Allied Capital Corp. third quarter earnings increase 85%.WASHINGTON--(BUSINESS WIRE)--Nov. 7, 1996-- Quarterly cash dividend increased 7% to 31 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. from 29 cents per share Annual extra dividend of 38 cents per share brings total annual distribution to $1.51 per share Allied Capital Corp. (Nasdaq: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 third quarter results today. For the three-month period, net income increased by 85% over the comparable period of the prior year. Third quarter 1996 earnings were $5.7 million, or 80 cents per common share, as compared to $3.1 million, or 49 cents per common share, for the third quarter of 1995. For the three months ended Sept. 30, 1996, net investment income before 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. decreased to $0.7 million from $0.9 million for the prior comparative period. Net realized gains equaled $2.2 million, down from $3.3 million for the third quarter of 1995. Net realized income, which represents the sum of investment income and realized gains, decreased to $3.0 million for the three months ended Sept. 30, 1996 from $4.2 million for the three months ended Sept. 30, 1995. Realized gains occur upon the sale of the company's equity interests in portfolio companies and can be unpredictable This article is about the R&B album. For the Eureka episode, see Unpredictable (Eureka). For other uses, see Predictability. Unpredictable is Jamie Foxx's second studio release. ; as a result, realized gains tend to vary significantly from quarter to quarter. The value of the portfolio (net unrealized appreciation) increased by $2.7 million during the quarter. The increase in the value of the portfolio is primarily due to the appreciation of the company's holdings 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. (ALCL ALCL Anaplastic Large Cell Lymphoma ALCL Assembly Line Communications Link ) and Peerless Group Inc. (PLSS PLSS abbr. portable life-support system ). The increase in net unrealized appreciation resulted in an overall increase in the company's net income for the quarter. The company experienced a 14% increase in the weighted average shares outstanding from the prior three-month period in 1995, which was due to the completion of a rights offering during the first quarter of 1996. For the nine months ended Sept. 30, 1996, total investment income increased 11%, net investment income increased 36%, and net realized gains increased 134%. Accordingly, net realized income increased 96% to $11.5 million from $5.9 million for the nine months ended Sept. 30, 1995. For the nine months ended Sept. 30, 1996, the net unrealized appreciation on the portfolio declined by $1.7 million. Net income, which includes the effect of unrealized appreciation or depreciation, was $9.8 million, or $1.41 per common share, for the nine months ended Sept. 30, 1996 down from $12.4 million, or $1.97 per common share, for the same period in 1995. The weighted average shares outstanding increased by 10% from period to period. The decline in net income was primarily due to the fact that the nine-month period ended Sept. 30, 1995 included a significant increase in the net unrealized appreciation on the portfolio. The company invested a total of $19.1 million in new portfolio investments during the quarter. After liquidations, repayments, and changes in valuations, the company reported a 4% net increase in investments, or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.8 million. As of Sept. 30, 1996 the company had outstanding commitments for new investments totaling approximately $5.2 million. Following the company's most recent board meeting, commitments totaled approximately $14.1 million. "Our loan production this quarter was good, and from this we should see increases in net investment income in ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. quarters," Cabell Williams, president and portfolio manager remarked. "Among the deals we closed this quarter was our second international investment -- a $3.7 million subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". and equity investment in a Hungarian pasta While the only basic difference between these names is the shape of the pasta, each pasta is typically matched with a particular sauce based on cooking time, consistency, ability to hold sauce, ease of eating, etc. and juice manufacturer. "Our investment, which was funded from our $20 million OPIC OPIC Overseas