BETHESDA, Md., Feb. 17, 2016 /PRNewswire/ -- American Capital, Ltd. ('American Capital' or the 'Company') (NASDAQ: ACAS) announced consolidated net operating income ('NOI') before income taxes for the year and quarter ended December 31, 2015 of $378 million, or $1.41 per diluted share, and $95 million, or $0.37 per diluted share, respectively. Consolidated NOI for the year and quarter ended December 31, 2015 was $253 million, or $0.95 per diluted share, and $61 million, or $0.24 per diluted share, respectively. Consolidated net loss for the year and quarter ended December 31, 2015 was $(187) million, or $(0.70) per diluted share, and $(227) million, or $(0.88) per diluted share, respectively. As of December 31, 2015, consolidated net asset value ('NAV') per share was $19.88, a $0.56 per share decrease from the September 30, 2015 NAV per share of $20.44 and a $0.62 per share decrease from the December 31, 2014 NAV per share of $20.50.

2015 CONSOLIDATED FINANCIAL SUMMARY

  • $19.88 NAV per share outstanding
    • $0.62 per share decline from 2014
    • (3)% economic return from 2014
  • $1.41 NOI before income taxes per diluted share, or $378 million
    • 117%, or $0.76 per diluted share, increase over 2014, or $195 million
    • 7.1%, return on equity
  • $0.95 NOI after income taxes per diluted share, or $253 million
    • 126%, or $0.53 per diluted share, increase over 2014, or $136 million
  • $(0.70) net loss per diluted share, or $(187) million
    • $2.25 per diluted share decline from 2014, or $(621) million
    • $(122) million in tax provision related to discrete and non-recurring items
  • $3.7 billion of cash proceeds from realizations
    • $2.3 billion from Senior Floating Rate Loans ('SFRLs')
    • $283 million from sale of CLO equity investments to American Capital CLO Fund I, LP
    • $170 million from investments sold to a European Capital debt fund
  • $3.3 billion in new committed investments
    • $1.1 billion in SFRLs
    • $805 million in Sponsor Finance investments
  • 36.9 million shares of American Capital common stock repurchased for $526 million
    • 13.8% of shares outstanding as of December 31, 2014
    • $14.25 average price per share
    • $0.75 per share accretive to December 31, 2015 NAV per share

Q4 2015 CONSOLIDATED FINANCIAL SUMMARY

  • $19.88 NAV per share outstanding
    • $0.56 per share decline from Q3 2015
    • (10)% annualized economic return from Q3 2015
  • $0.37 NOI before income taxes per diluted share, or $95 million
    • 8%, or $0.03 per diluted share, decline from Q3 2015, or $13 million
    • 7.6% annualized return on equity
  • $0.24 NOI after income taxes per diluted share, or $61 million
    • 14%, or $0.04 per diluted share, decline from Q3 2015, or $14 million
  • $(0.88) net loss per diluted share, or $(227) million
    • $0.74 per diluted share decline from Q3 2015, or $190 million
    • $(104) million in tax provision related to discrete and non-recurring items
  • $2.4 billion of cash proceeds from realizations
    • $1.8 billion from SFRLs
    • $283 million from sale of CLO equity investments to American Capital CLO Fund I, LP
  • $686 million in new committed investments
    • $469 million in Sponsor Finance investments
    • $125 million in ACAM and Fund Development
  • $121 million in loans on non-accrual status at fair value as of December 31, 2015
    • $6 million decline, or 5%, from $127 million as of September 30, 2015
  • 20.7 million shares of American Capital common stock repurchased for $298 million
    • 8.0% of shares outstanding as of September 30, 2015
    • $14.44 average price per share
    • $0.43 per share accretive to December 31, 2015 NAV per share

'Given our ongoing strategic review process and the related announcement that we are soliciting offers to purchase the company or its business lines, in whole or in part, we will not be conducting a shareholder call this quarter,' said Malon Wilkus, Chairman and Chief Executive Officer. 'However, we are providing significant information regarding the Company through our annual report on Form 10‑K, which we filed with the SEC this morning, along with today's press release announcing earnings plus earnings-related slides posted on our website.'

