Runway Growth Finance Corp. Reports Second Quarter 2024 Financial Results
Runway Growth Finance Corp. (Nasdaq: RWAY) reported its Q2 2024 financial results, highlighting total investment income of $34.2 million and net investment income of $14.6 million or $0.37 per share.
The company managed an investment portfolio valued at $1.1 billion and repurchased 1,074,842 shares under a $25 million repurchase program. They declared a regular dividend of $0.40 per share and a supplemental dividend of $0.05 per share for Q3 2024.
Key metrics include a NAV per share of $13.14, and a dollar-weighted annualized yield on debt investments of 15.1%. Operating expenses decreased to $19.6 million from $22.2 million year-over-year. However, net realized gain on investments was zero, and there was an unrealized loss of $6.3 million.
Runway Growth completed two new investments totaling $75.5 million in funded loans and received $25.3 million in principal prepayments. The company maintains a strong liquidity position with $249.8 million available, including $8.8 million in cash.
Runway Growth Finance Corp. (Nasdaq: RWAY) ha riportato i risultati finanziari del secondo trimestre 2024, evidenziando un reddito totale da investimenti di 34,2 milioni di dollari e un reddito netto da investimenti di 14,6 milioni di dollari, pari a 0,37 dollari per azione.
La società ha gestito un portafoglio di investimenti del valore di 1,1 miliardi di dollari e ha riacquistato 1.074.842 azioni nell'ambito di un programma di riacquisto di 25 milioni di dollari. Hanno dichiarato un dividendo regolare di 0,40 dollari per azione e un dividendo supplementare di 0,05 dollari per azione per il terzo trimestre 2024.
Le metriche chiave includono un NAV per azione di 13,14 dollari e un rendimento annualizzato ponderato per il debito degli investimenti del 15,1%. Le spese operative sono diminuite a 19,6 milioni di dollari rispetto ai 22,2 milioni di dollari dell'anno precedente. Tuttavia, il guadagno realizzato netto sugli investimenti è stato nullo e si è registrata una perdita non realizzata di 6,3 milioni di dollari.
Runway Growth ha completato due nuovi investimenti per un totale di 75,5 milioni di dollari in prestiti finanziati e ha ricevuto 25,3 milioni di dollari in rimborsi di capitale. La società mantiene una solida posizione di liquidità con 249,8 milioni di dollari disponibili, di cui 8,8 milioni in contante.
Runway Growth Finance Corp. (Nasdaq: RWAY) reportó sus resultados financieros del segundo trimestre de 2024, destacando un ingreso total por inversiones de 34,2 millones de dólares y un ingreso neto por inversiones de 14,6 millones de dólares o 0,37 dólares por acción.
La empresa gestionó una cartera de inversiones valorada en 1,1 mil millones de dólares y recompró 1.074.842 acciones bajo un programa de recompra de 25 millones de dólares. Declararon un dividendo regular de 0,40 dólares por acción y un dividendo adicional de 0,05 dólares por acción para el tercer trimestre de 2024.
Métricas clave incluyen un NAV por acción de 13,14 dólares y un rendimiento anualizado ponderado en inversiones de deuda del 15,1%. Los gastos operativos disminuyeron a 19,6 millones de dólares desde 22,2 millones de dólares en el año anterior. Sin embargo, la ganancia neta realizada sobre inversiones fue cero y hubo una pérdida no realizada de 6,3 millones de dólares.
Runway Growth completó dos nuevas inversiones que totalizan 75,5 millones de dólares en préstamos financiados y recibió 25,3 millones de dólares en amortizaciones anticipadas de capital. La empresa mantiene una sólida posición de liquidez con 249,8 millones de dólares disponibles, incluyendo 8,8 millones en efectivo.
Runway Growth Finance Corp. (Nasdaq: RWAY)는 2024년 2분기 재무 결과를 발표하며 총 투자 수익이 3420만 달러, 순 투자 수익이 1460만 달러 또는 주당 0.37달러에 달한다고 강조했다.
회사는 11억 달러 규모의 투자 포트폴리오를 관리하고 있으며, 2500만 달러 규모의 자사주 매입 프로그램에 따라 1,074,842주를 재매입했다. 그들은 2024년 3분기에 주당 0.40달러의 정기 배당금과 0.05달러의 추가 배당금을 선언했다.
