In This Article:
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Adjusted Net Income: $0.36 per share.
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Annualized Net Investment Income Return on Average Equity: Approximately 14%.
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Fourth Quarter Dividend: $0.34 per share, with a special dividend of $0.10 per share.
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Non-Accrual Loans: Decreased from 4.9% to 3.8% of portfolio fair value.
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Net Realized Losses: $31.4 million.
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Net Unrealized Gains: $19.2 million.
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Weighted Average Annual Effective Yield of Performing Debt Portfolio: 13.4%.
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Gross Investment Income: $0.83 per share.
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Operating Expenses: $0.43 per share.
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Incentive Fees: $6.5 million or $0.08 per share.
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Available Liquidity: $582 million.
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Net Leverage: 1.08 times.
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Weighted Average Interest Rate on Debt: 5.4%.
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Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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BlackRock TCP Capital Corp (NASDAQ:TCPC) reported an adjusted net income of $0.36 per share, with an annualized net investment income return on average equity of approximately 14%, which is at the high end of historical levels.
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The Board of Directors declared a fourth quarter dividend of $0.34 per share, with a special dividend of $0.10 per share, indicating strong dividend coverage and commitment to shareholder returns.
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Non-accrual loans decreased from 4.9% to 3.8% of portfolio fair value, showing improvement in portfolio quality.
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The company has a robust pipeline of investment opportunities and continues to focus on the core middle market, which offers less competition and attractive pricing.
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BlackRock TCP Capital Corp (NASDAQ:TCPC) maintains a strong capital position with $582 million in available liquidity, providing flexibility for future investments and operations.
Negative Points
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Leadership changes were announced, with Rajneesh Vig stepping down as CEO and Chairman, which may cause uncertainty regarding future strategic direction.
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The company experienced a net realized loss of $31.4 million due to the restructuring of investments in Pluralsight and McAfee.
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Certain portfolio companies, such as Razor Group and SellerX, were placed on non-accrual status due to underperformance, impacting overall portfolio health.
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The weighted average annual effective yield of the performing debt portfolio decreased slightly from 13.7% to 13.4%, indicating some yield compression.
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The cost of debt increased due to refinancing activities, which may impact future net investment income if not managed effectively.