'During the fourth quarter, we sold $2.0 billion of senior floating rate loans and substantially liquidated our SFRL portfolio, while paying down $1.3 billion of associated debt,' continued Mr. Wilkus. 'These actions greatly enhanced our capital flexibility and contributed to our ability to repurchase $433 million of our stock under our current Share Repurchase Program, which allows us to purchase up to $1 billion of our stock. To complete this program, we scheduled share repurchases through the end of the second quarter under an SEC Rule 10b5-1 share repurchase plan. At current market prices, we believe share repurchases are an excellent way to enhance shareholder value. Through this program and our strategic review process, we remain focused on maximizing shareholder value.'

PORTFOLIO VALUATION
 For the quarter ended December 31, 2015, net unrealized depreciation, before income taxes, on American Capital's consolidated investment portfolio totaled $98 million. The primary components of the net unrealized depreciation were:

  • $130 million unrealized depreciation of American Capital Asset Management primarily due to a reduction in projected management fees for managing American Capital Agency Corp. and American Capital Mortgage Investment Corp. due to a decrease in the equity capital of each company as a result of share repurchases and realized losses;
  • $66 million net unrealized depreciation of Structured Products investments primarily due to unrealized depreciation on American Capital's CLO investment portfolio as a result of a decline in forecasted cash flows and lower dealer marks; partially offset by
  • $111 million reversal of prior period unrealized depreciation upon realization.

'During the quarter, we had two discrete and non-recurring adjustments to our tax asset, which netted to an expense of $104 million,' said John Erickson, Chief Financial Officer and President, Specialty Finance. 'These included a $55 million benefit from the receipt of a favorable private letter ruling and a $159 million provision for the establishment of a valuation allowance against our deferred tax asset related to our investment in European Capital. However, if we achieve substantial realized gains in connection with the sales of certain assets, we expect to be able to reverse this valuation allowance.'

PORTFOLIO PERFORMANCE
 As of December 31, 2015, the weighted average effective interest rate on consolidated debt investments, excluding Senior Floating Rate Loans and including non-accrual loans, was 8.5%, 20 basis points lower than the September 30, 2015 rate of 8.7%. Excluding the impact of debt investments on non-accrual, the weighted average effective interest rate on consolidated debt investments as of December 31, 2015, excluding Senior Floating Rate Loans, was 9.5%, 60 basis points lower than the September 30, 2015 rate of 10.1%. The weighted average effective interest rate on European Capital's debt investments as of December 31, 2015 was 2.7%, 100 basis points lower than the September 30, 2015 rate of 3.7%. Excluding the impact of debt investments on non-accrual, the weighted average effective interest rate on European Capital's debt investments as of December 31, 2015 was 5.5%, 210 basis points lower than the September 30, 2015 rate of 7.6%. The weighted average effective interest rate on consolidated debt investments as of December 31, 2015 was 8.4%, 190 basis points higher than the September 30, 2015 rate of 6.5%, due to the substantial liquidation of the SFRL portfolio.

As of December 31, 2015, excluding European Capital loans, loans with a fair value of $103 million were on non-accrual, representing 4.4% of total loans at fair value, compared to $85 million, or 2.0%, of loans at fair value as of September 30, 2015. The $18 million increase in the fair value of loans on non-accrual was generally driven by the addition of a loan placed on non-accrual status and PIK allowance reversals. Total loans on non-accrual were valued at 55.7% of cost at the end of the quarter, an 8.2% increase from the prior quarter. This is an estimate of the amount the Company expects to recover on non-accruing loans. The estimated loss on total loans at cost, defined as net accumulated depreciation on non-accrual loans plus realized losses on loans during the period, was $91 million, or 3.5%.

As of December 31, 2015, European Capital loans with a fair value of $18 million were on non-accrual, representing 16.8% of total European Capital loans at fair value, compared to $42 million, or 21.6%, of European Capital loans at fair value as of September 30, 2015. The $24 million decrease in the fair value of European Capital loans on non-accrual was driven by the removal of a loan from non-accrual status. Total European Capital loans on non-accrual were valued at 18.9% of cost at the end of the quarter, a 6.9% decrease from the prior quarter. The estimated loss on total loans at cost was $118 million, or 54.1%.

