Press Release
<< Back
Stellus Capital Investment Corporation Reports Results for its Third Fiscal Quarter Ended September 30, 2025
FINANCIAL HIGHLIGHTS
($ in millions, except data relating to per share amounts and shares outstanding)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
||||
|
|
Amount |
Per Share |
|
Amount |
Per Share |
|
Amount |
Per Share |
|
Amount |
Per Share |
|
Net investment income |
|
|
|
|
|
|
|
|
|
|
|
|
Core net investment income(1) |
9.65 |
0.34 |
|
10.62 |
0.40 |
|
29.93 |
1.06 |
|
33.59 |
1.34 |
|
Net realized gain (loss) on investments |
2.86 |
0.10 |
|
(3.30) |
(0.13) |
|
(3.96) |
(0.14) |
|
(21.69) |
(0.87) |
|
Net realized loss on foreign currency translation |
(0.01) |
— |
|
(0.02) |
— |
|
(0.06) |
— |
|
(0.08) |
— |
|
Loss on debt extinguishment |
(0.16) |
(0.01) |
|
— |
— |
|
(0.16) |
(0.01) |
|
— |
— |
|
Total realized income(2) |
|
|
|
|
|
|
|
|
|
|
|
|
Distributions |
(11.43) |
(0.40) |
|
(10.63) |
(0.40) |
|
(33.89) |
(1.20) |
|
(30.32) |
(1.21) |
|
Net unrealized change in (depreciation) appreciation on investments |
(5.14) |
(0.18) |
|
8.51 |
0.33 |
|
(2.51) |
(0.08) |
|
26.44 |
1.05 |
|
Net unrealized change in appreciation on foreign currency translation |
— |
— |
|
0.01 |
— |
|
0.04 |
— |
|
— |
— |
|
Benefit for taxes on unrealized depreciation on investments in taxable subsidiaries |
— |
— |
|
— |
— |
|
— |
— |
|
0.19 |
0.01 |
|
Net increase in net assets resulting from operations |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
28,480,472 |
|
|
26,326,426 |
|
|
28,168,527 |
|
|
25,066,626 |
|
|
|
|
(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 losses 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair value |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
|
|
|
|
|
|
|
Net assets |
|
|
|
|
|
|
|
|
|
Shares outstanding |
|
28,947,254 |
|
27,481,118 |
|
|
|
|
|
Net asset value per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
|
|
|
|
|
|
|
|
New investments |
|
|
|
|
|
|
|
|
|
Repayments of investments |
|
(39.0) |
|
(15.5) |
|
(85.6) |
|
(87.3) |
|
Net activity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
As of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of portfolio company investments |
|
115 |
|
105 |
|
|
|
|
|
Number of debt investments |
|
100 |
|
92 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average yield of debt and other |
|
|
|
|
|
|
|
|
|
Cash |
|
9.0 % |
|
9.5 % |
|
|
|
|
|
Payment-in-kind ("PIK") |
|
0.6 % |
|
0.4 % |
|
|
|
|
|
Fee amortization |
|
0.4 % |
|
0.4 % |
|
|
|
|
|
Total |
|
10.0 % |
|
10.3 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average yield of total investments(4) |
|
|
|
|
|
|
|
|
|
Cash |
|
8.4 % |
|
8.9 % |
|
|
|
|
|
PIK |
|
0.6 % |
|
0.4 % |
|
|
|
|
|
Fee amortization |
|
0.4 % |
|
0.4 % |
|
|
|
|
|
Total |
|
9.4 % |
|
9.7 % |
|
|
|
|
|
|
|
|
(3) |
The dollar-weighted average annualized effective yield is computed using the effective interest rate for our 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 531,106 shares during the three months ended
Distributions
For both 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 |
|
|
|
|
|
|
Equine Network, LLC* |
|
