Monroe Capital Corporation BDC Announces Second Quarter 2024 Results
Monroe Capital (NASDAQ: MRCC) disclosed its financial results for Q2 2024 on August 7, 2024. Key highlights include:
Financial Performance: Net Investment Income (NII) of $6.6 million ($0.30 per share) and Adjusted NII of $6.7 million ($0.31 per share). Net increase in net assets resulting from operations was $3.3 million ($0.15 per share). Net Asset Value (NAV) decreased to $199.3 million ($9.20 per share).
Dividend: A $0.25 per share dividend was paid, maintaining a 14.0% annualized dividend yield.
Portfolio Overview: The portfolio includes 94 investments valued at $485.8 million, primarily first lien loans (81.1%). The weighted average yield was 11.9%, and loans on non-accrual status represented 1.9% of total investments.
CEO Theodore L. Koenig highlighted the company’s focus on portfolio quality and risk-adjusted returns amidst a high-interest rate environment.
Monroe Capital (NASDAQ: MRCC) ha reso noti i risultati finanziari per il secondo trimestre del 2024 il 7 agosto 2024. I punti salienti includono:
Performance Finanziaria: Reddito Netto da Investimenti (NII) di 6,6 milioni di dollari (0,30 dollari per azione) e NII Rettificato di 6,7 milioni di dollari (0,31 dollari per azione). L'aumento netto delle attività nette derivante dalle operazioni è stato di 3,3 milioni di dollari (0,15 dollari per azione). Il Valore Netto delle Attività (NAV) è sceso a 199,3 milioni di dollari (9,20 dollari per azione).
Dividendo: È stato pagato un dividendo di 0,25 dollari per azione, mantenendo un rendimento annualizzato del dividendo del 14,0%.
Panoramica del Portafoglio: Il portafoglio comprende 94 investimenti valutati 485,8 milioni di dollari, principalmente prestiti di primo grado (81,1%). Il rendimento medio ponderato era dell'11,9%, e i prestiti in stato di non acquisizione rappresentavano l'1,9% degli investimenti totali.
Il CEO Theodore L. Koenig ha evidenziato l'attenzione dell'azienda sulla qualità del portafoglio e sui rendimenti aggiustati per il rischio in un contesto di tassi d'interesse elevati.
Monroe Capital (NASDAQ: MRCC) divulgó sus resultados financieros para el segundo trimestre de 2024 el 7 de agosto de 2024. Los aspectos destacados incluyen:
Desempeño Financiero: Ingreso Neto por Inversiones (NII) de 6,6 millones de dólares (0,30 dólares por acción) y NII Ajustado de 6,7 millones de dólares (0,31 dólares por acción). El aumento neto de activos netos resultante de las operaciones fue de 3,3 millones de dólares (0,15 dólares por acción). El Valor Neto de los Activos (NAV) disminuyó a 199,3 millones de dólares (9,20 dólares por acción).
Dividendo: Se pagó un dividendo de 0,25 dólares por acción, manteniendo un rendimiento anualizado del dividendo del 14,0%.
Descripción General de la Cartera: La cartera incluye 94 inversiones valoradas en 485,8 millones de dólares, principalmente préstamos de primer grado (81,1%). El rendimiento promedio ponderado fue del 11,9%, y los préstamos en estado de no devengo representaron el 1,9% de las inversiones totales.
El CEO Theodore L. Koenig destacó el enfoque de la empresa en la calidad de la cartera y en los rendimientos ajustados al riesgo en un entorno de altas tasas de interés.
Monroe Capital (NASDAQ: MRCC)는 2024년 8월 7일 2024년 2분기 재무 결과를 발표했습니다. 주요 내용은 다음과 같습니다:
재무 성과: 순 투자 수익(NII)은 660만 달러(주당 0.30달러)였으며, 조정된 NII는 670만 달러(주당 0.31달러)였습니다. 운영에서 발생한 순 자산의 증가액은 330만 달러(주당 0.15달러)였습니다. 순 자산 가치(NAV)는 1억 9930만 달러(주당 9.20달러)로 감소했습니다.
