Allied Capital Lending Corp. announces 1994 results -- 1994 net income increases 69%.WASHINGTON--(BUSINESS WIRE)--Feb. 21, 1995--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. (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 :ALCL ALCL Anaplastic Large Cell Lymphoma ALCL Assembly Line Communications Link ) announced 1994 results Tuesday Tuesday: see week. . For the year ended Dec. 31, 1994, net income was $4.5 million or $1.04 per share as compared to $2.7 million for the year ended Dec. 31, 1993, a 69% increase (see footnote Text that appears at the bottom of a page that adds explanation. It is often used to give credit to the source of information. When accumulated and printed at the end of a document, they are called "endnotes." below). Net income, which includes ordinary investment income, 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. and losses, and unrealized appreciation and depreciation in the portfolio, increased primarily due to continued growth in the company's portfolio of loans to small businesses. Total quarterly dividends and the annual extra dividend from 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. for the year were $1.08 per share, resulting in an effective yield to shareholders of 10.4% using the Dec. 30, 1994 market price. For the fourth quarter of 1994, net income was $1.1 million or 26 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. as compared to $.4 million or 14 cents per share for the fourth quarter of 1993, a 146% increase. During the fourth quarter, Allied Capital Lending Corp. originated loans totalling approximately $14 million, and sold loans into the secondary market totalling $11 million. In 1994, the company originated approximately $44 million of new loans, a 44% increase over new loans of approximately $30 million in 1993. Net of repayments and changes in portfolio valuations, the company increased its total loans to small businesses by $11 million or 50% during the year. This solid increase in investment activity will result in improved investment income in future years, as the company has made significant progress during the year in decreasing the level of cash and low-yielding government securities in the portfolio, and replacing those investments with high-yielding loans to growing small businesses. At Dec. 31, 1994, investments in small businesses totaled 87% of the company's total assets, as compared to 62% at Dec. 31, 1993. Additionally, at Dec. 31, 1994, the company had a backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of loans to small businesses totalling approximately $50 million. During the fourth quarter of 1994, Allied Capital Lending Corp. expanded its network of loan generators by adding two new Regional Associates in Minneapolis Minneapolis (mĭn'ēăp`əlĭs), city (1990 pop. 368,383), seat of Hennepin co., E Minn., at the head of navigation on the Mississippi River, at St. Anthony Falls; inc. 1856. and Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. . The company now has fourteen Regional Associates, and expects to add more during 1995. -0-
(in thousands) 12 mos. ended 12 mos. ended
12/31/94 Per share 12/31/93 Per share (a)
Financial Position Information ------------------ Total investments $32,771 -- $21,793 -- Total assets 37,619 -- 34,953 -- Shareholders' equity (NAV) 32,788 $ 7.50 32,955 $ 7.54 Operating Information --------------------- Net investment income $ 4,878 $ 1.12 $ 2,944 $ 1.14 Net realized gains (losses) (295) (0.07) (338) (0.13) Net realized income 4,583 1.05 2,606 1.01 Net unrealized apprec (deprec) (52) (0.01) 68 0.02 Net income $ 4,531 $ 1.04 $ 2,674 $ 1.03 Actual shares outstanding 4,370 -- 4,368 -- Weighted avg. shares outstanding 4,368 -- 2,587(a) --
(in thousands) 12 mos. ended 12 mos ended
12/31/94 Per share 12/31/93 Per share (a)
Distributions to Shareholders ------------------ Regular dividends -- $ 1.02 -- $ 1.10 Extra distribution -- 0.06 -- 0.00 Total distributions -- $ 1.08 -- $ 1.10
(in thousands) 3 mos. ended 3 mos ended
12/31/94 Per share 12/31/93 Per share (a)
Financial Position Information ------------------ Total investments $32,771 -- $21,793 -- Total assets 37,619 -- 34,953 -- Shareholders' equity (NAV) 32,788 $ 7.50 32,955 $ 7.54 Operating Information --------------------- Net investment income $ 1,550 $ 0.35 $ 477 $ 0.14 Net realized gains (losses) (279) (0.06) (169) (0.05) Net realized income 1,271 0.29 308 0.09 Net unrealized apprec (deprec) (131) (0.03) 155 0.05 Net income $ 1,140 $ 0.26 $ 463 $ 0.14 Actual shares outstanding 4,370 -- 4,368 -- Weighted avg. shares outstanding 4,368 -- 3,338 -- Distributions to Shareholders ---------------- Regular dividends -- $ 0.27 -- $ 0.08 Extra distribution -- 0.06 -- 0.00 Total distributions -- $ 0.33 -- $ 0.08 -0- (a) Note that 1993 per share information is not comparable. The company completed an initial public offering of common shares in November November: see month. , 1993, increasing common shares outstanding from 2,380,000 to 4,368,420. Prior to the offering, the company was 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. of Allied Capital Corp. Dividends paid in 1993 include $1.02 per share paid to Allied Capital Corp. prior to the initial public offering and 8 cents per share paid to shareholders from 1993 fourth quarter taxable income. -0- Allied Capital Lending Corp. is a publicly-traded small business lending 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 ALCL. A recent quote of the stock was $12.00. There are 4,370,795 total shares outstanding. Allied Capital Lending Corp. pays a regular quarterly cash dividend of 27 cents per share and for 1994 paid an annual extra cash distribution of 6 cents per share. For additional information or for 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 at 202/331-1112 or fax to 202/659-2053. CONTACT: Allied Capital, Washington Suzanne Sparrow, 202/331-1112 |
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