ENCINITAS, Calif., Dec. 19 /PRNewswire-FirstCall/ -- On December 19, 2008, MACC Private Equities Inc. announced the results of operations for its fiscal year 2008 and the completion of its annual audit.
For fiscal year 2008, MACC recorded total investment income of $955,563, as compared to total investment income of $996,627 for fiscal year 2007. The decrease in investment income was the net effect of a $267,015 decrease in interest income and a $225,951 increase in dividend income. Total operating expenses for fiscal year 2008 were $1,403,354, as compared to $1,853,607 for fiscal year 2007. The decrease in total operating expenses is the net effect of a $390,866 decrease in interest expense, a $49,168 decrease in management fees, a $143,732 decrease in incentive fees, a $123,590 increase in professional fees, and an increase of $9,923 in other expenses. Net investment expense for fiscal year 2008 was $447,791, as compared to a net investment expense of $786,487 in fiscal year 2007.
Net realized gain on investments for fiscal year 2008 was $687,269 as compared to a net realized gain on investments of $1,351,456 for fiscal year 2007. During the fiscal 2008, MACC had unrealized depreciation of $2,938,982 at September 30, 2008, a change of $1,294,629 from the $1,644,353 of unrealized depreciation at September 30, 2007.
These items resulted in a net decrease in net assets from operations at the end of fiscal year 2008 of $1,085,829, as compared to a net decrease in net assets from operations at the end of fiscal year 2007 of $97,424. MACC net asset value at September 30, 2008, was $10,434,981 as compared to $11,520,810 at September 30, 2007. MACC's net asset value per share decreased to $4.23 at September 30, 2008, from $4.67 at September 30, 2007.
MACC is a business development company in the business of making investments in small businesses in the United States. MACC common stock is traded on the Nasdaq Capital Market under the symbol "MACC."
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "1995 Act"). Such statements are made in good faith by MACC pursuant to the safe-harbor provisions of the 1995 Act, and are identified as including terms such as "may," "will," "should," "expects," "anticipates," "estimates," "plans," or similar language. In connection with these safe-harbor provisions, MACC has identified in its Annual Report to Shareholders for the fiscal year ended September 30, 2008, important factors that could cause actual results to differ materially from those contained in any forward-looking statement made by or on behalf of MACC, including, without limitation, the high risk nature of MACC's portfolio investments, the effects of general economic conditions on MACC's portfolio companies and the ability to obtain future funding, any failure to achieve annual investment level objectives, changes in prevailing market interest rates, and contractions in the markets for corporate acquisitions and initial public offerings. MACC further cautions that such factors are not exhaustive or exclusive. MACC does not undertake to update any forward-looking statement which may be made from time to time by or on behalf of MACC.
