Stellus Capital Investment Corporation Reports Results for its Third Fiscal Quarter Ended September 30, 2021, Highlighted by an Increase in its Regular Quarterly Dividend to $0.28 per Share

Rhea-AI Summary

Stellus Capital Investment Corporation (NYSE: SCM) reported strong Q3 2021 results, highlighting a core net investment income of $0.31 per share, surpassing the $0.27 dividend. The net investment income on a GAAP basis was $0.21 per share. The firm achieved $7.9 million in realized gains, leading to an increase in net asset value and a dividend hike to $0.28 for Q4. The investment portfolio's fair value remained stable, with year-to-date investments at $243 million. Total assets reached $827 million and net assets stood at $275.6 million.

Positive

• Core net investment income of $0.31 per share covered the dividend of $0.27.
• Realized gains of $7.9 million contributed to an increase in net asset value.
• Regular dividend increased to $0.28 per quarter starting Q4 2021.
• Year-to-date investments reached $243 million, showing active portfolio management.

Negative

• GAAP net investment income decreased to $0.21 per share due to capital gains incentive fee accrual.
• Operating expenses increased from $8.7 million in Q3 2020 to $13.0 million in Q3 2021.

HOUSTON, Oct. 28, 2021 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus" or "the Company") today announced financial results for its third fiscal quarter ended September 30, 2021.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid results in the third quarter in which we increased net asset value, covered the dividend, increased the dividend going forward and generated $7.9 million of realized gains. In particular, core net investment income of $0.31 per share covered our third quarter dividend of $0.27 per share. Net investment income on a GAAP basis was $0.21 per share primarily due to the accrual of a capital gains incentive fee related to our realized gains during the quarter. Based on the consistency of our dividend coverage, our Board of Directors approved an increase in the regular dividend to $0.28 per quarter beginning in the fourth quarter. Our portfolio at fair value was relatively unchanged as repayments largely offset new investments. Year to date we have invested $243 million."

 

FINANCIAL HIGHLIGHTS
(dollars in millions, except data relating to per share amounts and shares outstanding)
		Q3-21			YTD-21
		Amount	Per Share		Amount	Per Share
Net investment income		$4.06	$0.21		$14.66	$0.75
Core net investment income (1)		6.00	0.31		17.22	0.88
Net realized gain on investments		7.92	0.40		6.60	0.34
Provision for taxes on realized gain
on investments in taxable subsidiaries		$(0.68)	$(0.03)		$(0.68)	$(0.03)
Loss on debt extinguishment		-	-		(0.54)	(0.03)
Total realized income(2)		11.30	0.58		20.04	1.03
Distributions
Q1 Distributions		-	-		(4.87)	(0.25)
Q2 Distributions		-	-		(4.87)	(0.25)
Q3 Distributions		(5.84)	(0.30)		(5.84)	(0.30)
Q4 Distributions		(5.46)	(0.28)		(5.46)	(0.28)
Total Distributions		(11.30)	(0.58)		(21.04)	(1.08)
Net unrealized appreciation
on investments		2.08	0.11		3.87	0.20
Provision for taxes on unrealized gains
on investments in taxable subsidiaries		(0.61)	(0.03)		(0.59)	(0.03)
Net increase in net assets resulting
from operations		$12.78	$0.66		$23.32	$1.20
Weighted average shares outstanding		19,486,003			19,486,003

(1)	Core net investment income, as presented, excludes the impact of capital gains incentive fees and income taxes, the majority of which are excise taxes. The Company believes that presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is not a U.S. generally accepted accounting principle ("U.S. GAAP") measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S GAAP. A reconciliation of net investment income in accordance with U.S GAAP to core net investment income is presented in the table below the financial statements.
(2)	Total realized income is the sum of net investment income and net realized gains on investments, including debt extinguishment; both U.S GAAP measures.

 

PORTFOLIO ACTIVITY
(dollars in millions, except data relating to per share amounts and number of portfolio companies)
		As of			As of
		September 30,			December 31,
		2021			2020
Investments at fair value		$785.7			$653.4
Total assets		$827.0			$674.9
Net assets		$275.6			$273.4
Shares outstanding		19,486,003			19,486,003
Net asset value per share		$14.15			$14.03
		Quarter Ended			Nine Months Ended
		September 30,			September 30,
		2021			2021
New investments		$60.5			$243.3
Repayments of investments		(67.4)			(123.6)
Net activity			$(6.9)		$119.7
								As of			As of
								September 30,			December 31,
								2021			2020
Number of portfolio company investments								74			66
Number of portfolio company debt investments								58			51
Weighted average yield of debt and other income producing investments (3)
Cash								7.7%			7.8%
Payment-in-kind ("PIK')								0.2%			0.0%
Fee amortization								0.4%			0.5%
Total								8.3%			8.3%
Weighted average yield on total investments (4)
Cash								7.2%			7.4%
PIK								0.2%			0.0%
Fee amortization								0.4%			0.5%
Total								7.8%			7.9%

(3)	The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors of our common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors.
(4)	The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above, but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing loans and equity.

Results of Operations

Investment income for the three months ended September 30, 2021 and 2020 totaled $17.0 million and $14.0 million, respectively, most of which was interest income from portfolio investments. 

Operating expenses for the three months ended September 30, 2021 and 2020 totaled $13.0 million and $8.7 million, respectively. For the same respective periods, base management fees totaled $3.5 million and $2.8 million, income incentive fees totaled $1.5 million and $0.5 million, capital gains incentive fees totaled $1.7 million and $0.0 million, fees and expenses related to our borrowings totaled $4.9 million and $3.9 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.4 million and $0.4 million, income tax totaled $0.2 million and $0.4 million, and other expenses totaled $0.8 million and $0.7 million, respectively.

For the three months ended September 30, 2021 and 2020, net investment income was $4.1 million and $5.3 million, or $0.21 and $0.27 per common share based on weighted average common shares outstanding of 19,486,003 and 19,486,003, respectively.

The capital gains incentive fee of $1.7 million for the three months ended September 30, 2021 was accrued for GAAP purposes due to the increase in realized and unrealized gains over the quarter. Such fees, as calculated and accrued, would not necessarily be payable under the investment advisory agreement, and may never be paid based upon the computation of incentive fees in subsequent periods. The income tax expense accrual of $0.2 million for the three months ended September 30, 2021 was accrued based on estimates of undistributed taxable income. Core net investment income, which is a non-U.S GAAP measure that excludes these accruals, for the three months ended September 30, 2021 was $6.0 million, or $0.31 per share; and for the three months ended September 30, 2020, was $5.7 million, or $0.29 per share.

The Company's investment portfolio had a net change in unrealized appreciation for the three months ended September 30, 2021 and 2020, of $2.1 million and $2.1 million, respectively. For the three months ended September 30, 2021 and 2020, the Company had realized gains of $7.9 million and $0.2 million, respectively.

For the three months ended September 30, 2021 and 2020, net increase in net assets resulting from operations totaled $12.8 million and $7.5 million, or $0.66 per common share and $0.39 per common share, based on weighted average common shares outstanding of 19,486,003 and 19,486,003, respectively.

Liquidity and Capital Resources

As of both September 30, 2021 and 2020, our amended and restated senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $230.0 million on a committed basis. As of September 30, 2021, our credit facility had an accordion feature that allowed for potential future expansion of the facility size to $280.0 million. As of September 30, 2021 and December 31, 2020, we had $189.8 million and $174.0 million in outstanding borrowings under the credit facility, respectively.

For the nine months ended September 30, 2021, our operating activities used cash of ($102.1) million primarily in connection with the purchase and origination of new portfolio investments, some of which was offset by repayment of portfolio investments. For the same period, our financing activities provided cash of $121.4 million, due to the issuance of our 4.875% fixed-rate notes due 2026 (the "2026 Notes") offset by the repayment of our 5.75% fixed-rate notes due 2022 (the "2022 Notes"), issuance of additional SBA-guaranteed debentures, and net repayments on our Credit Facility.