배당금: 주당 0.25달러의 배당금이 지급되어 연율 배당 수익률이 14.0%를 유지했습니다.
포트폴리오 개요: 포트폴리오는 94개의 투자를 포함하며 총 4억 8580만 달러의 가치가 있으며, 주로 첫 번째 담보 대출(81.1%)로 구성됩니다. 가중 평균 수익률은 11.9%였고, 미상환 상태인 대출은 총 투자액의 1.9%를 차지했습니다.
CEO Theodore L. Koenig은 고금리 환경 속에서 포트폴리오 품질과 위험 조정 수익에 대한 회사의 집중을 강조했습니다.
Monroe Capital (NASDAQ: MRCC) a annoncé ses résultats financiers pour le deuxième trimestre de 2024 le 7 août 2024. Les points forts comprennent :
Performance Financière : Revenu Net d'Investissement (NII) de 6,6 millions de dollars (0,30 dollar par action) et NII Ajusté de 6,7 millions de dollars (0,31 dollar par action). L'augmentation nette des actifs nets résultant des opérations s'élevait à 3,3 millions de dollars (0,15 dollar par action). La Valeur Nette des Actifs (NAV) a diminué à 199,3 millions de dollars (9,20 dollars par action).
Dividende : Un dividende de 0,25 dollar par action a été payé, maintenant un rendement annuelisé du dividende de 14,0%.
Aperçu du Portefeuille : Le portefeuille comprend 94 investissements d'une valeur de 485,8 millions de dollars, principalement des prêts de premier recours (81,1%). Le rendement moyen pondéré était de 11,9%, et les prêts en statut de non-accrual représentaient 1,9% des investissements totaux.
Le PDG Theodore L. Koenig a souligné l'importance de la qualité du portefeuille et des rendements ajustés au risque dans un environnement de taux d'intérêt élevés.
Monroe Capital (NASDAQ: MRCC) veröffentlichte am 7. August 2024 seine finanziellen Ergebnisse für das zweite Quartal 2024. Zu den wichtigsten Punkten gehören:
Finanzielle Leistung: Nettoinvestitionseinkommen (NII) von 6,6 Millionen Dollar (0,30 Dollar pro Aktie) und bereinigtes NII von 6,7 Millionen Dollar (0,31 Dollar pro Aktie). Der Nettoumsatz aus den Betrieben betrug 3,3 Millionen Dollar (0,15 Dollar pro Aktie). Der Nettoverwertungswert (NAV) fiel auf 199,3 Millionen Dollar (9,20 Dollar pro Aktie).
Dividende: Eine Dividende von 0,25 Dollar pro Aktie wurde gezahlt, was eine annualisierte Dividendenrendite von 14,0% aufrechterhält.
Portfoliobewertung: Das Portfolio umfasst 94 Investitionen im Wert von 485,8 Millionen Dollar, hauptsächlich Erstpfanddarlehen (81,1%). Die gewichtete durchschnittliche Rendite betrug 11,9%, und Kredite im Nicht-Akkumulationsstatus machten 1,9% der Gesamtinvestitionen aus.
CEO Theodore L. Koenig betonte den Fokus des Unternehmens auf die Qualität des Portfolios und risikoadjustierte Renditen in einem Umfeld hoher Zinsen.
- Net Investment Income (NII) rose to $6.6 million or $0.30 per share.
- Adjusted Net Investment Income (Non-GAAP) increased to $6.7 million or $0.31 per share.
- Dividend maintained at $0.25 per share with a 14.0% yield.
- Total investment income increased to $15.6 million from $15.2 million in the previous quarter.
- Net Asset Value (NAV) decreased by $0.10 per share to $199.3 million.
- Net loss of $3.3 million attributed to unrealized mark-to-market losses in certain portfolio companies.
- Total portfolio fair value dropped from $500.9 million to $485.8 million.
Insights
Monroe Capital 's Q2 2024 results show mixed performance. The company reported
The increase in NII is positive, driven by higher investment income and lower expenses. However, the NAV decline is concerning, primarily due to unrealized losses in the portfolio. The company maintained its
The company's leverage decreased from 1.60x to 1.54x debt-to-equity, which is a positive sign for financial stability. However, the slight decrease in portfolio yield and increase in non-accrual loans (now
Monroe Capital's Q2 2024 portfolio composition remains heavily weighted towards first lien loans at
The MRCC Senior Loan Fund (SLF) continues to be a significant contributor, providing
The company's focus on maintaining asset quality in a higher interest rate environment is crucial. While the increase in average invested assets is positive for income generation, the unrealized losses and NAV decline highlight the challenges in the current market. Investors should closely monitor the company's ability to navigate these headwinds and maintain its dividend coverage.
CHICAGO, Aug. 07, 2024 (GLOBE NEWSWIRE) -- Monroe Capital Corporation (NASDAQ: MRCC) today announced its financial results for the second quarter ended June 30, 2024.
Except where the context suggests otherwise, the terms “Company,” “we,” “us,” and “our” refer to Monroe Capital Corporation (together with its subsidiaries).
Second Quarter 2024 Financial Highlights
- Net Investment Income ("NII") of
$6.6 million , or$0.30 per share - Adjusted Net Investment Income (a non-GAAP measure described below) of
$6.7 million , or$0.31 per share - Net increase in net assets resulting from operations of
$3.3 million , or$0.15 per share - Net Asset Value (“NAV”) of
$199.3 million , or$9.20 per share - Paid quarterly dividend of
$0.25 per share on June 28, 2024 - Current annual cash dividend yield to stockholders of approximately
14.0% (1)
Chief Executive Officer Theodore L. Koenig commented, “We are pleased to announce a
Monroe Capital Corporation is a business development company affiliate of the award-winning private credit investment firm and lender, Monroe Capital LLC.
______________________________________________________________________
(1) Based on an annualized dividend and closing share price as of August 6, 2024.
Management Commentary
Adjusted Net Investment Income totaled
NAV decreased by
During the quarter, the Company's debt-to-equity leverage decreased from 1.60 times debt-to-equity to 1.54 times debt-to-equity. While average leverage was slightly up during the quarter, leverage at quarter end decreased as a result of paydowns of the revolving credit facility with proceeds from investment sales and paydowns which were more heavily weighted towards the end of the quarter. We continue to focus on managing our investment portfolio and selectively redeploying capital resulting from future repayments.
Selected Financial Highlights
(in thousands, except per share data)
| June 30, 2024 | March 31, 2024 | ||||
| Consolidated Statements of Assets and Liabilities data: | (unaudited) | ||||
| Investments, at fair value | $ | 485,804 | $ | 500,889 | |
| Total assets | $ | 512,113 | $ | 527,488 | |
| Net assets | $ | 199,344 | $ | 201,502 | |
| Net asset value per share | $ | 9.20 | $ | 9.30 | |
| Three months ended | |||||||
| June 30, 2024 | March 31, 2024 | ||||||
| Consolidated Statements of Operations data: | (unaudited) | ||||||
| Net investment income | $ | 6,559 | $ | 5,470 | |||
| Adjusted net investment income(2) | $ | 6,694 | $ | 5,488 | |||
| Net gain (loss) | $ | (3,301 | ) | $ | (2,275 | ) | |
| Net increase (decrease) in net assets resulting from operations | $ | 3,258 | $ | 3,195 | |||
| Per share data: | |||||||
| Net investment income | $ | 0.30 | $ | 0.25 | |||
| Adjusted net investment income(2) | $ | 0.31 | $ | 0.25 | |||
| Net gain (loss) | $ | (0.15 | ) | $ | (0.10 | ) | |
| Net increase (decrease) in net assets resulting from operations | $ | 0.15 | $ | 0.15 | |||
______________________________________________________________________
(2) See Non-GAAP Financial Measure – Adjusted Net Investment Income below for a detailed description of this non-GAAP measure and a reconciliation from NII to Adjusted Net Investment Income. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company.
