This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

American Capital CEO Discusses Q3 2011 Results - Earnings Call Transcript

Stocks in this article: ACAS

In addition, another element of the frustration is that we had a great quarter in terms of net realized earnings of $0.28, $98 million in total. A lot of that was driven by the $93 million realized gain that we experienced on the sale of Value Plastics, a very fine portfolio company, and I'm very pleased with those kind of results.

But as you can see, we had $1.34 in net loss, overall $464 million. That was driven by $562 million of unrealized depreciation, and that's primarily caused by depreciation at European Capital, two different Sponsor Finance loans, and at our asset management company, American Capital LLC. And I'll talk more about those in a minute. So our NAV is at $11.92. That's a 9% climb from the second quarter.

Moving to Slide 4 to talk about our $4 billion of value in our Private Finance portfolio, starting with our One Stop Buyouts, we had $100 million of net unrealized depreciation driven primarily by multiple reductions and offset by moderately positive aggregate adjusted EBITDA and sales growth.

So though we're experiencing in the last three months from a portfolio of companies, a nice growth. The fact of the matter is at the end of the quarter when the world was concerned with downgraded U.S. debt and with the sovereign debt problems in Europe that the world was struggling over, it caused values to drop and you can see the impact here on our One Stop Buyouts.

By the way, we are breaking out in our static pool analysis an additional data on our One Stop Buyouts, and you could see there in the back the presentation of $3 billion of aggregate total sales in our company and a total of $700 million of aggregate adjusted EBITDA. And we have about 48,000 employees in these companies.

3 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs