Announces Third Quarter 2024 Earnings Release
and Conference Call Schedule
HOUSTON, Oct. 15,
2024 /PRNewswire/ -- Main Street Capital Corporation
(NYSE: MAIN) ("Main Street" or the "Company") is pleased to
announce its preliminary operating results for the third quarter of
2024 and its third quarter 2024 earnings release and conference
call schedule.
In commenting on the Company's operating results for the third
quarter of 2024, Dwayne L. Hyzak,
Main Street's Chief Executive Officer, stated, "We are pleased with
our performance in the third quarter, which resulted in another
quarter of strong operating results, including a new record for net
asset value per share for the ninth consecutive quarter,
distributable net investment income per share that continued to
exceed the dividends paid to our shareholders and an estimated
return on equity of over 18% for the quarter. We believe that these
continued strong results demonstrate the sustainable strength of
our overall platform, the benefits of our differentiated and
diversified investment strategies, the unique contributions of our
asset management business and the underlying strength and quality
of our portfolio companies. We are also pleased that we further
improved our strong capital structure and liquidity position during
the quarter and ended the quarter with attractive investment
pipelines in both our lower middle market and private loan
investment strategies, each of which have us well positioned for
the future."
Mr. Hyzak continued, "The total dividends paid to our
shareholders in the third quarter of 2024 increased by 7.3%
compared to the third quarter of 2023, continuing our trend of
increasing the dividends paid to our shareholders over the past few
years. Our positive performance in the third quarter allowed us to
continue to generate distributable net investment income per share
that exceeded the total dividends paid to our shareholders, with
our estimated distributable net investment income for the third
quarter of 2024 exceeding the monthly dividends paid to our
shareholders by over 43% and the total dividends paid to our
shareholders by over 2%. Based upon the continued strength of our
performance in the third quarter, we expect another meaningful
supplemental dividend to be paid in the fourth quarter of 2024.
This would represent our thirteenth consecutive quarterly
supplemental dividend, to go with the eight increases to our
regular monthly dividends since the fourth quarter of 2021,
allowing us to deliver significant value to our shareholders, while
continuing to maintain a conservative dividend policy."
Preliminary Estimates of Third Quarter 2024 Results
Main Street's preliminary estimate of third quarter 2024 net
investment income ("NII") is $0.99 to
$1.01 per share and distributable net
investment income ("DNII") is $1.05
to $1.07 per share.(1)
Main Street's preliminary estimate of net asset value ("NAV")
per share as of September 30, 2024 is $30.54 to $30.60,
representing an increase of $0.74 to
$0.80 per share, or 2.5% to 2.7%,
from the NAV per share of $29.80 as
of June 30, 2024, with this increase
after the impact of the supplemental dividend paid in September 2024 of $0.30 per share. The estimated increase in NAV
per share is primarily due to the net fair value increase on the
investment portfolio resulting from the net realized gain and the
net unrealized appreciation on portfolio investments, including an
increase in the fair value of the wholly-owned asset manager, and
the accretive impact of equity issuances during the quarter, with
these increases partially offset by the net tax expense for the
quarter.
As a result of Main Street's preliminary estimates of NII and
net changes in the fair market value of its investment portfolio as
noted above, Main Street estimates that it generated a quarterly
annualized return on equity of 18% to 20% for the third quarter of
2024.(2)
Main Street preliminarily estimates that non-accrual investments
comprised 1.4% of the total investment portfolio at fair value and
3.9% at cost as of September 30, 2024.
Investment Portfolio Activity
The Company's third quarter 2024 operating activities include
the following investment activity in the lower middle market
("LMM"), private loan and middle market investment strategies:
- $51.6 million in total LMM
portfolio investments, which after aggregate repayments of debt
principal from several LMM portfolio investments and return of
invested equity capital from a LMM portfolio investment resulted in
a net increase of $2.0 million in the
total cost basis of the LMM investment portfolio;
- $309.3 million in total private
loan investments, which after aggregate repayments and sales of
several private loan portfolio debt investments and return of
invested capital from a private loan portfolio equity investment
resulted in a net increase of $162.7
million in the total cost basis of the private loan
investment portfolio; and
- a net decrease of $4.3 million in
the total cost basis of the middle market investment
portfolio.
Third Quarter 2024 Earnings Release and Conference Call
Schedule
Main Street's third quarter 2024 results will be released on
Thursday, November 7, 2024, after the financial markets close.
In conjunction with the release, Main Street has scheduled a
conference call, which will be broadcast live via phone and over
the Internet, on Friday, November 8, 2024, at 10:00 a.m. Eastern time. Investors may
participate either by phone or audio webcast.(3)
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By Phone:
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Dial 412-902-0030 at
least 10 minutes before the call. A replay will be available
through November 15, 2024 by dialing 201-612-7415 and using
the access code 13748740#.