Hosts competitions and provides services for the |
|
$ |
2,122,453 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
Facilitator of peer-to-peer events connecting companies with |
|
$ |
11,500,000 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
|
|
$ |
100,000 |
|
Revolver Commitment |
|
|
|
|
|
|
|
|
|
$ |
515,556 |
|
Equity |
|
|
|
|
|
|
|
Provider of homecare services |
|
$ |
7,785,007 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
|
|
$ |
2,500,000 |
|
Delayed Draw Term Loan Commitment |
|
|
|
|
|
|
|
|
|
$ |
100,000 |
|
Revolver Commitment |
|
|
|
|
|
|
|
|
|
$ |
910,966 |
|
Equity |
|
|
|
|
|
|
|
Provider of liquid metering products and integrated solutions to the |
|
$ |
66,030 |
|
Equity |
|
|
|
|
|
|
|
Provider of continuing medical education services |
|
$ |
1,000,000 |
|
Senior Secured – First Lien |
|
|
|
|
|
Invincible Boat Company LLC* |
|
Manufacturer and marketer of ultra-premium saltwater fishing boats |
|
$ |
531,915 |
|
Revolver Commitment |
|
|
|
|
|
|
|
Provider of IT asset disposition services |
|
$ |
6,100,000 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
|
|
$ |
1,000,000 |
|
Delayed Draw Term Loan Commitment |
|
|
|
|
|
|
|
|
|
$ |
100,000 |
|
Revolver Commitment |
|
|
|
|
|
|
|
|
|
$ |
180,000 |
|
Equity |
|
|
|
|
|
Compost 360 Acquisition, LLC* |
|
Organic waste recycler and producer of compost, mulch, and |
|
$ |
27,630 |
|
Equity |
|
|
|
|
|
|
|
Provider of commercial re-roofing and restoration services |
|
$ |
12,000,000 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
|
|
$ |
100,000 |
|
Revolver Commitment |
|
|
|
|
|
|
|
|
|
$ |
268,889 |
|
Equity |
|
|
|
|
|
|
|
Manufacturer of fiber optic cable assembly equipment, consumables, |
|
$ |
11,580,474 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
|
|
$ |
100,000 |
|
Revolver Commitment |
|
|
|
|
|
|
|
|
|
$ |
412,252 |
|
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 (Loss) |
|
Instrument Type |
||
|
Full Realization |
|
|
|
|
|
Gym franchise operator |
|
$ |
2,799,098 |
|
$ |
2,799,098 |
|
Equity |
|
Full Repayment |
|
|
|
Rogers |
|
HVAC and plumbing designer, |
|
$ |
8,272,652 |
|
$ |
— |
|
Senior Secured – First Lien |
|
Full Repayment |
|
|
|
CompleteCase, LLC |
|
Provider of online uncontested |
|
$ |
6,287,212 |
|
$ |
— |
|
Senior Secured – First Lien |
|
Full Repayment |
|
|
|
|
|
Wholesale bakery serving the |
|
$ |
15,284,524 |
|
$ |
— |
|
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 |
|
|
|
|
|
|
|
|
Provider of patient safety, clinical risk mitigation, and |
|
$ |
500,000 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
Offers residential property brokerage, title & |
|
$ |
183,470 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
Manufacturer and distributor of home and personal |
|
$ |
18,000 |
|
Priority Revolver Commitment |
|
|
|
|
|
|
|
Provider of outsourced electronic product |
|
$ |
4,759,099 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
|
|
$ |
3,172,733 |
|
Delayed Draw Term Loan Commitment |
|
|
|
|
|
|
|
|
|
$ |
100,000 |
|
Revolver Commitment |
|
|
|
|
|
|
|
|
|
$ |
267,728 |
|
Equity |
|
|
|
|
|
Mobotrex Acquisition, LLC* |
|
Distributor and manufacturer of intelligent traffic |
|
$ |
3,523,787 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
|
|
$ |
1,549,698 |
|
Delayed Draw Term Loan Commitment |
|
|
|
|
|
|
|
|
|
$ |
73,776 |
|
Revolver Commitment |
|
|
|
|
|
Ad.Net Acquisition, LLC* |
|
A digital marketing company that targets |
|
$ |
1,896,568 |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
|
|
$ |
85,027 |
|
Equity |
|
*Existing portfolio company |
The Company realized investments in the following portfolio companies subsequent to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Activity Type |
|
Date |
|
Company |
|
Company Description |
|
Proceeds Received |
|
Realized Gain |
|
Instrument Type |
||
|
Full Repayment |
|
|
|
|
|
End-to-end information technologies |
|
$ |
9,725,000 |
|
$ |
— |
|
Senior Secured – First Lien |
|
|
|
|
|
|
|
|
|
$ |
48,875 |
|
$ |
— |
|
Delayed Draw Term Loan |
|
Full Repayment |
|
|
|
|
|
Provider of technology integration |
|
$ |
7,014,746 |
|
$ |
— |
|
Unsecured |
|
Full Realization |
|
|
|
|
|
|
|
$ |
1,066,715 |
|
$ |
1,066,715 |
|
Warrants |
Credit Facility
The outstanding balance under the Credit Facility as of
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 118871. 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 our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our 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. 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 lower 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 Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts
(713) 292-5414
thuskinson@stelluscapital.com
|
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
(unaudited) |
|
|
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
Controlled investments at fair value (amortized cost of |
|
$ |
13,568,095 |
|
$ |
7,652,436 |
|
|
Non-controlled, non-affiliated investments, at fair value (amortized cost of |
|
|
996,641,541 |
|
|
945,845,252 |
|
|
Cash and cash equivalents |
|
|
9,024,020 |
|
|
20,058,594 |
|
|
Receivable for sales and repayments of investments |
|
|
437,552 |
|
|
335,689 |
|
|
Interest receivable |
|
|
7,047,686 |
|
|
4,947,765 |
|
|
Income tax receivable |
|
|
1,522,198 |
|
|
1,301,965 |
|
|
Other receivables |
|
|
99,111 |
|
|
87,995 |
|
|
Related party receivable |
|
|
22,500 |
|
|
3,687 |
|
|
Prepaid expenses |
|
|
281,634 |
|
|
666,866 |
|
|
Total Assets |
|
$ |
1,028,644,337 |
|
$ |
980,900,249 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
Notes Payable |
|
$ |
172,522,707 |
|
$ |
99,444,355 |
|
|
Credit Facility payable |
|
|
163,995,602 |
|
|
172,314,315 |
|
|
SBA-guaranteed debentures |
|
|
295,805,634 |
|
|
321,251,939 |
|
|
Dividends payable |
|
|
3,858,669 |
|
|
3,663,233 |
|
|
Management fees payable |
|
|
4,401,305 |
|
|
4,034,109 |
|
|
Income incentive fees payable |
|
|
2,642,033 |
|
|
3,109,560 |
|
|
Interest payable |
|
|
5,912,375 |
|
|
5,281,343 |
|
|
Related party payable |
|
|
136,535 |
|
|
— |
|
|
Unearned revenue |
|
|
640,637 |
|
|
548,626 |
|
|
Administrative services payable |
|
|
507,139 |
|
|
393,513 |
|
|
Other accrued expenses and liabilities |
|
|
491,374 |
|
|
937,316 |
|
|
Total Liabilities |
|
$ |
650,914,010 |
|
$ |
610,978,309 |
