WCAP WCAPMonday June 28, 10:07 AM Eastern time
Company Press Release
Winfield Capital Corp. Reports Results for the Year Ended March 31, 1999
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--June 28, 1999--Winfield Capital Corp. (NASDAQ:WCAP) announced today a net gain of 24,851,771 or a basic net gain per share of 4.95 for the fiscal year ended March 31, 1999 versus a net loss of 1,984,474 or a basic net loss per share of .40 for the fiscal year ended March 31, 1998. This net gain in 1999 included an increase in the unrealized appreciation of the value of investments totaling 25,323,076 compared with an increase in 1998 in the unrealized depreciation of the value of investments totaling 1,074,053. The change in unrealized appreciation in 1999 was principally related to the increase in the market price of two investments in publicly traded companies.
The Company's results also reflected that total investment income for the fiscal year 1999 versus the fiscal year 1998 decreased to 839,897 from 1,118,127. The decrease in investment income was largely attributable to a decrease in interest earned from temporarily invested idle funds of 326,692. This decrease in temporarily invested funds resulted from the Company's continuing origination of significant equity investments and lower interest rates that prevailed in 1999. Operating expenses increased by 145,460 for the fiscal year ended March 31, 1999 compared to the prior fiscal year. This increase was primarily due to an increase in professional fees of 152,200 mostly in relation to the origination of new investments.
Investments originated during the fiscal year ended March 31, 1999 totaled 9,420,696 (including investments in Commerce One, Inc., a provider of enterprise procurement software, Internet Gift Registries, Inc., an on-line gift registry, Juno Online Services, Inc., an internet service and e-mail provider, Mpath Interactive, Inc., a manager and owner of on-line communities, Prio, Inc., formerly SaveSmart, Inc., a provider of on-line promotions and incentives, RoweCom, Inc., a, provider of intranet knowledge subscriptions, Synquest, Inc., a provider of enterprise optimization software and TeraStor Corporation, a provider of data storage technology).
Paul A. Perlin, the Company's Chairman and CEO, commenting on the fiscal year ended March 31, 1999 said, "This year's results reflected the Company's efforts to assemble a portfolio of investments that management believes have the potential over time to substantially enhance net asset values for our shareholders."
Winfield Capital is a small business investment company that makes loans and equity investments pursuant to funding programs sponsored by the SBA and is a non-diversified, closed-end investment company that is a business development company under the Investment Company Act of 1940.
The Company's common stock is traded on the NASDAQ SmallCap Market and the Boston Stock Exchange under the symbols "WCAP" and "WNF", respectively. This press release may contain forward-looking information within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. Winfield Capital assumes no obligation to update the information contained in this release.
SELECTED FINANCIAL INFORMATION Years Ended Mar. 31, 1999 1998
Total Investment Income $ 839,897 $ 1,118,127
Net Gain (Loss) $ 24,851,771 ($ 1,984,474)
Net Gain (Loss) Per Share
Basic $ 4.95 ($ 0.40)
Diluted $ 4.54 ($ 0.40)
Weighted Average Number
of Shares Outstanding &
Common Stock Equivalents 5,476,661 5,023,361
Total Assets $ 50,128,912 $ 18,233,115
Cash & Shortterm Investments $ 3,427,719 $ 4,311,364
Total Shareholders' Equity $ 33,477,319 $ 8,625,548
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Contact:
Winfield Capital Corp., White Plains
Paul A. Perlin, Chairman and CEO
914/949-2600
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