Equus Announces 2018 Year-End Net Asset Value
March 29 2019 - 7:25PM
Equus Total Return, Inc. (NYSE: EQS) (the “Fund”
or “Equus”) reports net assets as of December 31, 2018, of $43.5
million, an increase of approximately $0.5 million since December
31, 2017. Net asset value per share increased to $3.22 as of
December 31, 2018 from $3.18 as of December 31, 2017.
Comparative data is summarized below (in thousands, except
per share amounts):
As of
the Quarter Ended |
12/31/2018 |
9/30/2018 |
6/30/2018 |
3/31/2018 |
12/31/2017 |
Net
assets |
$ |
43,495 |
$ |
46,571 |
$ |
44,132 |
$ |
43,260 |
$ |
43,007 |
Shares
outstanding |
|
13,518 |
|
13,518 |
|
13,518 |
|
13,518 |
|
13,518 |
Net
assets per share |
$ |
3.22 |
$ |
3.45 |
$ |
3.26 |
$ |
3.20 |
$ |
3.18 |
The following were the portfolio companies that
had significant changes to their fair values during 2018:
- Increase in Value of
PalletOne. Equus holds an 18.7% fully-diluted share
interest in PalletOne, Inc. (“PalletOne”) one of the nation’s
largest wooden pallet manufacturers and a major supplier of treated
lumber in the southeastern United States. The fair value of
the Fund’s share interest in PalletOne increased from $16.7 million
to $20.5 million during 2018, principally as a result of improved
operational results, as well as the positive effect of accretive
acquisitions and new initiatives undertaken during the year.
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 142 producing and
non-producing oil and gas wells, including associated development
rights of approximately 21,520 acres, situated on 11 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. During the third and fourth quarters of 2018, Equus
Energy sold two separate working interests it held in the Permian
Basin in west Texas for an aggregate selling price of
$800,000. The net proceeds of these sales are currently held
within Equus Energy to facilitate operational expenses and for
possible future growth initiatives. Principally due to these
transactions and increased acreage values in the region,
particularly in respect of Equus Energy’s other holdings in the
Permian Basin, the fair value of this holding increased to $9.0
million at December 31, 2018 from $8.0 million at December 31,
2017. The Fund received advice and assistance from a
third-party valuation firm to support its determination of the fair
value of this investment.
- Decrease in the Value of
MVC Capital Shares. MVC Capital, Inc.’s (“MVC”)
common stock decreased from $10.56 per share on December 31, 2017
to $8.21 per share on December 31, 2018. This decrease was
partially offset by the receipt of 30,930 MVC shares as dividends
during the year, resulting in a total of 527,138 MVC shares held at
December 31, 2018. The fair value of this holding decreased
from $5.2 million at December 31, 2017 to $4.3 million as of
December 31, 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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