Kayne Anderson Energy Development Company Announces Results For The Quarter Ended February 28, 2010
(NYSE:KED) Kayne Anderson Energy Development Company (the “Company”) today announced its financial results for the quarter ended February 28, 2010.
RESULTS OF OPERATIONS – QUARTER ENDED FEBRUARY 28, 2010
Investment income totaled $1.4 million and consisted primarily of dividends from the Company’s MLP investments and interest income on its debt investments. The Company received $2.5 million of cash dividends and distributions, of which $2.1 million was treated as a return of capital during the period.The amount of investment income received by the Company during its fiscal first quarter is lower than previous quarters because the Company did not receive a cash distribution from its common and preferred investments in Direct Fuels Partners, L.P. (“Direct Fuels”). In lieu of a cash distribution on its common and preferred units, Direct Fuels is paying a distribution to such unitholders in additional preferred units. The preferred units being issued are a new series, senior to the existing preferred units. The $1.2 million preferred unit distribution accrued by the Company during the quarter is not included in investment income, but is included in the net change in unrealized gains. Operating expenses totaled $1.7 million, including $0.9 million of base investment management fees; $0.4 million for interest expense and $0.4 million for other operating expenses. Base investment management fees were equal to an annual rate of 1.75% of average total assets (excluding deferred tax assets). The Company’s net investment loss totaled $0.2 million and included a deferred income tax benefit of $0.1 million. The Company had net realized gains from its investments of $3.2 million, net of $1.9 million of deferred tax expense. During the quarter, the Company monetized several of its investments in publicly traded MLPs in an effort to generate realized gains. The Company engaged in this strategy in an effort to reduce its capital loss carryforwards with such realized gains.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV