Portman Ridge Finance Corporation Announces Fourth Quarter and Full Year 2023 Financial Results
- Total investment income increased by 9.6% year-over-year to $76.3 million.
- Net investment income reached $34.8 million in 2023.
- The company repurchased shares worth $4.4 million during the year.
- A quarterly distribution of $0.69 per share was declared for Q1 2024.
- Core investment income, excluding purchase price accounting, saw a 16.1% increase to $74.5 million in 2023.
- None.
Insights
The reported increase in total investment income and net investment income (NII) for Portman Ridge Finance Corporation reflects a robust financial performance, particularly in a challenging market environment. The 9.6% year-over-year growth in investment income and a significant 16.1% increase in core investment income, excluding purchase price accounting adjustments, suggest effective asset management and a potentially favorable credit environment. The uptick in NII per share from $3.00 to $3.66 indicates enhanced profitability on a per-share basis, which is a positive signal for investors.
The company's share repurchase program, with $4.4 million spent on buybacks, appears to be a strategic move to leverage the perceived undervaluation of its shares. This action is accretive to net asset value (NAV) per share, which is beneficial for remaining shareholders as it increases their stake in the company's earnings and assets. However, it is important to assess whether these repurchases are the best use of capital, especially when considering alternative investment opportunities or debt reduction.
NAV is a critical metric for investment companies as it reflects the net value of their assets. A slight increase in NAV per share, despite a marginal decrease in total NAV, indicates a stable asset valuation which is reassuring. However, the year-over-year decrease in total NAV from $232.1 million to $213.5 million warrants further investigation to understand the underlying factors contributing to this decline.
Portman Ridge's diversified investment portfolio, which spans 27 industries and 100 entities, demonstrates a strategy aimed at mitigating industry-specific risks. The weighted average contractual interest rate of approximately 12.5% on the Debt Securities Portfolio is a critical figure, reflecting the income-generating capability of the portfolio. Investors should consider this in the context of the current interest rate environment and credit market conditions.
The company's asset coverage ratio of 165% and the decrease in net leverage from 1.49x to 1.19x are indicative of a relatively conservative capital structure, which could be appealing to risk-averse investors. This reduction in leverage may also suggest that the company is prioritizing balance sheet strength over aggressive growth, which can be a prudent approach in uncertain market conditions.
The announcement of a quarterly distribution increase to $0.69 per share for the first quarter of 2024, albeit a modest one, signals confidence in the company's ability to generate and sustain cash flows. This could be interpreted as a positive sign for income-focused investors.
The transition of Chief Financial Officer (CFO) roles, with the resignation of Jason Roos and the appointment of Brandon Satoren, is a routine corporate event that typically does not raise immediate legal concerns, especially since no disagreements were reported. However, it's important to monitor the new CFO's influence on financial strategies and reporting, as these changes can affect investor perceptions and the company's compliance with financial regulations.
From a legal standpoint, the company's disclosure of non-accruals on debt investments and the fair value of investments provides transparency, which is crucial for investor trust and aligns with regulatory requirements for financial reporting. The decrease in non-accruals as a percentage of the investment portfolio at fair value from 1.6% to 1.3% suggests an improvement in the credit quality of the portfolio, which could reduce potential legal and financial risks associated with non-performing assets.
Reports Strong Year-Over-Year Performance with Total Investment Income of
Continued Share Repurchase Program for a Total of
Announces Quarterly Distribution of
NEW YORK, March 13, 2024 (GLOBE NEWSWIRE) -- Portman Ridge Finance Corporation (Nasdaq: PTMN) (the “Company” or “Portman Ridge”) announced today its financial results for the fourth quarter and full year ended December 31, 2023.
Full Year 2023 Milestones
- Total investment income was
$76.3 million , an increase of9.6% as compared to full year 2022. - Net investment income ("NII") was
$34.8 million ($3.66 per share). - Core investment income, excluding the impact of purchase price accounting, was
$74.5 million , an increase of16.1% as compared to full year 2022. - Total shares repurchased in open market transactions under the Renewed Stock Repurchase Program during the year ended December 31, 2023, were 224,933 at an aggregate cost of approximately
$4.4 million . This compares to 167,017 shares repurchased during the year ended December 31, 2022 at an aggregate cost of approximately$3.8 million . - Total stockholder distributions for 2023 amount to
$2.75 per share.
Fourth Quarter 2023 Highlights
- Total investment income for the fourth quarter of 2023 was
$17.8 million , a decrease of$0.8 million as compared to$18.6 million for the fourth quarter of 2022 and a decrease of$0.8 million as compared to$18.6 million for the third quarter of 2023. - Core investment income1, excluding the impact of purchase price accounting, for the fourth quarter of 2023 was
$17.7 million , unchanged from the fourth quarter of 2022 and a decrease of$0.6 million as compared to$18.3 million for the third quarter of 2023. - Net investment income ("NII") for the fourth quarter of 2023 was
$11.2 million ($1.19 per share), an increase of$4.1 million as compared to$7.1 million ($0.74 per share) for the fourth quarter of 2022 and an increase of$4.0 million as compared to$7.2 million ($0.75 per share) for the third quarter of 2023. The increase in NII in the fourth quarter of 2023 was the result of a one-time expense reimbursement from the Company’s investment adviser. - Net asset value (“NAV”) as of December 31, 2023, was
$213.5 million ($22.76 per share). This compares to NAV of$214.8 million ($22.65 per share) for the third quarter of 2023. The increase in NAV per share, despite a decrease in total NAV, was due to the accretive nature of the share repurchase program to NAV per share. - Total shares repurchased in open market transactions under the Renewed Stock Repurchase Program during the quarter ended December 31, 2023, were 101,680 shares at an aggregate cost of approximately
$1.8 million .
Subsequent Events
- Declared stockholder distribution of
$0.69 per share for the first quarter of 2024, payable on April 2, 2024 to stockholders of record at the close of business on March 25, 2023. This represents a$0.01 per share increase from the first quarter of 2023. - On March 11, 2024, the Company’s board of directors authorized a renewed stock repurchase program of up to
$10 million for an approximately one-year period, effective March 11, 2024 and terminating on March 31, 2025. The renewed stock repurchase program has substantially the same terms as the prior program.
Management Commentary
Ted Goldthorpe, Chief Executive Officer of Portman Ridge, stated, “We are pleased to announce another strong year of financial performance for Portman Ridge, as we saw a
Additionally, we believe that our stock remained undervalued throughout the year, thus, during 2023 we repurchased shares for an aggregate of
Selected Financial Highlights for Full Year 2023
- Total investment income for the year ended 2023 was
$76.3 million , of which$63.5 million was attributable to interest income from the Debt Securities Portfolio. This compares to total investment income of$69.6 million for the year ended 2022, of which$55.8 million was attributable to interest income from the Debt Securities Portfolio. - Core investment income for the full year 2023, excluding the impact of purchase price accounting, was
$74.5 million , an increase of$10.3 million as compared to core investment income of$64.2 million for full year 2022. - Net investment income ("NII") for full year 2023 was
$34.8 million ($3.66 per share) as compared to$28.9 million ($3.00 per share) for the full year 2022. The year-over-year increase was largely due to the$5.3 million expense reimbursement from the Company’s investment adviser in the fourth quarter. - Net asset value (“NAV”) as of December 31, 2023, was
$213.5 million ($22.76 per share), an increase of$0.11 per share as compared to$214.8 million ($22.65 per share) for the third quarter of 2023. This compares to$232.1 million ($24.23 per share) as of December 31, 2022. The quarter-over-quarter increase in NAV per share, despite total NAV decreasing slightly, was predominantly driven by the repurchase of 101,680 shares during the fourth quarter. - Non-accruals on debt investments, as of December 31, 2023, were seven debt investments representing
1.3% and3.2% of the Company’s investment portfolio at fair value and amortized cost, respectively. This compares to eight debt investments representing1.6% and3.6% of the Company’s investment portfolio at fair value and amortized cost, respectively, as of September 30, 2023, and four debt investments representing0.0% and0.6% of the Company’s investment portfolio at fair value and amortized cost, respectively, as of December 31, 2022. - Total investments at fair value as of December 31, 2023, was
$467.9 million ; when excluding CLO funds, Joint Ventures, and short-term investments, these investments are spread across 27 different industries and 100 different entities with an average par balance per entity of approximately$3.1 million . This compares to$576.5 million of total investments at fair value as of December 31, 2022, comprised of investments in 31 different industries and 119 different entities, with an average par balance per entity of approximately$3.3 million . - Weighted average contractual interest rate on our interest earning Debt Securities Portfolio as of December 31, 2023 was approximately
12.5% . - Par value of outstanding borrowings, as of December 31, 2023, was
$325.7 million with an asset coverage ratio of total assets to total borrowings of165% . On a net basis, leverage as of December 31, 2023 was 1.19x2 compared to net leverage of 1.49x3 as of December 31, 2022.
Other Updates
The Company is pleased to announce that Brandon Satoren has been appointed by the Company’s board of directors as the new Chief Financial Officer, Secretary and Treasurer of the Company, effective April 1, 2024. Mr. Satoren, 35, currently serves as the Chief Accounting Officer of Logan Ridge Finance Corporation as well as other registered investment companies within the broader BC Partners Credit platform and has over 14 years of experience in the asset management industry. Mr. Satoren joined BC Partners Advisors LP, an affiliate of the Company’s investment adviser, in May 2021 as a member of the Credit Control team. In this role, he is responsible for directing accounting policy, execution and oversight of financial and non-financial reporting process, as well as other various finance, operations, governance and compliance responsibilities for BC Partners’ credit strategies. Prior to joining BC Partners Advisors LP, Mr. Satoren previously was a Vice President and Controller at PennantPark, a Vice President at AQR Capital Management, LLC and a Manager at PricewaterhouseCoopers LLP. He earned a Bachelor of Science in Accounting from the University of Central Florida in 2010. Mr. Satoren is a Certified Public Accountant licensed to practice in Colorado and is a member of the American Institute of Certified Public Accountants.
On March 11, 2024, the board of directors of Portman Ridge received and accepted the resignation of Jason Roos, Chief Financial Officer, Secretary and Treasurer of the Company, effective April 1, 2024. Mr. Roos’ decision to resign is not related to any disagreement relating to the Company’s accounting, strategy, management, operations, policies, regulatory matters, or practices (financial or otherwise). Mr. Roos will continue to support the executive team in an advisory capacity for an extended period of time.
Results of Operations
Operating results for the years ended December 31, 2023, and December 31, 2022, were as follows:
| For the Year Ended December 31, | ||||||||||
| 2023 | 2022 | |||||||||
| Total investment income | $ | 76,315 | $ | 69,614 | ||||||
| Net expenses(1) | 41,542 | 40,724 | ||||||||
| Net Investment Income | 34,773 | 28,890 | ||||||||
| Net realized gain (loss) on investments | (26,766 | ) | (31,185 | ) | ||||||
| Net unrealized gain (loss) on investments | 3,322 | (17,915 | ) | |||||||
| Tax (provision) benefit on realized and unrealized gains (losses) on investments | $ | 414 | $ | (786 | ) | |||||
| Net realized and unrealized appreciation (depreciation) on investments, net of taxes | $ | (23,030 | ) | $ | (49,886 | ) | ||||
| Realized gains (losses) on extinguishments of debt | $ | (362 | ) | $ | - | |||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 11,381 | $ | (20,996 | ) | |||||
| Net Increase (Decrease) In Net Assets Resulting from Operations per Common Share: | ||||||||||
| Basic and Diluted: | $ | 1.20 | $ | (2.18 | ) | |||||
| Net Investment Income Per Common Share: | ||||||||||
| Basic and Diluted: | $ | 3.66 | $ | 3.00 | ||||||
| Weighted Average Shares of Common Stock Outstanding—Basic and Diluted | 9,509,396 | 9,634,468 | ||||||||
1During the year ended December 31, 2023, the Company received a reimbursement from its investment adviser of
Investment Income
The composition of our investment income for the years ended December 31, 2023, and 2022 was as follows:
| For the Year Ended December 31, | ||||||||
| ($ in thousands) | 2023 | 2022 | ||||||
| Interest from investments in debt excluding accretion | $ | 54,631 | $ | 44,771 | ||||
| Purchase discount accounting | 1,774 | 5,425 | ||||||
| PIK Investment Income | 7,068 | 5,608 | ||||||
| CLO Income | 1,998 | 4,044 | ||||||
| JV Income | 8,948 | 8,591 | ||||||
| Service Fees | 1,896 | 1,175 | ||||||
| Investment Income | $ | 76,315 | $ | 69,614 | ||||
| Less : Purchase discount accounting | $ | (1,774 | ) | $ | (5,425 | ) | ||
| Core Investment Income | $ | 74,541 | $ | 64,189 | ||||
Fair Value of Investments
The composition of our investment portfolio as of December 31, 2023 and December 31, 2022 at cost and fair value was as follows:
| ($ in thousands) | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
| Security Type | Cost/Amortized Cost | Fair Value | %(1) | Cost/Amortized Cost | Fair Value | %(1) | ||||||||||||||||||
| Senior Secured Loan | $ | 356,358 | $ | 340,159 | 73 | $ | 435,856 | $ | 418,722 | 73 | ||||||||||||||
| Junior Secured Loan | 53,888 | 38,875 | 8 | 65,776 | 56,400 | 10 | ||||||||||||||||||
| Senior Unsecured Bond | 416 | 43 | 0 | 416 | 43 | 0 | ||||||||||||||||||
| Equity Securities | 31,280 | 20,533 | 4 | 28,848 | 21,905 | 4 | ||||||||||||||||||
| CLO Fund Securities | 9,103 | 8,968 | 2 | 34,649 | 20,453 | 3 | ||||||||||||||||||
| Asset Manager Affiliates(2) | 17,791 | - | - | 17,791 | - | - | ||||||||||||||||||
| Joint Ventures | 71,415 | 59,287 | 13 | 68,850 | 58,955 | 10 | ||||||||||||||||||
| Derivatives | 31 | - | - | 31 | - | - | ||||||||||||||||||
| Total | $ | 540,282 | $ | 467,865 | 100 | % | $ | 652,217 | $ | 576,478 | 100 | % | ||||||||||||
1 Represents percentage of total portfolio at fair value
2 Represents the equity investment in the Asset Manager Affiliates
Liquidity and Capital Resources
As of December 31, 2023, the Company had
As of December 31, 2023 and December 31, 2022, the fair value of investments and cash were as follows:
| ($ in thousands) | ||||||||
| Security Type | December 31, 2023 | December 31, 2022 | ||||||
| Cash and cash equivalents | $ | 26,912 | $ | 5,148 | ||||
| Restricted Cash | 44,652 | 27,983 | ||||||
| Senior Secured Loan | 340,159 | 418,722 | ||||||
| Junior Secured Loan | 38,875 | 56,400 | ||||||
| Senior Unsecured Bond | 43 | 43 | ||||||
| Equity Securities | 20,533 | 21,905 | ||||||
| CLO Fund Securities | 8,968 | 20,453 | ||||||
| Asset Manager Affiliates | - | - | ||||||
| Joint Ventures | 59,287 | 58,955 | ||||||
| Derivatives | - | - | ||||||
| Total | $ | 539,429 | $ | 609,609 | ||||
As of December 31, 2023, the Company had unrestricted cash of
Interest Rate Risk
The Company’s investment income is affected by fluctuations in various interest rates, including SOFR and prime rates.
As of December 31, 2023, approximately
In periods of rising or lowering interest rates, the cost of the portion of debt associated with the
Generally, the Company would expect that an increase in the base rate index for floating rate investment assets would increase gross investment income and a decrease in the base rate index for such assets would decrease gross investment income (in either case, such increase/decrease may be limited by interest rate floors/minimums for certain investment assets).
| Impact on net investment income from a change in interest rates at: | ||||||||||||
| ($ in thousands) | 1% | 2% | 3% | |||||||||
| Increase in interest rate | $ | 1,508 | $ | 3,017 | $ | 4,525 | ||||||
| Decrease in interest rate | $ | (1,508 | ) | $ | (3,017 | ) | $ | (4,525 | ) | |||
Conference Call and Webcast
We will hold a conference call on March 14, 2024, at 9:00 am Eastern Time to discuss our fourth quarter and full year 2023 financial results. To access the call, stockholders, prospective stockholders and analysts should dial (646) 307-1963 approximately 10 minutes prior to the start of the conference call and use the conference ID 4194885.
A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis on the Company’s website www.portmanridge.com in the Investor Relations section under Events and Presentations. The webcast can also be accessed by clicking the following link: https://edge.media-server.com/mmc/p/z9pgs7ne. The online archive of the webcast will be available on the Company’s website shortly after the call.
About Portman Ridge Finance Corporation
Portman Ridge Finance Corporation (Nasdaq: PTMN) is a publicly traded, externally managed investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Portman Ridge’s middle market investment business originates, structures, finances and manages a portfolio of term loans, mezzanine investments and selected equity securities in middle market companies. Portman Ridge’s investment activities are managed by its investment adviser, Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors, LP.
Portman Ridge’s filings with the Securities and Exchange Commission (the “SEC”), earnings releases, press releases and other financial, operational and governance information are available on the Company's website at www.portmanridge.com.
About BC Partners Advisors L.P. and BC Partners Credit
BC Partners is a leading international investment firm with over
BC Partners Credit was launched in February 2017 and has pursued a strategy focused on identifying attractive credit opportunities in any market environment and across sectors, leveraging the deal sourcing and infrastructure made available from BC Partners.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements. The matters discussed in this press release, as well as in future oral and written statements by management of Portman Ridge Finance Corporation, that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements.
Forward-looking statements relate to future events or our future financial performance and include, but are not limited to, projected financial performance, expected development of the business, plans and expectations about future investments and the future liquidity of the Company. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “outlook”, “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements.
Important assumptions include our ability to originate new investments, and achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this press release should not be regarded as a representation that such plans, estimates, expectations or objectives will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) uncertainty of the expected financial performance of the Company; (2) expected synergies and savings associated with merger transactions effectuated by the Company; (3) the ability of the Company and/or its adviser to implement its business strategy; (4) evolving legal, regulatory and tax regimes; (5) changes in general economic and/or industry specific conditions, including but not limited to the impact of inflation; (6) the impact of increased competition; (7) business prospects and the prospects of the Company’s portfolio companies; (8) contractual arrangements with third parties; (9) any future financings by the Company; (10) the ability of Sierra Crest Investment Management LLC to attract and retain highly talented professionals; (11) the Company’s ability to fund any unfunded commitments; (12) any future distributions by the Company; (13) changes in regional or national economic conditions, including but not limited to the impact of the COVID-19 pandemic, and their impact on the industries in which we invest; and (14) other changes in the conditions of the industries in which we invest and other factors enumerated in our filings with the SEC. The forward-looking statements should be read in conjunction with the risks and uncertainties discussed in the Company’s filings with the SEC, including the Company’s most recent Form 10-K and other SEC filings. We do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required to be reported under the rules and regulations of the SEC.
Contacts:
Portman Ridge Finance Corporation
650 Madison Avenue, 23rd floor
New York, NY 10022
info@portmanridge.com
Jason Roos
Jason.Roos@bcpartners.com
(212) 891-2880
The Equity Group Inc.
Lena Cati
lcati@equityny.com
(212) 836-9611
Val Ferraro
vferraro@equityny.com
(212) 836-9633
| PORTMAN RIDGE FINANCE CORPORATION CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) | |||||||
| December 31, 2023 | December 31, 2022 | ||||||
| ASSETS | |||||||
| Investments at fair value: | |||||||
| Non-controlled/non-affiliated investments (amortized cost: 2023 - | $ | 398,325 | $ | 483,698 | |||
| Non-controlled affiliated investments (amortized cost: 2023 - | 55,222 | 73,827 | |||||
| Controlled affiliated investments (cost: 2023 - | 14,318 | 18,953 | |||||
| Total Investments at Fair Value (cost: 2023 - | $ | 467,865 | $ | 576,478 | |||
| Cash and cash equivalents | 26,912 | 5,148 | |||||
| Restricted cash | 44,652 | 27,983 | |||||
| Interest receivable | 5,162 | 4,828 | |||||
| Receivable for unsettled trades | 573 | 1,395 | |||||
| Due from affiliates | 1,534 | 930 | |||||
| Other assets | 2,541 | 2,724 | |||||
| Total Assets | $ | 549,239 | $ | 619,486 | |||
| LIABILITIES | |||||||
| 2018-2 Secured Notes (net of discount of: 2023 - | $ | 124,971 | $ | 176,937 | |||
| 106,214 | 105,478 | ||||||
| Great Lakes Portman Ridge Funding LLC Revolving Credit Facility (net of deferred financing costs of: 2023 - | 91,225 | 90,893 | |||||
| Payable for unsettled trades | 520 | 1,276 | |||||
| Accounts payable, accrued expenses and other liabilities | 4,252 | 4,614 | |||||
| Accrued interest payable | 3,928 | 3,722 | |||||
| Due to affiliates | 458 | 900 | |||||
| Management and incentive fees payable | 4,153 | 3,543 | |||||
| Total Liabilities | $ | 335,721 | $ | 387,363 | |||
| COMMITMENTS AND CONTINGENCIES (NOTE 8) | |||||||
| NET ASSETS | |||||||
| Common stock, par value | $ | 94 | $ | 96 | |||
| Capital in excess of par value | 717,835 | 736,784 | |||||
| Total distributable (loss) earnings | (504,411 | ) | (504,757 | ) | |||
| Total Net Assets | $ | 213,518 | $ | 232,123 | |||
| Total Liabilities and Net Assets | $ | 549,239 | $ | 619,486 | |||
| Net Asset Value Per Common Share | $ | 22.76 | $ | 24.23 | |||
| PORTMAN RIDGE FINANCE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) | ||||||||||||
| For the Year Ended December 31, | ||||||||||||
| 2023 | 2022 | 2021 | ||||||||||
| INVESTMENT INCOME | ||||||||||||
| Interest income: | ||||||||||||
| Non-controlled/non-affiliated investments | $ | 55,675 | $ | 51,090 | $ | 60,236 | ||||||
| Non-controlled affiliated investments | 2,728 | 3,150 | 4,775 | |||||||||
| Total interest income | $ | 58,403 | $ | 54,240 | $ | 65,011 | ||||||
| Payment-in-kind income: | ||||||||||||
| Non-controlled/non-affiliated investments (2) | $ | 6,662 | $ | 4,950 | $ | 3,355 | ||||||
| Non-controlled affiliated investments | 406 | 477 | 166 | |||||||||
| Controlled affiliated investments | - | 181 | - | |||||||||
| Total payment-in-kind income | $ | 7,068 | $ | 5,608 | $ | 3,521 | ||||||
| Dividend income: | ||||||||||||
| Non-controlled affiliated investments | $ | 6,764 | $ | 4,450 | $ | 4,006 | ||||||
| Controlled affiliated investments | 2,184 | 4,141 | 5,170 | |||||||||
| Total dividend income | $ | 8,948 | $ | 8,591 | $ | 9,176 | ||||||
| Fees and other income: | ||||||||||||
| Non-controlled/non-affiliated investments | $ | 1,882 | $ | 1,135 | $ | 2,378 | ||||||
| Non-controlled affiliated investments | 14 | 40 | - | |||||||||
| Total fees and other income | $ | 1,896 | $ | 1,175 | $ | 2,378 | ||||||
| Total investment income | $ | 76,315 | $ | 69,614 | $ | 80,086 | ||||||
| EXPENSES | ||||||||||||
| Management fees | $ | 7,452 | $ | 8,349 | $ | 7,916 | ||||||
| Performance-based incentive fees | 7,374 | 6,126 | 7,075 | |||||||||
| Interest and amortization of debt issuance costs | 25,306 | 17,701 | 13,644 | |||||||||
| Professional fees | 2,629 | 3,400 | 3,660 | |||||||||
| Administrative services expense | 2,377 | 3,364 | 3,219 | |||||||||
