Monroe Capital Corporation (Nasdaq: MRCC) (“Monroe”) today
announced its financial results for the fourth quarter and full
year ended December 31, 2023.
Except where the context suggests otherwise, the terms “Monroe,”
“we,” “us,” “our,” and “Company” refer to Monroe Capital
Corporation.
Fourth Quarter 2023 Financial Highlights
- Net Investment Income of $5.3 million,
or $0.24 per share
- Adjusted Net Investment Income (a non-GAAP measure described
below) of $5.6 million, or $0.26 per share
- Net increase in net assets resulting from operations of $1.6
million, or $0.07 per share
- Net Asset Value (“NAV”) of $203.7 million, or $9.40 per
share
- Paid quarterly dividend of $0.25 per share on December 29,
2023
- Current annual cash dividend yield to shareholders of
approximately 13.4% (1)
Full Year 2023 Financial Highlights
- Net Investment Income of $23.2
million, or $1.07 per share
- Adjusted Net Investment Income (a non-GAAP measure described
below) of $24.1 million, or $1.11 per share
- Net increase in net assets resulting from operations of $0.4
million, or $0.02 per share
Chief Executive Officer Theodore L. Koenig commented, “We are
pleased to report that our Adjusted Net Investment Income covered
our dividend for the 15th consecutive quarter. As we look ahead in
2024, our focus continues to be on portfolio credit quality while
capitalizing on the current market dynamics in order to generate
strong risk-adjusted returns for our stockholders.”
Monroe Capital Corporation is a business development company
affiliate of the award-winning private credit investment firm and
lender, Monroe Capital LLC.
______________________________________________________________________(1)
Based on an annualized dividend and closing share price as of March
8, 2024.
Management Commentary
Adjusted Net Investment Income totaled $5.6 million or $0.26 per
share for the quarter ended December 31, 2023. This compares with
$5.5 million or $0.25 per share for the quarter ended September 30,
2023. The slight increase in Adjusted Net Investment Income during
the quarter is driven by a combination of factors, including a
comparatively smaller reversal of previously accrued fee income and
reductions in interest expense as a result of lower leverage during
the quarter. These increases were partially offset by a decrease in
interest income as a result of a decrease in average invested
assets. See Non-GAAP Financial Measure – Adjusted Net Investment
Income discussion below.
NAV decreased by $0.18 per share, or 1.9%, to $203.7 million or
$9.40 per share as of December 31, 2023, compared to $207.6 million
or $9.58 per share as of September 30, 2023. The decrease in NAV
this quarter was primarily the result of net unrealized losses on
the portfolio attributable to a few specific legacy portfolio
companies that continued to be affected by macroeconomic and
idiosyncratic challenges which impacted financial performance.
During the quarter, MRCC’s debt-to-equity leverage decreased
from 1.60 times debt-to-equity to 1.49 times debt-to-equity. The
decrease in leverage was primarily driven by an increase in
proceeds from sales and paydowns received during the quarter which
were used to paydown the revolving credit facility. We continue to
focus on managing our investment portfolio and selectively
redeploying capital resulting from repayments.