주요 지표로는 주당 13.14달러의 NAV와 채무 투자에 대한 달러 가중 연환산 수익률이 15.1%임을 포함하고 있다. 운영 비용은 작년 대비 2220만 달러에서 1960만 달러로 감소했다. 그러나 투자에서 실현된 순이익은 제로였고, 630만 달러의 미실현 손실이 발생했다.
Runway Growth는 총 7550만 달러의 자금을 조달한 두 건의 새로운 투자를 완료했으며, 원금 선지급으로 2530만 달러를 받았다. 회사는 880만 달러의 현금을 포함하여 2억 4980만 달러가 사용 가능한 장기 재무 상태를 유지하고 있다.
Runway Growth Finance Corp. (Nasdaq: RWAY) a annoncé ses résultats financiers pour le deuxième trimestre 2024, mettant en avant un revenu total d'investissement de 34,2 millions de dollars et un revenu net d'investissement de 14,6 millions de dollars, soit 0,37 dollar par action.
La société a géré un portefeuille d'investissements d'une valeur de 1,1 milliard de dollars et a racheté 1 074 842 actions dans le cadre d'un programme de rachat de 25 millions de dollars. Ils ont déclaré un dividende régulier de 0,40 dollar par action et un dividende complémentaire de 0,05 dollar par action pour le troisième trimestre 2024.
Les indicateurs clés incluent une valeur nette d'actif (NAV) par action de 13,14 dollars, ainsi qu'un rendement annualisé pondéré en dollars des investissements en dette de 15,1%. Les frais d'exploitation ont diminué à 19,6 millions de dollars, contre 22,2 millions de dollars l'année précédente. Cependant, le gain net réalisé sur les investissements était nul et une perte non réalisée de 6,3 millions de dollars a été enregistrée.
Runway Growth a réalisé deux nouveaux investissements totalisant 75,5 millions de dollars en prêts financés et a reçu 25,3 millions de dollars de remboursements anticipés en capital. La société maintient une solide position de liquidité avec 249,8 millions de dollars disponibles, dont 8,8 millions de dollars en espèces.
Runway Growth Finance Corp. (Nasdaq: RWAY) hat seine Finanzzahlen für das 2. Quartal 2024 veröffentlicht und hebt ein Gesamteinkommen aus Investitionen von 34,2 Millionen Dollar sowie ein netto Einkommen aus Investitionen von 14,6 Millionen Dollar oder 0,37 Dollar pro Aktie hervor.
Das Unternehmen verwaltete ein Investitionsportfolio im Wert von 1,1 Milliarden Dollar und kaufte 1.074.842 Aktien im Rahmen eines Rückkaufprogramms über 25 Millionen Dollar zurück. Sie erklärten eine reguläre Dividende von 0,40 Dollar pro Aktie und eine Zusatzdividende von 0,05 Dollar pro Aktie für das 3. Quartal 2024.
Wichtige Kennzahlen umfassen einen NAV pro Aktie von 13,14 Dollar und eine dollarbewertete annualisierte Rendite auf Schuldeninvestitionen von 15,1%. Die Betriebskosten sanken im Jahresvergleich von 22,2 Millionen Dollar auf 19,6 Millionen Dollar. Dennoch betrug der realisierte Nettogewinn aus Investitionen null, und es gab einen unrealisierten Verlust von 6,3 Millionen Dollar.
Runway Growth hat zwei neue Investitionen in Höhe von insgesamt 75,5 Millionen Dollar in finanzierten Krediten abgeschlossen und erhielt 25,3 Millionen Dollar an vorzeitigen Kapitalrückzahlungen. Das Unternehmen hält eine starke Liquiditätsposition mit 249,8 Millionen Dollar, darunter 8,8 Millionen Dollar in bar.
- Total investment income of $34.2 million.
- Net investment income of $14.6 million or $0.37 per share.
- NAV per share of $13.14.
- Repurchase of 1,074,842 shares under $25 million repurchase program.
- Declared Q3 regular dividend of $0.40 per share and supplemental dividend of $0.05 per share.
- Dollar-weighted annualized yield on debt investments of 15.1%.
- Strong liquidity with $249.8 million available.
- Total investment income decreased from $41.9 million year-over-year.
- Net investment income decreased from $19.7 million year-over-year.
- Net asset value per share decreased to $13.14 from $14.17 year-over-year.
- Net change in unrealized loss on investments was $6.3 million.
- Total operating expenses of $19.6 million, despite a decrease year-over-year.
