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Fair Value of Other Securities (Tables)
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6 Months Ended |
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Jun. 30, 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 June 30, 2014, and December 31, 2013. These assets and liabilities are measured on a recurring basis.
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June 30, 2014 |
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June 30, 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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$ |
25,786,785 |
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$ |
— |
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$ |
— |
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$ |
25,786,785 |
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Warrant option(1)
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109,500 |
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— |
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— |
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109,500 |
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Total Assets |
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$ |
25,896,285 |
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$ |
— |
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$ |
— |
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$ |
25,896,285 |
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(1) Located in Prepaid expenses and other assets in the Consolidated Balance Sheets
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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 six months ended June 30, 2014 and June 30, 2013 are as follows:
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For the Six Months Ended |
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June 30, 2014 |
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June 30, 2013 |
Fair value beginning balance |
$ |
23,304,321 |
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$ |
19,707,126 |
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Acquisitions |
46,500 |
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— |
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Total realized and unrealized gains included in net income |
3,378,208 |
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2,087,251 |
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Return of capital adjustments impacting cost basis of securities |
(832,744 |
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(554,442 |
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Fair value ending balance |
$ |
25,896,285 |
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$ |
21,239,935 |
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Changes in unrealized gains, included in net income, relating to securities still held (1)
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$ |
3,378,208 |
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$ |
2,087,251 |
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| 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
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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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$ |
25,786,785 |
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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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| Condensed Financial Information of Unconsolidated Affiliates |
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Assets |
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June 30, 2014 |
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December 31, 2013 |
Current assets |
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$ |
57,298,543 |
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$ |
49,195,626 |
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Noncurrent assets |
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$ |
554,482,086 |
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$ |
554,402,885 |
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Total Assets |
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$611,780,629 |
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$603,598,511 |
Liabilities |
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Current liabilities |
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$ |
30,885,158 |
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$ |
31,860,653 |
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Noncurrent liabilities |
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193,710,004 |
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182,639,103 |
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Total Liabilities |
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224,595,162 |
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214,499,756 |
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Partner's equity |
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387,185,467 |
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389,098,755 |
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Total liabilities and partner's equity |
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$611,780,629 |
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$603,598,511 |
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For the three Months Ending |
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For the six Months Ending |
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June 30, 2014 |
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June 30, 2013 |
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June 30, 2014 |
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June 30, 2013 |
Revenues |
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$ |
45,216,000 |
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$ |
38,524,000 |
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$ |
76,438,000 |
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$ |
65,632,000 |
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Operating expenses |
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33,928,000 |
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27,427,000 |
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60,868,000 |
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48,709,000 |
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EBITDA |
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$ |
11,288,000 |
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$ |
11,097,000 |
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$ |
15,570,000 |
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$ |
16,923,000 |
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Other income (expenses) |
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(748,000 |
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(3,812,000 |
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(1,879,000 |
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4,425,000 |
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Net income |
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$ |
10,540,000 |
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$ |
7,285,000 |
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$ |
13,691,000 |
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$ |
21,348,000 |
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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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June 30, 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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$ |
18,986,616 |
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$ |
18,986,616 |
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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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$ |
4,299,356 |
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$ |
4,299,356 |
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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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$ |
68,824,000 |
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$ |
68,824,000 |
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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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$ |
— |
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$ |
— |
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$ |
81,935 |
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$ |
81,935 |
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