investment income per share
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$
0.37
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N.A.
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Earnings
per share
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$
0.37
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N.A.
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Weighted
Average Shares of Common Stock Outstanding
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13,516,766
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N.A.
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Dividends declared
per common share
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$
0.340
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N.A.
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About Alcentra Capital Corporation
Alcentra (www.alcentracapital.com) is an externally-managed,
closed-end, non-diversified management investment company that has
elected to be regulated as a business development company under the
Investment Company Act of 1940. Alcentra's investment objective is
to generate both current income and capital appreciation primarily
by making direct investments in lower middle-market companies in
the form of subordinated debt and, to a lesser extent, senior debt
and minority equity investments. Alcentra's investment activities
are managed by its investment adviser, Alcentra NY, LLC.
About Alcentra NY, LLC
Alcentra NY, LLC, our investment adviser, is part of BNY
Alcentra Group Holdings, Inc. ("Alcentra Group"), one of the
world's leading sub-investment grade credit asset managers focusing
on the U.S. and European markets. Alcentra Group has an investment
track record that spans across 75 separate investment vehicles and
accounts totaling approximately $23
billion (including accounts managed by Alcentra NY, LLC,
Alcentra Ltd, and assets managed by Alcentra Group personnel for
affiliates under dual officer arrangements).
FORWARD-LOOKING STATEMENTS
Statements included herein may contain "forward-looking
statements," which relate to future performance or financial
condition. 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.
Alcentra undertakes no duty to update any forward-looking statement
made herein except as required by law. All forward-looking
statements speak only as of the date of this press release.
Schedule 1
Reconciliation of Non-GAAP Financial Measures
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Three Months Ended
March 31, 2015
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Amount
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Per Share
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Net Increase in Net
Assets from Operations
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$4,991,891
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$0.37
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Less: (Provision) for
taxes on unrealized gain on investments
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($162,324)
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-
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Earnings before a
provision for taxes on unrealized appreciation from portfolio
investments
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$5,154,215
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$0.38
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/alcentra-capital-corporation-announces-first-quarter-2015-results-300081910.html
SOURCE Alcentra Capital Corporation