Financial Stock above Support Line: MVC Capital, Inc. (NYSE: MVC)

On Tuesday, MVC Capital, Inc. (NYSE: MVC) shifted green +0.32% in trading session and finally closed at $9.48. The firm after opening the first trading session at $9.53 Over the one year trading period, the stock has an above price of $10.97 and it’s below is recorded at $9.25. The company has a market cap of $178.418M. The company most recent volume stood at 65,567 shares as compared to its average volume of 38,851 shares.

MVC Capital, Inc. (NYSE: MVC) reported its financial results for the fiscal second quarter ended April 30, 2018.

  • Made two new yielding investments totaling $21M in the second quarter of 2018.

Invested $15.0M in a first lien loan in Apex Industrial Technologies, LLC (“Apex”).

Invested $6.0M in a second lien loan in Array Information Technology, Inc. (“Array”).

  • Made six follow-on investments totaling $6.8M during the second quarter of 2018.

Committed $6.0M to Custom Alloy Corporation (“Custom”) in the form of a first lien 10% short-term working capital loan that matures on August 31, 2018.  The funded amount as of April 30, 2018 was about $3.4M.

Loaned a total of $700,000 in two $350,000 installments to RuMe, Inc. (“RuMe”), increasing the subordinated loan amount to about $1.7M and extended the maturity to March 30, 2020.

Provided a $2.3M loan to MVC Automotive Group GmbH to be used for working capital purposes, increasing the bridge loan amount to about $7.1M and extending the maturity to June 30, 2019.

For the second quarter of fiscal 2018, the Company earned $4.6M in interest income and $886,000 in dividend and fee income, contrast to $3.4M and $509,000, respectively, for the same quarter of fiscal 2017.

The Company stated total operating income of $5.5M for the second quarter of fiscal 2018, contrast to $3.9M for the same quarter in 2017.  The Company stated net operating income of $1.6M for the second quarter of fiscal 2018, contrast to a net operating loss of $2.3M for the same quarter in 2017. Borrowing costs for the second quarter of 2018 were higher than what would have been anticipated on a normalized basis in Q2 2018, given an additional $600,000 in costs recognized in the quarter, as a result of the installment sale of U.S. Gas & Electric, Inc. (“USG&E”). On a go forward basis, this installment interest charge is presently estimated to be $85,000 quarterly3 and net operating income per share, when adjusted for incentive compensation and the $600,000 in installment interest mentioned above, would have been $1.2M or $.06 per share.

As of April 30, 2018, the Company’s net assets were $246.3M, or $13.09 per share, contrast with net assets of $252.6M, or $13.42 per share, at the end of the previous fiscal quarter.

 

In the quarter, the NAV reduced by $0.33 per share to $13.09 per share primarily Because of (1) declines in the stock price of two publicly-traded securities, Crius and Equus, (2) a decline in the Euro, and (3) the cash distribution paid to ordinary stockholders, partially offset by write-ups in the Company’s private securities totaling $2.1M or $.11 per share and net operating income before adjustments of $0.08 per share.

 

The average true range of MVC Capital, Inc.’s (MVC) is recorded at 0.12 and the relative strength index of the stock stands 45.70. The stock price is going above to its 52 week low with 2.49% and lagging behind from its 52 week high with -13.58%. Analyst recommendation for this stock stands at 2.00. A look on the firm performance, its monthly performance is -2.47% and a quarterly performance of -5.67%. The stock price is trading downbeat from its 200 days moving average with -7.06% and down from 50 days moving average with -2.10%.

As of April 30, 2018, MVC had investments in portfolio companies totaling $324.6M and cash and cash equivalents of $36.2M, including $5.3M in restricted cash.

 

At April 30, 2018, there were $25.0M in outstanding borrowings under MVC’s revolving credit facility with Branch Banking and Trust Company (“BB&T”) and no outstanding borrowings under its credit facility with Santander Bank N.A.  Subsequent to the quarter-end, the $25.0M borrowed under the BB&T line was repaid.

 

Danielle Lockwood

Danielle Lockwood is an experienced writer, editor and proofreader. She covers all Acquisition & Merger news of different companies. These companies registered on US exchanges i.e. NYSE, NASDAQ, AMEX, NYSEMKT etc. Danielle completed her Post-Graduate Diploma in Business Administration with a specialization in Finance from International School of Business and Media (ISB&M). She is married and lives in sunny West Central Florida with her husband and two children.

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