Monroe Capital Corporation BDC Announces Third Quarter 2024 Results
Monroe Capital (MRCC) reported its Q3 2024 financial results with Net Investment Income (NII) of $6.5 million, or $0.30 per share. The company maintained its quarterly dividend of $0.25 per share, offering a 12.3% annual yield. Net Asset Value (NAV) slightly decreased to $198.9 million ($9.18 per share) from $199.3 million ($9.20 per share) in Q2 2024. The portfolio consists primarily of first lien loans (80.0%) with investments in 94 portfolio companies totaling $474.3 million. The weighted average contractual and effective yields decreased to 11.0% from 11.9% in Q2, primarily due to declining base rates and an additional portfolio company placed on non-accrual status.
Monroe Capital (MRCC) ha riportato i risultati finanziari del terzo trimestre 2024, con un reddito da investimenti netto (NII) di 6,5 milioni di dollari, pari a 0,30 dollari per azione. L'azienda ha mantenuto il dividendo trimestrale di 0,25 dollari per azione, offrendo un rendimento annuo del 12,3%. Il valore netto degli attivi (NAV) è leggermente diminuito a 198,9 milioni di dollari (9,18 dollari per azione) rispetto ai 199,3 milioni di dollari (9,20 dollari per azione) del secondo trimestre 2024. Il portafoglio è composto principalmente da prestiti garantiti di primo grado (80,0%), con investimenti in 94 aziende del portafoglio per un totale di 474,3 milioni di dollari. I rendimenti contrattuali e effettivi medi ponderati sono diminuiti all'11,0% dall'11,9% del secondo trimestre, principalmente a causa del calo dei tassi base e della classificazione di un'ulteriore azienda del portafoglio in stato di non accrescimento.
Monroe Capital (MRCC) informó sus resultados financieros del tercer trimestre de 2024, con un ingreso neto de inversiones (NII) de 6,5 millones de dólares, o 0,30 dólares por acción. La empresa mantuvo su dividendo trimestral de 0,25 dólares por acción, ofreciendo un rendimiento anual del 12,3%. El valor neto de los activos (NAV) disminuyó ligeramente a 198,9 millones de dólares (9,18 dólares por acción) desde 199,3 millones de dólares (9,20 dólares por acción) en el segundo trimestre de 2024. El portafolio consiste principalmente en préstamos garantizados de primer gravamen (80,0%), con inversiones en 94 compañías del portafolio que totalizan 474,3 millones de dólares. Los rendimientos contractuales y efectivos promedio ponderados disminuyeron al 11,0% desde el 11,9% en el segundo trimestre, principalmente debido a la caída de las tasas base y una empresa adicional del portafolio clasificada como no acumulada.
몬로 캐피탈 (MRCC)는 2024년 3분기 재무 결과를 보고했으며, 순투자 수익(NII)은 650만 달러, 즉 주당 0.30달러입니다. 이 회사는 주당 0.25달러의 분기 배당금을 유지하며, 연간 수익률은 12.3%입니다. 순자산가치(NAV)는 2024년 2분기 1억 9930만 달러(주당 9.20달러)에서 1억 9890만 달러(주당 9.18달러)로 소폭 감소했습니다. 포트폴리오는 주로 첫 번째 채권 대출(80.0%)로 구성되어 있으며, 94개의 포트폴리오 회사에 총 4억 7430만 달러를 투자했습니다. 가중 평균 계약 및 유효 수익률은 2분기의 11.9%에서 11.0%로 감소했으며, 주요 원인은 기준 금리 하락과 비목적 수익 상태로 분류된 추가 포트폴리오 회사 때문입니다.
Monroe Capital (MRCC) a publié ses résultats financiers pour le troisième trimestre 2024, avec un revenu net d'investissement (NII) de 6,5 millions de dollars, soit 0,30 dollar par action. La société a maintenu son dividende trimestriel de 0,25 dollar par action, offrant un rendement annuel de 12,3%. La valeur nette des actifs (NAV) a légèrement diminué à 198,9 millions de dollars (9,18 dollars par action) contre 199,3 millions de dollars (9,20 dollars par action) au deuxième trimestre 2024. Le portefeuille se compose principalement de prêts garantis de premier niveau (80,0%), avec des investissements dans 94 entreprises de portefeuille totalisant 474,3 millions de dollars. Les rendements contractuels et effectifs moyens pondérés ont diminué à 11,0% contre 11,9% au deuxième trimestre, principalement en raison de la baisse des taux de base et d'une entreprise supplémentaire du portefeuille classée comme non accumulée.
Monroe Capital (MRCC) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Nettoinvestitionsertrag (NII) von 6,5 Millionen Dollar, oder 0,30 Dollar pro Aktie. Das Unternehmen hat seine vierteljährliche Dividende von 0,25 Dollar pro Aktie beibehalten, was einer jährlichen Rendite von 12,3% entspricht. Der Nettovermögenswert (NAV) ist leicht auf 198,9 Millionen Dollar (9,18 Dollar pro Aktie) von 199,3 Millionen Dollar (9,20 Dollar pro Aktie) im 2. Quartal 2024 gefallen. Das Portfolio besteht hauptsächlich aus vorrangigen Darlehen (80,0%) mit Investitionen in 94 Portfoliounternehmen in Höhe von insgesamt 474,3 Millionen Dollar. Die gewichteten durchschnittlichen vertraglichen und effektiven Erträge sanken von 11,9% im 2. Quartal auf 11,0%, was hauptsächlich auf sinkende Basiszinssätze und eine zusätzliche Portfoliounternehmen, die als nicht bezogen klassifiziert wurde, zurückzuführen ist.
- Maintained consistent quarterly dividend of $0.25 per share for 18th consecutive quarter
- High annual dividend yield of 12.3%
- Decreased debt-to-equity leverage from 1.54x to 1.50x
- Portfolio primarily consists of first lien loans (80.0%), indicating lower risk
- NAV decreased by 0.2% to $9.18 per share
- Portfolio yields declined from 11.9% to 11.0%
- Non-accrual investments increased to 3.1% of total portfolio fair value
- Net loss of $1.5 million due to unrealized mark-to-market losses
Insights
The Q3 2024 results show mixed performance for Monroe Capital
The portfolio's weighted average yields declined from
The leverage ratio improved from 1.54x to 1.50x, showing better risk management. The first lien loan concentration remains strong at
CHICAGO, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Monroe Capital Corporation (NASDAQ: MRCC) today announced its financial results for the third quarter ended September 30, 2024.
Except where the context suggests otherwise, the terms “Company,” “we,” “us,” and “our” refer to Monroe Capital Corporation (together with its subsidiaries).
Third Quarter 2024 Financial Highlights
- Net Investment Income ("NII") of
$6.5 million , or$0.30 per share - Adjusted Net Investment Income (a non-GAAP measure described below) of
$6.6 million , or$0.31 per share - Net increase in net assets resulting from operations of
$5.0 million , or$0.23 per share - Net Asset Value (“NAV”) of
$198.9 million , or$9.18 per share - Paid quarterly dividend of
$0.25 per share on September 30, 2024 - Current annual cash dividend yield to stockholders of approximately
12.3% (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 November 11, 2024.
Management Commentary
Adjusted Net Investment Income totaled
At quarter end, the Company's debt-to-equity leverage decreased from 1.54 times debt-to-equity at June 30, 2024 to 1.50 times debt-to-equity at September 30, 2024 as a result of paydowns of the revolving credit facility with proceeds from investment sales and paydowns during 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)
| September 30, 2024 | June 30, 2024 | |||||||
| Consolidated Statements of Assets and Liabilities data: | (unaudited) | |||||||
| Investments, at fair value | $ | 474,259 | $ | 485,804 | ||||
| Total assets | $ | 501,862 | $ | 512,113 | ||||
| Net assets | $ | 198,893 | $ | 199,344 | ||||
| Net asset value per share | $ | 9.18 | $ | 9.20 | ||||
| Three months ended | ||||||||
| September 30, 2024 | June 30, 2024 | |||||||
| Consolidated Statements of Operations data: | (unaudited) | |||||||
| Net investment income | $ | 6,481 | $ | 6,559 | ||||
| Adjusted net investment income(2) | $ | 6,617 | $ | 6,694 | ||||
| Net gain (loss) | $ | (1,515 | ) | $ | (3,301 | ) | ||
| Net increase (decrease) in net assets resulting from operations | $ | 4,966 | $ | 3,258 | ||||
| Per share data: | ||||||||
| Net investment income | $ | 0.30 | $ | 0.30 | ||||
| Adjusted net investment income(2) | $ | 0.31 | $ | 0.31 | ||||
| Net gain (loss) | $ | (0.07 | ) | $ | (0.15 | ) | ||
| Net increase (decrease) in net assets resulting from operations | $ | 0.23 | $ | 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 September 30, 2024 totaled
Total investment income for the quarter ended September 30, 2024 totaled
Total expenses for the quarter ended September 30, 2024 were
Net gain (loss) was
Net increase (decrease) in net assets resulting from operations was
Liquidity and Capital Resources
As of September 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 September 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 | ||||||||||||||||
| September 30, 2024 | June 30, 2024 | |||||||||||||||
| Amount | Per Share Amount | Amount | Per Share Amount | |||||||||||||
| (unaudited) | ||||||||||||||||
| Net investment income | $ | 6,481 | $ | 0.30 | $ | 6,559 | $ | 0.30 | ||||||||
| Net capital gains incentive fee | — | — | — | — | ||||||||||||
| Income taxes, including excise taxes | 136 | 0.01 | 135 | 0.01 | ||||||||||||
| Adjusted Net Investment Income | $ | 6,617 | $ | 0.31 | $ | 6,694 | $ | 0.31 | ||||||||
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.
Third Quarter 2024 Financial Results Conference Call
The Company will host a webcast and conference call to discuss these operating and financial results on Wednesday, November 13, 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 # 5769748.
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 September 30, 2024 to be filed with the SEC (www.sec.gov) on Tuesday, November 12, 2024.
| MONROE CAPITAL CORPORATION | ||||||||
| CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | ||||||||
| (in thousands, except per share data) | ||||||||
| September 30, 2024 | June 30, 2024 | |||||||
| (unaudited) | ||||||||
| Assets | ||||||||
| Investments, at fair value: | ||||||||
| Non-controlled/non-affiliate company investments | $ | 355,273 | $ | 368,238 | ||||
| Non-controlled affiliate company investments | 86,089 | 84,468 | ||||||
| Controlled affiliate company investments | 32,897 | 33,098 | ||||||
| Total investments, at fair value (amortized cost of: | 474,259 | 485,804 | ||||||
| Cash and cash equivalents | 4,070 | 3,876 | ||||||
| Interest and dividend receivable | 22,910 | 21,661 | ||||||
| Other assets | 623 | 772 | ||||||
| Total assets | $ | 501,862 | $ | 512,113 | ||||
| Liabilities | ||||||||
| Debt | $ | 299,000 | $ | 307,800 | ||||
| Less: Unamortized debt issuance costs | (2,254 | ) | (2,581 | ) | ||||
| Total debt, less unamortized debt issuance costs | 296,746 | 305,219 | ||||||
| Interest payable | 1,351 | 2,972 | ||||||
| Base management fees payable | 2,006 | 2,037 | ||||||
| Incentive fees payable | 730 | 351 | ||||||
| Accounts payable and accrued expenses | 2,090 | 2,190 | ||||||
| Directors' fees payable | 46 | — | ||||||
| Total liabilities | 302,969 | 312,769 | ||||||
| Net Assets | ||||||||
| Common stock, | $ | 22 | $ | 22 | ||||
| Capital in excess of par value | 298,127 | 298,127 | ||||||
| Accumulated undistributed (overdistributed) earnings | (99,256 | ) | (98,805 | ) | ||||
