Troubled finance firm Allied Capital reports $1 billion annual loss, CEO resigns

Washington DC-based finance firm Allied Capital Corp, which said last month it defaulted on a revolving credit facility, reported a drop in net income for the fourth quarter and all of last year. It also said that longtime CEO William Walton was stepping down but would remain as chairman of the board.

For the year ended 31 December 2008, net investment income was $213.2 million or $1.23 per share compared to net investment income of $141.0 million or $0.91 per share for the year ended 31 December 2007. For the year ended 31 December 2008, the company had net realized losses of $129.4 million or $0.75 per share. For the year ended 31 December 2007, the company had net realised gains of $268.5 million or $1.74 per share.

Net loss for the year ended 31 December, 2008, was $1.0 billion or $6.01 per share, as compared to net income of $153.3 million or $0.99 per share for the year ended 31 December, 2007.

For the quarter ended 31 December 2008, net investment income was $34.2 million or $0.19 per share compared to net investment income of $58.0 million or $0.37 per share for the quarter ended 31 December 2007. For the quarter ended 31 December 2008, the company had net realized losses of $176.7 million or $0.99 per share compared to net realized losses of $46.4 million or $0.30 per share for the quarter ended 31 December 2007.

For the quarter ended 31 December, 2008, the sum of net investment income and net realized losses resulted in a loss of $142.6 million or $0.80 per share, as compared to income of $11.6 million or $0.07 per share for the quarter ended 31 December, 2007.

Net loss for the quarter ended 31 December, 2008, was $578.8 million or $3.24 per share, as compared to net income of $27.5 million or $0.18 per share for the quarter ended 31 December 2007.