Exhibit 99.1

 

Medley Capital Corporation Announces Fourth Quarter and Fiscal Year Ended September 30, 2014 Financial Results

 

New York, NY – December 8, 2014

 

Financial Results for the Quarter and Year Ended September 30, 2014

 

Fourth Quarter Highlights

 

·

Declared a dividend of $0.37 per share

·

Net investment income of $0.37 per share

·

Net income of $0.16 per share

·

Net asset value (NAV) of $12.43 per share

·

Gross investment originations of $299.4 million

·

Portfolio is 74% floating rate

 

Portfolio Investments

 

The total value of our investments was $1,245.5 million at September 30, 2014. During the quarter ended September 30, 2014, the Company originated $299.4 million of new investments and had $89.5 million of repayments resulting in net investment originations of $209.9 million. As of September 30, 2014, the Company had investments in securities of 79 portfolio companies with approximately 64.5% consisting of senior secured first lien investments, 28.8% consisting of senior secured second lien investments, 3.1% in unsecured debt, and 3.6% in equities / warrants. As of September 30, 2014, the weighted average yield based upon the cost basis of our portfolio investments, excluding cash and cash equivalents, was 12.6%.

 

Results of Operations: Three Months Ended September 30, 2014

 

For the three months ended September 30, 2014, the Company reported net investment income and net income of $0.37 and $0.16 per share, respectively, calculated based upon the weighted average shares outstanding. As of September 30, 2014, the Company’s NAV was $12.43 per share.

 

Investment Income

 

For the three months ended September 30, 2014, gross investment income was $38.3 million and consisted of $29.8 million of portfolio interest income and $8.5 million of other fee income.

 

Expenses

 

For the three months ended September 30, 2014, total expenses were $17.9 million and consisted of the following: base management fees of $5.3 million, incentive fees of $5.1 million, interest and financing expenses of $5.6 million, professional fees of $0.4 million, administrator expenses of $1.0 million, and other general and administrative related expenses of $0.5 million.

 

Net Investment Income

 

For the three months ended September 30, 2014, the Company reported net investment income of $20.4 million or $0.37 on a weighted average per share basis.

 

Net Realized and Unrealized Gains/Losses

 

For the three ended September 30, 2014, the Company reported a net realized loss of $531,160 and net unrealized depreciation, including the provision for income taxes on unrealized gain on investments, of $11.0 million.

 

Results of Operations: Year Ended September 30, 2014

 

The Company reported net investment income and net income of $1.58 per share and $1.10 per share, respectively, calculated based upon the weighted average shares outstanding, for the year ended September 30, 2014.

 

Investment Income

 

For the year ended September 30, 2014, gross investment income was $139.4 million and consisted of $110.3 million of portfolio interest income and $29.1 million of other fee income.

 

 

Expenses

 

For the year ended September 30, 2014, total expenses were $64.7 million and consisted of the following: base management fees of $17.7 million, incentive fees of $18.7 million, interest and financing expenses of $20.1 million, professional fees of $2.3 million, administrator expenses of $3.3 million, and other general and administrative related expenses of $2.6 million.

 

Net Investment Income

 

For the year ended September 30, 2014, the Company reported net investment income of $74.7 million, or $1.58 on a weighted average per share basis.

 

Net Realized and Unrealized Gains/Losses

 

For the year ended September 30, 2014, the Company reported net realized gains of $0.4 million and net unrealized depreciation, including the provision for income taxes on unrealized gain on investments, of $22.9 million.

 

Liquidity and Capital Resources

 

As of September 30, 2014, the Company had a cash balance of $36.7 million and $146.5 million of debt outstanding under its $346.0 million senior secured revolving credit facility.

 

As of September 30, 2014, the Company had $171.5 million of debt outstanding under its senior secured term loan credit facility, $100.0 million outstanding in SBA-guaranteed debentures, $40.0 million outstanding in aggregate principal amount of 7.125% senior notes due 2019 and $63.5 million outstanding in aggregate principal amount of 6.125% senior notes due 2023.

 

Dividend Declaration

 

On October 30, 2014, the Company’s board of directors declared a quarterly dividend of $0.37 per share payable on December 12, 2014 to holders of record as of November 26, 2014.

 

Webcast/Conference Call

 

The Company will host an earnings conference call and audio webcast at 10:00 a.m. (Eastern Time) on Tuesday, December 9, 2014.

 

All interested parties may participate in the conference call by dialing (866) 318-8615 approximately 5-10 minutes prior to the call, international callers should dial (617) 399-5134. Participants should reference Medley Capital Corporation and the participant passcode of 66985443 when prompted. Following the call you may access a replay of the event via audio webcast. This conference call will be broadcast live over the Internet and can be accessed by all interested parties through the Company's website, http://www.medleycapitalcorp.com. To listen to the live call, please go to the Company's website at least 15 minutes prior to the start of the call to register and download any necessary audio software. For those who are not able to listen to the live broadcast, a replay will be available shortly after the call on the Company's website.

 

 

Financial Statements

 

Medley Capital Corporation

 

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)

 

		As of
		September 30, 2014				September 30, 2013
ASSETS
Investments at fair value
Non-controlled/non-affiliated investments (amortized cost of $1,215,422 and $748,406, respectively)		$	1,185,859			$	740,097
Controlled investments (amortized cost of $39,890 and $0, respectively)			38,244				-
Affiliated investments (amortized cost of $19,943 and $9,284, respectively)			21,435				9,140
Total investments at fair value			1,245,538				749,237
Cash and cash equivalents			36,731				8,558
Interest receivable			13,096				9,608
Deferred financing costs, net			11,688				8,523
Fees receivable			1,930				-
Other assets			651				249
Receivable for dispositions and investments sold			14,290				-
Deferred offering costs			222				219
Total assets		$	1,324,146			$	776,393
LIABILITIES
Revolving credit facility payable		$	146,500			$	2,500
Term loan payable			171,500				120,000
Notes payable			103,500				103,500
SBA debentures payable			100,000				30,000
Payable for investments originated, purchased and participated			54,995				54
Management and incentive fees payable			10,445				6,900
Accounts payable and accrued expenses			2,330				1,305
Interest and fees payable			2,096				1,156
Administrator expenses payable			1,012				701
Deferred tax liability			1,592				-
Deferred revenue			265				256
Due to affiliate			40				82
Offering costs payable			14				105
Total liabilities		$	594,289			$	266,559
NET ASSETS
Common stock, par value $.001 per share, 100,000,000 common shares authorized, 58,733,284 and 40,152,904 common shares issued and outstanding, respectively		$	59			$	40
Capital in excess of par value			739,443				506,062
Accumulated undistributed net investment income			21,674				12,185
Net unrealized appreciation/(depreciation) on investments			(31,319	)			(8,453	)
Total net assets			729,857				509,834
Total liabilities and net assets		$	1,324,146			$	776,393
NET ASSET VALUE PER SHARE		$	12.43			$	12.70

 

 

Medley Capital Corporation

 

Consolidated Statements of Operations

(in thousands, except share and per share data)

 

		For the three months								For the years
		ended September 30								ended September 30
		2014				2013				2014				2013
INVESTMENT INCOME
Interest from investments
From non-controlled/non-affiliated investments:
Cash Interest		$	26,924			$	18,778			$	98,196			$	62,969
Paid-in-kind			1,988				2,488				10,043				8,680
From affiliated investments:
Cash Interest			368				272				1,207				1,054
Paid-in-kind			121				115				469				445
From controlled investments:
Cash Interest			179				-				179				-
Paid-in-kind			214				-				214				-
Total interest income			29,794				21,653				110,308				73,148
Interest from cash and cash equivalents			2				2				8				8
Other fee income			8,456				5,818				29,074				15,835
Total investment income			38,252				27,473				139,390				88,991
EXPENSES
Base management fees			5,348				3,311				17,684				10,918
Incentive fees			5,097				3,589				18,667				11,600
Interest and financing expenses			5,631				4,165				20,133				13,448
Administrator expenses			982				701				3,353				2,475
Professional fees			383				686				2,251				1,846
Directors fees			16				147				551				461
Insurance			143				166				570				377
General and administrative			264				353				1,513				1,316
Organizational expense			-				-				-				151
Expenses before management fee waiver			17,864				13,118				64,722				42,592
Management fee waiver			-				-				-				-
Total expenses			17,864				13,118				64,722				42,592
Net investment income before tax provision and excise taxes			20,388				14,355				74,668				46,399
Income tax provision and excise tax expense			-				-				-				-
NET INVESTMENT INCOME			20,388				14,355				74,668				46,399
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from investments			(531	)			23				356				261
Net unrealized appreciation/(depreciation) on investments			(9,693	)			747				(21,274	)			(7,242	)
Net unrealized appreciation/(depreciation) on participations			(124	)			-				-				-
Provision for taxes on unrealized gain on investments			(1,206	)			-				(1,592	)			-
Net gain/(loss) on investments			(11,554	)			770				(22,510	)			(6,981	)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS		$	8,834			$	15,125			$	52,158			$	39,418
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE		$	0.16			$	0.43			$	1.10			$	1.30
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE		$	0.37			$	0.41			$	1.58			$	1.53
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED			54,876,588				34,881,365				47,366,892				30,246,247
DIVIDENDS DECLARED PER COMMON SHARE		$	0.37			$	0.37			$	1.48			$	1.45

 

 

ABOUT MEDLEY CAPITAL CORPORATION

 

Medley Capital Corporation is a closed-end, externally managed business development company ("BDC") that trades on the New York Stock Exchange (NYSE: MCC). Medley Capital Corporation's investment objective is to generate current income and capital appreciation by lending to privately-held middle market companies, primarily through directly originated transactions, to help these companies expand their businesses, refinance and make acquisitions. Our portfolio generally consists of senior secured first lien loans and senior secured second lien loans. In many of our investments, we receive warrants or other equity participation features, which we believe will increase the total investment returns. Medley Capital Corporation is externally managed by MCC Advisors LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended.  For additional information, please visit Medley Capital Corporation at www.medleycapitalcorp.com.

  

ABOUT MCC ADVISORS LLC

 

MCC Advisors LLC is a subsidiary of Medley Management Inc. (NYSE: MDLY). Medley is an asset management firm offering yield solutions to retail and institutional investors. Medley's national direct origination franchise, with currently over 80 people, is a premier provider of capital to the middle market in the U.S. As of September 30, 2014, Medley has in excess of $3.6 billion of investable capital in business development companies, Medley Capital Corporation (NYSE: MCC) and the Sierra Income Corporation, and private investment vehicles.  Over the past 12 years, we have invested in excess of $5.1 billion to help over 285 companies grow across 35 industries in North America. For additional information, please visit Medley Management Inc. at www.mdly.com.

 

FORWARD-LOOKING STATEMENTS

 

Statements included herein may contain "forward-looking statements".  Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. Except as required by law, the Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

 

SOURCE: Medley Capital Corporation

 

Contact: 

Sam Anderson

212.759.0777