- GAAP Net Investment Income (NII) of
$0.16 per share providing second quarter distribution coverage of
90%
- Net Asset Value (NAV) per share
declined 1.2% or $0.09 per share to $7.56 per share on a
quarter-over-quarter basis primarily due to increase in net
unrealized and realized depreciation on legacy assets
- Under our existing share repurchase
program, we repurchased 1,268,684 shares of common stock for $7.9
million, including brokerage commissions, via open market purchases
in the second quarter
- Net leverage of 0.43x was down,
reflecting an increase in prepayment activity. Total liquidity for
portfolio company investments, including cash, was approximately
$280 million, subject to leverage and borrowing base
restrictions
- BCIC Senior Loan Partners increases its
investment capacity from $300 million to $400 million
BlackRock Capital Investment Corporation (NASDAQ:BKCC) (“BCIC”
or the “Company,” “we,” “us” or “our”) announced today that its
Board of Directors declared a quarterly distribution of $0.18 per
share, payable on October 8, 2018 to stockholders of record at the
close of business on September 17, 2018.
“We continued to execute upon our disciplined deployment
strategy in the second quarter, adding two new portfolio companies
to our balance sheet as well as making incremental investments in
four existing portfolio companies including BCIC Senior Loan
Partners (“Senior Loan Partners”). We saw multiple exits during the
quarter driving the decrease in net leverage from 0.56x to 0.43x
quarter-over quarter. Additionally, the reduction in NAV that we
experienced was mainly due to markdowns on certain legacy
investments. Under BlackRock’s management of BCIC, from March 6,
2015 to June 30, 2018, we have deployed $860 million of capital, of
which $290 million has been exited with a realized IRR of 13.8%”
commented James E. Keenan, Chairman and Interim CEO of BlackRock
Capital Investment Corporation.
“In the current market conditions of compressed credit spreads,
higher leverage levels and weaker structures, we remain highly
selective in new investment opportunities and focused on
opportunities with strong underlying credit metrics. Additionally,
our portfolio investments in Senior Loan Partners and Gordon
Brothers Finance Company continue to provide us with exposure to
assets at the top of the capital structure. Senior Loan Partners
upsized its committed equity base as well as refinanced and upsized
its credit facility expanding its investable capacity from $300
million to $400 million.
“Under our existing share repurchase program, during the
quarter, we invested approximately $7.9 million in share
repurchases at an average price of $6.21 per share. With liquidity
at $280 million and no debt maturities until 2022, we have
significant operating flexibility and deployment capacity.”
Financial Highlights
Q2 2018 Q1 2018 Q2 2017
Total Per Total
Per Total Per ($'s in
millions, except per share data) Amount
Share Amount Share
Amount Share Net Investment Income $
11.5 $ 0.16 $ 11.6 $ 0.16 $ 13.9
$
0.19
Net realized and unrealized gains/(losses) $ (5.5 ) $ (0.08 ) $
(12.5 ) $ (0.17 ) $ 3.1 $ 0.04 Deferred taxes $ (1.8 ) $ (0.02 ) —
— — — Basic earnings/(loss) $ 4.2 $ 0.06 $ (0.9 ) $ (0.01 ) $ 17.0
$ 0.23 Distributions declared $ 12.8 $ 0.18 $ 13.2 $ 0.18 $ 13.1 $
0.18 Net Investment Income/(loss), as adjusted1 $ 11.5 $ 0.16 $
11.6 $ 0.16 $ 13.9 $ 0.19
Basic earnings/(loss), as adjusted1
$ 4.2 $ 0.06 $
(0.9 ) $ (0.01 ) $ 17.0 $
0.23
June 30, March
31, December 31, June 30, ($'s
in millions, except per share data)
2018
2018
2017
2017
Total assets $ 800.0 $ 887.1 $ 799.9 $
925.0 Investment portfolio, at fair market value $ 776.3 $
870.1 $ 757.9 $ 893.3 Debt outstanding $ 241.5 $ 310.1 $ 206.7 $
295.5 Total net assets $ 536.6 $ 553.1 $ 571.1 $ 607.5 Net asset
value per share $ 7.56 $ 7.65 $ 7.83 $ 8.33
Net leverage ratio2
0.43x 0.56x 0.32x
0.47x
Business Updates
- Under our existing share repurchase
program, during the second quarter of 2018, 1,268,684 shares were
repurchased for $7.9 million at an average price of $6.21 per
share, including brokerage commissions. The cumulative repurchases
since BlackRock entered into the investment management agreement
with the Company in early 2015 totaled approximately 5.1 million
shares for $38.1 million, representing 75.6% of total share
repurchase activity, on a dollar basis. Since the inception of our
share repurchase program through June 30, 2018, we have purchased
6.8 million shares at an average price of $7.36 per share,
including brokerage commissions, for a total of $50.4 million. In
May 2017, our Board of Directors approved an increase to the
remaining amount of shares authorized to be repurchased to a total
of 2.5 million shares effective July 1, 2017, and an extension to
the plan until the earlier of June 30, 2018 or such time that all
of the authorized shares have been repurchased. In April 2018, our
Board of Directors authorized a total of 2.5 million shares for
repurchase, effective July 1, 2018 until the earlier of June 30,
2019 or until such time that all of the authorized shares have been
repurchased.