For the nine months ended September 30, 2020, our operating activities provided cash of $12.4 million, primarily in connection with the origination of portfolio investments, which was slightly offset by repayments of our investments, and our financing activities provided cash of $10.1 million, due to net borrowings under our Credit Facility.

Distributions

During both the three months ended September 30, 2021 and 2020, we declared aggregate distributions of $0.58 per share ($11.3 million and $10.9 million, respectively) for each quarter. Of the $0.58 declared during the three months ended September 30, 2021, $0.27 relates to our regular distribution and was paid to shareholders during the third quarter, $0.03 relates to a special distribution and was paid to shareholders during the third quarter, and $0.28 relates to our regular distribution and will be paid to the shareholders during the fourth quarter. Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.

Portfolio Activity During the Quarter

On July 12, 2021, we invested $0.1 million in the equity of NS Group Holding Company, LLC, an existing portfolio company.

On July 16, 2021, we received full repayment on the first lien term loan of Software Luxembourg Acquisition S.A.R.L. (GK Holdings, Inc.) for total proceeds of $2.0 million.

On July 16, 2021, we invested $0.1 million in the equity of Venbrook Holdings, LLC, an existing portfolio company. On September 30, 2021, we invested an additional $0.2 million in the equity of the company.

On July 30, 2021, we invested $10.0 million in the first lien term loan and committed $0.1 million in the unfunded revolver of Credit Connection, LLC, a provider of software solutions to automotive dealerships. Additionally, we invested $0.8 million in the equity of the company.

On August 9, 2021, we received full repayment on the first lien term loan of Industry Dive, Inc. for total proceeds of $7.0 million.

On August 12, 2021, we invested $3.6 million in the first lien term loan of Spire Power Solutions, L.P., an existing portfolio company.

On August 13, 2021, we received full repayment on the first lien term loan of Ian, Evan & Alexander Corporation for total proceeds of $6.7 million.

On August 17, 2021, we received full repayment on the first lien term loan of CommentSold, LLC for total proceeds of $12.4 million.

On August 31, 2021, we invested $3.1 million in the first lien term loan of Intuitive Health, LLC, an existing portfolio company.

On September 1, 2021, we received $1.0 million in full realization of the equity investment in Empirix Holdings I, Inc., resulting in a $0.3 million loss.

On September 1, 2021, we invested $14.4 million in the first lien term loan and committed $3.3 million in the unfunded delayed draw term loan and $0.1 million in the unfunded revolver of CF512, Inc., a provider of outsourced digital marketing services to customers primarily across the e-commerce and financial services industries. Additionally, we invested $0.2 million in the equity of the company.

On September 3, 2021, we invested $10.3 million in the first lien term loan and committed $3.8 million in the unfunded delayed draw term loan and $0.1 million in the unfunded revolver of Camp Profiles, LLC, a provider of digital marketing services to small and medium-sized businesses. Additionally, we invested $0.3 million in the equity of the company.

On September 3, 2021, we invested $8.0 million in the first lien term loan of a company offering residential property brokerage, title & settlement, and property and casualty ("P&C") insurance brokerage services to home buyers and sellers. Additionally, we invested $7.9 million in the equity of the company.

On September 13, 2021, we received full repayment on the first lien term loan of Fast Growing Trees, LLC for total proceeds of $15.0 million. We also received $8.6 million in full realization on the equity of the company, resulting in a $7.7 million gain.

On September 21, 2021, we received full repayment on the first lien term loan of Whisps Acquisition Corp. for total proceeds of $6.9 million.

On September 22, 2021, we received $0.5 million in full realization of the investment in VRI Ultimate Holdings, LLC, resulting in a $0.5 million gain.

Credit Facility

The outstanding balance under the credit facility as of October 28, 2021 was $185.9 million.

SBA-guaranteed Debentures

The total balance of SBA-guaranteed debentures outstanding as of October 28, 2021 was $250.0 million.

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Friday, October 29, 2021 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.

For those wishing to participate by telephone, please dial 800-353-6461 (domestic). Use passcode 1557192. Starting approximately twenty-four hours after the conclusion of the call, a replay will be available through Saturday, November 6, 2021 by dialing (888) 203-1112 and entering passcode 1557192. The replay will also be available on the company's website.

