PennantPark Floating Rate Capital Ltd. Announces Financial Results for the Fourth Quarter and Fiscal Year Ended September 30, 2024
PennantPark Floating Rate Capital (NYSE: PFLT) reported financial results for Q4 and fiscal year 2024. The investment portfolio totaled $1,983.5 million, with net assets of $877.3 million. Net investment income for Q4 was $18.0 million ($0.24 per share) and $77.7 million ($1.18 per share) for the full year. The portfolio consisted of 88% first lien secured debt with a weighted average yield of 11.5%. The company declared distributions of $0.31 per share for Q4 and $1.23 for the year. Two portfolio companies were on non-accrual, representing 0.4% of the portfolio on a cost basis.
PennantPark Floating Rate Capital (NYSE: PFLT) ha riportato i risultati finanziari per il quarto trimestre e l'anno fiscale 2024. Il portafoglio di investimenti ha totalizzato $1.983,5 milioni, con un patrimonio netto di $877,3 milioni. Il reddito netto da investimenti per il quarto trimestre è stato di $18,0 milioni ($0,24 per azione) e di $77,7 milioni ($1,18 per azione) per l'intero anno. Il portafoglio era composto per l'88% da debito garantito di primo grado con un rendimento medio ponderato dell'11,5%. La società ha dichiarato distribuzioni di $0,31 per azione per il quarto trimestre e di $1,23 per l'anno. Due società del portafoglio erano in non-accrual, rappresentando lo 0,4% del portafoglio in base ai costi.
PennantPark Floating Rate Capital (NYSE: PFLT) reportó los resultados financieros para el cuarto trimestre y el año fiscal 2024. La cartera de inversiones totalizó $1,983.5 millones, con activos netos de $877.3 millones. Los ingresos netos por inversiones para el cuarto trimestre fueron de $18.0 millones ($0.24 por acción) y de $77.7 millones ($1.18 por acción) para el año completo. La cartera consistía en un 88% de deuda asegurada de primer grado con un rendimiento promedio ponderado del 11.5%. La empresa declaró distribuciones de $0.31 por acción para el cuarto trimestre y de $1.23 para el año. Dos empresas de la cartera estaban en no-accrual, representando el 0.4% de la cartera en base a costos.
PennantPark Floating Rate Capital (NYSE: PFLT)는 2024년 4분기 및 회계 연도의 재무 결과를 보고했습니다. 투자 포트폴리오는 총 $1,983.5백만으로, 순자산은 $877.3백만입니다. 4분기 순 투자 수익은 $18.0백만($0.24 per 주)이며, 연간으로는 $77.7백만($1.18 per 주)입니다. 포트폴리오는 88%가 첫 번째 담보 대출로 구성되어 있으며, 가중 평균 수익률은 11.5%입니다. 회사는 4분기 주당 $0.31, 연간 $1.23의 배당금을 선언했습니다. 두 개의 포트폴리오 회사는 미수취로, 포트폴리오의 0.4%를 비용 기준으로 차지하고 있습니다.
PennantPark Floating Rate Capital (NYSE: PFLT) a publié les résultats financiers pour le quatrième trimestre et l'exercice 2024. Le portefeuille d'investissement a totalisé $1,983.5 millions, avec des actifs nets de $877.3 millions. Le revenu net d'investissement pour le quatrième trimestre était de $18.0 millions ($0.24 par action) et de $77.7 millions ($1.18 par action) pour l'année entière. Le portefeuille était composé de 88% de dettes garanties de premier rang avec un rendement moyen pondéré de 11.5%. La société a déclaré des distributions de $0.31 par action pour le quatrième trimestre et de $1.23 pour l'année. Deux sociétés du portefeuille étaient en non-accrual, représentant 0.4% du portefeuille sur la base des coûts.
PennantPark Floating Rate Capital (NYSE: PFLT) hat die finanziellen Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024 veröffentlicht. Das Investitionsportfolio belief sich auf insgesamt $1.983,5 Millionen, mit Nett Vermögenswerten von $877,3 Millionen. Das Nettoinvestitionseinkommen für das vierte Quartal betrug $18,0 Millionen ($0,24 pro Aktie) und $77,7 Millionen ($1,18 pro Aktie) für das gesamte Jahr. Das Portfolio bestand zu 88% aus gesicherten Ersthypothekenschulden mit einer gewichteten durchschnittlichen Rendite von 11,5%. Das Unternehmen erklärte Ausschüttungen von $0,31 pro Aktie für das vierte Quartal und $1,23 für das Jahr. Zwei Portfoliounternehmen waren in der Non-Accrual-Buchung, was 0,4% des Portfolios auf Kostenbasis darstellt.
- Investment portfolio grew significantly to $1,983.5 million from $1,067.2 million year-over-year
- Net investment income increased to $77.7 million for FY2024 from $67.5 million in FY2023
- Low non-accrual rate of 0.4% of portfolio at cost
- Increased annual distributions to $1.23 per share from $1.19 in previous year
- Quarterly net investment income per share decreased to $0.24 from $0.32 year-over-year
- Weighted average yield on debt investments declined to 11.5% from 12.6% year-over-year
- Annualized weighted average cost of debt increased to 8.5% from 6.2% year-over-year
Insights
The Q4 and FY2024 results show significant portfolio growth and stable performance. The investment portfolio increased 85.9% to
Key positives include portfolio quality with only
However, investors should note the increased cost of debt at
The credit profile remains robust despite significant portfolio expansion. First lien secured debt comprises
The weighted average yield decline to
MIAMI, Nov. 25, 2024 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) (the "Company") announced today financial results for the fourth quarter and fiscal year ended September 30, 2024.
HIGHLIGHTS
Year ended September 30, 2024
($ in millions, except per share amounts)
| Assets and Liabilities: | ||||||||
| Investment portfolio (1) | $ | 1,983.5 | ||||||
| Net assets | $ | 877.3 | ||||||
| GAAP net asset value per share | $ | 11.31 | ||||||
| Quarterly decrease in GAAP net asset value per share | (0.3 | )% | ||||||
| Adjusted net asset value per share (2) | $ | 11.31 | ||||||
| Quarterly decrease in adjusted net asset value per share (2) | (0.3 | )% | ||||||
| Credit Facility | $ | 443.9 | ||||||
| 2036 Asset-Backed Debt | $ | 284.1 | ||||||
| 2036-R Asset Backed Debt | $ | 265.2 | ||||||
| 2026 Notes | $ | 183.8 | ||||||
| Regulatory Debt to Equity | 1.35x | |||||||
| Weighted average yield on debt investments at quarter-end | 11.5 | % | ||||||
| Quarter Ended | Year Ended | |||||||
| September 30, 2024 | September 30, 2024 | |||||||
| Operating Results: | ||||||||
| Net investment income | $ | 18.0 | $ | 77.7 | ||||
| Net investment income per share (GAAP) | $ | 0.24 | $ | 1.18 | ||||
| Core net investment income per share (3) | $ | 0.32 | $ | 1.27 | ||||
| Distributions declared per share | $ | 0.31 | $ | 1.23 | ||||
| Portfolio Activity: | ||||||||
| Purchases of investments | $ | 445.8 | $ | 1,407.5 | ||||
| Sales and repayments of investments | $ | 127.9 | $ | 514.1 | ||||
| PSSL Portfolio data: | ||||||||
| PSSL investment portfolio | $ | 913.3 | $ | 913.3 | ||||
| Purchases of investments | $ | 45.8 | $ | 286.2 | ||||
| Sales and repayments of investments | $ | 35.9 | $ | 160.1 | ||||
- Includes investments in PennantPark Senior Secured Loan Fund I LLC, or PSSL, an unconsolidated joint venture, totaling
$294.2 million , at fair value. - This is a non-GAAP financial measure. The Company believes that this number provides useful information to investors and management because it reflects the Company’s financial performance including the impact of the unrealized amounts on the Credit Facility. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
- Core net investment income (“Core NII”) is a non-GAAP financial measure. The Company believes that Core NII provides useful information to investors and management because it reflects the Company's financial performance excluding one-time or non-recurring investment income and expenses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. For the quarter ended September 30, 2024, Core NII excluded: i)
$8.6m of debt amendment and issuance costs, and included ii)$2.8m of incentive fee expense.
CONFERENCE CALL AT 9:00 A.M. ET ON NOVEMBER 26, 2024
The Company will also host a conference call at 9:00 a.m. (Eastern Time) on Tuesday, November 26, 2024 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (888) 394-8218 approximately 5-10 minutes prior to the call. International callers should dial (646) 828-8193. All callers should reference conference ID #3226260 or PennantPark Floating Rate Capital Ltd. An archived replay will also be available on a webcast link located on the Quarterly Earnings page in the Investor section of PennantPark’s website.
PORTFOLIO AND INVESTMENT ACTIVITY
“We are pleased to have another quarter of solid performance” said Art Penn, Chairman and CEO. “We believe we are continuing to invest in a strong vintage of new loans in the core middle market with low leverage, meaningful covenants, and attractive spreads .”
As of September 30, 2024, our portfolio totaled
As of September 30, 2023, our portfolio totaled
For the three months ended September 30, 2024, we invested
For the year ended September 30, 2024, we invested
For the year ended September 30, 2023, we invested
PennantPark Senior Secured Loan Fund I LLC
As of September 30, 2024, PSSL’s portfolio totaled
For the three months ended September 30, 2024, PSSL invested
For the year ended September 30, 2024, PSSL invested
For the year ended September 30, 2023, PSSL invested
RESULTS OF OPERATIONS
Set forth below are the results of operations for the three months and year ended September 30, 2024 and 2023.
Investment Income
Investment income for the three months and year ended September 30, 2024, was
Investment income for the three months and year ended September 30, 2023 was
Expenses
Expenses for the three months and year ended September 30, 2024, totaled
Expenses for the three months and year ended September 30, 2023 totaled
Net Investment Income
Net investment income for the three months and year ended September 30, 2024 totaled
Net Realized Gains or Losses
Net realized gain (losses) for the three months and year ended September 30, 2024 totaled
Unrealized Appreciation or Depreciation on Investments, the Credit Facility and the 2023 Notes
For the three months and year ended September 30, 2024, we reported net change in unrealized appreciation (depreciation) on investments of
For the three months and year ended September 30, 2024, our Credit Facility and 2023 Notes had a net change in unrealized (appreciation) depreciation totaled zero, respectively. For the three months and year ended September 30, 2023, the Credit Facility or our Prior Credit Facility, as applicable, and 2023 Notes had a net change in unrealized (appreciation) depreciation of
Net Change in Net Assets Resulting from Operations
For the three months and year ended September 30, 2024, net change in net assets resulting from operations totaled
LIQUIDITY AND CAPITAL RESOURCES
Our liquidity and capital resources are derived primarily from proceeds of securities offerings, debt capital and cash flows from operations, including investment sales and repayments, and income earned. Our primary use of funds from operations includes investments in portfolio companies and payments of fees and other operating expenses we incur. We have used, and expect to continue to use, our debt capital, proceeds from the rotation of our portfolio and proceeds from public and private offerings of securities to finance our investment objectives.
The annualized weighted average cost of debt for the years ended September 30, 2024 and 2023, inclusive of the fee on the undrawn commitment on the Credit Facility or Prior Credit Facility, as applicable, amendment costs and debt issuance costs, was
Funding I’s multi-currency Credit Facility with the Lenders upsized during the year increasing the facility to
As of September 30, 2024 and 2023, we had cash equivalents of
Our operating activities used cash of
Our operating activities provided cash of
DISTRIBUTIONS
During the three months and year ended September 30, 2024, we declared distributions of
RECENT DEVELOPMENTS
Subsequent to the quarter end, we remained active and invested over
AVAILABLE INFORMATION
The Company makes available on its website its Annual Report on Form 10-K filed with the SEC, and stockholders may find such report on its website at www.pennantpark.com.
| PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (in thousands, except per share data) | ||||||||
| September 30, 2024 | September 30, 2023 | |||||||
| Assets | ||||||||
| Investments at fair value | ||||||||
| Non-controlled, non-affiliated investments (cost— | $ | 1,632,269 | $ | 772,178 | ||||
| Controlled, affiliated investments (cost— | 351,235 | 294,996 | ||||||
| Total of investments (cost— | 1,983,504 | 1,067,174 | ||||||
| Cash and cash equivalents (cost— | 112,050 | 100,555 | ||||||
| Interest receivable | 12,167 | 10,423 | ||||||
| Distributions receivable | 635 | 565 | ||||||
| Due from affiliate | 291 | — | ||||||
| Prepaid expenses and other assets | 198 | 894 | ||||||
| Total assets | 2,108,845 | 1,179,611 | ||||||
| Liabilities | ||||||||
| Credit Facility payable, at fair value (cost— | 443,880 | 9,400 | ||||||
| 2023 Notes payable, at fair value (par— | — | 76,219 | ||||||
| 2026 Notes payable, net (par— | 183,832 | 183,054 | ||||||
| 2031 Asset-Backed Debt, net (par— | — | 226,759 | ||||||
| 2036 Asset-Backed Debt, net (par— | 284,086 | — | ||||||
| 2036-R Asset-Backed Debt, net (par- | 265,235 | — | ||||||
| Payable for investments purchased | 20,363 | 4,905 | ||||||
| Interest payable on debt | 14,645 | 8,615 | ||||||
| Distributions payable | 7,834 | 6,020 | ||||||
| Base management fee payable | 4,588 | 2,759 | ||||||
| Incentive fee payable | 3,189 | 4,628 | ||||||
| Accounts payable and accrued expenses | 2,187 | 1,287 | ||||||
| Deferred tax liability | 1,712 | 1,794 | ||||||
| Due to Affiliates | — | 566 | ||||||
| Total liabilities | 1,231,551 | 526,006 | ||||||
| Net assets | ||||||||
| Common stock, 77,579,896 and 58,734,702 shares issued and outstanding, respectively Par value | 78 | 59 | ||||||
| Paid-in capital in excess of par value | 976,744 | 765,187 | ||||||
| Accumulated deficit | (99,528 | ) | (111,641 | ) | ||||
| Total net assets | $ | 877,294 | $ | 653,605 | ||||
| Total liabilities and net assets | $ | 2,108,845 | $ | 1,179,611 | ||||
| Net asset value per share | $ | 11.31 | $ | 11.13 | ||||
| PENNANTPARK FLOATING RATE CAPITAL LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) | ||||||||||||||||
| Three Months Ended September 30, | Year Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Investment income: | ||||||||||||||||
| From non-controlled, non-affiliated investments: | ||||||||||||||||
| Interest | $ | 39,704 | $ | 23,209 | $ | 128,397 | $ | 88,649 | ||||||||
| Dividend | 501 | 677 | 2,354 | 6,279 | ||||||||||||
| Other income | 1,884 | 439 | 5,506 | 1,899 | ||||||||||||
| From controlled, affiliated investments: | ||||||||||||||||
| Interest | 9,498 | 8,346 | 35,093 | 31,047 | ||||||||||||
| Dividend | 3,937 | 3,063 | 14,875 | 11,463 | ||||||||||||
| Other Income | — | — | 130 | — | ||||||||||||
| Total investment income | 55,524 | 35,734 | 186,355 | 139,337 | ||||||||||||
| Expenses: | ||||||||||||||||
| Base management fee | 4,588 | 2,759 | 14,871 | 11,402 | ||||||||||||
