Fidus Investment Corp (FDUS) Q3 2024 Earnings Call Highlights: Strong Interest Income and Asset ...

In This Article:

  • Interest Income: Record interest income of $33.7 million.

  • Net Asset Value: $658.8 million, up 11.8% from $589.5 million as of December 31, 2023.

  • Adjusted Net Investment Income: $20.4 million, a 12.3% increase from last year.

  • Adjusted NII Per Share: $0.61, compared to $0.68 last year.

  • Total Dividends: $0.57 per share, including a $0.14 supplemental dividend.

  • Originations: $65.9 million, with $38.1 million in new portfolio companies.

  • Debt Investments: $62.7 million, primarily in first-lien securities.

  • Equity Investments: $3.2 million, with $2.3 million in new portfolio companies.

  • Repayments and Realizations: $50.8 million, including $8.6 million from equity monetization.

  • Total Investment Income: $38.4 million, a $2.7 million increase from Q2.

  • Total Expenses: $17 million, $1.7 million lower than Q2.

  • Net Investment Income Per Share: $0.64, up from $0.53 in Q2.

  • Debt Outstanding: $479 million, with a debt to equity ratio of 0.7 times.

  • Weighted Average Interest Rate on Debt: 4.6% as of September 30.

  • Weighted Average Effective Yield on Debt Investments: 13.8% as of September 30.

  • Liquidity: $154.4 million, including $54.4 million in cash and $100 million line of credit availability.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Fidus Investment Corp (NASDAQ:FDUS) reported record interest income of $33.7 million, demonstrating strong portfolio performance.

  • Net asset value increased by 11.8% to $658.8 million compared to the end of 2023, indicating growth in the company's financial position.

  • The company successfully obtained a new SBIC license, providing access to $175 million in additional SBA debentures.

  • Adjusted net investment income grew by 12.3% to $20.4 million, reflecting higher interest and fee income.

  • The portfolio remains healthy with sound credit quality, with nonaccruals under 1% for the third quarter.

Negative Points

  • Investment activity was lighter during the third quarter, indicating potential challenges in deal flow.

  • Adjusted net investment income per share decreased to $0.61 from $0.68 in the same period last year, partly due to a higher average share count.

  • The weighted average effective yield on debt investments decreased slightly to 13.8% from 14% in the previous quarter.

  • There is ongoing competition in the market, which could impact future investment opportunities and returns.

  • Some portfolio companies are experiencing underperformance, leading to an increase in internal risk ratings for certain investments.