| Other general and administrative expenses | 1,713 | 1,784 | 2,568 | |||||||||
| Total expenses | $ | 46,851 | $ | 40,724 | $ | 38,082 | ||||||
| Expense reimbursement | $ | (5,309 | ) | $ | - | $ | - | |||||
| Net expenses | $ | 41,542 | $ | 40,724 | $ | 38,082 | ||||||
| NET INVESTMENT INCOME | $ | 34,773 | $ | 28,890 | $ | 42,004 | ||||||
| REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS: | ||||||||||||
| Net realized gains (losses) from investment transactions | ||||||||||||
| Non-controlled/non-affiliated investments | $ | (26,334 | ) | $ | (28,893 | ) | $ | (4,397 | ) | |||
| Non-controlled affiliated investments | (399 | ) | (197 | ) | 139 | |||||||
| Controlled affiliated investments | (33 | ) | - | — | ||||||||
| Derivatives | - | (2,095 | ) | - | ||||||||
| Net realized gain (loss) on investments | $ | (26,766 | ) | $ | (31,185 | ) | $ | (4,258 | ) | |||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||
| Non-controlled/non-affiliated investments | $ | 6,696 | $ | (8,298 | ) | $ | (8,047 | ) | ||||
| Non-controlled affiliated investments | 980 | (1,428 | ) | 282 | ||||||||
| Controlled affiliated investments | (4,354 | ) | (10,601 | ) | 625 | |||||||
| Derivatives | - | 2,412 | (1,303 | ) | ||||||||
| Net unrealized gain (loss) on investments | $ | 3,322 | $ | (17,915 | ) | $ | (8,443 | ) | ||||
| Tax (provision) benefit on realized and unrealized (gains) losses on investments | $ | 414 | $ | (786 | ) | $ | (1,442 | ) | ||||
| Net realized and unrealized appreciation (depreciation) on investments, net of taxes | $ | (23,030 | ) | $ | (49,886 | ) | $ | (14,143 | ) | |||
| Realized gains (losses) on extinguishments of debt | $ | (362 | ) | $ | - | $ | (1,835 | ) | ||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 11,381 | $ | (20,996 | ) | $ | 26,026 | |||||
| Net Increase (Decrease) In Net Assets Resulting from Operations per Common Share (1): | ||||||||||||
| Basic and Diluted: | $ | 1.20 | $ | (2.18 | ) | $ | 3.05 | |||||
| Net Investment Income Per Common Share (1): | ||||||||||||
| Basic and Diluted: | $ | 3.66 | $ | 3.00 | $ | 4.92 | ||||||
| Weighted Average Shares of Common Stock Outstanding—Basic and Diluted (1) | 9,509,396 | 9,634,468 | 8,536,079 | |||||||||
1The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the weighted average shares outstanding and per share values have been adjusted retroactively to reflect the split for all periods presented.
2During the year ended December 31, 2023, the Company received
1 Core investment income represents reported total investment income as determined in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, less the impact of purchase price discount accounting in connection with the Garrison Capital Inc. (“GARS”) and Harvest Capital Credit Corporation (“HCAP”) mergers. Portman Ridge believes presenting core investment income and the related per share amount is useful and appropriate supplemental disclosure for analyzing its financial performance due to the unique circumstance giving rise to the purchase accounting adjustment. However, core investment income is a non-U.S. GAAP measure and should not be considered as a replacement for total investment income and other earnings measures presented in accordance with U.S. GAAP. Instead, core investment income should be reviewed only in connection with such U.S. GAAP measures in analyzing Portman Ridge’s financial performance.
2 Net leverage is calculated as the ratio between (A) debt, excluding unamortized debt issuance costs, less available cash and cash equivalents, and restricted cash and (B) NAV. Portman Ridge believes presenting a net leverage ratio is useful and appropriate supplemental disclosure because it reflects the Company’s financial condition net of
FAQ
What was Portman Ridge Finance Corporation's (PTMN) total investment income for the year 2023?
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