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MVC Capital, Inc. (NYSE: MVC), a publicly traded business development company that makes private equity and debt investments, today announced its financial results for the second fiscal quarter ended April 30, 2012.
As of April 30, 2012, the Company's net assets were approximately $406.3 million, or $16.99 per share, compared with net assets of approximately $407.6 million, or $17.04 per share, at the beginning of the quarter and $414.3 million, or $17.32 per share, at the end of the same period last year. During the quarter, the Valuation Committee, which is comprised of three independent directors, adjusted the fair values of nine portfolio companies, resulting in a net decrease of approximately $858,000 or $0.04 per share. In arriving at these determinations and consistent with the Company's valuation procedures and ASC 820, the Valuation Committee took into account many factors, including the performance of the portfolio companies, as well as the impact of changes in market multiples within certain sectors and fluctuations in currency valuations, particularly the Euro.
In the second quarter of 2012, the Company earned approximately $14.6 million in interest and dividend income and approximately $1.5 million in fee and other income, representing an increase in total operating income of approximately $11.6 million as compared to the same quarter in 2011. The primary reason for the increase in total operating income was a result of the recapitalization of Summit Research Labs, Inc. (“Summit”), which paid a $12 million dividend to the Company on March 7, 2012.
The Company reported net operating income of approximately $14.2 million for the second quarter, as compared to net operating income of approximately $65,000 for the same quarter in 2011. The Company continued to manage its ordinary operating expenses at comparable levels to last year. During the quarter, the Company made one follow-on investment in the amount of $48,000 in SHL Group LTD. During the six month period ended April 30, 2012, the Company made one new investment and five follow-on investments in three existing portfolio companies totaling approximately $7.4 million.