HOUSTON, Aug. 8, 2016 /PRNewswire/ -- Main Street Capital
Corporation (NYSE: MAIN) ("Main Street") announced today its
financial results for the second quarter of 2016.
Second Quarter 2016 Highlights
- Net investment income of $27.6
million (or $0.54 per share),
representing a 2% increase from the second quarter of 2015
- Distributable net investment income of $29.9 million (or $0.58 per share), representing a 4% increase from
the second quarter of 2015 (1)
- Total investment income of $42.9
million, representing a 4% increase from the second quarter
of 2015
- Maintained industry leading ratio of total non-interest
operating expenses as a percentage of quarterly average total
assets ("Operating Expense to Assets Ratio") on an annualized basis
of 1.4%
- Paid semi-annual supplemental cash dividend of $0.275 per share in June
2016
- Declared regular monthly dividends totaling $0.54 per share for the third quarter of 2016, or
$0.18 per share for each of July,
August and September 2016,
representing a 3% increase from the regular monthly dividends paid
for the third quarter of 2015
- Net increase in net assets resulting from operations of
$30.9 million (or $0.60 per share)
- Net asset value of $21.11 per share at June 30, 2016, representing a decrease of
$0.13 per share, or 0.6% ,
compared to $21.24 per share at
December 31, 2015, or an increase of
$0.15 per share, or 0.7% ,
after excluding the effect of the supplemental dividend paid in
June 2016
- Completed $62.4 million in total
lower middle market ("LMM") portfolio investments, including
investments totaling $50.0 million in
three new LMM portfolio companies, which after aggregate repayments
of debt principal and return of invested equity capital from
several LMM portfolio investments resulted in a net increase of
$30.0 million in total LMM portfolio
investments
- Net increase of $14.2
million in middle market portfolio investments
- Net increase of $28.0 million in
private loan portfolio investments
- Fully exited portfolio company debt and equity investments in
Safety Holdings, Inc., doing business as SambaSafety®, realizing a
gain of $28.7 million, a total
internal rate of return of 34.9% and 2.3 times money invested
In commenting on Main Street's results, Vincent D. Foster, Main Street's Chairman and
Chief Executive Officer, stated, "We are pleased with our operating
results for the second quarter of 2016, a quarter during which we
increased our total investment income and our distributable net
investment income, both on a sequential basis over the first
quarter of 2016 and over the same period in the prior year. As a
result of our positive performance, we again generated
distributable net investment income per share in excess of our
regular monthly dividends, exceeding the regular monthly dividends
paid during the quarter by over 7%. In addition, we also generated
net realized gains of over $15
million, primarily from the favorable sale of Samba,
highlighting the unique benefits of our differentiated investment
strategy.
"We are also very pleased to have recently received approval for
our third SBIC license, which we expect to make a significant
contribution to our long term growth and capital plans. The third
license will allow us to access up to an incremental $125 million in SBIC debenture financing,
additional capital which aligns very well with our primary
investment strategy focused on providing debt and equity financing
solutions to lower middle market companies. The additional SBIC
debentures will also enhance our capital structure due to their
long-term, flexible and attractive cost nature."
Second Quarter 2016 Operating Results
The following table provides a summary of our operating results
for the second quarter of 2016:
|
|
Three Months Ended
June 30,
|
|
2016
|
|
2015
|
|
Change ($)
|
|
Change (%)
|
|
(dollars in
thousands, except per share amounts)
|
Interest
income
|
$
33,419
|
|
$
32,777
|
|
$
642
|
|
2%
|
Dividend
income
|
7,735
|
|
5,278
|
|
2,457
|
|
47%
|
Fee income
|
1,711
|
|
3,011
|
|
(1,300)
|
|
(43%)
|
Income from
marketable securities and idle funds
|
37
|
|
242
|
|
(205)
|
|
(85%)
|
Total investment
income
|
$
42,902
|
|
$
41,308
|
|
$
1,594
|
|
4%
|
|
|
|
|
|
|
|
|
Distributable net
investment income (1)
|
$
29,899
|
|
$
28,880
|
|
$
1,019
|
|
4%
|
Distributable net
investment income per share (1)
|
$
0.58
|
|
$
0.58
|
|
$
0.00
|
|
0%
|
|
|
|
|
|
|
|
|
Net increase in net
assets resulting from operations
|
$
30,911
|
|
$
40,802
|
|
$
(9,891)
|
|
(24%)
|
Net increase in net
assets resulting from operations per share
|
$
0.60
|
|
$
0.82
|
|
$
(0.22)
|
|
(27%)
|
|
|
|
|
|
|
|
|
The $1.6 million increase in total
investment income in the second quarter of 2016 from the comparable
period of the prior year was principally attributable to (i) a
$0.6 million increase in
interest income primarily related to higher average levels of
portfolio debt investments and (ii) a $2.5 million increase in dividend income
from investment portfolio equity investments, partially offset by a
$1.3 million decrease in fee
income. The increase in total investment income includes the impact
of a decrease of $1.2 million
primarily related to lower accelerated prepayment and repricing
activity for certain investment portfolio debt investments when
compared to the same period in 2015.
Cash operating expenses (total operating expenses excluding
non-cash, share-based compensation expense) increased to
$13.0 million in the second quarter
of 2016 from $12.4 million for the
corresponding period of 2015. This comparable period increase in
cash operating expenses was principally attributable to (i) a
$0.6 million increase in
interest expense, primarily due to an increase in interest expense
on our long-term revolving credit facility ("Credit Facility")
generally due to the higher average balance outstanding in the
second quarter of 2016 when compared to the same period in the
prior year, (ii) a $0.2 million increase in general and
administrative expenses and compensation expense, with these
increases partially offset by a $0.2 million increase in the expenses
allocated to our external investment manager, a wholly owned
portfolio company and registered investment advisor that provides
investment management services to third parties (the "External
Investment Manager"), in each case when compared to the same period
in the prior year. Our Operating Expense to Assets Ratio was 1.4%
on an annualized basis for the second quarter of 2016, which is
consistent with the ratio for the second quarter of 2015 and the
year ended December 31, 2015.
The $1.0 million increase in
distributable net investment income, which is net investment income
before non-cash, share-based compensation expense, was primarily
due to the higher level of total investment income, partially
offset by higher operating expenses as discussed
above.(1) Distributable net investment income on
a per share basis for the second quarter of 2016 reflects (i) a
decrease of approximately $0.02 per
share from the comparable period in 2015 attributable to the net
decrease in the comparable levels of accelerated prepayment and
repricing activity for certain investment portfolio debt
investments and (ii) a greater number of average shares outstanding
compared to the corresponding period in 2015 primarily due to
shares issued through offerings under our at-the-market, or ATM,
program and shares issued pursuant to our restricted stock plan and
dividend reinvestment plan.
The $9.9 million change in
the net increase in net assets resulting from operations was
primarily the result of (i) a $26.1 million decrease in net change in
unrealized appreciation (depreciation) to net unrealized
depreciation of $10.4 million
for the second quarter of 2016 and (ii) a $5.2 million decrease in the income tax benefit
(provision) to a $1.8 million income
tax provision for the second quarter of 2016, partially offset by
(i) a $0.4 million increase
in net investment income as discussed above and (ii) a
$21.0 million increase in the
net realized gain (loss) from investments from a net realized loss
of $5.6 million during the
second quarter of 2015 to a net realized gain of $15.5 million for the second quarter of
2016. The net realized gain of $15.5 million for the second quarter of 2016
was primarily the result of (i) the net realized gain on the
exit of a LMM investment totaling $28.7 million and (ii) the net realized
gain of $0.3 million due to
activity in our other portfolio, partially offset by (i) the
net realized loss of $4.7 million on the exit of two middle
market investments, (ii) the net realized loss of $6.5 million relating to the restructure of a
middle market investment and (iii) the net realized loss of
$2.2 million on the exit of two
private loan investments.
