In This Article:
-
Investment Income: $5.1 million for the quarter ended September 30, 2024, a decrease from $5.4 million in the prior quarter.
-
Total Operating Expenses: Decreased to $4.2 million from $4.6 million in the prior quarter.
-
Net Investment Income: $1 million or 37 per share, up from $0.8 million or 28 per share last quarter.
-
Net Asset Value (NAV): $86.3 million, a decrease from $88.7 million in the prior quarter; $32.31 per share, down from $33.13 per share.
-
Portfolio Fair Value: Approximately $176.5 million as of September 30, 2024, with exposure to 59 portfolio companies.
-
Debt Investment Portfolio: 86.8% of total portfolio at fair value with a weighted average annualized yield of approximately 12.3% excluding non-accruals and CLOs.
-
Cash and Cash Equivalents: $5 million as of quarter end.
-
Unused Borrowing Capacity: $35.9 million available for new investments.
-
Quarterly Distribution: Declared a fourth-quarter distribution of 36 per share.
Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Logan Ridge Finance Corp (NASDAQ:LRFC) successfully exited its largest investment, generating $17.5 million in cash, which was $2 million above its previously reported fair value.
-
The company declared a fourth-quarter distribution of 36 per share, doubling the dividend compared to the first quarter of 2023.
-
LRFC amended and extended its revolving credit facility with Keybank, reducing applicable margins and extending maturity dates, which lowered the overall cost of capital.
-
The underlying credit performance of LRFC's portfolio remained stable, with no new investments placed on non-accrual status.
-
The company has $35.9 million of unused borrowing capacity available for deployment in new investments, providing financial flexibility.
Negative Points
-
Logan Ridge Finance Corp (NASDAQ:LRFC) experienced a decrease in net asset value, which fell by $2.4 million compared to the prior quarter.
-
Investment income decreased by $0.3 million compared to the previous quarter, primarily due to the absence of a non-recurring dividend.
-
The fair value of non-accrual investments decreased from $10 million to $8.2 million, indicating further markdowns.
-
The company repurchased only a small number of shares, which was seen as a missed opportunity given the current discounts.
-
Net realized and unrealized losses on the portfolio contributed to the decrease in net asset value.
Q & A Highlights
Q: Were there any non-recurring items this quarter? A: There were not. - Brandon Satoren, CFO