Q2 2024 Stellus Capital Investment Corp Earnings Call Transcript
Key Points
- Stellus Capital Investment Corp (SCM) reported GAAP net investment income of $0.48 per share, exceeding the declared dividend of $0.40 per share.
- Core net investment income was $0.50 per share, excluding estimated excise taxes, indicating strong financial performance.
- The company realized a gain of $2 million or $0.08 per share on an equity investment during the quarter.
- Stellus Capital Investment Corp (SCM) issued $25.2 million in shares at an average gross price of $13.89 per share, all above net asset value, indicating strong investor confidence.
- The investment portfolio grew to $900 million across 100 portfolio companies, up from $876 million across 94 companies, showing positive portfolio growth.
- Net asset value per share decreased by $0.05 during the quarter due to net unrealized depreciation on the investment portfolio.
- Five loans are currently on nonaccrual, comprising 2.9% of the fair value of the total loan portfolio, indicating some asset quality concerns.
- The company experienced unrealized depreciation driven by company-specific activities, which could impact future valuations.
- Stellus Capital Investment Corp (SCM) has a relatively high leverage ratio, which may pose risks in an uncertain credit environment.
- The company is cautious about future fee waivers, which may not repeat in coming quarters, potentially affecting future income.
Good morning, ladies and gentlemen, and thank you for standing by. At this time, I would like to welcome everyone to Stellus Capital Investment Corporation's conference call to report financial results for its second fiscal quarter ended June 30, 2024. (Operator Instructions). This conference is being recorded, August 8, 2024.
It is now my pleasure to turn the call over to Mr. Robert Ladd, Chief Executive Officer of Stellus Capital Investment Corporation. Mr. Ladd, you may begin your conference.
Okay. Thank you, Paul, and good morning, everyone, and thank you for joining our conference call today covering the quarter ended June 30, 2024. Joining me this morning is Todd Huskinson, our Chief Financial Officer, who will cover important information about forward-looking statements as well as an overview of our financial information.
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