PR Newswire
HOUSTON
, March 4, 2025 /PRNewswire/ — Stellus Capital Investment Corporation (NYSE:SCM) (“Stellus”, “we”, or the “Company”) today announced financial results for its fourth fiscal quarter and year ended December 31, 2024.
Robert T. Ladd, Chief Executive Officer of Stellus, stated, “I am pleased to report solid operating results for the quarter ended December 31, 2024, in which we earned U.S. GAAP net investment income of $0.35 per share and core net investment income of $0.37 per share. During the quarter, we funded $109 million of investments and received $65 million of repayments, bringing the total portfolio to $953 million at fair value. I’m also pleased to report that our investors have received a total of $288 million in aggregate distributions, equivalent to $16.69 per share, since we began operations.”
FINANCIAL HIGHLIGHTS
($ in millions, except data relating to per share amounts and shares outstanding)
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Net investment income |
$9.64 |
$0.35 |
$11.91 |
$0.49 |
$41.93 |
$1.64 |
$42.21 |
$1.92 |
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Core net investment income(1) |
10.15 |
0.37 |
12.16 |
0.50 |
43.74 |
1.71 |
42.97 |
1.95 |
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Net realized gain (loss) on investments |
5.95 |
0.22 |
(30.54) |
(1.26) |
(15.74) |
(0.62) |
(30.21) |
(1.38) |
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Net realized loss on foreign currency translation |
(0.02) |
— |
(0.04) |
— |
(0.09) |
— |
(0.11) |
— |
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Benefit for taxes on realized loss on investments in taxable subsidiaries |
— |
— |
2.99 |
0.12 |
— |
— |
2.99 |
0.14 |
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Total realized income(2) |
$15.57 |
$0.57 |
($15.68) |
($0.65) |
$26.10 |
$1.02 |
$14.88 |
$0.68 |
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Distributions |
(10.90) |
(0.40) |
(9.65) |
(0.40) |
(41.22) |
(1.61) |
(35.53) |
(1.61) |
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Net unrealized change in (depreciation) appreciation on investments |
(6.86) |
(0.25) |
27.13 |
1.13 |
19.57 |
0.76 |
2.79 |
0.13 |
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Net unrealized change in (depreciation) appreciation on foreign currency translation |
(0.02) |
— |
0.01 |
— |
(0.02) |
— |
(0.01) |
— |
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Benefit (provision) for taxes on unrealized depreciation (appreciation) on investments in taxable subsidiaries |
— |
— |
0.02 |
— |
0.19 |
0.01 |
(0.13) |
(0.01) |
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Net increase in net assets resulting from operations |
$8.69 |
$0.32 |
$11.48 |
$0.48 |
$45.84 |
$1.79 |
$17.53 |
$0.80 |
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Weighted average shares outstanding |
27,174,972 |
24,125,642 |
25,596,593 |
22,004,648 |
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(1) |
Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non-U.S. generally accepted accounting principles (“U.S. GAAP”) measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net investment income in accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements. |
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(2) |
Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and loss on debt extinguishment; all U.S. GAAP measures. |
PORTFOLIO ACTIVITY
($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)
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Investments at fair value |
$953.5 |
$874.5 |
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Total assets |
$980.9 |
$908.1 |
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Net assets |
$369.9 |
$319.9 |
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Shares outstanding |
27,481,118 |
24,125,642 |
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Net asset value per share |
$13.46 |
$13.26 |
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New investments |
$108.5 |
$44.2 |
$221.2 |
$183.9 |
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Repayments of investments |
(64.5) |
(55.2) |
(151.8) |
(134.2) |
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Net activity |
$44.0 |
($11.0) |
$69.4 |
$49.7 |
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Number of portfolio company investments |
105 |
93 |
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Number of debt investments |
92 |
81 |
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Weighted average yield of debt and other income producing investments(3) |
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Cash |
9.5 % |
11.0 % |
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Payment-in-kind (“PIK”) |
0.4 % |
0.5 % |
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Fee amortization |
0.4 % |
0.4 % |
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Total |
10.3 % |
11.9 % |
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Weighted average yield on total investments(4) |
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Cash |
8.9 % |
10.3 % |
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PIK |
0.4 % |
0.5 % |
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Fee amortization |
0.4 % |
0.3 % |
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Total |
9.7 % |
11.1 % |
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(3) |
The dollar-weighted average annualized effective yield is computed using the effective interest rate for the Company’s debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio. The dollar-weighted average annualized yield on the Company’s investments for a given period will generally be higher than what investors in the Company’s common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company’s expenses or any sales load that may be paid by investors. |
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(4) |
The dollar-weighted average yield on total investments takes the same yields as calculated in the footnote above but weights them to determine the weighted average effective yield as a percentage of the Company’s total investments, including non-income producing equity positions and debt investments on non-accrual status. |
Results of Operations
Investment income for the three months ended December 31, 2024 and 2023 totaled $25.6 million and $28.0 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended December 31, 2024 and 2023 totaled $16.0 million and $16.4 million, respectively. For the same respective periods, base management fees totaled $4.0 million and $3.9 million, income incentive fees totaled $2.4 million and $2.7 million, respectively; fees and expenses related to the Company’s borrowings totaled $7.7 million and $8.0 million (including interest and amortization of deferred financing costs), respectively; administrative expenses totaled $0.5 million for both periods, income tax totaled $0.5 million and $0.3 million, respectively; and other expenses totaled $0.9 million and $1.0 million, respectively. The Company waived $0.3 million in income incentive fees due to the total return limitation for the three months ended December 31, 2023 and none for the three months ended December 31, 2024.
Net investment income was $9.6 million and $11.9 million, or $0.35 and $0.49 per common share based on weighted average common shares outstanding of 27,174,972 and 24,125,642 for the three months ended December 31, 2024 and 2023, respectively. Core net investment income, which is a non-U.S. GAAP measure that excludes the capital gains incentive fee (reversal) and income tax expense accruals, for the three months ended December 31, 2024 and 2023 was $10.1 million and $12.2 million, or $0.37 and $0.50 per share, respectively.
For the three months ended December 31, 2024 and 2023, the Company’s investment portfolio had a net change in unrealized (depreciation) appreciation of ($6.9) million and $27.1 million, respectively, and the Company had net realized gains (losses) of $6.0 million and ($30.5) million, respectively.
Net increase in net assets resulting from operations totaled $8.7 million and $11.5 million, or $0.32 and $0.48 per common share, based on weighted average common shares outstanding of 27,174,972 and 24,125,642 for the three months ended December 31, 2024 and 2023, respectively.
Liquidity and Capital Resources
As of December 31, 2024, the Company’s amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the “Credit Facility”) provided for borrowings in an aggregate amount of up to $315.0 million on a committed basis. As of December 31, 2024 and December 31, 2023, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $350.0 million.
As of December 31, 2024 and December 31, 2023, the Company had $175.4 million and $160.1 million in outstanding borrowings under the Credit Facility, respectively.
The Company issued 441,754 shares during the three months ended December 31, 2024 under the At-the-Market Program (“ATM Program”) for gross proceeds of $6.1 million. The average per share offering price of shares issued under the ATM Program during the three months ended December 31, 2024 was $13.86.
Distributions
During the three months ended December 31, 2024 and 2023, the Company declared aggregate distributions of $0.40 per share for both periods ($10.9 million and $9.6 million in the aggregate, respectively). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Approximately $0.5 million of the dividends declared in 2024 are expected to be characterized as long-term capital gains. None of these dividends are expected to include a return of capital.
Recent Portfolio Activity
The Company invested in the following portfolio companies during the three months ended December 31, 2024:
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Add-On Investment |
October 9, 2024 |
Ledge Lounger, Inc.* |
Provider of premium in-pool and backyard furniture |
$ |
34,504 |
Equity |
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Add-On Investment |
October 18, 2024 |
Compost 360 Investments, LLC* |
Organic waste recycler and producer of compost, mulch, and engineered soils |
$ |
49,280 |
Equity |
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New Investment |
October 31, 2024 |
Norplex Micarta Acquisition, Inc. |
Manufacturer of thermoset composite laminates |
$ |
13,000,000 |
Senior Secured – First Lien |
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$ |
500,000 |
Revolver Commitment |
|||||||||
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$ |
739,804 |
Equity |
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Add-On Investment |
November 7, 2024 |
Green Intermediateco II, Inc.* |
Cyber-security focused value-added reseller and associated service provider |
$ |
1,300,000 |
Senior Secured – First Lien |
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Add-On Investment |
November 12, 2024 |
Curion Holdings, LLC* |
Provider of product testing and consumer insights |
$ |
21,710 |
Revolver Commitment |
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Add-On Investment |
November 12, 2024 |
Cerebro Buyer, LLC* |
Manufacturer of single-use electrodes for medical procedures |
$ |
1,130,707 |
Delayed Draw Term Loan Commitment |
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Add-On Investment |
November 12, 2024 |
Service Minds Company, LLC* |
Provider of residential electrical services |
$ |
45,000 |
Revolver Commitment |
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New Investment |
November 14, 2025 |
Spectra Confectionary Ltd. |
Manufacturer and wholesaler of confectionary products |
$ |
5,317,225 |
Senior Secured – First Lien |
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$ |
297,765 |
Equity |
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New Investment |
November 15, 2024 |
MBH Management, LLC |
Outsourced provider of physician-focused staffing solutions for post-acute facilities |
$ |
9,476,743 |
Senior Secured – First Lien |
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$ |
500,000 |
Delayed Draw Term Loan Commitment |
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$ |
500,000 |
Revolver Commitment |
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$ |
646,944 |
Equity |
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Add-On Investment |
November 20, 2024 |
Microbe Formulas LLC* |
Provider of dietary supplements and other natural solutions for detox and gut health |
$ |
4,265,082 |
Senior Secured – First Lien |
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Add-On Investment |
November 26, 2024 |
Equine Network, LLC* |
Provider of content, information, tech-enabled services, and hosts competitions for the U.S. equine industry |
$ |
1,146,399 |
Senior Secured – First Lien |
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$ |
66,667 |
Revolver Commitment |
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Add-On Investment |
December 2, 2024 |
2X LLC* |
Provider of outsourced digital business-to-business marketing-as-a-service |
$ |
3,861,355 |
Senior Secured – First Lien |
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Add-On Investment |
December 3, 2024 |
Camp Profiles LLC* |
Provider of digital marketing services to small and medium-sized businesses |
$ |
2,250,000 |
Senior Secured – First Lien |
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New Investment |
December 4, 2024 |
AMII Acquisition, LLC |
Franchisor of ballroom dance studios |
$ |
8,819,468 |
Senior Secured – First Lien |
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$ |
500,000 |
Revolver Commitment |
|||||||||
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$ |
142,460 |
Equity |
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Add-On Investment |
December 6, 2024 |
Advanced Barrier Extrusions, LLC* |
Manufacturer of high barrier forming |
$ |
604,622 |
Revolver Commitment |
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New Investment |
December 9, 2024 |
United States Drug Testing Laboratories, LLC |
Provider of drug and alcohol forensic toxicology testing |
$ |
6,000,000 |
Senior Secured – First Lien |
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$ |
500,000 |
Delayed Draw Term Loan Commitment |
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$ |
100,000 |
Revolver Commitment |
|||||||||
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$ |
110,000 |
Equity |
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New Investment |
December 17, 2024 |
iNovex Information Systems Inc. |
Provider of government IT services |
$ |
7,522,184 |
Senior Secured – First Lien |
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$ |
100,000 |
Revolver Commitment |
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New Investment |
December 19, 2024 |
Eskola, LLC |
Provider of commercial re-roofing services |
$ |
7,558,348 |
Senior Secured – First Lien |
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$ |
6,717,083 |
Revolver Commitment |
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$ |
893,991 |
Equity |
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Add-On Investment |
December 20, 2024 |
CEATI International, Inc.* |
Provider of intellectual content, technical trade programs, research groups, and conferences for utility companies |
$ |
3,200,000 |
Senior Secured – First Lien |
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New Investment |
December 20, 2024 |
CombinedCaterers, Inc. |
Provider of premium catering services in the Southeast |
$ |
6,796,831 |
Senior Secured – First Lien |
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$ |
2,216,358 |
Delayed Draw Term Loan Commitment |
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$ |
100,000 |
Revolver Commitment |
|||||||||
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$ |
465,637 |
Equity |
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Add-On Investment |
December 27, 2024 |
Naumann/Hobbs Material Handling Corporation II, Inc.* |
Material handling equipment dealer and aftermarket parts and services provider |
$ |
142,200 |
Equity |
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New Investment |
December 30, 2024 |
Tiger 21, LLC |
Facilitator of peer-to-peer wealth focused insights and events for ultra-high net worth individuals |
$ |
12,000,000 |
Senior Secured – First Lien |
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$ |
100,000 |
Revolver Commitment |
|||||||||
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$ |
564,635 |
Equity |
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*Existing portfolio company |
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The Company realized investments in the following portfolio companies during the three months ended December 31, 2024:
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Full Repayment |
November 4, 2024 |
Baker Manufacturing Company, LLC* |
Manufacturer of water well equipment, specialized filtration pumps, and custom castings |
$ |
12,738,093 |
$ |
— |
Senior Secured – First Lien |
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Full Realization |
November 5, 2024 |
Health Monitor Holdings, LLC* |
Provider of point-of-care patient engagement and marketing solutions for pharmaceutical companies |
$ |
1,704,298 |
$ |
651,379 |
Equity |
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Full Repayment |
November 21, 2024 |
Intuitive Health, LLC* |
Operator of freestanding urgent care/emergency room combination facilities |
$ |
16,647,430 |
$ |
— |
Senior Secured – First Lien |
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$ |
514,101 |
$ |
514,101 |
Equity |
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Full Repayment |
December 2, 2024 |
Integrated Oncology Network, LLC* |
Provider of radiation oncology center management services |
$ |
17,518,143 |
$ |
— |
Senior Secured – First Lien |
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*Existing portfolio company |
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Events Subsequent to December 31, 2024
The Company’s management has evaluated subsequent events through March 4, 2025. There have been no subsequent events that require recognition or disclosure except for the following described below.