SHARE REPURCHASE PROGRAM
 As previously announced, American Capital's stock repurchase program, which began in the third quarter of 2015, contemplates the purchase of $600 million to $1 billion of shares of the Company's common stock. Under the program, purchases will only be made at per share prices below 85% of the Company's net asset value per share and will be subject to certain other conditions. The Company entered into a Rule10b5-1 trading plan to undertake accretive share repurchases on a non-discretionary basis up to the $1 billion limit. As of December 31, 2015, the Company has purchased a total of $433 million under this program and expects to complete the program by June 30, 2016.

During the fourth quarter of 2015, American Capital made open market purchases of 20.7 million shares, or 8.0% of the Company's outstanding shares as of September 30, 2015, for an aggregate price of $298 million, of American Capital common stock at an average price of $14.44 per share. Since August 2011, American Capital has made open market purchases of 138.5 million shares, or $1.7 billion, of American Capital common stock at an average price of $12.41 per share. This represents 40% of shares outstanding immediately prior to August 2011.

AMERICAN CAPITAL, LTD.

CONSOLIDATED BALANCE SHEETS

As of December 31, 2015, September 30, 2015 and December 31, 2014

(in millions, except per share amounts)

Q4

Q3

Q4 2015 Versus
Q3 2015

Q4

Q4 2015 Versus
Q4 2014

2015

2015

$

%

2014

$

%

(unaudited)

(unaudited)

Assets

Investments at fair value (cost of $4,905, $6,921 and $6,417, respectively)

$ 4,998

$ 7,106

$ (2,108)

(30%)

$ 6,280

$ (1,282)

(20%)

Cash and cash equivalents

483

244

239

98%

676

(193)

(29%)

Restricted cash and cash equivalents

46

97

(51)

(53%)

167

(121)

(72%)

Interest and dividend receivable

48

53

(5)

(9%)

46

2

4%

Deferred tax asset, net

198

263

(65)

(25%)

354

(156)

(44%)

Trade date settlement receivable

373

304

69

23%

4

369

NM

Other

98

101

(3)

(3%)

113

(15)

(13%)

Total assets

$ 6,244

$ 8,168

$ (1,924)

(24%)

$ 7,640

$ (1,396)

(18%)

Liabilities and Shareholders' Equity

Debt

$ 1,257

$ 2,649

$ (1,392)

(53%)

$ 1,703

$ (446)

(26%)

Trade date settlement liability

2

77

(75)

(97%)

191

(189)

(99%)

Long term incentive plan liability

34

30

4

13%

82

(48)

(59%)

Other

129

105

24

23%

192

(63)

(33%)

Total liabilities

1,422

2,861

(1,439)

(50%)

2,168

(746)

(34%)

Shareholders' equity

Undesignated preferred stock, $0.01 par value, 5.0 shares authorized, 0
issued and outstanding

-

-

-

-%

-

-

-%

Common stock, $0.01 par value, 1,000.0 shares authorized, 247.3, 263.3 and
271.1 issued and 242.6, 259.6 and 266.9 outstanding, respectively

2

3

(1)

(33%)

3

(1)

(33%)

Capital in excess of par value

5,847

6,112

(265)

(4%)

6,246

(399)

(6%)

Cumulative translation adjustment

(101)

(109)

8

7%

(38)

(63)

(166%)

Distributions in excess of net realized earnings

(879)

(806)

(73)

(9%)

(505)

(374)

(74%)

Net unrealized (depreciation) appreciation of investments

(47)

107

(154)

NM

(234)

187

80%

Total shareholders' equity

4,822

5,307

(485)

(9%)

5,472

(650)

(12%)

Total liabilities and shareholders' equity

$ 6,244

$ 8,168

$ (1,924)

(24%)

$ 7,640

$ (1,396)

(18%)

NAV per common share outstanding

$ 19.88

$ 20.44

$ (0.56)

(3%)

$ 20.50

$ (0.62)

(3%)

______________________________
NM = Not meaningful
Note: Effective October 1, 2014, European Capital's financial results have been consolidated with the financial results of American Capital.

