Quarterly report pursuant to Section 13 or 15(d)

Fair Value of Other Securities (Tables)

v2.4.0.8
Fair Value of Other Securities (Tables)
6 Months Ended
Jun. 30, 2014
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, 2014, and December 31, 2013. These assets and liabilities are measured on a recurring basis.
June 30, 2014
 
 
June 30, 2014
 
Fair Value
 
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Other equity securities
 
$
25,786,785

 
$

 
$

 
$
25,786,785

Warrant option(1)
 
109,500

 

 

 
109,500

Total Assets
 
$
25,896,285

 
$

 
$

 
$
25,896,285

(1) Located in Prepaid expenses and other assets in the Consolidated Balance Sheets
December 31, 2013
 
 
December 31, 2013
 
Fair Value
 
 
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
 
Other equity securities
 
$
23,304,321

 
$

 
$

 
$
23,304,321

Total Assets
 
$
23,304,321

 
$

 
$

 
$
23,304,321

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, 2014 and June 30, 2013 are as follows:
 
For the Six Months Ended
 
June 30, 2014
 
June 30, 2013
Fair value beginning balance
$
23,304,321

 
$
19,707,126

Acquisitions
46,500

 

Total realized and unrealized gains included in net income
3,378,208

 
2,087,251

Return of capital adjustments impacting cost basis of securities
(832,744
)
 
(554,442
)
Fair value ending balance
$
25,896,285

 
$
21,239,935

 
 
 
 
Changes in unrealized gains, included in net income, relating to securities still held (1)
$
3,378,208

 
$
2,087,251

Quantitative table for Valuation Techniques
As of both June 30, 2014 and June 30, 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 June 30, 2014. Please see the Asset Portfolio and Related Developments section of Management's Discussion and Analysis for more detail.
Quantitative Table for Valuation Techniques 
Significant Unobservable Inputs Used To Value Portfolio Investments
 
 
 
 
 
 
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
 
9.5%
 
14.0%
 
11.8%
Condensed Financial Information of Unconsolidated Affiliates
Assets
 
June 30, 2014
 
December 31, 2013
Current assets
 
$
57,298,543

 
$
49,195,626

Noncurrent assets
 
$
554,482,086

 
$
554,402,885

Total Assets
 
$611,780,629
 
$603,598,511
Liabilities
 
 
 
 
Current liabilities
 
$
30,885,158

 
$
31,860,653

Noncurrent liabilities
 
193,710,004

 
182,639,103

Total Liabilities
 
224,595,162

 
214,499,756

 
 
 
 
 
Partner's equity
 
387,185,467

 
389,098,755

Total liabilities and partner's equity
 
$611,780,629
 
$603,598,511

 
 
For the three Months Ending
 
For the six Months Ending
 
 
June 30, 2014
 
June 30, 2013
 
June 30, 2014
 
June 30, 2013
Revenues
 
$
45,216,000

 
$
38,524,000

 
$
76,438,000

 
$
65,632,000

Operating expenses
 
33,928,000

 
27,427,000

 
60,868,000

 
48,709,000

EBITDA
 
$
11,288,000

 
$
11,097,000

 
$
15,570,000

 
$
16,923,000

Other income (expenses)
 
(748,000
)
 
(3,812,000
)
 
(1,879,000
)
 
4,425,000

Net income
 
$
10,540,000

 
$
7,285,000

 
$
13,691,000

 
$
21,348,000

Carrying and Fair Value Amounts
The carrying value of the line of credit approximates the fair value due to its short-term nature.
Carrying and Fair Value Amounts
 
 
Level within fair value hierarchy
 
June 30, 2014
 
December 31, 2013
 
 
 
Carrying
Amount
 
Fair Value
 
Carrying
Amount
 
Fair Value
Financial Assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
Level 1
 
$
18,986,616

 
$
18,986,616

 
$
17,963,266

 
$
17,963,266

Financing note receivable
 
Level 2
 
$
4,299,356

 
$
4,299,356

 
$

 
$

Financial Liabilities:
 

 

 

 

Long-term debt
 
Level 2
 
$
68,824,000

 
$
68,824,000

 
$
70,000,000

 
$
70,000,000

Line of credit
 
Level 1
 
$

 
$

 
$
81,935

 
$
81,935