|
|
Commitments and contingencies (Note 7) |
|
|
|
|
|
|
|
|
Net Assets |
|
$ |
377,730,327 |
|
$ |
369,921,940 |
|
|
NET ASSETS |
|
|
|
|
|
|
|
|
Common stock, par value |
|
$ |
28,947 |
|
$ |
27,481 |
|
|
Paid-in capital |
|
|
399,410,630 |
|
|
379,549,272 |
|
|
Total distributable loss |
|
|
(21,709,250) |
|
|
(9,654,813) |
|
|
Net Assets |
|
$ |
377,730,327 |
|
$ |
369,921,940 |
|
|
Total Liabilities and Net Assets |
|
$ |
1,028,644,337 |
|
$ |
980,900,249 |
|
|
Net Asset Value Per Share |
|
$ |
13.05 |
|
$ |
13.46 |
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended |
|
For the nine months ended |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
INVESTMENT INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From controlled investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
81,636 |
|
|
From non-controlled, non-affiliated investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
23,634,587 |
|
|
24,403,375 |
|
|
69,923,357 |
|
|
72,969,302 |
|
|
Payment-in-kind interest income |
|
|
1,378,166 |
|
|
934,986 |
|
|
3,870,717 |
|
|
2,490,854 |
|
|
Other income |
|
|
1,262,956 |
|
|
1,159,898 |
|
|
3,129,895 |
|
|
3,579,415 |
|
|
Total Investment Income |
|
$ |
26,275,709 |
|
$ |
26,498,259 |
|
$ |
76,923,969 |
|
$ |
79,121,207 |
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees |
|
$ |
4,401,305 |
|
$ |
3,959,554 |
|
$ |
12,735,472 |
|
$ |
11,664,020 |
|
|
Valuation fees |
|
|
172,364 |
|
|
151,535 |
|
|
368,760 |
|
|
343,753 |
|
|
Administrative services expenses |
|
|
592,409 |
|
|
469,274 |
|
|
1,515,991 |
|
|
1,441,436 |
|
|
Income incentive fees |
|
|
2,166,047 |
|
|
2,564,922 |
|
|
6,460,613 |
|
|
7,616,562 |
|
|
Professional fees |
|
|
395,098 |
|
|
312,034 |
|
|
1,125,937 |
|
|
847,866 |
|
|
Directors' fees |
|
|
93,250 |
|
|
93,250 |
|
|
297,750 |
|
|
315,750 |
|
|
Insurance expense |
|
|
99,248 |
|
|
126,362 |
|
|
295,006 |
|
|
376,840 |
|
|
Interest expense and other fees |
|
|
8,949,075 |
|
|
7,956,403 |
|
|
25,892,109 |
|
|
23,840,473 |
|
|
Income tax expense |
|
|
515,686 |
|
|
360,192 |
|
|
1,444,184 |
|
|
1,304,948 |
|
|
Other general and administrative expenses |
|
|
227,037 |
|
|
245,043 |
|
|
945,690 |
|
|
908,185 |
|
|
Total Operating Expenses |
|
$ |
17,611,519 |
|
$ |
16,238,569 |
|
$ |
51,081,512 |
|
$ |
48,659,833 |
|
|
Income incentive fee waiver |
|
|
(471,251) |
|
|
— |
|
|
(2,643,020) |
|
|
(1,826,893) |
|
|
Total Operating Expenses, net of fee waivers |
|
$ |
17,140,268 |
|
$ |
16,238,569 |
|
$ |
48,438,492 |
|
$ |
46,832,940 |
|
|
Net Investment Income |
|
$ |
9,135,441 |
|
$ |
10,259,690 |
|
$ |
28,485,477 |
|
$ |
32,288,267 |
|
|
Net realized loss on controlled investments |
|
$ |
— |
|
$ |
— |
|
$ |
(1,132,576) |
|
$ |
— |
|
|
Net realized gain (loss) on non-controlled, non-affiliated |
|
|
2,867,155 |
|
|
(3,297,615) |
|
|
(2,827,517) |
|
|
(21,689,864) |
|
|
Net realized loss on foreign currency translations |
|
|
(9,422) |
|
|
(22,095) |
|
|
(59,080) |
|
|
(76,990) |
|
|
Loss on debt extinguishment |
|
|
(164,762) |
|
|
— |
|
|
(164,762) |
|
|
— |
|
|
Net change in unrealized appreciation on controlled |
|
|
51,367 |
|
|
248,746 |
|
|
1,397,134 |
|
|
