Bethesda, Maryland, - American Capital Strategies, Ltd. (Nasdaq:ACAS) today announced financial results for the third quarter ended September 30, 1997 after its initial public offering on August 29, 1997. The IPO changed the company from an investment bank to a buyout and specialty finance company financing small and medium sized businesses. ACAS raised $155,000,000 in the IPO.
The quarter ending September 30, represents only 22 days use of money from the public offering and is not indicative of the transformation that occurred with the public offering. Pre-tax net operating income was a small loss of $53,000 ($0.02 per share) for the third quarter of 1997 from a loss of $148,000 for the same quarter in 1996. Total revenues for the third quarter of 1997 were $959,000, compared with $466,000 for the third quarter of 1996. The net increase in shareholders equity resulting from operations for the quarter was $56,000, or $0.02 per share. Assets increased from $5,432,000 to $154,481,000.
ACAS will pay a dividend of $0.21 (twenty-one cents) per share on December 31, 1997, based on a record date of December 17, 1997. The entire amount of this dividend represents a distribution of ordinary income. ACAS intends to continue to distribute to shareholders on a quarterly basis at least 90% of its net investment income and net short-term gains. In addition, ACAS also intends to distribute substantially all of its remaining ordinary income (if any) in a special annual dividend that it anticipates declaring each December, beginning December 1997, and paying each January, beginning January 1998.
ACAS also announced the addition of Ira Wagner as a Principal. Mr. Wagner comes to ACAS from MONY Capital Markets where he was a Senior Vice President responsible for middle market private placement financing. ACAS also added John Freal as a Principal. Mr. Freal comes to ACAS after many years with a private buyout group where he was responsible for acquisitions and prior to that he was a senior associate at Meritor Financial Group.
AMERICAN CAPITAL STRATEGIES, LTD. & SUBSIDIARIES
Unaudited Financial Highlights
|
Three Months
Ended Sep. 30 |
Nine Months
Ended Sep. 30 |
| 1996 |
1997 |
1996 |
1997 |
| Total Revenues |
$466,000 |
$959,000 |
$1,758,000 |
$2,901,000 |
| Pre-Tax Operating Income |
($148,000) |
($53,000) |
($163,000) |
$250,000 |
| Earnings Per Share |
N/A |
($0.02) |
N/A |
$0.13 |
| Weighted Average |
| Shares Outstanding |
N/A |
3,446,681 |
N/A |
1,875,426 |
|
