UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of
the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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March 2, 2015
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Hercules Technology Growth
Capital, Inc.
(Exact
name of registrant as specified in its charter)
Maryland
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814-00702
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74-3113410
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(State or other jurisdiction
of incorporation)
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(Commission File No.)
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(I.R.S. Employer
Identification No.)
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400 Hamilton Ave., Suite 310
Palo Alto, CA
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94301
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's telephone number, including area code: (650) 289-3060
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Not Applicable
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(Former name or address, if changed since last report)
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Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions (see General Instruction A.2. below):
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
On March 2, 2015, Hercules Technology Growth Capital, Inc., issued a
press release announcing its earnings for the quarter ended December 31,
2014 and that it had declared a dividend. The text of the press release
is included as an exhibit to this Form 8-K.
The information disclosed under this Item 2.02, including Exhibit 99.1
hereto, is being furnished and shall not be deemed “filed” for purposes
of Section 18 of the Securities Exchange Act of 1934 and shall not be
deemed incorporated by reference into any filing made under the
Securities Act of 1933, except as expressly set forth by specific
reference in such filing.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release dated March 2, 2015
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
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March 2, 2015
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By:
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/s/ Jessica Baron
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Jessica Baron
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Chief Financial Officer
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EXHIBIT INDEX
Exhibit No.
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Description of Exhibits
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99.1
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Press Release dated March 2, 2015
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Exhibit 99.1
Hercules
Announces Fourth Quarter and Full-Year 2014 Financial Results and
Quarterly Dividend of $0.31 per Share
Highlights
for Q4 and Full-Year 2014
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Spillover
Taxable Income (taxable income in excess of dividends paid) as of
December 31, 2014 of ~$16.7 million, or ~$0.27 per share
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Q4
2014 Distributable Net Operating Income, or “DNOI”, of ~$18.6 million,
or $0.29 per share
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Total
Investment Assets at fair value of ~$1.02 billion as of December 31,
2014, up ~12.1% year-over-year
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Net
Realized Gains of ~$20.1 million through December 31, 2014, or $0.33
per share; Net Realized Gains of ~$7.1 million in Q4 2014, or $0.11
per share
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Record
level for 2014 Total New Debt and Equity Commitments of ~$904.8
million, up ~28.3% year-over year; Record Q4 2014 Total New Debt and
Equity Commitments of ~$317.1 million, up ~152.3% quarter-over-quarter
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Record
Total New Fundings of ~$621.3 million of debt and equity investments
during 2014, up ~25.5% year-over year; Total New Fundings of ~$207.8 million
of debt and equity investments during Q4 2014, up ~164.5%
quarter-over-quarter
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Realized
record levels of Unscheduled Early Payoffs of ~$358.3 million in 2014
and ~$146.7 million in Q4 2014, excluding normal amortization of
~$135.8 million and ~$30.8 million, respectively
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Q4
2014 Net Investment Income, or “NII”, of ~$15.9 million, or $0.25 per
share, which includes ~$0.6 million of convertible debt extinguishment
expense
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Strong
liquidity position With ~$377.1 million available as of December 31,
2014
PALO ALTO, Calif.--(BUSINESS WIRE)--March 2, 2015--Hercules Technology
Growth Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the
leading specialty finance company focused on providing senior secured
loans to venture capital-backed companies in technology-related
industries, including technology, biotechnology, life science, and
energy & renewable technology, at all stages of development, today
announced its financial results for the fourth quarter and year ended
December 31, 2014.
The Company also announced that its Board of Directors has declared a
fourth quarter cash dividend of $0.31 per share, that will be payable on
March 19, 2015, to shareholders of record as of March 12, 2015; the
thirty-eighth consecutive dividend since inception bringing total
dividends declared since inception to $10.30 per share.
“Our strong finish in Q4 capped a record year for Hercules. New
originations exceeded $900 million for the year, a record for the
company, and more importantly, reaching nearly $5 billion in commitments
since our December 2003 inception. Moreover, we were especially
gratified to see another year of successful portfolio company exits from
IPO and M&A events, generating over $20 million in net realized gains in
2014,” said Manuel Henriquez, chairman and chief executive officer of
Hercules Technology Growth Capital.
Henriquez added, “2014 was an extraordinary and transformative year for
Hercules. We experienced unprecedented levels of early pay-offs
“repayments” which, when coupled with our normal amortization, totaled
nearly half a billion dollars ($500 million), or ~50% of our loan
portfolio, turned over. Our outstanding team of investment professionals
proved our market leadership position and platform’s resiliency by
successfully originating over $900 million in new commitments, funding
over $600 million in new loans, and replacing the $500 million in loan
run-off. This achieved an impressive net year-over-year investment
portfolio growth of ~$129 million, on a cost basis. By successfully
rebuilding our investment portfolio to over $1 billion by year-end, we
have effectively lowered the composite age of our loan portfolio and
expect to see materially lower levels of early pay-offs/repayments in
2015. As a result, we expect our overall GAAP yields to revert back to
our “core yields” of 12.0% to 13.0%, which excludes any beneficial
impact attributed to early loan pay-off fees and income accelerations.
We remain focused on pursuing a path of slow and steady growth and
continuing to selectively build our investment portfolio throughout
2015. We anticipate ending 2015 with an investment portfolio of ~$1.3 to
$1.5 billion, subject to market conditions and early pay-off activities
remaining relatively low.”
Henriquez concluded, “I am very proud of our achievements for both the
fourth quarter and the year. Our ability to have generated earnings
spill-over in 2014 of approximately $17 million or $0.27 per share,
should afford us the flexibility to maintain our current dividend levels
to our shareholders as we continue to build up our investment portfolio
throughout 2015. Our accomplishments are only made possible by the
amazing effort of our entire team, as well as the support and confidence
placed on us by our venture partners and innovative venture growth
entrepreneurs.”
Fourth Quarter Review and Operating Results
Investment Portfolio
During the fourth quarter, Hercules entered into new commitments to
provide debt and equity financings of ~$317.1 million, and funded
~$207.8 million of debt and equity investments to new and existing
portfolio companies.
Net investment portfolio growth during the fourth quarter, on a cost
basis, was ~$23.0 million, with originations and funding activities
offsetting ~$177.5 million in normal amortization and unscheduled early
pay offs “repayments.” The Company’s total investment portfolio, valued
at cost and fair value by category, quarter-over-quarter, is highlighted
below:
(in millions)
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Loans
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Equity
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Warrants
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Total Portfolio
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Balances at Cost at 9/30/14
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$
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929.6
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$
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43.9
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$
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38.8
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$
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1,012.3
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New fundings*
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199.6
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5.2
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3.0
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207.8
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Unscheduled paydowns
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(146.7
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)
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-
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-
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(146.7
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Principal reduction on investments
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(30.8
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-
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-
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(30.8
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Net changes attributed to conversions, liquidations, and fees
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0.3
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(4.7
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(2.9
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(7.3
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Net activity during Q4 2014
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22.4
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0.5
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0.1
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23.0
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Balances at Cost at 12/31/2014
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$
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952.0
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$
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44.4
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$
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38.9
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$
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1,035.3
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Balances at Value at 9/30/14
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$
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907.9
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$
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68.6
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$
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22.4
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$
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998.9
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Net activity during Q4 2014
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22.4
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0.5
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0.1
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23.0
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Net change in unrealized appreciation / (depreciation)
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(6.4
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2.6
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2.6
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(1.2
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Balances at Value at 12/31/2014
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$
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923.9
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$
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71.7
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$
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25.1
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$
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1,020.7
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*New fundings includes $17.7 million of restructured / refinanced
fundings
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Net investment portfolio growth for 2014, on a cost basis, was ~$129.0
million, with originations and funding activities offsetting ~$494.1
million of normal amortization and unscheduled early pay offs
“repayments.” The Company’s total investment portfolio, valued at cost
and fair value by category, year-over-year, is highlighted below:
(in millions)
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Loans
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Equity
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Warrants
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Total Portfolio
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Balances at Cost at 12/31/13
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$
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835.9
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$
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36.8
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$
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33.6
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$
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906.3
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New fundings**
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600.4
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10.3
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10.6
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621.3
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Unscheduled paydowns
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(358.3
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-
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-
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(358.3
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Principal reduction on investments
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(135.8
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-
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-
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(135.8
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Net changes attributed to conversions, liquidations, and fees
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9.8
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(2.7
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(5.3
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1.8
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Net activity during 2014
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116.1
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7.6
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5.3
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129.0
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Balances at Cost at 12/31/2014
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$
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952.0
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$
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44.4
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$
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38.9
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$
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1,035.3
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Balances at Value at 12/31/2013
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$
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822.0
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$
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52.7
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$
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35.6
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$
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910.3
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Net activity during 2014
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116.1
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7.6
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5.3
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129.0
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Net change in unrealized appreciation / (depreciation)
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(14.2
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11.4
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(15.8
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(18.6
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Balances at Value at 12/31/2014
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$
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923.9
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$
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71.7
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$
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25.1
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$
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1,020.7
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**New fundings includes $54.7 million of restructured / refinanced
fundings
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As of December 31, 2014, 100% of the Company’s debt investments were in
a first lien senior secured position, and approximately 98.2% of the
debt investment portfolio was priced at floating interest rates with
Prime or LIBOR-based interest rate floors, which we believe will
effectively position us to benefit from eventual increases in market
rate.
Unfunded Commitments
As of December 31, 2014, Hercules had record unfunded debt commitments
of ~$339.0 million, representing potential future portfolio growth.
Approximately $191.3 million of these unfunded commitments are
contingent upon the portfolio company achieving certain performance
milestones prior to Hercules’ debt commitments becoming available.
Hercules intends to continue to institute funding or performance-based
milestone requirements to mitigate risk in connection with its unfunded
debt commitments. Since these commitments may expire without being drawn
upon, unfunded commitments do not necessarily represent future cash
requirements or future earning assets for Hercules.
Signed Term Sheets
Hercules finished the fourth quarter of 2014 with ~$108.2 million in
signed non-binding term sheets with eight new and existing companies.
Signed non-binding term sheets are subject to satisfactory completion of
Hercules’ due diligence and final investment committee approval process
as well as negotiations of definitive documentation with the prospective
portfolio companies. These non-binding term sheets generally convert to
contractual commitments in approximately 90 days from signing. It is
important to note that not all signed non-binding term sheets are
expected to close and do not necessarily represent future cash
requirements or investments.
Core Portfolio Yield (“Core Yield”) and Effective Portfolio Yield
Hercules’ “Core Yield” excludes any benefits from the accretion of fees
and income related to early loan repayments attributed to the
acceleration of unamortized fees and income as well as prepayment fees.
During the fourth quarter of 2014, the Company’s loan portfolio
investments generated Core Yields of ~13.0%. Our effective portfolio
yields, including the effects of fee and income accelerations attributed
to early payoffs, restructuring, loan modifications and other one-time
event fees, generated an effective yield in the fourth quarter of 2014
of ~16.0%, or 70 bps lower than the third quarter of 2014 of ~16.7%. The
effective yield is derived by dividing total investment income by the
weighted average earning investment portfolio assets outstanding during
the quarter, which exclude non-interest earning assets such as warrants
and equity investments.
Existing Equity and Warrant Portfolio
Hercules held equity positions in 42 portfolio companies with a fair
value of ~$71.7 million and a cost basis of ~$44.4 million as of
December 31, 2014.
Hercules held warrant positions in 124 portfolio companies with a fair
value of ~$25.1 million and a cost basis of ~$38.9 million as of
December 31, 2014.
IPO and M&A Activities
As of December 31, 2014, Hercules held warrant and equity positions in
seven (7) portfolio companies that had filed Form S-1 Registration
Statements in anticipation of a potential IPO:
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Box, Inc. (completed IPO in January 2015)
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Zosano Pharma, Inc. (completed IPO in January 2015)
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Inotek Pharmaceuticals, Inc. (completed IPO in February 2015)
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Good Technology
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Three (3) companies filed a Form S-1 Registration Statement
confidentially under the JOBS Act.
During the fourth quarter of 2014, Hercules’ portfolio company,
Neothetics, Inc. (NASDAQ: NEOT), completed its initial public offering.
In February 2015, Hercules’ portfolio company, ViewRay Inc., filed an
S-1 Registration with the SEC in contemplation of a potential initial
public offering. ViewRay had previously filed confidentially under the
JOBS Act.
There can be no assurances that these companies will complete their IPOs
in a timely manner or at all.
Income Statement
Year-Over-Year
Total investment income for the fourth quarter of 2014 was ~$36.9
million, an increase of 11.1%, as compared to ~$33.2 million in the
fourth quarter of 2013. The increase is based on higher effective yields
due to fees from one-time events and early repayments. Total investment
income was basically flat compared to the third quarter of 2014 of
~$37.0 million.
Interest expense and loan fees were approximately $9.3 million during
the fourth quarter of 2014 as compared to approximately $9.0 million in
the fourth quarter of 2013. The net increase is primarily due to the
issuance of $103.0 million of the senior unsecured 2024 Notes and the
$129.3 million of 2021 Asset-Backed Notes “securitization.”
The Company had a weighted average cost of debt comprised of interest,
fees and loss on debt extinguishment of approximately 6.7% in the fourth
quarter of 2014 versus 6.4% during the fourth quarter of 2013. This
increase is primarily attributed to the approximately $600,000 loss on
debt extinguishment due to the retirement of approximately $23.2 million
of Convertible Senior Notes in the fourth quarter of 2014.
Total operating expenses, excluding stock-based compensation, for the
fourth quarter of 2014 were ~$17.7 million, an increase of ~39.4%, as
compared to ~$12.7 million for the fourth quarter of 2013. This increase
is primarily due to General and Administrative expenses, and an increase
in new hires and variable incentive compensation expenses.
Quarter-Over-Quarter
Total operating expenses, excluding stock-based compensation, for the
fourth quarter of 2014, were ~$17.7 million, an increase of ~24.6%, as
compared to ~$14.2 million in the third quarter of 2014. The increase
was primarily related to General and Administrative expenses due to
corporate initiatives, and an increase in new hires and variable
incentive compensation. Interest expense for the fourth quarter of 2014
was ~$9.3 million as compared to ~$7.9 million in the third quarter of
2014. The net increase is primarily due to the issuance of $103.0
million of the senior unsecured 2024 Notes and the $129.3 million of
2021 Asset-Backed Notes “securitization.” The table below highlights the
differences:
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Q4 2014 to Q3 2014 Operating Expense Comparison
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(dollars in thousands, except per share data)
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Q4 2014
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Q3 2014
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Variance
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Per Share Impact
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Interest Expense and Loan Fees
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$
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9,252
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$
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7,859
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$
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1,393
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$
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(0.02
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)
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General and Administrative
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$
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3,226
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$
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2,397
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$
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829
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$
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(0.01
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)
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Compensation and Benefits
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$
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5,229
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$
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3,922
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$
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1,307
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$
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(0.02
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)
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|
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Total Opex Per Share Impact
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$
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17,707
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$
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14,178
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$
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3,529
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$
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(0.05
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)
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Realized Gains/ (Losses)
During the year ended December 31, 2014, we recognized net realized
gains of ~$20.1 million, or $0.33 per share on the portfolio. These net
realized gains included gross realized gains of ~$24.0 million primarily
from the sale of investments in seven portfolio companies. These gains
were partially offset by gross realized losses of ~$3.9 million
primarily from the liquidation of our investments in fifteen portfolio
companies.
Hercules recognized net realized gains of ~$7.1 million, or $0.11 per
share, during the fourth quarter of 2014. This net gain was comprised of
~$10.3 million of gross realized gains primarily from the sale of
investments in four portfolio companies. These gains were offset by
gross realized losses of ~$3.2 million primarily from the liquidation of
warrant and equity investments in six portfolio companies.
Unrealized Appreciation/ (Depreciation)
During the fourth quarter of 2014, the Company recorded ~$1.2 million of
net unrealized depreciation from its loans, warrant and equity
investments. Of the ~$1.2 million of unrealized depreciation, ~$6.9
million of depreciation was primarily attributable to net collateral
based impairments on debt, equity and warrant investments in nine
portfolio companies, ~$12.3 million of appreciation was due to market or
yield adjustments in fair value determinations, and ~$6.6 million of
depreciation was related to reversals of prior appreciation due to loan
payoffs and sales of warrant and equity investments.
A break-down of the net unrealized appreciation/ (depreciation) in the
investment portfolio is highlighted below:
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Three Months Ended December 31, 2014
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(in millions)
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Loans
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Equity
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Warrants
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Total
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|
|
|
|
|
|
|
|
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Collateral based impairments
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$
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(10.6
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)
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$
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-
|
|
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$
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(0.4
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)
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$
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(11.0
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)
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Reversals of Prior Period Collateral based impairments
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|
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4.1
|
|
|
|
-
|
|
|
|
-
|
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|
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4.1
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Net Collateral based impairments
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|
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(6.5
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)
|
|
|
-
|
|
|
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(0.4
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)
|
|
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(6.9
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)
|
|
|
|
|
|
|
|
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Reversals due to Debt Payoffs & Warrant/Equity sales
|
|
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(0.3
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)
|
|
|
(6.3
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)
|
|
|
-
|
|
|
|
(6.6
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)
|
|
|
|
|
|
|
|
|
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Fair Value Market/Yield Adjustments
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|
|
|
|
|
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Level 1 & 2 Assets
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|
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-
|
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3.9
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(0.5
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)
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3.4
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Level 3 Assets
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|
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0.4
|
|
|
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5.0
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|
|
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3.5
|
|
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8.9
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Total Fair Value Market/Yield Adjustments
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|
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0.4
|
|
|
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8.9
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|
|
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3.0
|
|
|
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12.3
|
|
|
|
|
|
|
|
|
|
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Total Unrealized Appreciation/(Depreciation) *
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|
$
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(6.4
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)
|
|
$
|
2.6
|
|
|
$
|
2.6
|
|
|
$
|
(1.2
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)
|
* Excludes unrealized depreciation from escrow receivable and taxes
payable
|
|
Continued Credit Discipline and Performance
Cumulative net realized losses on investments, since our first
origination commencing in October 2004, through December 31, 2014,
totaled ~$12.0 million, on a GAAP basis. When compared to total
commitments of ~$4.9 billion over the same period, the net realized loss
since inception represents ~24 basis points “bps” or 0.24% of total
commitments, or an annualized loss rate of ~2 bps.
