PennantPark Investment Corporation Announces Financial Results for the Fourth Quarter and Fiscal Year Ended September 30, 2024 and Upsize of Joint Venture (Amended)
PennantPark Investment (NYSE: PNNT) reported financial results for Q4 and fiscal year 2024. The company's investment portfolio totaled $1,328.1 million, with net assets of $493.9 million. Net investment income for the year was $60.1 million ($0.92 per share). The portfolio consisted of 50% first lien secured debt, 7% U.S. Government Securities, 5% second lien secured debt, 14% subordinated debt, and 23% preferred and common equity. The weighted average yield on debt investments was 12.3%. The company declared distributions of $0.88 per share for the year. PSLF increased its investment capacity to over $1.5 billion through additional capital commitments and an expanded credit facility.
PennantPark Investment (NYSE: PNNT) ha riportato i risultati finanziari per il quarto trimestre e l'anno fiscale 2024. Il portafoglio d'investimenti della società ha totalizzato $1.328,1 milioni, con attivi netti di $493,9 milioni. Il reddito netto da investimenti per l'anno è stato di $60,1 milioni ($0,92 per azione). Il portafoglio era composto dal 50% di debito garantito da primo grado, 7% di titoli del governo degli Stati Uniti, 5% di debito garantito di secondo grado, 14% di debito subordinato e 23% di azioni privilegiate e comuni. Il rendimento medio ponderato sugli investimenti in debito è stato del 12,3%. L'azienda ha dichiarato distribuzioni di $0,88 per azione per l'anno. PSLF ha aumentato la propria capacità d'investimento a oltre $1,5 miliardi attraverso impegni di capitale aggiuntivi e un credito ampliato.
PennantPark Investment (NYSE: PNNT) informó los resultados financieros del cuarto trimestre y del año fiscal 2024. El portafolio de inversiones de la compañía totalizó $1,328.1 millones, con activos netos de $493.9 millones. Los ingresos netos de inversión para el año fueron de $60.1 millones ($0.92 por acción). El portafolio consistió en un 50% de deuda garantizada de primer grado, 7% de valores del gobierno de EE. UU., 5% de deuda garantizada de segundo grado, 14% de deuda subordinada y 23% de acciones preferentes y comunes. El rendimiento promedio ponderado de las inversiones en deuda fue del 12.3%. La compañía declaró distribuciones de $0.88 por acción para el año. PSLF aumentó su capacidad de inversión a más de $1.5 mil millones a través de compromisos de capital adicionales y una línea de crédito ampliada.
PennantPark Investment (NYSE: PNNT)는 2024 회계연도 4분기 및 전체 재무 결과를 보고했습니다. 회사의 투자 포트폴리오는 총 $1,328.1 백만이며, 순자산은 $493.9 백만입니다. 연간 순 투자 수익은 $60.1 백만($0.92 주당)이었습니다. 포트폴리오는 50%의 1순위 담보 채무, 7%의 미국 정부 증권, 5%의 2순위 담보 채무, 14%의 후순위 채무, 23%의 우선주 및 보통주로 구성되었습니다. 채무 투자에 대한 가중 평균 수익률은 12.3%였습니다. 회사는 연간 주당 $0.88의 배당금을 선언했습니다. PSLF는 추가 자본 약속과 확대된 신용 시설을 통해 투자 용량을 15억 달러 이상으로 증가시켰습니다.
PennantPark Investment (NYSE: PNNT) a annoncé les résultats financiers du quatrième trimestre et de l'exercice 2024. Le portefeuille d'investissements de la société s'élevait à $1,328.1 millions, avec des actifs nets de $493.9 millions. Le revenu net d'investissement pour l'année était de $60.1 millions ($0.92 par action). Le portefeuille était constitué de 50% de dettes garanties de premier rang, 7% de valeurs du gouvernement américain, 5% de dettes garanties de second rang, 14% de dettes subordonnées et 23% d'actions privilégiées et ordinaires. Le rendement moyen pondéré des investissements en dettes était de 12,3%. La société a déclaré des distributions de $0,88 par action pour l'année. PSLF a augmenté sa capacité d'investissement à plus de $1,5 milliard grâce à des engagements de capital supplémentaires et à une facilité de crédit étendue.
PennantPark Investment (NYSE: PNNT) berichtete über die finanziellen Ergebnisse für das vierte Quartal und das Geschäftsjahr 2024. Das Anlageportfolio des Unternehmens belief sich auf insgesamt $1.328,1 Millionen, mit Nettovermögen von $493,9 Millionen. Das Nettoinvestitionseinkommen für das Jahr betrug $60,1 Millionen ($0,92 pro Aktie). Das Portfolio bestand aus 50 % gesicherten Krediten erster Rang, 7 % US-Staatsanleihen, 5 % gesicherten Krediten zweiter Rang, 14 % nachrangigen Schulden und 23 % Vorzugs- und Stammaktien. Die gewichtete durchschnittliche Rendite der Schuldenanlagen betrug 12,3 %. Das Unternehmen erklärte Ausschüttungen von $0,88 pro Aktie für das Jahr. PSLF erhöhte seine Investitionskapazität auf über $1,5 Milliarden durch zusätzliche Kapitalzusagen und eine erweiterte Kreditfazilität.
- Net investment income of $60.1 million ($0.92 per share) for FY2024
- Portfolio growth to $1,328.1 million from $1,101.7 million year-over-year
- Strong weighted average yield of 12.3% on debt investments
- PSLF expansion with increased investment capacity to over $1.5 billion
- Quarterly increase in NAV per share of 0.5%
- Increase in portfolio companies on non-accrual to 4.1% of cost (up from 1.2%)
- Decrease in investment income year-over-year from $145.4M to $143.8M
- Higher expenses due to increased debt-related interest costs
- Decline in net investment income per share from $1.00 to $0.92 year-over-year
Insights
The Q4 and FY2024 results show mixed performance for PennantPark Investment Net investment income decreased to
- Total investment portfolio increased to
$1.33 billion from$1.10 billion year-over-year - Weighted average yield on debt investments remained strong at
12.3% - Net asset value per share showed stability with a quarterly increase of
0.5%
The significant upsize of the PSLF joint venture, with
The credit profile shows some concerning trends despite overall portfolio growth. Key risk indicators include:
- Regulatory debt-to-equity ratio at 1.58x indicates elevated leverage
- Non-accrual investments increased to two portfolio companies, representing
4.1% of cost compared to1.2% last year - Variable-rate exposure remains high at
94% of interest-bearing portfolio
While the portfolio maintains diversification across 152 companies with an average investment size of
Explanatory Note:
PennantPark Investment Corporation (the “Company”) is updating the press release issued by the Company on November 25, 2024 to correct certain information contained therein. The updated release reads:
MIAMI, Nov. 25, 2024 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (NYSE: PNNT) (the "Company") announced today financial results for the fourth quarter and fiscal year ended September 30, 2024.
HIGHLIGHTS
Year ended September 30, 2024
($ in millions, except per share amounts)
| Assets and Liabilities: | |||||||
| Investment portfolio (1) | $ | 1,328.1 | |||||
| Net assets | $ | 493.9 | |||||
| Adjusted net asset value per share (2) | $ | 7.56 | |||||
| Quarterly increase in adjusted net asset value per share (2) | 0.5 | % | |||||
| GAAP net asset value per share | $ | 7.56 | |||||
| Quarterly increase in GAAP net asset value per share | 0.5 | % | |||||
| Credit Facility | $ | 460.4 | |||||
| 2026 Notes | $ | 148.6 | |||||
| 2026-2 Notes | $ | 163.1 | |||||
| Regulatory Debt to Equity | 1.58x | ||||||
| Weighted average yield on debt investments at quarter-end | 12.3 | % | |||||
| Quarter Ended | Year Ended | ||||||
| September 30, 2024 | September 30, 2024 | ||||||
| Operating Results: | |||||||
| Net investment income | $ | 14.4 | $ | 60.1 | |||
| Net investment income per share | $ | 0.22 | $ | 0.92 | |||
| Core net investment income per share (3) | $ | 0.22 | $ | 0.89 | |||
| Distributions declared per share | $ | 0.24 | $ | 0.88 | |||
| Portfolio Activity: | |||||||
| Purchases of investments | $ | 291.6 | $ | 1,043.6 | |||
| Sales and repayments of investments | $ | 235.2 | $ | 824.6 | |||
| PSLF Portfolio data: | |||||||
| PSLF investment portfolio | $ | 1,031.2 | $ | 1,031.2 | |||
| Purchases of investments | $ | 145.9 | $ | 396.1 | |||
| Sales and repayments of investments | $ | 39.1 | $ | 172.9 | |||
- Includes investments in PennantPark Senior Loan Fund, LLC ("PSLF"), an unconsolidated joint venture, totaling
$183.8 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 excluding the impact of unrealized gain on our multi-currency, senior secured revolving credit facility with Truist Bank, as amended, 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 year ended September 30, 2024, Core NII excluded: i)
$2.5 million of PSLF special dividend income, and ii)$0.4 million of incentive fee expense offset.
CONFERENCE CALL AT 12:00 P.M. EST ON NOVEMBER 26, 2024
PennantPark Investment Corporation (“we,” “our,” “us” or the “Company”) will also host a conference call at 12:00 p.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 #3424889 or PennantPark Investment Corporation. 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 announce another quarter of solid performance from both an NAV and Net Investment Income perspective,” said Arthur Penn, Chairman and CEO. “Our earnings stream continues to be robust due to strong credit performance and the excellent returns generated by our PSLF joint venture."
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 three months ended September 30, 2023, we invested
PennantPark Senior Loan Fund, LLC
PNNT has agreed to invest an additional
As of September 30, 2024, PSLF’s portfolio totaled
As of September 30, 2023, PSLF’s portfolio totaled
For the three months ended September 30, 2024, PSLF invested
For the three months ended September 30, 2023, PSLF invested
RESULTS OF OPERATIONS
Set forth below are the results of operations for the three months ended and years ended September 30, 2024 and 2023.
Investment Income
For the three months and year ended September 30, 2024, investment income was
Expenses
For the three months and year ended September 30, 2024, expenses totaled
Net Investment Income
For the three months and year ended September 30, 2024, net investment income totaled
Net Realized Gains or Losses
For the three months and year ended September 30, 2024, net realized gains (losses) totaled
Unrealized Appreciation or Depreciation on Investments and Debt
For the three months ended and year ended September 30, 2024, net change in unrealized appreciation (depreciation) on investments was
For the three months and year ended September 30, 2024, our Credit Facility 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 increase (decrease) 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 interest expense, 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.
As of September 30, 2024 and 2023, we had
As of September 30, 2024 and 2023, we had cash and cash equivalents of
For the year ended September 30, 2024, our operating activities used cash of
For the year ended September 30, 2023, our operating activities provided cash of
DISTRIBUTIONS
During the three months and year ended September 30, 2024, we declared distributions of
AVAILABLE INFORMATION
The Company makes available on its website its annual report on Form 10-K filed with the SEC and stockholders may find the report on our website at www.pennantpark.com.
| PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except share data) | ||||||||
| September 30, 2024 | September 30, 2023 | |||||||
| Assets | ||||||||
| Investments at fair value | ||||||||
| Non-controlled, non-affiliated investments (amortized cost— | $ | 910,323 | $ | 830,808 | ||||
| Non-controlled, affiliated investments (amortized cost— | 33,423 | 54,771 | ||||||
| Controlled, affiliated investments (amortized cost— | 384,304 | 216,068 | ||||||
| Total investments (amortized cost— | 1,328,050 | 1,101,647 | ||||||
| Cash and cash equivalents (cost— | 49,861 | 38,775 | ||||||
| Interest receivable | 5,261 | 6,820 | ||||||
| Distribution receivable | 5,417 | 5,079 | ||||||
| Due from affiliates | 228 | — | ||||||
| Prepaid expenses and other assets | 269 | 4,656 | ||||||
| Total assets | 1,389,086 | 1,156,977 | ||||||
| Liabilities | ||||||||
| Truist Credit Facility payable, at fair value (cost— | 460,361 | 206,940 | ||||||
| 2026 Notes payable, net (par— | 148,571 | 147,669 | ||||||
| 2026 Notes-2 payable, net (par— | 163,080 | 162,226 | ||||||
| Payable for investment purchased | 100,096 | 99,949 | ||||||
| Interest payable on debt | 6,406 | 6,231 | ||||||
| Distributions payable | 5,224 | 13,697 | ||||||
| Base management fee payable | 4,297 | 3,915 | ||||||
| Incentive fee payable | 3,057 | 3,310 | ||||||
| Accounts payable and accrued expenses | 4,053 | 6,754 | ||||||
| Due to affiliates | 33 | 4,099 | ||||||
| Total liabilities | 895,178 | 654,790 | ||||||
| Net assets | ||||||||
| Common stock, 65,296,094 and 65,224,500 shares issued and outstanding, respectively Par value | 65 | 65 | ||||||
| Paid-in capital in excess of par value | 743,968 | 746,466 | ||||||
| Accumulated deficit | (250,125 | ) | (244,344 | ) | ||||
| Total net assets | $ | 493,908 | $ | 502,187 | ||||
