- GAAP Net Investment Income (NII) of
approximately $0.18 per share providing third quarter distribution
coverage of 98%
- Net Asset Value (NAV) per share
increased 1.3% or $0.10 per share to $7.66 per share on a
quarter-over-quarter basis
- Net leverage of 0.43x remained level
quarter-over-quarter. Total liquidity for portfolio company
investments, including cash, was approximately $233 million,
subject to leverage and borrowing base restrictions
- Under our existing share repurchase
program, we repurchased 108,134 shares of common stock for $0.6
million, including brokerage commissions, via open market purchases
in the third quarter; in October 2018, we repurchased an additional
1,173,289 shares of common stock for $6.8 million, including
brokerage commissions.
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 January 8, 2019 to stockholders of record at the
close of business on December 18, 2018.
“We continued to execute upon our disciplined deployment
strategy in the third quarter, adding one new portfolio company to
our balance sheet as well as making incremental investments in
three existing portfolio companies including Gordon Brothers
Finance Company (“GBFC”) and BCIC Senior Loan Partners (“Senior
Loan Partners”). In addition, we demonstrated further progress on
exiting our legacy non-earning equity exposure. Our common and
preferred equity investments in CB-HDT Holdings were sold at the
previous quarter’s mark. Our goal continues to be to rotate out of
the remaining non-earning legacy equities,” commented James E.
Keenan, Chairman and Interim CEO of BlackRock Capital Investment
Corporation.
“Our NII covered 98% of our distribution for the third quarter
as net investment income increased approximately $1.0 million
compared to the prior quarter. Under BlackRock’s management of
BCIC, from March 6, 2015 to September 30, 2018, we have deployed
$930 million of capital, of which $335 million has been exited with
a realized IRR of 14.0%. 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 GBFC continue to provide us with exposure to
assets at the top of the capital structure.
“Under our existing share repurchase program, during the third
quarter and in October, we invested approximately $7.5 million in
share repurchases at an average price of $5.84 per share. With
liquidity at $233 million and no debt maturities until 2022, we
have significant operating flexibility and deployment
capacity.”
Financial Highlights
Q3 2018
Q2 2018 Q3 2017
Total Per Total Per
Total Per ($'s in millions, except per
share data) Amount
Share Amount Share
Amount Share
Net Investment Income/(loss) $ 12.5 $ 0.18 $ 11.5 $ 0.16 $
12.1 $ 0.17 Net realized and unrealized gains/(losses) $ 7.9 $ 0.11
$ (5.5 ) $ (0.08 ) $ (19.3 ) $ (0.27 ) Deferred taxes $ (0.4 ) $
(0.01 ) $ (1.8 ) $ (0.02 ) $ (5.3 ) $ (0.07 ) Realized losses on
extinguishment of debt — — — — $ (1.3 ) $ (0.02 ) Basic
earnings/(losses) $ 20.0 $ 0.28 $ 4.2 $ 0.06 $ (13.8 ) $ (0.19 )
Distributions declared $ 12.8 $ 0.18 $ 12.8 $ 0.18 $ 13.1 $ 0.18
Net Investment Income/(loss), as adjusted1 $ 12.5 $ 0.18 $ 11.5 $
0.16 $ 12.1 $ 0.17
Basic earnings/(losses), as adjusted1
$ 20.0 $ 0.28 $
4.2 $ 0.06 $ (13.8 ) $ (0.19 )
September 30, June 30, December 31,
September 30, ($'s in millions, except per share
data) 2018
2018 2017 2017
Total assets $ 799.5 $ 800.0 $ 799.9 $ 855.0 Investment
portfolio, at fair market value $ 780.6 $ 776.3 $ 757.9 $ 833.9
Debt outstanding $ 233.0 $ 241.5 $ 206.7 $ 246.1 Total net assets $
543.2 $ 536.6 $ 571.1 $ 581.5 Net asset value per share $ 7.66 $
7.56 $ 7.83 $ 7.96
Net leverage ratio2
0.43x 0.43x 0.32x
0.42x
Business Updates
- Equity investments in CB-HDT Holdings,
Inc. (“Hunter”) were sold during the quarter at the prior quarter
fair value of $15.0 million and $4.8 million for the preferred
stock and common stock previously held, respectively. We continued
to hold unsecured debt in Hunter with 12% PIK interest at September
30, 2018.
- In July 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, 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.
- Under our existing share repurchase
program, during the third quarter of 2018, 108,134 shares were
repurchased for $0.6 million at an average price of $6.00 per
share, including brokerage commissions. In October 2018, we
repurchased an additional 1,173,289 shares of common stock for $6.8
million, including brokerage commissions. The cumulative
repurchases since BlackRock entered into the investment management
agreement with the Company in early 2015 totaled approximately 5.2
million shares for $38.8 million at September 30, 2018,
representing 76% of total share repurchase activity, on a dollar
basis. Since the inception of our share repurchase program through
September 30, 2018, we have purchased 7.0 million shares at an
average price of $7.34 per share, including brokerage commissions,
for a total of $51.0 million. In April 2018, our Board of Directors
authorized an additional 2.5 million shares for repurchase,
effective July 1, 2018 until the earlier of June 30, 2019 or until
such time that all of the authorized shares have been repurchased.
Furthermore, in October 2018, an additional 3 million shares were
authorized for repurchases, effective November 5, 2018 until the
earlier of October 28, 2019 or until such time that all of the
authorized shares have been repurchased.
1 Non-GAAP basis financial measure. See Supplemental
Information on page 7. 2 Calculated as the ratio between (A) debt,
excluding unamortized debt issuance costs, less available cash and
receivable for investments sold, and (B) net asset value.
Portfolio and Investment Activity*
Three
months Three months Three months ($’s in
millions) ended ended ended
September 30, 2018 June 30,
2018 September 30, 2017 Investment
deployments $ 70.7 $ 61.3 $ 34.9 Investment exits $ 74.5 $ 152.1 $
75.7 Number of portfolio company investments at the end of period
28 29 32 Weighted average yield of debt and income producing equity
securities, at fair market value 11.2% 11.5% 10.8% % of Portfolio
invested in Secured debt, at fair market value 49% 52% 59% % of
Portfolio invested in Unsecured debt, at fair market value 21% 18%
17% % of Portfolio invested in Equity, at fair market value 30% 30%
24% Average investment by portfolio company, at amortized cost
(excluding investments below $5.0 million) $
34.1 $ 32.9 $ 34.1
*balance sheet amounts above are as of period end
- We deployed $70.7 million during the
quarter while exits of investments totaled $74.5 million, resulting
in a $3.8 million net decrease in our portfolio due to investment
activity.
- Our deployments were primarily
concentrated in one new portfolio company investment, and
incremental investments in three existing portfolio companies:
- $19.4 million funded L+6.00% first lien
term loan and $10.6 million unfunded delayed draw term loan to
United PF Holdings, LLC, which is a leading fitness club franchisor
with 59 clubs throughout the United States;
- $38.8 million of incremental L+11.00%
unsecured debt as well as $2.5 million of preferred stock to GBFC
to fund portfolio growth;
- $5.4 million incremental L+8.00% second
lien delayed draw term loan to Pathway Partners Vet Management
Company, LLC; and
- $4.2 million of incremental equity to
Senior Loan Partners.
- Our repayments were primarily
concentrated in two portfolio company investment exits, two
dispositions and one partial repayment:
- $27.5 million repayment of Pomeroy
Group, LLC, second lien term loan;
- $7.0 million and $4.0 million repayment
of VetCor Inc.’s first lien term loan and delayed draw term loan,
respectively;
- $15.0 million and $4.8 million sale of
preferred stock and common stock of CB-HDT Holdings, Inc.,
respectively; and
- $15.0 million partial repayment of
unsecured debt in GBFC.
- Our $96.3 million equity investment in
Senior Loan Partners is generating a yield of approximately 11%.
During the third quarter, Senior Loan Partners made investments
into four new portfolio companies and five existing portfolio
companies totaling $67.8 million of new capital deployments,
bringing committed and outstanding amounts, at par, to $313.6
million and $297.7 million, respectively, with a total of 24
borrowers. The four new investments, at par, were (i) a $20.0
million first lien term loan to On Location Events, LLC, a leader
in premium experiential hospitality, (ii) a $15.0 million first
lien term loan to KC Culinarte Intermediate, LLC, a manufacturer of
fresh, clean label soups prepared in refrigerated and frozen
formats, (iii) a $10.6 million first lien term loan and a $1.4
million unfunded delayed draw term loan to PVHC Holding Corp., a
leading provider of pressurized dispensing components including
aerosol container valves and actuators, and (iv) a $7.2 million
first lien term loan and a $0.6 million unfunded delayed draw term
loan to Premise Health Holding Corp., the number one provider of
employer-sponsored onsite health and wellness clinics and
pharmacies in the US.
- As of September 30, 2018, there was one
non-accrual investment position, representing approximately 1.7%
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 September 30, 2018 was 1.31 as compared to
1.23 as of the prior quarter end.
- During the quarter ended September 30,
2018, net realized loss was $2.2 million, primarily resulting from
the sale of common stock investment in CB-HDT Holdings, Inc.,
partially offset by a gain relating to Bankruptcy Management
Solutions, Inc.; net unrealized depreciation decreased $10.1
million before deferred taxes, primarily due to appreciation on our
legacy investments, as well as the reversal of previously
recognized unrealized depreciation due to dispositions. For the
three months ended September 30, 2018, unrealized gains in a
consolidated taxable subsidiary resulted in an increase to our
deferred tax liability of $0.4 million.
