Portman Ridge Finance Corporation (Nasdaq: PTMN) (the “Company” or
“Portman Ridge”) announced today its financial results for the
fourth quarter and full year ended December 31, 2020.
Recent Developments
- As previously announced, the
Company successfully closed on the merger of Garrison Capital Inc.
(“GARS” or “Garrison”) on October 28, 2020.
- On December 23, 2020, the Company
entered into an Agreement and Plan of Merger (the “HCAP Merger
Agreement”) with Harvest Capital Credit Corporation, a publicly
traded business development company (“HCAP”).
- On February 12, 2021, the Board of
Directors of the Company approved a cash distribution of $0.06 per
share of common stock to shareholders of record as of February 22,
2021. The distribution was paid on March 2, 2021.
- On February 22, 2021, the Company
repaid $88.0 million of 2018-2 Secured Notes due 2029.
- On March 8, 2021, the Company
received a corporate investment grade rating of BBB- with a stable
outlook from Egan-Jones.
- On March 11, 2021, the Board
approved a $10 million stock repurchase program with substantially
the same terms as the prior program, which expired on March 5,
2021.
Fourth Quarter and Full Year 2020
Highlights
- Net investment income for the
fourth quarter of 2020 was $8.9 million, or $0.14 per weighted
average share. Excluding the impact of purchase accounting in
connection with the Garrison merger, net investment income for the
fourth quarter of 2020 was $5.2 million, or $0.08 per share(1),
compared to $2.7 million, or $0.06 per share in the third quarter
of 2020 and $2.1 million, or $0.06 per share in the fourth quarter
of 2019.
- Net investment income for the year
ended December 31, 2020 was $17.0 million, or $0.34 per share,
compared with net investment income of $3.1 million, or $0.08 per
share in the year ended December 31, 2019. As noted above,
excluding purchase accounting associated with the Garrison merger,
net investment income for the full year was $13.3 million(1), or
$0.27 per share(1).
- At December 31, 2020, the fair
value of the Company's investments totaled $487 million, of which
the Company’s debt securities portfolio totaled $405 million and
was comprised of investments in 109 portfolio companies. At
September 30, 2020, the fair value of the Company’s investments
totaled $279 million, of which the Company’s debt securities
portfolio totaled $205 million and was comprised of investments in
65 portfolio companies.
- Net asset value per share at
December 31, 2020 was $2.88, compared to net asset value per
share of $2.85 at September 30, 2020. Excluding approximately $1.6
million in transaction expenses associated with the Garrison
merger, this represents a 2.5% increase relative to the prior
quarter.(2)
- Quarterly distribution paid during
the fourth quarter was $0.06 per share, consistent with the first
three quarters of the year. Accordingly, distributions for the full
year 2020 totaled $0.24 per share.
- As of December 31, 2020, there were
eight investments on non-accrual status. Investments on non-accrual
status were 0.8% and 2.4% of the Company’s investment portfolio at
fair value and amortized cost, respectively, compared to 1.3% and
3.2% as of September 30, 2020, and there was no change in the
number of non-accrual debt securities during the quarter.
- During the fourth quarter
(excluding the impacts of the Garrison merger), the Company
acquired $21.2 million par value of debt securities. Also, during
the quarter, the Company received $135.1 million in sale and
repayment proceeds, which includes a $1.1 million increase relative
to the carrying value of those assets sold. Of this activity, $92.4
million was the result of proactive sales of legacy Garrison assets
(inclusive of a $0.6 million increase relative to carrying
value).
Management Commentary
Ted Goldthorpe, Chief Executive Officer of
Portman Ridge, stated, “We are very pleased with the progress we
made at Portman Ridge this year in terms of managing the business
while growing in size and scale. On October 28, we completed the
merger with Garrison Capital and quickly began strategic
repositioning of the acquired assets through opportunistic sales
and debt repayment to reduce leverage of the portfolio. Shortly
before year-end, we announced our plans to acquire Harvest Capital
Credit Corporation, and we are working toward an expected closing
of this transaction in the second quarter of 2021. Overall, our
investment portfolio benefited from the economy’s strong rebound
and recovery that began mid-2020 and accelerated through the year.
We are also pleased to have delivered consistent quarterly
dividends each quarter this year. We look forward to making
continued progress in 2021 as we continue to focus on all aspects
of our business to deliver both sustainable earnings and earnings
growth for Portman Ridge shareholders.”
Fourth Quarter 2020 – Selected Financial
Highlights
|
|
Three Months Ended |
|
|
Three Months Ended |
|
(in $ millions, except
per share data) |
|
December 31,2020 |
|
|
September 30,2020 |
|
Investment Income: |
|
|
|
|
|
|
|
|
Interest from investments in debt securities |
|
$ |
16.4 |
|
|
$ |
4.9 |
|
Investment income on CLO Fund Securities |
|
|
0.9 |
|
|
|
0.6 |
|
Investment income - Joint Ventures |
|
|
2.2 |
|
|
|
2.2 |
|
Capital structuring service fees |
|
|
0.6 |
|
|
|
- |
|
Total investment income |
|
|
19.9 |
|
|
|
7.8 |
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
|
$ |
8.9 |
|
|
$ |
2.7 |
|
Impact from GARS purchase accounting |
|
|
3.7 |
|
|
|
- |
|
Net investment income less GARS purchase accounting
impact (1) |
|
$ |
5.2 |
|
|
$ |
2.7 |
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gains |
|
$ |
40.0 |
|
|
$ |
5.6 |
|
Net increase in net assets resulting from operations |
|
$ |
49.0 |
|
|
$ |
8.3 |
|
Net increase in net assets resulting from operations per share
(basic and diluted) |
|
$ |
0.74 |
|
|
$ |
0.19 |
|
|
|
|
|
|
|
|
|
|
Net investment income per share (basic and diluted) |
|
$ |
0.14 |
|
|
$ |
0.06 |
|
Impact from GARS purchase accounting |
|
$ |
0.06 |
|
|
$ |
- |
|
Net investment income less GARS purchase accounting
impact (1) |
|
$ |
0.08 |
|
|
$ |
0.06 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (in millions) |
|
|
66.0 |
|
|
|
44.4 |
|
Distribution per share |
|
$ |
0.06 |
|
|
$ |
0.06 |
|
Total investment income for the three months
ended December 31, 2020 and September 30, 2020, was $19.9
million and $7.8 million, respectively. The increase in investment
income was primarily driven by the impact of the Garrison merger
and the debt investments acquired by the Company as a result.
Investment income from debt securities in the quarter was $16.4
million, compared with $4.9 million in the third quarter. The
quarter-to-quarter increase in investment income from debt
securities included $2.5 million of income from purchase discount
accretion, and $1.9 million in income from paydowns on assets
acquired in the Garrison merger that occurred during the fourth
quarter. Investment income on CLO fund securities in the quarter
was $0.8 million compared with $0.6 million in the third quarter of
2020. Investment income from Joint Ventures in the fourth quarter
of 2020 was $2.2 million, which was relatively unchanged from the
third quarter.
Total expenses for the three months ended
December 31, 2020 and September 30, 2020, were $11.0 million
and $5.1 million, respectively. The components of the
quarter-to-quarter increase were higher Management fees and
Performance-based income incentive fees, which in aggregate
increased by $3.6 million due primarily to higher than typical
prepayment activity during the quarter. Additionally, interest
expense and amortization of debt issuance costs for the fourth
quarter of 2020 were $3.3 million, compared to $2.2 million in the
third quarter of 2020, driven primarily by the impact of the
Garrison merger. Professional fees were also higher
quarter-to-quarter at $1.0 million in fourth quarter of 2020
compared to $0.4 million in the third quarter of 2020, partially as
a result of activities related to the Garrison
merger. Net
investment income for the three months ended December 31, 2020 and
September 30, 2020 was $8.9 million, or $0.14 per basic share, and
$2.7 million or $0.06 per basic share, respectively. Excluding the
impact of purchase accounting in connection with the Garrison
merger, net investment income for the fourth quarter of 2020 was
$5.2 million, or $0.08 per basic share.(1)
Net realized and unrealized appreciation on
investments for the three months ended December 31, 2020 was
$40.1 million, as compared to net realized and unrealized
appreciation of $5.6 million in the prior quarter. The substantial
difference in net realized and unrealized appreciation was due to
the impact of a $40.4 million purchase discount recorded in
connection with the Garrison merger. This day-one purchase
accounting-related discount was a one-time gain and a noncash
event.
Portfolio and Investment
Activity
The fair value of our portfolio was $487 million
as of December 31, 2020. The composition of our investment
portfolio at December 31, 2020 and 2019 at cost and fair value
was as follows:
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
Security
Type |
|
Cost/AmortizedCost |
|
|
Fair Value |
|
|
%¹ |
|
|
Cost/AmortizedCost |
|
|
Fair Value |
|
|
%¹ |
|
Short-term investments |
|
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
4,207,107 |
|
|
$ |
4,207,107 |
|
|
|
2 |
|
Senior Secured Loan |
|
|
304,539,184 |
|
|
|
328,845,612 |
|
|
|
68 |
|
|
|
91,245,574 |
|
|
|
88,788,639 |
|
|
|
32 |
|
Junior Secured Loan |
|
|
87,977,057 |
|
|
|
75,807,477 |
|
|
|
16 |
|
|
|
100,655,341 |
|
|
|
95,188,373 |
|
|
|
34 |
|
Senior Unsecured Bond |
|
|
416,170 |
|
|
|
207,766 |
|
|
|
0 |
|
|
|
620,145 |
|
|
|
403,615 |
|
|
|
— |
|
Subordinated Note |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,165,304 |
|
|
|
2,422,281 |
|
|
|
1 |
|
CLO Fund Securities |
|
|
45,727,813 |
|
|
|
19,582,555 |
|
|
|
4 |
|
|
|
46,618,717 |
|
|
|
31,968,202 |
|
|
|
12 |
|
Equity Securities |
|
|
24,593,639 |
|
|
|
13,944,876 |
|
|
|
3 |
|
|
|
22,160,993 |
|
|
|
9,864,419 |
|
|
|
4 |
|
Asset Manager Affiliates2 |
|
|
17,791,230 |
|
|
|
— |
|
|
|
— |
|
|
|
17,791,230 |
|
|
|
— |
|
|
|
— |
|
Joint Ventures |
|
|
54,932,458 |
|
|
|
49,349,163 |
|
|
|
10 |
|
|
|
48,594,539 |
|
|
|
45,087,967 |
|
|
|
16 |
|
Derivatives |
|
|
30,609 |
|
|
|
(1,108,618 |
) |
|
|
— |
|
|
|
30,609 |
|
|
|
(33,437 |
) |
|
|
— |
|
Total |
|
$ |
536,008,160 |
|
|
$ |
486,628,831 |
|
|
|
100 |
% |
|
$ |
334,089,559 |
|
|
$ |
277,897,166 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
¹ Represents percentage of total portfolio at
fair value.² Represents the equity investment in
the Asset Manager Affiliates.
Liquidity and Capital
Resources
As of December 31, 2020, we had $378
million (par value) of borrowings outstanding ($373 million net of
capitalized costs) with a combined weighted average interest rate
of 3.0%. This balance was comprised of $49.3 million of outstanding
borrowings under the Senior Secured Revolving Credit Facility,
$76.7 million of 6.125% unsecured Notes due 2022, and $252 million
of 2018-2 Secured Notes due 2029. On February 22, 2021, the Company
repaid $88.0 million of the 2018-2 Secured Notes due 2029.
At December 31, 2020, the Company had
unrestricted cash of $7.0 million, restricted cash of $75.9
million, $65.7 million of available borrowing capacity under the
Senior Secured Revolving Credit Facility, and $25 million of
borrowing capacity under the 2018-2 Revolving Credit Facility.
Total assets and stockholders’ equity at year-end 2020 were $600
million and $216 million, respectively. Aggregate unfunded
commitments stood at $32.9 million at December 31, 2020.
The Company’s asset coverage ratio stood 156% as
of December 31, 2020, above the 150% asset coverage statutory
limit.
Stock Repurchase Program
On March 5, 2020, the Board approved a $10
million stock repurchase program. During the year ended December
31, 2020, the Company repurchased 734,403 shares, under the Stock
Repurchase Program in open market transactions at an aggregate cost
of $863 thousand. On March 5, 2021, the Stock Repurchase Program
expired pursuant to its terms. On March 11, 2021, the Board
approved a $10 million stock repurchase program with substantially
the same terms as the prior program.
Conference Call and Webcast
We will hold a conference call on Friday March
12, 2021 at 9:00 am Eastern Time to discuss our fourth quarter and
full year 2020 financial results. Stockholders, prospective
stockholders and analysts are welcome to listen to the call or
attend the webcast.
To access the call please dial (866) 757-5630
approximately 10 minutes prior to the start of the conference call.
A replay of the conference call will be available from March 12,
2021 until March 19, 2021. The dial in number for the replay is
(855) 859-2056 and the conference ID is 1237528.
A live audio webcast of the conference call can
be accessed via the Internet, on a listen-only basis on our
Company’s website www.portmanridge.com in the Investor Relations
section under Events and Presentations. The webcast can also be
accessed by clicking the following link: Portman Ridge Fourth
Quarter and Full Year 2020 Conference Call. The online archive of
the webcast will be available on the Company’s website shortly
after the call.
About Portman Ridge Finance
Corporation
Portman Ridge Finance Corporation (Nasdaq: PTMN)
is a publicly traded, externally managed investment company that
has elected to be regulated as a business development company under
the Investment Company Act of 1940. Portman Ridge’s middle market
investment business originates, structures, finances and manages a
portfolio of term loans, mezzanine investments and selected equity
securities in middle market companies. Portman Ridge’s investment
activities are managed by its investment adviser, Sierra Crest
Investment Management LLC, an affiliate of BC Partners Advisors,
LP.
Portman Ridge’s filings with the Securities and
Exchange Commission (the “SEC”), earnings releases, press releases
and other financial, operational and governance information are
available on the Company's website at www.portmanridge.com.
About BC Partners Advisors L.P. and BC Partners
Credit
BC Partners is a leading international
investment firm with over $40 billion of assets under management in
private equity, private credit and real estate strategies.
Established in 1986, BC Partners has played an active role in
developing the European buyout market for three decades. Today, BC
Partners executives operate across markets as an integrated team
through the firm's offices in North America and Europe. Since
inception, BC Partners has completed 117 private equity investments
in companies with a total enterprise value of €149 billion and is
currently investing its eleventh private equity fund. For more
information, please visit www.bcpartners.com.
BC Partners Credit was launched in February 2017
and has pursued a strategy focused on identifying attractive credit
opportunities in any market environment and across sectors,
leveraging the deal sourcing and infrastructure made available from
BC Partners.
Cautionary Statement Regarding
Forward-Looking Statements
This press release contains forward-looking
statements. The matters discussed in this press release, as well as
in future oral and written statements by management of Portman
Ridge Finance Corporation, that are forward-looking statements are
based on current management expectations that involve substantial
risks and uncertainties which could cause actual results to differ
materially from the results expressed in, or implied by, these
forward-looking statements.
Forward-looking statements relate to future
events or our future financial performance and include, but are not
limited to, projected financial performance, expected development
of the business, plans and expectations about future investments
and the future liquidity of the Company. We generally identify
forward-looking statements by terminology such as “may,” “will,”
“should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“target,” “projects,” “outlook”, “contemplates,” “believes,”
“estimates,” “predicts,” “potential” or “continue” or the negative
of these terms or other similar words. Forward-looking statements
are based upon current plans, estimates and expectations that are
subject to risks, uncertainties and assumptions. Should one or more
of these risks or uncertainties materialize, or should underlying
assumptions prove to be incorrect, actual results may vary
materially from those indicated or anticipated by such
forward-looking statements.
Important assumptions include our ability to
originate new investments, and achieve certain margins and levels
of profitability, the availability of additional capital, and the
ability to maintain certain debt to asset ratios. In light of these
and other uncertainties, the inclusion of a projection or
forward-looking statement in this press release should not be
regarded as a representation that such plans, estimates,
expectations or objectives will be achieved. Important factors that
could cause actual results to differ materially from such plans,
estimates or expectations include, among others,
(1) uncertainty of the expected financial performance of the
Company; (2) expected synergies and savings associated with the
transaction in which Garrison Capital Inc. merged with and into the
Company; (3) the ability of the Company and/or BC Partners to
implement its business strategy; (4) evolving legal,
regulatory and tax regimes; (5) changes in general economic
and/or industry specific conditions; (6) the impact of
increased competition; (7) business prospects and the
prospects of the Company’s portfolio companies;
(8) contractual arrangements with third parties; (9) any
future financings by the Company; (10) the ability of Sierra
Crest Investment Management LLC to attract and retain highly
talented professionals; (11) the Company ability to fund any
unfunded commitments; (12) any future distributions by the
Company; (13) changes in regional or national economic conditions,
including but not limited to the impact of the COVID-19 pandemic,
and their impact on the industries in which we invest; (14) other
changes in the conditions of the industries in which we invest and
other factors enumerated in our filings with the SEC; (15) the
successful completion of the Company’s acquisition of HCAP and
receipt of stockholder approval from HCAP’s stockholders; and (16)
expectations concerning the proposed HCAP transaction, including
the financial results of the combined company. The forward-looking
statements should be read in conjunction with the risks and
uncertainties discussed in the Company’s filings with the SEC,
including the Company’s most recent Form 10-K and other SEC
filings. We do not undertake to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required to be reported under
the rules and regulations of the SEC.
(1) Net investment income excluding the impact
of purchase accounting in connection with the GARS merger is net
investment income as determined in accordance with U.S. Generally
Accepted Accounting Principles (“U.S. GAAP”), excluding the impact
of purchase accounting in connection with the GARS merger. We
believe presenting net investment income excluding the impact of
the GARS merger-related purchase accounting and the related per
share amount is useful and appropriate supplemental disclosure for
analyzing our financial performance due to the unique circumstance
giving rise to the purchase accounting adjustment. However, this
measure is a non-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. Instead, this measure
should be reviewed only in connection with such U.S. GAAP measures
in analyzing Portman Ridge’s financial performance. A
reconciliation of net investment income in accordance with U.S.
GAAP to net investment income excluding the impact of purchase
accounting is detailed in the financial tables included with this
press release.
(2) Net asset value excluding the transaction
expense associated with the Garrison merger is net asset as
determined in accordance with U.S. GAAP, excluding the impact of
the transaction expense associated with the Garrison merger. We
believe presenting information relating to this adjusted net asset
value figure on a per share basis is useful and appropriate
supplemental disclosure for analyzing our financial performance due
to the non-ordinary nature of the expense. However, this measure is
a non-U.S. GAAP measure and should not be considered as a
replacement for net asset value presented in accordance with U.S.
GAAP. Instead, this measure should be reviewed only in connection
with such U.S. GAAP measures in analyzing Portman Ridge’s financial
performance. In order to reconcile these two financial measures,
you should add the $1.6 million, or $0.04 per share, of transaction
expense relating to the Garrison merger to net asset value
determined in accordance with U.S. GAAP.
Contacts:Portman Ridge Finance
Corporation650 Madison Avenue, 23rd floorNew York, NY
10022info@portmanridge.com
Jason Roos Jason.Roos@bcpartners.com(212)
891-2880
Jeehae LinfordThe Equity Group
Inc.jlinford@equityny.com(212) 836-9615
PORTMAN RIDGE FINANCE
CORPORATIONCONSOLIDATED BALANCE
SHEETS
|
|
December 31,2020 |
|
|
December 31,2019 |
|
ASSETS |
|
|
|
|
|
|
|
|
Investments at fair value: |
|
|
|
|
|
|
|
|
Debt securities (amortized cost:
2020 - $392,932,411; 2019 - $194,686,364) |
|
$ |
404,860,855 |
|
|
$ |
186,802,908 |
|
CLO Fund Securities managed by
affiliates (amortized cost: 2020 - $0; 2019 - $45,099,076) |
|
|
— |
|
|
|
29,984,047 |
|
CLO Fund Securities managed by
non-affiliates (amortized cost: 2020 - $45,727,813; 2019 -
$1,519,641) |
|
|
19,582,555 |
|
|
|
1,984,155 |
|
Equity securities (cost: 2020 -
$24,593,639; 2019 - $22,160,993) |
|
|
13,944,876 |
|
|
|
9,864,419 |
|
Asset Manager Affiliates (cost:
2020 - $17,791,230; 2019 - $17,791,230) |
|
|
— |
|
|
|
— |
|
Joint Ventures (cost: 2020 -
$54,932,458; 2019 - $48,594,539) |
|
|
49,349,163 |
|
|
|
45,087,967 |
|
Short-term investments (cost:
2020 - $00; 2019 - $4,207,107) |
|
|
— |
|
|
|
4,207,107 |
|
Total Investments at Fair Value,
excluding derivatives (cost: 2020 - $535,977,551; 2019 -
$334,058,950) |
|
|
487,737,449 |
|
|
|
277,930,603 |
|
Cash and cash equivalents |
|
|
6,990,008 |
|
|
|
136,864 |
|
Restricted cash |
|
|
75,913,411 |
|
|
|
4,967,491 |
|
Interest receivable |
|
|
2,972,546 |
|
|
|
1,367,447 |
|
Receivable for unsettled
trades |
|
|
25,107,598 |
|
|
|
24,420,045 |
|
Due from affiliates |
|
|
357,168 |
|
|
|
473,100 |
|
Other assets |
|
|
1,100,241 |
|
|
|
1,112,150 |
|
Total Assets |
|
$ |
600,178,421 |
|
|
$ |
310,407,700 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
6.125% Notes Due 2022 (net of
offering costs of: 2020-$1,058,351; 2019 - $1,651,946) |
|
$ |
75,667,624 |
|
|
$ |
75,755,253 |
|
2018-2 Secured Notes (net of
discount of: 2020-$2,444,512; 2019 - $0) |
|
|
249,418,186 |
|
|
|
— |
|
Great Lakes Portman Ridge Funding
LLC Revolving Credit Facility (net of offering costs of:
2020-$1,097,815; 2019 - $1,462,364) |
|
|
48,223,083 |
|
|
|
78,108,535 |
|
Derivative liabilities, net
(cost: 2020 - $30,609; 2019 - $30,609) |
|
|
1,108,618 |
|
|
|
33,437 |
|
Accounts payable and accrued
expenses |
|
|
1,788,908 |
|
|
|
1,386,981 |
|
Accrued interest payable |
|
|
1,089,531 |
|
|
|
136,486 |
|
Due to affiliates |
|
|
1,374,739 |
|
|
|
1,711,793 |
|
Management and incentive fees
payable |
|
|
5,243,869 |
|
|
|
1,076,645 |
|
Total Liabilities |
|
|
383,914,558 |
|
|
|
158,209,130 |
|
COMMITMENTS AND
CONTINGENCIES (NOTE 9) |
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
Common stock, par value $0.01 per
share, 100,000,000 common shares authorized; 76,093,492 issued, and
75,164,230 outstanding at December 31, 2020, and 45,024,535 issued,
and 44,829,676 outstanding at December 31, 2019 |
|
|
751,642 |
|
|
|
448,297 |
|
Capital in excess of par
value |
|
|
638,459,548 |
|
|
|
451,353,379 |
|
Total distributable (loss)
earnings |
|
|
(422,947,327 |
) |
|
|
(299,603,106 |
) |
Total Stockholders' Equity |
|
|
216,263,863 |
|
|
|
152,198,570 |
|
Total Liabilities and
Stockholders' Equity |
|
$ |
600,178,421 |
|
|
$ |
310,407,700 |
|
NET ASSET VALUE PER COMMON
SHARE |
|
$ |
2.88 |
|
|
$ |
3.40 |
|
|
|
|
|
|
|
|
|
|
PORTMAN RIDGE FINANCE
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
For the YearEnded
December 31, |
|
|
|
2020 |
|
|
2019 |
|
|
2018 |
|
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest from investments in debt
securities |
|
$ |
28,210,725 |
|
|
$ |
14,377,460 |
|
|
$ |
14,939,309 |
|
Payment-in-kind investment
income |
|
|
3,217,614 |
|
|
|
606,234 |
|
|
|
1,066,354 |
|
Interest from short-term
investments |
|
|
15,279 |
|
|
|
79,065 |
|
|
|
76,055 |
|
Investment income on CLO Fund
Securities managed by affiliates |
|
|
3,221,838 |
|
|
|
4,427,387 |
|
|
|
6,024,935 |
|
Investment income on CLO Fund
Securities managed by non-affiliates |
|
|
319,458 |
|
|
|
2,008,148 |
|
|
|
388,237 |
|
Dividends from Asset Manager
Affiliates |
|
|
— |
|
|
|
— |
|
|
|
1,246,510 |
|
Investment income - Joint
Ventures |
|
|
6,911,418 |
|
|
|
4,859,780 |
|
|
|
3,100,000 |
|
Capital structuring service
fees |
|
|
867,853 |
|
|
|
137,061 |
|
|
|
245,393 |
|
Total investment income |
|
|
42,764,185 |
|
|
|
26,495,135 |
|
|
|
27,086,793 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Management fees |
|
|
4,579,082 |
|
|
|
3,129,079 |
|
|
|
— |
|
Performance-based incentive
fees |
|
|
4,857,563 |
|
|
|
— |
|
|
|
— |
|
Interest and amortization of debt
issuance costs |
|
|
10,283,996 |
|
|
|
8,261,445 |
|
|
|
7,403,436 |
|
Compensation |
|
|
— |
|
|
|
3,688,578 |
|
|
|
4,012,743 |
|
Professional fees |
|
|
2,835,947 |
|
|
|
3,466,877 |
|
|
|
3,470,269 |
|
Insurance |
|
|
670,688 |
|
|
|
704,592 |
|
|
|
321,268 |
|
Administrative services
expense |
|
|
1,941,398 |
|
|
|
1,243,587 |
|
|
|
— |
|
Other general and administrative
expenses |
|
|
1,152,045 |
|
|
|
1,496,258 |
|
|
|
1,874,600 |
|
Lease termination costs |
|
|
— |
|
|
|
1,431,030 |
|
|
|
— |
|
Total expenses |
|
|
26,320,719 |
|
|
|
23,421,446 |
|
|
|
17,082,316 |
|
Management and performance-based
incentive fees waived |
|
|
(556,880 |
) |
|
|
— |
|
|
|
— |
|
Net Expenses |
|
|
25,763,839 |
|
|
|
23,421,446 |
|
|
|
17,082,316 |
|
Net Investment
Income |
|
|
17,000,346 |
|
|
|
3,073,689 |
|
|
|
10,004,477 |
|
Realized And Unrealized
Gains (Losses) On Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses) from
investment transactions |
|
|
7,604,698 |
|
|
|
(15,619,046 |
) |
|
|
(16,474,939 |
) |
Net change in unrealized
appreciation (depreciation) on: |
|
|
|
|
|
|
|
|
|
|
|
|
Debt securities |
|
|
19,811,899 |
|
|
|
6,519,282 |
|
|
|
(7,420,747 |
) |
Equity securities |
|
|
1,647,812 |
|
|
|
(4,856,831 |
) |
|
|
(1,283,420 |
) |
CLO Fund Securities managed by
affiliates |
|
|
(11,079,828 |
) |
|
|
(6,875,007 |
) |
|
|
17,790,480 |
|
CLO Fund Securities managed by
non-affiliates |
|
|
(414,915 |
) |
|
|
3,380,119 |
|
|
|
(8,285,747 |
) |
Asset Manager Affiliates
investments |
|
|
— |
|
|
|
— |
|
|
|
(579,000 |
) |
Joint Venture Investments |
|
|
(2,076,723 |
) |
|
|
3,017,847 |
|
|
|
(3,125,560 |
) |
Derivatives |
|
|
(1,075,182 |
) |
|
|
(64,046 |
) |
|
|
— |
|
Total net change in unrealized
appreciation (depreciation) |
|
|
6,813,063 |
|
|
|
1,121,364 |
|
|
|
(2,903,994 |
) |
Net realized and unrealized
appreciation (depreciation) on investments |
|
|
14,417,761 |
|
|
|
(14,497,682 |
) |
|
|
(19,378,933 |
) |
Realized gains on extinguishments
of Debt |
|
|
154,571 |
|
|
|
(1,075,968 |
) |
|
|
(197,090 |
) |
Net Increase (Decrease)
In Stockholders’ Equity Resulting From Operations |
|
$ |
31,572,678 |
|
|
$ |
(12,499,961 |
) |
|
$ |
(9,571,546 |
) |
Net Increase (Decrease) In
Stockholders' Equity Resulting from Operations per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
$ |
0.63 |
|
|
$ |
(0.33 |
) |
|
$ |
(0.26 |
) |
Diluted: |
|
$ |
0.63 |
|
|
$ |
(0.33 |
) |
|
$ |
(0.26 |
) |
Net Investment Income Per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
$ |
0.34 |
|
|
$ |
0.08 |
|
|
$ |
0.27 |
|
Diluted: |
|
$ |
0.34 |
|
|
$ |
0.08 |
|
|
$ |
0.27 |
|
Weighted Average Shares of Common
Stock Outstanding—Basic |
|
|
49,987,586 |
|
|
|
37,641,650 |
|
|
|
37,356,241 |
|
Weighted Average Shares of Common
Stock Outstanding—Diluted |
|
|
49,987,586 |
|
|
|
37,641,650 |
|
|
|
37,356,241 |
|
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