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Stellus Capital Investment Corporation Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2024
FINANCIAL HIGHLIGHTS
($ in millions, except data relating to per share amounts and shares outstanding)
|
Three Months Ended |
Year Ended |
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Amount |
Per Share |
Amount |
Per Share |
Amount |
Per Share |
Amount |
Per Share |
||||
|
Net investment income |
|
|
|
|
|
|
|
|
|||
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Core net investment income(1) |
10.15 |
0.37 |
12.16 |
0.50 |
43.74 |
1.71 |
42.97 |
1.95 |
|||
|
Net realized gain (loss) on investments |
5.95 |
0.22 |
(30.54) |
(1.26) |
(15.74) |
(0.62) |
(30.21) |
(1.38) |
|||
|
Net realized loss on foreign currency translation |
(0.02) |
— |
(0.04) |
— |
(0.09) |
— |
(0.11) |
— |
|||
|
Benefit for taxes on realized loss on investments in taxable subsidiaries |
— |
— |
2.99 |
0.12 |
— |
— |
2.99 |
0.14 |
|||
|
Total realized income(2) |
|
|
( |
( |
|
|
|
|
|||
|
Distributions |
(10.90) |
(0.40) |
(9.65) |
(0.40) |
(41.22) |
(1.61) |
(35.53) |
(1.61) |
|||
|
Net unrealized change in (depreciation) appreciation on investments |
(6.86) |
(0.25) |
27.13 |
1.13 |
19.57 |
0.76 |
2.79 |
0.13 |
|||
|
Net unrealized change in (depreciation) appreciation on foreign currency translation |
(0.02) |
— |
0.01 |
— |
(0.02) |
— |
(0.01) |
— |
|||
|
Benefit (provision) for taxes on unrealized depreciation (appreciation) on investments in taxable subsidiaries |
— |
— |
0.02 |
— |
0.19 |
0.01 |
(0.13) |
(0.01) |
|||
|
Net increase in net assets resulting from operations |
|
|
|
|
|
|
|
|
|||
|
Weighted average shares outstanding |
27,174,972 |
24,125,642 |
25,596,593 |
22,004,648 |
|||||||
|
(1) |
Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non- |
|
(2) |
Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and loss on debt extinguishment; all |
PORTFOLIO ACTIVITY
($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)
|
As of |
As of |
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Investments at fair value |
|
|
||||||
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Total assets |
|
|
||||||
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Net assets |
|
|
||||||
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Shares outstanding |
27,481,118 |
24,125,642 |
||||||
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Net asset value per share |
|
|
||||||
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Three Months Ended |
Year Ended |
|||||||
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|
|
|
|
|||||
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New investments |
|
|
|
|
||||
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Repayments of investments |
(64.5) |
(55.2) |
(151.8) |
(134.2) |
||||
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Net activity |
|
( |
|
|
||||
|
As of |
As of |
|||||||
|
|
|
|||||||
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Number of portfolio company investments |
105 |
93 |
||||||
|
Number of debt investments |
92 |
81 |
||||||
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Weighted average yield of debt and other income producing investments(3) |
||||||||
|
Cash |
9.5 % |
11.0 % |
||||||
|
Payment-in-kind ("PIK") |
0.4 % |
0.5 % |
||||||
|
Fee amortization |
0.4 % |
0.4 % |
||||||
|
Total |
10.3 % |
11.9 % |
||||||
|
Weighted average yield on total investments(4) |
||||||||
|
Cash |
8.9 % |
10.3 % |
||||||
|
PIK |
0.4 % |
0.5 % |
||||||
|
Fee amortization |
0.4 % |
0.3 % |
||||||
|
Total |
9.7 % |
11.1 % |
||||||
|
(3) |
The dollar-weighted average annualized effective yield is computed using the effective interest rate for the Company's debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors in the Company's common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors. |
|
(4) |
The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing equity positions and debt investments on non-accrual status. |
Results of Operations
Investment income for the three months ended
Gross operating expenses for the three months ended
Net investment income was
For the three months ended
Net increase in net assets resulting from operations totaled
Liquidity and Capital Resources
As of
As of
The Company issued 441,754 shares during the three months ended
Distributions
During the three months ended
Recent Portfolio Activity
The Company invested in the following portfolio companies during the three months ended
|
Activity Type |
Date |
Company |
Company Description |
Investment Amount |
Instrument Type |
||||||
|
|
|
|
Provider of premium in-pool and backyard furniture |
$ |
34,504 |
Equity |
|||||
|
|
|
Compost 360 Investments, LLC* |
Organic waste recycler and producer of compost, mulch, and engineered soils |
$ |
49,280 |
Equity |
|||||
|
|
|
|
Manufacturer of thermoset composite laminates |
$ |
13,000,000 |
Senior Secured – First Lien |
|||||
|
$ |
500,000 |
Revolver Commitment |
|||||||||
|
$ |
739,804 |
Equity |
|||||||||
|
|
|
|
Cyber-security focused value-added reseller and associated service provider |
$ |
1,300,000 |
Senior Secured – First Lien |
|||||
|
|
|
|
Provider of product testing and consumer insights |
$ |
21,710 |
Revolver Commitment |
|||||
|
|
|
Cerebro Buyer, LLC* |
Manufacturer of single-use electrodes for medical procedures |
$ |
1,130,707 |
Delayed Draw Term Loan Commitment |
|||||
|
|
|
|
Provider of residential electrical services |
$ |
45,000 |
Revolver Commitment |
|||||
|
|
|
|
Manufacturer and wholesaler of confectionary products |
$ |
5,317,225 |
Senior Secured – First Lien |
|||||
|
$ |
297,765 |
Equity |
|||||||||
|
|
|
|
Outsourced provider of physician-focused staffing solutions for post-acute facilities |
$ |
9,476,743 |
Senior Secured – First Lien |
|||||
|
$ |
500,000 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
500,000 |
Revolver Commitment |
|||||||||
|
$ |
646,944 |
Equity |
|||||||||
|
|
|
Microbe Formulas LLC* |
Provider of dietary supplements and other natural solutions for detox and gut health |
$ |
4,265,082 |
Senior Secured – First Lien |
|||||
|
|
|
Equine Network, LLC* |
Provider of content, information, tech-enabled services, and hosts competitions for the |
$ |
1,146,399 |
Senior Secured – First Lien |
|||||
|
$ |
66,667 |
Revolver Commitment |
|||||||||
|
|
|
2X LLC* |
Provider of outsourced digital business-to-business marketing-as-a-service |
$ |
3,861,355 |
Senior Secured – First Lien |
|||||
|
|
|
Camp Profiles LLC* |
Provider of digital marketing services to small and medium-sized businesses |
$ |
2,250,000 |
Senior Secured – First Lien |
|||||
|
|
|
|
Franchisor of ballroom dance studios |
$ |
8,819,468 |
Senior Secured – First Lien |
|||||
|
$ |
500,000 |
Revolver Commitment |
|||||||||
|
$ |
142,460 |
Equity |
|||||||||
|
|
|
Advanced Barrier Extrusions, LLC* |
Manufacturer of high barrier forming |
$ |
604,622 |
Revolver Commitment |
|||||
|
|
|
|
Provider of drug and alcohol forensic toxicology testing |
$ |
6,000,000 |
Senior Secured – First Lien |
|||||
|
$ |
500,000 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
100,000 |
Revolver Commitment |
|||||||||
|
$ |
110,000 |
Equity |
|||||||||
|
|
|
iNovex |
Provider of government IT services |
$ |
7,522,184 |
Senior Secured – First Lien |
|||||
|
$ |
100,000 |
Revolver Commitment |
|||||||||
|
|
|
|
Provider of commercial re-roofing services |
$ |
7,558,348 |
Senior Secured – First Lien |
|||||
|
$ |
6,717,083 |
Revolver Commitment |
|||||||||
|
$ |
893,991 |
Equity |
|||||||||
|
|
|
|
Provider of intellectual content, technical trade programs, research groups, and conferences for utility companies |
$ |
3,200,000 |
Senior Secured – First Lien |
|||||
|
|
|
|
Provider of premium catering services in the Southeast |
$ |
6,796,831 |
Senior Secured – First Lien |
|||||
|
$ |
2,216,358 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
100,000 |
Revolver Commitment |
|||||||||
|
$ |
465,637 |
Equity |
|||||||||
|
|
|
|
