-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KTrsjWi0ZpawftTsInjZ9o+LpRHbhj+RV4LvzjEamwv8FW0kp84XVf7vpN5SlSAv ZTJKR+SLAiIMMQp/qFuWrA== 0000912057-95-009903.txt : 19951119 0000912057-95-009903.hdr.sgml : 19951119 ACCESSION NUMBER: 0000912057-95-009903 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALLIED CAPITAL CORP CENTRAL INDEX KEY: 0000003845 STANDARD INDUSTRIAL CLASSIFICATION: [] IRS NUMBER: 530245085 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 811-00907 FILM NUMBER: 95591595 BUSINESS ADDRESS: STREET 1: 1666 K ST N W STE 901 CITY: WASHINGTON STATE: DC ZIP: 20006 BUSINESS PHONE: 2023311112 MAIL ADDRESS: STREET 2: 1666 K STREET NW 9TH FL CITY: WASHINGTON STATE: DC ZIP: 20006 10-Q 1 10-Q Form 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period Commission file number: ended SEPTEMBER 30, 1995 814-97 - ------------------------ ----------------------- ALLIED CAPITAL CORPORATION ------------------------------------------------------ (exact name of Registrant as specified in its charter) MARYLAND 53-0245085 - ------------------------------ -------------------- (State or jurisdiction of (IRS Employer incorporation or organization) Identification No.) 1666 K STREET, N.W. 9TH FLOOR WASHINGTON, DC 20006 ---------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code: (202) 331-1112 -------------- Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 12 of 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods as the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X NO --- --- On November 3, 1995 there were 6,185,660 shares outstanding of the Registrant's common stock, $1 par value. ALLIED CAPITAL CORPORATION AND SUBSIDIARIES FORM 10-Q INDEX PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Statement of Financial Position as of September 30, 1995 and December 31, 1994 . . . . . . . . . . . . . 1 Consolidated Statement of Operations - For the Three and Nine Months Ended September 30, 1995 and 1994 . . . . . . . . . . . 2 Consolidated Statement of Changes in Net Assets - For the Nine Months Ended September 30, 1995 and 1994 . . . . . . . . . . . 3 Consolidated Statement of Cash Flows - For the Nine Months Ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . 4 Notes to Consolidated Financial Statements. . . . . . . . . . . . . 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations . . . . . . . . . . . . . . . . . . . . . 7 PART II. OTHER INFORMATION Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . 11 Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . . . . . . 11 Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . . . . . . 11 Item 4. Submission of Matters to a Vote of Security Holders . . . . . . . . 11 Item 5. Other Information . . . . . . . . . . . . . . . . . . . . . . . . . 11 Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . . . . 11 Signatures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 PART I - FINANCIAL INFORMATION ITEM 1. Financial Statements ALLIED CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION (in thousands, except number of shares)
September 30, 1995 December 31, 1994 ------------------ ----------------- (unaudited) Assets Investments at Value: Loans and debt securities. . . . . . . . . . . . . . . $ 89,209 $ 84,949 Equity securities. . . . . . . . . . . . . . . . . . . 31,517 28,225 Other investment assets. . . . . . . . . . . . . . . . 1,093 1,852 ------------------ ----------------- Total investments . . . . . . . . . . . . . . . . . . 121,819 115,026 Cash and cash equivalents. . . . . . . . . . . . . . . . 10,963 6,609 U.S. government securities . . . . . . . . . . . . . . . 9,872 10,210 Other assets . . . . . . . . . . . . . . . . . . . . . . 2,936 3,672 ------------------ ----------------- Total assets. . . . . . . . . . . . . . . . . . . . . $145,590 $135,517 ================== ================= Liabilities Revolving line of credit . . . . . . . . . . . . . . . . $ -- $ 2,205 Debentures and notes payable . . . . . . . . . . . . . . 81,300 74,800 Accrued interest payable . . . . . . . . . . . . . . . . 1,976 1,393 Investment advisory fee payable. . . . . . . . . . . . . 731 658 Dividends and distributions payable. . . . . . . . . . . 165 3,910 Other liabilities. . . . . . . . . . . . . . . . . . . . 1,180 1,564 ------------------ ----------------- Total liabilities . . . . . . . . . . . . . . . . . . 85,352 84,530 ------------------ ----------------- Redeemable preferred stock . . . . . . . . . . . . . . . 1,000 1,000 ------------------ ----------------- Commitments and Contingencies Shareholders' Equity Preferred Stock of wholly owned subsidiary, $100 par value; 60,000 shares authorized, issued and outstanding at 9/30/95 and 12/31/94. . . . . . . . . 6,000 6,000 Common stock, $1 par value; 10,000,000 shares authorized; 6,185,660 and 6,152,703 shares issued and outstanding at 9/30/95 and 12/31/94 . . . 6,186 6,153 Additional paid-in capital . . . . . . . . . . . . . . 41,332 40,960 Notes receivable from sale of common stock . . . . . . (401) (816) Net unrealized appreciation on investments . . . . . . 7,661 1,110 Distributions in excess of accumulated earnings. . . . (1,540) (3,420) ------------------ ----------------- Total shareholders' equity . . . . . . . . . . 59,238 49,987 ------------------ ----------------- Total liabilities and shareholders' equity . . $145,590 $135,517 ================== =================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS 1 ALLIED CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (in thousands, except per share amounts) (unaudited)
For the Three Months Ended For the Nine Months Ended September 30 September 30 -------------------------- ------------------------- 1995 1994 1995 1994 -------- -------- -------- -------- Investment income: Interest . . . . . . . . . . . . . . . . . . . . . . . $ 2,929 $ 2,279 $ 8,645 $ 6,545 Dividends. . . . . . . . . . . . . . . . . . . . . . . 371 394 1,079 1,215 Other income . . . . . . . . . . . . . . . . . . . . . 264 45 618 59 -------- -------- -------- -------- Total investment income. . . . . . . . . . . . . . . 3,564 2,718 10,342 7,819 -------- -------- -------- -------- Expenses: Interest expense . . . . . . . . . . . . . . . . . . . 1,648 1,551 4,994 4,673 Investment advisory fee. . . . . . . . . . . . . . . . 731 591 2,077 1,698 Legal and audit fees . . . . . . . . . . . . . . . . . 131 (22) 499 310 Other operating expenses . . . . . . . . . . . . . . . 155 80 488 284 -------- -------- -------- -------- Total expenses . . . . . . . . . . . . . . . . . . . 2,665 2,200 8,058 6,965 -------- -------- -------- -------- Net investment income. . . . . . . . . . . . . . . . . . 899 518 2,284 854 Net realized gains on investments. . . . . . . . . . . . 3,289 236 3,584 2,024 -------- -------- -------- -------- Net investment income before net unrealized (depreciation) appreciation on investments . . . . . . 4,188 754 5,868 2,878 Net unrealized (depreciation) appreciation on investments . . . . . . . . . . . . . . . . . . . . (1,099) (809) 6,551 460 -------- -------- -------- -------- Net increase (decrease) in net assets resulting from operations. . . . . . . . . . . . . . . . . . . . . . $ 3,089 $ (55) $ 12,419 $ 3,338 ======== ======== ======== ======== Earnings (loss) per common share . . . . . . . . . . . . $ 0.49 $ (0.02) $ 1.97 $ 0.51 ======== ======== ======== ======== Weighted average number of common shares and common share equivalents outstanding . . . . . . . . . 6,193 6,146 6,207 6,188 ======== ======== ======== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS 2 ALLIED CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS (in thousands, except per share amounts) (unaudited)
For the Nine Months Ended September 30 -------------------------------------- 1995 1994 ---------- ---------- Increase in net assets resulting from operations: Net investment income. . . . . . . . . . . . . . . . . . . . . $ 2,284 $ 854 Net realized gains on investments. . . . . . . . . . . . . . . 3,584 2,024 Net change in unrealized appreciation on investments . . . . . 6,551 460 ---------- ---------- Net increase in net assets resulting from operations . . . 12,419 3,338 Distributions to shareholders: Common stock dividend. . . . . . . . . . . . . . . . . . . . . (3,823) (3,672) Preferred stock dividend . . . . . . . . . . . . . . . . . . . (165) (165) Capital Share Transactions . . . . . . . . . . . . . . . . . . . 820 272 ---------- ---------- Net increase (decrease) in net assets. . . . . . . . . . . . . . 9,251 (227) Net assets at beginning of the period. . . . . . . . . . . . . . 49,987 58,185 ---------- ---------- Net assets at end of Period. . . . . . . . . . . . . . . . . . . 59,238 57,958 Preferred stock of wholly-owned subsidiary . . . . . . . . . . . 6,000 6,000 ---------- ---------- Net asset value available to common shareholders . . . . . . . . $ 53,238 $ 51,958 ========== ========== Net asset value per common share . . . . . . . . . . . . . . . . $ 8.61 $ 8.41 ========== ========== Common shares outstanding at end of period . . . . . . . . . . . 6,186 6,176 ========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS 3 ALLIED CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CASH FLOWS (in thousands) (unaudited)