- Subsequent to the quarter ended June
30, 2018, Senior Loan Partners, as Servicer, and its wholly-owned
subsidiary BCIC Senior Loan Funding II, LLC (a newly formed
entity), as Borrower, entered into a $270 million Loan and
Servicing Agreement with Morgan Stanley Senior Funding, Inc. acting
as Administrative Agent and The Bank of New York Mellon Trust
Company acting as Collateral Agent. Proceeds from this credit
facility refinanced the outstanding balances under the existing
$200 million credit facility to BCIC Senior Loan Funding, LLC (a
wholly-owned subsidiary of Senior Loan Partners). As previously
disclosed, on April 16, 2018, the Company increased its equity
commitment in Senior Loan Partners from $85.0 million to $113.3
million. Concurrently, Windward Investments LLC, our joint venture
partner, increased their equity commitment in a pro rata manner
from $15.0 million to $20.0 million. With the increase in the size
of equity commitments and the credit facility, the investing
capacity of Senior Loan Partners has increased from $300 million to
approximately $400 million.
_______________________________1 Non-GAAP basis financial
measure. See Supplemental Information on page 8.2 Calculated as the
ratio between (A) debt, excluding unamortized debt issuance costs,
less available cash and receivable for investments sold, and (B)
net asset value.
Portfolio and Investment Activity*
($’s in millions) Three months Three
months Three months ended ended
ended June 30, 2018 March 31,
2018 June 30, 2017 Investment deployments $ 61.3
$ 144.6 $ 22.8 Investment exits $ 152.1 $ 17.2 $ 72.0 Number of
portfolio company investments at the end of period 29 31 34
Weighted average yield of debt and income producing equity
securities, at fair market value 11.5 % 11.3 % 11.3 % % of
Portfolio invested in Secured debt, at fair market value 52 % 59 %
64 % % of Portfolio invested in Unsecured debt, at fair market
value 18 % 16 % 17 % % of Portfolio invested in Equity, at fair
market value 30 % 25 % 19 % Average investment by portfolio
company, at amortized cost (excluding investments below $5.0
million) $ 32.9 $ 33.6 $ 33.0
*balance sheet amounts above are as of
period end
- We deployed $61.3 million during the
quarter while exits of investments totaled $152.1 million,
resulting in a $90.8 million net decrease in our portfolio due to
investment activity.
- Our deployments were primarily
concentrated in two new portfolio company investments, and
incremental investments in four existing portfolio companies:
- $14.0 million funded L+7.50% second
lien term loan to Northstar Financial Services Group, LLC, which is
a leading provider of technology enabled, web based outsourced
practice management solutions serving investment advisors;
- $6.4 million funded and $2.7 million
unfunded, L+8.00% second lien term loan and second lien delayed
draw term loan to Pharmalogic Holdings Corp., which is a leading
independent provider of radiopharmaceuticals with 16 nuclear
pharmacies throughout the United States;
- $17.5 million of incremental equity to
Senior Loan Partners;
- $8.3 million of incremental L+11.00%
unsecured debt to Gordon Brothers Finance Company to fund portfolio
growth;
- $6.2 million of incremental 12.00%
unsubordinated debt and $1.6 million equity investment in First
Boston Construction Holdings, LLC; and
- $5.6 million L+8.00% second lien
delayed draw term loan to Pathway Partners Vet Management Company,
LLC.