Material handling equipment dealer and aftermarket parts and services provider |
$ |
142,200 |
Equity |
|||||
|
|
|
Tiger 21, LLC |
Facilitator of peer-to-peer wealth focused insights and events for ultra-high net worth individuals |
$ |
12,000,000 |
Senior Secured – First Lien |
|||||
|
$ |
100,000 |
Revolver Commitment |
|||||||||
|
$ |
564,635 |
Equity |
|||||||||
|
*Existing portfolio company |
|||||||||||
The Company realized investments in the following portfolio companies during the three months ended
|
Activity Type |
Date |
Company |
Company Description |
Proceeds Received |
Realized Gain |
Instrument Type |
||||||||
|
Full Repayment |
|
|
Manufacturer of water well equipment, specialized filtration pumps, and custom castings |
$ |
12,738,093 |
$ |
— |
Senior Secured – First Lien |
||||||
|
Full Realization |
|
|
Provider of point-of-care patient engagement and marketing solutions for pharmaceutical companies |
$ |
1,704,298 |
$ |
651,379 |
Equity |
||||||
|
Full Repayment |
|
|
Operator of freestanding urgent care/emergency room combination facilities |
$ |
16,647,430 |
$ |
— |
Senior Secured – First Lien |
||||||
|
$ |
514,101 |
$ |
514,101 |
Equity |
||||||||||
|
Full Repayment |
|
|
Provider of radiation oncology center management services |
$ |
17,518,143 |
$ |
— |
Senior Secured – First Lien |
||||||
|
*Existing portfolio company |
||||||||||||||
Events Subsequent to
The Company's management has evaluated subsequent events through
Investment Portfolio
The Company invested in the following portfolio companies subsequent to
|
Activity Type |
Date |
Company |
Company Description |
Investment Amount |
Instrument Type |
||||||
|
|
|
|
Manufacturer of trench shoring and safety equipment sold to equipment rental companies |
$ |
8,500,000 |
Senior Secured – First Lien |
|||||
|
$ |
100,000 |
Revolver Commitment |
|||||||||
|
$ |
498,491 |
Equity |
|||||||||
|
|
|
|
Residential asbestos abatement provider |
$ |
7,330,762 |
Senior Secured – First Lien |
|||||
|
$ |
2,681,986 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
100,000 |
Revolver Commitment |
|||||||||
|
$ |
163,109 |
Equity |
|||||||||
|
|
|
|
Provider of fundraising training and tools for higher education institutions and other nonprofits |
$ |
7,400,000 |
Senior Secured – First Lien |
|||||
|
$ |
3,753,955 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
100,000 |
Revolver Commitment |
|||||||||
|
$ |
325,764 |
Equity |
|||||||||
|
|
|
|
Provider of connected TV advertising services |
$ |
7,801,439 |
Senior Secured – First Lien |
|||||
|
$ |
2,524,737 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
100,000 |
Revolver Commitment |
|||||||||
|
$ |
170,362 |
Equity |
|||||||||
|
|
|
Florachem Corporation* |
Distiller and supplier of natural citrus, pine, and specialty inputs |
$ |
877,716 |
Senior Secured – First Lien |
|||||
|
|
|
|
Cyber breach response and monitoring services |
$ |
8,722,887 |
Senior Secured – First Lien |
|||||
|
$ |
100,000 |
Revolver Commitment |
|||||||||
|
$ |
352,915 |
Equity |
|||||||||
|
|
|
|
Distributor and manufacturer of intelligent traffic solution equipment |
$ |
5,137,070 |
Senior Secured – First Lien |
|||||
|
$ |
109,312 |
Delayed Draw Term Loan Commitment |
|||||||||
|
$ |
100,000 |
Revolver Commitment |
|||||||||
|
*Existing portfolio company |
|||||||||||
Credit Facility
The outstanding balance under the Credit Facility as of
SBA-guaranteed debentures
On
Distributions Declared
On
|
Ex-Dividend |
Record |
Payment |
Amount per |
||||||
|
Declared |
Date |
Date |
Date |
Share |
|||||
|
|
|
|
|
$ |
0.1333 |
||||
|
|
|
|
|
$ |
0.1333 |
||||
|
|
|
|
|
$ |
0.1333 |
||||
Conference Call Information
For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 643131. Starting approximately two hours after the conclusion of the call, a replay will be available through
For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of the Company's website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on the Company's website for approximately 90 days.
About
The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies (typically those with
Forward-Looking Statements
Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the
Contacts
(713) 292-5414
thuskinson@stelluscapital.com
|
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES |
||||||
|
|
|
|||||
|
ASSETS |
||||||
|
Controlled investments at fair value (amortized cost of |
$ |
7,652,436 |
$ |
6,175,994 |
||
|
Non-controlled, non-affiliated investments, at fair value (amortized cost of |
945,845,252 |
868,284,689 |
||||
|
Cash and cash equivalents |
20,058,594 |
26,125,741 |
||||
|
Receivable for sales and repayments of investments |
335,689 |
371,877 |
||||
|
Interest receivable |
4,947,765 |
4,882,338 |
||||
|
Income tax receivable |
1,301,965 |
1,588,708 |
||||
|
Other receivables |
87,995 |
42,995 |
||||
|
Related party receivable |
3,687 |
— |
||||
|
Deferred offering costs |
— |
7,312 |
||||
|
Prepaid expenses |
666,866 |
606,674 |
||||
|
Total Assets |
$ |
980,900,249 |
$ |
908,086,328 |
||
|
LIABILITIES |
||||||
|
Notes Payable |
$ |
99,444,355 |
$ |
98,996,412 |
||
|
Credit Facility payable |
172,314,315 |
156,564,776 |
||||
|
SBA-guaranteed debentures |
321,251,939 |
320,273,358 |
||||
|
Dividends payable |
3,663,233 |
— |
||||
|
Management fees payable |
4,034,109 |
2,918,536 |
||||
|
Income incentive fees payable |
3,109,560 |
2,885,180 |
||||
|
Interest payable |
5,281,343 |
5,241,164 |
||||
|
Unearned revenue |
548,626 |
397,725 |
||||
|
Administrative services payable |
393,513 |
402,151 |
||||
|
Deferred tax liability |
— |
188,893 |
||||
|
Other accrued expenses and liabilities |
937,316 |
278,345 |
||||
|
Total Liabilities |
$ |
610,978,309 |
$ |
588,146,540 |
||
|
Commitments and contingencies (Note 7) |
||||||
|
Net Assets |
$ |
369,921,940 |
$ |
319,939,788 |
||
|
NET ASSETS |
||||||
|
Common stock, par value |
$ |
27,481 |
$ |
24,125 |
||
|
Paid-in capital |
379,549,272 |
335,918,984 |
||||
|
Total distributable loss |
(9,654,813) |
(16,003,321) |
||||
|
Net Assets |
$ |
369,921,940 |
$ |
319,939,788 |
||
|
Total Liabilities and Net Assets |
$ |
980,900,249 |
$ |
908,086,328 |
||
|
Net Asset Value Per Share |
$ |
13.46 |
$ |
13.26 |
||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||
|
For the years ended |
|||||||||
|
|
|
|
|||||||
|
INVESTMENT INCOME |
|||||||||
|
From controlled investments: |
|||||||||
|
Interest income |
$ |
81,636 |
$ |
37,897 |
$ |
— |
|||
|
From non-controlled, non-affiliated investments |
|||||||||
|
Interest income |
99,804,184 |
101,978,891 |
72,964,999 |
||||||
|
Other income |
4,850,313 |
3,830,780 |
2,147,577 |
||||||
|
Total Investment Income |
$ |
104,736,133 |
$ |
105,847,568 |
$ |
75,112,576 |
|||
|
OPERATING EXPENSES |
|||||||||
|
Management fees |
$ |
15,698,129 |
$ |
15,452,347 |
$ |
14,848,174 |
|||
|
Valuation fees |
380,239 |
373,628 |
351,752 |
||||||
|
Administrative services expenses |
1,916,283 |
1,908,191 |
1,810,576 |
||||||
|
