Trinity Capital Inc. Reports Third Quarter 2024 Financial Results
Trinity Capital (TRIN) reported strong Q3 2024 financial results with record total investment income of $61.8 million, up 33.2% year-over-year, and record net investment income of $29.4 million ($0.54 per share). The company achieved a 16.2% return on average equity and maintained a net asset value of $756.8 million ($13.13 per share). Total gross investment commitments reached $629.2 million, with $459.0 million funded across new and existing portfolio companies. The company's total platform assets under management increased to $2.0 billion, up 54% year-over-year, marking its 19th consecutive quarter of consistent or increased regular dividend.
Trinity Capital (TRIN) ha riportato risultati finanziari solidi per il terzo trimestre del 2024 con un reddito complessivo da investimenti record di 61,8 milioni di dollari, in aumento del 33,2% rispetto all'anno precedente, e un reddito netto da investimenti record di 29,4 milioni di dollari (0,54 dollari per azione). L'azienda ha ottenuto un ritorno del 16,2% sul patrimonio medio e ha mantenuto un valore netto degli attivi di 756,8 milioni di dollari (13,13 dollari per azione). Gli impegni totali di investimento lordo hanno raggiunto i 629,2 milioni di dollari, con 459,0 milioni di dollari finanziati tra le nuove e le esistenti società del portafoglio. Il totale degli attivi gestiti dalla piattaforma dell'azienda è aumentato a 2,0 miliardi di dollari, con un incremento del 54% rispetto all'anno precedente, segnando il 19° trimestre consecutivo con dividendi regolari consistenti o in aumento.
Trinity Capital (TRIN) informó resultados financieros sólidos para el tercer trimestre de 2024 con un ingreso total de inversión récord de 61,8 millones de dólares, un aumento del 33,2% interanual, y un ingreso neto de inversión récord de 29,4 millones de dólares (0,54 dólares por acción). La compañía logró un retorno del 16,2% sobre el capital promedio y mantuvo un valor neto de activos de 756,8 millones de dólares (13,13 dólares por acción). Los compromisos totales de inversión bruta alcanzaron los 629,2 millones de dólares, con 459,0 millones de dólares financiados en nuevas y existentes empresas de la cartera. El total de activos bajo gestión de la plataforma de la compañía aumentó a 2,0 mil millones de dólares, un incremento del 54% interanual, marcando su 19° trimestre consecutivo de dividendos regulares consistentes o en aumento.
트리니티 캐피탈 (TRIN)은 2024년 3분기 재무 실적이 강세를 보였으며, 총 투자 수익이 6,180만 달러로 기록을 세웠습니다, 이는 전년 대비 33.2% 증가한 수치입니다. 순투자 수익은 2,940만 달러 (주당 0.54 달러)로 기록을 세웠습니다. 회사는 평균 자기 자본에 대해 16.2%의 수익률을 달성했으며, 자산의 순자산 가치는 7억 5,680만 달러 (주당 13.13 달러)를 유지했습니다. 총 투자 약정은 6억 2,920만 달러에 달했으며, 4억 5,900만 달러가 신규 및 기존 포트폴리오 기업에 자금 지원되었습니다. 회사의 플랫폼 관리하에 있는 자산 총액은 20억 달러로 증가했으며, 이는 전년 대비 54% 증가한 수치로, 19번째 연속 분기에서 일관되거나 증가된 정기 배당금을 기록했습니다.
Trinity Capital (TRIN) a annoncé de bons résultats financiers pour le troisième trimestre de 2024 avec un revenu total d'investissement record de 61,8 millions de dollars, en hausse de 33,2 % par rapport à l'année précédente, et un revenu net d'investissement record de 29,4 millions de dollars (0,54 dollar par action). L'entreprise a réalisé un rendement de 16,2 % sur les capitaux propres moyens et a maintenu une valeur nette d'actifs de 756,8 millions de dollars (13,13 dollars par action). Les engagements d'investissement brut total ont atteint 629,2 millions de dollars, avec 459,0 millions de dollars financés dans des entreprises de portefeuille nouvelles et existantes. Les actifs totaux sous gestion de la plateforme de l'entreprise ont augmenté à 2,0 milliards de dollars, soit une augmentation de 54 % par rapport à l'année précédente, marquant son 19ème trimestre consécutif de dividendes réguliers cohérents ou augmentés.
