American Capital Ltd (ACAS) Misses Q2 EPS by 3c

American Capital Ltd (NASDAQ: ACAS) reported Q2 EPS of $0.15, $0.03 worse than the analyst estimate of $0.18. Revenue for the quarter came in at $100 million versus the consensus estimate of $106.88 million.

"We are pleased with the growth in NAV this quarter to $20.12 per share, a 17% annualized increase," said Malon Wilkus, Chairman and Chief Executive Officer. "More importantly, we worked diligently and made good progress in evaluating, planning and preparing for the possible separation of our investments from our management business. However, as a business development company with a diverse set of assets, separating our investments from our management business would be quite complex. Nonetheless, based on our progress, we hope to be in a position to present our board of directors a specific proposal in the fourth quarter regarding separating our investments from our management business."

"Should our board decide to separate our investments from our asset management business, there are a number of issues that would need to be addressed," said Sam Flax, Executive Vice President and General Counsel. "These issues include structuring our assets so that the resulting entities are compliant with the Investment Company Act, including co-investment and asset composition matters, preserving tax assets and structuring entities for tax compliance, determining financial reporting requirements and preparing necessary securities laws filings, addressing the impact of a restructuring on our portfolio companies and developing the governance, compliance and compensation structures of the resulting entities."

For earnings history and earnings-related data on American Capital Ltd (ACAS) click here.

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