For those wishing to participate via Live Webcast, connect via the Public Company (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.

About Stellus Capital Investment Corporation

The Company is an externally-managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien (including unitranche) loans, second lien loans and unsecured debt financing, with corresponding equity co-investments. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab.

Forward-Looking Statements

Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release, including statements about COVID-19 and its impacts, may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company 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.

Contacts

Stellus Capital Investment Corporation
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
thuskinson@stelluscapital.com

 

PART I — FINANCIAL INFORMATION
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
			September 30,
			2021			December 31,
			(Unaudited)			2020
ASSETS
	Non-controlled, non-affiliated investments, at fair value
		(amortized cost of $787,034,758 and $658,628,966,
		respectively)	$	785,698,750		$	653,424,495
	Cash and cash equivalents			37,753,618			18,477,602
	Receivable for sales and repayments of investments			441,058			215,929
	Interest receivable			2,803,581			2,189,448
	Other receivables			135,495			25,495
	Deferred offering costs			—			90,000
	Prepaid expenses			186,321			487,188
		Total Assets	$	827,018,823		$	674,910,157
LIABILITIES
	Notes payable		$	97,990,055		$	48,307,518
	Credit facility payable			187,878,861			171,728,405
	SBA-guaranteed debentures			244,329,030			173,167,496
	Dividends payable			7,402,736			—
	Management fees payable			5,251,520			2,825,322
	Income incentive fees payable			1,630,149			681,660
	Capital gains incentive fees payable			2,361,593			521,021
	Interest payable			737,704			2,144,085
	Unearned revenue			531,271			523,424
	Administrative services payable			763,236			391,491
	Deferred tax liability			946,050			359,590
	Income tax payable			1,236,616			724,765
	Other accrued expenses and liabilities			315,033			174,731
		Total Liabilities	$	551,373,854		$	401,549,508
	Commitments and contingencies (Note 7)
		Net Assets	$	275,644,969		$	273,360,649
NET ASSETS
	Common stock, par value $0.001 per share (100,000,000 shares
	authorized; 19,486,003 and 19,486,003 issued and outstanding,
		respectively)	$	19,486		$	19,486
	Paid-in capital			276,026,667			276,026,667
	Accumulated undistributed deficit			(401,184)			(2,685,504)
		Net Assets	$	275,644,969		$	273,360,649
		Total Liabilities and Net Assets	$	827,018,823		$	674,910,157
		Net Asset Value Per Share	$	14.15		$	14.03

 

STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
				For the			For the			For the			For the
				three			three			nine			nine
				months ended			months ended			months ended			months ended
				September 30,			September 30,			September 30,			September 30,
				2021			2020			2021			2020
INVESTMENT INCOME
	Interest income			$	16,460,579		$	13,707,343	$		44,819,754		$	42,192,411
	Other income				568,764			309,406			1,301,827			926,661
		Total Investment Income		$	17,029,343		$	14,016,749	$		46,121,581		$	43,119,072
OPERATING EXPENSES
	Management fees			$	3,473,041		$	2,796,878	$		9,715,381		$	8,259,127
	Valuation fees				141,012			134,246			289,447			263,080
	Administrative services expenses				437,804			431,894			1,354,295			1,335,423
	Income incentive fees				1,451,752			461,590			1,507,651			1,969,976
	Capital gains incentive fees				1,742,904			-			1,840,572			(880,913)
	Professional fees				267,332			224,517			772,509			761,745
	Directors' fees				74,500			77,500			240,500			320,316
	Insurance expense				120,119			94,094			356,439			280,236
	Interest expense and other fees				4,854,388			3,861,072			13,869,834			12,245,870
	Income tax expense				192,612			367,836			718,869			853,631
	Other general and administrative expenses				209,779			238,177			796,338			706,559
		Total Operating Expenses		$	12,965,243		$	8,687,804	$		31,461,835		$	26,115,050
		Net Investment Income		$	4,064,100		$	5,328,945	$		14,659,746		$	17,004,022
		Net realized gain (loss) on non-controlled, non-affiliated
			investments	$	7,921,322		$	151,697	$		6,601,885		$	(2,444,759)
		Loss on debt extinguishment		$	-		$	-	$		(539,250)		$	-
		Net change in unrealized appreciation (depreciation)
			on non-controlled, non-affiliated investments	$	2,080,603		$	2,120,787	$		3,868,463		$	(11,054,942)
		Provision for taxes on net unrealized gain
			on investments	$	(606,377)		$	(92,749)	$		(586,460)		$	(122,699)
		Provision for taxes on realized gain on investments		$	(681,027)			-	$		(681,027)		$	-
		Net Increase in Net Assets
		Resulting from Operations		$	12,778,621		$	7,508,680	$		23,323,357		$	3,381,622
		Net Investment Income Per Share		$	0.21		$	0.27	$		0.75		$	0.87
		Net Increase in Net Assets Resulting
		from Operations Per Share		$	0.66		$	0.39	$		1.20		$	0.17
		Weighted Average Shares of Common Stock Outstanding			19,486,003			19,486,003			19,486,003			19,466,647
		Distributions Per Share		$	0.58		$	0.56	$		1.08		$	1.15

