Equus Announces Second Quarter Net Asset Value
Source: Nasdaq GlobeNewswire / 14 Aug 2019 16:41:34 America/New_York
HOUSTON, Aug. 14, 2019 (GLOBE NEWSWIRE) -- Equus Total Return, Inc. (NYSE: EQS) (the “Fund” or “Equus”) reports net assets as of June 30, 2019, of $47.9 million, an increase of approximately $1.3 million since March 31, 2019. Net asset value per share increased to $3.55 as of June 30, 2019 from $3.44 as of March 31, 2019. Comparative data is summarized below (in thousands, except per share amounts):
As of the Quarter Ended 6/30/2019 3/31/2019 12/31/2018 9/30/2018 6/30/2018 Net assets $47,933 $46,552 $43,495 $46,571 $44,132 Shares outstanding 13,518 13,518 13,518 13,518 13,518 Net assets per share $3.55 $3.44 $3.22 $3.45 $3.26
The following were the portfolio companies that had increases to their fair values during the second quarter of 2019:
- Increase in Value of PalletOne. Equus holds an 18.7% fully-diluted share interest in PalletOne, Inc. (“PalletOne”) one of the nation’s largest wooden pallet manufacturers and a major supplier of treated lumber in the southeastern United States. The fair value of the Fund’s share interest in PalletOne increased from $22.5 million to $24.5 million during the second quarter of 2019, principally as a result of strong operational results and overall improvement in comparable industry sectors during the quarter. The Fund received advice and assistance from a third-party valuation firm to support its determination of the fair value of this investment.
- Increase in the Value of MVC Capital Shares. The trading price of MVC Capital, Inc.’s (“MVC”) common stock increased from $9.07 per share on March 31, 2019 to $9.21 per share on June 30, 2019. In addition, the Fund also received 8,807 MVC shares as dividends during the quarter, resulting in a total of 544,813 MVC shares held at June 30, 2019. The fair value of this holding increased from $4.9 million at March 31, 2019 to $5.0 million as of June 30, 2019.
Also during the quarter, the Fund dissolved Equus Media Development Company, LLC (“EMDC”), a wholly-owned subsidiary of the Fund, and transferred EMDC’s assets, consisting of approximately $210,000 in cash and various entertainment properties, to the Fund. The Fund incurred a realized loss of $2.8 million in connection with the dissolution of EMDC.
The Fund is a business development company that trades as a closed-end fund on the New York Stock Exchange under the symbol "EQS". Additional information on the Fund may be obtained from the Fund’s website at www.equuscap.com.
This press release may contain certain forward-looking statements regarding future circumstances. These forward-looking statements are based upon the Fund’s current expectations and assumptions and are subject to various risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements including, in particular, the performance of the Fund, including our ability to achieve our expected financial and business objectives, and the other risks and uncertainties described in the Fund’s filings with the SEC. Actual results, events, and performance may differ. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as to the date hereof. Except as required by law, the Fund undertakes no obligation to release publicly any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The inclusion of any statement in this release does not constitute an admission by the Fund or any other person that the events or circumstances described in such statements are material.
Pristine Advisers, LLC