Trinity Capital Inc. Reports Second Quarter 2024 Financial Results
Trinity Capital Inc. (TRIN) reported strong Q2 2024 financial results, with record total investment income of $54.6 million, up 18.7% year-over-year. The company achieved record net investment income (NII) of $26.7 million, or $0.53 per basic share. Platform Assets Under Management grew to $1.7 billion, a 36% increase year-over-year. Trinity's Return on Average Equity (ROAE) reached 16.3%, while Net Asset Value increased to $680.0 million, or $13.12 per share. The company made total gross investment commitments of $289.3 million and funded $230.6 million in investments. Trinity maintained its 18th consecutive quarter of consistent or increased regular dividend, with a Q2 distribution of $0.51 per share.
Trinity Capital Inc. (TRIN) ha riportato risultati finanziari molto solidi per il secondo trimestre del 2024, con un reddito totale da investimenti record di 54,6 milioni di dollari, in aumento del 18,7% rispetto all'anno precedente. L'azienda ha raggiunto un reddito netto da investimenti (NII) record di 26,7 milioni di dollari, ovvero $0,53 per azione base. Le risorse in gestione sono cresciute a 1,7 miliardi di dollari, un incremento del 36% rispetto all'anno scorso. Il Ritorno sul Capitale Medio (ROAE) di Trinity ha raggiunto il 16,3%, mentre il Valore Netto degli Attivi è aumentato a 680,0 milioni di dollari, ovvero $13,12 per azione. L'azienda ha effettuato impegni totali di investimento lordi per 289,3 milioni di dollari e ha finanziato 230,6 milioni di dollari in investimenti. Trinity ha mantenuto il suo 18° trimestre consecutivo di dividendi regolari coerenti o incrementati, con una distribuzione di $0,51 per azione nel secondo trimestre.
Trinity Capital Inc. (TRIN) reportó resultados financieros sólidos para el segundo trimestre de 2024, con ingresos totales de inversión récord de 54,6 millones de dólares, un aumento del 18,7% en comparación con el año anterior. La compañía logró un ingreso neto de inversión (NII) récord de 26,7 millones de dólares, o $0,53 por acción básica. Los activos de la plataforma bajo gestión crecieron a 1,7 mil millones de dólares, un incremento del 36% en relación al año pasado. El Retorno sobre el Capital Promedio (ROAE) de Trinity alcanzó el 16,3%, mientras que el Valor Neto de los Activos aumentó a 680,0 millones de dólares, o $13,12 por acción. La empresa realizó compromisos totales de inversión brutos de 289,3 millones de dólares y financió 230,6 millones de dólares en inversiones. Trinity mantuvo su 18° trimestre consecutivo de dividendos regulares consistentes o incrementados, con una distribución de $0,51 por acción en el segundo trimestre.
Trinity Capital Inc. (TRIN)은 2024년 2분기 강력한 재무 실적을 보고했으며, 총 투자 수익이 5460만 달러로 기록적인 수치를 기록하며 전년 대비 18.7% 증가했습니다. 회사는 순 투자 수익(NII) 2670만 달러, 즉 주당 $0.53을 달성했습니다. 운용 자산이 17억 달러로 증가하여 전년 대비 36% 증가했습니다. Trinity의 평균 자기 자본 수익률(ROAE)은 16.3%에 도달했으며, 순 자산 가치는 6억8000만 달러, 즉 주당 $13.12로 증가했습니다. 회사는 총 2억8930만 달러의 투자 약속을 했고, 투자의 경우 2억3060만 달러를 자금 지원했습니다. Trinity는 18분기 연속으로 일관되거나 증가한 정기 배당금을 유지하며, 2분기 배당금은 주당 $0.51이었습니다.
Trinity Capital Inc. (TRIN) a annoncé des résultats financiers solides pour le deuxième trimestre de 2024, avec des revenus d'investissement totaux record de 54,6 millions de dollars, en hausse de 18,7 % par rapport à l'année précédente. L'entreprise a atteint un revenu net d'investissement (NII) record de 26,7 millions de dollars, soit 0,53 $ par action de base. Les actifs sous gestion ont augmenté à 1,7 milliard de dollars, soit une hausse de 36 % par rapport à l'année dernière. Le rendement sur capitaux propres moyens (ROAE) de Trinity a atteint 16,3%, tandis que la valeur nette des actifs a augmenté à 680,0 millions de dollars, soit 13,12 $ par action. L'entreprise a réalisé des engagements totaux d'investissement brut de 289,3 millions de dollars et a financé 230,6 millions de dollars dans des investissements. Trinity a maintenu son 18e trimestre consécutif de dividendes réguliers constants ou augmentés, avec une distribution de 0,51 $ par action au deuxième trimestre.
Trinity Capital Inc. (TRIN) meldete starke finanzielle Ergebnisse für das 2. Quartal 2024, mit einem Rekord-Investitionseinkommen von 54,6 Millionen Dollar, ein Anstieg von 18,7% im Vergleich zum Vorjahr. Das Unternehmen erzielte ein Rekord-Netto-Investitionseinkommen (NII) von 26,7 Millionen Dollar, was $0,53 pro Stammaktie entspricht. Das verwaltete Vermögen wuchs auf 1,7 Milliarden Dollar, was einem Anstieg von 36% im Jahresvergleich entspricht. Der Rendite auf das durchschnittliche Eigenkapital (ROAE) von Trinity erreichte 16,3%, während der Nettoinventarwert auf 680,0 Millionen Dollar oder $13,12 pro Aktie anstieg. Das Unternehmen tätigte insgesamt 289,3 Millionen Dollar an brutto Investitionsverpflichtungen und finanzierte 230,6 Millionen Dollar in Investitionen. Trinity hielt seine 18. aufeinanderfolgende Quartal konstanter oder steigender regulärer Dividende, mit einer Verteilung von $0,51 pro Aktie im 2. Quartal.
- Record total investment income of $54.6 million, up 18.7% year-over-year
- Record net investment income of $26.7 million, or $0.53 per basic share
- Platform Assets Under Management grew to $1.7 billion, a 36% increase year-over-year
- Return on Average Equity (ROAE) reached 16.3%
- Net Asset Value increased to $680.0 million, or $13.12 per share
- Total gross investment commitments of $289.3 million
- 18th consecutive quarter of consistent or increased regular dividend
- Interest expense increased to $13.9 million from $12.0 million in Q2 2023
- Net realized loss on investments of approximately $6.5 million
- Loans to three portfolio companies and an equipment financing to one portfolio company were on non-accrual status
Insights
Trinity Capital's Q2 2024 results demonstrate strong financial performance and growth. Key highlights include:
- Record total investment income of
$54.6 million , up18.7% year-over-year - Record net investment income (NII) of
$26.7 million , or$0.53 per share - Return on Average Equity (ROAE) of
16.3% - Net Asset Value (NAV) increased to
$680.0 million , or$13.12 per share
The company's diversified investment platform and strategic growth initiatives are paying off. The
Trinity's investment portfolio shows solid performance and diversification. Key observations:
- Total portfolio fair value of
$1.4 billion , with a well-balanced mix of secured loans, equipment financings and equity/warrants 78.1% of debt portfolio in first-lien loans, indicating lower risk- Only
1.8% of debt investments on non-accrual status, suggesting good overall portfolio health - Weighted average risk rating of 2.7 (unchanged from previous quarter), indicating stable portfolio quality
The company's ability to originate
Trinity's Q2 results and recent developments position the company well in the current market environment:
- Successful utilization of ATM offering, raising
$46.9 million in net proceeds - Issuance of
$115 million in unsecured notes, enhancing liquidity - Expansion of credit facility to
$440 million with extended maturity to 2029
These actions strengthen Trinity's financial flexibility and capacity for growth. The company's focus on growth-oriented companies in diverse sectors aligns well with current market trends. The consistent dividend payments (18 consecutive quarters) and NAV growth make Trinity an attractive option for investors seeking exposure to the venture debt and growth capital space.
