|Record Date||Payment Date||Per Share Amount|
|July 31, 2012||August 15, 2012||$0.077|
|August 31, 2012||September 14, 2012||$0.077|
|September 28, 2012||October 15, 2012||$0.077|
Financial Highlights for the Third Quarter of Fiscal 2012
- Net asset value was $8.94 per share at March 31, 2012.
- Weighted average portfolio interest rate was 12.98% at March 31, 2012 compared to 13.04% at December 31, 2011.
- Total investment income was $2.4 million, including fee income from structuring fees and other sources of $0.2 million.
- Net investment income was $1.1 million, or $0.18 per share.
- Net increase in net assets resulting from operations was $1.5 million, or $0.25 per share.
- Total portfolio investments at March 31, 2012 were $66.1 million (excluding U.S. treasury bills of $30.0 million), compared to $64.6 million (excluding U.S. treasury bills of $32.5 million) at December 31, 2011.
- The Company funded $1.4 million to existing borrowers, funded $0.6 million in one new investment and received a $0.5 million repayment from one borrower.
- At March 31, 2012, excluding U.S. Treasury bills, 92% of investments were first lien senior secured loans.
- At March 31, 2012, debt outstanding was $15.8 million consisting of $12.4 million drawn under the Company’s $35.0 million senior credit facility and $3.4 million under its senior unsecured notes.
- Full Circle paid monthly distributions of $0.077 per share on February 15, 2012 and March 15, 2012 and April 13, 2012.
- Per share amounts for the quarter ended March 31, 2012 are based on approximately 6.2 million weighted average shares outstanding.
On May 8, 2012 the Company invested $5.0 million in a senior secured loan bearing interest at 12.00% to Employment Plus, Inc. Employment Plus, Inc. provides temporary and permanent staffing services to the private sector across multiple industries.Taking into account the $9.25 million of new loan funding subsequent to March 31, 2012, valued at cost and not fair value (which has not yet been determined), the Company’s portfolio assets on a pro forma basis total approximately $75.4 million at May 9, 2012. Management Commentary “With the two new loan originations, totaling $9.25 million, which closed subsequent to March 31, 2012, our loan portfolio has reached its highest level since our IPO in August 2010. With these added investments we are moving closer to full deployment at current liquidity levels, which we expect will result in higher investment income from the larger portfolio,” said John Stuart, chairman and chief executive officer of Full Circle Capital Corp. “We continue to move forward on opportunities in our transaction pipeline. Demand for our flexible uni-tranche lending solutions in our target market of lower middle and smaller market companies remains strong.” “Our investing strategy – to invest in first lien senior secured loans to smaller and lower middle-market companies with a significant level of risk protection and a desirable yield - is reflected in our portfolio metrics. 92% of our portfolio consists of first lien senior secured loans, which gives us the first call on a borrower’s collateral. We remain well positioned for an eventual rise in interest rates with floating rate loans accounting for 91% of the portfolio, which we believe is in the top tier of the BDC universe. In addition, the yield on our loan portfolio remains approximately 13%.” Third Quarter Fiscal 2012 Results The Company’s net asset value at March 31, 2012 was $8.94 per share. For the third fiscal quarter ended March 31, 2012, the Company recorded net unrealized appreciation of $0.4 million resulting primarily from fair value adjustments.
The Company generated $2.2 million of interest income during the period, of which 100% was paid in cash. Fee income from structuring fees and other sources totaled $0.2 million. The Company recorded net investment income of $1.1 million, or $0.18 per share, and a net increase in net assets resulting from operations of $1.5 million, or $0.25 per share.During the quarter, the Company funded $1.4 million to existing borrowers, funded $0.6 million in one new investment and received a $0.5 million repayment from one borrower. At March 31, 2012, the Company’s portfolio (excluding U.S. Treasury bills and money market funds) included investments in 17 companies, of which 14 were debt investments. The average portfolio company debt investment at March 31, 2012 was $4.7 million. The weighted average interest rate on investments was 12.98%. At fair value, 92% of portfolio investments were first lien loans, 5% were second lien loans and 3% were equity investments. Approximately 91% of the debt investment portfolio, at fair value, bore interest at floating rates. The loan-to-value ratio on the Company’s loans was 61% at March 31, 2012 compared to 63% at December 31, 2011. Conference Call Details Management will host a conference call to discuss these results on Friday, May 11, 2012 at 10:00 a.m. EDT. To participate in the conference call, please call 866-305-6438 (domestic call-in) or 706-679-7161 (international call-in) and reference code # 78158604. A live webcast of the conference call and the accompanying slide presentation will be available at http://ir.fccapital.com/CorporateProfile.aspx?iid=4151676. All participants should call or access the website approximately 10 minutes before the conference begins. A telephone replay of the conference call will be available from 1:00 p.m. EDT on May 11, 2012 until 11:59 p.m. EDT on May 18, 2012 by calling 855-859-2056 (domestic) or 404-537-3406 (international) and entering confirmation # 78158604. An archived replay of the conference call and slide presentation will also be available in the investor relations section of the company’s website.
