American Capital Ltd. Net Operating Income Falls By 69%

Continuing the difficult run, American Capital saw its net operating income fall to $16 million, well below the $52 million in the fourth quarter.

May 7, 2014 at 5:35PM

American Capital (NASDAQ:ACAS) announced its operating income before taxes stood at $16 million, or $0.06 per share in the first quarter of 2014, a decline of 69% relative to the $52 million recognized in the fourth quarter of 2013. In addition its net operating income was down more than 75% relative to the first quarter of 2013, when it stood at $68 million. 

The biggest reason behind the drop was significant decreases in both of its sources of revenue. Fee income at American Capital was cut in half, to $13 million, from the fourth quarter to the first quarter. In addition, its interest and dividend income fell by 23%, from $92 million to $71 million.

However, the company did note its net earnings stood at $70 million, well above the loss of $182 million seen in the fourth quarter of 2013. In the fourth quarter, American Capital saw its investments depreciate on an unrealized basis by $261 million, which resulted in its overall loss.

In addition, American Capital announced Goldman Sachs was retained as a financial advisor as it evaluated whether or not to separate its asset management business from its investment assets, which was announced in March.

"We have made progress evaluating our corporate structure," noted the CEO of American Capital, Malon Wilkus, in the announcement. "In addition to engaging Goldman Sachs, our Board of Directors suspended our Share Repurchase and Dividend Program, as we evaluate the capital requirements of our alternatives."

Even despite the lessened net operating income, in total, American Capital did see its net asset value per share rise to $19.29, representing a gain of 7%.

Dividend stocks for the next decade
The Motley Fool's top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Patrick Morris has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers