In This Article:
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GAAP Net Investment Income: $0.48 per share.
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Core Net Investment Income: $0.50 per share, excluding estimated excise taxes.
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Dividend Declared: $0.40 per share.
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Net Asset Value Per Share: Decreased by $0.05 during the quarter.
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Equity Investment Gain: $2 million or $0.08 per share.
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ATM Program Issuance: $25.2 million in shares at an average gross price of $13.89 per share.
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Investment Portfolio at Fair Value: $900 million across 100 portfolio companies.
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New Investments: $53 million in eight new portfolio companies.
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Repayments Received: $31 million in full repayments and $9.7 million in other repayments.
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Loans on Nonaccrual: 2.9% of the fair value of the total loan portfolio.
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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Stellus Capital Investment Corp (NYSE:SCM) reported GAAP net investment income of $0.48 per share, exceeding the declared dividend of $0.40 per share.
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Core net investment income was $0.50 per share, excluding estimated excise taxes, indicating strong financial performance.
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The company realized a gain of $2 million or $0.08 per share on an equity investment during the quarter.
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Stellus Capital Investment Corp (NYSE:SCM) issued $25.2 million in shares at an average gross price of $13.89 per share, all above net asset value, indicating strong investor confidence.
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The investment portfolio grew to $900 million across 100 portfolio companies, up from $876 million across 94 companies, showing positive portfolio growth.
Negative Points
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Net asset value per share decreased by $0.05 during the quarter due to net unrealized depreciation on the investment portfolio.
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Five loans are currently on nonaccrual, comprising 2.9% of the fair value of the total loan portfolio, indicating some asset quality concerns.
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The company experienced unrealized depreciation driven by company-specific activities, which could impact future valuations.
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Stellus Capital Investment Corp (NYSE:SCM) has a relatively high leverage ratio, which may pose risks in an uncertain credit environment.
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The company is cautious about future fee waivers, which may not repeat in coming quarters, potentially affecting future income.
Q & A Highlights
Q: The fee waiver, is that something that we should expect to repeat in coming quarters? A: (W. Todd Huskinson, CFO) It depends on each quarter's performance and the mechanics of the 12-quarter test. Currently, we don't expect any fee waivers for the remainder of this year unless there are changes in performance.