Allied Capital Corp. announces 1997 first quarter earnings.WASHINGTON--(BUSINESS WIRE)--May 12, 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 first quarter results Monday Monday: see week. . For the three months ended March 31, 1997, net income was $2.0 million, or 26 cents per common share as compared to $4.4 million, or 69 cents per common share for the first quarter of 1996. The comparison of first quarter 1997 earnings to first quarter 1996 earnings is significantly effected by the level of investment divestitures and other exit activities occurring in the respective quarters, and the timing of recognition of capital gains. 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. for the first quarter of 1996 were $3.2 million, or 50 cents per common share. First quarter 1997 exit activity was not as significant, and as a result, net realized gains for the first quarter of 1997 were $319,000, or 4 cents per common share. The impact of the timing of gain recognition on quarterly earnings of the company can be significant, and thus quarterly earnings are not necessarily reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of expected annual results. Net income per common share for the quarter ended March 31, 1997 also reflects an increase of 17% in the weighted average common shares outstanding, due to the effect of new shares issued in the company's March 1996 rights offering. Net investment income, which totaled $909,000 for the quarter, remained relatively constant with that of the first quarter 1996. The company sold several portfolio investments in the latter part of 1996, and as a result, total investments have remained relatively constant. The company continues to see increased competition for quality investments in the market place, and is cautiously cau·tious adj. 1. Showing or practicing caution; careful. 2. Tentative or restrained; guarded: felt a cautious optimism that the offer would be accepted. approaching new investment activity to assure that the portfolio is receiving adequate compensation for new investments, and is accepting appropriate levels of risk. Allied Capital invested $3.8 million this quarter in new or existing portfolio companies. After repayments and changes in valuations, total investments were $115 million at March 31, 1997. Cabell Williams, portfolio manager, remarked, "The portfolio is comprised of many strong growing businesses, and we plan to keep it that way. We are cautious investors in this heated market. "Our cash position is strong, and we are actively, but carefully, seeking larger, stable companies in which to invest. This continues to be a great seller's market, and we will expect to cash in on more investments as the year progresses." At their most recent meeting, the board of directors of Allied Capital Corp. increased the company's quarterly cash dividend by 3% to 34 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. . The dividend is payable on June June: see month. 30, 1997 to shareholders of record as of June 20, 1997. -0-
(in thousands, except per share amounts)
3/31/97 Per Share 12/31/96 Per Share
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Financial Position
Information
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Total investments $115,401 -- $116,608 --
Total assets 165,277 -- 165,751 --
Common shareholders'
equity (NAV) 63,147 $ 8.60 62,320 $ 8.54
3 mos. ended 3 mos. ended
03/31/97 Per Share 3/31/96 Per Share
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Operating Information
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Net investment income $ 909 $ 0.12 $ 982 $ 0.15
Net realized gains on
investments 319 0.04 3,176 0.50
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Net realized income 1,228 0.16 4,158 0.65
Net unrealized appreciation 728 0.10 284 0.04
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Net income $ 1,956 $ 0.26 $ 4,442 $ 0.69
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Actual shares outstanding 7,343 -- 6,908 --
Weighted avg. shares
outstanding 7,394 -- 6,343 --
Distributions to Shareholders
-----------------------------
Regular dividends -- $ 0.33 -- $ 0.26
-0- Statements in this release concerning the company's future prospects are "forward looking statements" under the Federal securities laws. There can be no assurance that future results will be achieved and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially are included but are not limited to those listed in the company's quarterly reports as filed on Form 10-Q Form 10-Q See 10-Q. and annual report as filed on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . -0- Allied Capital Corp. is a publicly traded 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. traded on 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, 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 7,343,041 total shares outstanding. Allied Capital pays a regular quarterly dividend of 34 cents per share 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, $1.44 per share for the year ended Dec. 31, 1995, and a total of $1.40 per share, including a 60 cents per share annual extra distribution in the form of shares of 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., for the year ended Dec. 31, 1994. A recent quote of the stock was $15.375. For further information or a copy of the company's annual report, please contact Allied Capital's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department directly at 202/973-6326, via fax at 202/659-2053, receive press releases and other information through our News-On-Demand fax service at 888/329-5519, or visit our 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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