NII – Net Investment Income
NII for the fourth quarter of 2014 was ~$15.9 million, including
~$600,000 of convertible debt extinguishment expense, compared to
~$18.9 million in the fourth quarter of 2013, representing a decrease of
~15.9%. NII per share for the fourth quarter of 2014 was $0.25 based on
~63.1 million basic weighted average shares outstanding, compared to
$0.31 based on ~60.7 million basic weighted average shares outstanding
in the fourth quarter 2013.
NII for the fourth quarter of 2014, as compared to the third quarter of
2014, was primarily impacted by the increases in interest expenses and
loan fees attributed to the issuance of $103.0 million of the senior
unsecured 2024 Notes (as defined herein) outstanding for the entire
fourth quarter compared to third quarter, issuance of $129.3 million of
asset-backed notes (as defined herein) “securitization” issued in the
fourth quarter of 2014, higher General and Administrative costs and
higher employee related costs.
The table below highlights the differences:
|
|
Q4 2014 to Q3 2014 Operating Expense Comparison
|
|
|
(dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Q4 2014
|
|
Q3 2014
|
|
Variance
|
|
Per Share Impact
|
|
|
|
|
|
|
|
|
|
Interest Expense and Loan Fees
|
|
$
|
9,252
|
|
$
|
7,859
|
|
$
|
1,393
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
General and Administrative
|
|
$
|
3,226
|
|
$
|
2,397
|
|
$
|
829
|
|
$
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
Compensation and Benefits
|
|
$
|
5,229
|
|
$
|
3,922
|
|
$
|
1,307
|
|
$
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
Total Opex Per Share Impact
|
|
$
|
17,707
|
|
$
|
14,178
|
|
$
|
3,529
|
|
$
|
(0.05
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted NII – Adjusted Net Investment Income (Non-GAAP)
Adjusted NII was $0.26 per share on ~63.1 million basic weighted average
shares outstanding for the fourth quarter of 2014. Adjusted NII measures
operating performance excluding ~$600,000 of convertible debt
extinguishment expense, an expense incurred in relation to the exercise
and retirement of the Convertible Senior Notes in the fourth quarter of
2014. Please refer to the “Reconciliation of Net Investment Income to
Adjusted NII” table for more details.
DNOI - Distributable Net Operating Income
DNOI for the fourth quarter was ~$18.6 million or $0.29 per share, as
compared to ~$20.5 million or $0.34 per share in the fourth quarter of
2013. DNOI measures Hercules’ operating performance, exclusive of
employee stock compensation, which represents expense to the Company but
does not require settlement in cash. DNOI includes paid-in-kind, or
“PIK”, and back-end fees that are generally not payable in cash on a
regular basis but rather at investment maturity. Hercules believes
disclosing DNOI and the related per share measures are useful and
appropriate supplements and not alternatives to GAAP measures for net
operating income, net income, earnings per share and cash flows from
operating activities.
Dividends
The Board of Directors has declared a fourth quarter cash dividend
of $0.31 per share. This dividend would represent the Company’s
thirty-eighth consecutive dividend declaration since its initial public
offering, bringing the total cumulative dividend declared to date to
$10.30 per share. The following shows the key dates of our fourth
quarter 2014 dividend payment:
|
|
|
|
|
Record Date
|
|
|
|
|
|
March 12, 2015
|
|
|
|
|
|
|
Payment Date
|
|
|
|
|
|
March 19, 2015
|
|
Hercules' Board of Directors maintains a variable dividend policy with
the objective of distributing four quarterly distributions in an amount
that approximates 90% to 100% of our taxable quarterly income or
potential annual income for a particular year.
In addition, at the end of the year, our Board of Directors may choose
to pay an additional special dividend, or fifth dividend, so that we may
distribute approximately all of our annual taxable income in the year it
was earned, or electing to maintain the option to spill over our excess
taxable income into the coming year for future dividend payments.
The determination of the tax attributes of the Company's distributions
is made annually as of the end of the Company's fiscal year based upon
its taxable income for the full year and distributions paid for the full
year. Of the dividends declared during the year ended December 31, 2014,
100% were distributions of ordinary income and spillover earnings.
However, there can be no certainty to shareholders that this
determination is representative of what the tax attributes of its 2015
distributions to shareholders will actually be.
During the year ended December 31, 2014, the Company had an excess
taxable income spillover of $16.7 million, ~$0.27 per share, which will
be carried forward toward distributions to be paid in 2015.
Liquidity and Capital Resources
The Company ended the fourth quarter with ~$377.1 million in available
liquidity, including ~$227.1 million in cash and $150.0 million in
available credit facilities. As of December 31, 2014, 100% of the
Company’s debt outstanding was in fixed rate debt instruments, well
positioning Hercules for any increase in short term rates, should they
occur.
Bank Facilities
Hercules has a committed credit facility with Wells Fargo for $75.0
million in initial credit capacity under a $300.0 million accordion
credit facility. We expect to continue discussions with various other
potential lenders to join the Wells facility; however, there can be no
assurances that additional lenders will join the facility. Pricing
at December 31, 2014 under the Wells Fargo credit facility was
LIBOR+3.50% with a floor of 4.0%. As of December 31, 2014, Hercules did
not have any outstanding borrowings under the Wells Fargo credit
facility.