For the Nine Months Ended September 30, --------------------------------------- 1995 1994 ---------- ---------- Cash Flows From Operating Activities: Net increase in net assets resulting from operations . . . . . . . . $ 12,419 $ 3,338 Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: Net unrealized appreciation on investments. . . . . . . . . . . . (6,551) (460) Net realized gains on investments . . . . . . . . . . . . . . . . (3,584) (2,024) Changes in assets and liabilities: Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . 736 356 Accrued interest payable. . . . . . . . . . . . . . . . . . . . . 583 467 Investment advisory fee payable . . . . . . . . . . . . . . . . . 73 186 Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . (384) 445 ---------- ---------- Net cash provided by operating activities. . . . . . . . . . . 3,292 2,308 ---------- ---------- Cash Flows From Investing Activities: Net decrease in investments . . . . . . . . . . . . . . . . . . . (350) (11,344) Net redemption (purchase) of U.S. government securities . . . . . 338 (1,150) Payments on notes receivable. . . . . . . . . . . . . . . . . . . 415 16 ---------- ---------- Net cash provided by (used in) investing activities. . . . . . 403 (12,478) ---------- ---------- Cash Flows From Financing Activities: Common distributions paid . . . . . . . . . . . . . . . . . . . . (3,416) (7,139) Preferred distributions paid. . . . . . . . . . . . . . . . . . . (220) (220) Proceeds from the issuance of SBA debentures. . . . . . . . . . . 14,000 7,000 Payment of SBA debentures . . . . . . . . . . . . . . . . . . . . (7,500) (2,000) Payments on revolving line of credit. . . . . . . . . . . . . . . (2,205) -- ---------- ---------- Net cash provided by (used in) financing activities. . . . . . 659 (2,359) ---------- ---------- Net increase (decrease) in cash and cash equivalents . . . . . . . . . 4,354 (12,529) Cash and cash equivalents, beginning of period . . . . . . . . . . . . 6,609 24,358 ---------- ---------- Cash and cash equivalents, end of period . . . . . . . . . . . . . . . $ 10,963 $ 11,829 ========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS 4 ALLIED CAPITAL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 1995 (UNAUDITED) NOTE 1. GENERAL In the opinion of management, the accompanying unaudited consolidated financial statements of Allied Capital Corporation and subsidiaries (the Company) contain all adjustments (consisting only of normal recurring accruals) necessary to present fairly the Company's consolidated financial position as of September 30, 1995 and the results of operations, changes in net assets, and cash flows for the periods indicated. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 1994 Annual Report. The results of operations for the nine months ended September 30, 1995 are not necessarily indicative of the operating results to be expected for the full year. Certain reclassifications have been made to the 1994 financial statements in order to conform to the 1995 presentation. NOTE 2. DISTRIBUTIONS The Company's Board of Directors declared a $0.22 per share third quarter dividend that was paid on September 29, 1995 to shareholders of record as of September 15, 1995. The Company paid cash of $1,206,000 and distributed new shares of common stock with a value of $153,000 in connection with this dividend. The Board of Directors declared quarterly dividends of $0.20 per share for the first and second quarters of 1995 that were paid on March 29, 1995 and June 28, 1995, respectively, to shareholders. In connection with these dividends, the Company paid cash of $2,210,000 and distributed new shares of common stock with a value of $253,000. The Company owned all of the outstanding capital stock of Allied Capital Lending Corporation ("Allied Lending") prior to consummation of the initial public offering of Allied Lending shares in November 1993. As a result of that initial public offering, the Company's ownership of Allied Lending shares was reduced to 1,580,000 shares, or approximately 36% of the Allied Lending shares outstanding at December 31, 1993. The Company has agreed that it would divest itself of all shares of Allied Lending by December 31, 1998 by public offerings, private placements, distributions to the Company's shareholders or otherwise. The Company declared an extra dividend in December 1994 and distributed on January 6, 1995 an aggregate of 335,086 Allied Lending shares, which reduced its ownership of Allied Lending shares to 1,244,914 shares, or approximately 28% of the Allied Lending shares then outstanding. NOTE 3. DEBT On September 27, 1995, the Company had $7.5 million in SBA debentures that matured. The Company obtained new SBA debentures totaling $14 million on September 27, 1995. Proceeds from these new debentures were used to repay the matured debentures. During the third quarter of 1995, the Company applied for a forward commitment from the SBA to provide for up to $6 million in financing to its SSBIC subsidiary. The Company has received $1.3 million from the SBA for this financing; however, the Company must first submit an application to draw on the committed funds and receive SBA approval of that application. On April 10, 1995, the Company entered into a loan agreement with the Overseas Private Investment Corporation under which the Company may borrow up to $20 million to provide financing for international projects involving qualifying U.S. small businesses. Loans made under this agreement bear interest at the U.S. Treasury Rate plus .5% and have a ten year maturity from the date of disbursement. The loan agreement expires on the earlier of the first date on which the amount of the loan(s) equal $20 million or April 10, 1998. At September 30, 1995, there were no outstanding borrowings under the loan agreement. NOTE 4. EARNINGS PER SHARE 5 Earnings per share is computed assuming that all issuances of the Company's common stock in connection with its dividend reinvestment plan are outstanding for all periods presented. During 1995, the Company has issued 32,957 shares of common stock pursuant to the dividend reinvestment plan. The weighted average number of shares and share equivalents outstanding for the three and nine months ended September 30, 1994 have been restated to include the 1995 common stock issuances under the dividend reinvestment plan. In addition, the computation of net assets per common share as of September 30, 1994 has been restated to reflect the issuance of common stock pursuant to the dividend reinvestment plan during 1995. NOTE 5. COMMITMENTS AND CONTINGENCIES Commitments. The Company had loan commitments outstanding equal to $13.6 million at September 30, 1995 to invest in various existing and prospective portfolio companies. Litigation. The Company is a party to a number of lawsuits in connection with loans it has made to small businesses. In the opinion of the Company's management, none of these proceedings are material in relation to the Company's consolidated financial position. 6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES Total investments increased by $6.8 million or 5.9% to $121.8 million at September 30, 1995 from $115 million at December 31, 1994. This increase was primarily due to valuation changes in the portfolio resulting in net unrealized appreciation of $6.5 million for the nine month period. In the first nine months of 1995, the Company invested approximately $17.8 million in small business concerns, and received repayments and early payoffs from other small businesses of approximately $17.5 million. Cash and cash equivalents increased $4.4 million primarily due to net cash provided by operating activities. On September 27, 1995, the Company had $7.5 million in SBA debentures that matured. The Company obtained new SBA debentures totaling $14 million on September 27, 1995. Proceeds from these new debentures were used to repay the matured debentures. During the third quarter of 1995, the Company applied for a forward commitment from the SBA to provide for up to $6 million in financing to its SSBIC subsidiary. The Company will be able to draw $1.3 million from the SBA for this financing; however, the Company must first submit an application to draw on the committed funds and receive SBA approval of that application. The Company has a revolving line of credit for $10 million which expires November 30, 1995. The Company anticipates renewing this line of credit for similar terms. The Company has secured a credit facility with the Oversees Private Investment Corporation for up to $20 million in financing for international projects involving small businesses. At September 30, 1995, outstanding commitments for future financings were $14 million. Given the availability of the SBA commitment, the Oversees Private Investment Corporation facility, current cash and government securities available at September 30, 1995, and its available line of credit, the Company believes that it has adequate capital to continue to satisfy its operating needs, commitments and other future investment opportunities that may arise throughout the remainder of the year. The Company continues to explore obtaining new debt or equity capital sources as well. RESULTS OF OPERATIONS THIRD QUARTER