On July 31, 2024, New Mountain Finance Corp (NMFC, Financial) released its 8-K filing announcing financial results for the quarter ended June 30, 2024. New Mountain Finance Corp is a closed-end, non-diversified management investment company that focuses on generating current income and capital appreciation through investments in debt securities and equity interests.
Quarterly Performance Overview
New Mountain Finance Corp reported net investment income of $38.2 million, or $0.36 per weighted average share, aligning with analyst estimates of $0.36 per share. The company also declared a regular third-quarter distribution of $0.32 per share and a supplemental distribution of $0.02 per share, both payable on September 30, 2024, to holders of record as of September 16, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Investment Income per Share | $0.36 | $0.39 |
| Dividends Paid per Share | $0.34 | $0.35 |
| Annualized Dividend Yield | 11.0% | 11.0% |
| Investment Portfolio | $3,227.3 million | $3,086.5 million |
| NAV per Share | $12.74 | $12.77 |
| Statutory Debt/Equity | 1.21x | 1.08x |
Portfolio and Investment Activity
New Mountain Finance Corp's portfolio had a fair value of $3,227.3 million across 123 portfolio companies as of June 30, 2024. The company generated $437.3 million in originations and received $299.1 million in repayments during the quarter. The portfolio's weighted average yield to maturity at cost was approximately 11.1%.
Management Commentary
"Our second quarter results reflect another good quarter for NMFC," said Steven B. Klinsky, NMFC Chairman. "NMFC’s consistent book value and dividend coverage reflect the benefit of our disciplined, defensive growth strategy focused on end markets that perform well across economic cycles."
"We delivered solid performance with stable sequential NII and strong originations totaling more than $437 million in the second quarter. NMFC remains well positioned to capitalize on high-quality investment opportunities in our core defensive growth power alleys. Further, we have maintained strong credit performance, improved our asset mix and reduced the interest rate on our core credit facility," commented John R. Kline, CEO.
Risk Rating and Portfolio Quality
Approximately 97.0% of NMFC's portfolio was rated green on the internal risk rating system, indicating investments that are in line with or above expectations. The company continues to focus on high-quality, defensive growth businesses with characteristics such as acyclicality, sustainable growth drivers, and strong free cash flow.
Liquidity and Capital Resources
As of June 30, 2024, NMFC had cash and cash equivalents of $119.6 million and total statutory debt outstanding of $1,659.5 million. The company's statutory debt to equity ratio was 1.21x. Additionally, NMFC had $498.1 million of available capacity on its credit facilities.
For more detailed information, please refer to the full 8-K filing and the company's Quarterly Report on Form 10-Q.
Explore the complete 8-K earnings release (here) from New Mountain Finance Corp for further details.
