RYE BROOK, N.Y., Feb. 9, 2011 /PRNewswire/ -- Full Circle Capital
Corporation (Nasdaq: FULL) (the "Company") today announced its
financial results for the second fiscal 2011 quarter ended
December 31, 2010.
For the quarter ended December 31,
2010, the Company recorded net investment income of
$1.5 million or $0.24 per share and a net increase in net assets
resulting from operations of $1.4
million, or $0.22 per share.
Net asset value was $9.32 per share
at December 31, 2010.
The Company also announced that on February 4, 2011, its board of directors declared
a distribution for its third fiscal quarter ending March 31, 2011 of $0.225 per share. This distribution will be
payable on April 15, 2011 to
shareholders of record on March 31,
2011. The annualized distribution of $0.90 per share equates to a current yield of
10.3%, based on the closing price of the Company's common stock of
$8.73 per share on February 8, 2011.
Full Circle Capital Corporation was formed on April 16, 2010 and commenced operations on
August 31, 2010 with the purchase of
a seasoned portfolio consisting of approximately $72.3 million of debt and equity investments from
two existing private funds, Full Circle Partners, LP and Full
Circle Fund, Ltd., formed in 2005 and 2007 respectively. As a
result, there is no comparable period to compare results for the
second fiscal quarter ended December 31,
2010. Full Circle Capital completed its initial public
offering on August 31, 2010.
Financial Highlights for Second Fiscal 2011 Quarter Ended
December 31, 2010
- Net asset value was $9.32 per
share at December 31, 2010
- Weighted average portfolio interest rate was 12.1% at
December 31, 2010
- Total investment income was $2.7
million
- Net investment income was $1.5
million, or $0.24 per
share
- Net increase in net assets resulting from operations was
$1.4 million, or $0.22 per share
- Total portfolio investments were $65.1
million (excluding U.S. treasury bills held of $27.0 million) compared to $71.3 million (excluding U.S. treasury bills held
of $25.0 million) at September 30, 2010
- At December 31, 2010, excluding
U.S. Treasury bills, 93% of investments were first lien
senior secured loans
- At December 31, 2010, long term
debt outstanding was $11.0 million,
including $7.6 million under the
Company's senior leverage facility and $3.4
million under its senior unsecured notes
- On January 14, 2011 Full Circle
paid its second quarter dividend of $0.225 per share
Per share amounts for the quarter ended December 31, 2010 are based on 6.2 million
weighted average shares outstanding for the quarter.
"We performed according to our plan during our first full
quarter of operations and as a public company," said John Stuart, chairman and chief executive
officer of Full Circle Capital Corp. "Our strategy of providing
first lien senior secured loans and stretch senior secured, or
uni-tranche, loan solutions to smaller and lower middle market
companies continued to deliver attractive risk-adjusted yields
during the most recently completed quarter."
"The Company received $7.6 million
in loan and investment realizations in the quarter ending
December 31, 2010. An
additional $15.2 million in loan
payoffs have been received by the Company subsequent to the end of
the quarter."
"We are pleased that all of our realizations were recorded at
par, and with the continued turnover of the portfolio, much of this
payoff activity generated early prepayment and other fee income,"
stated Stuart. "The combination of liquidity from these and future
payoffs plus investment funding capability under our existing
credit facility give us additional resources to participate in new
loan opportunities with potentially more attractive risk-adjusted
returns. Currently we are seeing more opportunities to invest in
fundamentally good businesses and an overall increase in business
optimism in our targeted smaller and lower middle market borrowers.
As a result of these developments, over the next few quarters we
believe we are well-positioned to continue to achieve our
investment objective of generating both current income and capital
appreciation."
Second Quarter Fiscal 2011 Results
Net asset value at December 31,
2010 was $9.32 per share. For
the second fiscal quarter ended December 31,
2010, the Company recorded net unrealized depreciation
resulting from valuations of $0.2
million most of which related to debt investments. The
Company also recorded $0.1 million of
realized gains.
The Company generated $2.3 million
of interest income during the period, of which approximately 97%
was paid in cash with the remaining 3% paid in payment-in-kind
("PIK") interest. Fee income from loan prepayments and other
sources totaled $0.2 million. The
Company recorded net investment income of $1.5 million or $0.24 per share and net increase in net assets
resulting from operations of $1.4
million, or $0.22 per
share.
During the quarter there were no new investment activities in
debt investments other than borrowers drawing on existing loan
facilities in a net amount of $3.7
million. Repayments and amortization of principal under
existing loan facilities and loan and investment realizations
totaled $10.1 million.
