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Fair Value of Other Securities (Tables)
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3 Months Ended |
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Mar. 31, 2015
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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, 2015, and December 31, 2014. These assets and liabilities are measured on a recurring basis.
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March 31, 2015 |
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March 31, 2015 |
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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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$ |
10,363,438 |
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$ |
— |
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$ |
— |
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$ |
10,363,438 |
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Total Assets |
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$ |
10,363,438 |
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$ |
— |
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$ |
— |
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$ |
10,363,438 |
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December 31, 2014 |
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December 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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9,572,181 |
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— |
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— |
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9,572,181 |
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Total Assets |
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$ |
9,572,181 |
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$ |
— |
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$ |
— |
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$ |
9,572,181 |
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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, 2015 and 2014, are as follows:
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Level 3 Rollforward |
For The Three Months Ended March 31, 2015 |
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Fair Value Beginning Balance |
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Acquisitions |
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Disposals |
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Total Realized and Unrealized Gains Included in Net Income |
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Return of Capital Adjustments Impacting Cost Basis of Securities |
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Fair Value Ending Balance |
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Changes in Unrealized Gains, Included In Net Income, Relating to Securities Still Held (1)
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Other equity securities |
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$ |
9,217,181 |
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$ |
— |
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$ |
679,798 |
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$ |
341,459 |
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$ |
10,238,438 |
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$ |
679,798 |
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Warrant investment |
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355,000 |
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— |
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(230,000 |
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— |
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125,000 |
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(230,000 |
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Total |
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$ |
9,572,181 |
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$ |
— |
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$ |
— |
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$ |
449,798 |
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$ |
341,459 |
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$ |
10,363,438 |
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$ |
449,798 |
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For The Three Months Ended March 31, 2014 |
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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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$ |
1,294,182 |
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$ |
(491,260 |
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$ |
24,107,243 |
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$ |
1,294,182 |
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Total |
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$ |
23,304,321 |
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$ |
— |
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$ |
— |
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$ |
1,294,182 |
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$ |
(491,260 |
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$ |
24,107,243 |
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$ |
1,294,182 |
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(1) Located in Net realized and unrealized gain on other equity securities in the Consolidated Statements of Income
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| Carrying and Fair Value Amounts |
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Carrying and Fair Value Amounts |
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Level within fair value hierarchy |
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March 31, 2015 |
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December 31, 2014 |
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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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$ |
26,634,586 |
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$ |
26,634,586 |
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$ |
7,578,164 |
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$ |
7,578,164 |
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Escrow receivable |
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Level 2 |
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$ |
2,438,500 |
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$ |
2,438,500 |
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$ |
2,438,500 |
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$ |
2,438,500 |
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Financing notes receivable |
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Level 2 |
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$ |
20,881,295 |
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$ |
20,881,295 |
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$ |
20,687,962 |
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$ |
20,687,962 |
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Financial Liabilities: |
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Long-term debt |
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Level 2 |
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$ |
66,178,000 |
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$ |
66,178,000 |
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$ |
67,060,000 |
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$ |
67,060,000 |
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Line of credit |
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Level 2 |
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$ |
565,583 |
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$ |
565,583 |
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$ |
32,141,277 |
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$ |
32,141,277 |
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| 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 March 31, 2014:
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Significant Unobservable Inputs Used To Value Portfolio Investments |
March 31, 2014 |
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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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9.6x |
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10.6x |
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10.1x |
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Public company projected EBITDA analysis |
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Projected EBITDA Valuation Multiples |
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8.3x |
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9.3x |
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8.8x |
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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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9.5x |
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14.0% |
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11.8% |
Certain condensed combined financial information of the unconsolidated affiliate, Lightfoot, is presented in the following tables (in thousands).
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March 31, 2015 |
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December 31, 2014 |
Assets |
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Current assets |
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$ |
21,854 |
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$ |
25,783 |
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Noncurrent assets |
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382,670 |
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382,957 |
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Total Assets |
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$ |
404,524 |
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$ |
408,740 |
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Liabilities |
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Current liabilities |
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$ |
14,099 |
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$ |
14,318 |
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Noncurrent liabilities |
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114,008 |
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113,810 |
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Total Liabilities |
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$ |
128,107 |
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$ |
128,128 |
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Partner's equity |
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276,417 |
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280,612 |
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Total liabilities and partner's equity |
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$ |
404,524 |
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$ |
408,740 |
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| Condensed Financial Information of Unconsolidated Affiliates |
As of both March 31, 2015 and March 31, 2014, the Company held a 6.7 percent equity interest in Lightfoot. As of March 31, 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).
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March 31, 2015 |
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December 31, 2014 |
Assets |
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Current assets |
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$ |
21,854 |
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$ |
25,783 |
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Noncurrent assets |
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382,670 |
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382,957 |
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Total Assets |
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$ |
404,524 |
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$ |
408,740 |
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Liabilities |
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Current liabilities |
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$ |
14,099 |
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$ |
14,318 |
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Noncurrent liabilities |
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114,008 |
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113,810 |
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Total Liabilities |
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$ |
128,107 |
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$ |
128,128 |
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Partner's equity |
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276,417 |
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280,612 |
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Total liabilities and partner's equity |
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$ |
404,524 |
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$ |
408,740 |
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For The Three Months Ended |
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March 31, 2015 |
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March 31, 2014 |
Revenues |
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$ |
13,557 |
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$ |
13,213 |
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Operating expenses |
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15,128 |
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13,584 |
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Other income (expenses) |
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3,834 |
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3,770 |
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Net income |
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$ |
2,263 |
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$ |
3,399 |
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EBITDA |
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$ |
8,034 |
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$ |
7,500 |
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