The following table provides a summary of the total unrealized
depreciation of $10.4 million
for the second quarter of 2016:
|
Three Months Ended
June 30, 2016
|
|
LMM (a)
|
|
Middle
Market
|
|
Private
Loan
|
|
Other (b)
|
|
Total
|
|
(dollars in
millions)
|
Accounting reversals
of net unrealized (appreciation) depreciation recognized in prior
periods due
|
|
|
|
|
|
|
|
|
|
to
net realized gains/losses recognized during
period
|
$
(28.4)
|
|
$
13.2
|
|
$
2.2
|
|
$
(0.2)
|
|
$
(13.2)
|
Net unrealized
appreciation (depreciation) relating to portfolio
investments
|
1.8
|
|
4.1
|
|
(2.6)
|
|
(0.7)
|
|
2.6
|
Total net change in
unrealized appreciation (depreciation) relating to portfolio
investments
|
$
(26.6)
|
|
$
17.3
|
|
$
(0.4)
|
|
$
(0.9)
|
|
$
(10.6)
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
appreciation relating to marketable securities
|
|
|
|
|
|
|
|
|
0.1
|
Unrealized
appreciation relating to SBIC debentures (c)
|
|
|
|
|
|
|
|
|
0.1
|
Total net change in
unrealized appreciation (depreciation)
|
|
|
|
|
|
|
|
|
$
(10.4)
|
|
|
|
|
|
|
|
|
|
|
(a) LMM
includes unrealized appreciation on 22 LMM portfolio investments
and unrealized depreciation on 14 LMM portfolio
investments.
|
(b) Other
includes $0.2 million of net unrealized appreciation relating to
the Other Portfolio offset by $0.9 million of unrealized
depreciation relating to the External Investment
Manager.
|
(c) Relates to
unrealized appreciation on the SBIC debentures held by our
wholly-owned subsidiary Main Street Capital II, LP ("MSC II") which
are accounted for on a fair value basis.
|
|
The income tax provision for the second quarter of 2016 of
$1.8 million principally
consisted of (i) a $1.0 million
accrual for excise tax on our estimated undistributed taxable
income, (ii) a deferred tax provision of $0.7 million, which is primarily the result
of the net activity relating to our portfolio investments held in
our taxable subsidiaries, including changes in net operating loss
carryforwards, changes in net unrealized appreciation/depreciation
and other temporary book tax differences and (iii) other current
tax expense of $0.1 million
related to accruals for U.S. federal and state income taxes.
Liquidity and Capital Resources
As of June 30, 2016, we had
$18.7 million in cash and cash
equivalents, $1.6 million in
marketable securities and idle funds investments and $205.0 million of unused capacity under our
Credit Facility, which we maintain to support our investment and
operating activities.
Several details regarding our capital structure as of
June 30, 2016 are as follows:
- Our Credit Facility included $555.0
million in total commitments from a diversified group of
fourteen participating lenders, plus an accordion feature which
allows us to increase the total commitments under the facility up
to $750.0 million.
- $350.0 million in outstanding
borrowings under our Credit Facility, bearing interest at an annual
interest rate of 2.3%.
- $225.0 million of outstanding
SBIC debentures through our two wholly owned SBIC subsidiaries.
These debentures, which are guaranteed by the U.S. Small Business
Administration, had a weighted average annual fixed interest rate
of approximately 4.2% and mature ten years from original issuance.
The first maturity related to our SBIC debentures does not occur
until 2017, and the weighted average remaining duration was
approximately 5.1 years.
- $175.0 million of notes
outstanding that bear interest at a rate of 4.50% per year (the
"4.50% Notes"). The 4.50% Notes mature on December 1, 2019 and may be redeemed in whole or
in part at any time at our option subject to certain make whole
provisions.
- $90.7 million of notes
outstanding that bear interest of 6.125% per year (the "6.125%
Notes"). The 6.125% Notes mature on April 1,
2023, and may be redeemed in whole or in part at our option
on or after April 1, 2018. The 6.125%
Notes are listed on the New York Stock Exchange and trade under the
symbol "MSCA."
- Our net asset value totaled $1,099.1
million, or $21.11 per
share.
Investment Portfolio Information as of June 30, 2016 (2)
The following table provides a summary of the investments in our
LMM portfolio, middle market portfolio and private loan portfolio
as of June 30, 2016:
|
As of June 30,
2016
|
|
LMM (a)
|
|
Middle
Market
|
|
Private
Loan
|
|
|
|
(dollars in
millions)
|
|
|
Number of portfolio
companies
|
74
|
|
81
|
|
44
|
Fair value
|
$
866.1
|
|
$
611.6
|
|
$
299.3
|
Cost
|
$
726.5
|
|
$
651.0
|
|
$
323.2
|
% of portfolio at
cost - debt
|
69.0%
|
|
97.7%
|
|
93.9%
|
% of portfolio at
cost - equity
|
31.0%
|
|
2.3%
|
|
6.1%
|
% of debt investments
at cost secured by first priority lien
|
91.8%
|
|
85.8%
|
|
86.3%
|
Weighted-average
annual effective yield (b)
|
12.4%
|
|
8.4%
|
|
9.7%
|
Average EBITDA
(c)
|
$
5.9
|
|
$
92.2
|
|
$
15.9
|
|
|
|
|
|
|
(a)
|
We had equity
ownership in 99% of our LMM portfolio companies, and the average
fully diluted equity ownership in those portfolio companies was
approximately 35%.
