Q2 2024 Monroe Capital Corp Earnings Call Transcript
Key Points
- Monroe Capital Corp (MRCC) reported its 17th consecutive quarter where adjusted net investment income covered the $0.25 per share dividend.
- The company achieved a total annualized dividend yield of 14% based on the August 6, 2024, closing share price.
- MRCC's debt-to-equity leverage decreased from 1.6 times to 1.54 times, indicating improved financial stability.
- The portfolio is predominantly comprised of first lien senior secured investments, which are historically resistant to challenging macroeconomic environments.
- MRCC's effective yield remained stable at nearly 12%, reflecting strong income generation from its portfolio.
- Net Asset Value (NAV) decreased slightly from $201.5 million to $199.3 million, primarily due to net unrealized losses.
- The investment portfolio decreased by $15.1 million, from $500.9 million to $485.8 million, indicating a reduction in invested assets.
- Eight investments are on nonaccrual status, representing 1.9% of the portfolio at fair market value, which could impact future income.
- The SLF (Senior Loan Fund) portfolio experienced a modest decrease in average mark, indicating potential valuation challenges.
- MRCC incurred a net loss of $3.3 million for the quarter, primarily due to unrealized mark-to-market losses on certain portfolio companies.
Welcome to Monroe Capital Corporation's second-quarter 2024 earnings conference call.
Before we begin, I'd like to take a moment to remind our listeners that remarks made during this call today may contain certain forward-looking statements, including statements regarding our goals, strategies, beliefs, future potential, operating results, and cash flows. Although we believe these statements are reasonable based on management's estimates, assumptions, and projections as of today, August 8, 2024, these statements are not guarantees of future performance.
Further, time-sensitive information may no longer be accurate as at the time of any replay or listening. Actual results may differ materially as a result of risks, uncertainty, or other factors, including, but not limited to, the risk factors described from time to time in the company's filings with the SEC. Monroe Capital takes no obligation to update or revise these forward-looking statements.
I will now turn the conference call over to Ted Koenig, Chief Executive Officer of Monroe Capital Corporation. Sir, please go ahead.
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