RYE BROOK, N.Y., May 10, 2011 /PRNewswire/ -- Full Circle Capital
Corporation (Nasdaq: FULL) (the "Company") today announced its
financial results for the third fiscal 2011 quarter ended
March 31, 2011.
For the quarter ended March 31,
2011, the Company recorded net investment income of
$1.4 million or $0.22 per share and a net increase in net assets
resulting from operations of $0.6
million, or $0.09 per share.
Net asset value was $9.18 per share
at March 31, 2011.
The Company also announced that on May 6,
2011, its board of directors declared a distribution of
$0.225 per share for the fourth
fiscal quarter ending June 30, 2011.
This distribution will be payable on July
15, 2011 to shareholders of record on June 30, 2011. The annualized distribution of
$0.90 per share equates to a current
yield of 11.1%, based on the closing price of the Company's common
stock of $8.11 per share on
May 9, 2011.
The board of directors also approved that commencing with the
first quarter of fiscal year 2012 ending September 30, 2011, dividend distributions will
be paid on a monthly basis, at the then declared dividend rate for
such quarter. Accordingly, the Company expects to pay its first
monthly distribution on or around August 15,
2011 to stockholders of record on or around July 29, 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
third fiscal quarter ended March 31,
2011. Full Circle Capital completed its initial public
offering on August 31, 2010.
Financial Highlights for the Third Quarter of Fiscal 2011 Ended
March 31, 2011
- Net asset value was $9.18 per
share at March 31, 2011
- Weighted average portfolio interest rate was 12.4% at
March 31, 2011
- Total investment income was $2.3
million
- Net investment income was $1.4
million, or $0.22 per
share
- Net increase in net assets resulting from operations was
$0.6 million, or $0.09 per share
- Total portfolio investments were $48.6
million (excluding U.S. Treasury bills of $32.0 million and money market funds of
$6.0 million) compared to
$65.1 million (excluding U.S.
Treasury bills of $27.0 million) at
December 31, 2010
- At March 31, 2011, excluding U.S.
Treasury bills and money market funds, 90% of investments
were first lien senior secured loans
- At March 31, 2011, long term debt
outstanding was $3.4 million under
the company's senior unsecured notes with no funds drawn under its
$35 million senior leverage facility
- On April 15, 2011 Full Circle
paid its third fiscal quarter dividend of $0.225 per share
Per share amounts for the quarter ended March 31, 2011 are based on approximately 6.2
million weighted average shares outstanding for the quarter.
"We believe our loan production will accelerate as we work to
reinvest the proceeds from the portfolio realizations that we've
received," said John Stuart,
chairman and chief executive officer of Full Circle Capital Corp.
"We are reviewing an increasing number of potential opportunities
in our targeted smaller and lower middle market space. Balance
sheet liquidity from recent payoffs and existing credit facility
availability provides us with significant resources for new
investments at potentially higher risk-adjusted returns."
Third Quarter Fiscal 2011 Results
The Company's net asset value at March
31, 2011 was $9.18 per share.
For the third fiscal quarter ended March 31,
2011, the Company recorded net unrealized depreciation of
$1.1 million resulting primarily from
the default and restructuring of one credit of $0.7 million and $0.4
million from other fair value adjustments. The Company is
taking measures to recover the defaulted amounts from this default
and restructuring over the next several quarters. The Company
recorded $0.3 million of realized
gains.
The Company generated $1.9 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 $0.4 million. The
Company recorded net investment income of $1.4 million, or $0.22 per share, and a net increase in net assets
resulting from operations of $0.6
million, or $0.09 per
share.
During the quarter, the Company originated one new loan
commitment for $2.5 million and
existing borrowers drew $1.5 million
on existing loan facilities. Repayments and amortization of
principal under existing loan facilities and loan and investment
realizations totaled $19.9 million.
All repayments and realizations were recorded at par.
At March 31, 2011, the Company's
portfolio (excluding U.S. Treasury bills and money market funds)
included investments in 11 companies. The average portfolio company
investment at March 31, 2011 was
$4.4 million. The weighted
average interest rate on investments was 12.4%. At fair value,
90.2% of portfolio investments were first lien loans, 7.2% were
second lien loans and 2.6% were equity investments. Approximately
74.5% 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 54% at March 31, 1911 compared to 45% at December 31, 2010 and further compared to 51% at
September 30, 2010.
Recent Developments Since March 31,
2011
Since March 31, 2011, the Company
has funded an additional $1.25 million to
one existing portfolio company.