Selected Financial Highlights(in thousands,
except per share data)
|
December 31, 2023 |
|
September 30, 2023 |
Consolidated
Statements of Assets and Liabilities data: |
(audited) |
|
(unaudited) |
Investments, at fair value |
$ |
488,386 |
|
|
$ |
518,284 |
|
Total assets |
|
513,186 |
|
|
|
542,536 |
|
Total net assets |
|
203,724 |
|
|
|
207,555 |
|
Net asset value per share |
|
9.40 |
|
|
|
9.58 |
|
|
For the Quarters Ended |
|
December 31, 2023 |
|
September 30, 2023 |
Consolidated
Statements of Operations data: |
(unaudited) |
Net investment income |
$ |
5,278 |
|
|
$ |
5,420 |
|
Adjusted net investment
income (2) |
|
5,589 |
|
|
|
5,515 |
|
Net gain (loss) |
|
(3,694 |
) |
|
|
(5,656 |
) |
Net increase (decrease) in net
assets resulting from operations |
|
1,584 |
|
|
|
(236 |
) |
|
|
|
|
Per share data: |
|
|
|
Net investment income |
$ |
0.24 |
|
|
$ |
0.25 |
|
Adjusted net investment
income (2) |
|
0.26 |
|
|
|
0.25 |
|
Net gain (loss) |
|
(0.17 |
) |
|
|
(0.26 |
) |
Net increase (decrease) in net
assets resulting from operations |
|
0.07 |
|
|
|
(0.01 |
) |
______________________________________________________________________(2)
See Non-GAAP Financial Measure – Adjusted Net Investment Income
below for a detailed description of this non-GAAP measure and a
reconciliation from net investment income to Adjusted Net
Investment Income. The Company uses this non-GAAP financial measure
internally in analyzing financial results and believes that this
non-GAAP financial measure is useful to investors as an additional
tool to evaluate ongoing results and trends for the Company.
Portfolio Review
The Company had debt and equity investments in 96 portfolio
companies, with a total fair value of $488.4 million as of December
31, 2023, as compared to debt and equity investments in 99
portfolio companies, with a total fair value of $518.3 million, as
of September 30, 2023. The Company’s portfolio consists primarily
of first lien loans, representing 82.4% of the portfolio as of
December 31, 2023, and 82.9% of the portfolio as of September 30,
2023. As of December 31, 2023, the weighted average contractual and
effective yield on the Company’s debt and preferred equity
investments was 12.1% and 12.1%, respectively, as compared to the
weighted average contractual and effective yield of 12.4% and
12.5%, respectively, as of September 30, 2023. Portfolio yield is
calculated only on the portion of the portfolio that has a
contractual coupon and therefore does not account for dividends on
equity investments (other than preferred equity). As of December
31, 2023, 1.5% of the Company’s total investments at fair value
were on non-accrual as compared to 1.2% as of September 30,
2023.
Financial Review
Results of Operations: Fourth Quarter 2023
Net investment income for the quarter ended December 31, 2023
totaled $5.3 million, or $0.24 per share, compared to $5.4 million,
or $0.25 per share, for the quarter ended September 30, 2023.
Adjusted Net Investment Income was $5.6 million, or $0.26 per
share, for the quarter ended December 31, 2023, compared to $5.5
million, or $0.25 per share, for the quarter ended September 30,
2023. Investment income for the quarter ended December 31, 2023
totaled $15.5 million, compared to $15.6 million for the quarter
ended September 30, 2023. Both quarters included an impact for the
reversal of previously accrued fee income associated with the
Company’s former loan investment in IT Global Holdings, LLC (“IT
Global”), $0.5 million for the quarter ended December 31, 2023 and
$1.1 million for the quarter ended September 30, 2023. The Company
has no remaining fee income accrued associated with IT Global.
Excluding the impact of these fee income reversals, investment
income decreased by $0.7 million, primarily as a result of the
decrease in the size of the Company’s average investment portfolio
during the quarter. Total expenses for the quarter ended December
31, 2023 totaled $10.2 million, consistent with $10.2 million for
the quarter ended September 30, 2023. A decline in interest and
other debt financing expenses driven by a reduction in the
Company’s average leverage level was offset by an increase in
income taxes, including excise taxes, primarily associated with
blocker entities that hold certain of the Company’s equity
investments.
Net gain (loss) was ($3.7) million for the quarter ended
December 31, 2023, compared to ($5.7) million for the quarter ended
September 30, 2023. This net loss for the quarter ended December
31, 2023 was primarily attributable to unrealized mark-to-market
losses of a few specific legacy portfolio companies.
Net increase (decrease) in net assets resulting from operations
was $1.6 million, or $0.07 per share, for the quarter ended
December 31, 2023, compared to ($0.2) million, or ($0.01) per
share, for the quarter ended September 30, 2023.