Investment Portfolio
The Company invested in the following portfolio companies subsequent to December 31, 2024:
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New Investment |
January 10, 2025 |
Pacific Shoring Products, LLC |
Manufacturer of trench shoring and safety equipment sold to equipment rental companies |
$ |
8,500,000 |
Senior Secured – First Lien |
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$ |
100,000 |
Revolver Commitment |
|||||||||
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$ |
498,491 |
Equity |
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New Investment |
January 15, 2025 |
Environmental Remedies, LLC |
Residential asbestos abatement provider |
$ |
7,330,762 |
Senior Secured – First Lien |
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$ |
2,681,986 |
Delayed Draw Term Loan Commitment |
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$ |
100,000 |
Revolver Commitment |
|||||||||
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$ |
163,109 |
Equity |
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New Investment |
January 16, 2025 |
Plus Delta Partners, Inc. |
Provider of fundraising training and tools for higher education institutions and other nonprofits |
$ |
7,400,000 |
Senior Secured – First Lien |
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$ |
3,753,955 |
Delayed Draw Term Loan Commitment |
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$ |
100,000 |
Revolver Commitment |
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$ |
325,764 |
Equity |
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New Investment |
January 24, 2025 |
Strategus, LLC |
Provider of connected TV advertising services |
$ |
7,801,439 |
Senior Secured – First Lien |
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$ |
2,524,737 |
Delayed Draw Term Loan Commitment |
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$ |
100,000 |
Revolver Commitment |
|||||||||
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$ |
170,362 |
Equity |
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Add-On Investment |
February 10, 2025 |
Florachem Corporation* |
Distiller and supplier of natural citrus, pine, and specialty inputs |
$ |
877,716 |
Senior Secured – First Lien |
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New Investment |
February 28, 2025 |
Identity Theft Guard Solutions, Inc. |
Cyber breach response and monitoring services |
$ |
8,722,887 |
Senior Secured – First Lien |
|||||
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$ |
100,000 |
Revolver Commitment |
|||||||||
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$ |
352,915 |
Equity |
|||||||||
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New Investment |
February 28, 2025 |
MoboTrex, LLC |
Distributor and manufacturer of intelligent traffic solution equipment |
$ |
5,137,070 |
Senior Secured – First Lien |
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$ |
109,312 |
Delayed Draw Term Loan Commitment |
|||||||||
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$ |
100,000 |
Revolver Commitment |
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*Existing portfolio company |
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Credit Facility
The outstanding balance under the Credit Facility as of March 4, 2025 was $230.8 million.
SBA-guaranteed debentures
On February 14, 2025, Stellus Capital SBIC LP prepaid all principal and accrued interest related to SBA-guaranteed debentures maturing on March 1, 2025. The outstanding balance of SBA-guaranteed debentures as of March 4, 2025 was $308.8 million.
Distributions Declared
On January 9, 2025, the Company’s Board of Directors declared a regular monthly distribution for each of January, February and March 2025, as follows:
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1/9/2025 |
1/31/2025 |
1/31/2025 |
2/14/2025 |
$ |
0.1333 |
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1/9/2025 |
2/28/2025 |
2/28/2025 |
3/14/2025 |
$ |
0.1333 |
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1/9/2025 |
3/31/2025 |
3/31/2025 |
4/15/2025 |
$ |
0.1333 |
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Conference Call Information
Stellus Capital Investment Corporation will host a conference call to discuss these results on Wednesday, March 5, 2025 at 10:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.
For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 643131. Starting approximately two hours after the conclusion of the call, a replay will be available through Wednesday, March 19, 2025 by dialing (877) 481-4010 and entering passcode 52042. The replay will also be available on the Company’s website.
For those wishing to participate via Live Webcast, connect via the Public (SCIC) section of the Company’s website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on the Company’s website for approximately 90 days.
