Equus Announces 2017 Year-End Net Asset Value
April 17 2018 - 6:05PM
Equus Total Return, Inc. (NYSE:EQS) (the “Fund” or
“Equus”) reports net assets as of December 31, 2017, of $43.0
million, an increase of approximately $1.0 million since September
30, 2017. Net asset value per share increased to $3.18 as of
December 31, 2017 from $3.11 as of September 30, 2017.
Comparative data is summarized below (in thousands, except
per share amounts):
As of
the Quarter Ended |
12/31/2017 |
9/30/2017 |
6/30/2017 |
3/31/2017 |
12/31/2016 |
|
|
|
|
|
|
|
|
|
|
|
Net
assets |
$ |
43,007 |
$ |
41,999 |
$ |
42,122 |
$ |
41,422 |
$ |
42,740 |
Shares outstanding |
|
13,518 |
|
13,518 |
|
13,518 |
|
13,518 |
|
12,674 |
Net
assets per share |
$ |
3.18 |
$ |
3.11 |
$ |
3.12 |
$ |
3.06 |
$ |
3.37 |
|
|
|
|
|
|
|
|
|
|
|
The following were the portfolio companies that
had significant changes to their fair values during 2017:
- Increase in the Value of Equus Energy.
The Fund established Equus Energy, LLC (“Equus Energy”) as a
wholly-owned subsidiary in 2011 to be used as a platform for
energy-related investments, with particular emphasis on oil and gas
enterprises. Equus Energy owns various working interests,
which are presently derived from 144 producing and non-producing
oil and gas wells, including associated development rights of
approximately 22,360 acres, situated on 12 separate properties in
Texas and Oklahoma. The working interests range from a de minimus
amount to 50% of the leasehold that includes these wells. Also
included in the interests acquired by Equus Energy are working
interests of 7.5% and 2.5% in the Burnell and North Pettus Units,
respectively, which collectively comprise approximately 13,000
acres located in the area known as the “Eagle Ford Shale”
play. The fair value of the Fund’s holding in Equus Energy
increased from $6.3 million to $8.0 million during 2017,
principally due to improved economic prospects affecting mineral
rights held by Equus Energy. The Fund received advice and
assistance from a third-party valuation firm to support our
determination of the fair value of this investment.
- Increase in the Value of MVC Capital
Shares. MVC Capital, Inc.’s (“MVC”) common stock
increased from $8.58 per share on December 31, 2016 to $10.56 per
share on December 31, 2017. In addition to the 468,608 MVC
shares held by Equus at December 31, 2016, the Fund received 27,600
MVC shares as a dividend during 2017. The receipt of share
dividends and increase in the MVC share price led to a
corresponding increase in the fair value of this holding from $4.0
million to $5.2 million during 2017.
- Increase in Value of PalletOne. The fair
value of the Fund’s share interest in PalletOne Inc. (“PalletOne”),
increased from $16.2 million to $16.7 million during 2017 as a
result of an increase in revenue and growth prospects, as well as
an overall improvement in comparable industry sectors. Equus
holds an 18.7% fully-diluted share interest in PalletOne, one of
the largest wooden pallet manufacturers in the United States.
The Fund received advice and assistance from a third-party
valuation firm to support its determination of the fair value of
this investment.
During 2017, we incurred non-recurring
professional fees of $2.5 million in connection with our agreement
to acquire U.S. Gas & Electric, Inc. (“USG&E”), which
included fees related to legal, accounting, audit, fairness
advisory, and regulatory filings, as well as outsourced due
diligence fees and reports relating to taxation, quality of
earnings, and regulatory items. In connection with the
termination of the agreement to acquire USG&E, we also received
a one-time merger termination fee of $2.5 million.
About Equus
The Fund is a business development company that
trades as a closed-end fund on the New York Stock Exchange under
the symbol "EQS". Additional information on the Fund may be
obtained from the Fund’s website at www.equuscap.com.
This press release may contain certain
forward-looking statements regarding future circumstances. These
forward-looking statements are based upon the Fund’s current
expectations and assumptions and are subject to various risks and
uncertainties that could cause actual results to differ materially
from those contemplated in such forward-looking statements
including, in particular, the performance of the Fund, including
our ability to achieve our expected financial and business
objectives, and the other risks and uncertainties described in the
Fund’s filings with the SEC. Actual results, events, and
performance may differ. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as
to the date hereof. Except as required by law, the Fund undertakes
no obligation to release publicly any revisions to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this
release does not constitute an admission by the Fund or any other
person that the events or circumstances described in such
statements are material.
Contact:
Patricia Baronowski Pristine Advisers, LLC (631) 756-2486
Equus Total Return (NYSE:EQS)
Historical Stock Chart
From Jul 2024 to Aug 2024
Equus Total Return (NYSE:EQS)
Historical Stock Chart
From Aug 2023 to Aug 2024