Insights
Runway Growth Finance Corp.'s Q2 2024 results show mixed performance. Total investment income decreased to
The company's investment portfolio grew to
Runway Growth's Q2 results reveal challenges in the current market environment. The decrease in total and net investment income suggests pressure on deal flow and portfolio performance. However, the company's ability to maintain a high yield on debt investments (
The increase in leverage and decline in NAV are concerning, potentially indicating higher risk or reduced portfolio quality. Investors should monitor these metrics closely. The company's focus on senior secured loans (
Runway Growth's Q2 results reflect broader trends in the venture debt market. The decrease in investment income and NAV suggests a more challenging environment for late-stage and growth companies. However, the company's ability to deploy
The increase in core leverage ratio to
Delivered Total and Net Investment Income of
Investment Portfolio of
Conference Call Today, Thursday, August 8, 2024 at 5:00 p.m. ET
MENLO PARK, Calif., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Runway Growth Finance Corp. (Nasdaq: RWAY) (“Runway Growth” or the “Company”), a leading provider of flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity, today announced its financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Total investment income of
$34.2 million - Net investment income of
$14.6 million , or$0.37 per share - Net asset value of
$13.14 per share - Dollar-weighted annualized yield on debt investments of
15.1% for the quarter - Two investments completed in new portfolio companies representing
$75.5 million in funded loans - Aggregate proceeds of
$25.3 million received from principal prepayments, and$1.3 million received from scheduled amortizations - Repurchased 1,074,842 shares of the Company's common stock during the second quarter under previously authorized
$25.0 million share repurchase program
Third Quarter 2024 Distributions
- Declared third quarter 2024 regular dividend of
$0.40 per share - Declared third quarter 2024 supplemental dividend of
$0.05 per share
“In the second quarter, Runway Growth executed on two new investments as the Company thoughtfully expanded its high quality, late-stage portfolio,” said David Spreng, Founder and CEO of Runway Growth. “Heading into the second half of the year our pipeline is strong, and we remain focused on the performance of our portfolio while capitalizing on opportunities to re-deploy capital and increase the overall diversification of our investments. As a result of our strict underwriting and ongoing monitoring of our portfolio, we feel confident in our ability to position our shareholders for long-term returns.”
Second Quarter 2024 Operating Results
Total investment income for the quarter ended June 30, 2024 was
Net investment income for the quarter ended June 30, 2024 was
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended June 30, 2024 was
Total operating expenses for the quarter ended June 30, 2024 were
Net realized gain (loss) on investments was zero for both quarters ended June 30, 2024 and June 30, 2023.
For the quarter ended June 30, 2024, net change in unrealized loss on investments was
Portfolio and Investment Activity
As of June 30, 2024, Runway Growth’s investment portfolio had an aggregate fair value of approximately
During the second quarter of 2024, Runway Growth funded
Total portfolio investment activity for the three and six months ended June 30, 2024 was as follows:
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| Beginning investment portfolio | $ | 1,016,332 | $ | 1,160,316 | $ | 1,067,009 | $ | 1,126,309 | |||||||||||
| Purchases of investments | 75,383 | 50,669 | 100,025 | 63,540 | |||||||||||||||
| Purchases of U.S. Treasury Bills | — | — | — | 34,974 | |||||||||||||||
| PIK interest | 2,687 | 6,028 | 6,863 | 9,783 | |||||||||||||||
| Sales and prepayments of investments | (25,312 | ) | (88,709 | ) | (59,761 | ) | (98,901 | ) | |||||||||||
| Scheduled repayments of investments | (1,333 | ) | (2,764 | ) | (1,746 | ) | (6,771 | ) | |||||||||||
| Sales and maturities of U.S. Treasury Bills | — | (35,000 | ) | (42,029 | ) | (35,000 | ) | ||||||||||||
| Amortization of fixed income premiums or accretion of discounts | 1,867 | 2,137 | 5,880 | 5,005 | |||||||||||||||
| Net realized gain (loss) on investments | — | — | — | (1,178 | ) | ||||||||||||||
| Net change in unrealized gain (loss) on investments | (6,300 | ) | 2,644 | (12,917 | ) | (2,440 | ) | ||||||||||||
| Ending investment portfolio | $ | 1,063,324 | $ | 1,095,321 | $ | 1,063,324 | $ | 1,095,321 | |||||||||||
Net Asset Value
As of June 30, 2024, net asset value (“NAV”) per share was
For the quarter ended June 30, 2024, net increase in net assets resulting from operations was
Liquidity and Capital Resources
As of June 30, 2024, the Company had approximately
The Company ended the quarter with a core leverage ratio of approximately
Distributions
On July 30, 2024, the Company’s board of directors declared a regular quarterly distribution of
Share Repurchase Program
On November 2, 2023, the Company’s board of directors approved a share repurchase program (the “Repurchase Program”), under which the Company may repurchase up to
On July 30, 2024, the Company’s board of directors approved a new share repurchase program (the “New Repurchase Program”) under which the Company may repurchase up to
Recent Developments
The Company evaluated events subsequent to June 30, 2024 through August 8, 2024, the date the consolidated financial statements were issued.
