Q2 2024 Rand Capital Corp Earnings Call Transcript
Key Points
- Significant growth in total investment income due to a growing portfolio and capital deployment into debt instruments.
- Successful acquisition of Sci Apps, a major portfolio investment, expected to bring substantial capital infusion.
- Declared total dividends of $0.83 per share year-to-date, with a consistent quarterly dividend of $0.29 per share.
- Portfolio fair value increased to $87.1 million, up 13% from year-end 2023 and 5% sequentially.
- Strong and flexible balance sheet with total assets growing 8% to $90.8 million, positioning the company well for future investments.
- Total expenses for the second quarter increased to $2.7 million, up from $1.3 million in the same quarter last year.
- Net investment loss of $517,000 or $0.2 per share, compared to net investment income of $493,000 or $0.19 per share in the previous year.
- Interest expense increased due to usage of the senior revolving credit facility.
- Outstanding borrowings of $17.2 million carried a high interest rate of 18.8% at quarter end.
- The need to strategically redeploy funds from the Sci Apps acquisition to drive further value and potentially increase dividends.
Greetings, and welcome to Rand Capital Corporation Second Quarter Fiscal Year 2024 financial results. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host Mr. Craig Mahalik, Investor Relations. Thank you. You may begin.
Thank you, and good afternoon, everyone. We appreciate your interest in Rand Capital and for joining us today for our second quarter 2024 financial results conference call. On the line with me are Dan Murphy, our President and Chief Executive Officer, and Margaret Presto, our Executive Vice President and Chief Financial Officer. A copy of the release and slides that accompany our conversation is available at Rand Capital.com. If you're following along in the slide deck, please turn to Slide 2, where I'd like to point out some important information. As you are likely aware, we may make some forward-looking statements during this presentation. These statements apply to future events that are subject to risks and
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