This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Kayne Anderson Energy Development Company Announces Results For The Quarter Ended May 31, 2010

(NYSE:KED) Kayne Anderson Energy Development Company (the “Company”) today announced its financial results for the quarter ended May 31, 2010.

HIGHLIGHTS

  • The Company announced a quarterly distribution of $0.30 per share
  • Net asset value: $16.89 per share
  • Net investment loss: $0.4 million
  • Net realized gains: $3.3 million
  • Net unrealized loss: $1.3 million

RESULTS OF OPERATIONS – QUARTER ENDED MAY 31, 2010

Investment income totaled $1.3 million and consisted primarily of interest income on the Company’s energy debt investments and net dividends and distributions. The Company received $2.6 million of cash dividends and distributions, of which $2.2 million was treated as a return of capital during the period.

The amount of investment income received is lower than previous periods primarily because the Company did not receive a cash distribution from its common and preferred investments in Direct Fuels. In lieu of a cash distribution on the common and preferred units owned by the Company, Direct Fuels paid a distribution on such units in additional preferred units. The additional preferred units are senior to the existing convertible preferred units. The Company received $1.2 million of preferred unit distributions, which is not included in investment income but is reflected as an unrealized gain.

Operating expenses totaled $1.9 million, including $0.9 million of base investment management fees; $0.5 million for interest expense (including $0.2 million of amortization of debt issuance costs) and $0.5 million for other operating expenses. Base investment management fees were equal to an annual rate of 1.75% of average total assets.

The Company’s net investment loss totaled $0.4 million and included a deferred income tax benefit of $0.2 million.

The Company had net realized gains from its investments of $3.3 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 utilize its capital loss carryforwards.

1 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
KED $29.89 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs