This Day On The Street
Continue to site
ADVERTISEMENT
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

American Capital's CEO Discusses Q2 2012 Results - Earnings Call Transcript

American Capital LLC, our asset management company, at 806 million of fair market value, is now our largest portfolio company investment. After successfully serving the shareholders of American Capital Agency, and American Capital Mortgage by generating some of the highest returns in their industry, we helped raise a combined 644 million of equity for these two funds in the second quarter. We are pleased that we were able to grow our existing funds under management and look forward to increase the number of her funds under management overtime.

In addition, our portfolio companies, both in the U.S. and Europe experienced moderate revenue and EBITDA growth year-over-year. Our U.S. portfolio experienced unrealized appreciation and notably, European Capital’s euro denominated NAV held steady.

Our investment in European Capital was mostly impacted by a decline in the stock price to NAV of comparable public companies and negative foreign currency movements. So overall, we are pleased with portfolio company performance despite Europe’s troubles.

Our capital management strategies are also driving shareholder value. Over the past year we have repurchased 9% of our shares which has contributed $0.65 of accretion to our NAV per share. We remain committed to stock repurchase and dividend program and closing the discount to our NAV per share.

Additionally, our strategies have contributed – our tax strategies have contributed $1.70 to our NAV per share, $0.46 per share in the last quarter alone. Lastly, our cash management and debt reduction efforts have allowed us to continue to delever and derisk our balance sheet, improving the potential to refinance and lower our cost of debt and improve on its terms.

Many of you are aware of our recent 8-K filing concerning two potential new debt facilities and unfortunately, securities laws prevent us from commenting further on that announcement. Hopefully, these comments give a more wholesome picture of the American Capital’s performance in the second quarter.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs