Medley Capital Corporation Announces September 30, 2020 Financial Results
For Q4 ended September 30, 2020, Medley Capital Corporation (MCC) reported a net asset value of $150.6 million, or $55.30 per share, up from $149.3 million at the previous quarter. The company recorded net income of $0.47 per share but a net investment loss of $(0.32) per share. The total value of investments was $246.7 million, with net repayments/sales of $6.3 million. Total investment income was $4.4 million, yet no dividends were declared this quarter.
- Increased net asset value to $150.6 million from $149.3 million.
- Net income per share rose to $0.47.
- Reported net investment loss of $(0.32) per share.
- Total investment income decreased to $4.4 million, down from previous levels.
- No dividends declared this quarter.
NEW YORK, Dec. 11, 2020 (GLOBE NEWSWIRE) -- Medley Capital Corporation (NYSE: MCC) (the “Company”) today announced financial results for the quarter ended September 30, 2020.
Fourth Quarter Summary
- Net asset value of
$150.6 million , or,$55.30 per share, vs.$149.3 million , or,$54.83 per share, at June 30, 2020 - Net income of
$0.47 per share - Net investment loss of
$(0.32) per share - The board of directors did not declare a dividend this quarter
Portfolio Investments
The total value of our investments was
Results of Operations
For the three months ended September 30, 2020, the Company reported net investment loss per share and net income per share of
For the year ended September 30, 2020, the Company reported net investment loss per share and net loss per share of
Investment Income
For the three months ended September 30, 2020, total investment income was approximately
For the year ended September 30, 2020, total investment income was approximately
Expenses
On June 12, 2020, the Company entered into an expense support agreement (the "ESA") with MCC Advisors LLC and Medley LLC, pursuant to which MCC Advisors LLC and Medley LLC agreed (jointly and severally) to cap the management fee and all of the Company's other operating expenses (except interest expenses, certain extraordinary strategic transaction expenses, and other expenses approved by the special committee of the board of directors) at
For the three months ended September 30, 2020, total expenses before the ESA were approximately
For the year ended September 30, 2020, total expenses before the ESA were approximately
Net Investment Income/Loss
For the three months ended September 30, 2020, the Company reported net investment loss of
For the year ended September 30, 2020, the Company reported net investment loss of
Net Realized and Unrealized Gains/Losses
For the three months and year ended September 30, 2020, the Company reported losses of
For the three months and year ended September 30, 2020, the Company reported unrealized appreciation/(depreciation) of
For the three months and year ended September 30, 2020, the Company reported a loss on extinguishment of debt of
Liquidity and Capital Resources
As of September 30, 2020, the Company had a cash balance of
As of September 30, 2020, the Company had
Dividend Declaration
The board of directors did not declare a dividend this quarter.
Financial Statements
Medley Capital Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)
September 30, 2020 | September 30, 2019 | ||||||
ASSETS | |||||||
Investments at fair value | |||||||
Non-controlled/non-affiliated investments (amortized cost of | $ | 114,322 | $ | 189,895 | |||
Affiliated investments (amortized cost of | 84,873 | 99,540 | |||||
Controlled investments (amortized cost of | 47,549 | 107,454 | |||||
Total investments at fair value | 246,744 | 396,889 | |||||
Cash and cash equivalents | 56,522 | 68,245 | |||||
Restricted cash | — | 16,039 | |||||
Other assets | 2,094 | 2,974 | |||||
Interest receivable | 625 | 1,592 | |||||
Receivable for dispositions and investments sold | — | 419 | |||||
Fees receivable | 119 | 109 | |||||
Total assets | $ | 306,104 | $ | 486,267 | |||
LIABILITIES | |||||||
Notes payable (net of debt issuance costs of | $ | 150,961 | $ | 251,732 | |||
Accounts payable and accrued expenses | 2,108 | 11,957 | |||||
Interest and fees payable | 802 | 2,905 | |||||
Management and incentive fees payable | 1,392 | 2,231 | |||||
Administrator expenses payable | 157 | 862 | |||||
Deferred revenue | 10 | 103 | |||||
Due to affiliate | 53 | 44 | |||||
Total liabilities | $ | 155,483 | $ | 269,834 | |||
NET ASSETS | |||||||
Common stock, par value | $ | 3 | $ | 3 | |||
Capital in excess of par value | 672,382 | 673,584 | |||||
Total distributable earnings/(loss) | (521,764 | ) | (457,154 | ) | |||
Total net assets | 150,621 | 216,433 | |||||
Total liabilities and net assets | $ | 306,104 | $ | 486,267 | |||
NET ASSET VALUE PER SHARE(1) | $ | 55.30 | $ | 79.46 |
(1) Authorized, issued and outstanding common shares and net asset value per share have been adjusted for the periods shown to reflect the one-for-twenty reverse stock split effected on July 24, 2020 on a retroactive basis.