About Stellus Capital Investment Corporation
The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien (including unitranche) loans, second lien loans and unsecured debt financing, with corresponding equity co-investments. The Company’s investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the “Public (SCIC)” tab.
Forward-Looking Statements
Statements included herein may contain “forward-looking statements” which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts
Stellus Capital Investment Corporation
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
[email protected]
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Controlled investments at fair value (amortized cost of $17,934,808 and $17,285,138, respectively) |
$ |
7,652,436 |
$ |
6,175,994 |
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Non-controlled, non-affiliated investments, at fair value (amortized cost of $943,853,898 and $884,858,412, respectively) |
945,845,252 |
868,284,689 |
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Cash and cash equivalents |
20,058,594 |
26,125,741 |
||||
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Receivable for sales and repayments of investments |
335,689 |
371,877 |
||||
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Interest receivable |
4,947,765 |
4,882,338 |
||||
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Income tax receivable |
1,301,965 |
1,588,708 |
||||
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Other receivables |
87,995 |
42,995 |
||||
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Related party receivable |
3,687 |
— |
||||
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Deferred offering costs |
— |
7,312 |
||||
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Prepaid expenses |
666,866 |
606,674 |
||||
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|
$ |
980,900,249 |
$ |
908,086,328 |
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Notes Payable |
$ |
99,444,355 |
$ |
98,996,412 |
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|
Credit Facility payable |
172,314,315 |
156,564,776 |
||||
|
SBA-guaranteed debentures |
321,251,939 |
320,273,358 |
||||
|
Dividends payable |
3,663,233 |
— |
||||
|
Management fees payable |
4,034,109 |
2,918,536 |
||||
|
Income incentive fees payable |
3,109,560 |
2,885,180 |
||||
|
Interest payable |
5,281,343 |
5,241,164 |
||||
|
Unearned revenue |
548,626 |
397,725 |
||||
|
Administrative services payable |
393,513 |
402,151 |
||||
|
Deferred tax liability |
— |
188,893 |
||||
|
Other accrued expenses and liabilities |
937,316 |
278,345 |
||||
|
|
$ |
610,978,309 |
$ |
588,146,540 |
||
|
|
||||||
|
|
$ |
369,921,940 |
$ |
319,939,788 |
||
|
|
||||||
|
Common stock, par value $0.001 per share (100,000,000 shares authorized; 27,481,118 and 24,125,642 issued and outstanding, respectively) |
$ |
27,481 |
$ |
24,125 |
||
|
Paid-in capital |
379,549,272 |
335,918,984 |
||||
|
Total distributable loss |
(9,654,813) |
(16,003,321) |
||||
|
|
$ |
369,921,940 |
$ |
319,939,788 |
||
|
|
$ |
980,900,249 |
$ |
908,086,328 |
||
|
|
$ |
13.46 |
$ |
13.26 |
||
|
|
|||||||||
|
|
|||||||||
|
|
|
|
|||||||
|
|
|||||||||
|
From controlled investments: |
|||||||||
|
Interest income |
$ |
81,636 |
$ |
37,897 |
$ |
— |
|||
|
From non-controlled, non-affiliated investments |
|||||||||
|
Interest income |
99,804,184 |
101,978,891 |
72,964,999 |
||||||
|
Other income |
4,850,313 |
3,830,780 |
2,147,577 |
||||||
|
|
$ |
104,736,133 |
$ |
105,847,568 |
$ |
75,112,576 |
|||
|
|
|||||||||
|
Management fees |
$ |
15,698,129 |
$ |
15,452,347 |
$ |
14,848,174 |
|||
|
Valuation fees |
380,239 |
373,628 |
351,752 |
||||||
|
Administrative services expenses |