- Our repayments were primarily
concentrated in four portfolio company exits, two dispositions and
one partial repayments:
- $32.0 million repayment of Pre-paid
Legal Services, Inc., second lien term loan;
- $25.0 million repayment of Tri-Anim
Health Services, Inc., second lien term loan;
- $20.0 million repayment of JLL Pioneer
Inc., second lien term loan;
- $7.3 million repayment of ECI Cayman
Holdings, LP, limited partnership interest;
- $15.8 million sale at par to a third
party of Bankruptcy Management Solutions, Inc., first lien term
loan;
- $27.2 million and $5.6 million partial
sale at par to a third party (as previously disclosed) of our first
lien term loan and delayed draw term loan, respectively, from St.
George Warehousing & Trucking Co. of California, Inc.; and
- $18.7 million partial repayment of our
Gordon Brothers Finance Company’s unsecured debt.
- Our $92.3 million equity investment in
Senior Loan Partners is generating a yield of approximately 11%.
Senior Loan Partners made investments into three new portfolio
companies and three existing portfolio companies totaling $50.8
million of new capital deployments during the quarter, bringing
committed and outstanding amounts, at par, to $287.2 million and
$264.0 million, respectively, and a total of 22 borrowers. The
three new investments, at par, were (i) a $9.3 million first lien
term loan to New Era Technology, Inc., a provider of managed
services, cloud, collaboration, data networking, and security
solutions, (ii) a $15.0 million first lien term loan to Crown Paper
Group, Inc., an independent, vertically-integrated containerboard
system company, and (iii) a $9.4 million first lien loan to ENC
Holding Corporation, an asset-light logistics platform providing
business process outsourcing services. Additional investments in
existing portfolio companies primarily include (i) additional
investment of $8.0 million in first lien and revolving loans to NSM
Sub Holdings Corp., and (ii) additional investment of $4.5 million
to Accruent, LLC in first lien and delayed draw loans.
- As of June 30, 2018, there was one
non-accrual investment position, representing approximately 0.1%
and 1.8% of total debt and preferred stock investments, at fair
value and cost, respectively, as compared to non-accrual investment
positions of approximately 3.6% and 14.3% of total debt and
preferred stock investments at fair value and cost, respectively,
at December 31, 2017. Our average internal investment rating at
fair market value at June 30, 2018 was 1.23 as compared to 1.24 as
of the prior quarter end.
- During the quarter ended June 30, 2018,
net realized gain was $3.9 million, primarily resulting from a gain
on the sale of ECI Cayman Holdings, LP, partially offset by a loss
relating to our investment in SVP Worldwide Ltd; net unrealized
depreciation increased $9.5 million before deferred taxes,
primarily due to an increase in unrealized depreciation mainly on
certain legacy investments, as well as the reversal of previously
recognized appreciation upon dispositions. For the three months
ended June 30, 2018, unrealized gains in a consolidated taxable
subsidiary resulted in a deferred tax liability of $1.8
million.
Second Quarter Financial Updates
- GAAP net investment income (“NII”) was
$11.5 million, or $0.16 per share, for the three months ended June
30, 2018. Relative to distributions declared of $0.18 per share,
our NII distribution coverage was 90% for the quarter.
- As previously disclosed, our base
management fee rate was reduced from an annual rate of 2.00% of
total assets to 1.75% effective March 7, 2017. For the quarter
ended June 30, 2018, $1.9 million of incentive management fees
based on income was earned by our investment adviser; however, as
previously disclosed, any such fees earned until December 31, 2018
have been waived by our investment adviser. Pursuant to the waiver,
$11.6 million of incentive management fees have been waived on a
cumulative basis. During the quarter, there was no accrual for
incentive management fees based on gains.
- Tax characteristics of all 2017
distributions were reported to stockholders on Form 1099 after the
end of the calendar year. Our 2017 tax distributions of $0.72 per
share were comprised of ordinary income. Our return of capital
distributions totaled $1.96 per share from inception to December
31, 2017. At our discretion, we may carry forward taxable income in
excess of calendar year distributions and pay a 4% excise tax on
this income. We will accrue excise tax on estimated undistributed
taxable income as required. There was no undistributed taxable
income carried forward from 2017. For more information on
distributions, please refer to Section 19 Notices posted within the
Distribution History section of our website, as necessary.
Liquidity and Capital Resources
- At June 30, 2018, we had $7.7 million
in cash and cash equivalents and $271.9 million of availability
under our credit facility, subject to leverage restrictions,
resulting in approximately $279.6 million of availability for
portfolio company investments.
- Net leverage, adjusted for available
cash, receivables for investments sold and unamortized debt
issuance costs, was 0.43x at quarter-end, and our 317% asset
coverage ratio provided the Company with available debt capacity
under its asset coverage requirements of $287.1 million which
exceeds the available amount of $279.6 million for portfolio
company investments. Further, as of quarter-end, 80% of our
portfolio was invested in qualifying assets, exceeding the 70%
regulatory requirement of a business development company.
Conference Call
BlackRock Capital Investment Corporation will host a
webcast/teleconference at 10:00 a.m. (Eastern Time) on Thursday,
August 2, 2018, to discuss its second quarter 2018 financial
results. All interested parties are welcome to participate. You can
access the teleconference by dialing, from the United States, (800)
263-0877, or from outside the United States, +1-646-828-8143,
shortly before 10:00 a.m. and referencing the BlackRock Capital
Investment Corporation Conference Call (ID Number 2195695). A live,
listen-only webcast will also be available via the Investor
Relations section of www.blackrockbkcc.com. Both the teleconference
and webcast will be available for replay by 1:00 p.m. on Thursday,
August 2, 2018 and ending at 1:00 p.m. on Thursday, August 16,
2018. To access the replay of the teleconference, callers from the
United States should dial (888) 203-1112 and callers from outside
the United States should dial +1-719-457-0820 and enter the
Conference ID Number 2195695.
Prior to the webcast/teleconference, an investor presentation
that complements the earnings conference call will be posted to
BlackRock Capital Investment Corporation’s website within the
Presentations section of the Investors page
(http://www.blackrockbkcc.com/news-and-events/disclaimer).
About BlackRock Capital Investment Corporation
BlackRock Capital Investment Corporation is a business
development company that provides debt and equity capital to
middle-market companies.
The Company's investment objective is to generate both current
income and capital appreciation through debt and equity
investments. The Company invests primarily in middle-market
companies in the form of senior and junior secured and unsecured
debt securities and loans, each of which may include an equity
component, and by making direct preferred, common and other equity
investments in such companies.
BlackRock Capital Investment
Corporation
Consolidated Statements of Assets and
Liabilities
(Unaudited)
June 30,
December 31,
2018
2017
Assets Investments at fair value: Non-controlled,
non-affiliated investments (cost of $260,738,061 and $311,938,762)
$ 239,623,756 $ 261,683,202 Non-controlled, affiliated
investments (cost of $140,400,336 and $195,354,637) 171,502,210
215,779,077 Controlled investments (cost of $391,542,064 and
$321,999,526) 365,144,975
280,478,528 Total investments at fair value (cost of
$792,680,461 and $829,292,925) 776,270,941 757,940,807 Cash and
cash equivalents 7,687,958 29,014,645 Receivable for investments
sold 5,366,758 1,344,918 Interest, dividends and fees receivable
7,533,034 8,342,780 Prepaid expenses and other assets
3,118,038 3,236,819 Total Assets $
799,976,729 $ 799,879,969
Liabilities Debt (net of deferred financing costs of
$3,699,350 and $4,209,445) $ 241,522,761 $ 206,661,272 Interest and
credit facility fees payable 549,902 1,820,971 Distributions
payable 12,782,869 13,152,924 Deferred tax liability 1,810,391 —
Base management fees payable 3,850,899 3,734,655 Payable for
investments purchased — 479,297 Accrued administrative services
417,215 114,995 Other accrued expenses and payables
2,461,332 2,815,923 Total Liabilities
263,395,369 228,780,037
Net Assets Common stock, par value $.001 per share,
200,000,000 common shares authorized, 77,861,287 and 77,723,764
issued and 71,015,946 and 72,946,910 outstanding 77,861 77,723
Paid-in capital in excess of par 858,904,233 858,087,822
Undistributed / (Distributions in excess of) net investment income
(16,691,741 ) (13,918,838 ) Accumulated net realized loss on
investments and extinguishment of debt (235,435,820 ) (162,723,790
) Net unrealized (depreciation), net of tax (19,881,331 )
(72,688,483 ) Treasury stock at cost, 6,845,341 and 4,776,854
shares held (50,391,842 ) (37,734,502 )
Total Net Assets 536,581,360
571,099,932 Total Liabilities and Net Assets $
799,976,729 $ 799,879,969 Net Asset Value Per
Share $ 7.56 $ 7.83
BlackRock Capital Investment
Corporation
Consolidated Statements of
Operations
(Unaudited)
Three months Three months
Six months Six months ended ended
ended ended June 30, 2018
June 30, 2017 June 30, 2018 June 30,
2017 Investment Income: Non-controlled, non-affiliated
investments: Cash interest income $ 8,180,538 $ 12,249,128 $
15,324,565 $ 23,533,457 PIK interest income — 1,513,528 — 2,990,916
Cash dividend income — — — 404,781 PIK dividend income — — — 65,943
Fee income 283,501 41,780
748,707 340,677 Total investment
income from non-controlled, non-affiliated investments
8,464,039 13,804,436
16,073,272 27,335,774 Non-controlled,
affiliated investments: Cash interest income 2,908,434 2,522,872
5,123,047 4,987,708 PIK interest income — 918,265 690,960 2,115,110
PIK dividend income 191,126 277,119 380,152 466,145 Fee income
— 63,621 35,000
349,916 Total investment income from
non-controlled, affiliated investments 3,099,560
3,781,877 6,229,159
7,918,879 Controlled investments: Cash
interest income 5,730,772 3,911,550 10,816,477 9,615,537 PIK
interest income 516,747 1,043,953 1,283,213 1,176,434 Cash dividend
income 3,490,425 2,111,151 6,617,286 3,508,502 PIK dividend income
— — 731,516 — Fee income 3,267 —
390,325 25,000 Total
investment income from controlled investments 9,741,211
7,066,654 19,838,817
14,325,473 Other Income —
590,429 —
590,429 Total investment income 21,304,810
25,243,396 42,141,248
50,170,555
Expenses: Base management
fees 3,850,899 4,139,347 7,163,268 8,663,204 Incentive management
fees 1,921,506 2,773,859 3,656,701 3,583,042 Interest and credit
facility fees 3,989,257 5,261,085 7,698,215 9,248,165 Professional
fees 618,756 792,283 1,351,920 1,357,393 Administrative services
417,214 303,782 970,978 631,459 Director fees 178,000 145,249
365,000 317,749 Investment advisor expenses 87,500 87,501 175,000
175,001 Other 625,480 644,853
1,256,217 1,342,988 Total
expenses, before incentive management fee waiver 11,688,612
14,147,959 22,637,299
25,319,001 Incentive management fee
waiver (1,921,506 ) (2,773,859 )
(3,656,701 ) (3,583,042 ) Expenses, net of incentive
management fee waiver 9,767,106
11,374,100 18,980,598
21,735,959
Net Investment Income 11,537,704
13,869,296 23,160,650
28,434,596
Realized and
Unrealized Gain (Loss): Net realized gain (loss):
Non-controlled, non-affiliated investments 3,919,359 8,362
(46,596,597 ) (53,983,599 ) Controlled investments 3,000
— (26,115,432 )
2,375,535 Net realized gain (loss) 3,922,359
8,362 (72,712,029 )
(51,608,064 ) Net change in unrealized appreciation
(depreciation) on: Non-controlled, non-affiliated investments
(14,549,262 ) (2,697,247 ) 29,141,255 54,003,848 Non-controlled,
affiliated investments 13,734,096 6,225,975 15,156,671 3,537,381
Controlled investments (8,511,872 ) (576,287 ) 10,644,672
(3,280,674 ) Foreign currency translation (151,144 )
145,276 (325,055 )
218,571 Net change in unrealized appreciation (depreciation)
(9,478,182 ) 3,097,717
54,617,543 54,479,126 Net realized and
unrealized gain (loss) before taxes (5,555,823 )
3,106,079 (18,094,486 )
2,871,062 Deferred taxes (1,810,391 )
—- (1,810,391 —-
Net realized and unrealized gain (loss) after taxes
(7,366,214 ) 3,106,079
(19,904,877 ) 2,871,062
Net Increase
(Decrease) in Net Assets Resulting from Operations $ 4,171,490
$ 16,975,375 $ 3,255,773
$ 31,305,658 Net Investment Income Per Share—basic $ 0.16
$ 0.19 $ 0.32 $ 0.39
Earnings (Loss) Per Share—basic $ 0.06 $ 0.23
$ 0.05 $ 0.43 Average Shares
Outstanding—basic 71,705,463 72,929,346
72,341,433 72,867,332
Net Investment Income Per Share—diluted $ 0.16
$ 0.19 $ 0.31 $ 0.38 Earnings
(Loss) Per Share—diluted $ 0.06 $ 0.22
$ 0.05 $ 0.42 Average Shares
Outstanding—diluted 88,699,200
86,187,472 89,335,170
84,454,044 Distributions Declared Per Share $ 0.18
$ 0.18 $ 0.36 $ 0.36
Supplemental Information
The Company reports its financial results on a GAAP basis;
however, management believes that evaluating the Company’s ongoing
operating results may be enhanced if investors have additional
non-GAAP basis financial measures. Management reviews non-GAAP
financial measures to assess ongoing operations and, for the
reasons described below, considers them to be effective indicators,
for both management and investors, of the Company’s financial
performance over time. The Company’s management does not advocate
that investors consider such non-GAAP financial measures in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP.
