The Company had a net change in unrealized losses of $1.4 million. The net change consisted of $2.2 million of unrealized losses from investments and a deferred income tax benefit of $0.8 million.
The Company had an increase in net assets resulting from operations of $2.8 million. This increase was comprised of net investment income of $0.4 million; net realized gains of $3.8 million; and net unrealized losses of $1.4 million, as noted above.
RESULTS OF OPERATIONS – FISCAL YEAR ENDED NOVEMBER 30, 2012
Investment income totaled $10.8 million for the fiscal year and consisted primarily of net dividends and distributions and interest income on our debt investments. The Company received $21.8 million of dividends and distributions, of which $17.0 million was treated as a return of capital. Return of capital was increased by $1.5 million during the fiscal year due to 2011 tax reporting information that we received in fiscal 2012. Interest income was $6.0 million, of which $1.7 million was paid-in-kind interest from ProPetro. The Company received $0.9 million of paid-in-kind dividends during the year, which are not included in investment income, but are reflected as an unrealized gain and $1.8 million of non-cash distributions from VantaCore that is included in investment income.Operating expenses totaled $9.6 million, including $6.0 million of investment management fees; $2.3 million of interest expense and $1.3 million of other operating expenses. Interest expense included $0.4 million of amortization of debt issuance costs. The Company’s net investment income totaled $0.8 million and included a deferred income tax expense of $0.3 million and current income tax expense of $0.1 million. The Company had net realized gains from investments of $9.9 million, after taking into account a deferred income tax expense of $4.1 million and a current income tax expense of $1.5 million. The realized gains included a $4.5 million gain from the redemption of the Company’s Class D Preferred Unit investment in Direct Fuels.
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