ENDED SEPTEMBER 30, 1995 COMPARED WITH THIRD QUARTER ENDED SEPTEMBER 30, 1994. The net increase in net assets resulting from operations for the third quarter of 1995 was $3.1 million as compared to the 1994 net decrease in net assets resulting from operations of $55,000. Earnings per common share for the quarter increased to $0.49 per common share from ($0.02) per common share for the same quarter in 1994. Total investment income increased 31% from $2.7 million to $3.6 million compared with the third quarter of last year. Interest income increased due to a reduction in the Company s non-performing assets since the end of 1994 and an increase in loans and debt securities outstanding. The Company also received a prepayment penalty on the early payoff of a debt in the third quarter of 1995 totaling $60,000. Other income consists primarily of $105,000 of litigation costs from prior periods recovered during the third quarter of 1995 and $130,000 of income from an equity participation in one portfolio company. Expenses increased 21% from $2.2 million to $2.7 million compared with the corresponding period in 1994. Investment advisory fee expense increased due to an increase in investments and other assets upon which the investment advisory fee is based. The largest single factor effecting the increase in net assets resulting from operations for the third quarter ended September 30, 1995 resulted from an increase of $3 million in net realized gains on investments resulting from the disposition or early payoff of investments. A few of the early payoffs were due to portfolio companies being sold. Net realized gains are unpredictable; however, the Company exits transactions when it believes the realized gains can be maximized. NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED WITH NINE MONTHS ENDED SEPTEMBER 30, 1994. 7 Net increase in net assets resulting from operations for the nine months ended September 30, 1995 increased to $12.4 million or 272% from $3.3 million in the same period of 1994. Earnings per common share for the period increased to $1.97 per common share from $0.51 per common share in 1994. The net increase in net assets resulting from operations for the first nine months was caused by the same factors discussed in the quarter-to-quarter comparison above. 8 PORTFOLIO CHANGES The following represents portfolio investment balances in the Company as of September 30, 1995 that have changes in appreciation or depreciation by more than 10% as compared to the appreciation or depreciation as of December 31, 1994.
Appreciation (Depreciation) ------------------------------------- Investment Company September 30, 1995 December 31, 1994 $ Change Percent Change - ------------------ ------------------ ----------------- ----------- ------------- Allied Waste $ 946,720 $ 0 $ 946,720 * Bellefonte Lime Company 517,250 88,098 429,152 487% Broadcast Holdings (139,163) (1,049,212) 910,049 87% Consumer Health (180,019) (125,642) (54,377) (43%) CSG Holdings (103,459) 0 (103,459) * Devlieg-Bullard, Inc. 124,276 0 124,276 * DMI Furniture (220,232) 75,770 (296,002) (391%) Edwards Heating & Air Conditioning (1,893,422) (1,423,704) (469,718) (33%) Envirco Corp ** 155,784 (155,789) (100%) Environmental Control Group ** (16,480) 16,480 100% Enviroplan (672,504) 84,136 (756,640) (899%) Esquire Communications 33,300 0 33,300 * Garden Ridge 4,125,073 508,736 3,616,337 711% Gateway Health (456,802) (1,083) (455,719) (42,079%) Geneoa Mine Acquisition 488,805 0 488,805 * Genlime Group 474,816 0 474,816 * Global Software 606,704 0 606,704 * Grant Broadcasting 370,354 0 370,354 * ICON Trade Credits (810,642) (150,000) (660,642) (440%) Jackson Products ** 73,367 (73,367) (100%) June Broadcasting 1,621,927 524,327 1,097,600 209% Markings and Equipment (632,640) (315,000) (317,640) (101%) May Investments (46,902) 0 (46,902) * M.I.K. Enterprises 0 (651,732) 651,732 100% Mill It Striping (125,000) 0 (125,000) * MLX Corporation (179,837) (216,673) 36,836 17% Momentum Broadcasting ** (46,886) 46,886 100% M-Tec ** (660,642) 660,642 100% NNS Corporation (108,586) (79,294) (29,292) 37% Nobel Education Dynamics 642,525 0 642,525 * 9 Old Mill (44,658) 0 (44,658) * Piatl Holdings (223,049) (160,833) (62,216) (39%) Pizza shops (11 loans) (644,731) (180,754) (463,977) (257%) Lona & George Reeves (72,880) (53,690) (19,190) (36%) R-Tex Decoratives (32,377) 0 (32,377) * Spa Lending Corporation (2,174,740) (1,459,955) (714,785) (49%) Timbercreek ** (16,667) 16,667 100% Trion, Inc. (65,856) 0 (65,856) * West Virginia Radio Corporation (200,000) (122,113) (77,887) (64%) Williams Brothers 1,598,575 2,001,948 (403,372) (20%)