1,916,283 |
1,908,191 |
1,810,576 |
||||||
|
Income incentive fees |
10,045,966 |
10,189,888 |
3,782,151 |
||||||
|
Capital gains incentive fee reversal |
— |
(569,528) |
(2,818,623) |
||||||
|
Professional fees |
1,190,232 |
1,455,372 |
1,103,693 |
||||||
|
Directors’ fees |
412,000 |
406,000 |
329,000 |
||||||
|
Insurance expense |
499,913 |
492,596 |
503,907 |
||||||
|
Interest expense and other fees |
31,506,068 |
32,011,317 |
24,469,285 |
||||||
|
Income tax expense |
1,808,838 |
1,333,452 |
1,161,668 |
||||||
|
Other general and administrative expenses |
1,175,765 |
891,170 |
984,309 |
||||||
|
|
$ |
64,633,433 |
$ |
63,944,433 |
$ |
46,525,892 |
|||
|
Income incentive fee waiver |
(1,826,893) |
(307,442) |
— |
||||||
|
|
$ |
62,806,540 |
$ |
63,636,991 |
$ |
46,525,892 |
|||
|
|
$ |
41,929,593 |
$ |
42,210,577 |
$ |
28,586,684 |
|||
|
Net realized (loss) gain on non-controlled, non-affiliated investments |
$ |
(15,737,004) |
$ |
(30,211,467) |
$ |
3,660,595 |
|||
|
Net realized loss on foreign currency translations |
(94,730) |
(112,481) |
(6,091) |
||||||
|
Net change in unrealized appreciation (depreciation) on controlled investments |
826,772 |
(430,577) |
— |
||||||
|
Net change in unrealized appreciation (depreciation) on non-controlled, non-affiliated investments |
18,743,637 |
3,222,729 |
(17,542,230) |
||||||
|
Net change in unrealized (depreciation) appreciation on foreign currency translations |
(14,755) |
(6,504) |
6,040 |
||||||
|
Benefit (provision) for taxes on net unrealized depreciation (appreciation) on investments |
188,893 |
(126,957) |
(213,214) |
||||||
|
Benefit for taxes on net realized loss on investments |
2,221 |
2,987,847 |
— |
||||||
|
|
$ |
45,844,627 |
17,533,167 |
14,491,784 |
|||||
|
|
$ |
1.64 |
$ |
1.92 |
$ |
1.46 |
|||
|
|
$ |
1.79 |
$ |
0.80 |
$ |
0.74 |
|||
|
|
25,596,593 |
22,004,648 |
19,552,931 |
||||||
|
|
$ |
1.61 |
$ |
1.61 |
$ |
1.30 |
|||
|
|
||||||||||||||
|
|
|
|||||||||||||
|
|
|
|
|
|||||||||||
|
|
|
|
|
|
||||||||||
|
|
19,517,595 |
$ |
19,518 |
$ |
274,559,121 |
$ |
10,532,594 |
$ |
285,111,233 |
|||||
|
Net investment income |
— |
— |
— |
28,586,684 |
28,586,684 |
|||||||||
|
Net realized gain on investments |
— |
— |
— |
3,660,595 |
3,660,595 |
|||||||||
|
Net realized loss on foreign currency translation |
— |
— |
— |
(6,091) |
(6,091) |
|||||||||
|
Net change in unrealized depreciation on investments |
— |
— |
— |
(17,542,230) |
(17,542,230) |
|||||||||
|
Net change in unrealized appreciation on foreign currency translations |
— |
— |
— |
6,040 |
6,040 |
|||||||||
|
Provision for taxes on unrealized appreciation on investments |
— |
— |
— |
(213,214) |
(213,214) |
|||||||||
|
Return of capital and other tax related adjustments |
— |
— |
(1,040,884) |
1,040,884 |
— |
|||||||||
|
Distributions from net investment income |
— |
— |
— |
(21,633,343) |
(21,633,343) |
|||||||||
|
Distributions from net realized capital gains |
— |
— |
— |
(3,789,693) |
(3,789,693) |
|||||||||
|
Issuance of common stock, net of offering costs(1) |
149,174 |
149 |
1,596,483 |
— |
1,596,632 |
|||||||||
|
|
19,666,769 |
$ |
19,667 |
$ |
275,114,720 |
$ |
642,226 |
$ |
275,776,613 |
|||||
|
Net investment income |
— |
— |
— |
42,210,577 |
42,210,577 |
|||||||||
|
Net realized loss on investments |
— |
— |
— |
(30,211,467) |
(30,211,467) |
|||||||||
|
Net realized loss on foreign currency translation |
— |
— |
— |
(112,481) |
(112,481) |
|||||||||
|
Net change in unrealized appreciation on investments |
— |
— |
— |
2,792,152 |
2,792,152 |
|||||||||
|
Net change in unrealized depreciation on foreign currency translations |
— |
— |
— |
(6,504) |
(6,504) |
|||||||||
|
Provision for taxes on unrealized appreciation on investments |