|
(b)
|
The weighted-average
annual effective yields were computed using the effective interest
rates for all debt investments at cost, including amortization of
deferred debt origination fees and accretion of original issue
discount but excluding fees payable upon repayment of the debt
instruments and any debt investments on non-accrual
status.
|
(c)
|
The average EBITDA is
calculated using a simple average for the LMM portfolio and a
weighted average for the middle market and private loan portfolios.
These calculations exclude certain portfolio companies, including
five LMM portfolio companies, four middle market portfolio
companies and five private loan portfolio companies, as EBITDA is
not a meaningful valuation metric for our investments in these
portfolio companies.
|
The fair value of our LMM portfolio company equity investments
was approximately 178% of the cost of such equity investments and
our LMM portfolio companies had a median net senior debt (senior
interest-bearing debt through our debt position less cash and cash
equivalents) to EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) ratio of 2.9 to 1.0 and a median
total EBITDA to senior interest expense ratio of 2.5 to 1.0.
Including all debt that is junior in priority to our debt position,
these median ratios were 3.0 to 1.0 and 2.5 to 1.0,
respectively.(2) (3) Based upon our internal
investment rating system, with a rating of "1" being the highest
and a rating of "5" being the lowest, and with all new investments
initially rated a "3", the weighted average investment rating for
our total LMM investment portfolio was 2.3 as of June 30, 2016 and 2.2 as of December 31, 2015.
As of June 30, 2016, we had other
portfolio investments in ten companies, collectively totaling
$84.2 million in fair value and
$92.3 million in cost basis, which
comprised 4.5% of our investment portfolio at fair value.
As of June 30, 2016, there was no
cost basis in our investment in the External Investment Manager and
this investment had a fair value of $26.9 million, which comprised 1.4% of our
investment portfolio at fair value.
As of June 30, 2016, we had eight
investments on non-accrual status, which comprised approximately
0.5% of the total investment portfolio at fair value and 3.7% of
its cost. Our total portfolio investments at fair value were
approximately 105% of the related cost basis as of June 30, 2016.
External Investment Manager
The External Investment Manager maintains an investment
sub-advisory relationship with HMS Income Fund, Inc., a
non-publicly traded business development company ("HMS Income"),
and earns management fees for the services provided to HMS Income.
During the second quarter of 2016, the External Investment Manager
generated $2.3 million of fee income
from this relationship, and HMS Income ended the second quarter of
2016 with approximately $970 million
of total assets. The relationship with HMS Income benefited our net
investment income by $2.0 million in
the second quarter of 2016 through a $1.4
million reduction of our operating expenses for expenses we
allocated to the External Investment Manager for services we
provided to it and $0.6 million of
dividend income we received from the External Investment
Manager.
Second Quarter 2016 Financial Results Conference Call /
Webcast
Main Street has scheduled a conference call for Tuesday, August 9, 2016 at 10:00 a.m. Eastern Time to discuss the second
quarter 2016 financial results.
You may access the conference call by dialing 412-902-0030 at
least 10 minutes prior to the start time. The conference call can
also be accessed via a simultaneous webcast by logging into the
investor relations section of the Main Street web site at
http://www.mainstcapital.com.
A telephonic replay of the conference call will be available
through Tuesday, August 16, 2016 and
may be accessed by dialing 201-612-7415 and using the passcode
13640308#. An audio archive of the conference call will also be
available on the investor relations section of the company's
website at http://www.mainstcapital.com shortly after the call and
will be accessible for approximately 90 days.
For a more detailed discussion of the financial and other
information included in this press release, please refer to the
Main Street Quarterly Report on Form 10-Q for the quarterly period
ended June 30, 2016 to be filed with
the Securities and Exchange Commission (www.sec.gov) and Main
Street's Second Quarter 2016 Investor Presentation to be posted on
the investor relations section of the Main Street website at
http://www.mainstcapital.com.
|
(1)
Distributable net investment income is
net investment income as determined in accordance with U.S.