Portfolio Review
The Company had debt and equity investments in 94 portfolio companies, with a total fair value of
Financial Review
NII for the quarter ended June 30, 2024 totaled
Total investment income for the quarter ended June 30, 2024 totaled
Total expenses for the quarter ended June 30, 2024 were
Net gain (loss) was
Net increase (decrease) in net assets resulting from operations was
Liquidity and Capital Resources
As of June 30, 2024, the Company had
MRCC Senior Loan Fund
MRCC Senior Loan Fund I, LLC ("SLF") is a joint venture with Life Insurance Company of the Southwest (“LSW”), an affiliate of National Life Insurance Company. SLF invests primarily in senior secured loans to middle market companies in the United States. The Company and LSW have each committed
As of June 30, 2024, SLF had total assets of
Non-GAAP Financial Measure – Adjusted Net Investment Income
On a supplemental basis, the Company discloses Adjusted Net Investment Income (including on a per share basis) which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with generally accepted accounting principles of the United States of America (“non-GAAP”). Adjusted Net Investment Income represents NII, excluding the net capital gains incentive fee and income taxes. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. The management agreement with the Company’s advisor provides that a capital gains incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized capital losses for such year. Management believes that Adjusted Net Investment Income is a useful indicator of operations exclusive of any net capital gains incentive fee as NII does not include gains associated with the capital gains incentive fee.
The following tables provide a reconciliation from NII (the most comparable GAAP measure) to Adjusted Net Investment Income for the periods presented (in thousands, except per share data):
| Three Months Ended | |||||||||||
| June 30, 2024 | March 31, 2024 | ||||||||||
| Amount | Per Share Amount | Amount | Per Share Amount | ||||||||
| (unaudited) | |||||||||||
| Net investment income | $ | 6,559 | $ | 0.30 | $ | 5,470 | $ | 0.25 | |||
| Net capital gains incentive fee | — | — | — | — | |||||||
| Income taxes, including excise taxes | 135 | 0.01 | 18 | — | |||||||
| Adjusted Net Investment Income | $ | 6,694 | $ | 0.31 | $ | 5,488 | $ | 0.25 | |||
Adjusted Net Investment Income may not be comparable to similar measures presented by other companies, as it is a non-GAAP financial measure that is not based on a comprehensive set of accounting rules or principles and therefore may be defined differently by other companies. In addition, Adjusted Net Investment Income should be considered in addition to, not as a substitute for, or superior to, financial measures determined in accordance with GAAP.
Second Quarter 2024 Financial Results Conference Call
The Company will host a webcast and conference call to discuss these operating and financial results on Thursday, August 8, 2024 at 11:00 a.m. Eastern Time. The webcast will be hosted on a webcast link located in the Investor Relations section of the Company’s website at http://ir.monroebdc.com/events.cfm. To participate in the conference call, please dial (800) 715-9871 approximately 10 minutes prior to the call. Please reference conference ID # 7213559.
For those unable to listen to the live broadcast, the webcast will be available for replay on the Company’s website approximately two hours after the event.
For a more detailed discussion of the financial and other information included in this press release, please also refer to the Company’s Form 10-Q for the quarter ended June 30, 2024 to be filed with the SEC (www.sec.gov) on Wednesday, August 7, 2024.
