In This Article:
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Adjusted Net Investment Income: $6.7 million or $0.31 per share, up from $5.5 million or $0.25 per share in the previous quarter.
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Dividend Coverage: Adjusted net investment income covered the $0.25 per share dividend by nearly 1.25 times.
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Net Asset Value (NAV): $199.3 million or $9.20 per share as of June 30, 2024, down from $201.5 million or $9.30 per share as of March 31, 2024.
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Debt-to-Equity Leverage: Decreased from 1.6 times to 1.54 times during the quarter.
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Investment Portfolio: Totaled $485.8 million, a decrease from $500.9 million in the previous quarter.
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Total Borrowings: $307.8 million, with $177.8 million under a floating rate revolving credit facility and $130 million in fixed rate notes.
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Investment Income: $15.6 million for the second quarter, up from $15.2 million in the first quarter.
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Total Expenses: $9.1 million, down from $9.7 million in the previous quarter.
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Net Loss: $3.3 million, compared to a net loss of $2.3 million in the prior quarter.
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Effective Yield: Stable at 11.9% on the portfolio's debt and preferred equity investments.
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Nonaccrual Investments: Eight investments on nonaccrual status, representing 1.9% of the portfolio at fair market value.
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Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Monroe Capital Corp (NASDAQ:MRCC) reported its 17th consecutive quarter where adjusted net investment income covered the $0.25 per share dividend.
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The company achieved a total annualized dividend yield of 14% based on the August 6, 2024, closing share price.
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MRCC's debt-to-equity leverage decreased from 1.6 times to 1.54 times, indicating improved financial stability.
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The portfolio is predominantly comprised of first lien senior secured investments, which are historically resistant to challenging macroeconomic environments.
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MRCC's effective yield remained stable at nearly 12%, reflecting strong income generation from its portfolio.
Negative Points
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Net Asset Value (NAV) decreased slightly from $201.5 million to $199.3 million, primarily due to net unrealized losses.
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The investment portfolio decreased by $15.1 million, from $500.9 million to $485.8 million, indicating a reduction in invested assets.
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Eight investments are on nonaccrual status, representing 1.9% of the portfolio at fair market value, which could impact future income.
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The SLF (Senior Loan Fund) portfolio experienced a modest decrease in average mark, indicating potential valuation challenges.
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MRCC incurred a net loss of $3.3 million for the quarter, primarily due to unrealized mark-to-market losses on certain portfolio companies.