HOUSTON, Nov. 5, 2020 /PRNewswire/ -- Main
Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased
to announce its financial results for the third quarter of
2020.
Third Quarter 2020 Highlights
- Net investment income of $30.5
million (or $0.46 per
share)
- Distributable net investment income(1) of
$33.0 million (or $0.50 per share)
- Total investment income of $52.0
million
- Industry leading ratio of total non-interest operating expenses
as a percentage of quarterly average total assets ("Operating
Expenses to Assets Ratio") of 1.4% on an annualized basis for the
quarter and 1.3% for the trailing twelve-month ("TTM") period ended
September 30, 2020
- Net increase in net assets resulting from operations of
$78.2 million (or $1.18 per share)
- Net asset value of $21.52 per
share at September 30, 2020,
representing an increase of $0.67 per
share, or 3.2%, compared to $20.85
per share at June 30, 2020
- Declared regular monthly dividends totaling $0.615 per share for the fourth quarter of 2020,
or $0.205 per share for each of
October, November, and December 2020,
equal to the regular monthly dividends paid for the fourth quarter
of 2019 and the third quarter of 2020
- Completed $46.1 million in total
lower middle market ("LMM") portfolio investments, including
investments totaling $26.0 million in
a new LMM portfolio company, which after aggregate repayments of
debt principal and return of invested equity capital from several
LMM portfolio investments resulted in a net increase of
$32.0 million in total LMM portfolio
investments
- Net increase of $69.4 million in
private loan portfolio investments
- Net decrease of $2.4 million in
middle market portfolio investments
- Further diversified capital structure by issuing an additional
$125.0 million of 5.20% Notes due
2024 ("5.20% Notes") at a premium to par of approximately 102.67%,
resulting in a yield-to-maturity of approximately 4.42%
In commenting on Main Street's results, Dwayne L. Hyzak, Main Street's Chief Executive
Officer, stated, "While we continue to prioritize the health and
well-being of our employees and the employees of our portfolio
companies during the COVID-19 pandemic and proactively work through
the ongoing impacts of the pandemic on our investment portfolio, we
are pleased to have continued our success with both our lower
middle market and private loan investment activities during the
third quarter with the two portfolios combining for over
$125 million in new investments. We
believe that our conservative capital structure and significant
liquidity position will allow us to continue to manage through the
current challenges caused by the pandemic and to successfully
execute on our pipeline of attractive lower middle market and
private loan investment opportunities."
Mr. Hyzak added, "We are also very pleased with our recent
announcement of the completion of the transaction under which we
became the sole investment adviser to HMS Income Fund, which is now
known as MSC Income Fund. We are excited about positioning
the fund for the future, while also continuing to execute our
overall strategy to grow our asset management business within our
internally managed BDC structure and continuing to provide this
unique benefit to our Main Street stakeholders."
Third Quarter 2020 Operating Results
The following table provides a summary of our operating results
for the third quarter of 2020:
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
2020
|
|
2019
|
|
Change ($)
|
|
Change (%)
|
Interest
income
|
$ 42,138
|
|
$ 46,192
|
|
$ (4,054)
|
|
(9%)
|
Dividend
income
|
8,106
|
|
12,492
|
|
(4,386)
|
|
(35%)
|
Fee income
|
1,710
|
|
1,384
|
|
326
|
|
24%
|
Total investment
income
|
$ 51,954
|
|
$ 60,068
|
|
$ (8,114)
|
|
(14%)
|
|
|
|
|
|
|
|
|
Net investment
income
|
$ 30,462
|
|
$ 39,012
|
|
$ (8,550)
|
|
(22%)
|
Net investment income
per share
|
$0.46
|
|
$0.62
|
|
$(0.16)
|
|
(26%)
|
|
|
|
|
|
|
|
|
Distributable net
investment income (1)
|
$ 33,023
|
|
$ 41,584
|
|
$ (8,561)
|
|
(21%)
|
Distributable net
investment income per share (1)
|
$0.50
|
|
$0.66
|
|
$(0.16)
|
|
(24%)
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in net assets resulting from operations
|
$ 78,195
|
|
$ 33,902
|
|
$ 44,293
|
|
131%
|
Net increase
(decrease) in net assets resulting from operations per
share
|
$1.18
|
|
$0.54
|
|
$0.64
|
|
119%
|
|
|
|
|
|
|
|
|
The $8.1 million decrease in total
investment income in the third quarter of 2020 from the comparable
period of the prior year was principally attributable to (i) a
$4.4 million decrease in dividend
income from investment portfolio equity investments, primarily
resulting from the negative impacts of the COVID-19 pandemic on
certain of our portfolio companies' operating results, financial
condition and liquidity and (ii) a $4.1
million decrease in interest income, which was primarily due
to lower floating interest rates on investment portfolio debt
investments, based upon the decline in the London Interbank Offered
Rate ("LIBOR"). The $8.1 million
decrease in total investment income in the third quarter of 2020
also includes the impact of a $1.3
million decrease related to accelerated prepayment,
repricing and other income activity considered less consistent or
non-recurring when compared to the same period in 2019.
Cash operating expenses (total operating expenses excluding
non-cash, share-based compensation expense) increased to
$18.9 million in the third quarter of
2020 from $18.5 million for the
corresponding period of 2019. This increase in cash operating
expenses was principally attributable to (i) a $0.7 million increase in compensation expense and
(ii) a $0.4 million increase in
general and administrative expense, partially offset by (i) a
$0.4 million decrease in interest
expense and (ii) a $0.2 million
increase in expenses allocated to the external investment manager.
The increase in compensation expense is primarily related to a
$0.4 million increase as a result of
the change in the fair value of our deferred compensation plan
assets. Our Operating Expenses to Assets Ratio was 1.4% in the
third quarter of 2020, compared to 1.2% for the third quarter of
2019, both on an annualized basis.
The $8.6 million decrease in both
net investment income and distributable net investment income,
which is net investment income before non-cash, share-based
compensation expense, in the third quarter of 2020 were both
principally attributable to the decrease in total investment income
and higher operating expenses, both as discussed above.
Net investment income and distributable net investment income on
a per share basis for the third quarter of 2020 both include the
impact of a greater number of average shares outstanding compared
to the corresponding period in 2019 primarily due to (i) shares
issued through our at-the-market, or ATM, program, (ii) shares
issued pursuant to our equity incentive plans and (iii) shares
issued pursuant to our dividend reinvestment plan. The decrease in
both net investment income and distributable net investment income
on a per share basis includes (i) a decrease of $0.02 per share due to the decrease in investment
income from accelerated prepayment, repricing and other income
activity considered non-recurring during the third quarter of 2020
and (ii) a decrease of $0.01 per
share due to the change in the fair value of our deferred
compensation plan assets during the third quarter of 2020, both as
discussed above.
The $78.2 million net increase in
net assets resulting from operations in the third quarter of 2020
represents a $44.3 million
improvement from the third quarter of 2019. This was primarily
the result of (i) a $66.0 million
improvement in net unrealized appreciation (depreciation) from
portfolio investments, including the impact of accounting reversals
relating to realized gains/income (losses), partially offset by (i)
an $8.6 million decrease in net
investment income as discussed above, (ii) an $8.0 million increase in net realized loss from
investments and (iii) a $5.5 million
increase in income tax provision. The $13.9
million net realized loss from investments for the third
quarter of 2020 was primarily the result of (i) a $12.6 million realized loss from the full exit of
three middle market investments and (ii) a $4.7 million realized loss from the restructure
of one middle market investment, partially offset by a $4.0 million realized gain resulting from the
partial exit of one LMM investment.
The following table provides a summary of the total net
unrealized appreciation of $63.1 million for the third quarter of
2020:
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2020
|
|
|
|
|
|
Middle
|
|
Private
|
|
|
|
|
|
|
|
|
LMM(a)
|
|
Market
|
|
Loan
|
|
Other
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
Accounting reversals
of net unrealized (appreciation) depreciation
recognized in prior periods due to net realized (gains /
income)
losses recognized during the current period
|
|
$
|
(5.1)
|
|
$
|
18.8
|
|
$
|
0.7
|
|
$
|
0.0
|
|
$
|
14.4
|
Net unrealized
appreciation relating to portfolio investments
|
|
|
13.9
|
|
|
13.0
|
|
|
16.9
|
|
|
4.9
|
(b)
|
|
48.7
|
Total net unrealized
appreciation relating to portfolio investments
|
|
$
|
8.8
|
|
$
|
31.8
|
|
$
|
17.6
|
|
$
|
4.9
|
|
$
|
63.1
|
(a)
|
LMM includes
unrealized appreciation on 28 LMM portfolio investments and
unrealized depreciation on 17 LMM portfolio investments.
|
(b)
|
Other includes (i)
$2.5 million of net unrealized appreciation relating to the other
portfolio, (ii) $2.0 million of unrealized appreciation relating to
the External Investment Manager, as defined below, and (iii) $0.4
million of unrealized appreciation relating to our deferred
compensation plan assets.
|
|
|
Liquidity and Capital Resources
As of September 30, 2020, we had $27.1 million in cash and cash equivalents,
$487.0 million of unused capacity
under our revolving credit facility ("Credit Facility"), which we
maintain to support our investment and operating activities, and
$45.2 million of remaining Small
Business Investment Company ("SBIC") debenture capacity.
Several details regarding our capital structure as of
September 30, 2020 are as follows:
- Our Credit Facility included $740.0
million in total commitments from a diversified group of 18
participating lenders, plus an accordion feature that allows us to
increase the total commitments under the facility to up to
$800.0 million.
- $253.0 million in outstanding
borrowings under our Credit Facility, with an interest rate of 2.0%
based on LIBOR effective for the contractual reset date of
October 1, 2020.
- $304.8 million of outstanding
SBIC debentures through our wholly owned SBIC subsidiaries. These
debentures, which are guaranteed by the U.S. Small Business
Administration, had a weighted-average annual fixed interest rate
of approximately 3.4% and mature ten years from original issuance.
The first maturity related to our SBIC debentures occurs in the
first quarter of 2021, and the weighted-average remaining duration
was approximately 5.5 years.
- $450.0 million of notes
outstanding that bear interest at a rate of 5.20% per year (the
"5.20% Notes"). The 5.20% Notes mature on May 1, 2024 and may be redeemed in whole or in
part at any time at our option subject to certain make-whole
provisions.
- $185.0 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, 2022 and may be redeemed in whole or
in part at any time at our option subject to certain make-whole
provisions.
- Our net asset value totaled $1,423.2
million, or $21.52 per
share.
During November 2020, we expanded
the total commitments under the Credit Facility from $740.0 million to $780.0
million. The $40.0 million net
increase in total commitments was the result of the addition of a
new lender relationship, which further diversifies our lending
group under the Credit Facility to a total of nineteen
participants.
Investment Portfolio Information as of
September 30, 2020 (2)
The following table provides a summary of the investments in our
LMM portfolio, middle market portfolio and private loan portfolio
as of September 30, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
September 30, 2020
|
|
|
|
|
LMM(a)
|
|
Middle
Market
|
|
Private
Loan
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
Number of portfolio
companies
|
|
|
70
|
|
42
|
|
68
|
Fair value
|
|
$
|
1,228.1
|
$
|
441.3
|
$
|
743.7
|
Cost
|
|
$
|
1,063.6
|
$
|
515.5
|
$
|
823.0
|
% of portfolio at
cost - debt
|
|
|
66.2%
|
|
94.4%
|
|
93.8%
|
% of portfolio at
cost - equity
|
|
|
33.8%
|
|
5.6%
|
|
6.2%
|
% of debt investments
at cost secured by first priority lien
|
|
|
97.1%
|
|
92.3%
|
|
95.8%
|
Weighted-average
annual effective yield (b)
|
|
|
11.6%
|
|
7.9%
|
|
8.6%
|
Average EBITDA
(c)
|
|
$
|
5.0
|
$
|
110.5
|
$
|
54.2
|
(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 41%.
|
(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
two LMM portfolio companies, one middle market portfolio company
and four 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 159% 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 2.7 to 1.0 and a median
total EBITDA to senior interest expense ratio of 2.7 to 1.0.
Including all debt that is junior in priority to our debt position,
these median ratios were 2.8 to 1.0 and 2.6 to 1.0,
respectively.(2) (3)
As of September 30, 2020, we had other portfolio
investments in twelve companies, collectively totaling $100.5 million in fair value and $126.2 million in cost basis, which comprised
approximately 3.9% of our investment portfolio at fair value.
As of September 30, 2020, there was no cost basis in
our investment in the External Investment Manager (as defined
below), and this investment had a fair value of $71.1 million, which comprised approximately
2.8% of our investment portfolio at fair value.
As of September 30, 2020, we had twelve investments on
non-accrual status, which comprised approximately 2.6% of the total
investment portfolio at fair value and approximately 7.1% at cost.
Our total portfolio investments at fair value were approximately
102% of the related cost basis as of
September 30, 2020.
External Investment Manager
MSC Adviser I, LLC is a wholly owned portfolio company and
registered investment advisor that provides investment management
services to third parties (the "External Investment Manager").
Through the end of the third quarter of 2020, the External
Investment Manager maintained an investment sub-advisory
relationship with HMS Income Fund, Inc. ("HMS Income"), and earned
management fees for the services provided to HMS Income. During the
third quarter of 2020, the External Investment Manager earned
$2.3 million of management fee income
from this relationship, and HMS Income ended the third quarter of
2020 with total assets of approximately $951.3 million. The relationship with HMS Income
benefited our net investment income by $2.2
million in the third quarter of 2020 through a $1.9 million reduction of our operating expenses
for expenses we allocated to the External Investment Manager for
services we provided to it and $0.3
million of dividend income we received from the External
Investment Manager.
After successfully receiving the required approval of HMS
Income's stockholders, effective October 30,
2020, we, through the External Investment Manager, became
the sole investment adviser and administrator to HMS Income, and
HMS Income changed its name to MSC Income Fund, Inc. The new
advisory agreement includes a 1.75% management fee (reduced from
2.00%) and the same incentive fee calculations as under the prior
advisory agreement, with the External Investment Manager receiving
100% of such fee income (increased from 50% previously).
Third Quarter 2020 Financial Results Conference Call /
Webcast
Main Street has scheduled a conference call for Friday, November 6, 2020 at 10:00 a.m. Eastern Time to discuss the third
quarter 2020 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, November 13, 2020 and
may be accessed by dialing 201-612-7415 and using the passcode
13706730#. 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 quarter ended
September 30, 2020 to be filed with the Securities and
Exchange Commission (www.sec.gov) and Main Street's Third Quarter
2020 Investor Presentation to be posted on the investor relations
section of the Main Street website at
http://www.mainstcapital.com.
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, through its wholly owned portfolio company MSC
Adviser I, LLC ("MSC Adviser"), also maintains an asset management
business through which it manages approximately $950 million of investments for third
parties. MSC Adviser is registered as an investment adviser
under the Investment Advisers Act of 1940.
FORWARD-LOOKING STATEMENTS
Main Street cautions that statements in this press release which
are forward–looking and provide other than historical information,
including but not limited to our and our portfolio companies'
ability to successfully navigate the current economic environment
and the effects of the COVID-19 pandemic, are based on current
conditions and information available to Main Street as of the date
hereof 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 be correct.
Those forward-looking 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 Main
Street's portfolio companies operate; the potential impacts of the
COVID-19 pandemic on the business and operations, liquidity and
access to capital of Main Street and its portfolio companies, and
on the U.S. and global economies, including public health
requirements in response to the pandemic; changes in laws and
regulations or business, political and/or regulatory conditions
that may adversely impact Main Street's operations or the
operations of its portfolio companies; the operating and financial
performance of Main Street's portfolio companies and their access
to capital; 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 Main Street's 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, CEO,
dhyzak@mainstcapital.com
Brent D. Smith, CFO,
bsmith@mainstcapital.com
713-350-6000
Dennard Lascar Investor
Relations
Ken Dennard /
ken@dennardlascar.com
Zach Vaughan /
zvaughan@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
|
|
Nine Months
Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
INVESTMENT
INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest, fee and
dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Control
investments
|
|
$
|
18,558
|
|
$
|
23,173
|
|
$
|
57,357
|
|
$
|
70,480
|
|
Affiliate
investments
|
|
|
8,255
|
|
|
8,009
|
|
|
23,626
|
|
|
25,426
|
|
Non–Control/Non–Affiliate investments
|
|
|
25,141
|
|
|
28,886
|
|
|
79,126
|
|
|
86,818
|
|
Total investment
income
|
|
|
51,954
|
|
|
60,068
|
|
|
160,109
|
|
|
182,724
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
|
(12,489)
|
|
|
(12,893)
|
|
|
(36,827)
|
|
|
(37,138)
|
|
Compensation
|
|
|
(4,980)
|
|
|
(4,322)
|
|
|
(12,280)
|
|
|
(15,907)
|
|
General and
administrative
|
|
|
(3,354)
|
|
|
(2,920)
|
|
|
(9,827)
|
|
|
(9,282)
|
|
Share–based
compensation
|
|
|
(2,561)
|
|
|
(2,572)
|
|
|
(8,215)
|
|
|
(7,279)
|
|
Expenses allocated to
the External Investment Manager
|
|
|
1,892
|
|
|
1,651
|
|
|
5,340
|
|
|
5,001
|
|
Total
expenses
|
|
|
(21,492)
|
|
|
(21,056)
|
|
|
(61,809)
|
|
|
(64,605)
|
|
NET INVESTMENT
INCOME
|
|
|
30,462
|
|
|
39,012
|
|
|
98,300
|
|
|
118,119
|
|
NET REALIZED GAIN
(LOSS):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Control
investments
|
|
|
4,041
|
|
|
5,869
|
|
|
(15,825)
|
|
|
4,926
|
|
Affiliate
investments
|
|
|
(172)
|
|
|
1,850
|
|
|
(407)
|
|
|
(602)
|
|
Non–Control/Non–Affiliate investments
|
|
|
(17,743)
|
|
|
(13,595)
|
|
|
(28,091)
|
|
|
(18,487)
|
|
Realized loss on
extinguishment of debt
|
|
|
—
|
|
|
—
|
|
|
(534)
|
|
|
(5,689)
|
|
Total net realized
loss
|
|
|
(13,874)
|
|
|
(5,876)
|
|
|
(44,857)
|
|
|
(19,852)
|
|
NET UNREALIZED
APPRECIATION
(DEPRECIATION):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Control
investments
|
|
|
7,139
|
|
|
(8,797)
|
|
|
(35,096)
|
|
|
6,286
|
|
Affiliate
investments
|
|
|
2,406
|
|
|
1,323
|
|
|
(26,883)
|
|
|
3,131
|
|
Non–Control/Non–Affiliate investments
|
|
|
53,569
|
|
|
4,547
|
|
|
(56,051)
|
|
|
3,737
|
|
SBIC
debentures
|
|
|
—
|
|
|
(319)
|
|
|
460
|
|
|
4,625
|
|
Total net unrealized
appreciation (depreciation)
|
|
|
63,114
|
|
|
(3,246)
|
|
|
(117,570)
|
|
|
17,779
|
|
INCOME
TAXES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal and state
income, excise and other taxes
|
|
|
(1,165)
|
|
|
(1,079)
|
|
|
(1,420)
|
|
|
(2,745)
|
|
Deferred
taxes
|
|
|
(342)
|
|
|
5,091
|
|
|
15,673
|
|
|
254
|
|
Income tax benefit
(provision)
|
|
|
(1,507)
|
|
|
4,012
|
|
|
14,253
|
|
|
(2,491)
|
|
NET INCREASE
(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
|
|
$
|
78,195
|
|
$
|
33,902
|
|
$
|
(49,874)
|
|
$
|
113,555
|
|
NET INVESTMENT
INCOME PER SHARE—BASIC
AND DILUTED
|
|
$
|
0.46
|
|
$
|
0.62
|
|
$
|
1.50
|
|
$
|
1.88
|
|
NET INCREASE
(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS PER
SHARE—BASIC AND
DILUTED
|
|
$
|
1.18
|
|
$
|
0.54
|
|
$
|
(0.76)
|
|
$
|
1.81
|
|
WEIGHTED AVERAGE
SHARES
OUTSTANDING—BASIC
AND DILUTED
|
|
|
66,110,555
|
|
|
63,297,943
|
|
|
65,319,784
|
|
|
62,686,139
|
|
MAIN STREET
CAPITAL CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2020
|
|
2019
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Investments at fair
value:
|
|
|
|
|
|
|
Control
investments
|
|
$
|
1,020,713
|
|
$
|
1,032,721
|
Affiliate
investments
|
|
|
348,030
|
|
|
330,287
|
Non–Control/Non–Affiliate investments
|
|
|
1,215,902
|
|
|
1,239,316
|
Total
investments
|
|
|
2,584,645
|
|
|
2,602,324
|
Cash and cash
equivalents
|
|
|
27,121
|
|
|
55,246
|
Interest receivable and
other assets
|
|
|
42,758
|
|
|
50,458
|
Deferred financing
costs, net
|
|
|
2,944
|
|
|
3,521
|
Total
assets
|
|
$
|
2,657,468
|
|
$
|
2,711,549
|
LIABILITIES
|
|
|
|
|
|
|
Credit
facility
|
|
$
|
253,000
|
|
$
|
300,000
|
SBIC debentures (par:
$304,800 ($40,000 due within one year) and $311,800 as of
September 30, 2020 and December 31, 2019,
respectively)
|
|
|
298,835
|
|
|
306,188
|
5.20% Notes due 2024
(par: $450,000 and $325,000 as of September 30, 2020
and
December 31, 2019, respectively)
|
|
|
451,953
|
|
|
324,595
|
4.50% Notes due 2022
(par: $185,000 as of both September 30, 2020 and
December 31, 2019)
|
|
|
183,685
|
|
|
183,229
|
Accounts payable and
other liabilities
|
|
|
19,136
|
|
|
24,532
|
Interest
payable
|
|
|
13,392
|
|
|
7,292
|
Dividend
payable
|
|
|
13,554
|
|
|
13,174
|
Deferred tax liability,
net
|
|
|
731
|
|
|
16,149
|
Total
liabilities
|
|
|
1,234,286
|
|
|
1,175,159
|
|
|
|
|
|
|
|
NET
ASSETS
|
|
|
|
|
|
|
Common stock
|
|
|
661
|
|
|
643
|
Additional paid–in
capital
|
|
|
1,569,642
|
|
|
1,512,435
|
Total undistributed
(overdistributed) earnings
|
|
|
(147,121)
|
|
|
23,312
|
Total net
assets
|
|
|
1,423,182
|
|
|
1,536,390
|
Total
liabilities and net assets
|
|
$
|
2,657,468
|
|
$
|
2,711,549
|
NET ASSET VALUE
PER SHARE
|
|
$
|
21.52
|
|
$
|
23.91
|
MAIN STREET
CAPITAL CORPORATION
Reconciliation of Distributable Net Investment Income
(dollars in thousands, except per share amounts)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September 30,
|
|
September 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net investment
income
|
$
|
30,462
|
|
$
|
39,012
|
|
$
|
98,300
|
|
$
|
118,119
|
Share-based compensation expense
|
|
2,561
|
|
|
2,572
|
|
|
8,215
|
|
|
7,279
|
Distributable net
investment income (1)
|
$
|
33,023
|
|
$
|
41,584
|
|
$
|
106,515
|
|
$
|
125,398
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
per share -
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
|
$
|
0.46
|
|
$
|
0.62
|
|
$
|
1.50
|
|
$
|
1.88
|
Distributable net
investment income per share -
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted (1)
|
$
|
0.50
|
|
$
|
0.66
|
|
$
|
1.63
|
|
$
|
2.00
|
MAIN STREET CAPITAL CORPORATION
|
Endnotes
|
|
(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.
|
|
|
View original
content:http://www.prnewswire.com/news-releases/main-street-announces-third-quarter-2020-results-301167419.html
SOURCE Main Street Capital Corporation