Crescent Capital BDC, Inc. Reports Third Quarter 2024 Earnings Results; Declares a Fourth Quarter Base Dividend of $0.42 Per Share, and a Third Quarter Supplemental Dividend of $0.07 Per Share

Rhea-AI Summary

Crescent Capital BDC reported Q3 2024 financial results with net investment income of $0.64 per share and net income of $0.41 per share. The company declared a Q4 base dividend of $0.42 per share and a Q3 supplemental dividend of $0.07 per share. As of September 30, 2024, the net asset value per share was $20.20, and total investments at fair value were $1.59 billion across 183 portfolio companies. Investment income increased to $51.6 million from $48.2 million year-over-year, primarily due to non-recurring income. The company maintained strong liquidity with $37.8 million in cash and $317.0 million in undrawn credit facility capacity.

Positive

• Net investment income increased to $0.64 per share from $0.59 YoY
• Investment income grew to $51.6M from $48.2M YoY
• Total investments increased to $1.59B from $1.56B YoY
• Net asset value per share improved to $20.20 from $19.70 YoY

Negative

• Net income per share decreased to $0.41 from $0.61 YoY
• Weighted average yield declined to 11.6% from 12.3% YoY
• Net unrealized losses of $12.0M in Q3 2024
• Debt to equity ratio at 1.15x

Insights

Financial Analyst

The Q3 2024 results show solid performance with $0.64 net investment income per share, up from $0.59 in Q2. Total investment income increased to $51.6M, driven by non-recurring income. The $0.42 base dividend plus $0.07 supplemental dividend reflects strong earnings coverage.

Portfolio quality remains robust with 97.4% floating rate exposure providing interest rate protection. The 11.6% weighted average yield, though down from 12.2% last quarter, still indicates healthy returns. The 1.15x debt-to-equity ratio provides adequate leverage while maintaining financial flexibility.

Net asset value per share slightly declined to $20.20 from $20.30, mainly due to $12M in unrealized losses. However, the $317M available credit facility capacity and conservative portfolio positioning with 89.6% in first lien loans suggests strong risk management.

LOS ANGELES, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (“Crescent BDC” or “Company”) (NASDAQ: CCAP) today reported net investment income of $0.64 per share and net income of $0.41 per share for the quarter ended September 30, 2024. Reported net asset value per share was $20.20 as of September 30, 2024.

Dividend Declarations  

The Company’s Board of Directors (the “Board”) declared a fourth quarter 2024 regular cash dividend of $0.42 per share to stockholders of record as of December 31, 2024, payable on January 15, 2025. The Board also announced a third quarter 2024 supplemental cash dividend of $0.07 per share to stockholders of record as of November 29, 2024, payable on December 16, 2024.

Selected Financial Highlights ($ in millions, except per share amounts)
	As of and for the three months ended
	September 30, 2024					June 30, 2024					September 30, 2023
Investments, at fair value	$		1,591.4			$		1,610.8			$		1,564.8
Total assets	$		1,645.0			$		1,672.4			$		1,624.5
Total net assets	$		748.8			$		752.4			$		730.3
Net asset value per share	$		20.20			$		20.30			$		19.70
Investment income	$		51.6			$		48.9			$		48.2
Net investment income	$		23.5			$		21.7			$		21.7
Net realized gains (losses), net of taxes	$		3.8			$		(4.1	)		$		(0.1	)
Net change in unrealized gains (losses), net of taxes	$		(12.0	)		$		2.8			$		1.0
Net increase (decrease) in net assets resulting from operations	$		15.3			$		20.4			$		22.6
Net investment income per share	$		0.64			$		0.59			$		0.59
Net realized gains (losses) per share, net of taxes	$		0.10			$		(0.11	)		$		(0.00	)
Net change in unrealized gains (losses) per share, net of taxes	$		(0.32	)		$		0.07			$		0.02
Net increase (decrease) in net assets resulting from operations per share	$		0.41			$		0.55			$		0.61
Regular distributions paid per share	$		0.42			$		0.42			$		0.41
Supplemental distributions paid per share	$		0.07			$		0.11			$		0.08
Weighted average yield on income producing securities (at cost)1			11.6	%				12.2	%				12.3	%
Percentage of debt investments at floating rates			97.4	%				96.9	%				98.6	%