On July 17, 2024, the Company increased its commitment to Elevate Services Inc. by
On July 30, 2024, the Company's board of directors declared a regular distribution of
On July 31, 2024, Cloudpay, Inc. prepaid its outstanding principal balance of
Conference Call
Runway Growth will hold a conference call to discuss its second quarter ended June 30, 2024 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Thursday, August 8, 2024. To participate in the conference call or webcast, participants should register online at the Runway Investor Relations website. The earnings call can also be accessed through the following links:
A live webcast will be available in the investor section of the Company’s website, and will be archived for 90 days following the call.
About Runway Growth Finance Corp.
Runway Growth is a growing specialty finance company focused on providing flexible capital solutions to late- and growth-stage companies seeking an alternative to raising equity. Runway Growth is a closed-end investment fund that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. Runway Growth is externally managed by Runway Growth Capital LLC, an established registered investment advisor that was formed in 2015 and led by industry veteran David Spreng. For more information, please visit www.runwaygrowth.com.
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition 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 Runway Growth’s filings with the Securities and Exchange Commission. Runway Growth undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Important Disclosures
Strategies described involve special risks that should be evaluated carefully before a decision is made to invest. Not all of the risks and other significant aspects of these strategies are discussed herein. Please see a more detailed discussion of these risk factors and other related risks in the Company’s most recent annual report on Form 10-K in the section entitled “Risk Factors”, which may be obtained on the Company’s website, www.runwaygrowth.com, or the SEC’s website, www.sec.gov.
IR Contacts:
Stefan Norbom, Prosek Partners, snorbom@prosek.com
Thomas B. Raterman, Chief Financial Officer and Chief Operating Officer, tr@runwaygrowth.com
| RUNWAY GROWTH FINANCE CORP. Consolidated Statements of Assets and Liabilities (In thousands, except share and per share data) | ||||||||||
| June 30, 2024 | December 31, 2023 | |||||||||
| (Unaudited) | ||||||||||
| Assets | ||||||||||
| Investments at fair value: | ||||||||||
| Non-control/non-affiliate investments at fair value (cost of | $ | 1,011,472 | $ | 972,604 | ||||||
| Affiliate investments at fair value (cost of | 50,373 | 51,456 | ||||||||
| Control investments at fair value (cost of | 1,479 | 950 | ||||||||
| Investment in U.S. Treasury Bills at fair value (cost of | — | 41,999 | ||||||||
| Total investments at fair value (cost of | 1,063,324 | 1,067,009 | ||||||||
| Cash and cash equivalents | 8,810 | 2,970 | ||||||||
| Interest and fees receivable | 5,760 | 8,269 | ||||||||
| Other assets | 342 | 905 | ||||||||
| Total assets | 1,078,236 | 1,079,153 | ||||||||
| Liabilities | ||||||||||
| Debt: | ||||||||||
| Credit facility | 309,000 | 272,000 | ||||||||
| 2026 Notes | 95,000 | 95,000 | ||||||||
| 2027 Notes | 152,250 | 152,250 | ||||||||
| Unamortized deferred debt costs | (7,562 | ) | (9,172 | ) | ||||||
| Total debt, less unamortized deferred debt costs | 548,688 | 510,078 | ||||||||
| Incentive fees payable | 13,865 | 12,500 | ||||||||
| Interest payable | 7,010 | 6,764 | ||||||||
| Accrued expenses and other liabilities | 2,289 | 2,740 | ||||||||
| Total liabilities | 571,852 | 532,082 | ||||||||
| Net assets | ||||||||||
| Common stock, par value | 414 | 414 | ||||||||
| Additional paid-in capital | 605,108 | 605,110 | ||||||||
| Distributable earnings (losses) | (64,872 | ) | (47,637 | ) | ||||||
| Treasury stock | (34,266 | ) | (10,816 | ) | ||||||
| Total net assets | $ | 506,384 | $ | 547,071 | ||||||
| Shares of common stock outstanding ( | 38,547,295 | 40,509,269 | ||||||||
| Net asset value per share | $ | 13.14 | $ | 13.50 | ||||||
| RUNWAY GROWTH FINANCE CORP. Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) | ||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||
| Investment income | ||||||||||||||||||||
| From non-control/non-affiliate investments: | ||||||||||||||||||||
| Interest income | $ | 30,935 | $ | 33,818 | $ | 65,390 | $ | 68,671 | ||||||||||||
| Payment-in-kind interest income | 2,330 | 6,425 | 6,537 | 10,221 | ||||||||||||||||
| Dividend income | — | 319 | — | 643 | ||||||||||||||||
| Fee income | 187 | 615 | 807 | 660 | ||||||||||||||||
| From affiliate investments: | ||||||||||||||||||||
| Interest income | 600 | 593 | 1,199 | 885 | ||||||||||||||||
| Other income | 141 | 125 | 269 | 125 | ||||||||||||||||
| Total investment income | 34,193 | 41,895 | 74,202 | 81,205 | ||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Management fees | 3,946 | 4,337 | 7,898 | 8,296 | ||||||||||||||||
| Incentive fees | 3,649 | 4,920 | 8,317 | 9,483 | ||||||||||||||||
| Interest and other debt financing expenses | 10,867 | 11,410 | 21,727 | 22,330 | ||||||||||||||||
| Professional fees | 253 | 490 | 915 | 1,038 | ||||||||||||||||
| Administration agreement expenses | 472 | 615 | 1,036 | 1,198 | ||||||||||||||||
| Insurance expense | 209 | 268 | 417 | 536 | ||||||||||||||||
| Tax expense | — | — | 2 | 50 | ||||||||||||||||
| Other expenses | 206 | 179 | 635 | 352 | ||||||||||||||||
| Total operating expenses | 19,602 | 22,219 | 40,947 | 43,283 | ||||||||||||||||
| Net investment income | 14,591 | 19,676 | 33,255 | 37,922 | ||||||||||||||||
| Net realized and net change in unrealized gain (loss) on investments | ||||||||||||||||||||
| Net realized gain (loss) on non-control/non-affiliate investments, including U.S. Treasury Bills | — | — | — | (1,178 | ) | |||||||||||||||
| Net realized gain (loss) on investments, including U.S. Treasury Bills | — | — | — | (1,178 | ) | |||||||||||||||
| Net change in unrealized gain (loss) on non-control/non-affiliate investments, including U.S. Treasury Bills | (6,484 | ) | 1,538 | (11,549 | ) | 117 | ||||||||||||||
| Net change in unrealized gain (loss) on affiliate investments | 305 | (103 | ) | (1,247 | ) | (6,089 | ) | |||||||||||||
| Net change in unrealized gain (loss) on control investments | (121 | ) | 1,209 | (121 | ) | 3,532 | ||||||||||||||
| Net change in unrealized gain (loss) on investments, including U.S. Treasury Bills | (6,300 | ) | 2,644 | (12,917 | ) | (2,440 | ) | |||||||||||||
| Net realized and unrealized gain (loss) on investments | (6,300 | ) | 2,644 | (12,917 | ) | (3,618 | ) | |||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 8,291 | $ | 22,320 | $ | 20,338 | $ | 34,304 | ||||||||||||
| Net investment income per common share (basic and diluted) | $ | 0.37 | $ | 0.49 | $ | 0.84 | $ | 0.94 | ||||||||||||
| Net increase (decrease) in net assets resulting from operations per common share (basic and diluted) | $ | 0.21 | $ | 0.55 | $ | 0.51 | $ | 0.85 | ||||||||||||
| Weighted average shares outstanding (basic and diluted) | 39,180,767 | 40,509,269 | 39,786,511 | 40,509,269 | ||||||||||||||||
FAQ
What was Runway Growth Finance Corp.'s total investment income in Q2 2024?
What is the net asset value (NAV) per share for Runway Growth Finance Corp.?
How many shares did Runway Growth Finance Corp. repurchase in Q2 2024?
What dividends did Runway Growth Finance Corp. declare for Q3 2024?
What was the dollar-weighted annualized yield on debt investments for Runway Growth Finance Corp. in Q2 2024?
What were Runway Growth Finance Corp.'s net investment income and earnings per share in Q2 2024?