However, investors should monitor potential risks such as interest rate fluctuations and the overall health of the tech and growth sectors, which could impact Trinity's portfolio companies.
Platform AUM grows to
NII hits a record of
Return on average equity climbs to
Second Quarter 2024 Highlights
- Record total investment income of
$54 18.7% year-over-year - Record net investment income ("NII") of
$26 $0 - Net increase in net assets resulting from operations of
$30 $0 16.3% Return on Average Equity "ROAE" (NII/Average Equity)7.4% Return on Average Assets "ROAA" (NII/Average Assets)- Net Asset Value of
$680.0 million $13.12 - Total gross investment commitments of
$289 - Total gross investments funded of
$230 $133 $90 $6 - Total investment exits and repayments of
$180 $39 $22.0 million $50 $68 - Total platform Assets Under Management increased to a total of
$1.7 billion 36% year over year - 18th consecutive quarter of a consistent or increased regular dividend, with a second quarter distribution of
$0
"Trinity delivered another excellent quarter highlighted by record net investment income for our shareholders," said Kyle Brown, Chief Executive Officer of Trinity. "The results of the second quarter further demonstrate the strength of our diversified investment platform, with our five distinct business verticals in tech lending, equipment financing, life sciences, warehouse financing, and sponsor finance."
Brown continued, "We are excited to continue to ramp our growth strategies through our registered investment adviser subsidiary, giving Trinity other sources of capital and new accretive sources of income. We have been strategically investing via our RIA to support our strategic plan to be the leader in the growth lending space."
Second Quarter 2024 Operating Results
For the three months ended June 30, 2024, total investment income was
Total operating expenses and excise taxes, excluding interest expense, for the second quarter of 2024 were
Interest expense for the second quarter of 2024 was
Net investment income was approximately
During the three months ended June 30, 2024, our net unrealized appreciation totaled approximately
Net realized loss on investments was approximately
Net increase in net assets resulting from operations was
Net Asset Value
Total net assets at the end of the second quarter of 2024 increased by
Portfolio and Investment Activity
As of June 30, 2024, Trinity's investment portfolio had an aggregate fair value of approximately
During the second quarter, the Company originated approximately
Proceeds received from exits and repayments of the Company's investments during the second quarter totaled approximately
As of the end of the second quarter, loans to three portfolio companies and an equipment financing to one portfolio company were on non-accrual status with a total fair value of approximately
The following table shows the distribution of the Company's loan and equipment financing investments on the 1 to 5 investment risk rating scale at fair value as of June 30, 2024 and December 31, 2023 (dollars in thousands):
June 30, 2024 | December 31, 2023 | ||||||||||||
Investment Risk | Designation | Investments at | Percentage | Investments at | Percentage | ||||||||
4.0 - 5.0 | Very Strong Performance | $ | 70,183 | 5.3 % | $ | 40,584 | 3.3 % | ||||||
3.0 - 3.9 | Strong Performance | 306,187 | 22.9 % | 277,867 | 22.9 % | ||||||||
2.0 - 2.9 | Performing | 886,030 | 66.4 % | 805,730 | 65.9 % | ||||||||
1.6 - 1.9 | Watch | 53,449 | 4.0 % | 56,740 | 4.6 % | ||||||||
1.0 - 1.5 | Default/Workout | 8,035 | 0.6 % | 33,452 | 2.7 % | ||||||||
Total Debt Investments excluding Senior Credit Corp 2022 LLC | 1,323,884 | 99.2 % | 1,214,373 | 99.4 % | |||||||||
Senior Credit Corp 2022 LLC (1) | 11,335 | 0.8 % | 7,704 | 0.6 % | |||||||||
Total Debt Investments | $ | 1,335,219 | 100.0 % | $ | 1,222,077 | 100.0 % | |||||||
(1) An investment risk rating is not applied to Senior Credit Corp 2022 LLC. | |||||||||||||||||||
As of June 30, 2024, the Company's loan and equipment financing investments had a weighted average risk rating score of 2.7, unchanged from March 31, 2024. Trinity's grading scale is comprised of numerous factors, two key factors being liquidity and performance to plan. A company may be downgraded as it approaches the need for additional capital or if it is underperforming relative to its business plans. Conversely, it may be upgraded upon a capitalization event or if it is exceeding its plan. As such, the overall grading may fluctuate quarter-to-quarter.
Liquidity and Capital Resources
As of June 30, 2024, the Company had approximately
As of June 30, 2024, Trinity's leverage, or debt-to-equity ratio, was approximately
During the three months ended June 30, 2024, Trinity utilized its ATM offering program to sell 3.2 million shares of its common stock at a weighted average price of
Distributions
On June 13, 2024, the Company's Board of Directors declared a regular dividend totaling
Recent Developments
For the period from July 1, 2024 to August 6, 2024, the Company issued and sold 1,497,621 shares of its common stock at a weighted-average price of
On July 19, 2024, the Company issued and sold
On August 2, 2024, Trinity entered into an amendment to its KeyBank Credit Facility. Among other changes, the amendment increased the commitment amount available for borrowing under the KeyBank Credit Facility from
Conference Call
Trinity will hold a conference call to discuss its second quarter 2024 financial results at 9:00 a.m. Pacific Time (12:00 p.m. Eastern Time) on Wednesday, August 7, 2024.
To listen to the call, please dial (800) 245-3047, or (203) 518-9765 internationally, and reference Conference ID: TRINQ224 if asked, approximately 10 minutes prior to the start of the call.
A taped replay will be made available approximately two hours after the conclusion of the call and will remain available for seven days. To access the replay, please dial (800) 723-0549 or (402) 220-2657.
About Trinity Capital Inc.
Trinity (Nasdaq: TRIN), an internally managed business development company, is a leading provider of diversified financial solutions to growth stage companies with institutional equity investors. Trinity's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans, equipment financings, 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. For more information, please visit the Company's website at www.trinitycap.com.
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. 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. Consolidated Statements of Assets and Liabilities (In thousands, except share and per share data) | ||||||||
June 30, | December 31, | |||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Investments at fair value: | ||||||||
Control investments (cost of | $ | 29,764 | $ | 32,861 | ||||
Affiliate investments (cost of | 29,109 | 11,335 | ||||||
Non-Control / Non-Affiliate investments (cost of | 1,365,942 | 1,230,984 | ||||||
Total investments (cost of | 1,424,815 | 1,275,180 | ||||||
Cash and cash equivalents | 46,102 | 4,761 | ||||||
Interest receivable | 13,976 | 11,206 | ||||||
Deferred credit facility costs | 1,765 | 2,144 | ||||||
Other assets | 18,769 | 17,691 | ||||||
Total assets | $ | 1,505,427 | $ | 1,310,982 | ||||
LIABILITIES | ||||||||
KeyBank Credit Facility | $ | 254,700 | $ | 213,000 | ||||
2025 Notes, net of | 151,452 | 180,485 | ||||||
August 2026 Notes, net of | 123,762 | 123,474 | ||||||
March 2029 Notes, net of | 111,782 | — | ||||||
December 2026 Notes, net of | 74,085 | 73,898 | ||||||
Convertible Notes, net of | 49,076 | 48,757 | ||||||
Distribution payable | 26,443 | 23,162 | ||||||
Security deposits | 11,169 | 12,287 | ||||||
Accounts payable, accrued expenses and other liabilities | 22,919 | 24,760 | ||||||
Total liabilities | 825,388 | 699,823 | ||||||
NET ASSETS | ||||||||
Common stock, | 52 | 46 | ||||||
Paid-in capital in excess of par | 708,529 | 633,740 | ||||||
Distributable earnings/(accumulated deficit) | (28,542) | (22,627) | ||||||