Income incentive fees |
10,045,966 |
10,189,888 |
3,782,151 |
||||||
|
Capital gains incentive fee reversal |
— |
(569,528) |
(2,818,623) |
||||||
|
Professional fees |
1,190,232 |
1,455,372 |
1,103,693 |
||||||
|
Directors' fees |
412,000 |
406,000 |
329,000 |
||||||
|
Insurance expense |
499,913 |
492,596 |
503,907 |
||||||
|
Interest expense and other fees |
31,506,068 |
32,011,317 |
24,469,285 |
||||||
|
Income tax expense |
1,808,838 |
1,333,452 |
1,161,668 |
||||||
|
Other general and administrative expenses |
1,175,765 |
891,170 |
984,309 |
||||||
|
Total Operating Expenses |
$ |
64,633,433 |
$ |
63,944,433 |
$ |
46,525,892 |
|||
|
Income incentive fee waiver |
(1,826,893) |
(307,442) |
— |
||||||
|
Total Operating Expenses, net of fee waivers |
$ |
62,806,540 |
$ |
63,636,991 |
$ |
46,525,892 |
|||
|
Net Investment Income |
$ |
41,929,593 |
$ |
42,210,577 |
$ |
28,586,684 |
|||
|
Net realized (loss) gain on non-controlled, non-affiliated investments |
$ |
(15,737,004) |
$ |
(30,211,467) |
$ |
3,660,595 |
|||
|
Net realized loss on foreign currency translations |
(94,730) |
(112,481) |
(6,091) |
||||||
|
Net change in unrealized appreciation (depreciation) on controlled investments |
826,772 |
(430,577) |
— |
||||||
|
Net change in unrealized appreciation (depreciation) on non-controlled, non-affiliated investments |
18,743,637 |
3,222,729 |
(17,542,230) |
||||||
|
Net change in unrealized (depreciation) appreciation on foreign currency translations |
(14,755) |
(6,504) |
6,040 |
||||||
|
Benefit (provision) for taxes on net unrealized depreciation (appreciation) on investments |
188,893 |
(126,957) |
(213,214) |
||||||
|
Benefit for taxes on net realized loss on investments |
2,221 |
2,987,847 |
— |
||||||
|
Net Increase in Net Assets Resulting from Operations |
$ |
45,844,627 |
17,533,167 |
14,491,784 |
|||||
|
Net Investment Income Per Share—basic and diluted |
$ |
1.64 |
$ |
1.92 |
$ |
1.46 |
|||
|
Net Increase in Net Assets Resulting from Operations Per Share – basic and diluted |
$ |
1.79 |
$ |
0.80 |
$ |
0.74 |
|||
|
Weighted Average Shares of Common Stock Outstanding—basic and diluted |
25,596,593 |
22,004,648 |
19,552,931 |
||||||
|
Distributions Per Share—basic and diluted |
$ |
1.61 |
$ |
1.61 |
$ |
1.30 |
|||
|
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS |
||||||||||||||
|
Common Stock |
Total |
|||||||||||||
|
Number |
Par |
Paid-in |
distributable |
|||||||||||
|
of shares |
value |
capital |
(loss) earnings |
Net Assets |
||||||||||
|
Balances as of |
19,517,595 |
$ |
19,518 |
$ |
274,559,121 |
$ |
10,532,594 |
$ |
285,111,233 |
|||||
|
Net investment income |
— |
— |
— |
28,586,684 |
28,586,684 |
|||||||||
|
Net realized gain on investments |
— |
— |
— |
3,660,595 |
3,660,595 |
|||||||||
|
Net realized loss on foreign currency translation |
— |
— |
— |
(6,091) |
(6,091) |
|||||||||
|
Net change in unrealized depreciation on investments |
— |
— |
— |
(17,542,230) |
(17,542,230) |
