(NYSE:KED) Kayne Anderson Energy Development Company (the “Company”) today announced its financial results for the quarter ended November 30, 2011.
RESULTS OF OPERATIONS – QUARTER ENDED NOVEMBER 30, 2011
- Net asset value: $23.01 per share; up 4.5% for the quarter and 11.9% for fiscal 2011
- Increased distribution by 2.6% to $0.39 per share in the fourth quarter; increased 30% in fiscal 2011
- Net investment income for fiscal 2011: $2.6 million
- Net realized gains for fiscal 2011: $49.4 million
- Net change in unrealized losses for fiscal 2011: $12.3 million
Investment income totaled $3.3 million and consisted primarily of net dividends and distributions and interest income. The Company received $4.8 million of cash dividends and distributions, of which $2.9 million was treated as a return of capital during the period. During the quarter, the Company received $1.4 million of interest income, of which $0.4 million was paid-in-kind interest from ProPetro Services, Inc. (“ProPetro”). The Company also received $0.6 million of paid-in-kind distributions, of which $0.4 million was from VantaCore Partners LP (“VantaCore”). These paid-in-kind distributions are not included in investment income, but are reflected as an unrealized gain.
Operating expenses totaled $2.2 million, including $1.4 million of investment management fees; $0.5 million of interest expense and $0.3 million of other operating expenses. Interest expense included $0.1 million of amortization of debt issuance costs. Investment management fees were equal to an annual rate of 1.75% of average total assets.
The Company’s net investment income totaled $0.6 million and included a current income tax expense of $0.3 million and a deferred income tax expense of $0.2 million.
The Company had net realized losses from investments of $1.3 million, after taking into account a current income tax benefit of $0.3 million and a deferred income tax expense of $1.2 million.