|Record Date||Payment Date||Per Share Amount|
|October 31, 2012||November 15, 2012||$0.077|
|November 30, 2012||December 14, 2012||$0.077|
|December 31, 2012||January 15, 2013||$0.077|
Recent Portfolio ActivityOn September 7, 2012 the Company funded $3.0 million of a $3.25 million senior secured credit facility bearing interest at LIBOR plus 12.25% to Global Energy Efficiency Holdings Inc. (“GEE”). GEE provides energy efficiency products, installation and maintenance services to small and medium sized businesses in multiple food sales and service industries. Financial Highlights for the Fourth Quarter of Fiscal 2012
- Net asset value was $8.59 per share at June 30, 2012.
- Weighted average portfolio interest rate was 12.93% at June 30, 2012 compared to 12.98% at March 31, 2012.
- Total investment income was $2.5 million, including fee income from structuring fees and other sources of $0.1 million.
- Net investment income was $1.1 million, or $0.17 per share.
- Net decrease in net assets from operations was $(0.7) million, or $(0.11) per share, resulting from net realized losses of $(0.3) million, or $(0.05) per share, and unrealized losses of $(1.5) million, or $(0.23) per share.
- Total portfolio investments at June 30, 2012 were $72.3 million (excluding U.S. treasury bills of $22.5 million), compared to $66.1 million (excluding U.S. treasury bills of $30.0 million) at March 31, 2012.
- New originations totaled $9.25 million to two companies consisting of new facilities of $4.25 million to Matt Martin Real Estate Management, LLC and $5.0 million to Employment Plus, Inc.
- At June 30, 2012, excluding U.S. Treasury bills, 93% of investments were first lien senior secured loans.
- At June 30, 2012, debt outstanding was $21.9 million consisting of $18.5 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 May 15, 2012, June 15, 2012 and July 13, 2012.
- Per share amounts for the quarter ended June 30, 2012 are based on approximately 6.2 million weighted average shares outstanding.
“Our investment 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 supports consistently strong portfolio metrics. First lien senior secured loans comprise 93% of our portfolio supported by a strong loan-to-value ratio of 62%. The yield on the portfolio remains approximately 13%. Floating rate loans account for 92% of our portfolio, which we believe to be among the top tier of the BDC universe, positioning us well for any eventual rise in interest rates.”Fourth Quarter Fiscal 2012 Results The Company’s net asset value at June 30, 2012 was $8.59 per share. For the fourth fiscal quarter ended June 30, 2012, the Company recorded net unrealized depreciation of $1.5 million resulting primarily from fair value adjustments. The Company generated $2.4 million of interest income during the period, of which 100% was paid in cash. Fee income from structuring fees and other sources totaled $0.1 million. The Company recorded net investment income of $1.1 million, or $0.17 per share, and a net decrease in net assets resulting from operations of $(0.7) million, or $(0.11) per share, resulting from net realized losses of $(0.3) million, or $(0.05) per share, and unrealized losses of $(1.5) million, or $(0.23) per share. During the quarter, the Company originated 2 new loan facilities for $9.25 million, all of which was funded at closing. Repayments and amortization of principal under existing loan facilities and loan and investment realizations totaled $1.4 million. At June 30, 2012, the Company’s portfolio (excluding U.S. Treasury bills and money market funds) included investments in 19 companies, of which 16 were debt investments. The average portfolio company debt investment at June 30, 2012 was $4.6 million. The weighted average interest rate on investments was 12.93%. At fair value, 93% of portfolio investments were first lien loans, 5% were second lien loans and 2% were equity investments. Approximately 92% of the debt investment portfolio, at fair value, bore interest at floating rates. The loan-to-value ratio on the Company’s loans was 62% at June 30, 2012 compared to 61% at March 31, 2012.
