Trinity Capital Inc. Reports Fourth Quarter and Full Year 2020 Financial Results
Trinity Capital Inc. (Nasdaq: TRIN) reported strong financial results for Q4 2020, with total investment income of $15.3 million, leading to net investment income of $5.3 million ($0.29 per share). Total gross investments funded reached $102.5 million, and the investment portfolio expanded to $493.7 million at fair value. The net asset value per share rose to $13.03, with a quarterly dividend of $0.27 declared. For the full year, total investment income was $55.0 million, with net investment income of $23.4 million ($1.29 per share).
- Total investment income of $15.3 million for Q4 2020.
- Net investment income of $5.3 million, or $0.29 per share.
- Net asset value (NAV) per share increased to $13.03 from $13.01.
- Total investment commitments of $116.5 million in Q4 2020.
- Realized net losses on investments of approximately $5.0 million.
- Three portfolio companies on non-accrual status with a total fair value of approximately $2.2 million.
PHOENIX, March 4, 2021 /PRNewswire/ -- Trinity Capital Inc. (Nasdaq: TRIN) ("Trinity Capital" or the "Company"), a leading specialty lending company that provides debt, including loans and equipment financing, to growth stage companies backed by technology banks, venture capital and private equity firms, today announced its financial results for the fourth quarter and year ended December 31, 2020.
Fourth Quarter 2020 Highlights
- Total investment income of
$15.3 million - Net investment income of
$5.3 million , or$0.29 per share - Aggregate investment commitments of
$116.5 million - Total gross investments funded of
$102.5 million , comprised of$26.2 million across 6 new portfolio companies and$76.3 million across 12 existing portfolio companies - Investment portfolio of
$493.7 million at fair value - Net asset value ("NAV") per share increased to
$13.03 from$13.01 at September 30, 2020 - Declared a second dividend distribution during the fourth quarter of
$0.27 per share in connection with the results for such quarter
Full Year 2020 Highlights
- Total investment income of
$55.0 million - Net investment income of
$23.4 million or$1.29 per share - Aggregate investment commitments of
$326.1 million - Total gross investments funded of
$240.0 million
Steven Brown, Chairman and Chief Executive Officer of Trinity Capital, commented, "During a year of unprecedented challenges for our society, we thank those who are steering us through the global pandemic. Our team was resilient in the face of this adversity evidenced by our ability to raise capital in 2020 followed by our initial public offering and listing on the Nasdaq Global Select Market in January 2021. Our portfolio grew to
"Importantly, we believe the future is bright. The venture capital industry had a record year raising an estimated
Fourth Quarter 2020 Operating Results
For the three months ended December 31, 2020, total investment income was
During the fourth quarter, the Company realized net losses on investments of approximately
During the fourth quarter, the Company generated a net increase in net assets resulting from operations of
Net Asset Value
As of December 31, 2020, NAV per share increased by
Portfolio and Investment Activity
As of December 31, 2020, Trinity Capital's investment portfolio had an aggregate fair value of approximately
During the fourth quarter, the Company originated
At the end of the fourth quarter, loans to three portfolio companies were on non-accrual status with a total fair value of approximately
The following table shows the distribution of our loan and equipment financing investments on the 1 to 5 investment risk rating scale at fair value as of December 31, 2020 (dollars in thousands):
Investment Risk Rating Scale Range | Designation | Investments at Fair Value | Percentage of Total Portfolio | ||||
4.0 - 5.0 | Very Strong Performance | $ | 92,519 | ||||
3.0 - 3.9 | Strong Performance | 212,969 | |||||
2.0 - 2.9 | Performing | 116,895 | |||||
1.6 - 1.9 | Watch | 19,230 | |||||
1.0 - 1.5 | Default/Workout | 1,606 | |||||
Total | $ | 443,219 |
As of December 31, 2020, and in line with the third quarter, our loan and equipment financing investments had a weighted average risk rating score of 3.2.
Liquidity and Capital Resources
As of December 31, 2020, the Company had approximately
Distributions
Beginning with the fourth quarter, the Company's Board of Directors (the "Board") intends to declare a quarterly distribution prior to the end of each quarter. As previously announced by the Company, the Board declared a quarterly distribution of
Trinity Capital's distribution reinvestment plan provides for the reinvestment of distributions in the form of common stock on behalf of its stockholders unless a stockholder has elected to receive distributions in cash.
Portfolio Company M&A Activity YTD 2021
In December 2020, Trinity Capital's portfolio company AyDeeKay LLC, a semiconductor and software design company announced that it has entered into a definitive merger agreement with Thunder Bridge II (NASDAQ: THBR), a special purpose acquisition company. Trinity Capital initially committed
In February 2021, Trinity Capital's portfolio company Matterport, Inc., a spatial data company announced that it has entered into a definitive merger agreement with Gores Holding VI (NASDAQ: GHVI, GHVIU and GHVIW), a special purpose acquisition company. Trinity Capital initially committed
In February 2021, Trinity Capital's portfolio company Atieva, Inc., (d/b/a Lucid Motors) a luxury electric vehicle company announced that it has entered into a definitive merger agreement with Churchill Capital IV Corp. (NYSE: CCIV), a special purpose acquisition company. Trinity Capital initially committed
Conference Call
Trinity Capital will hold a conference call to discuss its fourth quarter and full year 2020 financial results at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on Thursday, March 4, 2021. To listen to the call, please dial (888) 285 0969, or (706) 758 9224 internationally, and reference Conference ID: 4939607 if asked, approximately 10 minutes prior to the start of the call.