 

STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
			For the			For the			For the			For the
			three			three			nine			nine
			months ended			months ended			months ended			months ended
			September 30,			September 30,			September 30,			September 30,
			2021			2020			2021			2020
Increase in Net Assets Resulting from Operations
	Net investment income		$	4,064,100		$	5,328,945		$	14,659,746		$	17,004,022
	Net realized gain (loss) on non-controlled,
		non-affiliated investments		7,921,322			151,697			6,601,885			(2,444,759)
	Loss on debt extinguishment			—			—			(539,250)			—
	Net change in unrealized appreciation (depreciation) on
		non-controlled, non-affiliated investments		2,080,603			2,120,787			3,868,463			(11,054,942)
	Provision for taxes on unrealized appreciation
		on investments		(606,377)			(92,749)			(586,460)			(122,699)
	Provision for taxes on realized gain on investments			(681,027)			—			(681,027)			—
Net Increase in Net Assets Resulting
	from Operations		$	12,778,621		$	7,508,680		$	23,323,357		$	3,381,622
Stockholder Distributions From:
	Net investment income		$	(11,299,933)		$	(10,912,161)		$	(21,039,037)		$	(22,402,959)
Total Distributions			$	(11,299,933)		$	(10,912,161)		$	(21,039,037)		$	(22,402,959)
Capital Share Transactions
	Issuance of common stock		$	—		$	—		$	—		$	5,023,937
	Sales load			—			—			—			(5,681)
	Offering costs			—			—			—			(18,169)
	Partial share transactions			—			—			—			(96)
Net Increase in Net Assets Resulting From
	Capital Share Transactions		$	—		$	—		$	—		$	4,999,991
Total Increase (Decrease) in Net Assets			$	1,478,688		$	(3,403,481)		$	2,284,320		$	(14,021,346)
Net Assets at Beginning of Period			$	274,166,281		$	259,953,308		$	273,360,649		$	270,571,173
Net Assets at End of Period			$	275,644,969		$	256,549,827		$	275,644,969		$	256,549,827

 

STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
				For the			For the
				nine			nine
				months ended			months ended
				September 30,			September 30,
				2021			2020
Cash flows from operating activities
Net increase in net assets resulting from operations				$	23,323,357		$	3,381,622
Adjustments to reconcile net increase in net assets
from operations to net cash operating activities:
		Purchases of investments			(243,298,147)			(87,193,368)
		Proceeds from sales and repayments of investments			123,617,259			82,360,666
		Net change in unrealized (appreciation) depreciation on investments			(3,868,463)			11,054,942
		Increase in investments due to PIK			(607,393)			(568,028)
		Amortization of premium and accretion of discount, net			(1,747,423)			(1,611,189)
		Deferred tax provision			586,460			122,699
		Amortization of loan structure fees			390,298			500,495
		Amortization of deferred financing costs			346,123			249,532
		Amortization of loan fees on SBA-guaranteed debentures			801,259			515,707
		Net realized (gain) loss on investments			(6,595,217)			2,444,759
		Loss on debt extinguishment			539,250			—
Changes in other assets and liabilities
		(Increase) decrease in interest receivable			(614,133)			1,044,450
		Increase in other receivable			(110,000)			(35,000)
		Decrease in prepaid expenses			300,867			178,461
		Increase in management fees payable			2,426,198			2,844,293
		Increase (decrease) in incentive fees payable			948,489			(1,033,628)
		Increase (decrease) in capital gains incentive fees payable			1,840,572			(880,913)
		Increase in administrative services payable			371,745			363,606
		Decrease in interest payable			(1,406,381)			(1,484,237)
		Increase in unearned revenue			7,847			34,298
		Increase (decrease) in income tax payable			511,851			(111,000)
		Increase in other accrued expenses and liabilities			140,302			236,255
Net Cash Operating Activities				$	(102,095,280)		$	12,414,422
Cash flows from Financing Activities
		Proceeds from the issuance of common stock		$	—		$	4,794,994
		Sales load for commons stock issued			—			(5,681)
		Offering costs paid for common stock issued			—			(18,169)
		Stockholder distributions paid			(13,636,301)			(18,300,982)
		Repayment of Notes Payable			(48,875,000)			—
		Proceeds from issuance of Notes			100,000,000			—
		Financing costs from bond issuance			(2,237,835)			—
		Proceeds from SBA Debentures			73,500,000			—
		Financing costs paid on SBA Debentures			(3,139,725)			—
		Financing costs paid on Credit facility			(39,843)			(1,849,834)
		Borrowings under Credit Facility			191,200,000			97,450,000
		Repayments of Credit Facility			(175,400,000)			(72,000,000)
		Partial Share Redemption			—			(96)
Net Cash Provided by Financing Activities				$	121,371,296		$	10,070,232
Net Increase in Cash and Cash Equivalents				$	19,276,016		$	22,484,654
Cash and Cash Equivalents balance at beginning of period					18,477,602			16,133,315
Cash and Cash Equivalents Balance at End of Period				$	37,753,618		$	38,617,969
Supplemental and Non-Cash Activities
		Cash paid for interest expense		$	13,733,216		$	12,433,551
		Excise tax paid			870,000			940,000
		Shares issued pursuant to Dividend Reinvestment Plan			—			228,943
		Increase in dividends payable			7,402,736			3,873,034
		Decrease in deferred offering costs for Notes Payable offering			(90,000)			—
		Gain on conversion of equity investment			6,668			—

 

Reconciliation of Core Net Investment Income (1)
(Unaudited)
		Quarter		Quarter
		ended		ended
		September 30, 2021		September 30, 2020
Net investment income		$4,064,100		$5,328,945
	Capital gains incentive fee	$1,742,904		$-
	Income tax expense	$192,612		$367,836
Core net investment income		$5,999,616		$5,696,781
Per share amounts:
Net investment income per share		$0.21		$0.27
Core net investment income per share		$0.31		$0.29
Reconciliation of Realized Net Investment Income (2)
(Unaudited)
		Quarter		Quarter
		ended		ended
		September 30, 2021		September 30, 2020
Net investment income		$4,064,100		$5,328,945
	Net Realized Gain	$7,921,322		$151,697
	Provision for taxes on realized gain on investments	$(681,027)		$-
Total Realized Net Investment Income		$11,304,395		$5,480,642
Per share amounts:
Net investment income per share		$0.21		$0.27
Realized net investment income per share		$0.58		$0.28

 

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SOURCE Stellus Capital Investment Corporation

FAQ

What were Stellus Capital's Q3 2021 earnings results?

Stellus Capital reported core net investment income of $0.31 per share and GAAP net investment income of $0.21 per share for Q3 2021.

What is Stellus Capital's dividend for Q4 2021?

The dividend for Q4 2021 has been increased to $0.28 per share.

How much did Stellus Capital invest year-to-date by Q3 2021?

Stellus Capital invested a total of $243 million year-to-date as of Q3 2021.

What was the net asset value of Stellus Capital in Q3 2021?

The net asset value of Stellus Capital was $275.6 million as of September 30, 2021.