Trinity Capital (TRIN) berichtete über starke Finanzzahlen für das dritte Quartal 2024 mit einem rekordverdächtigen Gesamtertrag aus Investitionen von 61,8 Millionen Dollar, was einem Anstieg von 33,2 % im Vergleich zum Vorjahr entspricht, und einem rekordverdächtigen Nettoinvestitionsertrag von 29,4 Millionen Dollar (0,54 Dollar pro Aktie). Das Unternehmen erzielte eine Rendite von 16,2 % auf das durchschnittliche Eigenkapital und hielt einen Nettowert der Vermögenswerte von 756,8 Millionen Dollar (13,13 Dollar pro Aktie) aufrecht. Die gesamten Bruttoinvestitionsverpflichtungen erreichten 629,2 Millionen Dollar, wobei 459,0 Millionen Dollar in neue und bestehende Portfoliounternehmen finanziert wurden. Die gesamten von der Plattform des Unternehmens verwalteten Vermögenswerte stiegen auf 2,0 Milliarden Dollar, was einem Anstieg von 54 % im Vergleich zum Vorjahr entspricht und das 19. aufeinanderfolgende Quartal mit konsistenten oder erhöhten regulären Dividenden markiert.
- Record total investment income of $61.8M, up 33.2% YoY
- Record net investment income of $29.4M
- Strong 16.2% Return on Average Equity
- Platform AUM increased 54% YoY to $2.0B
- NAV increased 11.3% to $756.8M
- Secured $142.5M through Series A Notes private placement
- Non-accrual loans to five portfolio companies with fair value of $22.2M (1.4% of debt portfolio)
- Increased leverage ratio to 122% from 114% in previous quarter
- Interest expense increased to $16.9M from $10.8M YoY
Insights
Trinity Capital's Q3 2024 results demonstrate robust financial performance with several notable achievements. The record total investment income of
Key performance metrics show strong fundamentals:
The expansion of the KeyBank Credit Facility to
Return on average equity of
NII climbs to a record of
Total investment income grows
Third Quarter 2024 Highlights
- Record total investment income of
$61 33.2% year-over-year - Record net investment income ("NII") of
$29 $0 - Net increase in net assets resulting from operations of
$24 $0 16.2% Return on Average Equity "ROAE" (NII/Average Equity)7.1% Return on Average Assets "ROAA" (NII/Average Assets)- Net Asset Value of
$756.8 million $13.13 - Total gross investment commitments of
$629 - Total gross investments funded of
$459 $254 $202 $2 - Total investment exits and repayments of
$198 $100 $56.8 million $41 - Total platform assets under management ("AUM") increased to a total of
$2.0 billion 54% year-over-year - 19th consecutive quarter of a consistent or increased regular dividend, with a third quarter distribution of
$0
"Trinity's record third-quarter performance is a testament to our team's focus on disciplined underwriting and proactive portfolio management," said Kyle Brown, Chief Executive Officer of Trinity. "As an alternative asset manager focused on direct lending to growth-oriented companies, our robust systems and processes, combined with the continued growth across our five distinct business verticals, positions us to consistently deliver long-term value for our investors."
