conix
13 years ago
MCG Capital cuts 42% of staff, net loss balloons
Washington Business Journal - by Tucker Echols
Date: Thursday, August 4, 2011, 11:16am EDT
MCGC said Thursday that it would reduce its workforce by 42 percent in a bid to save as much as $7.25 million by the end of 2012. The companyโs quarterly loss soared tenfold in the latest quarter.
MCG, which makes loans and investments in small and medium-sized private companies, said it would lay off 22 current employees and eliminate the positions of five other employees already terminated as part of a restructuring to better serve future plans to invest more in debt. The reductions will leave it with a staff of 36 employees.
Total cost of the restructuring is expected to be approximately $4.3 million to $4.5 million. The company said those costs would be incurred during the remainder of fiscal 2011.
In the fiscal 2011 second quarter, ended June 30, 2011, MCG reported a net loss of $10.2 million, or 13 cents per share. That compares with a net loss of $800,000, or 1 cent per share, in the year-ago period.
Net investment loss for the quarter was $21.4 million due primarily to a $24.8 million reduction in the fair value of the company's investment in Broadview Networks Holdings Inc.
Revenue for MCG fell 2.6 percent to $21.2 million.
Investor reaction to the layoff and latest results was not positive. Stock in MCG (NASDAQ: MCGC) fell Thursday as much as 97 cents, 17 percent, to $4.55 โ a 14-month low. MCG went public in 2001 at $17 a share.
Dividend sure does not look safe.
conix
14 years ago
MCG Capital Corporation Reports Third Quarter 2010 Results and Declares Dividend of $0.14 Per Share
ARLINGTON, Va.--(BUSINESS WIRE)-- MCG Capital Corporation (Nasdaq:MCGC - News) (โMCGโ or the โCompanyโ) announced today its financial results for the quarter ended September 30, 2010. MCG will host an investment community conference call today, November 2, 2010 at 11:00 a.m. (Eastern Time). Slides and financial information to be reviewed during the investor conference call will be available on MCGโs website at http://www.mcgcapital.com prior to the call.
HIGHLIGHTS
* Distributable net operating income, or DNOI, for the quarter ended September 30, 2010 was $12.4 million, or $0.16 per share.
* Net operating income for the quarter ended September 30, 2010 was $11.4 million, or $0.15 per share.
* Net loss for the quarter ended September 30, 2010 was $0.5 million, or $0.01 per share.
* Net investment loss for the quarter ended September 30, 2010 was $9.8 million, which represented 1.0% of the most recently reported fair value of MCGโs investment portfolio.
* During the quarter ended September 30, 2010, MCG made $69.1 million of advances and originations, including $49.3 million in debt investments to seven new portfolio companies. Payoffs and portfolio monetization activities totaled $126.3 million during the quarter.
* MCGโs ratio of total assets to total borrowings and other senior securities was 233% as of September 30, 2010.
DIVIDEND DECLARATION
MCG also announced today that its board of directors has declared a dividend of $0.14 per share. The dividend is payable as follows:
Record date: December 9, 2010
Payable date: January 6, 2011