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!

MCG Capital Corporation Reports Fourth Quarter 2011 And Annual Results And Distribution Of $0.17 Per Share

Stocks in this article: MCGC

MCG Capital Corporation (Nasdaq: MCGC) (“MCG” or the “Company”) announced today its financial results for the quarter and year ended December 31, 2011. MCG will host an investment community conference call today, March 1, 2012 at 10:00 a.m. (Eastern Time).


  • Distributable net operating income, or DNOI, for the quarter ended December 31, 2011 was $8.2 million, or $0.11 per share. DNOI for all of 2011 was $40.2 million, or $0.53 per share. DNOI refers to net operating income adjusted for amortization of employee restricted stock awards.
  • Net operating income, or NOI, for the quarter ended December 31, 2011 was $7.5 million, or $0.09 per share. NOI for the full year was $37.7 million, or $0.49 per share.
  • Net loss for the quarter ended December 31, 2011 was $49.0 million, or $0.64 per share. Net loss for the full year was $93.1 million, or $1.22 per share.
  • DNOI and NOI were reduced, and net loss per share increased, each on a per share basis by $0.04 for the quarter ended December 31, 2011 due to the August 2011 corporate restructuring costs, as well as, severance payments and other related costs in connection with the October 2011 departure of MCG’s former chief executive officer. For the full year, these costs reduced DNOI and NOI, and increased net loss, each on a per share basis by $0.09.
  • Net investment loss for the quarter ended December 31, 2011 was $56.4 million, which included an $18.3 million reduction in the fair value of Broadview Networks Holdings, Inc., or Broadview, primarily reflecting, among other factors, continuing challenges in the bond market, a downgrade of Broadview’s corporate credit rating, delays by Broadview in refinancing its debt, as well as the near-term maturities of Broadview’s debt facilities. Additionally, the Company recorded a $21.9 million reduction in the fair value of Jet Plastica Investors, LLC, or Jet Plastica, to reflect, among other factors, a continued decrease in its operating performance. Lastly, for the quarter ended December 31, 2011, the Company recorded an $11.7 million reduction in the fair value for Jenzabar, Inc. in connection with the negotiation of a discounted monetization of this investment in February 2012. Net investment loss for the year ended December 31, 2011 was $129.9 million.
  • During the quarter ended December 31, 2011, MCG funded $14.4 million of advances and originations, including $9.4 million to one new portfolio company. Payoffs and portfolio monetization activities totaled $41.3 million during the quarter.
  • MCG’s ratio of total assets to total borrowings and other senior securities was 244% as of December 31, 2011.


On February 24, 2012, the MCG board of directors declared a distribution of $0.17 per share. The distribution is payable as follows:

1 of 8

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 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

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