Hercules has a committed credit facility with Union Bank for $75.0
million in initial credit capacity under a $300.0 million accordion
credit facility. Pricing at December 31, 2014 under the Union Bank
credit facility is LIBOR+2.25% with no floor. As of December 31, 2014,
Hercules did not have any outstanding borrowings under the Union Bank
credit facility.
Convertible Senior Notes
As of December 31, 2014, Hercules had ~$17.3 million in 6.00%
convertible senior notes which mature in April 2016 (the “Convertible
Senior Notes”).
The Convertible Senior Notes are comprised of ~$17.6 million in
aggregate principal amount outstanding less ~$300,000 in remaining
unaccreted discount initially recorded upon issuance of the Convertible
Senior Notes. These Convertible Senior Notes became convertible on July
1, 2014 and continue to be convertible through March 31, 2015. During
the fourth quarter of 2014, holders of ~$23.2 million of the Convertible
Senior Notes elected to exercise their conversion rights. Upon
conversion of the Convertible Senior Notes, the Company has the choice
to pay or deliver, as the case may be, at our election, cash, shares of
our common stock or a combination of cash and shares of the Company’s
common stock. The current conversion price of the Convertible Senior
Notes is ~$11.36 per share of common stock, in each case subject to
adjustment in certain circumstances.
Senior Unsecured Notes
As of December 31, 2014, Hercules had ~$103.0 million in aggregate
principal amount of its 6.25% Senior Unsecured Notes due 2024 (the “2024
Notes”). The 2024 Notes are listed on the New York Stock Exchange under
the trading symbol “HTGX.”
As of December 31, 2014, Hercules had ~$170.4 million in 7.00% Senior
Unsecured Notes (the “2019 Notes”). These notes are comprised of ~$84.5
million of notes maturing in April 2019 (the ”April 2019 Notes”) and
~$85.9 million of notes maturing September 2019 (the “September 2019
Notes”). The April 2019 Notes and September 2019 Notes are listed on the
New York Stock Exchange under the trading symbols “HTGZ” and “HTGY,”
respectively.
Asset Backed Notes
As of December 31, 2014, Hercules had ~$16.1 million outstanding of the
initial $129.3 million in aggregate principal amount of fixed-rate
asset-backed notes (the “2017 Asset-Backed Notes”), which were rated
A1(sf) by Moody’s Investors Service, Inc. The 2017 Asset-Backed Notes
have a fixed interest rate of 3.32% per annum and a stated maturity of
December 16, 2017.
As of December 31, 2014, Hercules had ~$129.3 million outstanding in
aggregate principal of fixed-rate asset-backed notes (the “2021
Asset-Backed Notes”), which were rated A(sf) by Kroll Bond Rating
Agency, Inc. The 2021 Asset-Backed Notes have a fixed interest rate of
3.524% per annum and a stated maturity of April 16, 2021.
SBIC Debentures
At December 31, 2014, Hercules had ~$190.2 million in outstanding
debentures under the SBIC program.
Leverage
Hercules’ debt to equity ratio at December 31, 2014 was ~95.1%. However,
if the outstanding cash at December 31, 2014 of ~$227.1 million was
deducted from total debt of ~$626.3 million and divided by total equity
of ~$658.9 million, then the net leverage ratio would be ~60.6%.
As of December 31, 2014, the Company’s asset coverage ratio under our
regulatory requirements as a business development company was ~250.8%,
excluding the SBIC debentures as a result of our exemptive order from
the SEC. Given the SEC exemptive order relief, the Company has the
potential capacity on its balance sheet to add leverage of ~$222.8
million, bringing the maximum potential leverage to ~$849.1 million, or
~128.9%, as of December 31, 2014, if it had access to such additional
leverage.
Net Asset Value
As of December 31, 2014, the Company’s net assets were ~$658.9 million,
an increase of ~1.4% as compared to ~$650.0 million as of December 31,
2013. Net assets were ~$656.2 million as of September 30, 2014.
As of December 31, 2014, net asset value per share was $10.18 on ~64.7
million outstanding shares, representing a decrease of ~3.1% compared to
$10.51 on ~61.8 million outstanding shares as of December 31, 2013. Net
asset value per share was $10.22 on ~64.2 million outstanding shares as
of September 30, 2014.
Portfolio Asset Quality
As of December 31, 2014, grading of the loan portfolio at fair value,
excluding warrants and equity investments, was as follows:
Grade 1
|
|
|
|
|
$195.8 million or 21.2% of the total portfolio
|
Grade 2
|
|
|
|
|
$479.0 million or 51.8% of the total portfolio
|
Grade 3
|
|
|
|
|
$183.5 million or 19.9% of the total portfolio
|
Grade 4
|
|
|
|
|
$39.9 million or 4.3% of the total portfolio
|
Grade 5
|
|
|
|
|
$25.7 million or 2.8% of the total portfolio
|
At December 31, 2014, the weighted average loan grade of the portfolio
at cost was 2.24 on a scale of 1 to 5, with 1 being the highest quality,
compared with 2.20 as of December 31, 2013 and 2.07 as of September 30,
2014. Hercules’ policy is to generally adjust the grading down on its
portfolio companies as they approach the need for additional equity
capital.
Subsequent Events
1. As of February 26, 2015, Hercules has:
a. Closed debt and equity commitments of ~$150.8 million to new and
existing portfolio companies.
b. Pending commitments (signed non-binding term sheets) of ~$36.0
million.
The table below summarizes our year-to-date closed and pending
commitments as follows:
Closed Commitments and Pending Commitments (in millions)
|
Q1-15 Closed Commitments (as of February 26, 2015)(a)
|
|
$150.8
|
Pending Commitments (as of February 26, 2015)(b)
|
|
$36.0
|
Year-to-date 2015 Closed and Pending Commitments
|
|
$186.8
|
Notes:
a. Closed Commitments may include renewals of existing credit
facilities. Not all Closed Commitments result in future cash
requirements. Commitments generally fund over the two succeeding
quarters from close.
b. Not all pending commitments (signed non-binding term sheets) are
expected to close and do not necessarily represent any future cash
requirements.
