Closed Record $44.2 Million in New Loan
Originations in the Fourth Quarter
Declares Monthly Distributions of $0.067 Per
Share for a Total of $0.201 Per Share for Second Quarter Fiscal
2015, Equal to Annualized Distribution Rate of $0.80 Per
Share
Full Circle Capital Corporation (Nasdaq:FULL) (the “Company”)
today announced its financial results for the fourth quarter and
full year of fiscal 2014 ended June 30, 2014.
Financial Highlights for the Fourth
Quarter of Fiscal 2014
- New originations and expansion of
facilities to existing borrowers totaled $44.2 million, including
five new portfolio companies, during the three months ended June
30, 2014. The Company recorded no repayments or realizations during
the fourth quarter.
- Total investment income was $3.4
million, an increase of 3.0% compared to $3.3 million for the three
months ended June 30, 2013.
- Net investment income was $1.5 million,
or $0.15 per share, compared to $1.4 million, or $0.18 per share,
for the three months ended June 30, 2013.
- Net realized and unrealized losses were
$9.0 million, or $0.88 per share. Unrealized losses on investments
were $9.0 million, or $0.88 per share.
- Unrealized losses resulted in a net
decrease in net assets from operations of $7.5 million, or $0.73
per share.
- Net asset value was $6.38 per share at
June 30, 2014.
- Per share amounts are based on
approximately 10.3 million weighted average shares outstanding
compared to 7.6 million weighted average shares outstanding for the
fourth quarter of fiscal 2013, reflecting the common equity
offerings completed in January, February, and June, 2014.
- Total portfolio investments at June 30,
2014 were $125.2 million compared to $88.2 million at June 30, 2013
and $90.1 million at March 31, 2014.
- Weighted average portfolio interest
rate was 11.27% at June 30, 2014.
- At June 30, 2014, 88% of portfolio
company investments were first lien senior secured loans.
On September 8, 2014, the Board of Directors declared monthly
distributions for the second quarter of fiscal 2015 as follows:
Record Date Payment Date Per Share
Amount October 31, 2014 November 14, 2014
$0.067 November 28, 2014 December 15, 2014
$0.067 December 31, 2014 January 15,
2015 $0.067
These distributions equate to a $0.804 annualized distribution
rate, or a current annualized yield of 11.2%, based on the closing
price of the Company’s common stock of $7.20 per share on September
12, 2014.
Management Commentary
“In fiscal 2014, we believe Full Circle Capital made significant
progress by successfully expanding and diversifying its investment
platform,” said John Stuart, Chairman and Co-Chief Executive
Officer of Full Circle Capital Corporation. “During the year we
added Gregg Felton, an experienced credit veteran, as Chief
Investment Officer of Full Circle Advisors and as President and
Co-CEO of the Company. We raised capital in both the debt and
equity capital markets through efficient issuances and most
recently amended and expanded our senior revolving line of credit.
With these pieces in place, we believe that Full Circle Capital has
enhanced its competitive positioning in our target middle market.
We ended the year with the largest investment portfolio ($125.2
million) since our initial public offering four years ago and with
the greatest quarterly origination volume in our history during the
fourth fiscal quarter ($44.2 million).”
Gregg Felton commented, “Since I joined Full Circle Capital last
November, we have successfully increased the pipeline of attractive
investment opportunities and have expanded the investment team with
several important additions. We believe that our expanded
investment team will allow us to continue to increase the pace of
production as we have only recently begun to build a more robust
pipeline of investment opportunities in the healthcare and real
estate verticals. We have also broadened our investment approach to
include increased participation in privately originated club deals
as well as secondary purchases which allow us to opportunistically
exploit market inefficiencies."
"We are pleased with the recent portfolio growth and believe we
are well positioned for significant additional growth while we work
to resolve certain legacy issues in our portfolio. As we continue
to scale our business, we expect to benefit from increasing
operational efficiencies. In order to accelerate the realization of
these efficiencies, Full Circle Advisors has agreed to reimburse
Full Circle Capital for operating expenses above 1.50% in fiscal
2015 and above 1.75% in fiscal 2016 and beyond. We believe the
Company’s operating expenses will then be at a level more
consistent with its larger industry peers. With the portfolio
growth we anticipate, we believe that our shareholders will
directly benefit from increased diversification as well as the
additional operating expense efficiencies."