| MONROE CAPITAL CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except per share data) | |||||||
| June 30, 2024 | March 31, 2024 | ||||||
| (unaudited) | |||||||
| Assets | |||||||
| Investments, at fair value: | |||||||
| Non-controlled/non-affiliate company investments | $ | 368,238 | $ | 384,266 | |||
| Non-controlled affiliate company investments | 84,468 | 83,633 | |||||
| Controlled affiliate company investments | 33,098 | 32,990 | |||||
| Total investments, at fair value (amortized cost of: | 485,804 | 500,889 | |||||
| Cash and cash equivalents | 3,876 | 4,856 | |||||
| Interest and dividend receivable | 21,661 | 20,885 | |||||
| Other assets | 772 | 858 | |||||
| Total assets | $ | 512,113 | $ | 527,488 | |||
| Liabilities | |||||||
| Debt | $ | 307,800 | $ | 321,700 | |||
| Less: Unamortized debt issuance costs | (2,581 | ) | (2,908 | ) | |||
| Total debt, less unamortized debt issuance costs | 305,219 | 318,792 | |||||
| Interest payable | 2,972 | 1,621 | |||||
| Base management fees payable | 2,037 | 2,048 | |||||
| Incentive fees payable | 351 | 1,368 | |||||
| Accounts payable and accrued expenses | 2,190 | 2,081 | |||||
| Directors' fees payable | — | 76 | |||||
| Total liabilities | 312,769 | 325,986 | |||||
| Net Assets | |||||||
| Common stock, | $ | 22 | $ | 22 | |||
| Capital in excess of par value | 298,127 | 298,127 | |||||
| Accumulated undistributed (overdistributed) earnings | (98,805 | ) | (96,647 | ) | |||
| Total net assets | $ | 199,344 | $ | 201,502 | |||
| Total liabilities and total net assets | $ | 512,113 | $ | 527,488 | |||
| Net asset value per share | $ | 9.20 | $ | 9.30 | |||
| MONROE CAPITAL CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) | |||||||
| Three months ended | |||||||
| June 30, 2024 | March 31, 2024 | ||||||
| (unaudited) | |||||||
| Investment income: | |||||||
| Non-controlled/non-affiliate company investments: | |||||||
| Interest income | $ | 10,973 | $ | 10,830 | |||
| Payment-in-kind interest income | 771 | 808 | |||||
| Dividend income | 62 | 59 | |||||
| Other income | 265 | 37 | |||||
| Total investment income from non-controlled/non-affiliate company investments | 12,071 | 11,734 | |||||
| Non-controlled affiliate company investments: | |||||||
| Interest income | 1,273 | 1,188 | |||||
| Payment-in-kind interest income | 1,328 | 1,307 | |||||
| Dividend income | 55 | 53 | |||||
| Total investment income from non-controlled affiliate company investments | 2,656 | 2,548 | |||||
| Controlled affiliate company investments: | |||||||
| Dividend income | 900 | 900 | |||||
| Total investment income from controlled affiliate company investments | 900 | 900 | |||||
| Total investment income | 15,627 | 15,182 | |||||
| Operating expenses: | |||||||
| Interest and other debt financing expenses | 5,780 | 5,507 | |||||
| Base management fees | 2,037 | 2,048 | |||||
| Incentive fees | 351 | 1,368 | |||||
| Professional fees | 199 | 268 | |||||
| Administrative service fees | 250 | 209 | |||||
| General and administrative expenses | 243 | 218 | |||||
| Directors' fees | 73 | 76 | |||||
| Total operating expenses | 8,933 | 9,694 | |||||
| Net investment income before income taxes | 6,694 | 5,488 | |||||
| Income taxes, including excise taxes | 135 | 18 | |||||
| Net investment income | 6,559 | 5,470 | |||||
| Net gain (loss): | |||||||
| Net realized gain (loss): | |||||||
| Non-controlled/non-affiliate company investments | 506 | 4 | |||||
| Net realized gain (loss) | 506 | 4 | |||||
| Net change in unrealized gain (loss): | |||||||
| Non-controlled/non-affiliate company investments | (2,985 | ) | (1,344 | ) | |||
| Non-controlled affiliate company investments | (930 | ) | (803 | ) | |||
| Controlled affiliate company investments | 108 | (132 | ) | ||||
| Net change in unrealized gain (loss) | (3,807 | ) | (2,279 | ) | |||
| Net gain (loss) | (3,301 | ) | (2,275 | ) | |||
| Net increase (decrease) in net assets resulting from operations | $ | 3,258 | $ | 3,195 | |||
| Per common share data: | |||||||
| Net investment income per share - basic and diluted | $ | 0.30 | $ | 0.25 | |||
| Net increase (decrease) in net assets resulting from operations per share - basic and diluted | $ | 0.15 | $ | 0.15 | |||
