FS KKR Capital Corp (FS Investment Corporation) - 8-K Summary
Business Context and Reporting Period
This Form 8-K, dated May 16, 2014, serves as a clarification regarding the presentation of financial results for the fiscal quarter ended March 31, 2014. The filing addresses discrepancies in per-share metrics reported in the Company's Form 10-Q and press release due to rounding effects.
Key Financial Metrics
The filing details the following per-share metrics for the quarter ended March 31, 2014, distinguishing between reported figures (affected by rounding) and adjusted figures (excluding rounding effects):
- Total Net Realized and Unrealized Gain (Loss) on Investment: Reported $0.10 per share; Adjusted $0.09 per share.
- Net Increase in Net Assets Resulting from Operations (EPS): Reported $0.32 per share; Adjusted $0.31 per share.
- Adjusted Net Investment Income per Share: Reported $0.24 per share; Adjusted $0.23 per share.
The filing does not provide aggregate revenue, total profit, cash flow, debt, or liquidity figures; these are referenced as available in the Form 10-Q.
Material Changes and Clarifications
There are no material changes to the underlying business operations or financial performance. The material change is strictly a correction in the presentation of supplemental information to ensure that certain figures sum correctly in accordance with Form N-2 registration requirements. The reported figures were rounded, resulting in slight overstatements compared to the precise calculated values.
Guidance, Outlook, and Risks
The filing contains no new guidance or outlook. Management noted that the use of non-GAAP financial measures is intended to assist investors in evaluating ongoing trends and comparing results with other business development companies. The filing reiterates that non-GAAP measures should not be considered in isolation and directs investors to the reconciliation provided in the May 15, 2014 press release (Exhibit 99.1).
Investor Verification Checklist
- Verify the precise per-share metrics in the Form 10-Q filed on May 15, 2014, to confirm the adjusted values of $0.09, $0.31, and $0.23.
- Review the reconciliation of non-GAAP measures to GAAP measures in the May 15, 2014 press release (Exhibit 99.1).
- Confirm that the rounding adjustment does not alter the overall investment thesis or trend analysis for the quarter.