Allied Capital Corp. announces 1995 results.WASHINGTON--(BUSINESS WIRE)--March 5, 1996--Allied Capital Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ALLC ALLC Association for Literary and Linguistic Computing ALLC Allied Capital Corporation (stock symbol) ALLC Army Logistics Leadership Center (Red River Defense Complex, Texarkana, TX) ) announced 1995 results Tuesday Tuesday: see week. . For the year ended Dec. 31, 1995, net income, which includes the effect of unrealized appreciation and depreciation on investments, was $15.3 million or $2.45 per share, a significant increase over 1994 performance. Net realized income, which includes ordinary investment income and realized capital gains and losses but excludes the effect of unrealized appreciation or depreciation, was $8.9 million, or $1.44 per share, a 60% increase over 1994 net realized income of $5.5 million, or 90 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Net realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. on investments increased by 63% over 1994 as the company took advantage of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions and sold several investments from its portfolio. Net unrealized appreciation increased by $6.5 million to $7.6 million at Dec. 31, 1995. A large portion of this net unrealized appreciation is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the company's investment in Allied Capital Lending Capital lending is the process of a large company, or corporation, offering financing on large "ticket" items to encourage the customer to purchase that item. Many major corporations have set up finance divisions, or subsidiaries, to help the customer purchase their product over Corp., formerly a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , the stock price of which was unusually low at the end of 1994 and increased in value by more than 27% during the year. Total distributions of taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. , including four regular quarterly dividends and an annual extra distribution, were $1.44 per share, a 3% increase over the prior year's total distributions of $1.40 per share, resulting in an effective yield to shareholders of 10.6% based on the Dec. 31, 1995 market price for the company's shares. During the fourth quarter of 1995, Allied Capital Corp. invested approximately $10.3 million in new or existing portfolio companies. For the year, new and follow-on fol·low-on adj. Following as a related or consequent aspect or development: "Such contracts involve follow-on sales of maintenance services" Christian Science Monitor. investments totaled approximately $27.6 million. Net of repayments and changes in portfolio valuations, the company increased its total investments in small businesses by approximately $8.2 million or 7% during the year. At Dec. 31, 1995, investments in small businesses totaled 83% of the company's total assets, and the company had $5.4 million in outstanding commitments. Cabell Williams, president and portfolio manager recently remarked, "This was a great year for Allied Capital Corporation as we exited several mature investments which resulted in net realized gains of $5.5 million." He continued, "Our portfolio was strong at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , and the net unrealized appreciation on our balance sheet of $7.6 million suggests that 1996 could be another great year for gains." -0- (in thousands, except per share amounts)
12 mos. ended 12 mos. ended
12/31/95 Per share 12/31/94 Per share
-------- --------- -------- ---------
Operating Information
---------------------
Net investment income $ 3,332 $ 0.54 $ 2,126 $ 0.35
Net realized gains 5,526 0.90 3,394 0.55
----- -----
Net realized income 8,858 1.44 5,520 0.90
Net unrealized apprec.
(deprec.) 6,459 1.05 (5,296) (0.86)
----- -----
Net income (a) $ 15,317 2.45 $ 224 0.00
======== ========
Actual shares outstanding 6,198 -- 6,153 -- Weighted avg. shares outstanding 6,172 -- 6,154 --
Distributions to Shareholders
-----------------------------
Regular dividends -- $ 0.86 -- $ 0.80
Extra distribution -- 0.58 -- 0.60
---- ----
Total distributions for
12 months -- $ 1.44 -- $ 1.40
====== ======
3 mos. ended 3 mos. ended
12/31/95 Per share 12/31/94 Per share
-------- --------- -------- ---------
Operating Information
---------------------
Net investment income $ 1,048 $ 0.17 $ 1,273 $ 0.21
Net realized gains 1,941 0.31 1,369 0.22
----- -----
Net realized income 2,989 0.48 2,642 0.43
Net unrealized apprec
(deprec) (91) (0.01) (5,756) (0.94)
----- -----
Net income (a) $ 2,898 0.46 $ (3,114) (0.52)
======= ========
Actual shares outstanding 6,198 -- 6,153 -- Weighted avg. shares outstanding 6,186 -- 6,143 --
Distributions to Shareholders
-----------------------------
Regular dividends -- $ 0.24 -- $ 0.20
Extra distribution -- 0.58 -- 0.60
---- ----
Total distributions
for 3 months -- $ 0.82 -- $ 0.80
====== ======
(a) Net income has been reduced by preferred stock dividends for the
calculation of earnings per common share.
12/31/95 Per share 12/31/94 Per share
-------- --------- -------- ---------
Balance Sheet Information
-------------------------
Total investments $ 123,184 -- $ 115,026 --
Total assets 148,268 -- 135,517 --
Common shareholders'
equity (NAV) 51,181 $ 8.26 43,987 $ 7.15-0-
Allied Capital Corp. is a business development company traded on the Nasdaq National Market, symbol ALLC. The company makes long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. investments ranging in size from $2 million to $8 million in small, growing businesses throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . There are 6,228,126 total shares outstanding. Allied Capital pays a regular quarterly dividend of 26 cents per share and an annual extra distribution which is determined at year end. The company paid a total of $1.44 per share for the year ended Dec. 31, 1995, and paid a total of $1.40 per share, including a $0.60 per share extra distribution in the form of shares of Allied Capital Lending Corp., for the year ended Dec. 31, 1994. Allied Capital paid $1.35 per share in distributions for the year ended Dec. 31, 1993 and $1.32 per share for 1992. Allied Capital has paid regular quarterly dividends and an annual extra distribution since 1964. All numbers have been adjusted for stock splits. Allied Capital's stock is marginable. A recent quote of the stock was $13.375. For additional information, please contact Allied Capital's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department at 202/973-6343 or fax to 202/659-2053. CONTACT: Allied Capital, Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. Suzanne Suzanne is a common female given name that was particularly popular in the United States in the 1950s and 1960s. It remained in the top 200 most popular names in the United States between 1930 and the late 1980s. Sparrow, 202/973-6326 |
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