The Company had net realized gains from its investments of $7.6 million, net of $4.4 million of deferred income tax expense.

The Company had net unrealized gains of $47.4 million. The net unrealized gain consisted of $74.8 million of unrealized gains from investments and a deferred income tax expense of $27.4 million. The majority of these gains are attributable to the Company’s investment in International Resource Partners LP (“IRP”) and its investments in public MLPs. During the fiscal year, the Company’s valuation for IRP appreciated by $53.3 million (a 154% increase) based on continued strong performance and increases in valuations for comparable coal companies.

The Company had an increase in net assets resulting from operations of $53.2 million. This increase is composed of a net investment loss of $1.8 million; net realized gains of $7.6 million; and net unrealized gains of $47.4 million, as noted above.


Investment income totaled $0.5 million and consisted primarily of interest income on the Company’s energy debt investments and net dividends and distributions. The Company received $2.8 million of cash dividends and distributions, of which $3.2 million was treated as a return of capital during the period. For the fourth quarter, the Company estimated the return of capital portion of the cash dividends and distributions received to be $2.2 million or 79%. As noted above, the Company’s return of capital for the fourth quarter of fiscal 2010 was increased by $1.0 million as a result of an adjustment the Company made to its return of capital estimate for fiscal 2009. The Company received $1.4 million of paid-in-kind dividends ($1.3 million from Direct Fuels), which are not included in investment income but are reflected as an unrealized gain.

Operating expenses totaled $2.0 million, including $1.2 million of investment management fees; $0.4 million of interest expense and $0.4 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.