Total net assets | 680,039 | 611,159 | ||||||
Total liabilities and net assets | $ | 1,505,427 | $ | 1,310,982 | ||||
NET ASSET VALUE PER SHARE | $ | 13.12 | $ | 13.19 | ||||
TRINITY CAPITAL INC. Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited) | |||||||||||||||||||
Three | Three | Six Months | Six Months | ||||||||||||||||
June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||
Interest and dividend income: | |||||||||||||||||||
Control investments | $ | 783 | $ | 1,083 | $ | 1,635 | $ | 2,199 | |||||||||||
Affiliate investments | 1,256 | 84 | 859 | 118 | |||||||||||||||
Non-Control / Non-Affiliate investments | 49,798 | 43,362 | 98,735 | 82,743 | |||||||||||||||
Total interest and dividend income | 51,837 | 44,529 | 101,229 | 85,060 | |||||||||||||||
Fee and other income: | |||||||||||||||||||
Affiliate investments | 835 | 674 | 1,702 | 1,127 | |||||||||||||||
Non-Control / Non-Affiliate investments | 1,969 | 842 | 2,163 | 1,396 | |||||||||||||||
Total fee and other income | 2,804 | 1,516 | 3,865 | 2,523 | |||||||||||||||
Total investment income | 54,641 | 46,045 | 105,094 | 87,583 | |||||||||||||||
EXPENSES: | |||||||||||||||||||
Interest expense and other debt financing costs | 13,885 | 11,985 | 26,029 | 23,067 | |||||||||||||||
Compensation and benefits | 9,944 | 8,350 | 19,808 | 15,967 | |||||||||||||||
Professional fees | 1,338 | 1,411 | 2,058 | 2,828 | |||||||||||||||
General and administrative | 2,092 | 1,549 | 4,021 | 3,044 | |||||||||||||||
Total expenses | 27,259 | 23,295 | 51,916 | 44,906 | |||||||||||||||
NET INVESTMENT INCOME/(LOSS) BEFORE TAXES | 27,382 | 22,750 | 53,178 | 42,677 | |||||||||||||||
Excise tax expense | 639 | 653 | 1,278 | 1,251 | |||||||||||||||
NET INVESTMENT INCOME | 26,743 | 22,097 | 51,900 | 41,426 | |||||||||||||||
NET REALIZED GAIN/(LOSS) FROM INVESTMENTS: | |||||||||||||||||||
Control investments | (3,916) | — | (3,916) | — | |||||||||||||||
Affiliate investments | — | (26,251) | — | (26,251) | |||||||||||||||
Non-Control / Non-Affiliate investments | (2,572) | (360) | (1,220) | (725) | |||||||||||||||
Net realized gain/(loss) from investments | (6,488) | (26,611) | (5,136) | (26,976) | |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) FROM INVESTMENTS: | |||||||||||||||||||
Control investments | 5,691 | (1,188) | 7,655 | (780) | |||||||||||||||
Affiliate investments | 1,673 | 26,152 | 1,926 | 27,128 | |||||||||||||||
Non-Control / Non-Affiliate investments | 3,209 | (568) | (11,008) | 1,568 | |||||||||||||||
Net change in unrealized appreciation/(depreciation) from | 10,573 | 24,396 | (1,427) | 27,916 | |||||||||||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING | $ | 30,828 | $ | 19,882 | $ | 45,337 | $ | 42,366 | |||||||||||
NET INVESTMENT INCOME PER SHARE - BASIC | $ | 0.53 | $ | 0.61 | $ | 1.07 | $ | 1.17 | |||||||||||
NET INVESTMENT INCOME PER SHARE - DILUTED | $ | 0.51 | $ | 0.58 | $ | 1.03 | $ | 1.10 | |||||||||||
NET CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 0.61 | $ | 0.55 | $ | 0.94 | $ | 1.19 | |||||||||||
NET CHANGE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 0.59 | $ | 0.52 | $ | 0.90 | $ | 1.13 | |||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC | 50,161,680 | 36,024,566 | 48,455,033 | 35,551,947 | |||||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED | 54,064,395 | 39,691,361 | 52,357,748 | 39,218,742 | |||||||||||||||
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SOURCE Trinity Capital Inc.
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