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BlackRock Kelso Capital Corporation Generates Net Investment Income Adjusted For Pro-Forma Incentive Management Fees Of $0.27 Per Share And $1.08 Per Share For The Three Months And Year Ended December 31, 2012

Stocks in this article: BKCC

Share Repurchase Plan

In 2008, our Board of Directors approved a share repurchase plan under which we may repurchase up to 2.5% of our outstanding shares of common stock from time to time in open market or privately negotiated transactions. In 2009, our Board of Directors approved an extension and increase to the plan which authorized us to repurchase up to an additional 2.5% of our outstanding shares of common stock. In May 2012, the repurchase plan was further extended through June 30, 2013, with 1,331,143 shares remaining authorized for repurchase. There were no purchases under the plan during the three months and year ended December 31, 2012. Since inception of the repurchase plan through December 31, 2012, we have purchased 1,425,507 shares of our common stock on the open market for $9.5 million, including brokerage commissions.

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that from time to time we may purchase shares of our common stock in the open market at prevailing market prices.

Conference Call

BlackRock Kelso Capital will host a webcast/teleconference at 4:30 p.m. (Eastern Time) on Thursday, March 7, 2013 to discuss its fourth quarter and full year 2012 financial results. All interested parties are welcome to participate. You can access the teleconference by dialing, from the United States, (800) 374-0176, or from outside the United States, (706) 679-3431, shortly before 4:30 p.m. and referencing the BlackRock Kelso Capital Corporation Conference Call (ID Number 73865774). A live, listen-only webcast will also be available via the investor relations section of www.blackrockkelso.com.

Both the teleconference and webcast will be available for replay by 6:30 p.m. on Thursday, March 7, 2013 and ending at midnight on Thursday, March 14, 2013. To access the replay of the teleconference, callers from the United States should dial (855) 859-2056 and callers from outside the United States should dial (404) 537-3406 and enter the Conference ID Number 73865774. To access the webcast, please visit the investor relations section of www.blackrockkelso.com.

PRIOR TO THE WEBCAST/TELECONFERENCE, AN INVESTOR PRESENTATION THAT COMPLEMENTS THE EARNINGS CONFERENCE CALL WILL BE POSTED TO BLACKROCK KELSO CAPITAL’S WEBSITE WITHIN THE PRESENTATIONS SECTION OF THE INVESTOR RELATIONS PAGE ( http://www.blackrockkelso.com/InvestorRelations/Presentations/index.htm).

           
BlackRock Kelso Capital Corporation
Consolidated Statements of Assets and Liabilities
(Unaudited)
 
December 31, 2012 December 31, 2011
Assets
Investments at fair value:
Non-controlled, non-affiliated investments (cost of $849,028,227 and $959,635,127) $ 850,511,125 $ 890,691,404
Non-controlled, affiliated investments (cost of $50,983,674 and $59,633,913) 67,750,172 71,035,799
Controlled investments (cost of $137,337,392 and $78,601,629)   143,336,244     87,225,239  
 
Total investments at fair value (cost of $1,037,349,293 and $1,097,870,669) 1,061,597,541 1,048,952,442
Cash and cash equivalents 9,122,141 7,478,904
Cash denominated in foreign currencies (cost of $0 and $300,380) 300,089
Unrealized appreciation on forward foreign currency contracts 369,417
Receivable for investments sold 504,996 2,734,705
Interest receivable 14,048,248 16,474,871
Dividends receivable 8,493,799
Prepaid expenses and other assets   4,375,527     6,740,517  
 
Total Assets $ 1,090,017,870   $ 1,091,175,327  
 
Liabilities
Payable for investments purchased $ 440,243 $ 421,597
Unrealized depreciation on forward foreign currency contracts 1,106,241
Debt 346,850,000 343,000,000
Interest payable 5,277,132 5,592,184
Dividend distributions payable 19,196,418 19,040,586
Base management fees payable 5,626,893 5,293,755
Incentive management fees payable 20,277,930 11,878,159
Accrued administrative services 277,000 144,625
Other accrued expenses and payables   4,692,562     3,689,331  
 
Total Liabilities   402,638,178     390,166,478  
 
Net Assets

Common stock, par value $.001 per share, 200,000,000 common shares authorized,

75,257,888 and 74,636,091 issued and 73,832,381 and 73,210,584 outstanding

75,258 74,636
Paid-in capital in excess of par 917,534,577 983,082,373
Distributions in excess of net investment income (22,291,022 ) (26,165,703 )
Accumulated net realized loss (219,270,607 ) (194,505,823 )
Net unrealized appreciation (depreciation) 20,808,162 (51,999,958 )
Treasury stock at cost, 1,425,507 and 1,425,507 shares held   (9,476,676 )   (9,476,676 )
 
