WhiteHorse Finance, Inc. Announces Third Quarter 2024 Earnings Results and Declares Quarterly Distribution of $0.385 Per Share
WhiteHorse Finance (WHF) reported its Q3 2024 financial results, declaring a quarterly distribution of $0.385 per share. Total investment income was $22.851 million, down 2.7% from Q2. The company's investment portfolio fair value stood at $654.3 million, consisting of 129 positions across 73 companies with a weighted average yield of 10.6% on income-producing debt investments. During Q3, WHF made investments in seven new portfolio companies totaling $49.0 million. The portfolio comprises 79.0% first lien secured loans, with almost all loans being variable rate investments. Net asset value per share decreased to $12.77 from $13.45 in Q2 2024.
WhiteHorse Finance (WHF) ha riportato i risultati finanziari del terzo trimestre 2024, dichiarando una distribuzione trimestrale di $0.385 per azione. Il reddito totale degli investimenti è stato di $22.851 milioni, in calo del 2,7% rispetto al secondo trimestre. Il valore equo del portafoglio investimenti dell'azienda si è attestato a $654.3 milioni, composto da 129 posizioni in 73 società con un rendimento medio ponderato del 10,6% sugli investimenti in debito produttivi di reddito. Durante il terzo trimestre, WHF ha effettuato investimenti in sette nuove aziende del portafoglio per un totale di $49.0 milioni. Il portafoglio comprende l'79,0% di prestiti garantiti di primo grado, con quasi tutti i prestiti che sono investimenti a tasso variabile. Il valore patrimoniale netto per azione è diminuito a $12.77 rispetto a $13.45 nel secondo trimestre 2024.
WhiteHorse Finance (WHF) informó sus resultados financieros del tercer trimestre de 2024, declarando una distribución trimestral de $0.385 por acción. El ingreso total por inversiones fue de $22.851 millones, un descenso del 2,7% en comparación con el segundo trimestre. El valor razonable de la cartera de inversiones de la compañía se situó en $654.3 millones, compuesta por 129 posiciones en 73 empresas con un rendimiento promedio ponderado del 10,6% en inversiones de deuda que generan ingresos. Durante el tercer trimestre, WHF realizó inversiones en siete nuevas empresas del portafolio por un total de $49.0 millones. La cartera comprende el 79.0% de préstamos garantizados de primer gravamen, siendo casi todos los préstamos inversiones a tasa variable. El valor neto de los activos por acción disminuyó a $12.77 desde $13.45 en el segundo trimestre de 2024.
화이트호스 파이낸스 (WHF)가 2024년 3분기 재무 결과를 발표하며 주당 $0.385의 분기 배당금을 선언했습니다. 총 투자 수익은 2분기 대비 2.7% 감소한 $22.851백만 달러였습니다. 회사의 투자 포트폴리오 공정 가치는 $654.3백만 달러로, 73개 회사의 129개 포지션으로 구성되어 있으며, 수익을 창출하는 채무 투자에서 평균 가중 수익률은 10.6%입니다. 3분기 동안 WHF는 7개의 새로운 포트폴리오 회사에 총 $49.0백만 달러를 투자했습니다. 포트폴리오는 79.0%가 첫 번째 담보 대출로 구성되어 있으며, 거의 모든 대출이 변동 금리 투자입니다. 주당 순자산 가치는 2024년 2분기의 $13.45에서 $12.77로 감소했습니다.
WhiteHorse Finance (WHF) a publié ses résultats financiers pour le troisième trimestre 2024, déclarant une distribution trimestrielle de 0,385 $ par action. Le revenu total des investissements s'est élevé à 22,851 millions de dollars, en baisse de 2,7 % par rapport au deuxième trimestre. La valeur juste du portefeuille d'investissement de l'entreprise était de 654,3 millions $, comprenant 129 positions dans 73 entreprises avec un rendement moyen pondéré de 10,6 % sur les investissements en dette générant des revenus. Au cours du troisième trimestre, WHF a investi dans sept nouvelles entreprises de portefeuille pour un total de 49,0 millions de dollars. Le portefeuille est composé à 79,0 % de prêts garantis de premier rang, presque tous les prêts étant des investissements à taux variable. La valeur nette d'actif par action a diminué de 13,45 $ au 2e trimestre 2024 à 12,77 $.