About Full Circle Capital CorporationFull Circle Capital Corporation ( www.fccapital.com) is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Full Circle lends to and invests in senior secured loans and, to a lesser extent, mezzanine loans and equity securities issued by smaller and lower middle-market companies that operate in a diverse range of industries. Full Circle’s investment objective is to generate both current income and capital appreciation through debt and equity investments. For additional information visit the company’s web site www.fccapital.com. Forward-Looking Statements This press release contains forward-looking statements which relate to future events or Full Circle's future performance or financial condition. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Full Circle's filings with the Securities and Exchange Commission. Full Circle undertakes no duty to update any forward-looking statements made herein.
|FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES|
|March 31, 2012||June 30, 2011|
|Control Investments at Fair Value (Cost of $7,383,672 and|
|Affiliate Investments at Fair Value (Cost of $430,500|
|and $7,174,348, respectively)||216,964||7,112,992|
|Non-Control/Non-Affiliate Investments at Fair Value (Cost of|
|$90,625,968 and $75,757,764, respectively)||88,487,587||74,838,241|
|Total Investments at Fair Value (Cost of $98,440,140 and|
|Deposit with Broker||3,050,000||2,657,859|
|Other Current Assets||23,931||212,961|
|Deferred Offering Expenses||23,237||-|
|Deferred Credit Facility Fees||50,000||50,000|
|Due to Affiliate||569,508||592,418|
|Due to Broker||30,000,050||25,999,632|
|Other Current Liabilities||1,035,880||412,171|
|Line of Credit||12,397,168||-|
|Components of Net Assets|
|Common Stock, par value $0.01 per share|
|(100,000,000 authorized; 6,219,382 issued|
|Paid-in Capital in Excess of Par||58,204,411||58,204,411|
|Distributions in Excess of Net Investment Income||(851,694)||(340,534)|
|Accumulated Net Realized Gains||471,521||344,482|
|Accumulated Net Unrealized Losses||(2,309,454)||(1,796,547)|
|Net Asset Value Per Share||$||8.94||$||9.08|
|FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES|
|CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)|
|Three Months Ended March 31,||Nine Months Ended March 31,|
|2012||2011 1||2012||2011 1|
|Interest Income from Affiliate Investments||-||441,640||234,864||772,674|
|Interest Income from Control Investments||228,456||-||483,100||-|
|Dividend Income from Affiliate Investments||-||-||-||210,833|
|Dividend Income from Control Investments||55,393||-||57,216||-|
|Other Income from Affiliate Investments||-||61,073||54,086||61,073|
|Other Income from Control Investments||26,389||-||131,389||-|
|Total Investment Income||2,388,960||2,305,423||7,345,868||5,851,202|
|Total Advisory Fees||569,507||598,806||1,802,433||1,497,681|
|Allocation of Overhead Expenses||89,211||90,270||264,103||210,630|
|Total Costs Incurred Under Administration Agreement||242,125||200,746||690,799||468,369|
|Professional Services Expense||121,301||89,080||435,980||209,205|
|Total Gross Operating Expenses||1,270,386||1,117,615||3,898,104||3,103,174|
|Management Fee Waiver and Expense Reimbursement||-||(173,827)||(313,792)||(415,515)|
|Total Net Operating Expenses||1,270,386||943,788||3,584,312||2,687,659|
|Net Investment Income||1,118,574||1,361,635||3,761,556||3,163,543|
|Net Change in Unrealized Gain (Loss) on Investments||404,773||(1,051,141)||(512,907)||(1,381,276)|
|Realized Gain on Investments||467||251,780||127,039||344,417|
|Net Increase in Net Assets Resulting from Operations||$||1,523,814||$||562,274||$||3,375,688||$||2,126,684|
|Net increase in net assets resulting from operations per common share||$||0.25||$||0.09||$||0.54||$||0.44|
|Net investment income per common share||$||0.18||$||0.22||$||0.60||$||0.66|
|Weighted average shares of common stock outstanding||6,219,382||6,215,047||6,219,382||4,820,864|
|1||Certain amounts have been reclassified to conform to the current period’s presentation|
|FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES|
|FINANCIAL HIGHLIGHTS (Unaudited)|
|Three months ended March 31, 2012||Three months ended March 31, 2011||Nine months ended March 31, 2012||For the period from August 31, 2010 (commencement of operations) to March 31, 2011|
|Per Share Data 1 :|
|Net asset value at beginning of period||$||8.92||$||9.32||$||9.08||$||9.40|
|Net investment income||0.18||0.22||0.61||0.52|
|Change in unrealized loss||0.07||(0.17||)||(0.08||)||(0.23||)|
|Net asset value at end of period||$||8.94||$||9.18||$||8.94||$||9.18|
|1||Financial highlights are based on average weighted shares outstanding.|