Portfolio & Investment Activity

As of September 30, 2024 and December 31, 2023, the Company had investments in 183 and 186 portfolio companies with an aggregate fair value of $1,591.4 and $1,582.1 million, respectively. The portfolio at fair value was comprised of the following asset types:

Portfolio Asset Types:
		As of
$ in millions		September 30, 2024										December 31, 2023
Investment Type		Fair Value					Percentage					Fair Value					Percentage
Senior secured first lien		$		401.7				25.2		%		$		429.2				27.0		%
Unitranche first lien2				1,023.7				64.4						973.9				61.5
Unitranche first lien - last out2				5.8				0.4						13.5				0.9
Senior secured second lien				41.8				2.6						58.2				3.7
Unsecured debt				18.7				1.2						4.1				0.3
Equity & other				59.2				3.7						50.1				3.2
LLC/LP equity interests				40.5				2.5						53.1				3.4
Total investments		$		1,591.4				100.0		%		$		1,582.1				100.0		%

For the quarter ended September 30, 2024, the Company invested $72.7 million across six new portfolio companies and several follow-on revolver and delayed draw fundings. During this period, the Company had $92.3 million in aggregate exits, sales and repayments. For the quarter ended June 30, 2024, the Company invested $119.3 million across six new portfolio companies and several follow-on revolver and delayed draw fundings. During this period, the Company had $73.4 million in aggregate exits, sales and repayments.

Results of Operations

For the quarter ended September 30, 2024 and 2023, investment income was $51.6 million and $48.2 million, respectively. The increase in investment income was due to a rise in one-time non-recurring income. Net expenses, including income and excise taxes, totaled $28.1 million and $26.4 million for the quarter ended September 30, 2024 and 2023, respectively. The increase in net expenses was primarily due to a higher weighted average debt outstanding.

Liquidity and Capital Resources

As of September 30, 2024, the Company had $37.8 million in cash and cash equivalents and restricted cash and $317.0 million of undrawn capacity on its credit facilities, subject to borrowing base and other limitations. The weighted average cost of debt on the Company’s debt outstanding as of September 30, 2024 was 6.59%.

The Company’s debt to equity ratio was 1.15x as of September 30, 2024.

Conference Call

The Company will host a webcast/conference call on Tuesday, November 12, 2024 at 12:00 p.m. (Eastern Time) to discuss its financial results for the quarter ended September 30, 2024. Please visit Crescent BDC’s webcast link located on the Events & Presentations page of the Investor Relations section of Crescent BDC’s website for a slide presentation that complements the earnings conference call.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Events & Presentations page of the Investor Resources section of Crescent BDC’s website at www.crescentbdc.com. Please visit the website to test your connection before the webcast. Participants are also invited to access the conference call by dialing the following number:

Toll Free: (800) 245-3047
Conference ID: CRESCENT

All callers will need to reference the Conference ID once connected with the operator. An archived replay will be available via a webcast link located on the Investor Relations section of Crescent BDC's website.

Endnotes
	Note: Numbers may not sum due to rounding.
	1)	Yield includes performing debt and other income producing investments (excluding investments on non-accrual).
	2)	Unitranche loans are first lien loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, the Company may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that the Company would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate.