923,505 |
|
|
Net change in unrealized (depreciation) appreciation on |
|
|
(5,187,426) |
|
|
8,255,272 |
|
|
(3,906,233) |
|
|
25,512,422 |
|
|
Net change in unrealized (depreciation) appreciation on |
|
|
(325) |
|
|
14,588 |
|
|
38,540 |
|
|
5,099 |
|
|
Benefit for taxes on net unrealized depreciation on investments |
|
|
— |
|
|
— |
|
|
— |
|
|
188,893 |
|
|
Benefit for taxes on net realized loss on investments |
|
|
— |
|
|
2,221 |
|
|
— |
|
|
2,221 |
|
|
Net Increase in Net Assets Resulting from Operations |
|
$ |
6,692,028 |
|
$ |
15,460,807 |
|
$ |
21,830,983 |
|
$ |
37,153,553 |
|
|
Net Investment Income Per Share—basic and diluted |
|
$ |
0.32 |
|
$ |
0.39 |
|
$ |
1.01 |
|
$ |
1.29 |
|
|
Net Increase in Net Assets Resulting from Operations |
|
$ |
0.23 |
|
$ |
0.59 |
|
$ |
0.78 |
|
$ |
1.48 |
|
|
Weighted Average Shares of Common Stock |
|
|
28,480,472 |
|
|
26,326,426 |
|
|
28,168,527 |
|
|
25,066,626 |
|
|
Distributions Per Share—basic and diluted |
|
$ |
0.40 |
|
$ |
0.40 |
|
$ |
1.20 |
|
$ |
1.21 |
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
|
|
|
|
Total |
|
|
|
||||
|
|
|
Number |
|
Par |
|
Paid-in |
|
distributable |
|
|
|
|||
|
|
|
of shares |
|
value |
|
capital |
|
(loss) |
|
Net Assets |
||||
|
Balances at December 31, 2023 |
|
24,125,642 |
|
$ |
24,125 |
|
$ |
335,918,984 |
|
$ |
(16,003,321) |
|
$ |
319,939,788 |
|
Net investment income |
|
— |
|
|
— |
|
|
— |
|
|
10,235,916 |
|
|
10,235,916 |
|
Net realized loss on investments |
|
— |
|
|
— |
|
|
— |
|
|
(20,384,731) |
|
|
(20,384,731) |
|
Net realized loss on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
(25,106) |
|
|
(25,106) |
|
Net change in unrealized appreciation on investments |
|
— |
|
|
— |
|
|
— |
|
|
23,518,590 |
|
|
23,518,590 |
|
Net change in unrealized depreciation on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
(3,602) |
|
|
(3,602) |
|
Provision for taxes on unrealized appreciation on investments |
|
— |
|
|
— |
|
|
— |
|
|
(192,607) |
|
|
(192,607) |
|
Distributions from net investment income |
|
— |
|
|
— |
|
|
— |
|
|
(9,647,844) |
|
|
(9,647,844) |
|
Balances at March 31, 2024 |
|
24,125,642 |
|
$ |
24,125 |
|
$ |
335,918,984 |
|
$ |
(12,502,705) |
|
$ |
323,440,404 |
|
Net investment income |
|
— |
|
|
— |
|
|
— |
|
|
11,792,661 |
|
|
11,792,661 |
|
Net realized gain on investments |
|
— |
|
|
— |
|
|
— |
|
|
1,992,482 |
|
|
1,992,482 |
|
Net realized loss on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
(29,789) |
|
|
(29,789) |
|
Net change in unrealized depreciation on investments |
|
— |
|
|
— |
|
|
— |
|
|
(5,586,681) |
|
|
(5,586,681) |
|
Net change in unrealized depreciation on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
(5,887) |
|
|
(5,887) |
|
Benefit for taxes on unrealized depreciation on investments |
|
— |
|
|
— |
|
|
— |
|
|
381,500 |
|
|
381,500 |
|
Distributions from net investment income |
|
— |
|
|
— |
|
|
— |
|
|
(10,049,073) |
|
|
(10,049,073) |
|
Issuance of common stock, net of offering costs(1) |
|
1,855,356 |
|
|
1,856 |
|
|
25,248,020 |
|
|
— |
|
|
25,249,876 |
|
Balances at June 30, 2024 |
|
25,980,998 |
|
$ |
25,981 |
|
$ |
361,167,004 |
|
$ |
(14,007,492) |
|
$ |
