Portman Ridge Finance Corporation Announces Second Quarter 2024 Financial Results
Portman Ridge Finance (PTMN) reported its Q2 2024 financial results, highlighting:
- Net Investment Income (NII) of $0.70 per share, up 4.5% from Q1
- Net Asset Value (NAV) of $21.21 per share
- Total investment income of $16.3 million
- Amended and extended credit facility, increasing commitments to $200 million from $115 million and reducing interest rate margin to 2.50% from 2.80%
- Repurchased 79,722 shares for $1.6 million, accretive to NAV by $0.03 per share
- Declared Q3 2024 distribution of $0.69 per share
The company faced challenges with select inherited portfolio companies, resulting in NAV decline and increased non-accruals. However, management remains confident in the portfolio quality and ability to generate attractive returns.
Portman Ridge Finance (PTMN) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando:
- Reddito Netto da Investimento (NII) di $0,70 per azione, in aumento del 4,5% rispetto al primo trimestre
- Valore Netto degli Attivi (NAV) di $21,21 per azione
- Reddito totale da investimenti di $16,3 milioni
- Linee di credito modificate e ampliate, aumentando gli impegni a $200 milioni rispetto a $115 milioni e riducendo il margine del tasso d'interesse dal 2,80% al 2,50%
- Riacquisto di 79.722 azioni per $1,6 milioni, che ha accresciuto il NAV di $0,03 per azione
- Dichiarato il pagamento della distribuzione per il terzo trimestre 2024 di $0,69 per azione
L'azienda ha affrontato sfide con alcune società di portafoglio ereditate, risultando in un calo del NAV e in un aumento delle non accrual. Tuttavia, la direzione rimane fiduciosa nella qualità del portafoglio e nella capacità di generare rendimenti interessanti.
Portman Ridge Finance (PTMN) informó sus resultados financieros del segundo trimestre de 2024, destacando:
- Ingresos Netos de Inversión (NII) de $0.70 por acción, un aumento del 4.5% respecto al primer trimestre
- Valor Neto de los Activos (NAV) de $21.21 por acción
- Ingresos totales de inversión de $16.3 millones
- Facilidad de crédito enmendada y extendida, aumentando los compromisos a $200 millones desde $115 millones y reduciendo el margen de tasa de interés al 2.50% desde el 2.80%
- Recompra de 79,722 acciones por $1.6 millones, que incrementó el NAV en $0.03 por acción
- Se declaró una distribución para el tercer trimestre de 2024 de $0.69 por acción
La empresa enfrentó desafíos con algunas compañías de portafolio heredadas, lo que resultó en un descenso del NAV y un aumento en los intereses no devengados. Sin embargo, la dirección sigue confiando en la calidad de la cartera y en la capacidad para generar rendimientos atractivos.
Portman Ridge Finance (PTMN)은 2024년 2분기 재무 결과를 보고하며 다음을 강조했습니다:
- 순 투자 수익(NII) 주당 $0.70으로 1분기 대비 4.5% 증가
- 순 자산 가치(NAV) 주당 $21.21
- 총 투자 수익 $16.3백만
- 신용 시설 수정 및 연장, 약속을 $115백만에서 $200백만으로 증가시키고 이자율 마진을 2.80%에서 2.50%로 감소
- 79,722주를 $1.6백만에 재매입하여 NAV를 주당 $0.03 증가
- 2024년 3분기 배당금으로 주당 $0.69 선언
회사는 선택된 상속 포트폴리오 회사들로 인해 어려움에 직면했으며, 이로 인해 NAV가 감소하고 비이자 미적립이 증가했습니다. 그러나 경영진은 포트폴리오의 품질과 매력적인 수익을 창출할 수 있는 능력에 대해 여전히 자신감을 가지고 있습니다.
Portman Ridge Finance (PTMN) a publié ses résultats financiers pour le deuxième trimestre 2024, en mettant en avant :
- Revenu Net d'Investissement (NII) de 0,70 $ par action, en hausse de 4,5 % par rapport au premier trimestre
- Valeur Nette des Actifs (NAV) de 21,21 $ par action
- Revenu total d'investissement de 16,3 millions de dollars
- Modification et prolongation de l’établissement de crédit, augmentant les engagements de 115 millions $ à 200 millions $ et réduisant le taux d'intérêt marginal de 2,80 % à 2,50 %
- Rachat de 79 722 actions pour 1,6 million $, avec un impact positif sur le NAV de 0,03 $ par action
- Distribution déclarée pour le troisième trimestre 2024 de 0,69 $ par action
L'entreprise a rencontré des défis avec certaines sociétés de portefeuille héritées, ce qui a entraîné une baisse du NAV et une augmentation des non-accruals. Cependant, la direction reste confiante quant à la qualité du portefeuille et à sa capacité à générer des rendements attractifs.
Portman Ridge Finance (PTMN) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und dabei hervorgehoben:
- Netto-Investitionsertrag (NII) von $0,70 pro Aktie, ein Anstieg von 4,5% im Vergleich zum ersten Quartal
- Nettovermögenswert (NAV) von $21,21 pro Aktie
- Gesamterträge aus Investitionen von $16,3 Millionen
- Änderungen und Verlängerungen der Kreditfazilität, die Verpflichtungen von $115 Millionen auf $200 Millionen erhöhen und den Zinssatzmarge von 2,80% auf 2,50% senken
- Rückkauf von 79.722 Aktien für $1,6 Millionen, was den NAV um $0,03 pro Aktie erhöht hat
- Deklaration einer Ausschüttung von $0,69 pro Aktie für das dritte Quartal 2024
Das Unternehmen sah sich Herausforderungen mit bestimmten geerbten Portfoliounternehmen gegenüber, was zu einem Rückgang des NAV und einem Anstieg der nicht akkretierten Beträge führte. Das Management bleibt jedoch zuversichtlich in Bezug auf die Qualität des Portfolios und die Fähigkeit, attraktive Renditen zu erzielen.
- Net Investment Income increased to $0.70 per share, up 4.5% from previous quarter
- Amended credit facility with increased commitments to $200 million and reduced interest rate margin
- Share repurchase program accretive to NAV by $0.03 per share
- Declared quarterly distribution of $0.69 per share
- Total investment income decreased to $16.3 million from $19.6 million year-over-year
- Net Asset Value declined to $21.21 per share from $22.57 in the previous quarter
- Increase in non-accrual debt investments to 4.5% of portfolio at amortized cost, up from 3.2% in Q1
- Net realized and unrealized loss on investments of $12.8 million
Insights
Portman Ridge's Q2 2024 results show mixed performance. Net investment income (NII) increased to
The company's amended credit facility is a positive development, increasing commitments to
While core investment income decreased year-over-year, the weighted average contractual interest rate on the debt portfolio remains attractive at
The portfolio composition shows a focus on first lien debt, comprising
The company's share repurchase program, which was accretive to NAV by
The interest rate sensitivity analysis indicates that a
Reports Net Investment Income of
Amends and Extends Existing Senior Secured Revolving Credit Facility; Upsizes Commitments to
Continued Share Repurchase Program: Total of 79,722 Shares for an Aggregate Cost of Approximately
Announces Third Quarter 2024 Quarterly Distribution of
NEW YORK, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Portman Ridge Finance Corporation (Nasdaq: PTMN) (the “Company” or “Portman Ridge”) announced today its financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Total investment income for the second quarter of 2024 was
$16.3 million , as compared to$16.5 million for the first quarter of 2024. - Core investment income1, excluding the impact of purchase price accounting, for the second quarter of 2024 was
$16.2 million , as compared to$16.5 million for the first quarter of 2024. - Net investment income (“NII”) for the second quarter of 2024 was
$6.5 million ($0.70 per share) as compared to$6.2 million ($0.67 per share) in the first quarter of 2024. - Net asset value (“NAV”), as of June 30, 2024, was
$196.4 million ($21.21 per share), as compared to NAV of$210.6 million ($22.57 per share) as of March 31, 2024. - Total shares repurchased in open market transactions under the Renewed Stock Repurchase Program during the quarter ended June 30, 2024, were 79,722 shares at an aggregate cost of approximately
$1.6 million , which was accretive to NAV by$0.03 per share.
Subsequent Events
- On July 23, 2024, Great Lakes Portman Ridge Funding LLC, a wholly-owned subsidiary of the Company, entered into a second amendment of its senior secured revolving credit facility (“Revolving Credit Facility”) with JPMorgan Chase Bank, National Association (“JPM”) as administrative agent. The second amendment, among other things, (i) provided for a committed increase to the aggregate principal amount of the Revolving Credit Facility in an amount not to exceed
$85,000,000 , subject to the satisfaction of certain conditions, (ii) provided for a committed seven-day bridge advance in an aggregate principal amount of$18,250,000 , subject to the satisfaction of certain conditions, (iii) reduced the applicable margin on the Revolving Credit Facility to2.50% per annum, (iv) extended the period in which the Company may request advances under the Revolving Credit Facility to August 29, 2026, (v) extended the stated maturity of the Revolving Credit Facility to August 29, 2027, (vi) extended the non-call period under the Revolving Credit Facility to April 29, 2025, and (vii) provided for certain fees to be paid to the administrative agent and the lenders in connection therewith. - On August 8, 2024, the Company declared a cash distribution of
$0.69 per share of common stock. The distribution is payable on August 30, 2024 to stockholders of record at the close of business on August 22, 2024.
Management Commentary
Ted Goldthorpe, Chief Executive Officer of Portman Ridge, stated, “We are pleased to report that Portman Ridge delivered net investment income of
Subsequent to quarter end, we amended and extended our Credit Facility with JPM. The new attractive terms, which reduced the applicable margin from
As we enter the back half of 2024, we want to reiterate our commitment to our shareholders. With our amended credit facility, robust pipeline, and strong balance sheet, we believe we are well positioned to continue executing our strategy and delivering positive returns to our shareholders.”
Selected Financial Highlights
- Total investment income for the quarter ended June 30, 2024, was
$16.3 million , of which$13.9 million was attributable to interest income, inclusive of payment-in-kind income, from the Debt Securities Portfolio. This compares to total investment income of$19.6 million for the quarter ended June 30, 2023, of which$15.5 million was attributable to interest income, inclusive of payment-in-kind income, from the Debt Securities Portfolio. - Core investment income for the second quarter of 2024, excluding the impact of purchase discount accretion, was
$16.2 million , a decrease of$3.0 million as compared to core investment income of$19.2 million for the second quarter of 2023. - Net investment income (“NII”) for the second quarter of 2024 was
$6.5 million ($0.70 per share) as compared to$7.9 million ($0.83 per share) for the same period the prior year. - Non-accruals on debt investments, as of June 30, 2024, were nine debt investments representing
0.5% and4.5% of the Company’s investment portfolio at fair value and amortized cost, respectively. This compares to seven debt investments representing0.5% and3.2% of the Company’s investment portfolio at fair value and amortized cost, respectively, as of March 31, 2024. Two non-accrual debt investments were sold subsequent to the quarter ended June 30, 2024. - Total investments at fair value as of June 30, 2024, was
$444.4 million and consisted of investments in 92 portfolio companies. The debt investment portfolio at fair value as of June 30, 2024 was$358.9 million , which excludes CLO Funds and Joint Ventures, and was comprised of 75 different portfolio companies across 28 different industries with an average par balance per entity of approximately$2.6 million . This compares to total investments of$471.3 million at fair value as of March 31, 2024 and consisted of investments in 94 portfolio companies. The debt investment portfolio at fair value as of March 31, 2024 was$386.1 million , which excludes CLO Funds and Joint Ventures, and was comprised of 79 different portfolio companies across 27 different industries with an average par balance per entity of approximately$3.1 million . - Weighted average contractual interest rate on our interest earning Debt Securities Portfolio as of June 30, 2024 was approximately
12.4% . - Par value of outstanding borrowings, as of June 30, 2024, was
$285.1 million compared to$291.7 million as of March 31, 2024, with an asset coverage ratio of total assets to total borrowings of169% and171% , respectively. On a net basis, leverage as of June 30, 2024 was 1.3x2 compared to net leverage of 1.2x2 as of March 31, 2024.
Results of Operations
Operating results for the three months ended June 30, 2024, and June 30, 2023, were as follows:
| For the Three Months Ended June 30, | |||||||||
| ($ in thousands) | 2024 | 2023 | |||||||
| Total investment income | $ | 16,337 | $ | 19,626 | |||||
| Total expenses | 9,860 | 11,711 | |||||||
| Net Investment Income | 6,477 | 7,915 | |||||||
| Net realized gain (loss) on investments | (6,922 | ) | (6,471 | ) | |||||
| Net change in unrealized gain (loss) on investments | (5,966 | ) | (4,176 | ) | |||||
| Tax (provision) benefit on realized and unrealized gains (losses) on investments | $ | 78 | $ | (164 | ) | ||||
| Net realized and unrealized appreciation (depreciation) on investments, net of taxes | $ | (12,810 | ) | $ | (10,811 | ) | |||
| Net realized gain (loss) on extinguishment of debt | $ | (39 | ) | $ | (218 | ) | |||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (6,372 | ) | $ | (3,114 | ) | |||
| Net Increase (Decrease) In Net Assets Resulting from Operations per Common Share: | |||||||||
| Basic and Diluted: | $ | (0.69 | ) | $ | (0.33 | ) | |||
| Net Investment Income Per Common Share: | |||||||||
| Basic and Diluted: | $ | 0.70 | $ | 0.83 | |||||
| Weighted Average Shares of Common Stock Outstanding — Basic and Diluted | 9,293,687 | 9,541,722 | |||||||
Investment Income
The composition of our investment income for the three months ended June 30, 2024, and June 30, 2023, was as follows:
| For the Three Months Ended June 30, | ||||||||
| ($ in thousands) | 2024 | 2023 | ||||||
| Interest income, excluding CLO income and purchase discount accretion | $ | 11,589 | $ | 14,156 | ||||
| Purchase discount accretion | 112 | 427 | ||||||
| PIK Income | 2,201 | 966 | ||||||
| CLO Income | 524 | 829 | ||||||
| JV Income | 1,800 | 2,329 | ||||||
| Fees and other income | 111 | 919 | ||||||
| Investment Income | $ | 16,337 | $ | 19,626 | ||||
| Less : Purchase discount accretion | $ | (112 | ) | $ | (427 | ) | ||
| Core Investment Income | $ | 16,225 | $ | 19,199 | ||||
Fair Value of Investments
The composition of our investment portfolio as of June 30, 2024 and December 31, 2023, at cost and fair value was as follows:
| ($ in thousands) | June 30, 2024 (Unaudited) | December 31, 2023 | ||||||||||||||||||||||
| Security Type | Cost/Amortized Cost | Fair Value | Fair Value Percentage of Total Portfolio | Cost/Amortized Cost | Fair Value | Fair Value Percentage of Total Portfolio | ||||||||||||||||||
| First Lien Debt | $ | 343,264 | $ | 320,815 | 72.1 | % | $ | 351,858 | $ | 336,599 | 71.9 | % | ||||||||||||
| Second Lien Debt | 48,750 | 36,386 | 8.2 | % | 50,814 | 41,254 | 8.8 | % | ||||||||||||||||
| Subordinated Debt | 8,055 | 1,693 | 0.4 | % | 7,990 | 1,224 | 0.3 | % | ||||||||||||||||
| Collateralized Loan Obligations | 8,423 | 7,354 | 1.7 | % | 9,103 | 8,968 | 1.9 | % | ||||||||||||||||
| Joint Ventures | 65,775 | 54,292 | 12.2 | % | 71,415 | 59,287 | 12.7 | % | ||||||||||||||||
| Equity | 30,594 | 23,830 | 5.4 | % | 31,280 | 20,533 | 4.4 | % | ||||||||||||||||
| Asset Manager Affiliates(1) | 17,791 | — | — | 17,791 | — | — | ||||||||||||||||||
| Derivatives | 31 | — | — | 31 | — | — | ||||||||||||||||||
| Total | $ | 522,683 | $ | 444,370 | 100.0 | % | $ | 540,282 | $ | 467,865 | 100.0 | % | ||||||||||||
1 Represents the equity investment in the Asset Manager Affiliates.
Liquidity and Capital Resources
As of June 30, 2024, the Company had
As of June 30, 2024, and December 31, 2023, the fair value of investments and cash were as follows:
| ($ in thousands) | ||||||||
| Security Type | June 30, 2024 | December 31, 2023 | ||||||
| Cash and cash equivalents | $ | 9,813 | $ | 26,912 | ||||
| Restricted Cash | 26,826 | 44,652 | ||||||
| First Lien Debt | 320,815 | 336,599 | ||||||
| Second Lien Debt | 36,386 | 41,254 | ||||||
| Subordinated Debt | 1,693 | 1,224 | ||||||
| Equity | 23,830 | 20,533 | ||||||
| Collateralized Loan Obligations | 7,354 | 8,968 | ||||||
| Asset Management Affiliates | — | — | ||||||
| Joint Ventures | 54,292 | 59,287 | ||||||
| Derivatives | — | — | ||||||
| Total | $ | 481,009 | $ | 539,429 | ||||
As of June 30, 2024, 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 June 30, 2024, 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 | $ | 1,764 | $ | 3,528 | $ | 5,292 | ||||||
| Decrease in interest rate | $ | (1,764 | ) | $ | (3,528 | ) | $ | (5,252 | ) | |||
Conference Call and Webcast
We will hold a conference call on Friday, August 9, 2024, at 10:00 am Eastern Time to discuss our second quarter 2024 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 9474953.
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/zqckbjgv. 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 L.P.
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 in private equity, private credit and real estate strategies. Established in 1986, BC Partners has played an active role in developing the European buyout market for three decades. Today, BC Partners executives operate across markets as an integrated team through the firm’s offices in North America and Europe. For more information, please visit https://www.bcpartners.com/.
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 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, 3rd floor
New York, NY 10022
info@portmanridge.com
Brandon Satoren
Chief Financial Officer
Brandon.Satoren@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)
| June 30, 2024 | December 31, 2023 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Investments at fair value: | |||||||
| Non-controlled/non-affiliated investments (amortized cost: 2024 - | $ | 370,359 | $ | 398,325 | |||
| Non-controlled affiliated investments (amortized cost: 2024 - | 60,464 | 55,222 | |||||
| Controlled affiliated investments (cost: 2024 - | 13,547 | 14,318 | |||||
| Total Investments at Fair Value (cost: 2024 - | $ | 444,370 | $ | 467,865 | |||
| Cash and cash equivalents | 9,813 | 26,912 | |||||
| Restricted cash | 26,826 | 44,652 | |||||
| Interest receivable | 4,659 | 5,162 | |||||
| Receivable for unsettled trades | — | 573 | |||||
| Due from affiliates | 1,544 | 1,534 | |||||
| Other assets | 1,599 | 2,541 | |||||
| Total Assets | $ | 488,811 | $ | 549,239 | |||
| LIABILITIES | |||||||
| 2018-2 Secured Notes (net of discount of: 2024 - | $ | 84,656 | $ | 124,971 | |||
| 106,596 | 106,214 | ||||||
| Great Lakes Portman Ridge Funding LLC Revolving Credit Facility (net of deferred financing costs of: 2024 - | 91,391 | 91,225 | |||||
| Payable for unsettled trades | 37 | 520 | |||||
| Accounts payable, accrued expenses and other liabilities | 2,700 | 4,252 | |||||
| Accrued interest payable | 3,537 | 3,928 | |||||
| Due to affiliates | 411 | 458 | |||||
| Management and incentive fees payable | 3,054 | 4,153 | |||||
| Total Liabilities | $ | 292,382 | $ | 335,721 | |||
| COMMITMENTS AND CONTINGENCIES | |||||||
| NET ASSETS | |||||||
| Common stock, par value | $ | 93 | $ | 94 | |||
| Capital in excess of par value | 715,488 | 717,835 | |||||
| Total distributable (loss) earnings | (519,152 | ) | (504,411 | ) | |||
| Total Net Assets | $ | 196,429 | $ | 213,518 | |||
| Total Liabilities and Net Assets | $ | 488,811 | $ | 549,239 | |||
| Net Asset Value Per Common Share | $ | 21.21 | $ | 22.76 | |||
PORTMAN RIDGE FINANCE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| INVESTMENT INCOME | ||||||||||||||||
| Interest income: | ||||||||||||||||
| Non-controlled/non-affiliated investments | $ | 11,913 | $ | 14,786 | $ | 24,534 | $ | 29,632 | ||||||||
| Non-controlled affiliated investments | 312 | 626 | 407 | 1,475 | ||||||||||||
| Total interest income | $ | 12,225 | $ | 15,412 | $ | 24,941 | $ | 31,107 | ||||||||
| Payment-in-kind income: | ||||||||||||||||
| Non-controlled/non-affiliated investments(1) | $ | 2,018 | $ | 859 | $ | 3,912 | $ | 2,386 | ||||||||
| Non-controlled affiliated investments | 183 | 107 | 295 | 180 | ||||||||||||
| Total payment-in-kind income | $ | 2,201 | $ | 966 | $ | 4,207 | $ | 2,566 | ||||||||
| Dividend income: | ||||||||||||||||
| Non-controlled affiliated investments | $ | 1,800 | $ | 1,864 | $ | 3,453 | $ | 3,248 | ||||||||
| Controlled affiliated investments | — | 465 | — | 1,540 | ||||||||||||
| Total dividend income | $ | 1,800 | $ | 2,329 | $ | 3,453 | $ | 4,788 | ||||||||
| Fees and other income | ||||||||||||||||
| Non-controlled/non-affiliated investments | $ | 111 | $ | 905 | $ | 262 | $ | 1,478 | ||||||||
| Non-controlled affiliated investments | — | 14 | — | 14 | ||||||||||||
| Total fees and other income | $ | 111 | $ | 919 | $ | 262 | $ | 1,492 | ||||||||
| Total investment income | $ | 16,337 | $ | 19,626 | $ | 32,863 | $ | 39,953 | ||||||||
| EXPENSES | ||||||||||||||||
| Management fees | $ | 1,680 | $ | 1,869 | $ | 3,409 | $ | 3,822 | ||||||||
| Performance-based incentive fees | 1,374 | 1,680 | 2,608 | 3,488 | ||||||||||||
| Interest and amortization of debt issuance costs | 5,365 | 6,372 | 11,091 | 12,704 | ||||||||||||
| Professional fees | 631 | 699 | 1,397 | 1,302 | ||||||||||||
| Administrative services expense | 361 | 659 | 717 | 1,330 | ||||||||||||
| Other general and administrative expenses | 449 | 432 | 939 | 863 | ||||||||||||
| Total expenses | $ | 9,860 | $ | 11,711 | $ | 20,161 | $ | 23,509 | ||||||||
| NET INVESTMENT INCOME | $ | 6,477 | $ | 7,915 | $ | 12,702 | $ | 16,444 | ||||||||
| REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS | ||||||||||||||||
| Net realized gains (losses) from investment transactions: | ||||||||||||||||
| Non-controlled/non-affiliated investments | $ | (694 | ) | $ | (5,267 | ) | $ | (2,335 | ) | $ | (8,352 | ) | ||||
| Non-controlled affiliated investments | — | (1,124 | ) | — | (1,124 | ) | ||||||||||
| Controlled affiliated investments | (6,228 | ) | (80 | ) | (6,644 | ) | (80 | ) | ||||||||
| Net realized gain (loss) on investments | $ | (6,922 | ) | $ | (6,471 | ) | $ | (8,979 | ) | $ | (9,556 | ) | ||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
| Non-controlled/non-affiliated investments | $ | (10,163 | ) | $ | (5,478 | ) | $ | (10,822 | ) | $ | (8,535 | ) | ||||
| Non-controlled affiliated investments | (2,055 | ) | 766 | (1,915 | ) | 455 | ||||||||||
| Controlled affiliated investments | 6,252 | 536 | 6,842 | (2,056 | ) | |||||||||||
| Net change in unrealized gain (loss) on investments | $ | (5,966 | ) | $ | (4,176 | ) | $ | (5,895 | ) | $ | (10,136 | ) | ||||
| Tax (provision) benefit on realized and unrealized gains (losses) on investments | $ | 78 | $ | (164 | ) | $ | 537 | $ | 407 | |||||||
| Net realized and unrealized appreciation (depreciation) on investments, net of taxes | $ | (12,810 | ) | $ | (10,811 | ) | $ | (14,337 | ) | $ | (19,285 | ) | ||||
| Net realized gain (loss) on extinguishment of debt | $ | (39 | ) | $ | (218 | ) | $ | (252 | ) | $ | (218 | ) | ||||
| NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (6,372 | ) | $ | (3,114 | ) | $ | (1,887 | ) | $ | (3,059 | ) | ||||
| Net Increase (Decrease) In Net Assets Resulting from Operations per Common Share: | ||||||||||||||||
| Basic and Diluted: | $ | (0.69 | ) | $ | (0.33 | ) | $ | (0.20 | ) | $ | (0.32 | ) | ||||
| Net Investment Income Per Common Share: | ||||||||||||||||
| Basic and Diluted: | $ | 0.70 | $ | 0.83 | $ | 1.36 | $ | 1.72 | ||||||||
| Weighted Average Shares of Common Stock Outstanding—Basic and Diluted | 9,293,687 | 9,541,722 | 9,319,272 | 9,548,424 | ||||||||||||
(1) During the six months ended June 30, 2024, 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 discount accretion 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's (PTMN) Net Investment Income per share in Q2 2024?
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