<PAGE>
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.
<PAGE>
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
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
ALLIED CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(in thousands, except number of shares)
<TABLE>
<CAPTION>
September 30, 1995 December 31, 1994
------------------ -----------------
(unaudited)
<S> <C> <C>
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
================== =================
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
1
<PAGE>
ALLIED CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
September 30 September 30
-------------------------- -------------------------
1995 1994 1995 1994
-------- -------- -------- --------
<S> <C> <C> <C> <C>
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
======== ======== ======== ========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
2
<PAGE>
ALLIED CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
(in thousands, except per share amounts)
(unaudited)
<TABLE>
<CAPTION>
For the Nine Months Ended September 30
--------------------------------------
1995 1994
---------- ----------
<S> <C> <C>
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
========== ==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
3
<PAGE>
ALLIED CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands)
(unaudited)
<TABLE>
<CAPTION>
For the Nine Months Ended September 30,
---------------------------------------
1995 1994
---------- ----------
<S> <C> <C>
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
========== ==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS
4
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
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.
<TABLE>
<CAPTION>
Appreciation (Depreciation)
-------------------------------------
Investment Company September 30, 1995 December 31, 1994 $ Change Percent Change
- ------------------ ------------------ ----------------- ----------- -------------
<S> <C> <C> <C> <C>
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
<PAGE>
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%)
</TABLE>
* 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
<PAGE>
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
<PAGE>
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
<PAGE>
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
<PAGE>
ALLIED CAPITAL CORPORATION AND SUBSIDIARIES
EXHIBIT 11 COMPUTATION OF EARNINGS PER COMMON SHARE
FORM 10-Q
SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
For the Three Months Ended For the Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
1995 1994 1995 1994
------------ ------------ ----------- -----------
<S> <C> <C> <C> <C>
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
============ ============ ============= ============
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<LEGEND>
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.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 113,980
<INVESTMENTS-AT-VALUE> 121,819
<RECEIVABLES> 0
<ASSETS-OTHER> 2,936
<OTHER-ITEMS-ASSETS> 20,835
<TOTAL-ASSETS> 145,590
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 81,300
<OTHER-ITEMS-LIABILITIES> 4,052
<TOTAL-LIABILITIES> 85,352
<SENIOR-EQUITY> 12,186
<PAID-IN-CAPITAL-COMMON> 41,332
<SHARES-COMMON-STOCK> 6,186
<SHARES-COMMON-PRIOR> 6,174
<ACCUMULATED-NII-CURRENT> 2,284
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 3,584
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 7,661
<NET-ASSETS> 59,238
<DIVIDEND-INCOME> 1,079
<INTEREST-INCOME> 8,645
<OTHER-INCOME> 618
<EXPENSES-NET> 8,058
<NET-INVESTMENT-INCOME> 2,284
<REALIZED-GAINS-CURRENT> 3,584
<APPREC-INCREASE-CURRENT> 6,551
<NET-CHANGE-FROM-OPS> 12,419
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 2,284
<DISTRIBUTIONS-OF-GAINS> 1,539
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 33
<NET-CHANGE-IN-ASSETS> 9,251
<ACCUMULATED-NII-PRIOR> 854
<ACCUMULATED-GAINS-PRIOR> 2,024
<OVERDISTRIB-NII-PRIOR> 3,420
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,077
<INTEREST-EXPENSE> 4,994
<GROSS-EXPENSE> 8,058
<AVERAGE-NET-ASSETS> 54,600
<PER-SHARE-NAV-BEGIN> 7.11
<PER-SHARE-NII> .37
<PER-SHARE-GAIN-APPREC> 1.63
<PER-SHARE-DIVIDEND> .37
<PER-SHARE-DISTRIBUTIONS> .25
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 8.61
<EXPENSE-RATIO> .15
<AVG-DEBT-OUTSTANDING> 74,800
<AVG-DEBT-PER-SHARE> 12.09
</TABLE>