347,185,493 |
|
Net investment income |
|
— |
|
|
— |
|
|
— |
|
|
10,259,690 |
|
|
10,259,690 |
|
Net realized loss on investments |
|
— |
|
|
— |
|
|
— |
|
|
(3,297,615) |
|
|
(3,297,615) |
|
Net realized loss on foreign currency translation |
|
— |
|
|
— |
|
|
— |
|
|
(22,095) |
|
|
(22,095) |
|
Net change in unrealized appreciation on investments |
|
— |
|
|
— |
|
|
— |
|
|
8,504,018 |
|
|
8,504,018 |
|
Net change in unrealized appreciation on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
14,588 |
|
|
14,588 |
|
Benefit for taxes on net realized loss on investments |
|
— |
|
|
— |
|
|
— |
|
|
2,221 |
|
|
2,221 |
|
Distributions from net investment income |
|
— |
|
|
— |
|
|
— |
|
|
(10,625,512) |
|
|
(10,625,512) |
|
Issuance of common stock, net of offering costs(1) |
|
1,058,366 |
|
|
1,058 |
|
|
14,263,441 |
|
|
— |
|
|
14,264,499 |
|
Balances at September 30, 2024 |
|
27,039,364 |
|
$ |
27,039 |
|
$ |
375,430,445 |
|
$ |
(9,172,197) |
|
$ |
366,285,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at December 31, 2024 |
|
27,481,118 |
|
$ |
27,481 |
|
$ |
379,549,272 |
|
$ |
(9,654,813) |
|
$ |
369,921,940 |
|
Net investment income |
|
— |
|
|
— |
|
|
— |
|
|
9,788,809 |
|
|
9,788,809 |
|
Net realized loss on investments |
|
— |
|
|
— |
|
|
— |
|
|
(5,967,221) |
|
|
(5,967,221) |
|
Net realized loss on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
(29,655) |
|
|
(29,655) |
|
Net change in unrealized appreciation on investments |
|
— |
|
|
— |
|
|
— |
|
|
1,193,293 |
|
|
1,193,293 |
|
Net change in unrealized depreciation on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
8,319 |
|
|
8,319 |
|
Distributions from net investment income |
|
— |
|
|
— |
|
|
— |
|
|
(11,087,389) |
|
|
(11,087,389) |
|
Issuance of common stock, net of offering costs(1) |
|
656,085 |
|
|
656 |
|
|
8,937,430 |
|
|
— |
|
|
8,938,086 |
|
Balances at March 31, 2025 |
|
28,137,203 |
|
$ |
28,137 |
|
$ |
388,486,702 |
|
$ |
(15,748,657) |
|
$ |
372,766,182 |
|
Net investment income |
|
— |
|
|
— |
|
|
— |
|
|
9,561,227 |
|
|
9,561,227 |
|
Net realized loss on investments |
|
— |
|
|
— |
|
|
— |
|
|
(860,027) |
|
|
(860,027) |
|
Net realized loss on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
(20,003) |
|
|
(20,003) |
|
Net change in unrealized appreciation on investments |
|
— |
|
|
— |
|
|
— |
|
|
1,433,667 |
|
|
1,433,667 |
|
Net change in unrealized appreciation on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
30,546 |
|
|
30,546 |
|
Distributions from net investment income |
|
— |
|
|
— |
|
|
— |
|
|
(11,363,618) |
|
|
(11,363,618) |
|
Issuance of common stock, net of offering costs(1) |
|
278,945 |
|
|
279 |
|
|
3,822,637 |
|
|
— |
|
|
3,822,916 |
|
Balances at June 30, 2025 |
|
28,416,148 |
|
$ |
28,416 |
|
$ |
392,309,339 |
|
$ |
(16,966,865) |
|
$ |
375,370,890 |
|
Net investment income |
|
— |
|
|
— |
|
|
— |
|
|
9,135,441 |
|
|
9,135,441 |
|
Net realized gain on investments |
|
— |
|
|
— |
|
|
— |
|
|
2,867,155 |
|
|
2,867,155 |
|
Net realized loss on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
(9,422) |
|
|
(9,422) |
|
Loss on debt extinguishment |
|
— |
|
|
— |
|
|
— |
|
|
(164,762) |
|
|