Medley Capital Corporation
Consolidated Statements of Operations
(in thousands, except share and per share data)
For the three months ended September 30 | For the years ended September 30 | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
INVESTMENT INCOME | |||||||||||||||
Interest from investments | |||||||||||||||
Non-controlled/non-affiliated investments: | |||||||||||||||
Cash | $ | 1,638 | $ | 4,118 | $ | 9,137 | $ | 25,368 | |||||||
Payment-in-kind | 399 | 271 | 864 | 1,755 | |||||||||||
Affiliated investments: | |||||||||||||||
Cash | 491 | 490 | 1,182 | 2,198 | |||||||||||
Payment-in-kind | 284 | 319 | 2,426 | 2,604 | |||||||||||
Controlled investments: | |||||||||||||||
Cash | — | 89 | 85 | 338 | |||||||||||
Payment-in-kind | — | 192 | 501 | 2,801 | |||||||||||
Total interest income | 2,812 | 5,479 | 14,195 | 35,064 | |||||||||||
Dividend income | 1,531 | 2,114 | 6,256 | 8,219 | |||||||||||
Interest from cash and cash equivalents | 1 | 200 | 378 | 712 | |||||||||||
Fee income | 76 | 323 | 693 | 2,304 | |||||||||||
Total investment income | 4,420 | 8,116 | 21,522 | 46,299 | |||||||||||
EXPENSES | |||||||||||||||
Base management fees | 1,392 | 2,231 | 6,359 | 11,190 | |||||||||||
Interest and financing expenses | 2,623 | 5,308 | 14,935 | 24,049 | |||||||||||
Professional fees, net | 29 | 4,743 | (4,768 | ) | 623 | ||||||||||
General and administrative | 145 | 2,752 | 3,285 | 19,323 | |||||||||||
Administrator expenses | 484 | 862 | 2,227 | 7,399 | |||||||||||
Directors fees | 491 | 170 | 1,451 | 1,258 | |||||||||||
Insurance | 475 | 259 | 1,463 | 3,324 | |||||||||||
Expenses before expense support reimbursement and management and incentive fee waivers | 5,639 | 16,325 | 24,952 | 67,166 | |||||||||||
Expense support reimbursement | (361 | ) | — | (710 | ) | — | |||||||||
Management fee waiver | — | — | — | — | |||||||||||
Total expenses net of management and incentive fee waivers | 5,278 | 16,325 | 24,242 | 67,166 | |||||||||||
NET INVESTMENT INCOME | (858 | ) | (8,209 | ) | (2,720 | ) | (20,867 | ) | |||||||
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS | |||||||||||||||
Net realized gain/(loss) from investments | |||||||||||||||
Non-controlled/non-affiliated investments | (9,283 | ) | — | (9,974 | ) | (24,762 | ) | ||||||||
Affiliated investments | (929 | ) | (7,671 | ) | (929 | ) | (7,671 | ) | |||||||
Controlled investments | — | (28,201 | ) | (39,076 | ) | (79,740 | ) | ||||||||
Net realized gain/(loss) from investments | (10,212 | ) | (35,872 | ) | (49,979 | ) | (112,173 | ) | |||||||
Net unrealized appreciation/(depreciation) on investments | |||||||||||||||
Non-controlled/non-affiliated investments | 18,321 | (4,596 | ) | 9,898 | 20,727 | ||||||||||
Affiliated investments | 90 | (738 | ) | 2,648 | (6,864 | ) | |||||||||
Controlled investments | (6,117 | ) | 17,871 | (23,179 | ) | 24,635 | |||||||||
Net unrealized appreciation/(depreciation) on investments | 12,294 | 12,537 | (10,633 | ) | 38,498 | ||||||||||
Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments | 50 | — | — | — | |||||||||||
Net loss on extinguishment of debt | — | (104 | ) | (2,481 | ) | (2,033 | ) | ||||||||
Net realized and unrealized gain/(loss) on investments | 2,132 | (23,439 | ) | (63,093 | ) | (75,708 | ) | ||||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 1,274 | $ | (31,648 | ) | $ | (65,813 | ) | $ | (96,575 | ) | ||||
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE(1) | $ | 0.47 | $ | (11.62 | ) | $ | (24.63 | ) | $ | (35.46 | ) | ||||
WEIGHTED AVERAGE - BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE(1) | $ | (0.32 | ) | $ | (3.01 | ) | $ | (0.68 | ) | $ | (7.66 | ) | |||
WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED(1) | 2,723,709 | 2,723,709 | 2,723,709 | 2,723,709 | |||||||||||
DIVIDENDS DECLARED PER COMMON SHARE(2) | $ | — | $ | — | $ | — | $ | 3.00 |
(1) Basic and diluted shares has been adjusted for the periods shown to reflect the one-for-twenty reverse stock split effected on July 24, 2020 on a retroactive basis.