At December 31, 2010, the
Company's portfolio (excluding U.S. Treasury bill holdings)
included investments in 16 companies. The average portfolio company
investment at December 31, 2010 was
$4.1 million. The weighted
average interest rate on investments was 12.1%. At fair value,
92.8% of portfolio investments were first lien loans, 6.6% were
second lien loans and 0.6% were equity investments. Approximately
69% of the debt investment portfolio, at fair value, bore interest
at floating rates. The majority of the floating rate loans
carry a minimum interest rate floor which protects the Company's
return in a low rate environment. The estimated loan-to-value ratio
on the Company's loans was 45% at December
31, 2010 compared to 51% at September
30, 2010.
Recent Developments Since December 31,
2010
Since December 31, 2010 the
Company has funded an additional $0.3
million in two existing portfolio companies.
Since December 31, 2010 the
Company has received repayments of $15.2
million, including fees and interest due, representing its
entire investments in five portfolio companies.
Conference Call Details
Management will host a conference call to discuss these results
on Thursday, February 10, 2011 at
10:00 a.m. ET. To participate
in the conference call, please call 866-305-6438 (domestic call-in)
or 706-643-6383 (international call-in) and reference code
#41295573.
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 10 until 11:59
p.m. ET on February 17 by
calling 800-642-1687 (domestic) or 706-645-9291 (international) and
entering confirmation #41295573. 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 asset-based 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.
Forward-Looking Statements
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.
Company Contact:
|
Investor Relations
Contacts:
|
|
John E. Stuart, CEO
|
Stephanie Prince/Jody
Burfening
|
|
Full Circle Capital
Corporation
|
Lippert/Heilshorn &
Associates
|
|
914-220-6300
|
212-838-3777
|
|
Jstuart@fccapital.com
|
sprince@lhai.com
|
|
|
|
FULL CIRCLE
CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF ASSETS AND LIABILITIES
|
|
|
|
|
|
|
December 31,
|
|
|
June 30,
|
|
|
|
|
|
2010
(Unaudited)
|
|
|
2010 (Audited)
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Affiliated Investments at Fair
Value (Cost of $6,842,129
|
|
|
|
|
|
|
|
|
and $ -)
|
|
|
$
|
6,681,139
|
|
|
$
|
-
|
|
|
Investments at Fair Value (Cost
of $85,572,752 and $ -)
|
|
|
|
85,403,606
|
|
|
|
-
|
|
|
Cash
|
|
|
|
1,047,805
|
|
|
|
1,455
|
|
|
Deposit with Broker
|
|
|
|
4,000,000
|
|
|
|
-
|
|
|
Interest Receivable
|
|
|
|
822,975
|
|
|
|
-
|
|
|
Due from Affiliate
|
|
|
|
182,915
|
|
|
|
-
|
|
|
Prepaid Expenses
|
|
|
|
112,066
|
|
|
|
-
|
|
|
Other Current Assets
|
|
|
|
175,869
|
|
|
|
-
|
|
|
Deferred Offering
Expenses
|
|
|
|
-
|
|
|
|
425,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
|
|
|
98,426,375
|
|
|
|
426,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Due to Affiliate
|
|
|
|
635,000
|
|
|
|
|
|
|
Accounts Payable
|
|
|
|
2,637
|
|
|
|
-
|
|
|
Accrued Liabilities
|
|
|
|
96,885
|
|
|
|
-
|
|
|
Due to Broker
|
|
|
|
26,997,300
|
|
|
|
-
|
|
|
Dividends Payable
|
|
|
|
1,393,091
|
|
|
|
-
|
|
|
Interest Payable
|
|
|
|
65,953
|
|
|
|
-
|
|
|
Other Current
Liabilities
|
|
|
|
372,742
|
|
|
|
-
|
|
|
Accrued Offering
Expenses
|
|
|
|
150,430
|
|
|
|
425,463
|
|
|
Accrued Organizational
Expenses
|
|
|
|
26,037
|
|
|
|
12,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Current Liabilities
|
|
|
|
29,740,075
|
|
|
|
437,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long Term
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Line of Credit
|
|
|