AMERICAN CAPITAL, LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended December 31, 2015 and September 30, 2015 and Fiscal Years Ended December 31, 2015 and 2014

(in millions, except per share data)

Q4

Q3

Q4 2015 Versus
Q3 2015

Fiscal Year Ended
December 31,

Fiscal Year Ended
December 31,
2015 Versus 2014

2015

2015

$

%

2015

2014

$

%

(unaudited)

(unaudited)

(unaudited)

OPERATING REVENUE

Interest and dividend income

$ 153

$ 165

$ (12)

(7%)

$ 607

$ 413

$ 194

47%

Fee income

20

11

9

82%

64

58

6

10%

Total operating revenue

173

176

(3)

(2%)

671

471

200

42%

OPERATING EXPENSES

Interest

21

21

-

-%

79

54

25

46%

Salaries, benefits and stock-based compensation

34

31

3

10%

137

168

(31)

(18%)

European Capital Management fees

2

3

(1)

(33%)

13

5

8

160%

General and administrative

21

13

8

62%

64

61

3

5%

Total operating expenses

78

68

10

15%

293

288

5

2%

NET OPERATING INCOME BEFORE INCOME TAXES

95

108

(13)

(12%)

378

183

195

107%

Tax provision

(34)

(33)

(1)

(3%)

(125)

(66)

(59)

(89%)

NET OPERATING INCOME

61

75

(14)

(19%)

253

117

136

116%

Net realized (loss) gain

Portfolio company investments

(138)

(68)

(70)

(103%)

(696)

263

(959)

NM

Foreign currency transactions

(9)

(10)

1

10%

(18)

(17)

(1)

(6%)

Derivative agreements and others

-

(2)

2

100%

(4)

(41)

37

90%

Tax benefit (provision)

13

23

(10)

(43%)

91

(53)

144

NM

Total net realized (loss) gain

(134)

(57)

(77)

(135%)

(627)

152

(779)

NM

Net unrealized (depreciation) appreciation

Portfolio company investments

(98)

(60)

(38)

(63%)

211

149

62

42%

Foreign currency translation

(3)

(2)

(1)

(50%)

27

(74)

101

NM

Derivative agreements and others

(5)

1

(6)

NM

67

35

32

91%

Tax (provision) benefit

(48)

6

(54)

NM

(118)

55

(173)

NM

Total net unrealized (depreciation) appreciation

(154)

(55)

(99)

(180%)

187

165

22

13%

NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ('NET (LOSS)
EARNINGS')

$ (227)

$ (37)

$ (190)

(514%)

$ (187)

$ 434

$ (621)

NM

NET OPERATING INCOME BEFORE INCOME TAXES PER COMMON SHARE

Basic

$ 0.37

$ 0.40

$ (0.03)

(8%)

$ 1.41

$ 0.68

$ 0.73

107%

Diluted

$ 0.37

$ 0.40

$ (0.03)

(8%)

$ 1.41

$ 0.65

$ 0.76

117%

NET OPERATING INCOME PER COMMON SHARE

Basic

$ 0.24

$ 0.28

$ (0.04)

(14%)

$ 0.95

$ 0.44

$ 0.51

116%

Diluted

$ 0.24

$ 0.28

$ (0.04)

(14%)

$ 0.95

$ 0.42

$ 0.53

126%

NET REALIZED (LOSS) EARNINGS PER COMMON SHARE

Basic

$ (0.28)

$ 0.07

$ (0.35)

NM

$ (1.40)

$ 1.00

$ (2.40)

NM

Diluted

$ (0.28)

$ 0.07

$ (0.35)

NM

$ (1.40)

$ 0.96

$ (2.36)

NM

NET (LOSS) EARNINGS PER COMMON SHARE

Basic

$ (0.88)

$ (0.14)

$ (0.74)

(529%)

$ (0.70)

$ 1.62

$ (2.32)

NM

Diluted

$ (0.88)

$ (0.14)

$ (0.74)

(529%)

$ (0.70)

$ 1.55

$ (2.25)

NM

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING

Basic

257.6

267.7

(10.1)

(4%)

267.2

268.2

(1.0)

-%

Diluted

257.6

267.7

(10.1)

(4%)

267.2

280.7

(13.5)

(5%)

______________________________
NM = Not meaningful
Note: Effective October 1, 2014, European Capital's financial results have been consolidated with the financial results of American Capital.

AMERICAN CAPITAL, LTD.

OTHER FINANCIAL INFORMATION

Three Months Ended December 31, 2015 and September 30, 2015 and Fiscal Years Ended December 31, 2015 and 2014

(in millions, except per share data)

(unaudited)

Q4 2015 Versus
Q3 2015

2015 Versus 2014

Q4 2015

Q3 2015

$

%

2015

2014

$

%

Assets Under Management

American Capital Total Assets at Fair Value

$ 6,244

$ 8,168

$ (1,924)

(24%)

$ 6,244

$ 7,640

$ (1,396)

(18%)

Externally Managed Assets at Fair Value(1)

67,098

71,943

(4,845)

(7%)

67,098

78,782

(11,684)

(15%)

Total

$ 73,342

$ 80,111

$ (6,769)

(8%)

$ 73,342

$ 86,422

$ (13,080)

(15%)

Third-Party Earning Assets Under Management(2)

$ 14,467

$ 15,105

$ (638)

(4%)

$ 14,467

$ 14,467

$ -

-%

Total Earning Assets Under Management(3)

$ 20,711

$ 23,273

$ (2,562)

(11%)

$ 20,711

$ 22,107

$ (1,396)

(6%)

New Investments

First Lien Senior Debt

$ 380

$ 303

$ 77

25%

$ 1,823

$ 2,039

$ (216)

(11%)

Second Lien Senior Debt

111

138

(27)

(20%)

355

589

(234)

(40%)

Mezzanine Debt

4

14

(10)

(71%)

76

10

66

660%

Preferred Equity

19

4

15

375%

202

35

167

477%

Common Equity

143

85

58

68%

471

405

66

16%

Structured Products

29

147

(118)

(80%)

378

532

(154)

(29%)

Total by Security Type

$ 686

$ 691

$ (5)

(1%)

$ 3,305

$ 3,610

$ (305)

(8%)

Sponsor Finance and Other Investments

$ 462

$ 191

$ 271

142%

$ 823

$ 622

$ 201

32%

Investments in ACAM and Fund Development

125

88

37

42%

254

400

(146)

(37%)

Structured Products

29

147

(118)

(80%)

378

512

(134)

(26%)

Senior Floating Rate Loans

18

223

(205)

(92%)

1,144

1,891

(747)

(40%)

European Capital

5

14

(9)

(64%)

367

39

328

841%

Add-on Financing for Growth and Working Capital

41

27

14

52%

131

128

3

2%

Add-on Financing for Acquisitions

5

-

5

100%

5

-

5

100%

Add-on Financing for Distressed Situations

1

1

-

-%

12

14

(2)

(14%)

Add-on Financing for ACE Buybacks

-

-

-

-%

145

-

145

100%

Add-on Financing for Recapitalizations, not Including Distressed Investments

-

-

-

-%

46

4

42

NM

Total by Use

$ 686

$ 691

$ (5)

(1%)

$ 3,305

$ 3,610

$ (305)

(8%)

Realizations

Loan Syndications and Sales

$ 2,022

$ 75

$ 1,947

NM

$ 2,357

$ 98

$ 2,259

NM

Principal Prepayments

228

41

187

456%

445

699

(254)

(36%)

Scheduled Principal Amortization

107

192

(85)

(44%)

470

56

414

739%

Equity Investments

28

177

(149)

(84%)

388

1,523

(1,135)

(75%)

Payment of Accrued PIK Notes and Dividends and Accreted OID

23

9

14

156%

61

389

(328)

(84%)

Total by Source

$ 2,408

$ 494

$ 1,914

387%

$ 3,721

$ 2,765

$ 956

35%

Senior Floating Rate Loans

$ 1,808

$ 262

$ 1,546

590%

$ 2,347

$ 163

$ 2,184

NM

Structured Products

344

22

322

NM

470

192

278

145%

European Capital(4)