Private Investment Corporation OPIC Office de la Propriété Intellectuelle du Canada (French: Canadian Intellectual Property Office) OPIC Organization of Professional Immigration Consultants OPIC Ohio Public Interest Campaign facility, is well collateralized and has strong upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar . We hope to experience the same kinds of strong total returns from our international portfolio that we've we've Contraction of we have. we've have experienced as a whole on our domestic investments ." Williams continued, "Our gains were also strong this quarter. We are pleased with the timing and pricing of our exits so far this year, and we expect to see similar activity in the fourth quarter as we seek to capture our unrealized appreciation by selling our mature investments." 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. . Quarterly cash dividend increased by 7% to 31 cents per share Allied Capital Corp. recently increased its quarterly cash dividend by 7% to 31 cents per share from 29 cents per share. This represents the sixth consecutive increase in the quarterly dividend. The dividend is payable on Dec. 31, 1996 to shareholders of record as of Dec. 13, 1996. Annual extra dividend of 38 cents per share declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. The company has also declared, for the 34th consecutive year, an annual extra dividend. For 1996, this extra dividend will be 38 cents per share, and is payable on Jan. 31, 1997 to shareholders of record as of Dec. 27, 1996. Including this annual extra dividend, Allied Capital Corp. will distribute a total of $1.51 per share to its shareholders, which represents a 5% increase over the total annual distributions to shareholders for 1995. -0-
(in thousands, except per share amounts)
9/30/96 Per share 12/31/95 Per share
------- --------- -------- ---------
Financial Position
Information
------------------
Total investments $ 128,020 -- $ 123,184 --
Total assets 161,544 -- 148,268 --
Common shareholders'
equity (NAV) 65,202 $ 9.28 51,181 $ 8.26
3 mos. ended 3 mos. ended
9/30/96 Per share 9/30/95 Per share
------- --------- ------- ---------
Operating Information
---------------------
Total investment
income $ 3,437 $ 0.49 $ 3,564 $ 0.58
Net investment
income $ 748 $ 0.11 $ 899 $ 0.14
Net realized gains 2,225 0.31 3,289 0.53
----- ---- ----- ----
Net realized income $ 2,973 $ 0.42 $ 4,188 $ 0.67
Net unrealized
apprec/(deprec) 2,732 0.38 (1,099) (0.18)
----- ---- ------- ------
Net income (a) $ 5,705 $ 0.80 $ 3,089 $ 0.49
===== ==== ===== ====
Actual shares
outstanding 7,026 -- 6,186 --
Weighted avg.
shares outstanding 7,055 -- 6,193 --
Distributions to
Shareholders
----------------
Regular quarterly
dividends -- $ 0.29 -- $ 0.22
9 mos. ended 9 mos. ended
9/30/96 Per share 9/30/95 Per share
------- --------- ------- ---------
Operating Information
---------------------
Total investment
income $ 11,492 $ 1.68 $ 10,342 $ 1.67
Net investment
income $ 3,107 $ 0.45 $ 2,284 $ 0.37
Net realized gains 8,376 1.23 3,584 0.58
----- ---- ----- ----
Net realized income $ 11,483 $ 1.68 $ 5,868 $ 0.95
Net unrealized
apprec/(deprec) (1,702) (0.25) 6,551 1.05
------- ------ ----- ----
Net income (a) $ 9,781 $ 1.41 $ 12,419 $ 1.97
===== ==== ====== ====
Weighted avg.
shares outstanding 6,839 -- 6,207 --
Distributions to
Shareholders
----------------
Regular quarterly
dividends -- $ 0.82 -- $ 0.62
(a) Net income has been reduced by preferred stock dividends for the
calculation of earnings per common share.
-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. , DC 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 7,026,013 total common shares outstanding. Allied Capital pays a regular quarterly dividend of 31 cents per share and an annual extra distribution which is determined at year end. For 1996, the company will pay a total of $1.51 per share. The company paid a total of $1.44 per share for 1995. The company paid 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 Corp., for the year ended Dec. 31, 1994. Allied Capital has paid regular quarterly distributions and an annual extra distribution since 1964. Allied Capital's stock is marginable. A recent quote of the stock was $15.50. For additional information, please contact Allied Capital's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department at 202/973-6383, fax to 202/659-2053, 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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