MACC Private Equities Inc. Announces Results of Third Quarter Fiscal Year 2009
August 14 2009 - 4:00PM
PR Newswire (US)
ENCINITAS, Calif., Aug. 14 /PRNewswire-FirstCall/ -- On August 14,
2009, MACC Private Equities Inc. (NASDAQ:MACC) announced its
preliminary results of operations from the third quarter of its
fiscal year 2009, ended June 30, 2009, which are subject to
adjustment upon completion of its annual audit. For the third
quarter of fiscal 2009, MACC recorded total investment income of
$152,445, as compared to total investment income of $281,861 for
the third quarter of fiscal 2008. The decrease in investment income
was the net effect of a $14,998 increase in interest income and
$144,414 decrease in dividend income. Total operating expenses for
the third quarter of fiscal 2009 were $252,557, as compared to
$362,021 for the third quarter of fiscal 2008. The decrease in
total operating expenses is the net effect of a $15,766 decrease in
interest expense, a $34,068 decrease in management fees, a $29,393
decrease in professional fees, and a $30,237 decrease in other
expenses. Net investment expense for the third quarter of fiscal
2009 was $100,112, as compared to a net investment expense of
$80,160 in the third quarter of fiscal 2008. MACC had a net
realized loss of $1,240,803 for the third quarter of fiscal 2009,
as compared with the net realized gain of $686,047 for the third
quarter of fiscal 2008. During the third quarter of fiscal 2009,
MACC recorded a net change in unrealized appreciation/depreciation
on investments of $165,280, as compared to a net change in
unrealized appreciation/depreciation on investments of ($34,322)
during the third quarter of fiscal 2008. These items resulted in a
net decrease in net assets from operations at the end of the third
quarter of fiscal 2009 of $1,175,635, as compared to a net increase
in net assets from operations at the end of the third quarter of
fiscal 2008 of $530,937. MACC net asset value at June 30, 2009 was
$8,057,000 as compared to $10,823,000 at June 30, 2008. MACC's net
asset value per share decreased from $4.39 at June 30, 2008, to
$3.27 at June 30, 2009. MACC's current operating losses have been
funded from the sale of portfolio companies and its bank line of
credit. MACC's note payable and line of credit, with June 30, 2009
balances of $4,314,022 and $330,000, respectively, are due August
31, 2009. As of the date of the report on Form 10-Q, MACC has
received notice that its lender, Cedar Rapids Bank & Trust
Company, has approved modification of the terms of the bank line of
credit and note payable to extend the maturity date until March 31,
2010. These changes will not be effective until reflected in
amendments to MACC's loan documents, which we cannot be assured of,
but which we expect to execute prior to August 31. However, even
with the refinancing of these credit facilities there is
substantial doubt as to MACC's ability to continue to operate as a
going concern. MACC is a business development company in the
business of making investments in small businesses in the United
States. MACC common stock is traded on the Nasdaq Capital Market
under the symbol "MACC." This press release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 (the "1995 Act"). Such
statements are made in good faith by MACC pursuant to the
safe-harbor provisions of the 1995 Act, and are identified as
including terms such as "may," "will," "should," "expects,"
"anticipates," "estimates," "plans," or similar language. In
connection with these safe-harbor provisions, MACC has identified
in its Annual Report to Shareholders for the fiscal year ended
September 30, 2008, important factors that could cause actual
results to differ materially from those contained in any
forward-looking statement made by or on behalf of MACC, including,
without limitation, the high risk nature of MACC's portfolio
investments, the effects of general economic conditions on MACC's
portfolio companies and the ability to obtain future funding, any
failure to achieve annual investment level objectives, changes in
prevailing market interest rates, and contractions in the markets
for corporate acquisitions and initial public offerings. MACC
further cautions that such factors are not exhaustive or exclusive.
MACC does not undertake to update any forward-looking statement
which may be made from time to time by or on behalf of MACC.
DATASOURCE: MACC Private Equities Inc. CONTACT: Derek Gaertner of
MACC Private Equities Inc., +1-760-479-5075
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