Fourth Quarter Fiscal 2014
Results
The Company’s net asset value at June 30, 2014 was $6.38 per
share. During the quarter, the Company generated $2.9 million of
interest income. Income from fees and other sources totaled $0.5
million. The Company recorded net investment income of $1.5
million, or $0.15 per share. Net realized and unrealized losses
were $9.0 million, or $0.88 per share. Net decrease in net assets
from operations was $7.5 million, or $0.73 per share. Per share
amounts for the quarter ended June 30, 2014 are based on
approximately 10.3 million weighted average shares outstanding
compared to 7.6 million weighted average shares outstanding for the
quarter ended June 30, 2013. This increase reflects the common
equity offerings that Full Circle Capital completed in January,
February, and June 2014.
During the quarter, new originations and expansion of facilities
to existing borrowers was $44.2 million, including five new loan
facilities totaling $35.3 million. There were no repayments or
realizations from portfolio companies during the three month
period.
At June 30, 2014, the Company’s portfolio included debt
investments in 26 companies. The average portfolio company debt
investment at June 30, 2014 was $4.3 million. The weighted average
interest rate on debt investments was 11.27%. At fair value, 88% of
portfolio investments were first lien loans, 6% were second lien
loans and 6% were equity investments. Approximately 82% of the debt
investment portfolio, at fair value, bore interest at floating
rates. The loan-to-value ratio on the Company’s loans was 60% at
June 30, 2014 compared to 64% at March 31, 2014 and 60% at June 30,
2013.
Subsequent Events
On July 17, 2014, the Company closed a registered direct common
stock offering, receiving gross proceeds of approximately $3.7
million. This offering was accretive to net asset value as it was
priced at a 2.8% premium to Full Circle’s last reported net asset
value of $7.20 per share.
On July 17, 2014, the Company closed an offering of 8.25%
fixed-rate notes due 2020 (the “Notes”). The Notes offering
consisted of $12,500,000 in aggregate principal amount of the Notes
and were sold at price of $25.375 plus accrued interest from June
30, 2014, a premium to par value of $25.00 per Note, for total
gross proceeds of approximately $12.7 million. The Notes are a
further issuance of, rank equally in right of payment with, and
form a single series with the $21.1 million of currently
outstanding Notes that will mature on June 30, 2020, and may be
redeemed in whole or in part at any time or from time to time at
our option on or after June 30, 2016. The Notes are listed on the
NASDAQ Global Market and trade under the trading symbol “FULL.”
On July 23, 2014, the Company closed on approximately $0.4
million of a $3.0 million senior secured revolving line of credit
to Medinet Investments, LLC, a medical liability claims factoring
company. The credit facility bears interest at LIBOR plus 13.00%
with a LIBOR floor of 0.50% and has a final maturity of July 23,
2017.
On August 13, 2014, the Company funded approximately $1.0
million of a $1.25 million revolving term loan and $3.2 million of
a $5.75 senior secured term loan to U.S. Oilfield Company, LLC, an
oil and gas field services company. The Company funded an
additional $1.9 million, net, during September 2014 under the
credit facility. The credit facility bears interest at LIBOR plus
12.50% and has a final maturity of August 13, 2017.
On August 19, 2014, the Company purchased approximately $4.0
million of a $210 million senior secured note to US Shale
Solutions, Inc., an oil and gas field services company. The credit
facility bears interest at 12.50% and has a final maturity of
September 1, 2017.
On September 3, 2014 the senior secured credit facility with US
Path Labs, LLC was paid off at par plus accrued interest and fees
for total proceeds of $3.6 million.
On September 12, 2014, the Company entered into an amendment to
its revolving credit facility with Santander Bank, N.A. to increase
the size of the facility from $45 million to $60 million and to
provide for additional criteria for eligibility of loans under the
borrowing base under the credit facility.
Conference Call Details
Management will host a conference call to discuss these results
on Tuesday, September 16, 2014 at 10:00 a.m. EDT. To participate in
the conference call, please call 866-305-6438 (domestic call-in) or
706-679-7161 (international call-in) and reference code #
96486496.
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. EDT on September 16, 2014 until 11:59 p.m. EDT on
September 19, 2014 by calling 855-859-2056 (domestic) or
404-537-3406 (international) and entering confirmation # 96486496.
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
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,” “should,” “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.
FULL CIRCLE CAPITAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND
LIABILITIES (UNAUDITED)
June 30, 2014
June 30, 2013
Assets Control Investments at
Fair Value (Cost of $20,253,149 and $18,139,543, respectively) $
17,539,057 $ 19,115,440 Affiliate Investments at Fair Value (Cost
of $20,177,115 and $17,954,622, respectively) 14,588,417 16,547,903
Non-Control/Non-Affiliate Investments at Fair Value (Cost of
$123,605,311 and $53,220,538, respectively) 118,063,285
52,511,158 Total Investments at Fair Value
(Cost of $164,035,575 and $89,314,703, respectively) 150,190,759
88,174,501 Cash - 18,029,115 Deposit with Broker 2,525,000 -
Interest Receivable 1,016,726 1,097,970 Principal Receivable
207,233 104,768 Dividends Receivable - 36,705 Due from Affiliate
4,273 - Due from Portfolio Investment 135,288 105,030 Receivable
from Notes Offering - 2,299,704 Prepaid Expenses 57,470 61,198
Other Assets 750,326 1,437,273 Deferred Offering Expenses - 86,834
Deferred Debt Issuance Costs 947,937 1,086,895 Deferred Credit
Facility Fees 449,350 543,846
Total Assets 156,284,362 113,063,839
Liabilities Due to Affiliates 891,966 728,371
Bank Overdraft 821,316 - Accounts Payable 154,771 471,297 Accrued
Liabilities 30,086 10,172 Due to Broker 25,000,221 - Payable for
Investments Acquired 24,900,172 - Dividends Payable 766,683 582,842
Interest Payable 45,254 134,167 Other Liabilities 1,076,800 358,696
Accrued Offering Expenses 35,828 - Line of Credit 8,435,463
25,584,147 Notes Payable 8.25% due June 30, 2020 21,145,525
21,145,525 Distribution Notes - 3,404,583
Total Liabilities 83,304,085
52,419,800
Net Assets $ 72,980,277
$ 60,644,039
Components of Net Assets
Common Stock, par value $0.01 per share (100,000,000 authorized;
11,443,034 and 7,569,382 issued and outstanding, respectively) $
114,430 $ 75,694 Paid-in Capital in Excess of Par 92,103,666
66,319,579 Distributions in Excess of Net Investment Income
(131,251 ) (200,200 ) Accumulated Net Realized Losses (5,261,752 )
(4,410,832 ) Accumulated Net Unrealized Losses (13,844,816 )
(1,140,202 )
Net Assets $ 72,980,277 $
60,644,039
Net Asset Value Per Share $ 6.38
$ 8.01
FULL CIRCLE CAPITAL CORPORATION AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months EndedJune
30, Year EndedJune
30, 2014 2013
2014 2013 Investment
Income Interest Income from
Non-Control/Non-Affiliate Investments $ 1,647,626 $ 1,790,960 $
6,486,729 $ 7,400,633 Interest Income from Affiliate Investments
716,812 637,255 2,701,361 1,587,281 Interest Income from Control
Investments 511,258 470,459 1,963,407 1,504,343 Dividend Income
from Control Investments - 36,706 114,704 223,474 Other Income from
Non-Control/Non-Affiliate Investments 524,348 302,146 2,490,900
1,136,661 Other Income from Affiliate Investments 4,436 80,054
