(NYSE:KED) Kayne Anderson Energy Development Company (the “Company”) today announced its financial results for the quarter ended August 31, 2012.
- Net asset value: $23.90 per share; up $1.22 per share for the quarter (5.4% increase)
- The Company increased its distribution to $0.43 per share (4.9% increase over prior quarter)
- Net investment loss: $0.4 million
- Net realized gains: $1.3 million
- Net unrealized gains: $16.0 million
RESULTS OF OPERATIONS – QUARTER ENDED AUGUST 31, 2012
Investment income totaled $1.8 million for the quarter and consisted primarily of net dividends and distributions and interest income. The Company received $5.1 million of cash dividends and distributions, of which $4.9 million was treated as a return of capital during the period. Return of capital was increased by $1.5 million during the quarter due to 2011 tax reporting information that was received in fiscal 2012. Of this amount, $1.0 million related to the Company’s private investments, and $0.5 million related to its public investments. During the quarter, the Company received $1.6 million of interest income, of which $0.4 million was paid-in-kind interest from ProPetro Services, Inc. (“ProPetro”). The Company also received $0.6 million of paid-in-kind distributions, of which $0.3 million was from VantaCore Partners LP (“VantaCore”). These paid-in-kind distributions are not included in investment income, but are reflected as an unrealized gain.Operating expenses totaled $2.4 million, including $1.5 million of investment management fees; $0.6 million of interest expense and $0.3 million of other operating expenses. Interest expense included $0.1 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 loss totaled $0.4 million and included a deferred income tax benefit of $0.3 million and current income tax expense of $0.02 million.