2. In January 2015, Hercules’ portfolio company, Box, Inc. (NYSE: BOX),
completed its initial public offering. The shares held by Hercules in
Box are subject to certain restrictions that govern the timing of our
divestment and may thus impact our ultimate gain or (loss). In the case
of Box, we are subject to a customary IPO lockup period and are
restricted from selling shares of common stock for approximately six
months from the date of the initial public offering. The potential gain
is subject to the price of the shares when Hercules exits the investment.
3. In January 2015, Hercules’ portfolio company, Zosano Pharma
Corporation (NASDAQ: ZSAN), completed its initial public offering.
4. In February 2015, Hercules’ portfolio company, Inotek Pharmaceuticals
Corporation (NASDAQ: ITEK), completed its initial public offering.
5. In February 2015, Zillow, Inc. (NASDAQ: Z) completed its acquisition
of Hercules portfolio company Trulia, Inc. for $2.5 billion in a
stock-for-stock transaction and formed Zillow Group, Inc. Hercules no
longer holds investments in the company.
6. In February 2015, Hercules’ portfolio company, ViewRay Inc., filed an
S-1 Registration with the SEC in contemplation of a potential initial
public offering of $69.0 million. ViewRay had previously filed
confidentially under the JOBS Act.
7. Two companies have filed a Form S-1 Registration Statement
confidentially under the JOBS Act.
8. In February, Hercules’ Board of Directors approved redemption of
$20.0 million (face value) of the $84.5 million in issued and
outstanding aggregate principal amount of the Company’s April 2019 Notes
(CUSIP No. 417096888), and the notice for this redemption has been
provided. Hercules intends to make additional redemptions on the April
2019 Notes throughout the 2015 calendar year, depending on its
anticipated cash needs. Hercules will provide notice for and complete
all redemptions in compliance with the terms of the base indenture, as
supplemented by the first supplemental indenture.
9. In February 2015, Hercules’ Board of Directors approved a $50.0
million open market share repurchase program. Hercules may repurchase
shares of its common stock in the open market, including block
purchases, at prices that may be above or below the net asset value as
reported in our then most recently published financial statements.
Hercules anticipates that the manner, timing, and amount of any share
purchases will be determined by Hercules management based upon the
evaluation of market conditions, stock price, and additional factors in
accordance with regulatory requirements. Pursuant to the Investment
Company Act of 1940, as amended, Hercules is required to notify
shareholders program when such a program is initiated or implemented.
The repurchase program does not require Hercules to acquire any specific
number of shares and may be extended, modified, or discontinued at any
time.
10. In February 2015, changes in the payment schedule of obligors in the
2017 Asset-Backed Notes collateral pool triggered a rapid amortization
event in accordance with the sale and servicing agreement for the 2017
Asset-Backed Notes. Due to this event, the 2017 Asset-Backed Notes are
expected to fully amortize within the first half of 2015.
Conference Call
Hercules has scheduled its fourth quarter 2014 financial results
conference call for March 2, 2015 at 2:00 p.m. PST (5:00 p.m. EST). To
listen to the call, please dial (877) 304-8957 or (408) 427-3709
internationally approximately 10 minutes prior to the start of the call.
A taped replay will be made available approximately three hours after
the conclusion of the call and will remain available for seven days. To
access the replay, please dial (855) 859-2056 or (404) 537-3406 and
enter the passcode 83315302.
About Hercules Technology Growth Capital, Inc.:
Hercules Technology Growth Capital, Inc. (NYSE: HTGC) (“Hercules”) is
the leading specialty finance company focused on providing senior
secured loans to venture capital-backed companies in technology-related
industries, including technology, biotechnology, life science, and
energy & renewable technology, at all stages of development. Since
inception (December 2003), Hercules has committed more than $4.9 billion
to over 310 companies and is the lender of choice for entrepreneurs and
venture capital firms seeking growth capital financing. Companies
interested in learning more about financing opportunities should contact info@htgc.com,
or call 650.289.3060.
Hercules’ common stock trades on the New York Stock Exchange (NYSE)
under the ticker symbol "HTGC."
In addition, Hercules has three outstanding bond issuances of 7.00%
Notes due April 2019, 7.00% Notes due September 2019, and 6.25% Notes
due July 2024, which trade on the NYSE under the symbols “HTGZ,” “HTGY,”
and “HTGX,” respectively.
Forward-Looking Statements:
The information disclosed in this release is made as of the date hereof
and reflects Hercules most current assessment of its historical
financial performance. Actual financial results filed with the
Securities and Exchange Commission may differ from those contained
herein due to timing delays between the date of this release and
confirmation of final audit results. These forward-looking statements
are not guarantees of future performance and are subject to
uncertainties and other factors that could cause actual results to
differ materially from those expressed in the forward-looking statements
including, without limitation, the risks, uncertainties, including the
uncertainties surrounding the current market volatility, and other
factors we identify from time to time in our filings with the Securities
and Exchange Commission. Although we believe that the assumptions on
which these forward-looking statements are based are reasonable, any of
those assumptions could prove to be inaccurate and, as a result, the
forward-looking statements based on those assumptions also could be
incorrect. You should not place undue reliance on these forward-looking
statements. The forward-looking statements contained in this release are
made as of the date hereof, and Hercules assumes no obligation to update
the forward-looking statements for subsequent events.
