Equus Announces Second Quarter Net Asset Value
August 13 2018 - 6:33PM
Equus Total Return, Inc. (NYSE: EQS) (the “Fund”
or “Equus”) reports net assets as of June 30, 2018, of $44.1
million, an increase of approximately $0.9 million since March 31,
2018. Net asset value per share increased to $3.26 as of June
30, 2018 from $3.20 as of March 31, 2018. Comparative data is
summarized below (in thousands, except per share amounts):
As of
the Quarter Ended |
6/30/2018 |
3/31/2018 |
12/31/2017 |
9/30/2017 |
6/30/2017 |
|
|
|
|
|
|
Net
assets |
$44,132 |
$43,260 |
$43,007 |
$41,999 |
$42,122 |
Shares outstanding |
13,518 |
13,518 |
13,518 |
13,518 |
13,518 |
Net
assets per share |
$3.26 |
$3.20 |
$3.18 |
$3.11 |
$3.12 |
The following were the portfolio companies that
had significant changes to their fair values during the second
quarter of 2018:
- Increase in Value of PalletOne. The fair
value of the Fund’s share interest in PalletOne Inc. (“PalletOne”),
increased from $17.8 million to $19.0 million during the second
quarter of 2018. During the second quarter of 2018, PalletOne
reported significant increases in its quarterly revenue and EBITDA
as compared to revenue and EBITDA generated during the first
quarter of 2018 and also as compared to revenue and EBITDA during
the second quarter of 2017. 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.
- 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 $8.25 million to $9.0 million during the second
quarter of 2018, 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.
- Decrease in the Value of MVC Capital
Shares. The trading price of MVC Capital, Inc.’s
(“MVC”) common stock decreased from $9.93 per share on March 31,
2018 to $9.50 per share on June 30, 2018. In addition to the
503,073 MVC shares held by Equus at March 31, 2018, the Fund
received 7,472 MVC shares as a dividend during the second quarter
of 2018. Notwithstanding the receipt of share dividends, the
decrease in the MVC share price during the second quarter of 2018
led to a corresponding decrease in the fair value of this holding
from $5.0 million at March 31, 2018 to $4.75 million at June 30,
2018.
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
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