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: