The Company had a net change in unrealized gains from investments of $15.0 million. The net change consisted of $22.9 million of unrealized gains from investments and a deferred income tax expense of $7.9 million.
The Company had an increase in net assets resulting from operations of $14.3 million. This increase was composed of net investment income of $0.6 million; net realized losses of $1.3 million; and net unrealized gains of $15.0 million, as noted above.
RESULTS OF OPERATIONS – FISCAL YEAR ENDED NOVEMBER 30, 2011
Investment income totaled $13.1 million and consisted primarily of net dividends and distributions and interest income. The Company received $15.9 million of cash dividends and distributions, of which $8.2 million was treated as a return of capital during the period. During the third quarter of 2011, we received 2010 tax reporting information that was used to decrease our prior year return of capital estimate by a total of $1.1 million. During the year, the Company received $5.4 million of interest income, of which $1.4 million was paid-in-kind interest from ProPetro. The Company also received $4.1 million of paid-in-kind distributions, of which $2.2 million was from VantaCore and $1.4 million was from Direct Fuels Partners, L.P. (“Direct Fuels”). These paid-in-kind distributions are not included in investment income, but are reflected as an unrealized gain.Operating expenses totaled $9.0 million, including $5.4 million of investment management fees; $1.9 million of interest expense and $1.7 million of other operating expenses. Interest expense included $0.4 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 $2.6 million and included a current income tax expense of $1.0 million and a deferred income tax expense of $0.5 million. The Company had net realized gains from investments of $49.4 million, after taking into account a current income tax expense of $20.1 million and a deferred income tax expense of $8.8 million.
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