Q2 2024 Gladstone Capital Corp Earnings Call Transcript
Key Points
- Net originations were $30 million for the period, reflecting continued investment activity.
- Total interest income increased by 3% to $23.7 million due to a rise in average earning assets.
- Net realized and unrealized gains on the portfolio totaled $12.9 million, boosting the return on equity (ROE) for the quarter to 22.3%.
- The investment portfolio continues to perform well with senior debt representing 71% of the portfolio.
- Gladstone Capital Corp maintains a conservative leverage position at just below 89% of NAV, with ample availability under the bank credit facility, positioning it well for future growth.
- Management fees rose to $5.7 million due to the absence of new deal advisory fee credits.
- Net investment income declined by 9.7% to $10.8 million.
- Increased interest costs from higher average bank borrowings offset the increase in earning assets, keeping net interest unchanged.
- The company ended the quarter with two non-earning debt investments, representing $20.4 million at cost or 1.8% of assets at fair value.
- Despite overall portfolio health, there was a small uptick in nonperforming assets.
Greetings, and welcome to the Gladstone Capital Corporation second quarter earnings conference call. (Operator Instructions) It is now my pleasure to introduce your host, Mr. David Gladstone, Chief Executive Officer. Thank you, sir, you may begin.
Thank you, Latoya. That was a nice introduction and hello everybody. This is David Gladstone, Chairman, and this is the earnings conference call for Gladstone Capital for the quarter ending March 31st, 2024. Thank you all for calling in. We're always happy to talk with our shareholders and analysts and welcome the opportunity to provide updates to the company. I hope we have some good questions today, but we're going to start off first with our General Counsel, Michael McQuigg. He's going to make a few statements regarding forward looking statements. Michael?
Thanks, Dave, and good morning. Everybody. Today's report
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