A taped replay will be made available approximately three hours after the conclusion of the call and will remain available for seven days. To access the replay, please dial 800-585-8367 or (404) 537 3406 and enter the passcode 4939607.
A live webcast of the fourth quarter and full year 2020 financial results conference call will also be available on the investor relations section of the Company's website at https://trincapinvestment.com/. A replay will be available on the Company's website for 90 days following the conference call.
About Trinity Capital Inc.
Trinity Capital (Nasdaq: TRIN), an internally managed specialty lending company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, is a leading provider of debt, including loans and equipment financing, to growth stage companies, including venture-backed companies and companies with institutional equity investors. Trinity's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments consisting primarily of term loans and equipment financings and, to a lesser extent, working capital loans, equity and equity-related investments. Trinity believes it is one of only a select group of specialty lenders that has the depth of knowledge, experience, and track record in lending to growth stage companies.
Forward-Looking Statements
This press release may contain "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 or results and involve a number of risks and uncertainties, including the impact of the COVID 19 pandemic on the economy, financial markets, our business, our portfolio companies and our industry. 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 filings with the Securities and Exchange Commission ("SEC"). 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. More information on risks and other potential factors that could affect the Company's financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or on the webcast/conference call, is included in the Company's filings with the SEC, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's most recently filed annual report on Form 10-K and subsequent SEC filings.
TRINITY CAPITAL, INC. | ||||||||
December 31, 2020 | December 31, | |||||||
ASSETS | ||||||||
Investments, at fair value: | ||||||||
Control investments (cost of | $ | 48,730 | $ | - | ||||
Affiliate investments (cost of | 27,650 | - | ||||||
Non-control / Non-affiliate investments (cost of | 417,271 | - | ||||||
Total investments (cost of | 493,651 | - | ||||||
Cash and cash equivalents | 44,656 | - | ||||||
Restricted cash | 16,445 | - | ||||||
Interest receivable | 3,468 | - | ||||||
Deferred financing costs | - | 3,525 | ||||||
Deferred offering costs | - | 2,677 | ||||||
Prepaid expenses | 744 | - | ||||||
Other assets | 744 | - | ||||||
Total assets | $ | 559,708 | $ | 6,202 | ||||
LIABILITIES | ||||||||
Credit facility, net of deferred financing cost | $ | 132,893 | $ | - | ||||
Notes payable, net of deferred financing costs | 120,303 | - | ||||||
Convertible notes payable, net of | 46,552 | |||||||
Accounts payable and accrued expenses | 7,309 | 5,668 | ||||||
Due to related party | - | 1,058 | ||||||
Distribution Payable | 4,947 | |||||||
Other liabilities | 8,956 | - | ||||||
Total liabilities | 320,960 | 6,726 | ||||||
Commitments and contingencies | ||||||||
NET ASSETS | ||||||||
Common stock, 18,321,274 and 10 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively) | 18 | - | ||||||
Paid-in capital in excess of par | 263,366 | - | ||||||
Distributable earnings (accumulated loss) | (24,636) | (524) | ||||||
Total net assets | 238,748 | (524) | ||||||
Total liabilities and total net assets | $ | 559,708 | $ | 6,202 | ||||
NET ASSET VALUE PER SHARE | $ | 13.03 | $ | (52,418.20) |
TRINITY CAPITAL INC. | |||||||||||||
For the Year Ended December 31, 2020 | For the Period of August 12, 2019 (date of inception) | ||||||||||||
INVESTMENT INCOME: | |||||||||||||
Interest Income: | |||||||||||||
Control Investments | $ | 3,661 | $ | - | |||||||||
Affiliate Investments | 1,191 | - | |||||||||||
Non-Control / Non-Affiliate investments | 46,403 | - | |||||||||||
Total interest income | 51,255 | - | |||||||||||
Fee income: | - | ||||||||||||
Non-Control / Non-Affiliate investments | 3,709 | - | |||||||||||
Total fee income | 3,709 | - | |||||||||||
Total investment income | 54,964 | - | |||||||||||
EXPENSES | |||||||||||||
Interest expense and other debt financing costs | 16,773 | - | |||||||||||
Compensation and benefits | 10,433 | - | |||||||||||
Professional fees | 2,283 | ||||||||||||
General and administrative | 2,104 | 524 | |||||||||||
Total expenses | 31,593 | 524 | |||||||||||
NET INVESTMENT INCOME | 23,371 | (524) | |||||||||||
NET REALIZED GAIN/(LOSS) FROM INVESTMENTS: | |||||||||||||
Control Investments | - | - | |||||||||||
Affiliate Investments | - | - | |||||||||||
Non-Control / Non-Affiliate Investments | (9,403) | - | |||||||||||
Net gain/(loss) from investments | (9,403) | - | |||||||||||
NET CHANGE IN UNREALIZED APPRECIATION / (DEPRECIATION) | |||||||||||||
Control investments | (8,342) | - | |||||||||||
Affiliate investments | 6,997 | - | |||||||||||
Non-Control / Non-Affiliate investments | (3,621) | - | |||||||||||
Net change in unrealized appreciation/(depreciation) from investments | (4,966) | ||||||||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING | 9,002 | (524) | |||||||||||
Costs related to acquisition of Trinity Capital Holdings and Legacy Funds | (15,114) | - | |||||||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING | $ | (6,112) | $ | (524) | |||||||||
NET INVESTMENT INCOME PER SHARE – BASIC AND | $ | 1.29 | $ | N/M | |||||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING | $ | (0.34) | $ | N/M | |||||||||
Weighted average shares outstanding – BASIC AND | 18,092,494 | 10 | |||||||||||
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SOURCE Trinity Capital Inc.
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