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Fair Value of Other Securities (Tables)
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3 Months Ended |
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Mar. 31, 2014
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| Fair Value Disclosures [Abstract] |
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| 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 March 31, 2014, and December 31, 2013. These assets and liabilities are measured on a recurring basis.
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March 31, 2014 |
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March 31, 2014 |
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Fair Value |
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Level 1 |
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Level 2 |
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Level 3 |
Assets: |
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Other equity securities |
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$ |
24,107,243 |
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$ |
— |
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$ |
— |
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$ |
24,107,243 |
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Total Assets |
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$ |
24,107,243 |
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$ |
— |
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$ |
— |
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$ |
24,107,243 |
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December 31, 2013 |
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December 31, 2013 |
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Fair Value |
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Level 1 |
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Level 2 |
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Level 3 |
Assets: |
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Other equity securities |
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$ |
23,304,321 |
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$ |
— |
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$ |
— |
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$ |
23,304,321 |
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Total Assets |
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$ |
23,304,321 |
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$ |
— |
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$ |
— |
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$ |
23,304,321 |
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| 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 three months ended March 31, 2014 and three months ended March 31, 2013 are as follows:
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For the three Months Ended |
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March 31, 2014 |
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March 31, 2013 |
Fair value beginning balance |
$ |
23,304,321 |
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$ |
19,707,126 |
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Total realized and unrealized gains included in net income |
1,294,182 |
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2,425,986 |
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Return of capital adjustments impacting cost basis of securities |
(491,260 |
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(237,258 |
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Fair value ending balance |
$ |
24,107,243 |
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$ |
21,895,854 |
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Changes in unrealized gains, included in net income, relating to securities still held (1)
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$ |
1,294,182 |
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$ |
2,425,986 |
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| Quantitative table for Valuation Techniques |
As of both March 31, 2014 and March 31, 2013, the Company held a 6.7 percent equity interest in Lightfoot Capital Partners LP ("Lightfoot") and an 11.1 percent equity interest in VantaCore Partners LP ("VantaCore"). The following table summarizes the significant unobservable inputs that the Company used to value its portfolio investments categorized as Level 3 as of March 31, 2014. Please see the Portfolio Updates, Private Security Assets section of the Management's Discussion and Analysis for more detail.
Quantitative Table for Valuation Techniques
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Significant Unobservable Inputs Used To Value Portfolio Investments |
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Unobservable Inputs |
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Range |
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Weighted Average |
Assets at Fair Value |
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Fair Value |
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Valuation Technique |
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Low |
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High |
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Other equity securities, at fair value |
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$ |
24,107,243 |
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Public company historical EBITDA analysis |
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Historical EBITDA Valuation Multiples |
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10.0x |
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11.0x |
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10.5x |
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Public company projected EBITDA analysis |
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Projected EBITDA Valuation Multiples |
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9.0x |
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10.0x |
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9.5x |
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M&A company analysis |
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EV/LTM 2012 EBITDA |
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8.3x |
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9.3x |
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8.8x |
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Discounted cash flow |
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Weighted Average Cost of Capital |
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9.5% |
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14.0% |
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11.8% |
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| Carrying and Fair Value Amounts |
The carrying value of the line of credit approximates the fair value due to its short-term nature.
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Carrying and Fair Value Amounts |
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Level within fair value hierarchy |
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March 31, 2014 |
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December 31, 2013 |
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Carrying
Amount
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Fair Value |
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Carrying
Amount
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Fair Value |
Financial Assets: |
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Cash and cash equivalents |
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Level 1 |
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$ |
23,095,733 |
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$ |
23,095,733 |
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$ |
17,963,266 |
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$ |
17,963,266 |
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Financing note receivable |
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Level 2 |
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$ |
4,107,955 |
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$ |
4,107,955 |
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$ |
— |
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$ |
— |
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Financial Liabilities: |
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Long-term debt |
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Level 2 |
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$ |
69,706,000 |
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$ |
69,706,000 |
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$ |
70,000,000 |
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$ |
70,000,000 |
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Line of credit |
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Level 1 |
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$ |
483,105 |
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$ |
483,105 |
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$ |
81,935 |
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$ |
81,935 |
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| Condensed Financial Information of Unconsolidated Affiliates |
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Assets |
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March 31, 2014 |
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December 31, 2013 |
Current assets |
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$ |
48,678,805 |
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$ |
49,195,626 |
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Noncurrent assets |
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$ |
554,746,392 |
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$ |
554,402,885 |
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Total Assets |
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$603,425,197 |
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$603,598,511 |
Liabilities |
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Current liabilities |
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$ |
31,221,244 |
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$ |
31,860,653 |
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Noncurrent liabilities |
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185,502,625 |
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182,639,103 |
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Total Liabilities |
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216,723,869 |
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214,499,756 |
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Partner's equity |
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386,701,328 |
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389,098,755 |
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Total liabilities and partner's equity |
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$603,425,197 |
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$603,598,511 |
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For the three Months Ending |
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March 31, 2014 |
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March 31, 2013 |
Revenues |
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$ |
31,222,000 |
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$ |
27,108,000 |
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Operating expenses |
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26,940,000 |
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21,282,000 |
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EBITDA |
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$ |
4,282,000 |
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$ |
5,826,000 |
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Other income (expenses) |
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(1,131,000 |
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8,237,000 |
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Net income |
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$ |
3,151,000 |
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$ |
14,063,000 |
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