American Capital Declares Extra 1999 Dividend of $0.03 Per Share.BETHESDA, Md.--(BUSINESS WIRE)--Dec. 16, 1999-- 1999 Dividend Increases 30% over 1998 Dividend American Capital (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 : ACAS ACAS Cardiology A clinical trial–Asymptomatic Carotid Atherosclerosis Study which evaluated the 5-yr risk of fatal and non-fatal stroke-primary outcome in Pts with asymptomatic but severe carotid atherosclerosis. See Carotid stenosis. ) announced today that its Board of Directors has declared a dividend on its common stock of $0.03 per share payable on January 11, 2000, to shareholders of record as of December 30, 1999. John Erickson, Chief Financial Officer of American Capital, said, "We are pleased to have been able to deliver a 30% dividend increase this year. As a Regulated Investment Company Regulated investment company An investment company allowed to pass capital gains, dividends, and interest earned on fund investments directly to its shareholders so that it is taxed only at the personal level, and double taxation is avoided. , American Capital is required to annually declare a dividend to distribute 98% of its 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. by December 31st to avoid paying an excise tax Excise Tax 1. An indirect tax charged on the sale of a particular good. 2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS. Notes: 1. . The Company estimates that the extra dividend of $0.03 per share is sufficient to prevent the Company from paying an excise tax." American Capital has paid four quarterly dividends in 1999 as set forth below. This extra dividend brings the total dividend to $1.74 per share.
1999 1998
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1st Quarter $ 0.41 $ 0.25
2nd Quarter $ 0.43 $ 0.29
3rd Quarter $ 0.43 $ 0.32
4th Quarter $ 0.44 $ 0.37
Extra $ 0.03 $ 0.11
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Total Dividend $ 1.74 $ 1.34
For more information on our dividends, visit our shareholder website at: http://acasonline.com/Divid/div_shr.html. American Capital is a publicly traded buyout and specialty finance company with capital resources exceeding $460 million. American Capital invests senior debt, 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 in businesses in need of capital for growth, acquisitions, ESOP ESOP See: Employee Stock Ownership Plan ESOP See Employee Stock Ownership Plan (ESOP). buyouts, management buyouts, Internet development, liquidity and restructurings. American Capital's portfolio company Capital.com provides receivable and inventory financing Inventory financing Used in the context of factoring and general finance to refer to loans to consumer product producers that use inventory as collateral. See also: Inventory loan. , machinery and equipment loans and leasing, real estate and construction financing, subordinated debt and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. and financing for growth, acquisitions, buyouts, ESOPs, Internet development, liquidity and restructurings. Capital.com offers owners and managers access to information and analysis previously available primarily through painstaking research and expensive intermediaries. The site enables users to learn about corporate finance, value their company, build financial models, develop financing memoranda, locate experienced financial professionals and, most critically, source the capital they need, when they need it. Companies interested in learning more about American Capital and our flexible financing should contact John Hoffmire, Vice President of Sales and Marketing, at (781) 862-4447, or visit our website at www.Capital.com. This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The statements regarding expected results of American Capital Strategies are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments. |
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