| Incentive Fee | 3,189 | 4,628 | 18,125 | 16,873 | ||||||||||||
| Interest and expenses on debt | 19,299 | 8,571 | 59,221 | 38,166 | ||||||||||||
| Administrative services expenses | 500 | 235 | 2,161 | 999 | ||||||||||||
| Other general and administrative expenses | 1,200 | 877 | 4,493 | 3,422 | ||||||||||||
| Expenses before amendment costs, debt issuance costs and provision for taxes | 28,776 | 17,070 | 98,871 | 70,862 | ||||||||||||
| Credit Facility amendment costs and debt issuance costs | 8,549 | — | 8,643 | — | ||||||||||||
| Provision for taxes | 225 | 150 | 1,120 | 984 | ||||||||||||
| Total Net expenses | 37,550 | 17,220 | 108,634 | 71,846 | ||||||||||||
| Net investment income | 17,974 | 18,514 | 77,721 | 67,491 | ||||||||||||
| Realized and unrealized gain (loss) on investments and debt: | ||||||||||||||||
| Net realized gain (loss) on investments and debt: | ||||||||||||||||
| Non-controlled, non-affiliated investments | (346 | ) | (2,372 | ) | 222 | (15,892 | ) | |||||||||
| Non-controlled and controlled, affiliated investments | — | — | — | — | ||||||||||||
| Debt extinguishment | (383 | ) | — | (383 | ) | — | ||||||||||
| Provision for taxes on realized gain on investments | (45 | ) | 37 | (45 | ) | (263 | ) | |||||||||
| Net realized gain (loss) on investments and debt | (774 | ) | (2,335 | ) | (206 | ) | (16,155 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Non-controlled, non-affiliated investments | (1,781 | ) | 5,497 | 5,662 | (6,707 | ) | ||||||||||
| Controlled and non-controlled, affiliated investments | 6,087 | 3,967 | 8,606 | (5,858 | ) | |||||||||||
| Provision for taxes on unrealized appreciation (depreciation) on investments | (148 | ) | (155 | ) | 82 | 2,774 | ||||||||||
| Debt depreciation (appreciation) | (19 | ) | 2,558 | (26 | ) | (2,284 | ) | |||||||||
| Net change in unrealized appreciation (depreciation) on investments and debt | 4,139 | 11,867 | 14,324 | (12,075 | ) | |||||||||||
| Net realized and unrealized gain (loss) from investments and debt | 3,365 | 9,532 | 14,118 | (28,230 | ) | |||||||||||
| Net increase (decrease) in net assets resulting from operations | 21,340 | 28,046 | $ | 91,839 | $ | 39,261 | ||||||||||
| Net increase (decrease) in net assets resulting from operations per common share | $ | 0.29 | $ | 0.48 | $ | 1.40 | $ | 0.77 | ||||||||
| Net investment income per common share | $ | 0.24 | $ | 0.32 | $ | 1.18 | $ | 1.33 | ||||||||
ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.
PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a leading middle-market credit platform, managing
FORWARD-LOOKING STATEMENTS AND OTHER
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports we file under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results, and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Floating Rate Capital Ltd. undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.
We may use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates” and similar expressions to identify forward-looking statements. 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.
The information contained herein is based on current tax laws, which may change in the future. The Company cannot be held responsible for any direct or incidental loss resulting from applying any of the information provided in this publication or from any other source mentioned. The information provided in this material does not constitute any specific legal, tax or accounting advice. Please consult with qualified professionals for this type of advice.
| CONTACT: | Richard T. Allorto, Jr. |
| PennantPark Floating Rate Capital Ltd. | |
| (212) 905-1000 | |
| www.pennantpark.com |
FAQ
What was PFLT's net investment income for Q4 2024?
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What distributions did PFLT declare for fiscal year 2024?
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