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American Capital Q4 Profit Down 79%, Yet Tops Estimates

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Private equity firm and global asset manager American Capital Ltd. (ACAS: Quote) on Monday reported a 79 percent decline in profit for the fourth quarter from last year, despite higher revenues and lower operating expenses. However, net operating income per share beat analysts' estimates by a penny.

Total operating expenses for the quarter declined 14 percent from the year-ago period to $65 million.

Net realized gain in the quarter was $15 million, compared to net realized loss of $92 million in the year-ago period. Total net unrealized appreciation was $25 million, compared to net unrealized appreciation of $457 million in the prior-year period.

The Bethesda, Maryland-based company's net earnings for the fourth quarter were $123 million or $0.38 per share, down from $594 million or $1.73 per share in the year-ago period.

Net operating income fell to $83 million or $0.26 per share from $229 million or $0.67 per share in the same period last year. On average, ten analysts polled by Thomson Reuters expected the company to report earnings of $0.25 per share for the quarter. Analysts' estimates typically exclude special items.

However, total operating revenue for the quarter rose 13 percent to $180 million from $160 million in the year-ago period. Analysts had a consensus revenue estimate of $147.77 million.

For fiscal 2012, American Capital's net earnings were $1.14 billion or $3.44 per share, up from $974 million or $2.74 per share in the previous year. However, net operating income declined to $397 million or $1.20 per share from $448 million or $1.26 per share last year.

Revenues for the year increased 9 percent to $646 million from $591 million in the prior year.

Analysts expected the company to earn $1.05 per share for the year on revenues of $613.62 million.

As of December 31, 2012, the company's net asset value or "NAV" per share was $17.84, a 29 percent or $3.97 per share increase from the December 31, 2011 NAV per share of $13.87.

ACAS closed Friday's trading at $13.32. In Monday's pre-market, the stock is up $0.16 or 1.20 percent to $13.48.

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by RTT Staff Writer

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