Generally Accepted Accounting Principles, or U.S. GAAP, excluding
the impact of share-based compensation expense which is non-cash in
nature. Main Street believes presenting distributable net
investment income and the related per share amount is useful and
appropriate supplemental disclosure for analyzing its financial
performance since share-based compensation does not require
settlement in cash. However, distributable net investment income is
a non-U.S. GAAP measure and should not be considered as a
replacement for net investment income and other earnings measures
presented in accordance with U.S. GAAP. Instead, distributable net
investment income should be reviewed only in connection with such
U.S. GAAP measures in analyzing Main Street's financial
performance. A reconciliation of net investment income in
accordance with U.S. GAAP to distributable net investment income is
detailed in the financial tables included with this press
release.
|
|
(2)
Portfolio company financial information
has not been independently verified by Main Street.
|
|
(3)
These credit statistics exclude certain
portfolio companies for which EBITDA is not a meaningful metric for
the statistic.
|
|
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street
(www.mainstcapital.com) is a principal investment firm that
primarily provides long-term debt and equity capital to lower
middle market companies and debt capital to middle market
companies. Main Street's portfolio investments are typically made
to support management buyouts, recapitalizations, growth
financings, refinancings and acquisitions of companies that operate
in diverse industry sectors. Main Street seeks to partner with
entrepreneurs, business owners and management teams and generally
provides "one stop" financing alternatives within its lower middle
market portfolio. Main Street's lower middle market companies
generally have annual revenues between $10
million and $150 million. Main Street's middle market debt
investments are in middle market businesses that are generally
larger in size than its lower middle market portfolio
companies.
Main Street's common stock trades on the New York Stock Exchange
("NYSE") under the symbol "MAIN." In addition, Main Street has
outstanding 6.125% Notes due 2023, which trade on the NYSE under
the symbol "MSCA."
FORWARD-LOOKING STATEMENTS
Main Street cautions that
statements in this press release which are forward‑looking and
provide other than historical information involve risks and
uncertainties that may impact its future results of operations. The
forward‑looking statements in this press release are based on
current conditions and include statements regarding Main Street's
goals, beliefs, strategies and future operating results and cash
flows. Although its management believes that the expectations
reflected in those forward‑looking statements are reasonable, Main
Street can give no assurance that those expectations will prove to
have been correct. Those statements are made based on various
underlying assumptions and are subject to numerous uncertainties
and risks, including, without limitation: Main Street's continued
effectiveness in raising, investing and managing capital; adverse
changes in the economy generally or in the industries in which its
portfolio companies operate; changes in laws and regulations that
may adversely impact its operations or the operations of one or
more of its portfolio companies; the operating and financial
performance of its portfolio companies; retention of key investment
personnel; competitive factors; and such other factors described
under the captions "Cautionary Statement Concerning Forward Looking
Statements" and "Risk Factors" included in its filings with the
Securities and Exchange Commission (www.sec.gov). Main Street
undertakes no obligation to update the information contained herein
to reflect subsequently occurring events or circumstances, except
as required by applicable securities laws and regulations.
