KCAP Financial, Inc. Announces Third Quarter 2016 Financial Results

NEW YORK, Nov. 02, 2016 (GLOBE NEWSWIRE) -- KCAP Financial, Inc. (Nasdaq:KCAP) (the "Company") announces its third quarter 2016 financial results.

Financial Highlights
  • Net investment income for the third quarter ended September 30, 2016 was approximately $4.5 million, or $0.12 per basic share, compared with approximately $6.5 million, or $0.18 per basic share in the quarter ended September 30, 2015. 
  • Taxable distributable income for the quarter was $0.12 per basic share. 
  • KCAP Financial, Inc. declared a third quarter shareholder distribution of $0.15 per share. 
  • At September 30, 2016, the fair value of KCAP's investments totaled approximately $372 million. 
  • Net asset value per share of $5.38 as of September 30, 2016, compared with $5.82 at December 31, 2015.

Dayl Pearson, President and Chief Executive Officer of KCAP Financial, Inc., noted, "Continued positive momentum in the markets has resulted in increased portfolio repayments, including the realization of an attractive gain on a warrant. This positions KCAP to prudently deploy the proceeds in a competitive market."

Operating Results

For the three months ended September 30, 2016, we reported total investment income of approximately $9.0 million compared to approximately $11.8 million in the same period last year, a decrease of 23%, which is primarily due to the deleveraging of our balance sheet. Investment income from debt securities decreased 18% to approximately $5.2 million from approximately $6.3 million in the third quarter of 2015. Investment income on CLO fund securities in the third quarter of 2016 decreased to $3.5 million from $3.9 million in 2015. Cash distributions from the Asset Manager Affiliates were $750,000 and $2.3 million for the three month periods ended September 30, 2016 and 2015, respectively. None of the third quarter 2016 distribution from the Asset Manager Affiliates is estimated to be a taxable dividend, whereas the estimate of the taxable portion of the distributions in the third quarter of 2015 was approximately $1.5 million and reflected as Dividends from Asset Manager Affiliates in the Statement of Operations.

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