16,592 143,631 Other Income from Control Investments 12,500
12,500 50,000 50,000
Total Investment Income 3,416,980
3,330,080 13,823,693 12,046,023
Operating Expenses Management Fee 475,595 389,946
1,631,694 1,431,851 Incentive Fee 370,132
338,427 1,511,362 1,339,833
Total Advisory Fees 845,727 728,373
3,143,056 2,771,684 Allocation
of Overhead Expenses 38,422 84,552 180,737 310,412
Sub-Administration Fees 50,000 50,000 200,000 223,429 Officers’
Compensation 75,529 75,222
301,925 300,736 Total Administration Fees
163,951 209,774 682,662
834,577 Directors’ Fees 41,250 38,125 127,625
124,500 Interest Expenses 630,917 640,103 2,693,487 1,854,495
Professional Services Expense 143,252 183,065 610,362 567,126 Bank
Fees 10,775 4,134 56,184 16,429 Tax Expenses - 109 - 4,369 Other
100,581 161,875 479,596 492,262
Total Net Operating
Expenses 1,936,453 1,965,558
7,792,972 6,665,442
Net Investment
Income 1,480,527 1,364,522 6,030,721 5,380,581 Net Change in
Unrealized Gain (Loss) on Investments
(9,006,140)
657,754
(12,704,614)
2,636,310 Net Realized Gain (Loss) on: Investments
(1,152)
(168,640)
(947,601)
(4,215,748)
Foreign Currency Transactions
(63)
-
(901)
- Net Realized Gain (Loss)
(1,215)
(168,640)
(948,502
(4,215,748)
Net Increase in Net Assets Resulting from Operations $
(7,526,828)
$ 1,853,636 $
(7,622,395)
$ 3,801,143 Earnings per Common Share Basic and
Diluted $
(0.73)
$ 0.24 $
(0.88)
$ 0.54 Net Investment Income per Common Share Basic and Diluted $
0.15 $ 0.18 $ 0.71 $ 0.77 Weighted Average Shares of Common Share
Outstanding Basic and Diluted 10,269,882 7,569,382 8,698,814
7,018,286
FULL CIRCLE CAPITAL
CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(UNAUDITED)
Year Ended
June 30, 2014
Year Ended
June 30, 2013
Year Ended June
30, 2012
For the
period from
August 31, 2010
(commencement of
operations)
to June
30, 2011
Per Share Data (1)
(4) :
Net asset value at beginning of period $ 8.01 $ 8.59 $ 9.08 $ 9.40
Accretion (dilution) from offering 0.03
((3))
(0.18)
((2))
- - Offering costs
(0.04)
(0.02)
-
(0.04)
Net investment income (loss) 0.71 0.77 0.78 0.70 Change in
unrealized gain (loss)
(1.36)
0.37
(0.32)
(0.29)
Realized gain (loss)
(0.11)
(0.60)
(0.03)
0.06 Dividends declared (5)
(0.86)
(0.92)
(0.92)
(0.75)
Net asset value at end of period $ 6.38 $ 8.01 $ 8.59
$
9.08
(1) Financial highlights are based on
weighted average shares outstanding. (2) Dilution from offering is
based on the change in net asset value from a follow-on offering on
November 27, 2012. (3) Accretion from offering is based on the net
change in net asset value from the follow-on offerings on January
14, 2014, February 27, 2014, and June 19, 2014. (4) Financial
highlights for the period from April 16, 2010 (inception) through
June 30, 2010 are not presented as the Company’s operations were
limited to organization and offering activities only. (5) Includes
return of capital of $0.17, $0.14, and $0.12 for the years ended
June 30, 2014, June 30, 2013, and June 30, 2012, respectively.
Full Circle Capital CorporationJohn Stuart, Co-Chief Executive
OfficerGregg J. Felton, Co-Chief Executive
Officer203-900–2100info@fccapital.comorInvestor Relations
Contacts:LHAStephanie PrinceJody
Burfening212-838-3777sprince@lhai.com
Full Circle Capital Corp. (MM) (NASDAQ:FULL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Full Circle Capital Corp. (MM) (NASDAQ:FULL)
Historical Stock Chart
From Jul 2023 to Jul 2024