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, President &
COO, dhyzak@mainstcapital.com
Brent D. Smith, CFO,
bsmith@mainstcapital.com
713-350-6000
Dennard - Lascar Associates
Ken Dennard / ken@dennardlascar.com
Mark Roberson /
mroberson@dennardlascar.com
713-529-6600
MAIN STREET
CAPITAL CORPORATION
|
Consolidated
Statements of Operations
|
(dollars in
thousands, except shares and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
INVESTMENT
INCOME:
|
|
|
|
|
|
|
|
Interest, fee and
dividend income:
|
|
|
|
|
|
|
|
Control
investments
|
$
12,957
|
|
$
11,492
|
|
$
25,572
|
|
$
22,827
|
Affiliate investments
|
8,952
|
|
6,961
|
|
17,476
|
|
13,010
|
Non-Control/Non-Affiliate investments
|
20,956
|
|
22,613
|
|
41,693
|
|
42,034
|
Interest, fee and
dividend income
|
42,865
|
|
41,066
|
|
84,741
|
|
77,871
|
Interest, fee and
dividend income from marketable
|
|
|
|
|
|
|
|
securities and idle funds investments
|
37
|
|
242
|
|
168
|
|
616
|
Total investment
income
|
42,902
|
|
41,308
|
|
84,909
|
|
78,487
|
EXPENSES:
|
|
|
|
|
|
|
|
Interest
|
(8,255)
|
|
(7,657)
|
|
(16,437)
|
|
(15,453)
|
Compensation
|
(3,952)
|
|
(3,835)
|
|
(7,772)
|
|
(7,328)
|
General and
administrative
|
(2,157)
|
|
(2,098)
|
|
(4,562)
|
|
(4,060)
|
Share-based
compensation
|
(2,251)
|
|
(1,679)
|
|
(3,840)
|
|
(2,942)
|
Expenses allocated to
the External Investment Manager
|
1,361
|
|
1,162
|
|
2,515
|
|
1,988
|
Total
expenses
|
(15,254)
|
|
(14,107)
|
|
(30,096)
|
|
(27,795)
|
NET INVESTMENT
INCOME
|
27,648
|
|
27,201
|
|
54,813
|
|
50,692
|
|
|
|
|
|
|
|
|
NET REALIZED GAIN
(LOSS):
|
|
|
|
|
|
|
|
Control
investments
|
-
|
|
3,324
|
|
14,358
|
|
3,324
|
Affiliate investments
|
28,707
|
|
(136)
|
|
28,707
|
|
(137)
|
Non-Control/Non-Affiliate investments
|
(13,237)
|
|
(8,633)
|
|
(12,419)
|
|
(10,640)
|
Marketable securities and idle funds investments
|
(13)
|
|
(128)
|
|
(1,586)
|
|
(240)
|
Total net realized
gain (loss)
|
15,457
|
|
(5,573)
|
|
29,060
|
|
(7,693)
|
|
|
|
|
|
|
|
|
NET CHANGE IN
UNREALIZED
|
|
|
|
|
|
|
|
APPRECIATION
(DEPRECIATION):
|
|
|
|
|
|
|
|
Portfolio investments
|
(10,585)
|
|
15,901
|
|
(38,114)
|
|
30,105
|
Marketable securities and idle funds investments
|
37
|
|
(123)
|
|
1,494
|
|
127
|
SBIC
debentures
|
127
|
|
(80)
|
|
(19)
|
|
(772)
|
Total net change in
unrealized appreciation (depreciation)
|
(10,421)
|
|
15,698
|
|
(36,639)
|
|
29,460
|
|
|
|
|
|
|
|
|
INCOME
TAXES:
|
|
|
|
|
|
|
|
Federal and state
income, excise and other taxes
|
(1,098)
|
|
(1,665)
|
|
(1,468)
|
|
(2,042)
|
Deferred
taxes
|
(675)
|
|
5,141
|
|
1,958
|
|
5,810
|
Income tax benefit
(provision)
|
(1,773)
|
|
3,476
|
|
490
|
|
3,768
|
|
|
|
|
|
|
|
|
NET INCREASE IN
NET ASSETS
|
|
|
|
|
|
|
|
RESULTING FROM
OPERATIONS
|
$
30,911
|
|
$
40,802
|
|
$
47,724
|
|
$
76,227
|
|
|
|
|
|
|
|
|
NET INVESTMENT
INCOME PER SHARE -
|
|
|
|
|
|
|
|
BASIC AND
DILUTED
|
$
0.54
|
|
$
0.55
|
|
$
1.07
|
|
$
1.06
|
NET INCREASE IN
NET ASSETS RESULTING FROM
|
|
|
|
|
|
|
|
OPERATIONS PER
SHARE - BASIC AND DILUTED
|
$
0.60
|
|
$
0.82
|
|
$
0.94
|
|
$
1.59
|
|
|
|
|
|
|
|
|
DIVIDENDS PAID PER
SHARE:
|
|
|
|
|
|
|
|
Regular monthly
dividends
|
$
0.540
|
|
$
0.525
|
|
$
1.080
|
|
$
1.035
|
Supplemental
dividends
|
0.275
|
|
0.275
|
|
0.275
|
|
0.275
|
Total
dividends
|
$
0.815
|
|
$
0.800
|
|
$
1.355
|
|
$
1.310
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING -
|
|
|
|
|
|
|
|
BASIC AND
DILUTED
|
51,441,371
|
|
49,883,321
|
|
50,995,575
|
|
47,992,268
|
|
|
|
|
|
|
|
|
MAIN STREET
CAPITAL CORPORATION
|
Consolidated
Balance Sheets
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