| Weighted average common shares outstanding - basic and diluted | 21,666 | 21,666 | |||||
Additional Supplemental Information:
The composition of the Company’s investment income was as follows (in thousands):
| Three months ended | |||||
| June 30, 2024 | March 31, 2024 | ||||
| (unaudited) | |||||
| Interest income | $ | 11,850 | $ | 11,662 | |
| Payment-in-kind interest income | 2,099 | 2,115 | |||
| Dividend income | 1,017 | 1,012 | |||
| Other income | 265 | 37 | |||
| Prepayment gain (loss) | 145 | 105 | |||
| Accretion of discounts and amortization of premiums | 251 | 251 | |||
| Total investment income | $ | 15,627 | $ | 15,182 | |
The composition of the Company’s interest expense and other debt financing expenses was as follows (in thousands):
| Three months ended | |||||
| June 30, 2024 | March 31, 2024 | ||||
| (unaudited) | |||||
| Interest expense - revolving credit facility | $ | 3,898 | $ | 3,625 | |
| Interest expense - 2026 Notes | 1,555 | 1,555 | |||
| Amortization of debt issuance costs | 327 | 327 | |||
| Total interest and other debt financing expenses | $ | 5,780 | $ | 5,507 | |
About Monroe Capital Corporation
Monroe Capital Corporation is a publicly-traded specialty finance company that principally invests in senior, unitranche and junior secured debt and, to a lesser extent, unsecured debt and equity investments in middle-market companies. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. The Company’s investment activities are managed by its investment adviser, Monroe Capital BDC Advisors, LLC, which is an investment adviser registered under the Investment Advisers Act of 1940, as amended, and an affiliate of Monroe Capital LLC. To learn more about Monroe Capital Corporation, visit www.monroebdc.com.
About Monroe Capital LLC
Monroe Capital LLC (including its subsidiaries and affiliates, together “Monroe”) is a premier asset management firm specializing in private credit markets across various strategies, including direct lending, technology finance, venture debt, alternative credit, structured credit, real estate and equity. Since 2004, the firm has been successfully providing capital solutions to clients in the U.S. and Canada. Monroe prides itself on being a value-added and user-friendly partner to business owners, management, and both private equity and independent sponsors. Monroe’s platform offers a wide variety of investment products for both institutional and high net worth investors with a focus on generating high quality “alpha” returns irrespective of business or economic cycles. The firm is headquartered in Chicago and maintains 10 offices throughout the United States and Asia.
Monroe has been recognized by both its peers and investors with various awards including Private Debt Investor as the 2023 Lower Mid-Market Lender of the Decade, 2023 Lower Mid-Market Lender of the Year, 2023 CLO Manager of the Year, Americas; Inc.’s 2023 Founder-Friendly Investors List; Global M&A Network as the 2023 Lower Mid-Markets Lender of the Year, U.S.A.; DealCatalyst as the 2022 Best CLO Manager of the Year; Korean Economic Daily as the 2022 Best Performance in Private Debt – Mid Cap; Creditflux as the 2021 Best U.S. Direct Lending Fund; and Pension Bridge as the 2020 Private Credit Strategy of the Year. For more information and important disclaimers, please visit www.monroecap.com.
Forward-Looking Statements
This press release may contain certain forward-looking statements. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future. Such statements speak only as of the time when made, and the Company undertakes no obligation to update any such statement now or in the future.
SOURCE: Monroe Capital Corporation
| Investor Contact: | Mick Solimene |
| Chief Financial Officer and Chief Investment Officer | |
| Monroe Capital Corporation | |
| (312) 598-8401 | |
| Email: msolimene@monroecap.com | |
| Media Contact: | Daniel Abramson |
| BackBay Communications | |
| (857) 305-8441 | |
| Email: daniel.abramson@backbaycommunications.com |
FAQ
What were Monroe Capital 's Q2 2024 earnings?
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