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KCAP Financial, Inc. Announces Third Quarter 2013 Financial Results

Stocks in this article: KCAP

NEW YORK, Nov. 7, 2013 (GLOBE NEWSWIRE) -- KCAP Financial, Inc. (Nasdaq:KCAP) announces its third quarter 2013 financial results.

Financial Highlights

  • Net investment income for the three months ended September 30, 2013 was approximately $7.6 million, or $0.23 per share.  
  • KCAP Financial, Inc. declared a third quarter dividend of $0.25 per share.  
  • At September 30, 2013, the fair value of KCAP's investments totaled approximately $440.5 million.  
  • Net asset value per share of $7.96 as of September 30, 2013.

Dayl Pearson, President and Chief Executive Officer of KCAP Financial Inc., noted, "While the credit markets continue to be relatively aggressive, we are nonetheless pleased with our results, especially the upward trajectory of net investment income, resulting in part from investing the excess cash we had on hand last quarter."

Operating Results

For the three months ended September 30, 2013, we reported total investment income of approximately $12.6 million, as compared to approximately $10.4 million, in the prior year period, an increase of 22%. Investment income from debt securities increased 4% to approximately $3.7 million from approximately $3.6 million. Dividends from investments in CLO fund securities decreased 7% from $5.8 million to $5.4 million, and dividends from our Asset Manager Affiliates increased 259% from $925,000 to $3.3 million. The decrease in CLO dividends is attributable to the acceleration of pre-payments in existing CLO funds that are past their reinvestment period, while the increase in dividends from the Asset Manager Affiliates is attributable to greater assets under management and incentive fees.

For the three months ended September 30, 2013, total expenses were higher by approximately $1.9 million as compared to the same period in 2012. This is primarily attributed to the increase in interest expense related to the average outstanding principal balance on our borrowings, and an increase in compensation and administrative fees.

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