|||||||||
|
Net change in unrealized appreciation on foreign currency translations |
— |
— |
— |
6,040 |
6,040 |
|||||||||
|
Provision for taxes on unrealized appreciation on investments |
— |
— |
— |
(213,214) |
(213,214) |
|||||||||
|
Return of capital and other tax related adjustments |
— |
— |
(1,040,884) |
1,040,884 |
— |
|||||||||
|
Distributions from net investment income |
— |
— |
— |
(21,633,343) |
(21,633,343) |
|||||||||
|
Distributions from net realized capital gains |
— |
— |
— |
(3,789,693) |
(3,789,693) |
|||||||||
|
Issuance of common stock, net of offering costs(1) |
149,174 |
149 |
1,596,483 |
— |
1,596,632 |
|||||||||
|
Balances at |
19,666,769 |
$ |
19,667 |
$ |
275,114,720 |
$ |
642,226 |
$ |
275,776,613 |
|||||
|
Net investment income |
— |
— |
— |
42,210,577 |
42,210,577 |
|||||||||
|
Net realized loss on investments |
— |
— |
— |
(30,211,467) |
(30,211,467) |
|||||||||
|
Net realized loss on foreign currency translation |
— |
— |
— |
(112,481) |
(112,481) |
|||||||||
|
Net change in unrealized appreciation on investments |
— |
— |
— |
2,792,152 |
2,792,152 |
|||||||||
|
Net change in unrealized depreciation on foreign currency translations |
— |
— |
— |
(6,504) |
(6,504) |
|||||||||
|
Provision for taxes on unrealized appreciation on investments |
— |
— |
— |
(126,957) |
(126,957) |
|||||||||
|
Benefit for taxes on realized loss on investments |
— |
— |
— |
2,987,847 |
2,987,847 |
|||||||||
|
Return of capital and other tax related adjustments |
— |
— |
(1,348,766) |
1,348,766 |
— |
|||||||||
|
Distributions from net investment income |
— |
— |
— |
(35,080,734) |
(35,080,734) |
|||||||||
|
Distributions from net realized capital gains |
— |
— |
— |
(446,746) |
(446,746) |
|||||||||
|
Issuance of common stock, net of offering costs(1) |
4,458,873 |
4,458 |
62,153,030 |
— |
62,157,488 |
|||||||||
|
Balances at |
24,125,642 |
$ |
24,125 |
$ |
335,918,984 |
$ |
(16,003,321) |
$ |
319,939,788 |
|||||
|
Net investment income |
— |
— |
— |
41,929,593 |
41,929,593 |
|||||||||
|
Net realized loss on investments |
— |
— |
— |
(15,737,004) |
(15,737,004) |
|||||||||
|
Net realized loss on foreign currency translation |
— |
— |
— |
(94,730) |
(94,730) |
|||||||||
|
Net change in unrealized appreciation on investments |
— |
— |
— |
19,570,409 |
19,570,409 |
|||||||||
|
Net change in unrealized depreciation on foreign currency translations |
— |
— |
— |
(14,755) |
(14,755) |
|||||||||
|
Provision for taxes on unrealized appreciation on investments |
— |
— |
— |
188,893 |
188,893 |
|||||||||
|
Benefit for taxes on realized loss on investments |
— |
— |
— |
2,221 |
2,221 |
|||||||||
|
Return of capital and other tax related adjustments |
— |
— |
(1,727,556) |
1,727,556 |
— |
|||||||||
|
Distributions from net investment income |
— |
— |
— |
(40,679,308) |
(40,679,308) |
|||||||||
|
Distributions from net realized capital gains |
— |
— |
— |
(544,367) |
(544,367) |
|||||||||
|