Results of Operations: Full Year 2023
Net investment income for the year ended December 31, 2023
totaled $23.2 million, or $1.07 per share, compared to $22.2
million, or $1.02 per share, for the year ended December 31, 2022.
Adjusted Net Investment Income was $24.1 million, or $1.11 per
share, for the year ended December 31, 2023, compared to $23.6
million, or $1.09 per share, for the year ended December 31, 2022.
Investment income for the year ended December 31, 2023 totaled
$64.3 million, compared to $56.6 million for the year ended
December 31, 2022. The increase in investment income compared to
prior year was primarily the result of an increase interest income,
partially offset by a decrease in fee income. Investment income for
the year ended December 31, 2023 included the reversal of $1.6
million of previously accrued fee income associated with the
Company’s former loan investment in IT Global and the year ended
December 31, 2022 included the one-time benefit of $2.0 million in
previously unrecorded interest income associated with the repayment
of the Company’s former loan investment in Curion Holdings, LLC
(“Curion”). Excluding these two non-recurring items, investment
income increased $11.3 million, primarily as a result of an
increase in interest income due to the increases in effective rates
on the portfolio from the rising interest rate environment. Total
expenses, net of incentive fee and management fee waivers, for the
year ended December 31, 2023 totaled $41.0 million, compared to
$34.4 million for the year ended December 31, 2022. The $6.6
million increase in expenses during the year was primarily driven
by an increase in interest and other debt financing expenses,
resulting from the rising interest rate environment, and an
increase in incentive fees driven by stronger pre-incentive fee net
investment income performance.
Net gain (loss) was ($22.9) million for the year ended December
31, 2023, compared to ($25.0) million for the year ended December
31, 2022. Net realized and unrealized gains (losses) on investments
were ($23.0) million for the year ended December 31, 2023. This net
loss was primarily attributable to unrealized mark-to-market losses
of a few specific legacy portfolio companies that continue to be
affected by macroeconomic and idiosyncratic challenges and the
Company’s investment in MRCC Senior Loan Fund I, LLC (“SLF”). The
decrease in value at the SLF was driven by net losses on the SLF’s
investments, which are loans to traditional upper middle-market
borrowers.
Net increase (decrease) in net assets resulting from operations
was $0.4 million, or $0.02 per share, for the year ended December
31, 2023, compared to ($2.8) million, or ($0.13) per share, for the
year ended December 31, 2022.
Liquidity and Capital Resources
At December 31, 2023, the Company had $5.0 million in cash and
cash equivalents, $174.1 million of debt outstanding on its
revolving credit facility and $130.0 million of debt outstanding on
its 2026 Notes. As of December 31, 2023, the Company had
approximately $80.9 million available for additional borrowings on
its revolving credit facility, subject to borrowing base
availability.
MRCC Senior Loan Fund
SLF is a joint venture with Life Insurance Company of the
Southwest (“LSW”), an affiliate of National Life Insurance Company.
SLF invests primarily in senior secured loans to middle market
companies in the United States. The Company and LSW have each
committed $50.0 million of capital to the joint venture. As of
December 31, 2023, the Company had made net capital contributions
of $42.7 million in SLF with a fair value of $33.1 million, as
compared to net capital contributions of $42.7 million in SLF with
a fair value of $33.3 million at September 30, 2023. During the
quarter ended December 31, 2023, the Company received dividend
income from SLF of $0.9 million, consistent with the $0.9 million
received during the quarter ended September 30, 2023. SLF’s
underlying investments are loans to middle-market borrowers that
are generally larger than the rest of MRCC’s portfolio which is
focused on lower middle-market companies. SLF’s average mark on the
underlying investment portfolio increased by 1.5% during the
quarter, from 89.4% of amortized cost as of September 30, 2023, to
90.9% of amortized cost as of December 31, 2023, primarily as a
result of the realization of a debt position during the
quarter.
As of December 31, 2023, SLF had total assets of $148.4 million
(including investments at fair value of $139.9 million), total
liabilities of $82.2 million (including borrowings under the $110.0
million secured revolving credit facility with Capital One, N.A.
(the “SLF Credit Facility”) of $82.0 million) and total members’
capital of $66.2 million. As of September 30, 2023, SLF had total
assets of $158.7 million (including investments at fair value of
$148.2 million), total liabilities of $92.1 million (including
borrowings under the SLF Credit Facility of $92.1 million) and
total members’ capital of $66.6 million.
Non-GAAP Financial Measure – Adjusted Net Investment
Income
On a supplemental basis, the Company discloses Adjusted Net
Investment Income (including on a per share basis) which is a
financial measure that is calculated and presented on a basis of
methodology other than in accordance with generally accepted
accounting principles of the United States of America (“non-GAAP”).
Adjusted Net Investment Income represents net investment income,
excluding the net capital gains incentive fee and income taxes. The
Company uses this non-GAAP financial measure internally in
analyzing financial results and believes that this non-GAAP
financial measure is useful to investors as an additional tool to
evaluate ongoing results and trends for the Company. The management
agreement with the Company’s advisor provides that a capital gains
incentive fee is determined and paid annually with respect to
realized capital gains (but not unrealized capital gains) to the
extent such realized capital gains exceed realized and unrealized
capital losses for such year. Management believes that Adjusted Net
Investment Income is a useful indicator of operations exclusive of
any net capital gains incentive fee as net investment income does
not include gains associated with the capital gains incentive
fee.
The following tables provide a reconciliation from net
investment income (the most comparable GAAP measure) to Adjusted
Net Investment Income for the periods presented:
|
For the Quarters Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
Amount |
|
Per ShareAmount |
|
Amount |
|
Per ShareAmount |
|
(in thousands, except per share data) |
Net investment income |
$ |
5,278 |
|
|
$ |
0.24 |
|
|
$ |
5,420 |
|
|
$ |
0.25 |
|
Net capital gains incentive
fee |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income taxes, including excise
taxes |
|
311 |
|
|
|
0.02 |
|
|
|
95 |
|
|
|
0.00 |
|
Adjusted Net Investment
Income |
$ |
5,589 |
|
|
$ |
0.26 |
|
|
$ |
5,515 |
|
|
$ |
0.25 |
|
|
For the Years Ended |
|
December 31, 2023 |
|
December 31, 2022 |
|
Amount |
|
Per ShareAmount |
|
Amount |
|
Per ShareAmount |
|
(in thousands, except per share data) |
Net investment income |
$ |
23,249 |
|
|
$ |
1.07 |
|
|
$ |
22,192 |
|
|
$ |
1.02 |
|
Net capital gains incentive
fee |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income taxes, including excise
taxes |
|
806 |
|
|
|
0.04 |
|
|
|
1,405 |
|
|
|
0.07 |
|
Adjusted Net Investment
Income |
$ |
24,055 |
|
|
$ |
1.11 |
|
|
$ |
23,597 |
|
|
$ |
1.09 |
|
|
Adjusted Net Investment Income may not be comparable to similar
measures presented by other companies, as it is a non-GAAP
financial measure that is not based on a comprehensive set of
accounting rules or principles and therefore may be defined
differently by other companies. In addition, Adjusted Net
Investment Income should be considered in addition to, not as a
substitute for, or superior to, financial measures determined in
accordance with GAAP.
Fourth Quarter 2023 Financial Results Conference
Call
The Company will host a webcast and conference call to discuss
these operating and financial results on Tuesday, March 12, 2024 at
11:00 a.m. ET. The webcast will be hosted on a webcast link located
in the Investor Relations section of the Company’s website at
http://ir.monroebdc.com/events.cfm. To participate in the
conference call, please dial (800) 715-9871 approximately 10
minutes prior to the call. Please reference conference ID #
6675350.
For those unable to listen to the live broadcast, the webcast
will be available for replay on the Company’s website approximately
two hours after the event.
For a more detailed discussion of the financial and other
information included in this press release, please also refer to
the Company’s Form 10-K for the year ended December 31, 2023 to be
filed with the SEC (www.sec.gov) on Monday, March 11, 2024.
MONROE CAPITAL CORPORATIONCONSOLIDATED
STATEMENTS OF ASSETS AND LIABILITIES(in thousands,
except per share data) |
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
(audited) |
|
(unaudited) |
|
(audited) |
ASSETS |
|
|
|
|
|
Investments, at fair
value: |
|
|
|
|
|
Non-controlled/non-affiliate company investments |
$ |
371,723 |
|
|
$ |
400,117 |
|
|
$ |
418,913 |
|
Non-controlled affiliate company investments |
|
83,541 |
|
|
|
84,898 |
|
|
|
86,618 |
|
Controlled affiliate company investments |
|
33,122 |
|
|
|
33,269 |
|
|
|
35,509 |
|
Total investments, at fair value (amortized cost of: $510,876,
$536,795 and $579,307, respectively) |
|
488,386 |
|
|
|
518,284 |
|
|
|
541,040 |
|
Cash and cash equivalents |
|
4,958 |
|
|
|
5,324 |
|
|
|
5,450 |
|
Unrealized gain on foreign
currency forward contracts |
|
— |
|
|
|
— |
|
|
|
1,507 |
|
Interest and dividend
receivable |
|
19,349 |
|
|
|
18,627 |
|
|
|
16,457 |
|
Other assets |
|
493 |
|
|
|
301 |
|
|
|
541 |
|
Total assets |
|
513,186 |
|
|
|
542,536 |
|
|
|
564,995 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Debt: |
|
|
|
|
|
Revolving credit facility |
|
174,100 |
|
|
|
201,100 |
|
|
|
204,600 |
|
2026 Notes |
|
130,000 |
|
|
|
130,000 |
|
|
|
130,000 |
|
Total debt |
|
304,100 |
|
|
|
331,100 |
|
|
|
334,600 |
|
Less: Unamortized deferred financing costs |
|
(3,235 |
) |
|
|
(3,566 |
) |
|
|
(4,486 |
) |
Total debt, less unamortized deferred financing costs |
|
300,865 |
|
|
|
327,534 |
|
|
|
330,114 |
|
Interest payable |
|
3,078 |
|
|
|
1,621 |
|
|
|
3,041 |
|
Management fees payable |
|
2,100 |
|
|
|
2,140 |
|
|
|
2,221 |
|
Incentive fees payable |
|
1,319 |
|
|
|
1,355 |
|
|
|
1,380 |
|
Accounts payable and accrued
expenses |
|
2,100 |
|
|
|
2,293 |
|
|
|
3,220 |
|
Directors' fees payable |
|
— |
|
|
|
38 |
|
|
|
- |
|
Total liabilities |
|
309,462 |
|
|
|
334,981 |
|
|
|
339,976 |
|
Net assets |
$ |
203,724 |
|
|
$ |
207,555 |
|
|
$ |
225,019 |
|
|
|
|
|
|
|
ANALYSIS OF NET ASSETS |
|
|
|
|
|
Common stock, $0.001 par
value, 100,000 shares authorized, 21,666, 21,666 and 21,666 shares
issued and outstanding, respectively |
$ |
22 |
|
|
$ |
22 |
|
|
$ |
22 |
|
Capital in excess of par
value |
|
298,127 |
|
|
|
298,700 |
|
|
|
298,700 |
|
Accumulated undistributed
(overdistributed) earnings |
|
(94,425 |
) |
|
|
(91,167 |
) |
|
|
(73,703 |
) |
Total net assets |
$ |
203,724 |
|
|
$ |
207,555 |
|
|
$ |
225,019 |
|
Net asset value per
share |
$ |
9.40 |
|
|
$ |
9.58 |
|
|
$ |
10.39 |
|
MONROE CAPITAL CORPORATIONCONSOLIDATED
STATEMENTS OF OPERATIONS(in thousands, except per
share data) |
|
|
For the Quarters Ended |
|
For the Years Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2023 |
|
December 31, 2022 |
|
(unaudited) |
|
(audited) |
Investment
income: |
|
|
|
|
|
|
|
Non-controlled/non-affiliate company investments: |
|
|
|
|
|
|
|
Interest income |
$ |