(2) Dividends declared per common share has been adjusted for the periods shown to reflect the one-for twenty reverse stock split effected on July 24, 2020 on a retroactive basis.
ABOUT MEDLEY CAPITAL CORPORATION
Medley Capital Corporation is a closed-end, externally managed business development company ("BDC") that has common stock which trades on the New York Stock Exchange (NYSE: MCC) and has an outstanding bond which trades on the New York Stock Exchange under the symbol (NYSE: MCV). 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. 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”). Medley is an alternative asset management firm offering yield solutions to retail and institutional investors. Medley’s national direct origination franchise is a premier provider of capital to the middle market in the U.S. Medley has
Medley LLC, the operating company of Medley Management Inc., has outstanding bonds which trade on the New York Stock Exchange under the symbols (NYSE:MDLX) and (NYSE:MDLQ).
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking” statements, including statements regarding the impact of the ESA. Such forward-looking statements reflect current views with respect to future events and financial performance, and the Company may make related oral forward-looking statements on or following the date hereof. Statements that include the words “should,” “would,” “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “seek,” “will,” and similar statements of a future or forward-looking nature identify forward-looking statements in this material or similar oral statements for purposes of the U.S. federal securities laws or otherwise. Forward-looking statements include, but are not limited to, the introduction, withdrawal, success and timing of business initiatives and strategies; changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets, which could result in changes in the value of our assets; the relative and absolute investment performance and operations of MCC Advisors LLC; our business prospects and the prospects of our portfolio companies; the uncertainty regarding actual level of expenses the Company incurs that may not be materially lower than current expenses due to a variety of factors, such as unexpected expenses not covered by the ESA; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak, the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our and their ability to achieve their respective objectives, and the effect of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.
The foregoing review of important factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the “Risk Factors” and other sections of the Company’s most recent Annual Report on Form 10-K. The forward-looking statements in this press release represent the Company’s views as of the date of hereof. The Company anticipates that subsequent events and developments will cause its views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company does not have any current intention of doing so except to the extent required by applicable law. You should, therefore, not rely on these forward-looking statements as representing the Company’s views as of any date subsequent to the date of this material.
SOURCE: Medley Capital Corporation
Investor Relations Contact:
Sam Anderson
Head of Capital Markets & Risk Management
Medley Management Inc.
212-759-0777
Media Contact:
Jonathan Gasthalter/Nathaniel Garnick
Gasthalter & Co. LP
212-257-4170
1 Medley Management Inc. is the parent company of Medley LLC and several registered investment advisors (collectively, “Medley”). Assets under management refers to assets of Medley’s funds, which represents the sum of the net asset value of such funds, the drawn and undrawn debt (at the fund level, including amounts subject to restrictions) and uncalled committed capital (including commitments to funds that have yet to commence their investment periods). Assets under management are as of September 30, 2020.
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