110

72

38

53%

467

651

(184)

(28%)

American Capital One Stop Buyouts®

78

7

71

NM

197

1,167

(970)

(83%)

Sponsor Finance and Other Investments

65

99

(34)

(34%)

199

386

(187)

(48%)

American Capital Asset Management

3

32

(29)

(91%)

41

206

(165)

(80%)

Total by Business Line

$ 2,408

$ 494

$ 1,914

387%

$ 3,721

$ 2,765

$ 956

35%

Appreciation, Depreciation, Gain and Loss

Gross Realized Gain

$ 18

$ 46

$ (28)

(61%)

$ 77

$ 474

$ (397)

(84%)

Gross Realized Loss

(156)

(114)

(42)

(37%)

(773)

(211)

(562)

(266%)

Portfolio Net Realized (Loss) Gain

(138)

(68)

(70)

(103%)

(696)

263

(959)

NM

Foreign Currency Transactions

(9)

(10)

1

10%

(18)

(17)

(1)

(6%)

Derivative Agreements and Other

-

(2)

2

100%

42

(41)

83

202%

Long Term Incentive Plan Liability

-

-

-

-%

(46)

-

(46)

(100%)

Tax Benefit (Provision)

13

23

(10)

(43%)

91

(53)

144

NM

Net Realized (Loss) Gain

(134)

(57)

(77)

(135%)

(627)

152

(779)

NM

Net Unrealized Depreciation of American Capital One Stop Buyouts®

(9)

(45)

36

80%

(59)

(47)

(12)

(26%)

Net Unrealized Appreciation of American Capital Sponsor Finance and Other Investments

5

8

(3)

(38%)

8

11

(3)

(27%)

Net Unrealized (Depreciation) Appreciation of European Capital Investments

(7)

26

(33)

NM

27

7

20

286%

Net Unrealized Appreciation of Investment in European Capital

-

-

-

-%

-

167

(167)

(100%)

Net Unrealized Appreciation of Investment in European Capital Foreign Currency Translation

-

-

-

-%

-

14

(14)

(100%)

Net Unrealized (Depreciation) Appreciation of ACAM

(130)

(55)

(75)

(136%)

(199)

222

(421)

NM

Net Unrealized Depreciation of Senior Floating Rate Loans

(2)

(19)

17

89%

(11)

(24)

13

54%

Net Unrealized (Depreciation) Appreciation of Structured Products

(66)

(45)

(21)

(47%)

(125)

5

(130)

NM

Reversal of Prior Period Net Unrealized Depreciation (Appreciation) Upon Realization

111

70

41

59%

570

(206)

776

NM

Net Unrealized (Depreciation) Appreciation of Portfolio Company Investments

(98)

(60)

(38)

(63%)

211

149

62

42%

Net Unrealized Appreciation Due to Consolidation of European Capital

-

-

-

-%

-

87

(87)

(100%)

Foreign Currency Translation - Investment in European Capital

-

-

-

-%

-

(75)

75

100%

Foreign Currency Translation - European Capital Investments

(3)

(4)

1

25%

32

11

21

191%

Foreign Currency Translation - Other

-

2

(2)

(100%)

(5)

(10)

5

50%

Derivative Agreements and Other

(5)

1

(6)

NM

67

(52)

119

NM

Tax (Provision) Benefit

(48)

6

(54)

NM

(118)

55

(173)

NM

Net Unrealized (Depreciation) Appreciation of Investments

(154)

(55)

(99)

(180%)

187

165

22

13%

Net Gains, Losses, Appreciation and Depreciation

$ (288)

$ (112)

$ (176)

(157%)

$ (440)

$ 317

$ (757)

NM

Other Financial Data

NAV per Share

$ 19.88

$ 20.44

$ (0.56)

(3%)

$ 19.88

$ 20.50

$ (0.62)

(3%)

Market Capitalization

$ 3,345

$ 3,157

$ 188

6%

$ 3,345

$ 3,899

$ (554)

