BETHESDA, Md., Dec. 21 /PRNewswire/ -- American Capital Strategies (Nasdaq:ACAS) announced today that it has completed an excellent year, investing $150 million in fourteen transactions and declaring dividends totaling $1.34 per share. The company also continued implementing its strategy of operating regional offices and now has seven offices nationwide.
The following are highlights of 1998:
| Dividends Declared 1998 |
| Q1 |
$0.25 |
| Q2 |
$0.29 |
| Q3 |
$0.32 |
| Q4 |
$0.37 |
| Bonus Dividend |
$0.11 |
|
| Total Dividend |
$1.34 |
|
Click here for more information on American Capital’s dividend history.
NEW INVESTMENTS
| Quarter |
Company |
Amount of Investment |
| Q1 |
JAG Industries, Inc. |
$4.0 million |
| Q1 |
Specialty Transportation Services, Inc. |
$8.5 million |
| Q1 |
Chance Coach Inc. |
$16.3 million |
| Q2 |
Four-S Baking Company |
$1.0 million |
| Q2 |
The L.A. Studios, Inc. |
$3.3 million |
| Q2 |
Decorative Surfaces International, Inc. |
$15.6 million |
| Q2 |
New Piper Aircraft, Inc. |
$20.0 million |
| Q2 |
BIW Connector Systems, LLC |
$0.3 million |
| Q3 |
Electrolux |
$7.5 million |
| Q3 |
Cycle Gear, Inc. |
$6.0 million |
| Q3 |
Wilderness Systems, Inc. |
$6.0 million |
| Q4 |
Euro-Caribe Packing Company, Inc. |
$18.0 million |
| Q4 |
ConStar International, Inc. |
$16.5 million |
| Q4 |
Centennial Broadcasting, LLC |
$15.0 million |
|
| Total Investments in 1998* |
$150.0 million |
|
* Includes $7.6 million of funds committed but undrawn under one acquisition facility and two working capital facilities.
American Capital invested $35.0 million in recapitalizations, $31.9 million in ESOP buyouts, $26.8 million in acquisition financings, $20.5 million in buyouts, $18 million in buyout financing, $7.5 million in debt purchases, $6 million in roll-up financings, $3.3 million in growth financings and $1 million in stock purchases. Of these, $37 million of the investments were made in ESOP companies. American Capital also received loan repayments totaling $1.7 million during the year. For more information on ESOP companies, please click here. For more information on American Capital’s portfolio companies, click here.
American Capital President and CEO Malon Wilkus commented, “We have had a great year. We deployed $50 million dollars in the 4th quarter, bringing the total for all of 1998 to $150 million. This put the year right on target with expectations. We obtained a credit facility through LaSalle National Bank and are pleased with the quality of our investments. Our staff and number of offices have grown to serve the tremendous demands of middle market companies for debt and equity financing. We look forward to many new opportunities in 1999. Finally, we thank all of our shareholders for supporting us during the recent market turmoil.”
John Erickson, Chief Financial Officer, added, “During 1998 American Capital reviewed more than 1,500 opportunities in order to invest in thirteen companies. Our commitment to due diligence, credit quality, and underwriting is evident in the quality of the investments made during 1998. We have developed a strong and diverse portfolio of outstanding companies in a variety of sectors including manufacturing, service and media. We implemented a loan grading system in 1998 and, all of the portfolio companies are rated good to excellent; none of the loans are delinquent.”
David Gladstone, Vice Chairman, said, “The Company exceeded the projections for 1998 that we told our investors we would meet. We have booked the loans we needed to book and paid dividends in excess of the original projections.”
Adam Blumenthal, Executive Vice President, commented, “Our deal stream has improved in quality and quantity over the course of the year. We executed employee buyouts, management buyouts, and growth and acquisition financings in a wide range of industries last year. During 1999 we expect to steer the company increasingly toward creative transactions where we add value in structuring and negotiation as well as financing.
American Capital is a buyout and specialty finance company with capital resources exceeding $190 million. American Capital invests $3 to $20 million in the form of senior debt, subordinated debt and equity to middle market companies in need of capital for growth, acquisitions, ESOP buyouts, management buyouts, liquidity and restructurings. Companies interested in learning more about American Capital and its unique and flexible financing should contact John Hoffmire, Vice President of Sales and Marketing, at 781-862-4447 or visit its website at www.American-Capital.com or its shareholder site at www.ACAS1.com.
This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The statements regarding expected results of American Capital Strategies are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