11,459 |
|
|
$ |
11,858 |
|
|
$ |
46,241 |
|
|
$ |
35,751 |
|
Payment-in-kind interest income |
|
830 |
|
|
|
649 |
|
|
|
3,070 |
|
|
|
3,009 |
|
Dividend income |
|
67 |
|
|
|
65 |
|
|
|
305 |
|
|
|
372 |
|
Fee income |
|
(323 |
) |
|
|
(836 |
) |
|
|
(679 |
) |
|
|
2,380 |
|
Total investment income from non-controlled/non-affiliate company
investments |
|
12,033 |
|
|
|
11,736 |
|
|
|
48,937 |
|
|
|
41,512 |
|
Non-controlled affiliate company investments: |
|
|
|
|
|
|
|
Interest income |
|
1,134 |
|
|
|
1,174 |
|
|
|
5,140 |
|
|
|
7,585 |
|
Payment-in-kind interest income |
|
1,384 |
|
|
|
1,781 |
|
|
|
6,337 |
|
|
|
3,680 |
|
Dividend income |
|
52 |
|
|
|
52 |
|
|
|
283 |
|
|
|
189 |
|
Total investment income from non-controlled affiliate company
investments |
|
2,570 |
|
|
|
3,007 |
|
|
|
11,760 |
|
|
|
11,454 |
|
Controlled affiliate company investments: |
|
|
|
|
|
|
|
Dividend income |
|
900 |
|
|
|
900 |
|
|
|
3,600 |
|
|
|
3,600 |
|
Total investment income from controlled affiliate company
investments |
|
900 |
|
|
|
900 |
|
|
|
3,600 |
|
|
|
3,600 |
|
Total investment income |
|
15,503 |
|
|
|
15,643 |
|
|
|
64,297 |
|
|
|
56,566 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Interest and other debt financing expenses |
|
5,669 |
|
|
|
5,874 |
|
|
|
22,847 |
|
|
|
17,080 |
|
Base management fees |
|
2,100 |
|
|
|
2,140 |
|
|
|
8,603 |
|
|
|
9,055 |
|
Incentive fees |
|
1,319 |
|
|
|
1,355 |
|
|
|
5,812 |
|
|
|
4,127 |
|
Professional fees |
|
178 |
|
|
|
189 |
|
|
|
719 |
|
|
|
894 |
|
Administrative service fees |
|
233 |
|
|
|
228 |
|
|
|
940 |
|
|
|
1,163 |
|
General and administrative expenses |
|
381 |
|
|
|
304 |
|
|
|
1,174 |
|
|
|
1,082 |
|
Directors' fees |
|
34 |
|
|
|
38 |
|
|
|
147 |
|
|
|
148 |
|
Operating expenses before fee waivers |
|
9,914 |
|
|
|
10,128 |
|
|
|
40,242 |
|
|
|
33,549 |
|
Base management fee waivers |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(55 |
) |
Incentive fee waivers |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(525 |
) |
Total operating expenses, net of fee waivers |
|
9,914 |
|
|
|
10,128 |
|
|
|
40,242 |
|
|
|
32,969 |
|
Net investment income before income taxes |
|
5,589 |
|
|
|
5,515 |
|
|
|
24,055 |
|
|
|
23,597 |
|
Income taxes, including excise taxes |
|
311 |
|
|
|
95 |
|
|
|
806 |
|
|
|
1,405 |
|
Net investment income |
|
5,278 |
|
|
|
5,420 |
|
|
|
23,249 |
|
|
|
22,192 |
|
Net gain
(loss): |
|
|
|
|
|
|
|
Net realized gain (loss): |
|
|
|
|
|
|
|
Non-controlled/non-affiliate company investments |
|
285 |
|
|
|
30 |
|
|
|
(38,769 |
) |
|
|
(1,129 |
) |
Non-controlled affiliate company investments |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1 |
) |
Extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,039 |
) |
Foreign currency forward contracts |
|
— |
|
|
|
— |
|
|
|
1,756 |
|
|
|
119 |
|
Foreign currency and other transactions |
|
— |
|
|
|
(4 |
) |
|
|
(135 |
) |
|
|
(36 |
) |
Net realized gain (loss) |
|
285 |
|
|
|
26 |
|
|
|
(37,148 |
) |
|
|
(2,086 |
) |
Net change in unrealized gain (loss): |
|
|
|
|
|
|
|
Non-controlled/non-affiliate company investments |
|
(2,437 |
) |
|