Third Quarter 2024 Operating Results
For the three months ended September 30, 2024, total investment income was
Total operating expenses and excise taxes, excluding interest expense, for the third quarter of 2024 were
Interest expense for the third quarter of 2024 was
Net investment income was approximately
During the three months ended September 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 third quarter of 2024 increased by
Portfolio and Investment Activity
As of September 30, 2024, our investment portfolio had an aggregate fair value of approximately
During the third quarter, the Company originated approximately
Proceeds received from exits and repayments of the Company's investments during the third quarter totaled approximately
As of the end of the third quarter, loans to three portfolio companies and equipment financings to two portfolio companies 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 September 30, 2024 and December 31, 2023 (dollars in thousands):
September 30, 2024 | December 31, 2023 | ||||
Investment Risk Rating | Designation | Investments at | Percentage of | Investments at | Percentage of |
4.0 - 5.0 | Very Strong Performance | $ 105,385 | 6.7 % | $ 40,584 | 3.3 % |
3.0 - 3.9 | Strong Performance | 458,494 | 29.1 % | 277,867 | 22.9 % |
2.0 - 2.9 | Performing | 918,292 | 58.4 % | 805,730 | 65.9 % |
1.6 - 1.9 | Watch | 57,457 | 3.6 % | 56,740 | 4.6 % |
1.0 - 1.5 | Default/Workout | 22,201 | 1.4 % | 33,452 | 2.7 % |
Total Debt Investments excluding Senior Credit Corp 2022 LLC | 1,561,829 | 99.2 % | 1,214,373 | 99.4 % | |
Senior Credit Corp 2022 LLC (1) | 12,885 | 0.8 % | 7,704 | 0.6 % | |
Total Debt Investments | $ 1,574,714 | 100.0 % | $ 1,222,077 | 100.0 % | |
_____________ |
(1) An investment risk rating is not applied to Senior Credit Corp 2022 LLC. |
As of September 30, 2024, the Company's loan and equipment financing investments had a weighted average risk rating score of 2.9 as compared to 2.7 as of June 30, 2024. Trinity Capital'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 September 30, 2024, the Company had approximately
During the quarter, the Company issued and sold
During the quarter, Trinity entered into an amendment to its KeyBank Credit Facility. Among other changes, the amendment and associated joinder agreement increased the commitment amount available for borrowing under the KeyBank Credit Facility from
As of September 30, 2024, Trinity's leverage, or debt-to-equity ratio, was approximately
During the three months ended September 30, 2024, Trinity utilized its ATM offering program to sell 5,723,189 million shares of its common stock at a weighted average price of
Distributions
On September 18, 2024, the Company's Board of Directors declared a regular dividend totaling
Recent Developments
On October 29, 2024, the Company issued (i)
For the period from October 1, 2024 to October 29, 2024, the Company issued and sold 1,243,121 shares of its common stock at a weighted-average price of
Conference Call
Trinity Capital will hold a conference call to discuss its third quarter 2024 financial results at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) on Wednesday, October 30, 2024.
To listen to the call, please dial (800) 267-6316, or (203) 518-9783 internationally, and reference Conference ID: TRINQ324 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) 839-1180 or (402) 220-0400.
About Trinity Capital Inc.
Trinity Capital Inc. (Nasdaq: TRIN), an internally managed business development company, is a leading provider of diversified financial solutions to growth-oriented companies with institutional equity investors. Trinity Capital's investment objective is to generate current income and, to a lesser extent, capital appreciation through investments, including term loans and equipment financings and equity-related investments. Trinity Capital 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) | ||||||||
September 30, | December 31, | |||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Investments at fair value: | ||||||||
Control investments (cost of | $ | 78,109 | $ | 32,861 | ||||
Affiliate investments (cost of | 32,853 | 11,335 | ||||||
Non-Control / Non-Affiliate investments (cost of | 1,575,900 | 1,230,984 | ||||||
Total investments (cost of | 1,686,862 | 1,275,180 | ||||||
Cash and cash equivalents | 8,535 | 4,761 | ||||||
Interest receivable | 16,947 | 11,206 | ||||||
Deferred credit facility costs | 5,941 | 2,144 | ||||||
Other assets | 16,478 | 17,691 | ||||||
Total assets | $ | 1,734,763 | $ | 1,310,982 | ||||