Issuance of common stock, net of offering costs(1) |
3,355,476 |
3,356 |
45,357,844 |
— |
45,361,200 |
|||||||||
|
Balances at |
27,481,118 |
$ |
27,481 |
$ |
379,549,272 |
$ |
(9,654,813) |
$ |
369,921,940 |
|||||
|
_________________ |
|
|
(1) |
See Note 4 to the Consolidated Financial Statements on Form 10-K filed with the |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
|
For the years ended |
|||||||||
|
|
|
|
|||||||
|
Cash flows from operating activities |
|||||||||
|
Net increase in net assets resulting from operations |
$ |
45,844,627 |
$ |
17,533,167 |
$ |
14,491,784 |
|||
|
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: |
|||||||||
|
Purchases of investments |
(221,154,933) |
(183,858,762) |
(211,010,869) |
||||||
|
Proceeds from sales and repayments of investments |
151,834,875 |
134,223,224 |
127,548,194 |
||||||
|
Net change in unrealized (appreciation) depreciation on investments |
(19,570,409) |
(2,792,152) |
17,542,230 |
||||||
|
Net change in unrealized depreciation (appreciation) on foreign currency translations |
14,755 |
6,360 |
(5,897) |
||||||
|
Increase in investments due to PIK |
(3,310,111) |
(3,799,843) |
(1,357,177) |
||||||
|
Amortization of premium and accretion of discount, net |
(2,715,802) |
(2,749,543) |
(2,519,462) |
||||||
|
Deferred tax (benefit) provision |
(188,893) |
126,957 |
213,214 |
||||||
|
Amortization of loan structure fees |
1,140,079 |
657,323 |
567,375 |
||||||
|
Amortization of deferred financing costs |
447,943 |
446,720 |
446,719 |
||||||
|
Amortization of loan fees on SBA-guaranteed debentures |
978,582 |
1,255,753 |
1,227,952 |
||||||
|
Net realized loss (gain) on investments |
15,737,004 |
30,211,467 |
(3,660,595) |
||||||
|
Changes in other assets and liabilities |
|||||||||
|
Increase in interest receivable |
(65,427) |
(897,929) |
(1,039,810) |
||||||
|
Decrease (increase) in income tax receivable |
286,743 |
(1,588,708) |
— |
||||||
|
(Increase) decrease in other receivables |
(45,000) |
(8,750) |
20,507 |
||||||
|
Increase in related party receivables |
(3,687) |
— |
— |
||||||
|
(Increase) decrease in prepaid expenses |
(60,192) |
60,593 |
(155,053) |
||||||
|
Increase (decrease) in management fees payable |
1,115,573 |
(4,231,871) |
3,696,182 |
||||||
|
Increase in income incentive fees payable |
224,380 |
420,772 |
715,278 |
||||||
|
Decrease in capital gains incentive fees payable |
— |
(569,528) |
(2,818,623) |
||||||
|
(Decrease) increase in administrative services payable |
(8,638) |
45,232 |
(29,449) |
||||||
|
Increase in interest payable |
40,179 |
600,323 |
947,179 |
||||||
|
(Decrease) increase in related party payable |
— |
(1,060,321) |
1,060,321 |
||||||
|
Increase (decrease) in unearned revenue |
150,901 |
77,050 |
(209,051) |
||||||
|
Decrease in income tax payable |
— |
(1,175,373) |
(2,094,141) |
||||||
|
Increase (decrease) in other accrued expenses and liabilities |
658,971 |
(197,248) |
136,635 |
||||||
|
|
$ |
(28,648,480) |
$ |