|
(3,346 |
) |
|
|
22,154 |
|
|
|
(12,287 |
) |
Non-controlled affiliate company investments |
|
(1,395 |
) |
|
|
(1,061 |
) |
|
|
(3,990 |
) |
|
|
(5,379 |
) |
Controlled affiliate company investments |
|
(147 |
) |
|
|
(1,276 |
) |
|
|
(2,387 |
) |
|
|
(6,116 |
) |
Foreign currency forward contracts |
|
— |
|
|
|
— |
|
|
|
(1,507 |
) |
|
|
726 |
|
Foreign currency and other transactions |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
164 |
|
Net change in unrealized gain (loss) |
|
(3,979 |
) |
|
|
(5,682 |
) |
|
|
14,270 |
|
|
|
(22,892 |
) |
Net gain (loss) |
|
(3,694 |
) |
|
|
(5,656 |
) |
|
|
(22,878 |
) |
|
|
(24,978 |
) |
Net increase (decrease) in net assets resulting from
operations |
$ |
1,584 |
|
|
$ |
(236 |
) |
|
$ |
371 |
|
|
$ |
(2,786 |
) |
|
|
|
|
|
|
|
|
Per common share
data: |
|
|
|
|
|
|
|
Net investment income per
share - basic and diluted |
$ |
0.24 |
|
|
$ |
0.25 |
|
|
$ |
1.07 |
|
|
$ |
1.02 |
|
Net increase (decrease) in net
assets resulting from operations per share - basic and diluted |
$ |
0.07 |
|
|
$ |
(0.01 |
) |
|
$ |
0.02 |
|
|
$ |
(0.13 |
) |
Weighted average common shares
outstanding - basic and diluted |
|
21,666 |
|
|
|
21,666 |
|
|
|
21,666 |
|
|
|
21,666 |
|
Additional Supplemental Information:
The composition of the Company’s investment income was as
follows (in thousands):
|
For the Quarters Ended |
|
For the Years Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2023 |
|
December 31, 2022 |
|
(unaudited) |
|
(audited) |
Interest income |
$ |
12,226 |
|
|
$ |
12,804 |
|
|
$ |
49,779 |
|
|
$ |
41,449 |
|
Payment-in-kind interest
income |
|
2,214 |
|
|
|
2,430 |
|
|
|
9,407 |
|
|
|
6,689 |
|
Dividend income |
|
1,019 |
|
|
|
1,017 |
|
|
|
4,188 |
|
|
|
4,161 |
|
Fee income |
|
(323 |
) |
|
|
(836 |
) |
|
|
(679 |
) |
|
|
2,380 |
|
Prepayment gain (loss) |
|
175 |
|
|
|
29 |
|
|
|
553 |
|
|
|
803 |
|
Accretion of discounts and
amortization of premiums |
|
192 |
|
|
|
199 |
|
|
|
1,049 |
|
|
|
1,084 |
|
Total investment income |
$ |
15,503 |
|
|
$ |
15,643 |
|
|
$ |
64,297 |
|
|
$ |
56,566 |
|
The composition of the Company’s interest expense and other debt
financing expenses was as follows (in thousands):
|
For the Quarters Ended |
|
For the Years Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2023 |
|
December 31, 2022 |
|
(unaudited) |
|
(audited) |
Interest expense - revolving credit facility |
$ |
3,783 |
|
|
$ |
3,989 |
|
|
$ |
15,319 |
|
|
$ |
8,442 |
|
Interest expense - 2026
Notes |
|
1,555 |
|
|
|
1,555 |
|
|
|
6,220 |
|
|
|
6,220 |
|
Interest expense - SBA
debentures |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
292 |
|
Amortization of deferred
financing costs |
|
331 |
|
|
|
330 |
|
|
|
1,308 |
|
|
|
2,126 |
|
Total interest and other debt financing expenses |
$ |
5,669 |
|
|
$ |
5,874 |
|
|
$ |
22,847 |
|
|
$ |
17,080 |
|
About Monroe Capital Corporation
Monroe Capital Corporation is a publicly-traded specialty
finance company that principally invests in senior, unitranche and
junior secured debt and, to a lesser extent, unsecured debt and
equity investments in middle-market companies. The Company’s