|
|
|
|
|
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
|
CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
|
(dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
Assets
|
|
|
|
|
Investments:
|
|
|
|
|
Non-control/Non-affiliate investments (cost of $1,019,799 and
$891,059, respectively)
|
|
$
|
1,012,738
|
|
|
$
|
899,314
|
|
Affiliate investments (cost of $15,538 and $15,238, respectively)
|
|
|
7,999
|
|
|
|
10,981
|
|
Total investments, at value (cost of $1,035,337 and $906,297,
respectively)
|
|
|
1,020,737
|
|
|
|
910,295
|
|
Cash and cash equivalents
|
|
|
227,116
|
|
|
|
268,368
|
|
Restricted cash
|
|
|
12,660
|
|
|
|
6,271
|
|
Interest receivable
|
|
|
9,453
|
|
|
|
8,962
|
|
Other assets
|
|
|
29,257
|
|
|
|
27,819
|
|
Total assets
|
|
$
|
1,299,223
|
|
|
$
|
1,221,715
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
$
|
14,101
|
|
|
$
|
14,268
|
|
Long-term Liabilities (Convertible Senior Notes)
|
|
|
17,345
|
|
|
|
72,519
|
|
2017 Asset-Backed Notes
|
|
|
16,049
|
|
|
|
89,557
|
|
2021 Asset-Backed Notes
|
|
|
129,300
|
|
|
|
-
|
|
2019 Notes
|
|
|
170,364
|
|
|
|
170,364
|
|
2024 Notes
|
|
|
103,000
|
|
|
|
-
|
|
Long-term SBA Debentures
|
|
|
190,200
|
|
|
|
225,000
|
|
Total liabilities
|
|
$
|
640,359
|
|
|
$
|
571,708
|
|
|
|
|
|
|
Net assets consist of:
|
|
|
|
|
Common stock, par value
|
|
|
65
|
|
|
|
62
|
|
Capital in excess of par value
|
|
|
657,233
|
|
|
|
656,594
|
|
Unrealized depreciation on investments
|
|
|
(17,076
|
)
|
|
|
3,598
|
|
Accumulated realized losses on investments
|
|
|
14,079
|
|
|
|
(15,240
|
)
|
Distributions in excess of investment income
|
|
|
4,563
|
|
|
|
4,993
|
|
Total net assets
|
|
|
658,864
|
|
|
|
650,007
|
|
Total liabilities and net assets
|
|
$
|
1,299,223
|
|
|
$
|
1,221,715
|
|
|
|
|
|
|
Shares of common stock outstanding ($0.001 par value, 100,000,000
authorized)
|
|
|
64,715
|
|
|
|
61,837
|
|
Net asset value per share
|
|
$
|
10.18
|
|
|
$
|
10.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
|
CONSOLIDATED STATEMENT OF OPERATIONS
|
(dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
Twelve Months Ended December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Investment income:
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
|
|
|
|
|
Non-Control/Non-Affiliate investments
|
|
$
|
31,800
|
|
|
$
|
27,580
|
|
$
|
124,776
|
|
|
$
|
121,302
|
|
Affiliate investments
|
|
|
95
|
|
|
|
685
|
|
|
1,842
|
|
|
|
2,369
|
|
Total interest income
|
|
|
31,895
|
|
|
|
28,265
|
|
|
126,618
|
|
|
|
123,671
|
|
Fees
|
|
|
|
|
|
|
|
|
Non-Control/Non-Affiliate investments
|
|
|
4,976
|
|
|
|
4,929
|
|
|
17,013
|
|
|
|
16,016
|
|
Affiliate investments
|
|
|
4
|
|
|
|
16
|
|
|
34
|
|
|
|
26
|
|
Total fees
|
|
|
4,980
|
|
|
|
4,945
|
|
|
17,047
|
|
|
|
16,042
|
|
Total investment income
|
|
|
36,875
|
|
|
|
33,210
|
|
|
143,665
|
|
|
|
139,713
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Interest
|
|
|
7,864
|
|
|
|
7,545
|
|
|
28,041
|
|
|
|
30,334
|
|
Loan fees
|
|
|
1,388
|
|
|
|
1,466
|
|
|
5,919
|
|
|
|
4,807
|
|
General and administrative
|
|
|
3,226
|
|
|
|
2,523
|
|
|
10,209
|
|
|
|
9,354
|
|
Employee Compensation:
|
|
|
|
|
|
|
|
|
Compensation and benefits
|
|
|
5,229
|
|
|
|
1,186
|
|
|
16,604
|
|
|
|
16,179
|
|
Stock-based compensation
|
|
|
2,711
|
|
|
|
1,626
|
|
|
9,561
|
|
|
|
5,974
|
|
Total employee compensation
|
|
|
7,940
|
|
|
|
2,812
|
|
|
26,165
|
|
|
|
22,153
|
|
Total operating expenses
|
|
|
20,418
|
|
|
|
14,346
|
|
|
70,334
|
|
|
|
66,648
|
|
Loss on debt extinguishment (Long-term Liabilities - Convertible
Senior Notes)
|
|
|
(558
|
)
|
|
|
-
|
|
|
(1,581
|
)
|
|
|
-
|
|
Net investment income
|
|
|
15,899
|
|
|
|
18,864
|
|
|
71,750
|
|
|
|
73,065
|
|
|
|
|
|
|
|
|
|
|
Net realized gain on investments
|
|
|
|
|
|
|
|
|
Non-Control/Non-Affiliate investments
|
|
|
7,106
|
|
|
|
3,527
|
|
|
20,112
|
|
|
|
14,836
|
|
Total net realized gain on investments
|
|
|
7,106
|
|
|
|
3,527
|
|
|
20,112
|
|
|
|
14,836
|
|
|
|
|
|
|
|
|
|
|
Net increase in unrealized appreciation (depreciation) on investments
|
|
|
|
|
|
|
|
|
Non-Control/Non-Affiliate investments
|
|
|
(1,945
|
)
|
|
|
1,863
|
|
|
(17,392
|
)
|
|
|
12,370
|
|
Affiliate investments
|
|
|
(425
|
)
|
|
|
643
|
|
|
(3,282
|
)
|
|
|
(825
|
)
|
Total net unrealized appreciation (depreciation) on investments
|
|
|
(2,370
|
)
|
|
|
2,506
|
|
|
(20,674
|
)
|
|
|
11,545
|
|
Total net realized and unrealized gain (loss)
|
|
|
4,736
|
|
|
|
6,033
|
|
|
(562
|
)
|
|
|
26,381
|
|
Net increase in net assets resulting from operations
|
|
$
|
20,635
|
|
|
$
|
24,897
|
|
$
|
71,188
|
|
|
$
|
99,446
|
|
Net investment income before investment gains and losses
|
|
|
|
|
|
|
|
|
per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.25
|
|
|
$
|
0.31
|
|
$
|
1.13
|
|
|
$
|
1.22
|
|
Change in net assets per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.32
|
|
|
$
|
0.40
|
|
$
|
1.12
|
|
|
$
|
1.67
|
|
Diluted
|
|
$
|
0.32
|
|
|
$
|
0.39
|
|
$
|
1.10
|
|
|
$
|
1.63
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
63,105
|
|
|
|
60,712
|
|
|
61,862
|
|
|
|
58,838
|
|
Diluted
|
|
|
63,766
|
|
|
|
63,419
|
|
|
63,225
|
|
|
|
60,292
|
|
Dividends declared per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
$
|
1.24
|
|
|
$
|
