Allied Capital Corp. announces 1996 net income of $1.61 per share.WASHINGTON--(BUSINESS WIRE)--Feb. 18, 1997--Allied Capital Corp. (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 1996 results Tuesday Tuesday: see week. . For the year ended Dec. 31, 1996, net income was $11.4 million or $1.61 per share, as compared to $15.3 million, or $2.45 per share, for the year ended Dec. 31, 1995. Net investment income increased by 32% to $4.4 million over 1995 net investment income of $3.3 million, and 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 90% over 1995 to $10.5 million because of the sale of certain investments from its portfolio, including a portion of its 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. The combination of the high level of harvested gains and net valuation decreases in the portfolio resulted in a decline in net unrealized appreciation in the portfolio, which had the overall effect of reducing net income for the year. During the year, the weighted average shares outstanding increased by 12% primarily due to the sale of additional shares of common stock in a rights offering to shareholders during the first quarter of 1996. 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. , which included four regular quarterly dividends and an annual extra distribution, were $1.51 per share, a 5% increase over the company's 1995 total distribution of $1.44 per share. The company's stock, which traded at a yield of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 9% throughout 1996, had a total return of 27.8% for the year. For 1996, the company invested $40.5 million into 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. Repayments, sales of equity securities, and changes in portfolio valuations totaling approximately $47 million caused an overall decrease in the company's total investments of 5% to $116.6 million by 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. . The company currently has $5.1 million in outstanding commitments for new investments. During the fourth quarter of 1996, $12.8 million was invested in new or existing portfolio companies. Net income for the three months ended Dec. 31, 1996 was $1.6 million. Cabell Williams, president and portfolio manager commented, "1996 continued to be a seller's market and we benefitted through the exit of several investments, some of which provided significant gains. We also experienced an usually high rate of repayments largely due to declining interest rates, and a greater flow of capital into the marketplace. "We are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about new investment opportunities, but are selecting our deals carefully, since many companies continue to be valued at what we believe to be inflated levels." -0-
(in thousands, except
per share amounts) 12 mos. ended 12 mos. ended
-------------------- --------------------
12/31/96 Per Share 12/31/95 Per Share
-------- --------- -------- ---------
Operating Information
---------------------
Net investment income $ 4,395 $ 0.63 $ 3,332 $ 0.54
Net realized gains 10,497 1.51 5,526 0.90
------- -------
Net realized income 14,892 2.14 8,858 1.44
Net unrealized apprec.
(deprec.) (3,499) (0.50) 6,459 1.05
------- -------
Net income (a) $11,393 1.61 $15,317 2.45
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Actual shares outstanding 7,299 -- 6,198 --
Weighted avg. shares
outstanding 6,935 -- 6,172 --
Distributions to Shareholders
-----------------------------
Regular dividends -- $ 1.13 -- $ 0.86
Extra distribution -- 0.38 -- 0.58
------ ------
Total distributions for
12 months -- $ 1.51 -- $ 1.44
====== ======
3 mos. ended 3 mos. ended
-------------------- --------------------
12/31/96 Per Share 12/31/95 Per Share
-------- --------- -------- ---------
Operating Information
---------------------
Net investment income $ 1,288 $ 0.18 $ 1,048 $ 0.17
Net realized gains 2,121 0.29 1,942 0.31
------- -------
Net realized income 3,409 0.47 2,990 0.48
Net unrealized apprec
(deprec) (1,797) (0.25) (92) (0.01)
------- -------
Net income (a) $ 1,612 0.22 $ 2,898 0.46
======= =======
Actual shares outstanding 7,299 -- 6,198 --
Weighted avg. shares
outstanding 7,209 -- 6,209 --
Distributions to Shareholders
-----------------------------
Regular dividends -- $ 0.31 -- $ 0.24
(a) Net income has been reduced by preferred stock dividends for the
calculation of earnings per common share.
12/31/96 Per Share 12/31/95 Per Share
-------- --------- -------- ---------
Balance Sheet
Information
-------------
Total investments $116,608 -- $123,184 --
Total assets 165,751 -- 148,268 --
Common shareholders'
equity (NAV) 62,320 $ 8.54 51,181 $ 8.26
-0- Allied Capital Corp. is a business development company headquartered in 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. , D.C. and traded on the Nasdaq National Market under the 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, private 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 7,318,546 total shares outstanding. Allied Capital pays a regular quarterly dividend of 33 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. and an annual extra distribution which is determined at year end. The company paid a total of $1.51 per share for the year ended Dec. 31, 1996 and $1.44 per share for the year ended Dec. 31, 1995. For additional information, please contact Allied Capital's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department directly at 202/973-6383, via fax at 202/659-2053. Press releases and other information may be obtained through the company's News-On-Demand fax service at 888/329-5519, or through Allied Capital's world wide web site at www.alliedcapital.com . CONTACT: Allied Capital, Washington 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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