ASSETS
|
(Unaudited)
|
|
|
|
|
|
|
Portfolio investments
at fair value:
|
|
|
|
Control
investments
|
$
570,409
|
|
$
555,011
|
Affiliate
investments
|
358,483
|
|
350,519
|
Non-Control/Non-Affiliate investments
|
959,246
|
|
894,466
|
Total portfolio
investments
|
1,888,138
|
|
1,799,996
|
Marketable securities
and idle funds investments
|
1,583
|
|
3,693
|
|
|
|
|
Total
investments
|
1,889,721
|
|
1,803,689
|
|
|
|
|
Cash and cash
equivalents
|
18,694
|
|
20,331
|
Interest receivable
and other assets
|
33,478
|
|
27,737
|
Receivable for
securities sold
|
23,369
|
|
9,901
|
Deferred financing
costs, net
|
12,007
|
|
13,267
|
Deferred tax asset,
net
|
7,767
|
|
4,003
|
|
|
|
|
|
|
|
|
Total
assets
|
$
1,985,036
|
|
$
1,878,928
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Credit
facility
|
$
350,000
|
|
$
291,000
|
SBIC
debentures
|
223,679
|
|
223,660
|
4.50%
Notes
|
175,000
|
|
175,000
|
6.125%
Notes
|
90,655
|
|
90,738
|
Accounts payable and
other liabilities
|
9,313
|
|
12,292
|
Payable for
securities purchased
|
22,522
|
|
2,311
|
Interest
payable
|
5,391
|
|
3,959
|
Dividend
payable
|
9,364
|
|
9,074
|
|
|
|
|
Total
liabilities
|
885,924
|
|
808,034
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
ASSETS
|
|
|
|
|
|
|
|
Common
stock
|
521
|
|
504
|
Additional paid-in
capital
|
1,059,466
|
|
1,011,467
|
Accumulated net
investment income, net of cumulative dividends
|
22,111
|
|
7,181
|
Accumulated net
realized gain from investments, net of cumulative
dividends
|
(50,038)
|
|
(49,653)
|
Net unrealized
appreciation, net of income taxes
|
67,052
|
|
101,395
|
|
|
|
|
Total net
assets
|
1,099,112
|
|
1,070,894
|
|
|
|
|
Total liabilities and
net assets
|
$
1,985,036
|
|
$
1,878,928
|
|
|
|
|
NET ASSET VALUE
PER SHARE
|
$
21.11
|
|
$
21.24
|
|
|
|
|
MAIN STREET
CAPITAL CORPORATION
|
Reconciliation of
Distributable Net Investment Income
|
(dollars in
thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net investment
income
|
$
27,648
|
|
$
27,201
|
|
$
54,813
|
|
$
50,692
|
Share-based compensation expense
|
2,251
|
|
1,679
|
|
3,840
|
|
2,942
|
Distributable net
investment income (1)
|
$
29,899
|
|
$
28,880
|
|
$
58,653
|
|
$
53,634
|
|
|
|
|
|
|
|
|
Per share
amounts:
|
|
|
|
|
|
|
|
Distributable net
investment income per share -
|
|
|
|
|
|
|
|
Basic and diluted (1)
|
$
0.58
|
|
$
0.58
|
|
$
1.15
|
|
$
1.12
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Distributable net
investment income is net investment income, as determined in
accordance with U.S. GAAP, excluding the impact of share-based
compensation expense which is non-cash in nature. Main Street
believes presenting distributable net investment income and the
related per share amount is useful and appropriate supplemental
disclosure of information for analyzing its financial performance
since share-based compensation does not require settlement in cash.
However, distributable net investment income is a non-U.S. GAAP
measure and should not be considered as a replacement for net
investment income and other earnings measures presented in
accordance with U.S. GAAP. Instead, distributable net investment
income should be reviewed only in connection with such U.S. GAAP
measures in analyzing Main Street's financial performance. A
reconciliation of net investment income in accordance with U.S.
GAAP to distributable net investment income is presented in the
table above.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/main-street-announces-second-quarter-2016-financial-results-300310685.html
SOURCE Main Street Capital Corporation