Conference Call DetailsManagement will host a conference call to discuss these results on Friday, September 14, 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 # 26516532. 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. ET on September 14 until 11:59 p.m. ET on September 21, 2012 by calling 855-859-2056 (domestic) or 404-537-3406 (international) and entering confirmation # 26516532. 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 Corporation Full 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|
|June 30, 2012||June 30, 2011|
|Control Investments at Fair Value (Cost of $6,639,648 and $1,658,552, respectively)||$||6,777,511||$||842,884|
|Affiliate Investments at Fair Value (Cost of $6,802,017 and $7,174,348, respectively)||5,112,142||7,112,992|
|Investments at Fair Value (Cost of $85,181,617 and $75,757,764, respectively)||82,957,117||74,838,241|
|Total Investments at Fair Value (Cost of $98,623,282 and $84,590,664, respectively)||94,846,770||82,794,117|
|Deposit with Broker||2,350,000||2,657,859|
|Due from Portfolio Investment||11,140||-|
|Other Current Assets||25,499||212,961|
|Deferred Offering Expenses||67,685||-|
|Deferred Credit Facility Fees||50,000||50,000|
|Due to Affiliate||580,353||592,418|
|Due to Broker||22,500,041||25,999,632|
|Other Current Liabilities||140,458||412,171|
|Accrued Offering Expenses||19,697||-|
|Line of Credit||18,544,660||-|
|Components of Net Assets|
|Common Stock, par value $0.01 per share|
|(100,000,000 authorized; 6,219,382 and 100 issued|
|and outstanding, respectively)||$||62,194||$||62,194|
|Paid-in capital in excess of par||57,455,232||58,204,411|
|Distributions in excess of Net Investment Income||(122,763||)||(340,534||)|
|Accumulated Net Realized Gains (Losses)||(175,366||)||344,482|
|Accumulated Net Unrealized Losses||(3,776,512||)||(1,796,547||)|
|Net Asset Value Per Share||$||8.59||$||9.08|
|FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS|
|Three Months Ended June 30,||Year Ended June 30,||Period from April 16, 2010 (date of inception) to June 30, 2010|
|Interest Income from Affiliate Investments||969,071||352,486||1,203,935||1,125,160||-|
|Interest Income from Control Investments||225,754||-||708,854||-||-|
|Dividend Income from Affiliate Investments||-||-||-||210,833||-|
|Dividend Income from Control Investments||-||-||57,216||-||-|
|Other Income from Affiliate Investments||101,101||-||155,187||61,073||-|
|Other Income from Control Investments||12,500||-||143,889||-||-|
|Total Investment Income||2,481,143||2,108,435||9,827,011||7,959,637||-|
|Total Advisory Fees||581,998||602,042||2,384,431||2,099,723||-|
|Allocation of Overhead Expenses||52,070||90,270||316,173||300,900||-|
|Total Administration Fees||204,984||203,816||895,783||672,185||-|
|Professional Services Expense||189,121||90,861||625,101||300,066||-|
|Total Gross Operating Expenses||1,409,196||1,069,392||5,307,300||4,172,566||12,545|
|Management Fee Waiver and Expense Reimbursement||-||(131,793||)||(313,792||)||(547,308||)||-|
|Total Net Operating Expenses||1,409,196||937,599||4,993,508||3,625,258||12,545|
|Net Investment Income (Loss)||1,071,947||1,170,836||4,833,503||4,334,379||(12,545||)|
|Net Change in Unrealized Loss on Investments||(1,467,058||)||(415,271||)||(1,979,965||)||(1,796,547||)||-|
|Net Realized Gain (Loss) on Investments||(302,405||)||65||(175,366||)||344,482||-|
|Net Increase (Decrease) in Net Assets Resulting from Operations||$||(697,516||)||$||755,630||$||2,678,172||$||2,882,314||$||(12,545||)|
|Earnings (Loss) per Common Share Basic and Diluted||$||(0.11||)||$||0.12||$||0.43||$||0.56||$||(125.45||)|
|Weighted Average Shares of Common Stock Outstanding Basic and Diluted||6,219,382||6,219,382||6,219,382||5,152,573||100|
|FULL CIRCLE CAPITAL CORPORATION AND SUBSIDIARIES FINANCIAL HIGHLIGHTS|
|For the three months ended June 30, 2012||For the three months ended June 30, 2011||For the year ended June 30, 2012||For the period from August 31, 2010 (commencement of operations) to June 30, 2011||For the period from April 16, 2010 (date of inception) to June 30, 2010|
|Per Share Data (1) :|
|Net asset value at beginning of period||$||8.94||$||9.18||$||9.08||$||9.40||$||15.00||(2)|
|Net investment income (loss)||0.17||0.19||0.78||0.70||(125.45||)|
|Change in unrealized loss||(0.24||)||(0.07||)||(0.32||)||(0.29||)||-|
|Realized gain (loss)||(0.05||)||-||(0.03||)||0.06||-|
|Net asset value at end of period||$||8.59||$||9.08||$||8.59||$||9.08||$||(110.45||)|
|(1)||Financial highlights are based on average weighted shares outstanding.|
|(2)||For the period from April 16, 2010 (date of inception) to June 30, 2010, the net asset value at issuance was $15.00.|