Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Other Securities (Tables)

v3.2.0.727
Fair Value of Other Securities (Tables)
6 Months Ended
Jun. 30, 2015
Fair Value Disclosures [Abstract]  
Assets and liabilities measured on a recurring basis
The following tables provide the fair value measurements of applicable Company assets and liabilities by level within the fair value hierarchy as of June 30, 2015, and December 31, 2014. These assets and liabilities are measured on a recurring basis.
June 30, 2015
 
 
June 30, 2015
 
Fair Value
 
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Other equity securities
 
$
10,099,805

 
$

 
$

 
$
10,099,805

Total Assets
 
$
10,099,805

 
$

 
$

 
$
10,099,805

December 31, 2014
 
 
December 31, 2014
 
Fair Value
 
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Other equity securities
 
9,572,181

 

 

 
9,572,181

Total Assets
 
$
9,572,181

 
$

 
$

 
$
9,572,181

The changes for all Level 3 assets measured at fair value on a recurring basis using significant unobservable inputs
The changes for all Level 3 securities measured at fair value on a recurring basis using significant unobservable inputs for the six months ended June 30, 2015 and 2014, are as follows:
Level 3 Rollforward
For the Six Months Ended June 30, 2015
 
Fair Value Beginning Balance
 
Acquisitions
 
Disposals
 
Total Realized and Unrealized Gains Included in Net Income
 
Return of Capital Adjustments Impacting Cost Basis of Securities
 
Fair Value Ending Balance
 
Changes in Unrealized Gains, Included In Net Income, Relating to Securities Still Held (1)
Other equity securities
 
$
9,217,181

 
$

 
$

 
$
451,311

 
$
316,313

 
$
9,984,805

 
$
451,311

Warrant investment
 
355,000

 

 

 
(240,000
)
 

 
115,000

 
(240,000
)
Total
 
$
9,572,181

 
$

 
$

 
$
211,311

 
$
316,313

 
$
10,099,805

 
$
211,311

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Six Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other equity securities
 
$
23,304,321

 
$
46,500

 
$

 
$
3,378,208

 
$
(832,744
)
 
$
25,896,285

 
$
3,378,208

Total
 
$
23,304,321

 
$
46,500

 
$

 
$
3,378,208

 
$
(832,744
)
 
$
25,896,285

 
$
3,378,208


(1) Located in Net realized and unrealized gain on other equity securities in the Consolidated Statements of Income
Carrying and Fair Value Amounts
Carrying and Fair Value Amounts
 
 
 
 
 
 
 
 
 
 
 
 
Level within fair value hierarchy
 
June 30, 2015
 
December 31, 2014
 
 
 
Carrying
Amount
 
Fair Value
 
Carrying
Amount
 
Fair Value
Financial Assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
Level 1
 
$
12,440,444

 
$
12,440,444

 
$
7,578,164

 
$
7,578,164

Escrow receivable
 
Level 2
 
$
2,720,373

 
$
2,720,373

 
$
2,438,500

 
$
2,438,500

Financing notes receivable
 
Level 2
 
$
21,033,590

 
$
21,033,590

 
$
20,687,962

 
$
20,687,962

Financial Liabilities:
 
 
 
 
 
 
 
 
Long-term debt
 
Level 2
 
$
176,558,500

 
$
176,558,500

 
$
67,060,000

 
$
67,060,000

Line of credit
 
Level 2
 
$
42,149,925

 
$
42,149,925

 
$
32,141,277

 
$
32,141,277

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques
The following table summarizes the significant unobservable inputs that the Company used to value its portfolio investments categorized as Level 3 as of June 30, 2014:
Significant Unobservable Inputs Used To Value Portfolio Investments
June 30, 2014
 
 
 
 
 
 
Unobservable Inputs
 
Range
 
Weighted Average
Assets at Fair Value
 
Fair Value
 
Valuation Technique
 
 
Low
 
High
 
Other equity securities, at fair value
 
$
25,786,785

 
Public company historical EBITDA analysis
 
Historical EBITDA Valuation Multiples
 
10.0x
 
11.0x
 
10.5x
 
 
 
 
Public company projected EBITDA analysis
 
Projected EBITDA Valuation Multiples
 
9.0x
 
10.0x
 
9.5x
 
 
 
 
M&A company analysis
 
EV/LTM 2012 EBITDA
 
8.3x
 
9.3x
 
8.8x
 
 
 
 
Discounted cash flow
 
Weighted Average Cost of Capital
 
9.5x
 
14.0%
 
11.8%
Certain condensed combined financial information of the unconsolidated affiliate, Lightfoot, is presented in the following tables (in thousands).
 
 
June 30, 2015
 
December 31, 2014
Assets
 
 
 
 
Current assets
 
$
31,379

 
$
25,783

Noncurrent assets
 
619,006

 
382,957

Total Assets
 
$
650,385

 
$
408,740

Liabilities
 
 
 
 
Current liabilities
 
$
16,513

 
$
14,318

Noncurrent liabilities
 
197,274

 
113,810

Total Liabilities
 
$
213,787

 
$
128,128

 
 
 
 
 
Partner's equity
 
436,598

 
280,612

Total liabilities and partner's equity
 
$
650,385

 
$
408,740

Condensed Financial Information of Unconsolidated Affiliates
As of both June 30, 2015 and June 30, 2014, the Company held a 6.7 percent equity interest in Lightfoot. As of June 30, 2014, the Company held a 11.1 percent equity interest in Vantacore.
Certain condensed combined financial information of the unconsolidated affiliate, Lightfoot, is presented in the following tables (in thousands).
 
 
June 30, 2015
 
December 31, 2014
Assets
 
 
 
 
Current assets
 
$
31,379

 
$
25,783

Noncurrent assets
 
619,006

 
382,957

Total Assets
 
$
650,385

 
$
408,740

Liabilities
 
 
 
 
Current liabilities
 
$
16,513

 
$
14,318

Noncurrent liabilities
 
197,274

 
113,810

Total Liabilities
 
$
213,787

 
$
128,128

 
 
 
 
 
Partner's equity
 
436,598

 
280,612

Total liabilities and partner's equity
 
$
650,385

 
$
408,740


 
 
For the Three Months Ended
 
For the Six Months Ended
 
 
June 30, 2015
 
June 30, 2014
 
June 30, 2015
 
June 30, 2014
Revenues
 
$
19,110

 
$
14,728

 
$
32,667

 
$
27,941

Operating expenses
 
17,540

 
14,092

 
32,668

 
27,676

Other income (expenses)
 
3,320

 
3,897

 
7,154

 
7,667

Net income
 
$
4,890

 
$
4,533

 
$
7,153

 
$
7,932

 
 
 
 
 
 
 
 
 
EBITDA
 
$
9,711

 
$
8,687

 
$
17,745

 
$
16,187