(164,762) |
|
Net change in unrealized depreciation on investments |
|
— |
|
|
— |
|
|
— |
|
|
(5,136,059) |
|
|
(5,136,059) |
|
Net change in unrealized depreciation on foreign currency translations |
|
— |
|
|
— |
|
|
— |
|
|
(325) |
|
|
(325) |
|
Distributions from net investment income |
|
— |
|
|
— |
|
|
— |
|
|
(11,434,413) |
|
|
(11,434,413) |
|
Issuance of common stock, net of offering costs(1) |
|
531,106 |
|
|
531 |
|
|
7,101,291 |
|
|
— |
|
|
7,101,822 |
|
Balances at September 30, 2025 |
|
28,947,254 |
|
$ |
28,947 |
|
$ |
399,410,630 |
|
$ |
(21,709,250) |
|
$ |
377,730,327 |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended |
||||
|
|
|
September 30, 2025 |
|
September 30, 2024 |
||
|
Cash Flows from Operating Activities |
|
|
|
|
|
|
|
Net increase in net assets resulting from operations |
|
$ |
21,830,983 |
|
$ |
37,153,553 |
|
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: |
|
|
|
|
|
|
|
Purchases of investments |
|
|
(141,983,167) |
|
|
(112,624,812) |
|
Proceeds from sales and repayments of investments |
|
|
85,635,632 |
|
|
87,308,914 |
|
Net change in unrealized depreciation (appreciation) on investments |
|
|
2,509,099 |
|
|
(26,435,927) |
|
Net change in unrealized appreciation on foreign currency translations |
|
|
(37,811) |
|
|
(5,099) |
|
Increase in investments due to PIK |
|
|
(3,870,717) |
|
|
(2,490,856) |
|
Amortization of premium and accretion of discount, net |
|
|
(2,172,972) |
|
|
(2,045,992) |
|
Deferred tax benefit |
|
|
— |
|
|
(188,893) |
|
Amortization of loan structure fees |
|
|
954,033 |
|
|
825,891 |
|
Amortization of deferred financing costs |
|
|
447,751 |
|
|
335,345 |
|
Amortization of discount on Notes Payable |
|
|
63,395 |
|
|
— |
|
Amortization of loan fees on SBA-guaranteed debentures |
|
|
553,695 |
|
|
784,763 |
|
Net realized loss on investments |
|
|
3,960,093 |
|
|
21,689,864 |
|
Loss on debt extinguishment |
|
|
164,762 |
|
|
— |
|
Changes in other assets and liabilities |
|
|
|
|
|
|
|
Increase in interest receivable |
|
|
(2,099,921) |
|
|
(1,389,856) |
|
Increase in income tax receivable |
|
|
(220,233) |
|
|
(228,663) |
|
Increase in other receivables |
|
|
(11,116) |
|
|
(25,000) |
|
Increase in related party receivables |
|
|
(18,813) |
|
|
— |
|
Decrease in prepaid expenses |
|
|
385,232 |
|
|
349,950 |
|
Increase in management fees payable |
|
|
367,196 |
|
|
1,041,018 |
|
(Decrease) increase in income incentive fees payable |
|
|
(467,527) |
|
|
269,396 |
|
Increase (decrease) in administrative services payable |
|
|
113,626 |
|
|
(1,118) |
|
Increase (decrease) in interest payable |
|
|
631,032 |
|
|
(3,988,133) |
|
Increase in related party payable |
|
|
136,535 |
|
|
1,898,854 |
|
Increase in unearned revenue |
|
|
92,011 |
|
|
152,623 |
|
(Decrease) increase in other accrued expenses and liabilities |
|
|
(445,942) |
|
|
718,139 |
|
|
|
$ |
(33,483,144) |
|
$ |
3,103,961 |
|
Cash Flows from Financing Activities |
|
|
|
|
|
|
|
Proceeds from the issuance of common stock |
|
$ |
20,588,960 |
|
$ |
40,370,901 |
|
Sales load for common stock issued |
|
|
(308,998) |
|
|
(606,145) |
|
Offering costs paid for common stock issued |
|
|
(417,138) |
|
