Hercules Capital Reports Second Quarter 2023 Financial Results

Rhea-AI Summary

Hercules Capital, Inc. (NYSE: HTGC) announced its financial results for Q2 2023. Total investment income increased by 61.2% YoY to $116.2 million. Net investment income (NII) was $75.7 million, or $0.53 per share, an 88.6% YoY increase. Total gross fundings for 1H 2023 reached $834.8 million, a 5.6% YoY increase. The company increased its base cash distribution to $0.40 per share, with Q2 2023 NII providing 132% coverage. Undistributed earnings spillover amounted to $148.1 million, or $1.02 per share. Assets under management increased by 19.5% YoY to approximately $4.0 billion.

Positive

• Total investment income increased by 61.2% YoY to $116.2 million
• Net investment income (NII) was $75.7 million, an 88.6% YoY increase
• Total gross fundings for 1H 2023 reached $834.8 million, a 5.6% YoY increase
• The company increased its base cash distribution to $0.40 per share
• Q2 2023 NII provides 132% coverage of the new base cash distribution
• Undistributed earnings spillover of $148.1 million, or $1.02 per share
• Assets under management increased by 19.5% YoY to approximately $4.0 billion

Negative

• None.

Record Q2 2023 Total Investment Income of $116.2 Million, an Increase of 61.2% Year-over-Year

Record Q2 2023 Net Investment Income “NII” of $75.7 Million, or $0.53 per Share, an Increase of 88.6% Year-over-Year

Record 1H 2023 Total Gross Fundings of $834.8 million, an Increase of 5.6% Year-over Year

Increased the Company’s Base Cash Distribution to $0.40 per Share

Q2 2023 NII Provides 132% Coverage of the New Base Cash Distribution

Undistributed Earnings Spillover of $148.1 Million, or $1.02⁽¹⁾ per Ending Shares Outstanding

Approximately $4.0 Billion of Assets Under Management, an Increase of 19.5% Year-over-Year⁽²⁾

PALO ALTO, Calif.--(BUSINESS WIRE)-- Hercules Capital, Inc. (NYSE: HTGC) (“Hercules” or the “Company”), the largest and leading specialty financing provider to innovative venture, growth and established stage companies backed by some of the leading and top-tier venture capital and select private equity firms, today announced its financial results for the second quarter ended June 30, 2023. The earnings release can be accessed at Hercules’ Investor Relations website at https://investor.htgc.com/financial-information/financial-results.

Footnotes:
(1)	$1.07 per Weighted Average Shares Outstanding
(2)	Assets under management includes assets managed by Hercules Capital and its Adviser Subsidiary

Conference Call

Hercules has scheduled its second quarter 2023 financial results conference call for August 3, 2023 at 2:00 p.m. PT (5:00 p.m. ET). To participate via telephone, please register here. Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that can be used to access the call. While not required, it is recommended you join 10 minutes prior to the event start. A live webcast of the second quarter 2023 financial results conference call will also be available on the investor relations section of the Company’s website at investor.htgc.com. An archived webcast replay will be available on the Company's website for at least 30 days following the conference call.

About Hercules Capital, Inc.

Hercules Capital, Inc. (NYSE: HTGC) is the leading and largest specialty finance company focused on providing senior secured venture growth loans to high-growth, innovative venture capital-backed companies in a broad variety of technology, life sciences and sustainable and renewable technology industries. Since inception (December 2003), Hercules has committed more than $17 billion to over 600 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, through its wholly owned subsidiary, Hercules Adviser LLC (“Hercules Adviser”), also maintains an asset management business through which it manages investments for external parties (“Adviser Funds”). Hercules Adviser is registered as an investment adviser under the Investment Advisers Act of 1940.

Hercules’ common stock trades on the New York Stock Exchange (NYSE) under the ticker symbol “HTGC.” In addition, Hercules has one retail bond issuance of 6.25% Notes due 2033 (NYSE: HCXY).

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We may use words such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may” and similar expressions to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and should not be relied upon in making any investment decision. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. While we cannot identify all such risks and uncertainties, we urge you to read the risks discussed in our Annual Report on Form 10-K and other materials that we publicly file with the Securities and Exchange Commission. Any forward-looking statements made in this press release are made only as of the date hereof. Hercules assumes no obligation to update any such statements in the future.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230803442878/en/

Michael Hara

Investor Relations and Corporate Communications

Hercules Capital, Inc.

650-433-5578

mhara@htgc.com

Source: Hercules Capital, Inc.

FAQ

What is the ticker symbol for Hercules Capital, Inc.?

The ticker symbol for Hercules Capital, Inc. is HTGC.

What was the total investment income for Q2 2023?

The total investment income for Q2 2023 was $116.2 million.

What was the net investment income (NII) for Q2 2023?

The net investment income (NII) for Q2 2023 was $75.7 million.

What was the total gross fundings for 1H 2023?

The total gross fundings for 1H 2023 were $834.8 million.

What is the base cash distribution per share?

The base cash distribution per share is $0.40.

What is the coverage of the new base cash distribution?

Q2 2023 NII provides 132% coverage of the new base cash distribution.

What is the undistributed earnings spillover?

The undistributed earnings spillover is $148.1 million, or $1.02 per share.

What is the increase in assets under management YoY?

Assets under management increased by 19.5% YoY to approximately $4.0 billion.