Early Termination of Remaining Lock-Up Agreements
The company also announced that Ladenburg Thalmann & Co.,
Inc., the representative of the underwriters of the Company's
initial public offering, has waived all remaining contractual
lock-up restrictions on shares of the Company's common stock. Such
lock-up restrictions covered an aggregate of approximately 2.1
million shares of the Company's common stock. Waiver of such
lock-up restrictions is effective May 9,
2011. Upon release of the lock-up restrictions, these shares
will be available for sale subject to any resale restrictions of
the federal securities laws, including, in some instances, the
limitations of Rule 144 under the Securities Act of 1933, as
amended. Prior lockup restrictions, covering approximately
2.1 million shares, had previously expired on March 1, 2011.
Conference Call Details
Management will host a conference call to discuss these results
on Wednesday, May 11, 2011 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
#62599250.
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
11:00 a.m. ET on May 11, 2011 until 11:59
p.m. ET on May 16, 2011 by
calling 800-642-1687 (domestic) or 706-645-9291 (international) and
entering reference code #62599250. 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.
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
|
|
|
|
|
|
|
March
31,
|
|
|
June
30,
|
|
|
|
|
|
2011
(Unaudited)
|
|
|
2010
(Audited)
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
Affiliate Investments at Fair
Value (Cost of $6,981,747
|
|
|
|
|
|
|
|
|
and $ -)
|
|
|
$
|
6,911,286
|
|
|
$
|
-
|
|
|
Investments at Fair Value (Cost
of $79,626,685 and $ -)
|
|
|
|
78,978,586
|
|
|
|
-
|
|
|
Control investments at Fair
Value (Cost of $1,392,954 and $ -)
|
|
|
|
730,238
|
|
|
|
-
|
|
|
Cash
|
|
|
|
27,451
|
|
|
|
1,455
|
|
|
Funds on Deposit
|
|
|
|
2,227,889
|
|
|
|
-
|
|
|
Interest Receivable
|
|
|
|
673,517
|
|
|
|
-
|
|
|
Dividends Receivable
|
|
|
|
1,100
|
|
|
|
-
|
|
|
Due from Affiliate
|
|
|
|
321,000
|
|
|
|
-
|
|
|
Prepaid Expenses
|
|
|
|
90,054
|
|
|
|
-
|
|
|
Other Current Assets
|
|
|
|
177,591
|
|
|
|
-
|
|
|
Deferred Offering
Expenses
|
|
|
|
-
|
|
|
|
425,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current
Assets
|
|
|
|
90,138,712
|
|
|
|
426,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long Term Assets
|
|
|
|
|
|
|
|
|
|
|
Deferred Credit Facility
Fees
|
|
|
|
50,000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Long Term
Assets
|
|
|
|
50,000
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
|
|
90,188,712
|
|
|
|
426,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Due to Affiliate
|
|
|
|
645,543
|
|
|
|
-
|
|
|
Accounts Payable
|
|
|
|
59,624
|
|
|
|
-
|
|
|
Accrued Liabilities
|
|
|
|
79,890
|
|
|
|
-
|
|
|
Due to Broker
|
|
|
|
26,999,595
|
|
|
|
-
|
|
|
Dividends Payable
|
|
|
|
1,399,361
|
|
|
|
-
|
|
|
Interest Payable
|
|
|
|
25,157
|
|
|
|
-
|
|
|
Other Current
Liabilities
|
|
|
|
437,219
|
|
|
|
-
|
|
|
Accrued Offering
Expenses
|
|
|
|
-
|
|
|
|
425,463
|
|
|
Accrued Organizational
Expenses
|
|
|
|
20,003
|
|
|
|
12,500
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current
Liabilities
|
|
|
|
29,666,392
|
|
|
|
437,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long Term
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Distribution Notes
|
|
|
|
3,404,583
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Long Term
Liabilities
|
|
|
|
3,404,583
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
|
|
33,070,975
|
|
|
|
437,963
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Assets
|
|
|
$
|
57,117,737
|
|
|
$
|
(11,045)
|
|
|
Components of Net
Assets