Until March 6, 2017, the Company recorded its liability for
incentive management fees based on income as it became legally
obligated to pay them, based on a hypothetical liquidation at the
end of each reporting period. The Company’s obligation to pay
incentive management fees with respect to any fiscal quarter until
March 6, 2017 was based on a formula that reflects the Company’s
results over a trailing four-fiscal quarter period ending with the
pro-rated period until March 6, 2017. The Company is legally
obligated to pay the amount resulting from the formula less any
cash payments of incentive management fees during the prior three
quarters. The formula’s requirement to reduce the incentive
management fee by amounts paid with respect to such fees in the
prior three quarters caused the Company’s incentive management fee
expense to become concentrated in the fourth quarter of each year.
Management believes that reflecting incentive management fees
throughout the year, as the related investment income is earned, is
an effective measure of the Company’s profitability and financial
performance that facilitates comparison of current results with
historical results and with those of the Company’s peers. The
Company’s “as adjusted” results reflect incentive management fees
based on the formula the Company utilizes for each trailing
four-fiscal quarter period until March 6, 2017, with the formula
applied to each quarter’s incremental earnings and without any
reduction for incentive management fees paid during the prior three
quarters. The resulting amount represents an upper limit of each
quarter’s incremental incentive management fees that the Company
may become legally obligated to pay at the end of the year. Prior
year amounts are estimated in the same manner. These estimates
represent upper limits because, in any calendar year, subsequent
quarters’ investment underperformance could reduce the incentive
management fees payable by the Company with respect to prior
quarters’ operating results. After March 6, 2017, incentive
management fees based on income have been calculated for each
calendar quarter and are paid on a quarterly basis if certain
thresholds are met. The Company records its liability for incentive
management fees based on capital gains by performing a hypothetical
liquidation at the end of each reporting period. The accrual of
this hypothetical capital gains incentive management fee is
required by GAAP, but it should be noted that a fee so calculated
and accrued is not due and payable until the end of the measurement
period, or every June 30. The incremental incentive management fees
disclosed for a given period are not necessarily indicative of
actual full year results. Changes in the economic environment,
financial markets and other parameters used in determining such
estimates could cause actual results to differ and such differences
could be material. In addition, on March 7, 2017, BlackRock
Advisors, in consultation with the Company’s Board of Directors,
agreed to waive incentive fees based on income after March 6,
2017 to December 31, 2018. BCIA has agreed to honor such
waiver. For a more detailed description of the Company’s incentive
management fee, please refer to the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2017, on file with the
Securities and Exchange Commission ("SEC").
Computations for the periods below are derived from the
Company's financial statements as follows:
Three months
Three months
Six months
Six months
ended
ended
ended
ended
June 30, 2018
June 30, 2017
June 30, 2018
June 30, 2017
GAAP Basis: Net Investment Income $
11,537,704
$
13,869,296
$
23,160,650
$
28,434,596
Net Investment Income per share 0.16 0.19 0.32 0.39 Addback: GAAP
incentive management fee expense based on Gains — — — — Addback:
GAAP incentive management fee expense based on Income — — — —
Pre-Incentive Fee1: Net Investment Income $
11,537,704 $ 13,869,296 $ 23,160,650 $ 28,434,596 Net Investment
Income per share 0.16 0.19 0.32 0.39 Less: Incremental incentive
management fee expense based on Income — — — —
As
Adjusted2: Net Investment Income $ 11,537,704 $
13,869,296 $ 23,160,650 $ 28,434,596 Net Investment Income per
share 0.16 0.19
0.32 0.39
Note: The Net Investment Income amounts for the three and six
months ended June 30, 2018 are net of incentive management fees
based on income and a corresponding incentive management fee waiver
in the amounts of $1,921,506 and $3,656,701, respectively. For the
periods shown, there is no difference between the GAAP and as
adjusted figures; however, there may be a difference in future
periods.