investment objective is to maximize the total return to its
stockholders in the form of current income and capital
appreciation. The Company’s investment activities are managed by
its investment adviser, Monroe Capital BDC Advisors, LLC, which is
an investment adviser registered under the Investment Advisers Act
of 1940, as amended, and an affiliate of Monroe Capital LLC. To
learn more about Monroe Capital Corporation, visit
www.monroebdc.com.
About Monroe Capital
Monroe Capital LLC (“Monroe”) is a premier boutique asset
management firm specializing in private credit markets across
various strategies, including direct lending, technology finance,
venture debt, opportunistic, structured credit, real estate and
equity. Since 2004, the firm has been successfully providing
capital solutions to clients in the U.S. and Canada. Monroe prides
itself on being a value-added and user-friendly partner to business
owners, management, and both private equity and independent
sponsors. Monroe’s platform offers a wide variety of investment
products for both institutional and high net worth investors with a
focus on generating high quality “alpha” returns irrespective of
business or economic cycles. The firm is headquartered in Chicago
and maintains 10 offices throughout the United States and Asia.
Monroe has been recognized by both its peers and investors with
various awards including Private Debt Investor as the 2023 Lower
Mid-Market Lender of the Decade, 2023 Lower Mid-Market Lender of
the Year, 2023 CLO Manager of the Year, Americas; Inc.’s 2023
Founder-Friendly Investors List; Global M&A Network as the 2023
Lower Mid-Markets Lender of the Year, U.S.A.; DealCatalyst as the
2022 Best CLO Manager of the Year; Korean Economic Daily as the
2022 Best Performance in Private Debt – Mid Cap; Creditflux as the
2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020
Private Credit Strategy of the Year. For more information and
important disclaimers, please visit www.monroecap.com.
Forward-Looking Statements
This press release may contain certain forward-looking
statements. Any such statements, other than statements of
historical fact, are likely to be affected by other unknowable
future events and conditions, including elements of the future that
are or are not under the Company’s control, and that the Company
may or may not have considered; accordingly, such statements cannot
be guarantees or assurances of any aspect of future performance.
Actual developments and results are highly likely to vary
materially from these estimates and projections of the future. Such
statements speak only as of the time when made, and the Company
undertakes no obligation to update any such statement now or in the
future.
SOURCE: Monroe Capital Corporation
Investor Contact: |
Mick Solimene |
|
Chief Investment Officer and
Chief Financial Officer |
|
Monroe Capital
Corporation |
|
(312) 598-8401 |
|
Email:
msolimene@monroecap.com |
|
|
Media Contact: |
Daniel Abramson |
|
BackBay Communications |
|
(857) 305-8441 |
|
Email:
daniel.abramson@backbaycommunications.com |
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