* Percentage not applicable due to zero balance at December 31, 1994. ** Appreciation (depreciation) at September 30, 1995 is not applicable as the investment was repaid, sold, or written off between December 31, 1994 and September 30, 1995. 10 PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS The Company is not a defendant in any material pending legal proceeding and no such material proceedings are known to be contemplated. ITEM 2. CHANGES IN SECURITIES No material changes have occurred in the securities of the Registrant. ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not applicable ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None ITEM 5. OTHER INFORMATION None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) List of Exhibits 11 Statement of Computation of Earnings Per Share (b) Reports on Form 8-K No reports on Form 8-K were filed by the Company during the quarter ended September 30, 1995. 11 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized. ALLIED CAPITAL CORPORATION (Registrant) Date: November 14, 1995 --------------------------------------- Jon A. DeLuca Senior Vice President and Chief Financial Officer 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized. ALLIED CAPITAL CORPORATION (Registrant) Date: November 14, 1995 /s/ JON A. DELUCA ------------------------------------- Jon A. DeLuca Senior Vice President and Chief Financial Officer 13 EX-11 2 EXHIBIT 11 ALLIED CAPITAL CORPORATION AND SUBSIDIARIES EXHIBIT 11 COMPUTATION OF EARNINGS PER COMMON SHARE FORM 10-Q SEPTEMBER 30, 1995
For the Three Months Ended For the Nine Months Ended September 30, September 30, --------------------------- --------------------------- 1995 1994 1995 1994 ------------ ------------ ----------- ----------- Primary Earnings Per Common Share: Net Increase (Decrease) in Net Assets Resulting from Operations $3,089,000 ($55,000) $12,419,000 $3,338,000 Less: Dividends for Preferred Stock (55,000) (55,000) (165,000) (165,000) ------------ ------------ ------------- ------------ Net Increase (Decrease) in Net Assets Resulting from Operations Available to Common Shareholders $3,034,000 ($110,000) $12,254,000 $3,173,000 ============ ============ ============= ============ Weighted average number of common shares outstanding 6,174,047 6,134,289 6,174,047 6,129,110 Dividend reinvestment plan common shares issued 11,613 11,613 32,957 32,957 Weighted average number of common shares issuable on exercise of outstanding stock options 7,695 -- 397 25,634 ------------ ------------ ------------- ------------ Weighted average number of common shares and common share equivalents outstanding 6,193,355 6,145,902 6,207,401 6,187,701 ============ ============ ============= =========== Earnings (Loss) per Common Share $0.49 ($0.02) $1.97 $0.51 ============ ============ ============= =========== Fully Diluted Earnings Per Common Share: Net Increase (Decrease) in Net Assets Resulting from Operations $3,089,000 ($55,000) $12,419,000 $3,338,000 Less: Dividends for Preferred Stock (55,000) (55,000) (165,000) (165,000) ------------ ------------ ------------- ------------ Net Increase (Decrease) in Net Assets Resulting from Operations Available to Common Shareholders $3,034,000 ($110,000) $12,254,000 $3,173,000 ============ ============ ============= ============ Weighted average number of common shares and common share equivalents outstanding as computed for primary earnings per share 6,193,355 6,145,902 6,207,401 6,187,701 Weighted average of additional shares issuable on exercise of outstanding stock options 7,963 -- 13,976 -- ------------ ------------ ----------- ----------- Weighted average number of common shares and common share equivalents outstanding, as adjusted 6,201,318 6,145,902 6,221,377 6,187,701 ============ ============ ============= ============ Earnings (Loss) per Common Share $0.49 ($0.02) $1.97 $0.51 ============ ============ ============= ============
EX-27 3 EXHIBIT 27 (FDS)
6 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ALLIED CAPITAL CORPORATION AND SUBSIDIARIES' CONSOLIDATED STATEMENT OF FINANCIAL POSITION, CONSOLIDATED STATEMENT OF OPERATIONS, CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS AND STATEMENT OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1995 JAN-01-1995 SEP-30-1995 113,980 121,819 0 2,936 20,835 145,590 0 81,300 4,052 85,352 12,186 41,332 6,186 6,174 2,284 0 3,584 0 7,661 59,238 1,079 8,645 618 8,058 2,284 3,584 6,551 12,419 0 2,284 1,539 0 0 0 33 9,251 854 2,024 3,420 0 2,077 4,994 8,058 54,600 7.11 .37 1.63 .37 .25 0 8.61 .15 74,800 12.09
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