WhiteHorse Finance (WHF) hat seine finanziellen Ergebnisse für das 3. Quartal 2024 bekannt gegeben und eine vierteljährliche Ausschüttung von 0,385 $ pro Aktie erklärt. Die Gesamteinnahmen aus Investitionen betrugen 22,851 Millionen Dollar, ein Rückgang von 2,7% im Vergleich zum 2. Quartal. Der beizulegende Zeitwert des Investitionsportfolios des Unternehmens lag bei 654,3 Millionen $, bestehend aus 129 Positionen in 73 Unternehmen, mit einer gewichteten durchschnittlichen Rendite von 10,6% auf einkommensproduzierende Schuldeninvestitionen. Im 3. Quartal tätigte WHF Investitionen in sieben neue Portfoliounternehmen in Höhe von insgesamt 49,0 Millionen Dollar. Das Portfolio besteht zu 79,0% aus gesicherten Darlehen erster Hypothek, wobei fast alle Darlehen variable Zinssatzinvestitionen sind. Der Nettovermögenswert pro Aktie sank von 13,45 $ im 2. Quartal 2024 auf 12,77 $.
- Core net investment income exceeded regular dividend
- Made new investments totaling $49.0 million in seven portfolio companies
- Strong portfolio composition with 79% first lien secured loans
- Declared special distribution of $0.245 per share
- Total investment income decreased by 2.7% quarter-over-quarter
- Net asset value per share declined by 5.1% to $12.77
- Net unrealized depreciation of $16.051 million
- Net decrease in net assets of $6.858 million from operations
Insights
The Q3 2024 results reveal mixed performance for WhiteHorse Finance. Core net investment income of
The portfolio faced significant challenges with net unrealized depreciation of
The portfolio remains well-positioned with
Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, "I am pleased to report that WhiteHorse generated another quarter of core net investment income in excess of our regular dividend despite some company-specific challenges in our portfolio. We are working to optimize the outcomes for these specific credits, and the balance of our portfolio is generally stable and performing well. Although the broader lending market remains aggressive, we continue to see opportunities and source deals in areas of the market where there is less competition. Based on current market terms and conditions, we remain focused on certain segments of the lending market where we believe we have a competitive advantage and are selectively investing in credits with positive free cash flow, limited cyclicality, and strong owners. This is consistent with the rigorous underwriting standards that we adhere to regardless of market conditions."
Summary Information as of September 30, 2024 and June 30, 2024 (unaudited):
Three Months Ended | Three Months Ended | Change | |||||||||
($ in thousands except per share data) | September 30, 2024 | June 30, 2024 | $ | % | |||||||
Total investment income | $ | 22,851 | $ | 23,482 | (631) | (2.7) | |||||
Total expenses, including excise tax | 13,697 | 14,190 | (493) | (3.5) | |||||||
Net investment income and core net investment income(1) | 9,154 | 9,292 | (138) | (1.5) | |||||||
Net investment income and core net investment income(1) per share | 0.394 | 0.400 | (0.006) | (1.5) | |||||||
Distributions per share | 0.385 | 0.385 | - | - | |||||||
Net realized gains (losses) | 39 | (93) | 132 | (141.9) | |||||||
Net unrealized appreciation (depreciation) | (16,051) | (1,360) | (14,691) | 1,080.2 | |||||||
Net increase (decrease) in net assets resulting from operations | (6,858) | 7,839 | (14,697) | (187.5) | |||||||
($ in thousands except per share data) | September 30, 2024 | As of June 30, 2024 | $ | % | |||||||
Total investments, at fair value(2) | $ | 654,338 | $ | 660,005 | (5,667) | (0.9) | |||||
STRS JV total investments, at fair value | 309,797 | 324,844 | (15,047) | (4.6) | |||||||
Net asset value per share | 12.77 | 13.45 | (0.68) | (5.1) | |||||||
Portfolio and Investment Activity
As of September 30, 2024, the fair value of WhiteHorse Finance's investment portfolio was
During the three months ended September 30, 2024, WhiteHorse Finance made investments in seven new portfolio companies for a total of
In addition to the transactions discussed above, during the three months ended September 30, 2024, WhiteHorse Finance transferred assets comprised of three new and one existing portfolio companies, totaling
Distributions
The Company's board of directors has declared a distribution of
On August 8, 2024, the Company declared a distribution of
Distributions are paid from taxable earnings and may include return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in the Company's periodic reports filed with the Securities and Exchange Commission.
Conference Call
WhiteHorse Finance will host a conference call to discuss its third quarter results for the period ended September 30, 2024, at 11:30 a.m. ET on Thursday, November 7, 2024. To access the teleconference, please dial 800-343-4136 (domestic) or +1 203-518-9843 (international) approximately 10 minutes before the teleconference's scheduled start time and reference ID #WHFQ324. Investors may also access the call on the investor relations portion of the Company's website www.whitehorsefinance.com.
If you are unable to access the live teleconference, a replay will be available beginning approximately two hours after the call's completion through November 14, 2024. The teleconference replay can be accessed by dialing 800-839-9307 or +1 402-220-6085 for international callers. A webcast replay will also be available on the investor relations portion of the Company's website at www.whitehorsefinance.com.
About WhiteHorse Finance, Inc.
WhiteHorse Finance is a business development company that originates and invests in loans to privately held, lower middle market companies across a broad range of industries. The Company's investment activities are managed by H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, LLC, ("H.I.G. Capital"). H.I.G. Capital is a leading global alternative asset manager with
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. 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.
(1) "Core net investment income" is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company's financial performance excluding (i) the net impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and (iii) excise and other income taxes related to such net realized gains and losses (net of incentive fees). The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Additional information on core net investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, are set forth in Schedule 1 hereto.
(2) Includes investments in WHF STRS Ohio Senior Loan Fund LLC ("STRS JV"), an unconsolidated joint venture, totaling
(3) Based on total capital raised by H.I.G. Capital and affiliates.
SCHEDULE 1
As a supplement to GAAP financial measures, the Company has provided information relating to core net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income determined in accordance with GAAP. The Company's non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted to exclude the net impact of costs associated with the refinancing of the Company's indebtedness, the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and excise or other income taxes related to such net realized gains and losses (net of incentive fees). There were no excise or other income taxes related to net realized gains and losses for the quarters ended September 30, 2024 and September 30, 2023.
The following table provides a reconciliation of net investment income to core net investment income for the three months ended September 30, 2024 and September 30, 2023 (in thousands, except per share data):
September 30, 2024 | September 30, 2023 | ||||||||||||||
Amount | Per Share | Amount | Per Share | ||||||||||||
Amounts | Amounts | ||||||||||||||
Net investment income | $ | 9,154 | $ | 0.394 | $ | 10,813 | $ | 0.465 | |||||||
Net impact of costs associated with refinancing of indebtedness | - | - | - | - | |||||||||||
Accrual for capital gains incentive fee | - | - | - | - | |||||||||||
Net impact of excise tax expense related to net realized gains and losses | - | - | - | - | |||||||||||
Core net investment income | $ | 9,154 | $ | 0.394 | $ | 10,813 | $ | 0.465 | |||||||
Contacts | |
Stuart Aronson | |
WhiteHorse Finance, Inc. | |
212-506-0500 | |
or | |
Joyson Thomas | |
WhiteHorse Finance, Inc. | |
305-379-2322 | |
or | |
Robert Brinberg |
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SOURCE WhiteHorse Finance, Inc.
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