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Runway Growth Finance Corp. Reports Third Quarter 2024 Financial Results

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Runway Growth Finance Corp. (Nasdaq: RWAY) reported its Q3 2024 financial results on November 12, 2024. The company achieved total investment income of $36.7 million and net investment income of $15.9 million, or $0.41 per share. The net asset value (NAV) per share was $13.39, down from $14.08 a year earlier. The investment portfolio's fair value stood at $1.07 billion.

Key activities included seven new investments totaling $74.0 million, $75.0 million in principal prepayments, and the repurchase of 644,763 shares. The company declared a $0.40 per share dividend for Q4 2024.

Runway Growth's investment adviser announced a business combination with BC Partners, expected to enhance origination opportunities and financing solutions. Post quarter-end, the company received several loan repayments totaling $28.6 million and repurchased 528,305 shares.

The conference call to discuss these results is scheduled for November 12, 2024, at 5:00 p.m. ET.

Runway Growth Finance Corp. (Nasdaq: RWAY) ha riportato i risultati finanziari del terzo trimestre 2024 il 12 novembre 2024. L'azienda ha registrato un reddito totale da investimenti di 36,7 milioni di dollari e un reddito netto da investimenti di 15,9 milioni di dollari, pari a 0,41 dollari per azione. Il valore patrimoniale netto (NAV) per azione era di 13,39 dollari, in calo rispetto ai 14,08 dollari dell'anno precedente. Il valore equo del portafoglio di investimenti si è attestato a 1,07 miliardi di dollari.

Le attività chiave hanno incluso sette nuovi investimenti per un totale di 74,0 milioni di dollari, 75,0 milioni di dollari in rimborsi di capitale e il riacquisto di 644.763 azioni. L'azienda ha dichiarato un dividendo di 0,40 dollari per azione per il quarto trimestre 2024.

Il consulente per gli investimenti di Runway Growth ha annunciato una combinazione aziendale con BC Partners, prevista per migliorare le opportunità di origine e le soluzioni di finanziamento. Dopo la fine del trimestre, l'azienda ha ricevuto diversi rimborsi di prestiti per un totale di 28,6 milioni di dollari e ha riacquistato 528.305 azioni.

La conference call per discutere questi risultati è programmata per il 12 novembre 2024 alle 17:00 ET.

Runway Growth Finance Corp. (Nasdaq: RWAY) reportó sus resultados financieros del tercer trimestre de 2024 el 12 de noviembre de 2024. La empresa logró un ingreso total por inversiones de 36.7 millones de dólares y un ingreso neto por inversiones de 15.9 millones de dólares, es decir, 0.41 dólares por acción. El valor neto de los activos (NAV) por acción fue de 13.39 dólares, disminuyendo desde los 14.08 dólares del año anterior. El valor razonable de la cartera de inversiones se situó en 1.07 mil millones de dólares.

Las actividades clave incluyeron siete nuevas inversiones que totalizaron 74.0 millones de dólares, 75.0 millones de dólares en pagos anticipados de principal y el recompra de 644,763 acciones. La empresa declaró un dividendo de 0.40 dólares por acción para el cuarto trimestre de 2024.

El asesor de inversiones de Runway Growth anunció una combinación empresarial con BC Partners, que se espera que mejore las oportunidades de originación y las soluciones de financiamiento. Después del cierre del trimestre, la empresa recibió varios reembolsos de préstamos que totalizaron 28.6 millones de dólares y recompró 528,305 acciones.

La conferencia telefónica para discutir estos resultados está programada para el 12 de noviembre de 2024 a las 5:00 p.m. ET.

Runway Growth Finance Corp. (Nasdaq: RWAY)는 2024년 11월 12일에 2024년 3분기 재무 결과를 발표했습니다. 회사는 총 투자 수익 3,670만 달러와 순 투자 수익 1,590만 달러를 달성했으며, 주당 0.41달러의 수익을 기록했습니다. 순 자산 가치 (NAV) 주가는 13.39달러로, 작년의 14.08달러에서 하락했습니다. 투자 포트폴리오의 공정 가치는 10억 7천만 달러에 달했습니다.

주요 활동으로는 7개의 새로운 투자 총 7천4백만 달러, 7천5백만 달러의 원금 선지급, 그리고 644,763주를 재매입한 것이 포함되었습니다. 회사는 2024년 4분기 주당 0.40달러의 배당금을 선언했습니다.

Runway Growth의 투자 고문은 BC 파트너스와의 비즈니스 조합을 발표했으며, 이는 기원 기회 및 재정 솔루션을 향상시킬 것으로 기대됩니다. 분기 종료 후 회사는 2천8백6십만 달러에 달하는 여러 대출 상환을 받았으며, 528,305주를 다시 매입했습니다.

이 결과를 논의하기 위한 컨퍼런스 콜은 2024년 11월 12일 오후 5시(동부 표준시)로 예정되어 있습니다.

Runway Growth Finance Corp. (Nasdaq: RWAY) a publié ses résultats financiers du troisième trimestre 2024 le 12 novembre 2024. L'entreprise a réalisé un revenu total des investissements de 36,7 millions de dollars et un revenu net des investissements de 15,9 millions de dollars, soit 0,41 dollar par action. La valeur nette des actifs (NAV) par action était de 13,39 dollars, en baisse par rapport à 14,08 dollars l'année précédente. La valeur marchande du portefeuille d'investissement s'élevait à 1,07 milliard de dollars.

Les activités clés comprenaient sept nouveaux investissements totalisant 74,0 millions de dollars, 75,0 millions de dollars de remboursements de principal et le rachat de 644 763 actions. L'entreprise a déclaré un dividende de 0,40 dollar par action pour le quatrième trimestre 2024.

Le conseiller en investissement de Runway Growth a annoncé une combinaison d'affaires avec BC Partners, qui devrait améliorer les opportunités d'origine et les solutions de financement. Après la clôture du trimestre, la société a reçu plusieurs remboursements de prêts totalisant 28,6 millions de dollars et a racheté 528 305 actions.

La conférence téléphonique pour discuter de ces résultats est prévue pour le 12 novembre 2024 à 17h00 ET.

Runway Growth Finance Corp. (Nasdaq: RWAY) hat am 12. November 2024 seine finanziellen Ergebnisse für das Q3 2024 veröffentlicht. Das Unternehmen erzielte ein Gesamtanlagergebnis von 36,7 Millionen US-Dollar und ein Nettoanlagergebnis von 15,9 Millionen US-Dollar, oder 0,41 US-Dollar pro Aktie. Der Nettoinventarwert (NAV) pro Aktie betrug 13,39 US-Dollar und fiel damit von 14,08 US-Dollar im Vorjahr. Der faire Wert des Anlageportfolios lag bei 1,07 Milliarden US-Dollar.

Zu den wichtigsten Aktivitäten gehörten sieben neue Investitionen in Höhe von insgesamt 74,0 Millionen US-Dollar, 75,0 Millionen US-Dollar an Kapitalrückzahlungen und der Rückkauf von 644.763 Aktien. Das Unternehmen erklärte eine Dividende von 0,40 US-Dollar pro Aktie für das Q4 2024.

Der Anlageberater von Runway Growth kündigte eine Unternehmenszusammenlegung mit BC Partners an, die dazu beitragen soll, die Origination-Möglichkeiten und Finanzierungslösungen zu verbessern. Nach Ende des Quartals erhielt das Unternehmen mehrere Rückzahlungen von Krediten in Höhe von insgesamt 28,6 Millionen US-Dollar und kaufte 528.305 Aktien zurück.

Die Telefonkonferenz zur Diskussion dieser Ergebnisse ist für den 12. November 2024 um 17:00 Uhr ET angesetzt.

Positive
  • Total investment income of $36.7 million.
  • Net investment income of $15.9 million, or $0.41 per share.
  • Seven new investments totaling $74.0 million.
  • Repurchased 644,763 shares.
  • Declared a $0.40 per share dividend for Q4 2024.
  • Business combination with BC Partners to enhance origination opportunities.
Negative
  • Net asset value per share decreased to $13.39 from $14.08 a year earlier.
  • Total investment income decreased from $43.8 million in Q3 2023 to $36.7 million in Q3 2024.
  • Net investment income decreased from $22.0 million in Q3 2023 to $15.9 million in Q3 2024.

Insights

The Q3 results show mixed performance with some concerning trends. $36.7M total investment income marks a 16.2% decline from $43.8M in Q3 2023. Net investment income dropped to $15.9M ($0.41/share) from $22.0M ($0.54/share) YoY. The portfolio yield remains healthy at 15.9%, but NAV per share declined to $13.39 from $14.08 YoY.

Notable positives include $75.3M in new investments and strong liquidity with $251.6M available. The leverage ratio improved slightly to 108%. The announced BC Partners merger could strengthen origination capabilities, though integration risks exist. The maintained $0.40 quarterly dividend suggests stable near-term distribution policy despite earnings pressure.

The BDC's portfolio composition remains defensive with 98.6% in senior secured loans across 57 companies, providing good downside protection. However, the $84.9M in prepayments and assignments exceeded new originations of $74.0M, indicating some portfolio contraction. The share repurchase program remains active with 644,763 shares bought back, helping support the stock price.

The strategic merger with BC Partners could be transformative, potentially providing access to larger deals and enhanced market positioning. The key risk is maintaining credit quality during the transition period. The current $1.07B portfolio size and strong liquidity position provide a solid foundation for future growth.

Delivered Total and Net Investment Income of $36.7 million and $15.9 million, Respectively
Investment Portfolio of $1.1 billion
Conference Call Today, Tuesday, November 12, 2024, at 5:00 p.m. ET

MENLO PARK, Calif., Nov. 12, 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 third quarter ended September 30, 2024.

Third Quarter 2024 Highlights

  • Total investment income of $36.7 million
  • Net investment income of $15.9 million, or $0.41 per share
  • Net asset value of $13.39 per share
  • Dollar-weighted annualized yield on debt investments of 15.9%
  • Two investments completed in new portfolio companies, four investments with existing portfolio companies, and one investment with our joint venture, representing $75.3 million in funded investments
  • Aggregate proceeds of $75.0 million in a principal prepayment, $10.0 million from an assignment to our joint venture, and $0.6 million from scheduled amortizations
  • Repurchased 644,763 shares of the Company's common stock during the third quarter under previously authorized share repurchase program

Fourth Quarter 2024 Distributions

  • Declared fourth quarter 2024 regular dividend of $0.40 per share

“Runway Growth delivered strong financial performance in the third quarter, reporting sequential net investment income growth and solid originations,” said David Spreng, Founder and CEO of Runway Growth. “Additionally, we funded seven investments during the quarter, expanding our high-quality portfolio of late and growth stage companies. Subsequent to quarter end, RWAY’s investment adviser announced a business combination with BC Partners that will present the BDC with expanded origination opportunities, enhanced financing solutions, and continuity of leadership for years to come. As we near the end of 2024, we believe the Company is positioned to accelerate growth and drive long-term shareholder value.”

Third Quarter 2024 Operating Results

Total investment income for the quarter ended September 30, 2024 was $36.7 million, compared to $43.8 million for the quarter ended September 30, 2023.

Net investment income for the quarter ended September 30, 2024 was $15.9 million, or $0.41 per share, compared to $22.0 million, or $0.54 per share, for the quarter ended September 30, 2023.

The Company's dollar-weighted annualized yield on average debt investments for the quarter ended September 30, 2024 was 15.9%. The Company calculates the yield on dollar-weighted debt investments for any period measured as (1) total investment-related income during the period divided by (2) the daily average of the fair value of debt investments, including investments on non-accrual status, outstanding during the period.

Total operating expenses for the quarter ended September 30, 2024 were $20.8 million, compared to $21.7 million for the quarter ended September 30, 2023.

Net realized gain (loss) on investments was zero for both quarters ended September 30, 2024 and September 30, 2023.

For the quarter ended September 30, 2024, net change in unrealized gain on investments was $9.2 million, compared to a net change in unrealized loss on investments of $7.2 million for the comparable prior year period.

Portfolio and Investment Activity

As of September 30, 2024, Runway Growth’s investment portfolio had an aggregate fair value of approximately $1.07 billion in 57 portfolio companies, and was comprised of approximately $1.00 billion in term loans, 98.6% of which are senior secured loans, and $62.2 million in warrants and other equity-related investments.

During the third quarter of 2024, Runway Growth funded two investments in new portfolio companies and five investments in existing companies, representing $74.0 million in funded loans, net of upfront loan origination fees.

Total portfolio investment activity for the three and nine months ended September 30, 2024 was as follows:

      
 Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
 2024  2023  2024  2023 
Beginning investment portfolio$1,063,324  $1,095,321  $1,067,009  $1,126,309 
Purchases of investments 74,004   41,987   174,029   105,527 
Purchases of U.S. Treasury Bills          34,974 
PIK interest 2,719   5,551   9,582   15,334 
Sales and prepayments of investments (84,900)  (126,770)  (144,661)  (225,671)
Scheduled repayments of investments (634)  (275)  (2,380)  (7,046)
Sales and maturities of U.S. Treasury Bills       (42,029)  (35,000)
Amortization of fixed income premiums or accretion of discounts 2,413   2,327   8,293   7,332 
Net realized gain (loss) on investments          (1,178)
Net change in unrealized gain (loss) on investments 9,174   (7,214)  (3,743)  (9,654)
Ending investment portfolio$1,066,100  $1,010,927  $1,066,100  $1,010,927 
                
                

Net Asset Value

As of September 30, 2024, net asset value (“NAV”) per share was $13.39, compared to $14.08 as of September 30, 2023. Total net assets at the end of the third quarter was $507.4 million, down 11% from $570.5 million as of September 30, 2023.

For the quarter ended September 30, 2024, net increase in net assets resulting from operations was $25.0 million, or $0.65 per share, compared to a net increase in net assets resulting from operations of $14.8 million, or $0.37 per share, for the quarter ended September 30, 2023.

Liquidity and Capital Resources

As of September 30, 2024, the Company had approximately $251.6 million in available liquidity, including unrestricted cash and cash equivalents of $3.6 million and $248.0 million in available borrowing capacity under the Company’s credit facility, subject to existing terms, advance rates and regulatory and covenant requirements.

The Company ended the quarter with a core leverage ratio of approximately 108%, compared to 110% for the quarter ended June 30, 2024.

Distributions

On November 5, 2024, the Company’s board of directors declared a regular quarterly distribution of $0.40 per share for the fourth quarter of 2024, payable on December 2, 2024, to stockholders of record as of November 18, 2024.

Recent Developments

The Company evaluated events subsequent to September 30, 2024 through November 12, 2024, the date the consolidated financial statements were issued.

On October 9, 2024, the Company received a full repayment of $8.0 million on its senior secured loan to Betterment Holdings, Inc.

On October 16, 2024, the Company sold its outstanding warrants for Dtex Systems, Inc. for proceeds of $1.9 million.

On October 31, 2024, the Company received a partial repayment of $2.1 million on its senior secured loan to FiscalNote Holdings, Inc.

On October 31, 2024, the Company received a full repayment of $18.5 million on its senior secured loans to Predactiv, Inc. (fka Sharethis, Inc.).

On October 31, 2024, the Company announced that Runway Growth Capital LLC ("RGC") entered into an Agreement and Plan of Merger pursuant to which RGC Group Acquisition, LLC (the "New Owner"), a newly formed wholly owned subsidiary of BCP Special Opportunities Fund III, an affiliate of BC Partners Advisors L.P., will acquire RGC. The transaction will constitute a change of control of RGC, resulting in an assignment and subsequent termination of the Company's current investment advisory agreement with RGC (the "Current Advisory Agreement"). On October 29, 2024, the Board of Directors approved a proposed new investment advisory agreement (the "New Advisory Agreement") by and between the Company and RGC, the terms of which are identical to the Current Advisory Agreement. On November 1, 2024, the Company filed with the SEC, a preliminary proxy statement relating to a special meeting of the Company's stockholders, currently planned to be held on December 13, 2024, at which the Company will seek stockholder approval of the New Advisory Agreement. If approved, the New Advisory Agreement will take effect following the closing of the transaction between RGC and the New Owner.

On November 5, 2024, the Board of Directors declared a regular distribution of $0.40 per share for stockholders of record as of November 18, 2024 payable on or before December 2, 2024.

From October 1, 2024 through November 11, 2024, the Company repurchased 528,305 shares under the Third Repurchase Program.