|
|
|
|
|
|
|
|
|
|
|
Common Stock, par value $0.01
per share
|
|
|
|
|
|
|
|
|
|
|
(100,000,000 authorized;
6,219,382 and 100 issued
|
|
|
|
|
|
|
|
|
|
|
and outstanding,
respectively)
|
|
|
$
|
62,194
|
|
|
$
|
1
|
|
|
Paid-in capital in excess of
par
|
|
|
|
58,204,411
|
|
|
|
1,499
|
|
|
Overdistributed Net Investment
Income
|
|
|
|
(112,009)
|
|
|
|
-
|
|
|
Accumulated Net Realized Gains
(Losses)
|
|
|
|
344,417
|
|
|
|
-
|
|
|
Accumulated Net Unrealized Gains
(Losses)
|
|
|
|
(1,381,276)
|
|
|
|
-
|
|
|
Deficit accumulated during
development stage
|
|
|
|
-
|
|
|
|
(12,545)
|
|
|
Net Assets
|
|
|
$
|
57,117,737
|
|
|
$
|
(11,045)
|
|
|
Net Asset Value Per
Share
|
|
|
$
|
9.18
|
|
|
$
|
(110.45)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FULL CIRCLE
CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
|
|
|
|
Three
months
ended
March 31,
2011
|
|
Nine
months
ended
March 31,
2011
|
|
Investment Income
|
|
|
|
|
|
|
Interest Income
|
|
|
|
$
|
1,492,929
|
|
$ 4,295,839
|
|
Interest Income from
affiliate
|
|
|
|
|
441,640
|
|
772,674
|
|
Dividend Income
|
|
|
|
|
2,092
|
|
2,092
|
|
Dividend Income from
affiliate
|
|
|
|
|
-
|
|
210,833
|
|
Other Income
|
|
|
|
|
307,689
|
|
508,691
|
|
Other Income from
affiliate
|
|
|
|
|
61,073
|
|
61,073
|
|
|
|
|
|
|
|
|
|
|
Total Investment
Income
|
|
|
|
|
2,305,423
|
|
5,851,202
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
Management Fee
|
|
|
|
|
250,194
|
|
661,607
|
|
Incentive Fee
|
|
|
|
|
348,612
|
|
836,074
|
|
Total Advisory
Fees
|
|
|
|
|
598,806
|
|
1,497,681
|
|
|
|
|
|
|
|
|
|
|
Allocation of Overhead
Expenses
|
|
|
|
|
90,270
|
|
210,630
|
|
Interest Expense
|
|
|
|
|
83,365
|
|
413,884
|
|
Directors' Fees
|
|
|
|
|
30,625
|
|
85,857
|
|
Administration Fees
|
|
|
|
|
78,115
|
|
182,267
|
|
Officers'
Compensation
|
|
|
|
|
32,361
|
|
75,472
|
|
Professional Services
Expense
|
|
|
|
|
89,080
|
|
209,205
|
|
Bank Fees
|
|
|
|
|
12,866
|
|
29,756
|
|
Other
|
|
|
|
|
102,127
|
|
219,443
|
|
Organizational
Expenses
|
|
|
|
|
-
|
|
178,979
|
|
|
|
|
|
|
|
|
|
|
Total Gross Operating
Expenses
|
|
|
|
|
1,117,615
|
|
3,103,174
|
|
|
|
|
|
|
|
|
|
|
Management Fee Waiver and
Expense Reimbursement
|
|
|
|
|
(173,827)
|
|
(415,515)
|
|
|
|
|
|
|
|
|
|
|
Total Net Operating
Expenses
|
|
|
|
|
943,788
|
|
2,687,659
|
|
|
|
|
|
|
|
|
|
|
Net Investment Income
(Loss)
|
|
|
|
|
1,361,635
|
|
3,163,543
|
|
Change in Unrealized Gain
(Loss)
|
|
|
|
|
(1,051,141)
|
|
(1,381,276)
|
|
Realized Gain (Loss)
|
|
|
|
|
251,780
|
|
344,417
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Net
Assets Resulting from Operations
|
|
|
|
$
|
562,274
|
|
$ 2,126,684
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common
share
|
|
|
|
$
|
0.09
|
|
$ 0.44
|
|
Weighted average shares of
common stock outstanding
|
|
|
|
|
6,215,047
|
|
4,820,864
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
For the
three
months
ended
March 31,
2011
|
|
|
|
For the
period from
August 31,
2010
(commencement of
operations)
to
March 31,
2011
|
|
|
|
|
|
|
|
|
|
|
|
Per Share Data (1)
:
|
|
|
|
|
|
|
|
|
Net asset value at beginning of
period
|
|
$
|
9.32
|
|
|
$
|
9.40
|
|
|
Offering costs
|
|
|
(0.00)
|
|
|
|
(0.04)
|
|
|
Net investment income
|
|
|
0.22
|
|
|
|
0.52
|
|
|
Change in unrealized gain
(loss)
|
|
|
(0.17)
|
|
|
|
(0.23)
|
|
|
Realized gain (loss)
|
|
|
0.04
|
|
|
|
0.06
|
|
|
Dividends declared
|
|
|
(0.23)
|
|
|
|
(0.53)
|
|
|
Net asset value at end of
period
|
|
$
|
9.18
|
|
|
$
|
9.18
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Financial
highlights are based on average weighted shares
outstanding
|
|
|
|
|
|
|
|
|
|
|
SOURCE Full Circle Capital Corporation