(17,265,087) |
$ |
(56,286,557) |
|||
|
Cash flows from Financing Activities |
|||||||||
|
Proceeds from the issuance of common stock |
$ |
46,494,756 |
$ |
63,348,436 |
$ |
2,158,540 |
|||
|
Sales load for common stock issued |
(698,166) |
(943,248) |
(31,066) |
||||||
|
Offering costs paid for common stock issued |
(428,078) |
(253,913) |
(517,054) |
||||||
|
Stockholder distributions paid |
(37,560,442) |
(35,527,480) |
(26,594,095) |
||||||
|
Proceeds from SBA-guaranteed debentures |
— |
11,400,000 |
63,600,000 |
||||||
|
Financing costs paid on SBA-guaranteed debentures |
— |
(277,590) |
(1,548,660) |
||||||
|
Financing costs paid on Credit Facility |
(691,137) |
(2,663,106) |
(193,635) |
||||||
|
Borrowings under Credit Facility |
187,900,000 |
108,400,000 |
149,888,800 |
||||||
|
Repayments of Credit Facility |
(172,435,600) |
(148,135,600) |
(126,607,800) |
||||||
|
Net Cash Provided (Used) by Financing Activities |
$ |
22,581,333 |
$ |
(4,652,501) |
$ |
60,155,030 |
|||
|
|
$ |
(6,067,147) |
$ |
(21,917,588) |
$ |
3,868,473 |
|||
|
Cash and Cash Equivalents Balance at Beginning of Period |
26,125,741 |
48,043,329 |
44,174,856 |
||||||
|
Cash and Cash Equivalents Balance at End of Period |
$ |
20,058,594 |
$ |
26,125,741 |
$ |
48,043,329 |
|||
|
Supplemental and Non-Cash Activities |
|||||||||
|
Cash paid for interest expense |
$ |
28,899,285 |
$ |
29,051,198 |
$ |
21,280,060 |
|||
|
Income and excise tax paid |
1,808,838 |
2,508,825 |
3,255,809 |
||||||
|
(Decrease) increase in distributions payable |
3,663,233 |
— |
(1,171,059) |
||||||
|
(Decrease) increase in deferred offering costs |
(7,312) |
6,212 |
(13,788) |
||||||
|
Exchange of investments |
8,256,411 |
3,610,846 |
— |
||||||
|
Reconciliation of Core Net Investment Income (1) (Unaudited) |
||||||||
|
Three Months Ended |
Year Ended |
|||||||
|
|
|
|
|
|||||
|
Net investment income |
|
|
|
|
||||
|
Capital gains incentive reversal |
— |
— |
— |
(569,528) |
||||
|
Income tax expense |
503,890 |
251,395 |
1,808,838 |
1,333,452 |
||||
|
Core net investment income |
|
|
|
|
||||
|
Per share amounts: |
||||||||
|
Net investment income per share |
|
|
|
|
||||
|
Core net investment income per share |
|
|
|
|
||||
|
Reconciliation of Realized Net Investment Income (2) (Unaudited) |
||||||||
|
Three Months Ended |
Year Ended |
|||||||
|
|
|
|
|
|||||
|
Net investment income |
|
|
|
|
||||
|
Net realized gain (loss) on investments |
5,952,860 |
(30,536,249) |
(15,737,004) |
(30,211,467) |
||||
|
Net realized loss on foreign currency translation |
(17,740) |
(39,699) |
(94,730) |
(112,481) |
||||
|
Benefit for taxes on realized loss on investments |
— |
2,987,847 |
2,221 |
2,987,847 |
||||
|
Total Realized Net Investment Income (Loss) |
|
( |
|
|
||||
|
Per share amounts: |
||||||||
|
Net investment income per share |
|
|
|
|
||||
|
Realized net investment income (loss) per share |
|
( |
|
|
||||
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