INCOME TAX PAYMENTS
As of August 31, 2011, the Company has increased its estimated income tax payments for 2011 by $2.1 million from its estimate as of May 31, 2011 (from $19.0 million to $21.2 million), principally due to additional realized gains generated during the third quarter. The Company paid $14.1 million in such taxes during August and will pay the remaining $7.1 million in November. The Company anticipates funding such payment with the sale of portfolio securities.
The Company estimates its portfolio will generate dividends, distributions, and interest income of approximately $6.6 million in the next quarter. The Company’s guidance is pro forma for the $7.1 million tax payments mentioned above. For the purpose of providing guidance, the Company has assumed that the payment will be funded through the sale of traded debt securities in its portfolio. This estimate includes a cash distribution of $0.45/quarter per common unit that Direct Fuels is expected to pay for the remainder of 2011 and $0.8 million per quarter ($0.475/quarter per common and Class A preferred units) from VantaCore. The Company expects that substantially all of the VantaCore distribution will be in the form of additional preferred units during the Company’s fourth fiscal quarter. The Company’s guidance does not reflect any changes in cash distributions made by MLPs or changes in interest rates based on the movement in LIBOR rates since August 31, 2011.
|Portfolio Category||AmountInvested($ in millions)||Average AnnualYield (1)(2)|
|Private MLPs (3)||$||65||14.4||%|
|Public MLPs, MLP Affiliates and Other Public Equity||175||7.0|
|Debt Investments (4)(5)||45||10.6|
|(1)||Average yields include return of capital distributions. Return of capital distributions are reported as a reduction to gross dividends and distributions to arrive at net investment income reported under generally accepted accounting principles.|
|(2)||Average yields for Public MLPs, MLP Affiliates and Other Public Equity are based on the most recently declared distributions as of August 31, 2011. Amounts invested for Private MLPs are based on August 31, 2011 valuations. Average yields reflect quarterly distributions of $0.45 per common unit for Direct Fuels and $0.475 per unit for VantaCore.|
|(3)||The amount invested excludes the Company’s equity investment in ProPetro (valued at $5.5 million as of August 31, 2011) which does not pay a dividend or distribution.|
|(4)||The average yield includes straight-line amortization of the purchase price discounts/premiums through the expected maturity.|
|(5)||The amount invested is pro forma for the sale of $7.1 million of traded debt securities to fund the November 2011 tax payments.|
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $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
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV