HOUSTON, May 4, 2017 /PRNewswire/ -- Main Street Capital
Corporation (NYSE: MAIN) ("Main Street") announced today its
financial results for the first quarter of 2017.
First Quarter 2017 Highlights
- Net investment income of $31.2
million (or $0.57 per share),
representing a 15% increase from the first quarter of 2016
- Distributable net investment income (1) of
$33.4 million (or $0.61 per share), representing a 16% increase
from the first quarter of 2016
- Total investment income of $47.9
million, representing a 14% increase from the first quarter
of 2016
- Industry leading ratio of total non-interest operating expenses
as a percentage of quarterly average total assets ("Operating
Expense to Assets Ratio") on an annualized basis of 1.6%
- Net increase in net assets resulting from operations of
$31.5 million (or $0.57 per share)
- Declared regular monthly dividends totaling $0.555 per share for the second quarter of 2017,
or $0.185 per share for each of
April, May and June 2017,
representing a 2.8% increase from the regular monthly dividends
paid for the second quarter of 2016
- Net asset value of $22.44 per share at March 31, 2017, representing an increase of
$0.34 per share, or 1.5%,
compared to $22.10 per share at
December 31, 2016
- Completed $58.2 million in total
lower middle market ("LMM") portfolio investments, including
investments totaling $50.4 million in
two new LMM portfolio companies, which after aggregate repayments
of debt principal and return of invested equity capital from
several LMM portfolio investments resulted in a net increase of
$10.1 million in total LMM portfolio
investments
- Net decrease of $59.8
million in middle market portfolio investments
- Net increase of $45.8 million in
private loan portfolio investments
- Fully exited portfolio company debt and equity investments in
Daseke, Inc., realizing a gain of $22.9
million, a total internal rate of return of 28.3% and 2.2
times money invested
In commenting on Main Street's results, Vincent D. Foster, Main Street's Chairman and
Chief Executive Officer, stated, "We are pleased with our operating
results for the first quarter of 2017, a quarter during which we
increased our total investment income and our distributable net
investment income per share over the same period in the prior year.
We also continued to demonstrate the unique benefits of our
differentiated lower middle market investment strategy with the
realized gain from the sale of Daseke. As a result of our positive
performance, we again generated distributable net investment income
per share in excess of our regular monthly dividends, exceeding the
regular monthly dividends paid during the quarter by approximately
10%. In addition, despite the exit of our investments in Daseke, we
were still able to grow our lower middle market portfolio, which
remains the key to our continued long-term success."
First Quarter 2017 Operating Results
The following table provides a summary of our operating results
for the first quarter of 2017:
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
|
Change ($)
|
|
Change (%)
|
|
(dollars in
thousands, except per share amounts)
|
Interest
income
|
$ 38,463
|
|
$ 32,182
|
|
$
6,281
|
|
20%
|
Dividend
income
|
6,982
|
|
7,629
|
|
(647)
|
|
(8%)
|
Fee income
|
2,444
|
|
2,064
|
|
380
|
|
18%
|
Income from
marketable securities and idle funds
|
-
|
|
131
|
|
(131)
|
|
(100%)
|
Total investment
income
|
$ 47,889
|
|
$ 42,006
|
|
$
5,883
|
|
14%
|
|
|
|
|
|
|
|
|
Net investment
income
|
$ 31,166
|
|
$ 27,164
|
|
$
4,002
|
|
15%
|
Net investment income
per share
|
$
0.57
|
|
$
0.54
|
|
$
0.03
|
|
6%
|
|
|
|
|
|
|
|
|
Distributable net
investment income (1)
|
$ 33,435
|
|
$ 28,753
|
|
$
4,682
|
|
16%
|
Distributable net
investment income per share (1)
|
$
0.61
|
|
$
0.57
|
|
$
0.04
|
|
7%
|
|
|
|
|
|
|
|
|
Net increase in net
assets resulting from operations
|
$ 31,450
|
|
$ 16,812
|
|
$
14,638
|
|
87%
|
Net increase in net
assets resulting from operations per share
|
$
0.57
|
|
$
0.33
|
|
$
0.24
|
|
73%
|
The $5.9 million increase in total
investment income in the first quarter of 2017 from the comparable
period of the prior year was principally attributable to (i) a
$6.3 million increase in
interest income primarily related to higher average levels of
investment portfolio debt investments and increased activities
involving existing investment portfolio debt investments and
(ii) a $0.4 million
increase in fee income, partially offset by a $0.6 million decrease in dividend income from
investment portfolio equity investments. The $5.9 million increase in total investment
income in the first quarter of 2017 includes an increase of
$2.7 million primarily related
to higher accelerated prepayment and repricing activity for certain
investment portfolio debt investments when compared to the same
period in 2016.
Cash operating expenses (total operating expenses excluding
non-cash, share-based compensation expense) increased to
$14.5 million in the first quarter of
2017 from $13.3 million for the
corresponding period of 2016. This comparable period increase in
cash operating expenses was principally attributable to (i) a
$0.6 million increase in
compensation expense related to increases in the number of
personnel, base compensation levels and incentive compensation
accruals, (ii) a $0.5 million
increase in general and administrative expenses, primarily related
to non-recurring professional fees and other expenses incurred on
certain potential new portfolio investment opportunities which were
terminated during the due diligence and legal documentation
processes, and (iii) a $0.4 million increase in interest expense,
primarily due to the higher average interest rate and balance
outstanding on our long-term revolving credit facility ("Credit
Facility") in the first quarter of 2017, with these increases
partially offset by a $0.4 million increase in the expenses
allocated to our external investment manager, a wholly owned
portfolio company and registered investment advisor that provides
investment management services to third parties (the "External
Investment Manager"), in each case when compared to the same period
in the prior year. Our Operating Expense to Assets Ratio was 1.6%
on an annualized basis for the first quarter of 2017, compared to
1.4% on an annualized basis for the first quarter of 2016 and 1.5%
for the year ended December 31, 2016.
The $4.7 million increase in
distributable net investment income, which is net investment income
before non-cash, share-based compensation expense, was primarily
due to the higher level of total investment income, partially
offset by higher operating expenses as discussed
above.(1) Distributable net investment income on a per
share basis for the first quarter of 2017 reflects (i) an
increase of approximately $0.05 per
share from the comparable period in 2016 attributable to the net
increase in the comparable levels of accelerated prepayment and
repricing activity for certain investment portfolio debt
investments and (ii) a greater number of average shares
outstanding compared to the corresponding period in 2016 primarily
due to shares issued through offerings under our at-the-market, or
ATM, program.
The $14.6 million change in
the net increase in net assets resulting from operations was
primarily the result of (i) a $14.0 million increase in the net realized
gain (loss) from investments, (ii) a $9.8
million improvement in net change in unrealized appreciation
(depreciation) from portfolio investments and Small Business
Investment Company ("SBIC") debentures, including accounting
reversals relating to realized gains (losses), from net unrealized
depreciation of $26.2 million for the
first quarter of 2016 to net unrealized depreciation of
$16.4 million for the first
quarter of 2017, and (iii) a $4.0 million increase in net investment
income as discussed above, partially offset by (i) a $5.2 million realized loss on the repayment of
SBIC debentures outstanding at our wholly owned subsidiary Main
Street Capital II, LP ("MSC II") which had previously been
accounted for on the fair value method of accounting and (ii) a
$7.9 million increase in the
income tax provision from an income tax benefit of $2.3 million for the first quarter of 2016 to an
income tax provision of $5.6 million
for the first quarter of 2017. The net realized gain from
investments of $27.6 million for
the first quarter of 2017 was primarily the result of (i) the net
realized gain of $22.3 million on the
exit of two LMM investments, (ii) the realized gain of $2.6 million on the exit of one private loan
investment and (iii) the net realized gain of $2.5 million due to activity in our other
portfolio. The realized loss of $5.2
million on the repayment of SBIC debentures is related to
the previously recognized bargain purchase gain resulting from
recording the MSC II debentures at fair value on the date of the
acquisition of MSC II in 2010. The effect of the realized loss is
offset by the reversal of all previously recognized unrealized
depreciation on these SBIC debentures due to fair value adjustments
since the date of the acquisition.
The following table provides a summary of the total net
unrealized depreciation of $16.4 million for the first quarter of
2017:
|
Three Months Ended
March 31, 2017
|
|
LMM (a)
|
|
Middle
Market
|
|
Private
Loan
|
|
Other (b)
|
|
Total
|
|
(dollars in
millions)
|
Accounting reversals
of net unrealized appreciation recognized in prior periods
due
|
|
|
|
|
|
|
|
|
|
to net realized gains
recognized during period
|
$
(20.0)
|
|
$
(1.8)
|
|
$
(1.4)
|
|
$
(1.1)
|
|
$ (24.3)
|
Net unrealized
appreciation (depreciation) relating to portfolio
investments
|
2.2
|
|
(2.0)
|
|
(3.3)
|
|
5.3
|
|
2.2
|
Total net change in
unrealized appreciation (depreciation) relating to portfolio
investments
|
$
(17.8)
|
|
$
(3.8)
|
|
$
(4.7)
|
|
$
4.2
|
|
$ (22.1)
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
appreciation relating to SBIC debentures (c)
|
|
|
|
|
|
|
|
|
5.7
|
Total net change in
unrealized depreciation
|
|
|
|
|
|
|
|
|
$ (16.4)
|
|
|
(a)
|
LMM includes
unrealized appreciation on 22 LMM portfolio investments and
unrealized depreciation on 15 LMM portfolio investments.
|
(b)
|
Other includes $2.9
million of unrealized appreciation relating to the External
Investment Manager and $2.4 million of net unrealized appreciation
relating to our other portfolio.
|
(c)
|
Relates to unrealized
appreciation on the SBIC debentures held by MSC II which are
accounted for on a fair value basis and includes $6.0 million of
accounting reversals resulting from the reversal of previously
recognized unrealized depreciation recorded since the date of
acquisition of MSC II on the debentures repaid due to fair value
adjustments since such date, partially offset by $0.3 million of
current period unrealized depreciation on the remaining SBIC
debentures.
|
The income tax provision for the first quarter of 2017 of
$5.6 million principally consisted of
a deferred tax provision of $4.4 million, which is primarily the result
of the net activity relating to our portfolio investments held in
our taxable subsidiaries, including changes in net operating loss
carryforwards, changes in net unrealized appreciation/depreciation
and other temporary book‑tax differences, as well as other current
tax expense of $1.3 million related
to (i) a $0.9 million
accrual for excise tax on our estimated undistributed taxable
income and (ii) other current tax expense of $0.4 million related to accruals for U.S. federal
and state income taxes.
Liquidity and Capital Resources
As of March 31, 2017, we had
$33.6 million in cash and cash
equivalents and $267.0 million of
unused capacity under our Credit Facility, which we maintain to
support our investment and operating activities.
Several details regarding our capital structure as of
March 31, 2017 are as follows:
- Our Credit Facility included $555.0
million in total commitments from a diversified group of
fourteen participating lenders, plus an accordion feature which
allows us to increase the total commitments under the facility to
up to $750.0 million.
- $288.0 million in outstanding
borrowings under our Credit Facility, bearing interest at an annual
interest rate of 2.7%.
- $240.2 million of outstanding
SBIC debentures through our three wholly owned SBIC subsidiaries,
with $109.8 million of remaining
capacity under the permitted maximum amount of SBIC debentures of
$350.0 million. These debentures,
which are guaranteed by the U.S. Small Business Administration, had
a weighted-average annual fixed interest rate of approximately 3.8%
and mature ten years from original issuance. The first maturity
related to our SBIC debentures occurs in 2019, and the
weighted-average remaining duration was approximately 5.7
years.
- $175.0 million of notes
outstanding that bear interest at a rate of 4.50% per year (the
"4.50% Notes"). The 4.50% Notes mature on December 1, 2019 and may be redeemed in whole or
in part at any time at our option subject to certain make-whole
provisions.
- $90.7 million of notes
outstanding that bear interest at a rate of 6.125% per year (the
"6.125% Notes"). The 6.125% Notes mature on April 1, 2023, and may be redeemed in whole or in
part at our option on or after April 1,
2018. The 6.125% Notes are listed on the New York Stock
Exchange and trade under the symbol "MSCA."
- Our net asset value totaled $1,243.9
million, or $22.44 per
share.
Investment Portfolio Information as of March 31, 2017 (2)
The following table provides a summary of the investments in our
LMM portfolio, middle market portfolio and private loan portfolio
as of March 31, 2017:
|
As of March 31,
2017
|
|
LMM (a)
|
|
Middle
Market
|
|
Private
Loan
|
|
(dollars in
millions)
|
Number of portfolio
companies
|
73
|
|
69
|
|
49
|
Fair value
|
$
886.6
|
|
$
568.8
|
|
$
384.2
|
Cost
|
$
772.1
|
|
$
588.9
|
|
$
403.7
|
% of portfolio at
cost - debt
|
67.6%
|
|
96.9%
|
|
94.0%
|
% of portfolio at
cost - equity
|
32.4%
|
|
3.1%
|
|
6.0%
|
% of debt investments
at cost secured by first priority lien
|
96.1%
|
|
88.8%
|
|
90.2%
|
Weighted-average
annual effective yield (b)
|
12.2%
|
|
8.6%
|
|
9.6%
|
Average EBITDA
(c)
|
$
4.6
|
|
$
95.5
|
|
$
24.8
|
|
|
(a)
|
We had equity
ownership in 99% of our LMM portfolio companies, and the average
fully diluted equity ownership in those portfolio companies was
approximately 37%.
|
(b)
|
The weighted-average
annual effective yields were computed using the effective interest
rates for all debt investments at cost, including amortization of
deferred debt origination fees and accretion of original issue
discount but excluding fees payable upon repayment of the debt
instruments and any debt investments on non-accrual
status.
|
(c)
|
The average EBITDA is
calculated using a simple average for the LMM portfolio and a
weighted-average for the middle market and private loan portfolios.
These calculations exclude certain portfolio companies, including
five LMM portfolio companies, one middle market portfolio company
and three private loan portfolio companies, as EBITDA is not a
meaningful valuation metric for our investments in these portfolio
companies, and those portfolio companies whose primary purpose is
to own real estate.
|
The fair value of our LMM portfolio company equity investments
was approximately 165% of the cost of such equity investments and
our LMM portfolio companies had a median net senior debt (senior
interest-bearing debt through our debt position less cash and cash
equivalents) to EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) ratio of 2.8 to 1.0 and a median
total EBITDA to senior interest expense ratio of 2.6 to 1.0.
Including all debt that is junior in priority to our debt position,
these median ratios were 3.2 to 1.0 and 2.6 to 1.0,
respectively.(2) (3) Based upon our internal
investment rating system, with a rating of "1" being the highest
and a rating of "5" being the lowest, and with all new investments
initially rated a "3", the weighted-average investment rating for
our total LMM investment portfolio was 2.4 as of March 31, 2017 and 2.3 as of December 31, 2016.
As of March 31, 2017, we had other
portfolio investments in ten companies, collectively totaling
$106.3 million in fair value and
$111.8 million in cost basis, which
comprised approximately 5.4% of our investment portfolio at fair
value.
As of March 31, 2017, there was no
cost basis in our investment in the External Investment Manager and
this investment had a fair value of $33.5 million, which comprised approximately
1.7% of our investment portfolio at fair value.
As of March 31, 2017, we had five
investments on non-accrual status, which comprised approximately
0.2% of the total investment portfolio at fair value and
approximately 2.7% of its cost. Our total portfolio investments at
fair value were approximately 105% of the related cost basis as of
March 31, 2017.
External Investment Manager
The External Investment Manager maintains an investment
sub-advisory relationship with HMS Income Fund, Inc., a non-listed
business development company ("HMS Income"), and earns management
fees for the services provided to HMS Income. During the first
quarter of 2017, the External Investment Manager generated
$2.6 million of fee income from this
relationship, and HMS Income ended the first quarter of 2017 with
total assets of over $1.0 billion.
The relationship with HMS Income benefited our net investment
income by $2.2 million in the first
quarter of 2017 through a $1.5
million reduction of our operating expenses for expenses we
allocated to the External Investment Manager for services we
provided to it and $0.7 million of
dividend income we received from the External Investment
Manager.
First Quarter 2017 Financial Results Conference Call /
Webcast
Main Street has scheduled a conference call for Friday, May 5, 2017 at 10:00 a.m. Eastern Time to discuss the first
quarter 2017 financial results.
You may access the conference call by dialing 412-902-0030 at
least 10 minutes prior to the start time. The conference call can
also be accessed via a simultaneous webcast by logging into the
investor relations section of the Main Street web site at
http://www.mainstcapital.com.
A telephonic replay of the conference call will be available
through Friday, May 12, 2017 and may
be accessed by dialing 201-612-7415 and using the passcode
13659933#. An audio archive of the conference call will also be
available on the investor relations section of the company's
website at http://www.mainstcapital.com shortly after the call and
will be accessible for approximately 90 days.
For a more detailed discussion of the financial and other
information included in this press release, please refer to the
Main Street Quarterly Report on Form 10-Q for the quarterly period
ended March 31, 2017 to be filed with
the Securities and Exchange Commission (www.sec.gov) and Main
Street's First Quarter 2017 Investor Presentation to be posted on
the investor relations section of the Main Street website at
http://www.mainstcapital.com.
(1)
|
Distributable net
investment income is net investment income as determined in
accordance with U.S. Generally Accepted Accounting Principles, or
U.S. GAAP, excluding the impact of share-based compensation expense
which is non-cash in nature. Main Street believes presenting
distributable net investment income and the related per share
amount is useful and appropriate supplemental disclosure for
analyzing its financial performance since share-based compensation
does not require settlement in cash. However, distributable net
investment income 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,
distributable net investment income should be reviewed only in
connection with such U.S. GAAP measures in analyzing Main Street's
financial performance. A reconciliation of net investment income in
accordance with U.S. GAAP to distributable net investment income is
detailed in the financial tables included with this press
release.
|
(2)
|
Portfolio company
financial information has not been independently verified by Main
Street.
|
(3)
|
These credit
statistics exclude certain portfolio companies for which EBITDA is
not a meaningful metric for the statistic.
|
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment
firm that primarily provides long-term debt and equity capital to
lower middle market companies and debt capital to middle market
companies. Main Street's portfolio investments are typically made
to support management buyouts, recapitalizations, growth
financings, refinancings and acquisitions of companies that operate
in diverse industry sectors. Main Street seeks to partner with
entrepreneurs, business owners and management teams and generally
provides "one stop" financing alternatives within its lower middle
market portfolio. Main Street's lower middle market companies
generally have annual revenues between $10
million and $150 million. Main Street's middle market debt
investments are made in businesses that are generally larger in
size than its lower middle market portfolio companies.
Main Street's common stock trades on the New York Stock Exchange
("NYSE") under the symbol "MAIN." In addition, Main Street has
outstanding 6.125% Notes due 2023, which trade on the NYSE under
the symbol "MSCA."
FORWARD-LOOKING STATEMENTS
Main Street cautions that statements in this press release which
are forward‑looking and provide other than historical information
involve risks and uncertainties that may impact its future results
of operations. The forward‑looking statements in this press release
are based on current conditions and include statements regarding
Main Street's goals, beliefs, strategies and future operating
results and cash flows. Although its management believes that the
expectations reflected in those forward‑looking statements are
reasonable, Main Street can give no assurance that those
expectations will prove to have been correct. Those statements are
made based on various underlying assumptions and are subject to
numerous uncertainties and risks, including, without limitation:
Main Street's continued effectiveness in raising, investing and
managing capital; adverse changes in the economy generally or in
the industries in which its portfolio companies operate; changes in
laws and regulations that may adversely impact its operations or
the operations of one or more of its portfolio companies; the
operating and financial performance of its portfolio companies;
retention of key investment personnel; competitive factors; and
such other factors described under the captions "Cautionary
Statement Concerning Forward Looking Statements" and "Risk Factors"
included in its filings with the Securities and Exchange Commission
(www.sec.gov). Main Street undertakes no obligation to update the
information contained herein to reflect subsequently occurring
events or circumstances, except as required by applicable
securities laws and regulations.
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, President &
COO, dhyzak@mainstcapital.com
Brent D. Smith, CFO,
bsmith@mainstcapital.com
713-350-6000
Dennard - Lascar Associates
Ken Dennard /
ken@dennardlascar.com
Mark Roberson /
mroberson@dennardlascar.com
713-529-6600
MAIN STREET
CAPITAL CORPORATION
|
Consolidated
Statements of Operations
|
(dollars in
thousands, except shares and per share amounts)
|
(Unaudited)
|
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
INVESTMENT
INCOME:
|
|
|
|
Interest, fee and
dividend income:
|
|
|
|
Control
investments
|
$
12,988
|
|
$
12,615
|
Affiliate investments
|
9,899
|
|
8,523
|
Non-Control/Non-Affiliate investments
|
25,002
|
|
20,737
|
Interest, fee and
dividend income
|
47,889
|
|
41,875
|
Interest, fee and
dividend income from marketable
|
|
|
|
securities and idle funds investments
|
-
|
|
131
|
Total investment
income
|
47,889
|
|
42,006
|
EXPENSES:
|
|
|
|
Interest
|
(8,608)
|
|
(8,182)
|
Compensation
|
(4,430)
|
|
(3,820)
|
General and
administrative
|
(2,940)
|
|
(2,405)
|
Share-based
compensation
|
(2,269)
|
|
(1,589)
|
Expenses allocated to
the External Investment Manager
|
1,524
|
|
1,154
|
Total
expenses
|
(16,723)
|
|
(14,842)
|
NET INVESTMENT
INCOME
|
31,166
|
|
27,164
|
|
|
|
|
NET REALIZED GAIN
(LOSS):
|
|
|
|
Control
investments
|
(682)
|
|
14,358
|
Affiliate investments
|
22,930
|
|
-
|
Non-Control/Non-Affiliate investments
|
5,317
|
|
818
|
Marketable securities and idle funds investments
|
-
|
|
(1,573)
|
SBIC
debentures
|
(5,217)
|
|
-
|
Total net realized
gain
|
22,348
|
|
13,603
|
|
|
|
|
NET CHANGE IN
UNREALIZED
|
|
|
|
APPRECIATION
(DEPRECIATION):
|
|
|
|
Portfolio investments
|
(22,091)
|
|
(27,529)
|
Marketable securities and idle funds investments
|
-
|
|
1,457
|
SBIC
debentures
|
5,665
|
|
(146)
|
Total net change in
unrealized depreciation
|
(16,426)
|
|
(26,218)
|
|
|
|
|
INCOME
TAXES:
|
|
|
|
Federal and state
income, excise and other taxes
|
(1,252)
|
|
(370)
|
Deferred
taxes
|
(4,386)
|
|
2,633
|
Income tax benefit
(provision)
|
(5,638)
|
|
2,263
|
|
|
|
|
NET INCREASE IN
NET ASSETS
|
|
|
|
RESULTING FROM
OPERATIONS
|
$
31,450
|
|
$
16,812
|
|
|
|
|
NET INVESTMENT
INCOME PER SHARE -
|
|
|
|
BASIC AND
DILUTED
|
$
0.57
|
|
$
0.54
|
NET INCREASE IN
NET ASSETS RESULTING FROM
|
|
|
|
OPERATIONS PER
SHARE - BASIC AND DILUTED
|
$
0.57
|
|
$
0.33
|
|
|
|
|
DIVIDENDS PAID PER
SHARE:
|
|
|
|
Regular monthly
dividends
|
$
0.555
|
|
$
0.540
|
Supplemental
dividends
|
-
|
|
-
|
Total
dividends
|
$
0.555
|
|
$
0.540
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING -
|
|
|
|
BASIC AND
DILUTED
|
55,125,170
|
|
50,549,780
|
MAIN STREET
CAPITAL CORPORATION
|
Consolidated
Balance Sheets
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
March 31,
2017
|
|
December 31,
2016
|
ASSETS
|
(Unaudited)
|
|
|
|
|
|
|
Portfolio investments
at fair value:
|
|
|
|
Control
investments
|
$
658,239
|
|
$
594,282
|
Affiliate
investments
|
329,024
|
|
375,948
|
Non-Control/Non-Affiliate investments
|
992,115
|
|
1,026,676
|
Total
investments
|
1,979,378
|
|
1,996,906
|
|
|
|
|
Cash and cash
equivalents
|
33,605
|
|
24,480
|
Interest receivable
and other assets
|
37,560
|
|
35,133
|
Receivable for
securities sold
|
8,604
|
|
1,990
|
Deferred financing
costs, net
|
12,603
|
|
12,645
|
Deferred tax asset,
net
|
4,739
|
|
9,125
|
|
|
|
|
|
|
|
|
Total
assets
|
$
2,076,489
|
|
$
2,080,279
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Credit
facility
|
$
288,000
|
|
$
343,000
|
SBIC
debentures
|
239,355
|
|
239,603
|
4.50%
Notes
|
175,000
|
|
175,000
|
6.125%
Notes
|
90,655
|
|
90,655
|
Accounts payable and
other liabilities
|
11,758
|
|
14,205
|
Payable for
securities purchased
|
14,064
|
|
2,184
|
Interest
payable
|
3,471
|
|
4,103
|
Dividend
payable
|
10,252
|
|
10,048
|
|
|
|
|
Total
liabilities
|
832,555
|
|
878,798
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
ASSETS
|
|
|
|
|
|
|
|
Common
stock
|
554
|
|
543
|
Additional paid-in
capital
|
1,185,478
|
|
1,143,883
|
Accumulated net
investment income, net of cumulative dividends
|
33,943
|
|
19,033
|
Accumulated net
realized gain from investments, net of cumulative
dividends
|
(50,886)
|
|
(58,887)
|
Net unrealized
appreciation, net of income taxes
|
74,845
|
|
96,909
|
|
|
|
|
Total net
assets
|
1,243,934
|
|
1,201,481
|
|
|
|
|
Total liabilities and
net assets
|
$
2,076,489
|
|
$
2,080,279
|
|
|
|
|
NET ASSET VALUE
PER SHARE
|
$
22.44
|
|
$
22.10
|
MAIN STREET
CAPITAL CORPORATION
|
Reconciliation of
Distributable Net Investment Income
|
(dollars in
thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2017
|
|
2016
|
Net investment
income
|
$
31,166
|
|
$
27,164
|
Share-based compensation expense
|
2,269
|
|
1,589
|
Distributable net
investment income (1)
|
$
33,435
|
|
$
28,753
|
|
|
|
|
Per share
amounts:
|
|
|
|
Net investment income
per share -
|
|
|
|
Basic and diluted
|
$
0.57
|
|
$
0.54
|
Distributable net
investment income per share -
|
|
|
|
Basic and diluted (1)
|
$
0.61
|
|
$
0.57
|
|
|
(1)
|
Distributable net
investment income is net investment income, as determined in
accordance with U.S. GAAP, excluding the impact of share-based
compensation expense which is non-cash in nature. Main Street
believes presenting distributable net investment income and the
related per share amount is useful and appropriate supplemental
disclosure of information for analyzing its financial performance
since share-based compensation does not require settlement in cash.
However, distributable net investment income 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, distributable net investment
income should be reviewed only in connection with such U.S. GAAP
measures in analyzing Main Street's financial performance. A
reconciliation of net investment income in accordance with U.S.
GAAP to distributable net investment income is presented in the
table above.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/main-street-announces-first-quarter-2017-financial-results-300451610.html
SOURCE Main Street Capital Corporation