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Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in our periodic reports filed with the Securities and Exchange Commission. Copies are available on the SEC's website at www.sec.gov. We disclaim any obligation to update our forward-looking statements unless required by law.An archive of this presentation will be available on our website and the telephone recording can be accessed through February 29 th by dialing 855-859-2056. The replay pass code is 41247892. To view the Q4 slide presentation that corresponds with this call, turn to our website at americancapital.com and click on the Q4 2011 Earnings Presentation link in the upper right-hand corner of the homepage. Select the Webcast option for both slides and audio or click on the link in the Conference Call section to view the streaming slide presentation during the call. Participating on today's call are Malon Wilkus, Chairman and Chief Executive Officer; John Erickson, President, Structured Finance and Chief Financial Officer; Gordon O'Brien, President, Specialty Finance and Operations; Sam Flax, Executive Vice President and General Counsel; Brian Graff, Senior Managing Director; Rich Konzmann, Senior Vice President, Accounting and Reporting; and Tom McHale, Senior Vice President, Finance. With that, I’ll turn the call over to Malon. Malon Wilkus Pete, thank so much, and thanks everybody for joining us. I hope yesterday you all spent some time with your sweethearts and you hopefully bought a lot of sweetheart candy, New England Candy Company, NECCO, is one of our portfolio company, and we always like our market and shareholder support for our portfolio companies. Let's turn to slide three, and I want to start off by saying, we had a very good year for 2011, even though it was quite volatile and the markets were very concerned about a possibly impending recession. Nonetheless, for the full year, we did extremely well. We did have a weak third quarter, but we certainly reversed that in the fourth quarter.
And so starting on slide three is, you see our fourth quarter where we had $0.67 in net operating income or $229 million. However, I do want to point that we had the benefit of reversing the allowance for the deferred tax benefit that we had booked, and we'll talk more about that in a couple of slides, and we'll I'm sure take a bunch of questions on that subject. So prior to the impact of the deferred tax benefit, we had $0.24 in diluted per share NOI or $84 million.For the fourth quarter, we had 10.7% effective yield on our debt assets and 4.3% weighted average cost of borrowings. For our earnings, we had $1.73, though that would be $0.48 before deferred tax benefit. And our NAV was $13.87, that is $1.95 per share increase or a $547 million increase from the third quarter 2011, and that's a 16% increase over the third quarter 2011, and that's in comparison to 11% increase for the S&P 500 financial sector. I wanted to point out the bottom of that side you see the $1.30 per share increase for NAV that would have occurred – that's attributable – I'm sorry I should $1.30 that would be attributable to the $428 million of its deferred tax benefit. You're going to see that on the next slide as well or slide four for all of 2011. And going there, we had $1.26 in NOI, $448 million that would be $0.85 or $303 million before the deferred tax benefit. We had $2.74 in net earnings or just shy of $1 billion, $974 million. For the full year in our net earnings it will be $546 million or $1.54 before the deferred tax benefit, again bringing our NAV to $13.87 at the end of the year, that's a 30% increase over 2010. And you'd see there again, the year was impacted by the $428 million impact of the deferred tax benefit. So our 30% increase in our book value compared favorably to the 17% decrease for the S&P 500 financial sector. Read the rest of this transcript for free on seekingalpha.com