1
Pre-Incentive Fee: Amounts are
adjusted to remove all incentive management fees. Such fees are
calculated but not necessarily due and payable at this time.
2
As Adjusted: Amounts are adjusted
to remove the incentive management fee expense based on gains, as
required by GAAP, and to include only the incremental incentive
management fee expense based on Income. Until March 6, 2017, the
incremental incentive management fee was calculated based on the
current quarter's incremental earnings, and without any reduction
for incentive management fees paid during the prior calendar
quarters. After March 6, 2017, incentive management fee expense
based on income has been calculated for each calendar quarter and
may be paid on a quarterly basis if certain thresholds are met.
Amounts reflect the Company's ongoing operating results and reflect
the Company's financial performance over time.
Forward-looking statements
This press release, and other statements that BlackRock Capital
Investment Corporation may make, may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act, with respect to BlackRock Capital Investment
Corporation’s future financial or business performance, strategies
or expectations. Forward-looking statements are typically
identified by words or phrases such as “trend,” “potential,”
“opportunity,” “pipeline,” “believe,” “comfortable,” “expect,”
“anticipate,” “current,” “intention,” “estimate,” “position,”
“assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,”
“seek,” “achieve,” and similar expressions, or future or
conditional verbs such as “will,” “would,” “should,” “could,” “may”
or similar expressions.
BlackRock Capital Investment Corporation cautions that
forward-looking statements are subject to numerous assumptions,
risks and uncertainties, which may change over time.
Forward-looking statements speak only as of the date they are made,
and BlackRock Capital Investment Corporation assumes no duty to and
does not undertake to update forward-looking statements. Actual
results could differ materially from those anticipated in
forward-looking statements and future results could differ
materially from historical performance.
In addition to factors previously disclosed in BlackRock Capital
Investment Corporation’s SEC reports and those identified elsewhere
in this press release, the following factors, among others, could
cause actual results to differ materially from forward-looking
statements or historical performance: (1) our future operating
results; (2) our business prospects and the prospects of our
portfolio companies; (3) the impact of investments that we expect
to make; (4) our contractual arrangements and relationships with
third parties; (5) the dependence of our future success on the
general economy and its impact on the industries in which we
invest; (6) the financial condition of and ability of our current
and prospective portfolio companies to achieve their objectives;
(7) our expected financings and investments; (8) the adequacy of
our cash resources and working capital, including our ability to
obtain continued financing on favorable terms; (9) the timing of
cash flows, if any, from the operations of our portfolio companies;
(10) the impact of increased competition; (11) the ability of our
investment advisor to locate suitable investments for us and to
monitor and administer our investments; (12) potential conflicts of
interest in the allocation of opportunities between us and other
investment funds managed by our investment advisor or its
affiliates; (13) the ability of our investment advisor to attract
and retain highly talented professionals; (14) changes in law and
policy accompanying the new administration and uncertainty pending
any such changes; (15) increased geopolitical unrest, terrorist
attacks or acts of war, which may adversely affect the general
economy, domestic and local financial and capital markets, or the
specific industries of our portfolio companies; (16) changes and
volatility in political, economic or industry conditions, the
interest rate environment, foreign exchange rates or financial and
capital markets; (17) the unfavorable resolution of legal
proceedings; and (18) the impact of changes to tax legislation and,
generally, our tax position.
BlackRock Capital Investment Corporation’s Annual Report on Form
10-K for the year ended December 31, 2017, filed with the SEC
identifies additional factors that can affect forward-looking
statements.
Available Information
BlackRock Capital Investment Corporation’s filings with the SEC,
press releases, earnings releases and other financial information
are available on its website at www.blackrockbkcc.com. The
information contained on our website is not a part of this press
release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180801005728/en/
BlackRock Capital Investment
CorporationInvestors:Nik Singhal,
212-810-5427orPress:Brian Beades, 212-810-5596
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