|
7,568,501
|
|
|
|
-
|
|
|
Distribution Notes
|
|
|
|
3,404,583
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Long
Term Liabilities
|
|
|
|
10,973,084
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities
|
|
|
|
40,713,159
|
|
|
|
437,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
|
$
|
57,713,216
|
|
|
$
|
(11,045)
|
|
|
Components of Net
Assets
|
|
|
|
|
|
|
|
|
|
|
Common Stock, par value $0.01
per share
|
|
|
|
|
|
|
|
|
|
|
(100,000,000 authorized;
6,191,515 and 100 issued
|
|
|
|
|
|
|
|
|
|
|
and outstanding,
respectively)
|
|
|
$
|
61,915
|
|
|
$
|
1
|
|
|
Paid-in capital in excess of
par
|
|
|
|
57,963,082
|
|
|
|
1,499
|
|
|
Overdistributed Net Investment
Income
|
|
|
|
(74,283)
|
|
|
|
-
|
|
|
Accumulated Net Realized Gains
(Losses)
|
|
|
|
92,637
|
|
|
|
-
|
|
|
Accumulated Net Unrealized Gains
(Losses)
|
|
|
|
(330,135)
|
|
|
|
-
|
|
|
Deficit accumulated during
development stage
|
|
|
|
-
|
|
|
|
(12,545)
|
|
|
Net Assets
|
|
|
$
|
57,713,216
|
|
|
$
|
(11,045)
|
|
|
Net Asset Value Per
Share
|
|
|
$
|
9.32
|
|
|
$
|
(110.45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FULL CIRCLE
CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
|
|
December 31,
2010
|
|
December 31,
2010
|
|
Investment Income
|
|
|
|
|
|
|
Interest Income
|
|
$
|
2,091,480
|
$
|
2,802,910
|
|
Interest Income from
affiliate
|
|
|
240,260
|
|
331,034
|
|
Dividend Income from
affiliate
|
|
|
153,333
|
|
210,833
|
|
Other Income
|
|
|
193,124
|
|
201,002
|
|
|
|
|
|
|
|
|
Total Investment
Income
|
|
|
2,678,197
|
|
3,545,779
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Management Fee
|
|
|
304,429
|
|
411,413
|
|
Incentive Fee
|
|
|
374,776
|
|
487,462
|
|
Total Advisory
Fees
|
|
|
679,205
|
|
898,875
|
|
|
|
|
|
|
|
|
Allocation of Overhead
Expenses
|
|
|
90,270
|
|
120,360
|
|
Interest Expense
|
|
|
216,988
|
|
330,519
|
|
Directors' Fees
|
|
|
26,125
|
|
55,232
|
|
Administration Fees
|
|
|
78,114
|
|
104,152
|
|
Officers'
Compensation
|
|
|
33,424
|
|
43,111
|
|
Professional Services
Expense
|
|
|
82,331
|
|
120,125
|
|
Bank Fees
|
|
|
11,880
|
|
16,890
|
|
Other
|
|
|
76,817
|
|
117,316
|
|
Organizational
Expenses
|
|
|
34,996
|
|
178,979
|
|
|
|
|
|
|
|
|
Total Gross
Operating Expenses
|
|
|
1,330,150
|
|
1,985,559
|
|
|
|
|
|
|
|
|
Management Fee Waiver and
Expense Reimbursement
|
|
|
(147,078)
|
|
(241,688)
|
|
|
|
|
|
|
|
|
Total Net
Operating Expenses
|
|
|
1,183,072
|
|
1,743,871
|
|
|
|
|
|
|
|
|
Net Investment Income
(Loss)
|
|
|
1,495,125
|
|
1,801,908
|
|
Change in Unrealized Gain
(Loss)
|
|
|
(224,281)
|
|
(330,135)
|
|
Realized Gain (Loss)
|
|
|
86,574
|
|
92,637
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Net
Assets Resulting from Operations
|
|
$
|
1,357,418
|
$
|
1,564,410
|
|
|
|
|
|
|
|
|
Earnings (loss) per common
share
|
|
$
|
0.22
|
$
|
0.38
|
|
Weighted average shares of
common stock outstanding
|
|
|
6,191,515
|
|
4,138,926
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
For the
three
months
ended
December 31,
2010
|
For the
period from
August 31,
2010
(commencement of
operations)
to
December 31,
2010
|
|
|
|
|
|
|
|
|
|
Per Share
Data (1) :
|
|
|
|
|
|
|
Net asset value at beginning of
period
|
|
$
|
9.36
|
$
|
9.40
|
|
|
Offering costs
|
|
|
(0.04)
|
|
(0.04)
|
|
|
Net investment income
|
|
|
0.24
|
|
0.30
|
|
|
Change in unrealized gain
(loss)
|
|
|
(0.04)
|
|
(0.06)
|
|
|
Realized gain (loss)
|
|
|
0.02
|
|
0.02
|
|
|
Dividends declared
|
|
|
(0.22)
|
|
(0.30)
|
|
|
Net asset value at end of
period
|
|
$
|
9.32
|
$
|
9.32
|
|
|
|
|
(1) Financial highlights
are based on average weighted shares outstanding.
|
|
|
|
|
|
|
|
|
SOURCE Full Circle Capital Corporation