— |
— |
— |
(126,957) |
(126,957) |
|||||||||
|
Benefit for taxes on realized loss on investments |
— |
— |
— |
2,987,847 |
2,987,847 |
|||||||||
|
Return of capital and other tax related adjustments |
— |
— |
(1,348,766) |
1,348,766 |
— |
|||||||||
|
Distributions from net investment income |
— |
— |
— |
(35,080,734) |
(35,080,734) |
|||||||||
|
Distributions from net realized capital gains |
— |
— |
— |
(446,746) |
(446,746) |
|||||||||
|
Issuance of common stock, net of offering costs(1) |
4,458,873 |
4,458 |
62,153,030 |
— |
62,157,488 |
|||||||||
|
|
24,125,642 |
$ |
24,125 |
$ |
335,918,984 |
$ |
(16,003,321) |
$ |
319,939,788 |
|||||
|
Net investment income |
— |
— |
— |
41,929,593 |
41,929,593 |
|||||||||
|
Net realized loss on investments |
— |
— |
— |
(15,737,004) |
(15,737,004) |
|||||||||
|
Net realized loss on foreign currency translation |
— |
— |
— |
(94,730) |
(94,730) |
|||||||||
|
Net change in unrealized appreciation on investments |
— |
— |
— |
19,570,409 |
19,570,409 |
|||||||||
|
Net change in unrealized depreciation on foreign currency translations |
— |
— |
— |
(14,755) |
(14,755) |
|||||||||
|
Provision for taxes on unrealized appreciation on investments |
— |
— |
— |
188,893 |
188,893 |
|||||||||
|
Benefit for taxes on realized loss on investments |
— |
— |
— |
2,221 |
2,221 |
|||||||||
|
Return of capital and other tax related adjustments |
— |
— |
(1,727,556) |
1,727,556 |
— |
|||||||||
|
Distributions from net investment income |
— |
— |
— |
(40,679,308) |
(40,679,308) |
|||||||||
|
Distributions from net realized capital gains |
— |
— |
— |
(544,367) |
(544,367) |
|||||||||
|
Issuance of common stock, net of offering costs(1) |
3,355,476 |
3,356 |
45,357,844 |
— |
45,361,200 |
|||||||||
|
|
27,481,118 |
$ |
27,481 |
$ |
379,549,272 |
$ |
(9,654,813) |
$ |
369,921,940 |
|||||
|
_________________ |
|
|
(1) |
See Note 4 to the Consolidated Financial Statements on Form 10-K filed with the Securities and Exchange Commission on March 4, 2025 for more information on offering costs. |
|
|
|||||||||
|
|
|||||||||
|
|
|
|
|||||||
|
|
|||||||||
|
Net increase in net assets resulting from operations |
$ |
45,844,627 |
$ |
17,533,167 |
$ |
14,491,784 |
|||
|
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: |
|||||||||
|
Purchases of investments |
(221,154,933) |
(183,858,762) |
(211,010,869) |
||||||
|
Proceeds from sales and repayments of investments |
151,834,875 |
134,223,224 |
127,548,194 |
||||||
|
Net change in unrealized (appreciation) depreciation on investments |
(19,570,409) |
(2,792,152) |
17,542,230 |
||||||
|
Net change in unrealized depreciation (appreciation) on foreign currency translations |
14,755 |
6,360 |
(5,897) |
||||||
|
Increase in investments due to PIK |
(3,310,111) |
(3,799,843) |
(1,357,177) |
||||||
|
Amortization of premium and accretion of discount, net |
(2,715,802) |
(2,749,543) |
(2,519,462) |
||||||
|
Deferred tax (benefit) provision |
(188,893) |
126,957 |
213,214 |
||||||
|
Amortization of loan structure fees |
1,140,079 |
657,323 |
567,375 |
||||||
|
Amortization of deferred financing costs |
447,943 |
446,720 |
446,719 |
||||||
|
Amortization of loan fees on SBA-guaranteed debentures |
978,582 |
1,255,753 |
1,227,952 |
||||||
|
Net realized loss (gain) on investments |
15,737,004 |
30,211,467 |
(3,660,595) |
||||||
|
Changes in other assets and liabilities |
|||||||||
|
Increase in interest receivable |
(65,427) |
(897,929) |
(1,039,810) |
||||||
|
Decrease (increase) in income tax receivable |
286,743 |
(1,588,708) |
— |
||||||
|
(Increase) decrease in other receivables |
(45,000) |
(8,750) |
20,507 |
||||||
|
Increase in related party receivables |
(3,687) |
— |
— |
||||||
|
(Increase) decrease in prepaid expenses |