Conference Call

Runway Growth will hold a conference call to discuss its third quarter ended September 30, 2024 financial results at 2:00 p.m. PT (5:00 p.m. ET) on Tuesday, November 12, 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:

Taylor Donahue, Prosek Partners, tdonahue@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)
      
 September 30,
2024
  December 31,
2023
 
 (Unaudited)    
Assets       
Investments at fair value:       
Non-control/non-affiliate investments at fair value (cost of $1,044,022 and $1,005,024, respectively)$1,000,405  $972,604 
Affiliate investments at fair value (cost of $59,111 and $58,861, respectively) 58,969   51,456 
Control investments at fair value (cost of $6,550 and $950, respectively) 6,726   950 
Investment in U.S. Treasury Bills at fair value (cost of $0 and $42,014, respectively)    41,999 
Total investments at fair value (cost of $1,109,683 and $1,106,849, respectively) 1,066,100   1,067,009 
Cash and cash equivalents 3,617   2,970 
Interest and fees receivable 5,653   8,269 
Other assets 208   905 
Total assets 1,075,578   1,079,153 
Liabilities       
Debt:       
Credit facility 302,000   272,000 
2026 Notes 95,000   95,000 
2027 Notes 152,250   152,250 
Unamortized deferred financing costs (6,738)  (9,172)
Total debt, less unamortized deferred financing costs 542,512   510,078 
Incentive fees payable 14,930   12,500 
Interest payable 8,810   6,764 
Accrued expenses and other liabilities 1,968   2,740 
Total liabilities 568,220   532,082 
Net assets       
Common stock, par value 414   414 
Additional paid-in capital 605,107   605,110 
Accumulated undistributed (overdistributed) earnings (57,169)  (47,637)
Treasury stock (40,994)  (10,816)
Total net assets$507,358  $547,071 
        
Shares of common stock outstanding ($0.01 par value, 100,000,000 shares authorized) 37,902,532   40,509,269 
Net asset value per share$13.39  $13.50 
        
        



      
RUNWAY GROWTH FINANCE CORP.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
      
 Three Months Ended
September 30,
  Nine Months Ended
September 30,
 
 2024 2023  2024  2023 
Investment income              
From non-control/non-affiliate investments:              
Interest income$32,253 $35,498  $97,643  $104,169 
Payment-in-kind interest income 2,757  5,195   9,294   15,416 
Dividend income   318      961 
Fee income 882  1,925   1,689   2,585 
From affiliate investments:              
Interest income 609  601   1,808   1,486 
Fee income   15      15 
Other income 150  227   419   352 
Total investment income 36,651  43,779   110,853   124,984 
Operating expenses              
Management fees 3,865  4,302   11,763   12,598 
Incentive fees 3,970  5,511   12,287   14,994 
Interest and other debt financing expenses 11,379  10,442   33,106   32,772 
Professional fees 528  466   1,443   1,504 
Administration agreement expenses 472  449   1,508   1,647 
Insurance expense 211  269   628   805 
Tax expense      2   50 
Other expenses 351  304   986   656 
Total operating expenses 20,776  21,743   61,723   65,026 
Net investment income 15,875  22,036   49,130   59,958 
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 367  (7,624)  (11,182)  (7,507)
Net change in unrealized gain (loss) on affiliate investments 8,510  410   7,263   (5,679)
Net change in unrealized gain (loss) on control investments 297     176   3,532 
Net change in unrealized gain (loss) on investments, including U.S. Treasury Bills 9,174  (7,214)  (3,743)  (9,654)
Net realized and unrealized gain (loss) on investments 9,174  (7,214)  (3,743)  (10,832)
Net increase (decrease) in net assets resulting from operations$25,049 $14,822  $45,387  $49,126 
Net investment income per common share (basic and diluted)$0.41 $0.54  $1.25  $1.48 
Net increase (decrease) in net assets resulting from operations per common share (basic and diluted)$0.65 $0.37  $1.15  $1.21 
Weighted average shares outstanding (basic and diluted) 38,390,854  40,509,269   39,317,890   40,509,269 

FAQ

What were Runway Growth Finance's total investment income and net investment income for Q3 2024?

Runway Growth Finance reported total investment income of $36.7 million and net investment income of $15.9 million for Q3 2024.

What is the net asset value (NAV) per share for Runway Growth Finance as of September 30, 2024?

The net asset value per share for Runway Growth Finance was $13.39 as of September 30, 2024.

How many shares did Runway Growth Finance repurchase in Q3 2024?

Runway Growth Finance repurchased 644,763 shares in Q3 2024.

What dividend did Runway Growth Finance declare for Q4 2024?

Runway Growth Finance declared a $0.40 per share dividend for Q4 2024.

What was the impact of the business combination with BC Partners on Runway Growth Finance?

The business combination with BC Partners is expected to enhance origination opportunities, financing solutions, and continuity of leadership for Runway Growth Finance.

Runway Growth Finance Corp.

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