| Total liabilities and net assets | $ | 1,389,086 | $ | 1,156,977 | ||||
| Net asset value per share | $ | 7.56 | $ | 7.70 | ||||
| PENNANTPARK INVESTMENT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except share data) | ||||||||||||||||
| Three Months Ended Sept 30, | Year Ended Ended Sept 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Investment income: | ||||||||||||||||
| From non-controlled, non-affiliated investments: | ||||||||||||||||
| Interest | $ | 19,174 | $ | 21,240 | $ | 80,527 | $ | 93,420 | ||||||||
| Payment-in-kind | 3,047 | 1,221 | 5,140 | 1,236 | ||||||||||||
| Dividend income | 577 | 1,028 | 2,869 | 13,945 | ||||||||||||
| Other income | 913 | 888 | 3,508 | 2,316 | ||||||||||||
| From non-controlled, affiliated investments: | ||||||||||||||||
| Interest | — | — | — | 73 | ||||||||||||
| Payment-in-kind | — | 308 | 347 | 625 | ||||||||||||
| From controlled, affiliated investments: | ||||||||||||||||
| Interest | 6,349 | 4,527 | 25,738 | 15,425 | ||||||||||||
| Payment-in-kind | 1,600 | 446 | 4,084 | 2,596 | ||||||||||||
| Dividend income | 4,840 | 4,386 | 21,605 | 15,730 | ||||||||||||
| Total investment income | 36,500 | 34,044 | 143,818 | 145,366 | ||||||||||||
| Expenses: | ||||||||||||||||
| Base management fee | 4,297 | 3,915 | 16,654 | 16,549 | ||||||||||||
| Incentive fee | 3,057 | 3,310 | 12,741 | 13,901 | ||||||||||||
| Interest and expenses on debt | 12,281 | 8,953 | 45,188 | 39,408 | ||||||||||||
| Administrative services expenses | 500 | 469 | 1,689 | 1,843 | ||||||||||||
| General and administrative expenses | 1,250 | 1,129 | 4,874 | 3,837 | ||||||||||||
| Expenses before provision for taxes | 21,385 | 17,776 | 81,146 | 75,538 | ||||||||||||
| Provision for taxes on net investment income | 700 | 663 | 2,602 | 4,295 | ||||||||||||
| Net expenses | 22,085 | 18,439 | 83,748 | 79,833 | ||||||||||||
| Net investment income | 14,415 | 15,605 | 60,070 | 65,533 | ||||||||||||
| Realized and unrealized gain (loss) on investments and debt: | ||||||||||||||||
| Net realized gain (loss) on investments and debt: | ||||||||||||||||
| Non-controlled, non-affiliated investments | 1,610 | (2,676 | ) | 1,166 | (18,418 | ) | ||||||||||
| Non-controlled and controlled, affiliated investments | 475 | — | (34,999 | ) | (133,098 | ) | ||||||||||
| Debt extinguishment | — | — | — | (289 | ) | |||||||||||
| Provision for taxes on realized gain on investments | 363 | (2,535 | ) | 186 | (4,952 | ) | ||||||||||
| Net realized gain (loss) on investments and debt | 2,448 | (5,211 | ) | (33,647 | ) | (156,757 | ) | |||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Non-controlled, non-affiliated investments | (5,483 | ) | (1,928 | ) | (20,895 | ) | (35,440 | ) | ||||||||
| Non-controlled and controlled, affiliated investments | 9,796 | 4,400 | 48,388 | 95,034 | ||||||||||||
| Provision for taxes on unrealized appreciation (depreciation) on investments | — | 680 | (680 | ) | 1,576 | |||||||||||
| Debt appreciation (depreciation) | (2,807 | ) | (1,279 | ) | (4,385 | ) | (3,753 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on investments and debt | 1,506 | 1,873 | 22,428 | 57,417 | ||||||||||||
| Net realized and unrealized gain (loss) from investments and debt | 3,954 | (3,338 | ) | (11,219 | ) | (99,340 | ) | |||||||||
| Net increase (decrease) in net assets resulting from operations | 18,369 | 12,267 | 48,851 | (33,807 | ) | |||||||||||
| Net increase (decrease) in net assets resulting from operations per common share | $ | 0.28 | $ | 0.19 | $ | 0.75 | $ | (0.52 | ) | |||||||
| Net investment income per common share | $ | 0.22 | $ | 0.24 | $ | 0.92 | $ | 1.00 | ||||||||
ABOUT PENNANTPARK INVESTMENT CORPORATION
PennantPark Investment Corporation is a business development company which primarily invests in U.S. middle-market private companies in the form of first lien secured debt, second lien secured debt, subordinated debt and equity investments. PennantPark Investment Corporation 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 (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 PennantPark Investment Corporation files 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 SEC. PennantPark Investment Corporation 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 Investment Corporation | |
| (212) 905-1000 | |
| www.pennantpark.com |
FAQ
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