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By Webcast:
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Connect to the webcast
via the Investor Relations section of Main Street's website at
www.mainstcapital.com. Please log in at least 10 minutes in advance
to register and download any necessary software. A replay of the
conference call will be available on Main Street's website shortly
after the call and will be accessible until the date of Main
Street's earnings release for the next quarter.
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ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment
firm that primarily provides customized long-term debt and equity
capital solutions to lower middle market companies and debt capital
to private companies owned by or in the process of being acquired
by a private equity fund. 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 customized "one-stop" debt and equity financing
alternatives within its lower middle market investment strategy.
Main Street seeks to partner with private equity fund sponsors and
primarily invests in secured debt investments in its private loan
investment strategy. Main Street's lower middle market portfolio
companies generally have annual revenues between $10 million and $150
million. Main Street's private loan portfolio companies
generally have annual revenues between $25
million and $500 million.
Main Street, through its wholly owned portfolio company MSC
Adviser I, LLC ("MSC Adviser"), also maintains an asset management
business through which it manages investments for external parties.
MSC Adviser is registered as an investment adviser under the
Investment Advisers Act of 1940, as amended.
FORWARD-LOOKING STATEMENTS AND OTHER MATTERS
Main Street cautions that statements in this press release which
are forward-looking and provide other than historical information,
including but not limited to the preliminary estimates of third
quarter 2024 financial information and results and the declaration
and payment of future dividends, are based on current conditions
and information available to Main Street as of the date hereof.
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, such 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 (the "SEC")
(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.
The preliminary estimates of third quarter 2024 financial
information and results furnished above are based on Main Street
management's preliminary determinations and current expectations,
and such information is inherently uncertain. The preliminary
estimates are subject to completion of Main Street's customary
quarter-end closing and review procedures and third-party review,
including the determination of the fair value of Main Street's
portfolio investments. As a result, actual results could differ
materially from the current preliminary estimates based on
adjustments made during Main Street's quarter-end closing and
review procedures and third-party review, and Main Street's
reported information in its Quarterly Report on Form 10-Q for the
quarter ended September 30, 2024 may differ from this
information, and any such differences may be material. In addition,
the information furnished above does not include all of the
information regarding Main Street's financial condition and results
of operations for the quarter ended September 30, 2024 that
may be important to readers. As a result, readers are cautioned not
to place undue reliance on the information furnished in this press
release and should view this information in the context of Main
Street's full third quarter 2024 results when such results are
disclosed by Main Street in its Quarterly Report on Form 10-Q for
the quarter ended September 30, 2024. The information
furnished in this press release is based on current Main Street
management expectations that involve substantial risks and
uncertainties that could cause actual results to differ materially
from the results expressed in, or implied by, such information.
Main Street has an existing effective shelf registration
statement on Form N-2 on file with the SEC relating to the offer
and sale from time to time of its securities. Investors are advised
to carefully consider the investment objective, risks and charges
and expenses of Main Street before investing in any of Main
Street's securities. The prospectus included in the shelf
registration statement, together with any related prospectus
supplement, contain this and other information about Main Street
and should be read carefully before investing. A copy of the
prospectus and any related prospectus supplement may be obtained by
contacting Main Street.
End Notes
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(1)
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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 non-cash compensation expenses,
which includes both share-based compensation expenses and deferred
compensation expense or benefit. Main Street believes presenting
distributable net investment income per share is useful and
appropriate supplemental disclosure for analyzing its financial
performance, since share-based compensation does not require
settlement in cash and deferred compensation expense or benefit
does not result in a net cash impact to Main Street upon
settlement. 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. In order
to reconcile estimated distributable net investment income per
share to estimated net investment income per share in accordance
with U.S. GAAP for the third quarter of 2024, an estimated $0.05 to
$0.06 per share of non-cash compensation expenses are added back to
calculate estimated distributable net investment income per
share.
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(2)
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Return on equity equals
the net increase in net assets resulting from operations divided by
the average quarterly total net assets.
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(3)
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No information
contained on the Company's website or disclosed on the
November 8, 2024 conference call, including the webcast and
the archived versions, is incorporated by reference in this press
release or any of the Company's filings with the SEC, and you
should not consider that information to be part of this press
release or any other such filing.
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Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO,
dhyzak@mainstcapital.com
Ryan R. Nelson, CFO,
rnelson@mainstcapital.com
713-350-6000
Dennard Lascar Investor
Relations
Ken Dennard /
ken@dennardlascar.com
Zach Vaughan /
zvaughan@dennardlascar.com
713-529-6600
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SOURCE Main Street Capital Corporation
