New partner contribution announced in September 2018 of US$46.0 million to Body Contour Centers, LLC (“BCC”), in exchange for an annual distribution of US$6.4 million. The definitive agreement includes the potential for two additional contributions of US$20.0 million and US$25.0 million when BCC reaches specific financial thresholds.
Follow on contribution to Accscient LLC (“Accscient”) of US$7.0 million bringing total capital invested into Accscient to US$30.0 million and run rate distributions of US$4.4 million;
With our contributions into BCC and Accscient in the quarter, the Corporation has deployed $126.3 million year to date;
Revenue from Partners in the quarter of $22.9 million, or $0.62 per share. The decrease of 4.6% on a per share basis over the prior year period ($23.7 million, $0.65 per share) was due to the overlap of distributions from SBI and Sequel for a one month period in 2017, which added $0.04 per share in the prior year period. For the nine months ended September 30, 2018, revenue has increased 10.8% ($2.05 vs. $1.85 per share) as distributions from new Partners, positive resets for the majority of the portfolio and forgone distributions from Labstat collected on redemption were partially offset by Partner redemptions;
Normalized EBITDA in the quarter of $20.2 million, or $0.55 per share. The decrease of 3.5% on a per share basis over the prior year period ($20.7 million, $0.57 per share) was the result of the decrease in quarterly distributions (as noted above) partially offset by lower quarterly corporate expenses. Year to date Normalized EBITDA per share increased by 4.4% as higher distributions were partially offset by higher legal fees incurred in support of existing Partners;
Paid $14.1 million in dividends in the three month period and $44.3 million for the nine months ended September 30, 2018, Actual Payout Ratios of 88.9% and 73.1% respectively. Actual Payout Ratios were lower than expected due to the collection of Agility accrued distributions and additional Labstat distributions in Q1 and Q2 respectively. Adjusting for the one time collection of Agility accrued receivables (Q1) and Labstat forgone distributions (Q2) the payout ratio for the nine months ended September 30, 2018 was 83.1%;
Recorded a $7.1 million increase to investments at fair value during the quarter, as a result of seven positive write ups partially offset by one write down, primarily due to expected net positive distribution resets effective January 1, 2019. Year to date our investments at fair value have increased $11.2 million, or $0.306 per share accretion to book value.
Reporting a healthy portfolio of 15 current partners with an average of approximately 18.5 years in business. 7 of those 15 partners have no debt on their balance sheets and two more with less than 1.0x EBITDA of debt.
“We are pleased to be reporting another strong quarter that included revenue and EBITDA as expected, the addition of another high quality partner in Body Contour Centers and a follow on contribution to a high performing partner. The BCC contribution comes with the ability to contribute an additional US$45 million of capital in a relatively short time frame, which bolsters the prospects for future capital deployment within our existing portfolio, which will supplement our continued deployment into new partners”, said Steve King, President and CEO.