(60,192) |
60,593 |
(155,053) |
||||||
|
Increase (decrease) in management fees payable |
1,115,573 |
(4,231,871) |
3,696,182 |
||||||
|
Increase in income incentive fees payable |
224,380 |
420,772 |
715,278 |
||||||
|
Decrease in capital gains incentive fees payable |
— |
(569,528) |
(2,818,623) |
||||||
|
(Decrease) increase in administrative services payable |
(8,638) |
45,232 |
(29,449) |
||||||
|
Increase in interest payable |
40,179 |
600,323 |
947,179 |
||||||
|
(Decrease) increase in related party payable |
— |
(1,060,321) |
1,060,321 |
||||||
|
Increase (decrease) in unearned revenue |
150,901 |
77,050 |
(209,051) |
||||||
|
Decrease in income tax payable |
— |
(1,175,373) |
(2,094,141) |
||||||
|
Increase (decrease) in other accrued expenses and liabilities |
658,971 |
(197,248) |
136,635 |
||||||
|
|
$ |
(28,648,480) |
$ |
(17,265,087) |
$ |
(56,286,557) |
|||
|
|
|||||||||
|
Proceeds from the issuance of common stock |
$ |
46,494,756 |
$ |
63,348,436 |
$ |
2,158,540 |
|||
|
Sales load for common stock issued |
(698,166) |
(943,248) |
(31,066) |
||||||
|
Offering costs paid for common stock issued |
(428,078) |
(253,913) |
(517,054) |
||||||
|
Stockholder distributions paid |
(37,560,442) |
(35,527,480) |
(26,594,095) |
||||||
|
Proceeds from SBA-guaranteed debentures |
— |
11,400,000 |
63,600,000 |
||||||
|
Financing costs paid on SBA-guaranteed debentures |
— |
(277,590) |
(1,548,660) |
||||||
|
Financing costs paid on Credit Facility |
(691,137) |
(2,663,106) |
(193,635) |
||||||
|
Borrowings under Credit Facility |
187,900,000 |
108,400,000 |
149,888,800 |
||||||
|
Repayments of Credit Facility |
(172,435,600) |
(148,135,600) |
(126,607,800) |
||||||
|
|
$ |
22,581,333 |
$ |
(4,652,501) |
$ |
60,155,030 |
|||
|
|
$ |
(6,067,147) |
$ |
(21,917,588) |
$ |
3,868,473 |
|||
|
|
26,125,741 |
48,043,329 |
44,174,856 |
||||||
|
|
$ |
20,058,594 |
$ |
26,125,741 |
$ |
48,043,329 |
|||
|
|
|||||||||
|
Cash paid for interest expense |
$ |
28,899,285 |
$ |
29,051,198 |
$ |
21,280,060 |
|||
|
Income and excise tax paid |
1,808,838 |
2,508,825 |
3,255,809 |
||||||
|
(Decrease) increase in distributions payable |
3,663,233 |
— |
(1,171,059) |
||||||
|
(Decrease) increase in deferred offering costs |
(7,312) |
6,212 |
(13,788) |
||||||
|
Exchange of investments |
8,256,411 |
3,610,846 |
— |
||||||
|
(Unaudited) |
||||||||
|
|
|
|||||||
|
|
|
|
|
|||||
|
Net investment income |
$9,641,326 |
$11,908,914 |
$41,929,593 |
$42,210,577 |
||||
|
Capital gains incentive reversal |
— |
— |
— |
(569,528) |
||||
|
Income tax expense |
503,890 |
251,395 |
1,808,838 |
1,333,452 |
||||
|
Core net investment income |
$10,145,216 |
$12,160,309 |
$43,738,431 |
$42,974,501 |
||||
|
|
||||||||
|
Net investment income per share |
$0.35 |
$0.49 |
$1.64 |
$1.92 |
||||
|
Core net investment income per share |
$0.37 |
$0.50 |
$1.71 |
$1.95 |
||||
|
(Unaudited) |
||||||||
|
|
|
|||||||
|
|
|
|
|
|||||
|
Net investment income |
$9,641,326 |
$11,908,914 |
$41,929,593 |
$42,210,577 |
||||
|
Net realized gain (loss) on investments |
5,952,860 |
(30,536,249) |
(15,737,004) |
(30,211,467) |
||||
|
Net realized loss on foreign currency translation |
(17,740) |
(39,699) |
(94,730) |
(112,481) |
||||
|
Benefit for taxes on realized loss on investments |
— |
2,987,847 |
2,221 |
2,987,847 |
||||
|
Total Realized Net Investment Income (Loss) |
$15,576,446 |
($15,679,187) |
$26,100,080 |
$14,874,476 |
||||
|
|
||||||||
|
Net investment income per share |
$0.35 |
$0.49 |
$1.64 |
$1.92 |
||||
|
Realized net investment income (loss) per share |
$0.56 |
($0.65) |
$1.02 |
$0.68 |
||||
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SOURCE Stellus Capital Investment Corporation