Total Net Assets   687,379,692     701,008,849  
 
Total Liabilities and Net Assets $ 1,090,017,870     1,091,175,327  
 
Net Asset Value Per Share $ 9.31 $ 9.58
 
                   

 

 

 

Three months

Three months

 

 

BlackRock Kelso Capital Corporation

ended

ended

Year ended

Year ended

Consolidated Statements of Operations (Unaudited)

December 31, 2012

December 31, 2011

December 31, 2012

December 31, 2011

Investment Income:
Interest income:

Non-controlled, non-affiliated investments

$

26,994,492

$

24,916,323

$

108,797,089

$

92,138,658

Non-controlled, affiliated investments 911,860 1,612,891 4,965,190 5,122,152
Controlled investments   3,065,887     3,259,758     9,567,654     8,211,274  
 
Total interest income 30,972,239 29,788,972 123,329,933 105,472,084
Fee income:
Non-controlled, non-affiliated investments 4,337,447 5,272,164 19,794,762 21,054,066
Non-controlled, affiliated investments 216,456 735,708 762,570
Controlled investments   57,522     39,677     193,692     157,415  
 
Total fee income   4,394,969     5,528,297     20,724,162     21,974,051  
 
Dividend income:
Non-controlled, non-affiliated investments 30,344 649,428 736,501 2,928,196
Non-controlled, affiliated investments 2,500,000 21,899 2,500,000 1,128,207
Controlled investments                
 
Total dividend income   2,530,344     671,327     3,236,501     4,056,403  
 
Total investment income   37,897,552     35,988,596     147,290,596     131,502,538  
 
Expenses:
Base management fees 5,626,892 5,293,755 22,504,433 19,841,258
Incentive management fees 17,314,127 11,878,159 22,491,789 11,878,159
Interest and credit facility fees 4,689,102 4,658,465 19,606,951 16,561,095
Amortization of debt issuance costs 634,679 628,558 2,524,915 2,499,742
Investment advisor expenses 626,996 603,284 1,991,416 1,779,734
Professional fees 148,427 560,174 1,229,009 1,905,782
Administrative services 111,951 307,633 528,559 1,173,754
Director fees 120,500 108,295 467,563 417,564
Other   309,067     651,964     2,284,429     2,566,659  
 
Total expenses   29,581,741     24,690,287     73,629,064     58,623,747  
 
Net investment income before excise taxes 8,315,811 11,298,309 73,661,532 72,878,791
Excise tax expense                
 
Net Investment Income   8,315,811     11,298,309     73,661,532     72,878,791  
 
Realized and Unrealized Gain (Loss):
Net realized gain (loss):
Non-controlled, non-affiliated investments 3,547 (1,241,275 ) (75,336,460 ) (38,314,683 )
Non-controlled, affiliated investments 99,525 6,052 2,223,371 (4,886,347 )
Controlled investments (14,819,901 ) (7,923,526 ) (14,819,901 ) (7,901,154 )
Foreign currency   (967,726 )   1,704,988     (1,185,429 )   1,208,808  
 
Net realized gain (loss)   (15,684,555 )   (7,453,761 )   (89,118,419 )   (49,893,376 )
 
Net change in unrealized appreciation or depreciation on:
Non-controlled, non-affiliated investments (4,342,245 ) 294,204 72,727,614 44,577,066
Non-controlled, affiliated investments 3,280,090 4,586,662 9,580,694 15,033,972
Controlled investments 9,031,808 633,029 (10,972,967 ) (4,915,504 )
Foreign currency translation   1,140,833     (2,308,686 )   1,472,779     (760,440 )
 
Net change in unrealized appreciation or depreciation   9,110,486    

3,205,209

    72,808,120     53,935,094  
 
Net realized and unrealized gain (loss)   (6,574,069 )   (4,248,552 )   (16,310,299 )   4,041,718  
 
Net Increase in Net Assets Resulting from Operations $ 1,741,742   $ 7,049,757   $ 57,351,233   $ 76,920,509  
 
Net Investment Income Per Share $ 0.11   $ 0.15   $ 1.00   $ 1.00  
 
Earnings Per Share $ 0.02   $ 0.10   $ 0.78   $ 1.05  
 
Basic and Diluted Weighted-Average Shares Outstanding 73,829,397 73,248,862 73,623,983 73,037,357
Dividends Declared Per Share $ 0.26 $ 0.26 $ 1.04 $ 1.10
 

The Company reports its financial results on a GAAP basis; however, management believes that evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP basis financial measures. Management reviews non-GAAP financial measures to assess ongoing operations and, for the reasons described below, considers them to be effective indicators, for both management and investors, of the Company’s financial performance over time. The Company’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

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