(14%)

Total Enterprise Value(5)

$ 4,119

$ 5,562

$ (1,443)

(26%)

$ 4,119

$ 4,926

$ (807)

(16%)

Asset Coverage Ratio

482%

300%

482%

419%

Debt to Equity Ratio

0.3x

0.5x

0.3x

0.3x

Credit Quality

Weighted Average Effective Interest Rate on SFRLs at Period End

4.4%

4.2%

4.4%

4.4%

Weighted Average Effective Interest Rate on Debt Investments, Excluding SFRLs, at Period End

8.5%

8.7%

8.5%

8.2%

Weighted Average Effective Interest Rate on European Capital's Debt Investments at Period End

2.7%

3.7%

2.7%

5.0%

Weighted Average Effective Interest Rate on All Debt Investments at Period End

8.4%

6.5%

8.4%

6.6%

European Capital Loans on Non-Accrual at Cost

$ 95

$ 163

$ (68)

(42%)

$ 95

$ 170

$ (75)

(44%)

Loans on Non-Accrual at Cost, excluding European Capital

$ 185

$ 179

$ 6

3%

$ 185

$ 201

$ (16)

(8%)

Total Loans on Non-Accrual at Cost

$ 280

$ 342

$ (62)

(18%)

$ 280

$ 371

$ (91)

(25%)

European Capital Loans on Non-Accrual at Fair Value

$ 18

$ 42

$ (24)

(57%)

$ 18

$ 32

$ (14)

(44%)

Loans on Non-Accrual at Fair Value, excluding European Capital

$ 103

$ 85

$ 18

21%

$ 103

$ 116

$ (13)

(11%)

Total Loans on Non-Accrual at Fair Value

$ 121

$ 127

$ (6)

(5%)

$ 121

$ 148

$ (27)

(18%)

Total Non-Accrual Loans at Cost as a Percentage of Total Loans at Cost

10.6%

7.3%

10.6%

9.4%

Total Non-Accrual Loans at Fair Value as a Percentage of Total Loans at Fair Value

4.9%

2.9%

4.9%

4.0%

Total Non-Accrual Loans at Fair Value as a Percentage of Non-Accruing Loans at Cost

43.2%

37.1%

43.2%

39.9%

Estimated Loss on Non-Accrual Loans(6)

$ 209

$ 215

$ (6)

(3%)

$ 906

$ 648

$ 258

40%

Estimated Loss as a Percentage of Total Loans at Cost

7.1%

4.7%

34.2%

16.4%

Past Due Loans at Cost

$ -

$ -

$ -

-%

$ -

$ -

$ -

-%

Debt to Equity Conversions at Cost

$ -

$ 3

$ (3)

(100%)

$ 61

$ 9

$ 52

578%

Return on Average Equity

LTM Net Operating Income Before Income Taxes Return on Average Shareholders' Equity

7.1%

6.3%

7.1%

3.5%

LTM Net Operating Income Return on Average Shareholders' Equity

4.8%

4.2%

4.8%

2.2%

LTM Net Realized (Loss) Earnings Return on Average Shareholders' Equity

(7.1%)

(2.6%)

(7.1%)

5.1%

LTM Net (Loss) Earnings Return on Average Shareholders' Equity

(3.5%)

1.4%

(3.5%)

8.2%

Current Quarter Annualized Net Operating Income Before Income Taxes Return on Average
Shareholders' Equity

7.6%

8.0%

Current Quarter Annualized Net Operating Income Return on Average Shareholders' Equity

4.9%

5.6%

Current Quarter Annualized Net Realized (Loss) Earnings Return on Average Shareholders' Equity

(5.8%)

1.3%

Current Quarter Annualized Net Loss Return on Average Shareholders' Equity

(17.9%)

(2.7%)

______________________________
NM = Not meaningful
Note: Effective October 1, 2014, European Capital's financial results have been consolidated with the financial results of American Capital.

American Capital Ltd. issued this content on 17 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 17 February 2016 12:11:13 UTC

Original Document: http://ir.americancapital.com/phoenix.zhtml?c=109982&p=irol-newsArticle&ID=2139907