|
(243,067) |
|
Stockholder distributions paid |
|
|
(33,689,984) |
|
|
(26,718,082) |
|
Proceeds from issuance of Notes Payable |
|
|
125,000,000 |
|
|
— |
|
Repayment of Notes Payable |
|
|
(50,000,000) |
|
|
— |
|
Premium from issuance of Notes Payable |
|
|
648,000 |
|
|
— |
|
Discount from issuance of Notes Payable |
|
|
(770,250) |
|
|
— |
|
Financing costs paid on Notes Payable |
|
|
(2,475,306) |
|
|
— |
|
Repayments of SBA-guaranteed debentures |
|
|
(26,000,000) |
|
|
— |
|
Financing costs paid on Credit Facility |
|
|
(1,525,014) |
|
|
(101,348) |
|
Borrowings under Credit Facility |
|
|
198,900,000 |
|
|
122,400,000 |
|
Repayments of Credit Facility |
|
|
(207,501,700) |
|
|
(125,751,700) |
|
Net Cash Provided by Financing Activities |
|
$ |
22,448,570 |
|
$ |
9,350,559 |
|
Net (Decrease) Increase in Cash and Cash Equivalents |
|
$ |
(11,034,574) |
|
$ |
12,454,520 |
|
Cash and Cash Equivalents Balance at Beginning of Period |
|
$ |
20,058,594 |
|
$ |
26,125,741 |
|
Cash and Cash Equivalents Balance at End of Period |
|
$ |
9,024,020 |
|
$ |
38,580,261 |
|
Supplemental and Non-Cash Activities |
|
|
|
|
|
|
|
Cash paid for interest expense |
|
$ |
24,940,287 |
|
$ |
25,882,607 |
|
Income and excise tax paid |
|
|
1,664,417 |
|
|
1,533,611 |
|
Exchange of investments |
|
|
1,663,301 |
|
|
8,256,411 |
|
Reconciliation of Core Net Investment Income (1) (Unaudited) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
September 30, 2025 |
|
September 30, 2024 |
|
September 30, 2025 |
|
September 30, 2024 |
|
Net investment income |
|
$9,135,441 |
|
$10,259,690 |
|
$28,485,477 |
|
$32,288,267 |
|
Income tax expense |
|
515,686 |
|
360,192 |
|
1,444,184 |
|
1,304,948 |
|
Core net investment income |
|
$9,651,127 |
|
$10,619,882 |
|
$29,929,661 |
|
$33,593,215 |
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
Net investment income per share |
|
$0.32 |
|
$0.39 |
|
$1.01 |
|
$1.29 |
|
Core net investment income per share |
|
$0.34 |
|
$0.40 |
|
$1.06 |
|
$1.34 |
|
Reconciliation of Realized Net Investment Income (2) (Unaudited) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
|
September 30, 2025 |
|
September 30, 2024 |
|
September 30, 2025 |
|
September 30, 2024 |
|
Net investment income |
|
$9,135,441 |
|
$10,259,690 |
|
$28,485,477 |
|
$32,288,267 |
|
Net realized gain (loss) on investments |
|
2,867,155 |
|
(3,297,615) |
|
(3,960,093) |
|
(21,689,864) |
|
Net realized loss on foreign currency translation |
|
(9,422) |
|
(22,095) |
|
(59,080) |
|
(76,990) |
|
Benefit for taxes on net realized loss on investments |
|
— |
|
2,221 |
|
— |
|
2,221 |
|
Loss on debt extinguishment |
|
(164,762) |
|
— |
|
(164,762) |
|
— |
|
Total realized net investment income |
|
$11,828,412 |
|
$6,942,201 |
|
$24,301,542 |
|
$10,523,634 |
|
|
|
|
|
|
|
|
|
|
|
Per share amounts: |
|
|
|
|
|
|
|
|
|
Net investment income per share |
|
$0.32 |
|
$0.39 |
|
$1.01 |
|
$1.29 |
|
Realized net investment income per share |
|
$0.42 |
|
$0.26 |
|
$0.86 |
|
$0.42 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/stellus-capital-investment-corporation-reports-results-for-its-third-fiscal-quarter-ended-september-30-2025-302610679.html
SOURCE