Crescent Capital BDC, Inc. Consolidated Statements of Assets and Liabilities (in thousands except share and per share data)
	As of September 30, 2024				As of December 31, 2023
Assets
Investments, at fair value
Non-controlled non-affiliated investments (cost of$1,485,564 and $1,469,251, respectively)	$	1,492,347			$	1,465,537
Non-controlled affiliated investments (cost of $48,703 and $56,084, respectively)		51,003				52,619
Controlled investments (cost of $66,748 and $67,353, respectively)		48,083				63,919
Cash and cash equivalents		17,086				7,780
Restricted cash and cash equivalents		20,751				16,690
Interest and dividend receivable		10,640				14,000
Receivable from unsettled transactions		131				251
Unrealized appreciation on foreign currency forward contracts		1,396				5,128
Deferred tax assets		503				114
Other assets		3,109				1,341
Total assets	$	1,645,049			$	1,627,379
Liabilities
Debt (net of deferred financing costs of $7,358 and $7,138)	$	857,236			$	844,783
Distributions payable		15,566				15,195
Interest and other debt financing costs payable		9,116				10,900
Management fees payable		5,089				5,026
Incentive fees payable		4,899				4,770
Deferred tax liabilities		503				578
Unrealized depreciation on foreign currency forward contracts		77				84
Accrued expenses and other liabilities		3,756				3,449
Total liabilities	$	896,242			$	884,785
Net assets
Preferred stock, par value $0.001 per share (10,000 shares authorized, zero outstanding, respectively)	$	-			$	-
Common stock, par value $0.001 per share (200,000,000 shares authorized, 37,061,547 and 30,887,360 shares issued and outstanding, respectively)		37				37
Paid-in capital in excess of par value		965,895				965,895
Accumulated earnings (loss)		(217,125	)			(223,338	)
Total net assets	$	748,807			$	742,594
Total liabilities and net assets	$	1,645,049			$	1,627,379
Net asset value per share	$	20.20			$	20.04

Crescent Capital BDC, Inc. Consolidated Statements of Operations (in thousands except share and per share data) (Unaudited)
	For the three months ended September 30,								For the nine months ended September 30,
		2024				2023				2024				2023
Investment Income:
From non-controlled non-affiliated investments:
Interest income	$	42,294			$	42,578			$	127,832			$	118,080
Paid-in-kind interest		3,527				703				6,742				1,971
Dividend income		102				1				496				80
Other income		1,149				237				2,815				466
From non-controlled affiliated investments:
Interest income		713				770				2,505				2,122
Paid-in-kind interest		708				384				1,217				619
Dividend income		520				530				808				1,709
Other income		-				161				16				309
From controlled investments:
Interest income		273				148				881				468
Paid-in-kind interest		—				—				—				192
Dividend income		2,344				2,640				7,624				8,160
Other income		3				—				8				—
Total investment income		51,633				48,152				150,944				134,176
Expenses:
Interest and other debt financing costs		16,104				15,379				47,638				43,019
Management fees		5,119				5,073				15,133				14,541
Income based incentive fees		4,976				4,593				14,518				12,634
Professional fees		585				383				1,483				1,121
Directors’ fees		151				151				459				457
Other general and administrative expenses		609				618				1,914				2,099
Total expenses		27,544				26,197				81,145				73,871
Management fees waiver		(30	)			(49	)			(101	)			(145	)
Income based incentive fees waiver		(77	)			(69	)			(114	)			(229	)
Net expenses		27,437				26,079				80,930				73,497
Net investment income before taxes		24,196				22,073				70,014				60,679
(Benefit) provision for income and excise taxes		655				350				1,455				890
Net investment income		23,541				21,723				68,559				59,789
Net realized and unrealized gains (losses) on investments:
Net realized gain (loss) on:
Non-controlled non-affiliated investments		2,095				41				(4,839	)			(6,202	)
Non-controlled affiliated investments		(4,828	)			—				(4,828	)			—
Controlled investments		6,443				—				6,443				—
Foreign currency transactions		59				(10	)			(460	)			(68	)
Foreign currency forward contracts		—				—				3,223				—
Net change in unrealized appreciation (depreciation) on:
Non-controlled non-affiliated investments and foreign currency translation		(3,774	)			476				8,287				4,932
Non-controlled affiliated investments		4,571				(4,014	)			5,765				(3,475	)
Controlled investments		(11,378	)			2,488				(15,231	)			(3,482	)
Foreign currency forward contracts		(1,405	)			1,994				(3,725	)			755
Net realized and unrealized gains (losses) on investments		(8,217	)			975				(5,365	)			(7,540	)
Benefit (provision) for taxes on realized gain on investments		—				(120	)			—				132
Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments		(56	)			43				464				598
Net increase (decrease) in net assets resulting from operations	$	15,268			$	22,621			$	63,658			$	52,979
Per common share data:
Net increase (decrease) in net assets resulting from operations per share (basic and diluted):	$	0.41			$	0.61			$	1.72			$	1.49
Net investment income per share (basic and diluted):	$	0.64			$	0.59			$	1.85			$	1.68
Weighted average shares outstanding (basic and diluted):		37,061,547				37,061,547				37,061,547				35,546,270