| Total net assets | $ | 198,893 | $ | 199,344 | ||||
| Total liabilities and total net assets | $ | 501,862 | $ | 512,113 | ||||
| Net asset value per share | $ | 9.18 | $ | 9.20 | ||||
| MONROE CAPITAL CORPORATION | ||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (in thousands, except per share data) | ||||||||
| Three months ended | ||||||||
| September 30, 2024 | June 30, 2024 | |||||||
| (unaudited) | ||||||||
| Investment income: | ||||||||
| Non-controlled/non-affiliate company investments: | ||||||||
| Interest income | $ | 10,408 | $ | 10,973 | ||||
| Payment-in-kind interest income | 919 | 771 | ||||||
| Dividend income | 114 | 62 | ||||||
| Other income | 694 | 265 | ||||||
| Total investment income from non-controlled/non-affiliate company investments | 12,135 | 12,071 | ||||||
| Non-controlled affiliate company investments: | ||||||||
| Interest income | 1,202 | 1,273 | ||||||
| Payment-in-kind interest income | 1,402 | 1,328 | ||||||
| Dividend income | 56 | 55 | ||||||
| Total investment income from non-controlled affiliate company investments | 2,660 | 2,656 | ||||||
| Controlled affiliate company investments: | ||||||||
| Dividend income | 900 | 900 | ||||||
| Total investment income from controlled affiliate company investments | 900 | 900 | ||||||
| Total investment income | 15,695 | 15,627 | ||||||
| Operating expenses: | ||||||||
| Interest and other debt financing expenses | 5,517 | 5,780 | ||||||
| Base management fees | 2,006 | 2,037 | ||||||
| Incentive fees | 730 | 351 | ||||||
| Professional fees | 239 | 199 | ||||||
| Administrative service fees | 270 | 250 | ||||||
| General and administrative expenses | 270 | 243 | ||||||
| Directors' fees | 46 | 73 | ||||||
| Total operating expenses | 9,078 | 8,933 | ||||||
| Net investment income before income taxes | 6,617 | 6,694 | ||||||
| Income taxes, including excise taxes | 136 | 135 | ||||||
| Net investment income | 6,481 | 6,559 | ||||||
| Net gain (loss): | ||||||||
| Net realized gain (loss): | ||||||||
| Non-controlled/non-affiliate company investments | 638 | 506 | ||||||
| Net realized gain (loss) | 638 | 506 | ||||||
| Net change in unrealized gain (loss): | ||||||||
| Non-controlled/non-affiliate company investments | (2,743 | ) | (2,985 | ) | ||||
| Non-controlled affiliate company investments | 771 | (930 | ) | |||||
| Controlled affiliate company investments | (201 | ) | 108 | |||||
| Foreign currency and other transactions | 20 | — | ||||||
| Net change in unrealized gain (loss) | (2,153 | ) | (3,807 | ) | ||||
| Net gain (loss) | (1,515 | ) | (3,301 | ) | ||||
| Net increase (decrease) in net assets resulting from operations | $ | 4,966 | $ | 3,258 | ||||
| Per common share data: | ||||||||
| Net investment income per share – basic and diluted | $ | 0.30 | $ | 0.30 | ||||
| Net increase (decrease) in net assets resulting from operations per share – basic and diluted | $ | 0.23 | $ | 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 | ||||||||
| September 30, 2024 | June 30, 2024 | |||||||
| (unaudited) | ||||||||
| Interest income | $ | 11,303 | $ | 11,850 | ||||
| Payment-in-kind interest income | 2,321 | 2,099 | ||||||
| Dividend income | 1,070 | 1,017 | ||||||
| Other income | 694 | 265 | ||||||
| Prepayment gain (loss) | 109 | 145 | ||||||
| Accretion of discounts and amortization of premiums | 198 | 251 | ||||||
| Total investment income | $ | 15,695 | $ | 15,627 | ||||
The composition of the Company’s interest expense and other debt financing expenses was as follows (in thousands):
| Three months ended | ||||||||
| September 30, 2024 | June 30, 2024 | |||||||
| (unaudited) | ||||||||
| Interest expense – revolving credit facility | $ | 3,630 | $ | 3,898 | ||||
| Interest expense – 2026 Notes | 1,555 | 1,555 | ||||||
| Amortization of debt issuance costs | 332 | 327 | ||||||
| Total interest and other debt financing expenses | $ | 5,517 | $ | 5,780 | ||||
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 Inc’s 2024 Founder-Friendly Investors List; 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; 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 was Monroe Capital 's (MRCC) Net Investment Income for Q3 2024?
What is MRCC's current dividend yield as of Q3 2024?
How did MRCC's Net Asset Value (NAV) change in Q3 2024?
What percentage of MRCC's portfolio was on non-accrual status in Q3 2024?