1.11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
NON GAAP FINANCIAL MEASURES
(in thousands, except per share data)
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Reconciliation of Net Investment Income to Adjusted NII
|
|
|
|
|
|
|
|
|
Net Investment Income
|
|
|
15,899
|
|
|
18,864
|
|
|
71,750
|
|
|
73,065
|
Loss on debt extinguishment (Long-term Liabilities - Convertible
Senior Notes)
|
|
|
558
|
|
|
-
|
|
|
1,581
|
|
|
-
|
Adjusted net investment income (1)
|
|
$
|
16,457
|
|
$
|
18,864
|
|
$
|
73,331
|
|
$
|
73,065
|
|
|
|
|
|
|
|
|
|
Adjusted net investment income before investment gains and losses
per common share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
63,105
|
|
$
|
60,712
|
|
$
|
61,862
|
|
$
|
58,838
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.26
|
|
$
|
0.31
|
|
$
|
1.19
|
|
$
|
1.24
|
|
|
|
|
|
|
|
|
|
(1) Adjusted net investment income is calculated as net investment
income, excluding the Loss on debt extinguishment (Long-term
Liabilities - Convertible Senior Notes).
|
|
Adjusted Net Investment Income, or “Adjusted NII”, consists
of GAAP Net Investment Income, excluding the Loss on debt extinguishment
(Long-term Liabilities – Convertible Senior Notes), divided by the
weighted average basic shares outstanding for the period under
measurement.
Hercules believes that providing Adjusted NII affords investors a view
of results that may be more easily compared to other companies by
adjusting for non-recurring events, and enables investors to consider
the Company’s results on both a GAAP and adjusted basis. Adjusted NII
should not be considered as an alternative to, as an independent
indicator of the Company’s operating performance, or as a substitute for
Net Investment Income per basic share (each computed in accordance with
GAAP). Instead, Adjusted NII should be reviewed in connection with
Hercules’ consolidated financial statements, to help analyze how the
Company is performing. Investors should use Non-GAAP measures only in
conjunction with its reported GAAP results.
|
|
|
|
|
|
|
|
|
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
NON GAAP FINANCIAL MEASURES
(in thousands, except per share data)
|
|
|
Three Months Ended December 31,
|
|
Year Ended December 31,
|
Reconciliation of Net investment income to DNOI
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net investment income
|
|
$
|
15,899
|
|
$
|
18,864
|
|
$
|
71,750
|
|
$
|
73,065
|
Stock-based compensation
|
|
|
2,711
|
|
|
1,626
|
|
|
9,561
|
|
|
5,975
|
DNOI
|
|
$
|
18,610
|
|
$
|
20,490
|
|
$
|
81,311
|
|
$
|
79,040
|
|
|
|
|
|
|
|
|
|
DNOI per share-weighted average common shares
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.29
|
|
$
|
0.34
|
|
$
|
1.31
|
|
$
|
1.34
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
|
63,105
|
|
|
60,712
|
|
|
61,862
|
|
|
58,838
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable Net Operating Income, “DNOI” represents
net investment income as determined in accordance with U.S. generally
accepted accounting principles, or GAAP, adjusted for amortization of
employee restricted stock awards and stock options. Hercules views DNOI
and the related per share measures as useful and appropriate supplements
to net operating income, net income, earnings per share and cash flows
from operating activities. These measures serve as an additional measure
of Hercules’ operating performance exclusive of employee restricted
stock amortization, which represents expenses of the Company but does
not require settlement in cash. DNOI does include paid-in-kind, or PIK,
interest and back end fee income which are generally not payable in cash
on a regular basis, but rather at investment maturity or when declared.
DNOI should not be considered as an alternative to net operating income,
net income, earnings per share and cash flows from operating activities
(each computed in accordance with GAAP). Instead, DNOI should be
reviewed in connection with net operating income, net income (loss),
earnings (loss) per share and cash flows from operating activities in
Hercules’ consolidated financial statements, to help analyze how
Hercules’ business is performing.
|
|
|
HERCULES TECHNOLOGY GROWTH CAPITAL, INC.
NON GAAP FINANCIAL MEASURES
(in thousands, except per share data)
|
|
|
|
|
|
December 31, 2014
|
Total Debt
|
|
$
|
626,258
|
|
Cash and cash equivalents
|
|
|
(227,116
|
)
|
Numerator: net debt (total debt less cash and cash equivalents)
|
|
$
|
399,142
|
|
|
|
|
Denominator: Total net assets
|
|
$
|
658,864
|
|
Net Leverage Ratio
|
|
|
60.6
|
%
|
|
|
|
|
|
Net leverage ratio is calculated by deducting the outstanding cash at
December 31, 2014 of ~$227.1 million from total debt of ~$626.3 million
divided by our total equity of ~$658.9 million, resulting in a net
leverage ratio of 60.6%. These measures are not intended to replace
financial performance measures determined in accordance with GAAP.
Rather, they are presented as additional information because management
believes they are useful indicators of the current financial performance
of the Company’s core businesses.
CONTACT:
Hercules Technology Growth Capital, Inc.
Michael Hara,
650-289-3060 HT-HN
Investor Relations and Corporate Communications
mhara@htgc.com
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