About Crescent BDC

Crescent BDC is a business development company that seeks to maximize the total return of its stockholders in the form of current income and capital appreciation by providing capital solutions to middle market companies with sound business fundamentals and strong growth prospects. Crescent BDC utilizes the extensive experience, origination capabilities and disciplined investment process of Crescent. Crescent BDC is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent. Crescent BDC has elected to be regulated as a business development company under the Investment Company Act of 1940. For more information about Crescent BDC, visit www.crescentbdc.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

About Crescent Capital Group

Crescent is a global credit investment manager with $43 billion of assets under management. For over 30 years, the firm has focused on below investment grade credit through strategies that invest in marketable and privately originated debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche and junior debt securities. Crescent is headquartered in Los Angeles with offices in New York, Boston, Chicago and London with more than 225 employees globally. Crescent is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. For more information about Crescent, visit www.crescentcap.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

Contact:

Dan McMahon
daniel.mcmahon@crescentcap.com
212-364-0149

Forward-Looking Statements

This press release, and other statements that Crescent BDC may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to Crescent BDC’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

Crescent BDC cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which may change over time. Forward-looking statements speak only as of the date they are made, and Crescent BDC assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in Crescent BDC’s SEC reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) our future operating results; (2) our business prospects and the prospects of our portfolio companies; (3) the impact of investments that we expect to make; (4) our contractual arrangements and relationships with third parties; (5) the dependence of our future success on the general economy and its impact on the industries in which we invest; (6) the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives; (7) our expected financings and investments; (8) the adequacy of our cash resources and working capital, including our ability to obtain continued financing on favorable terms; (9) the timing of cash flows, if any, from the operations of our portfolio companies; (10) the impact of increased competition; (11) the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments; (12) potential conflicts of interest in the allocation of opportunities between us and other investment funds managed by our investment adviser or its affiliates; (13) the ability of our investment adviser to attract and retain highly talented professionals; (14) changes in law and policy accompanying the new administration and uncertainty pending any such changes; (15) increased geopolitical unrest, terrorist attacks or acts of war, which may adversely affect the general economy, domestic and local financial and capital markets, or the specific industries of our portfolio companies; (16) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets; (17) the unfavorable resolution of legal proceedings; and (18) the impact of changes to tax legislation and, generally, our tax position.

Crescent BDC’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC, identifies additional factors that can affect forward-looking statements.

Other Information

The information in this press release is summary information only and should be read in conjunction with Crescent BDC’s annual report on Form 10-K for the year ended December 31, 2023, which Crescent BDC filed with the U.S. Securities and Exchange Commission (the SEC) on February 21, 2024, as well as Crescent BDC’s other reports filed with the SEC. A copy of Crescent BDC’s annual report on Form 10-K for the year ended December 31, 2023, Crescent BDC’s quarterly reports on Form 10-Q and Crescent BDC’s other reports filed with the SEC can be found on Crescent BDC’s website at www.crescentbdc.com and the SEC’s website at www.sec.gov.

FAQ

What was Crescent Capital BDC's (CCAP) net investment income per share in Q3 2024?

Crescent Capital BDC reported net investment income of $0.64 per share for Q3 2024.

What dividends did CCAP declare for Q4 2024?

CCAP declared a regular cash dividend of $0.42 per share and a supplemental dividend of $0.07 per share.

What was CCAP's net asset value per share as of September 30, 2024?

CCAP's net asset value per share was $20.20 as of September 30, 2024.

How many portfolio companies did CCAP invest in as of Q3 2024?

CCAP had investments in 183 portfolio companies as of September 30, 2024.