MVC Capital - MVC - Financial results for the fourth quarter and year
12/27/2012 12:43:32 PM
MVC Capital, Inc. (NYSE:MVC), a publicly traded business development company that makes private equity and debt investments, announced its financial results for the fourth quarter and year ended October 31, 2012.
MVC - Fourth Fiscal Quarter 2012 Financial Highlights
- Interest and dividend income of $5.1 million, compared with $2.9 million in Q4 FY 2011
- Fee and other income of $1.0 million, compared with $566,000 in Q4 FY 2011
- Net operating income of $3.6 million, compared to a loss of $4.1 million in Q4 FY 2011
- Increased quarterly dividend by 12.5% in the fourth quarter to $0.135 per share; paid 30th consecutive quarterly dividend
- Completed sale of SHL Group Ltd. in August for gross proceeds of $15.3 million
"During the fourth quarter, MVC successfully took advantage of opportunities to harvest returns from our investment portfolio," noted Michael Tokarz, Chairman and Portfolio Manager. "In the case of SHL Group, we monetized our investment for a realized gain of approximately $9.2 million or a 2.5X return on invested cash. As it pertains to USG&E, we received a significant dividend that was supported by the Company's strong cash flows. Combined, these transactions highlight the strength of our diversified investment portfolio and our ability to generate favorable returns for shareholders."
In the fourth quarter of 2012, the Company earned approximately $5.1 million in interest and dividend income, and approximately $1.0 million in fee and other income. Combined, this resulted in an increase in total operating income of approximately $2.7 million to $6.1 million, as compared to the same quarter in 2011.
The Company reported net operating income of approximately $3.6 million for the fourth quarter, as compared to a net operating loss of approximately ($4.1) million for the same quarter in 2011.
In fiscal 2012, the Company earned approximately $25.2 million in interest and dividend income, and approximately $4.7 million in fee and other income. Combined, this resulted in an increase in total operating income of approximately $13.9 million to $29.9 million, as compared to fiscal 2011.
The Company reported net operating income of approximately $21.1 million for fiscal 2012, as compared to a net operating loss of approximately ($2.3) million for fiscal 2011.
MVC - Dividends
The board of directors increased the fourth quarter dividend to $0.135 per share, or a total of approximately $3.2 million, to be distributed to shareholders. This represents an increase of 12.5% over the prior dividend. The dividend was paid on October 31, 2012 to shareholders of record on October 25, 2012.
For fiscal 2012, the Company paid dividends totaling $0.495 per share, or a total of approximately $11.8 million. The dividends issued under current management have resulted in approximately $85.6 million in distributions to the Fund's shareholders through October 31, 2012.
About MVC Capital, Inc. - MVC
MVC is a business development company traded on the New York Stock Exchange that provides long-term debt and equity investment capital to fund growth, acquisitions and recapitalizations of companies in a variety of industries.