Bethesda, MD - December 12, 2003 - American Capital Strategies Ltd. (Nasdaq:ACAS)announced today that its Board of Directors has declared an additional dividend on its common stock of $0.06 per share payable on January 12, 2004 to shareholders of record as of December 31, 2003. Total dividends declared for 2003 are $2.79 per share, an increase of 9% over 2002.
American Capital must make certain distributions of its taxable income in order to maintain its tax status as a regulated investment company. Investors can refer to the Company's most recent report on form 10-K for more information about its tax status. The Company intends to retain long-term capital gains and treat them as deemed distributions for tax purposes. Therefore, the taxable income that is distributed as dividends would be expected to be treated as ordinary income for tax purposes. Taxable income differs from GAAP income because of both temporary and permanent differences in income and expense recognition. For example, changes in unrealized appreciation and depreciation have no impact on the Company's taxable income. American Capital reports the estimated tax characteristics of each dividend when declared, while the actual tax characteristics of dividends are reported annually to each stockholder on Form 1099DIV. This additional dividend is expected to be a distribution of ordinary income.
A summary of American Capital's dividend history follows. American Capital offers a Dividend Reinvestment Plan (DRIP). For more information regarding this Plan, please visit http://www.americancapital.com/investor_relations/dividends/dividend_reinvestment.cfm for call its Shareholder Relations Department at (301) 841-1359.
AMERICAN CAPITAL'S DIVIDEND HISTORY
$13.12 Declared Since August 1997 IPO
|
|
| Year/Quarter |
Dividend
Amount |
%Change Over
Prior Year Quarter,
Prior Year Total |
Additional
Dividend |
Total |
| 2003 |
$2.73 |
7% |
$0.06 |
$2.79 |
| Q4 |
$0.69 |
3% |
|
|
| Q3 |
$0.69 |
5% |
|
|
| Q2 |
$0.68 |
8% |
|
|
| Q1 |
$0.67 |
14% |
|
|
|
| 2002 |
$2.55 |
15% |
$0.02 |
$2.57 |
| Q4 |
$0.67 |
18% |
|
|
| Q3 |
$0.66 |
18% |
|
|
| Q2 |
$0.63 |
15% |
|
|
| Q1 |
$0.59 |
11% |
|
|
|
| 2001 |
$2.21 |
13% |
$0.09 |
$2.30 |
| Q4 |
$0.57 |
10% |
|
|
| Q3 |
$0.56 |
14% |
|
|
| Q2 |
$0.55 |
12% |
|
|
| Q1 |
$0.53 |
18% |
|
|
|
| 2000 |
$1.95 |
14% |
$0.22 |
$2.17 |
| Q4 |
$0.52 |
18% |
|
|
| Q3 |
$0.49 |
14% |
|
|
| Q2 |
$0.49 |
14% |
|
|
| Q1 |
$0.45 |
10% |
|
|
|
| 1999 |
$1.71 |
39% |
$0.03 |
$1.74 |
| Q4 |
$0.44 |
19% |
|
|
| Q3 |
$0.43 |
34% |
|
|
| Q2 |
$0.43 |
48% |
|
|
| Q1 |
$0.41 |
64% |
|
|
|
| 1998 |
$1.23 |
N/A |
$0.11 |
$1.34 |
| Q4 |
$0.37 |
76% |
|
|
| Q3 |
$0.32 |
N/A |
|
|
| Q2 |
$0.29 |
N/A |
|
|
| Q1 |
$0.25 |
N/A |
|
|
|
| 1997 Q4 |
$0.21 |
|
|
$0.21 |
|
| TOTAL |
|
|
|
$13.12 |
|
|
American Capital is a publicly traded buyout and mezzanine fund with capital resources in excess of $2 billion. American Capital is an equity partner in management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
This press release contains forward-looking statements. 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.