LIABILITIES | ||||||||
KeyBank Credit Facility | $ | 290,000 | $ | 213,000 | ||||
2025 Notes, net of | 151,935 | 180,485 | ||||||
August 2026 Notes, net of | 123,906 | 123,474 | ||||||
March 2029 Notes, net of | 111,952 | — | ||||||
September 2029 Notes, net of | 111,379 | — | ||||||
December 2026 Notes, net of | 74,178 | 73,898 | ||||||
Convertible Notes, net of | 49,236 | 48,757 | ||||||
Distribution payable | 29,397 | 23,162 | ||||||
Security deposits | 9,393 | 12,287 | ||||||
Accounts payable, accrued expenses and other liabilities | 26,592 | 24,760 | ||||||
Total liabilities | 977,968 | 699,823 | ||||||
NET ASSETS | ||||||||
Common stock, | 58 | 46 | ||||||
Paid-in capital in excess of par | 790,276 | 633,740 | ||||||
Distributable earnings/(accumulated deficit) | (33,539) | (22,627) | ||||||
Total net assets | 756,795 | 611,159 | ||||||
Total liabilities and net assets | $ | 1,734,763 | $ | 1,310,982 | ||||
NET ASSET VALUE PER SHARE | $ | 13.13 | $ | 13.19 | ||||
TRINITY CAPITAL INC. Consolidated Statements of Operations (In thousands, except share and per share data) (Unaudited)
| |||||||||||||||||||
Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||
Interest and dividend income: | |||||||||||||||||||
Control investments | $ | 2,287 | $ | 1,038 | $ | 6,223 | $ | 3,238 | |||||||||||
Affiliate investments | 940 | 248 | 1,806 | 366 | |||||||||||||||
Non-Control / Non-Affiliate investments | 55,964 | 43,749 | 152,390 | 126,491 | |||||||||||||||
Total interest and dividend income | 59,191 | 45,035 | 160,419 | 130,095 | |||||||||||||||
Fee and other income: | |||||||||||||||||||
Affiliate investments | 807 | 543 | 2,509 | 1,671 | |||||||||||||||
Non-Control / Non-Affiliate investments | 1,768 | 860 | 3,931 | 2,255 | |||||||||||||||
Total fee and other income | 2,575 | 1,403 | 6,440 | 3,926 | |||||||||||||||
Total investment income | 61,766 | 46,438 | 166,859 | 134,021 | |||||||||||||||
EXPENSES: | |||||||||||||||||||
Interest expense and other debt financing costs | 16,868 | 10,783 | 42,896 | 33,850 | |||||||||||||||
Compensation and benefits | 11,528 | 8,693 | 31,336 | 24,660 | |||||||||||||||
Professional fees | 1,296 | 1,272 | 3,354 | 4,101 | |||||||||||||||
General and administrative | 2,221 | 1,659 | 6,241 | 4,700 | |||||||||||||||
Total gross expenses | 31,913 | 22,407 | 83,827 | 67,311 | |||||||||||||||
Allocated expenses to Trinity Capital Adviser, LLC | (126) | — | (126) | — | |||||||||||||||
Total net expenses | 31,787 | 22,407 | 83,701 | 67,311 | |||||||||||||||
NET INVESTMENT INCOME/(LOSS) BEFORE TAXES | 29,979 | 24,031 | 83,158 | 66,710 | |||||||||||||||
Excise tax expense | 619 | 625 | 1,897 | 1,876 | |||||||||||||||
NET INVESTMENT INCOME | 29,360 | 23,406 | 81,261 | 64,834 | |||||||||||||||
NET REALIZED GAIN/(LOSS) FROM INVESTMENTS: | |||||||||||||||||||
Control investments | — | — | (3,916) | — | |||||||||||||||
Affiliate investments | — | — | — | (26,251) | |||||||||||||||
Non-Control / Non-Affiliate investments | (13,880) | (1,868) | (15,100) | (2,593) | |||||||||||||||
Net realized gain/(loss) from investments | (13,880) | (1,868) | (19,016) | (28,844) | |||||||||||||||
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) FROM INVESTMENTS: | |||||||||||||||||||
Control investments | 1,151 | (4,083) | 7,407 | (4,865) | |||||||||||||||
Affiliate investments | 1,516 | 374 | 3,442 | 27,502 | |||||||||||||||
Non-Control / Non-Affiliate investments | 6,253 | (1,008) | (3,356) | 562 | |||||||||||||||
Net change in unrealized appreciation/(depreciation) from investments | 8,920 | (4,717) | 7,493 | 23,199 | |||||||||||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 24,400 | $ | 16,821 | $ | 69,738 | $ | 59,189 | |||||||||||
NET INVESTMENT INCOME PER SHARE - BASIC | $ | 0.54 | $ | 0.58 | $ | 1.61 | $ | 1.75 | |||||||||||
NET INVESTMENT INCOME PER SHARE - DILUTED | $ | 0.52 | $ | 0.55 | $ | 1.54 | $ | 1.66 | |||||||||||
NET CHANGE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - BASIC | $ | 0.45 | $ | 0.42 | $ | 1.38 | $ | 1.60 | |||||||||||
NET CHANGE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - DILUTED | $ | 0.43 | $ | 0.40 | $ | 1.33 | $ | 1.52 | |||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC | 54,412,566 | 40,119,009 | 50,455,373 | 37,091,030 | |||||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED | 58,373,696 | 43,850,034 | 54,416,503 | 40,822,055 | |||||||||||||||
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SOURCE Trinity Capital Inc.
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