Third Quarter Financial Updates
- GAAP net investment income (“NII”) was
$12.5 million, or $0.18 per share, for the three months ended
September 30, 2018. Relative to distributions declared of $0.18 per
share, our NII distribution coverage was 98% 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 September 30, 2018, $2.5 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,
$14.1 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 September 30, 2018, we had $4.5
million in cash and cash equivalents and $228.6 million of
availability under our credit facility, subject to leverage
restrictions, resulting in approximately $233 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 326% asset
coverage ratio provided the Company with available debt capacity
under its asset coverage requirements of $301 million which exceeds
the available amount of $233 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,
November 1, 2018, to discuss its third quarter 2018 financial
results. All interested parties are welcome to participate. You can
access the teleconference by dialing, from the United States, (800)
458-4121, or from outside the United States, +1-323-794-2093,
shortly before 10:00 a.m. and referencing the BlackRock Capital
Investment Corporation Conference Call (ID Number 3376918). 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,
November 1, 2018 and ending at 1:00 p.m. on Thursday, November 15,
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 3376918.
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)
September 30,
2018
December 31,
2017
Assets Investments at
fair value: Non-controlled, non-affiliated investments (cost of
$254,620,448 and $311,938,762) $ 228,781,869 $ 261,683,202
Non-controlled, affiliated investments (cost of $140,570,979 and
$195,354,637) 173,468,776 215,779,077 Controlled investments (cost
of $391,897,996 and $321,999,526) 378,396,463
280,478,528 Total investments at fair value (cost of
$787,089,423 and $829,292,925) 780,647,108 757,940,807 Cash and
cash equivalents 4,462,864 29,014,645 Receivable for investments
sold 1,312,840 1,344,918 Interest, dividends and fees receivable
10,177,605 8,342,780 Prepaid expenses and other assets
2,872,380 3,236,819 Total Assets $
799,472,797 $ 799,879,969
Liabilities
Debt (net of deferred financing costs of $3,463,658 and $4,209,445)
$ 232,959,766 $ 206,661,272 Interest and credit facility fees
payable 2,259,432 1,820,971 Distributions payable 12,782,869
13,152,924 Deferred tax liability 2,220,156 — Base management fees
payable 3,481,000 3,734,655 Payable for investments purchased
311,334 479,297 Accrued administrative services 355,238 114,995
Other accrued expenses and payables 1,948,431
2,815,923 Total Liabilities 256,318,226
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 70,907,812 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 (16,988,281 ) (13,918,838 ) Accumulated
net realized loss on investments and extinguishment of debt
(237,591,277 ) (162,723,790 ) Net unrealized (depreciation), net of
tax (10,207,250 ) (72,688,483 ) Treasury stock at cost, 6,953,475
and 4,776,854 shares held (51,040,715 )
(37,734,502 ) Total Net Assets 543,154,571
571,099,932 Total Liabilities and Net Assets $
799,472,797 $ 799,879,969 Net Asset Value Per
Share $ 7.66 $ 7.83
BlackRock Capital Investment
Corporation
Consolidated Statements of
Operations
(Unaudited)
Three months
Three months Nine months Nine
months ended ended ended ended
September 30, 2018
September 30, 2017 September 30,
2018 September 30, 2017
Investment Income: Non-controlled, non-affiliated
investments: Cash interest income $ 6,355,510 $ 9,312,179 $
21,680,075 $ 32,845,636 PIK interest income 285,387 146,950 285,387
3,137,866 Cash dividend income — — — 404,780 PIK dividend income —
— — 65,944 Fee income 314,103 164,464
1,062,810 505,141
Total investment income from non-controlled, non-affiliated
investments 6,955,000 9,623,593
23,028,272 36,959,367
Non-controlled, affiliated investments: Cash interest income
2,341,479 2,598,036 7,464,526 7,585,744 PIK interest income 719,007
952,864 1,409,967 3,067,974 PIK dividend income 193,227 1,613,379
573,379 2,079,524 Fee income — —
35,000 349,916 Total
investment income from non-controlled, affiliated investments
3,253,713 5,164,279
9,482,872 13,083,158 Controlled
investments: Cash interest income 6,608,904 4,979,940 17,425,381
14,595,478 PIK interest income 191,253 143,484 1,474,466 1,319,917
Cash dividend income 3,678,572 2,849,738 10,295,858 6,358,240 PIK
dividend income — — 731,516 — Fee income 321,463
— 711,788
25,000 Total investment income from controlled investments
10,800,192 7,973,162
30,639,009 22,298,635 Other
Income — — —
590,429 Total investment income
21,008,905 22,761,034
63,150,153 72,931,589
Expenses:
Base management fees 3,481,000 3,993,673 10,644,268 12,656,877
Incentive management fees 2,497,266 1,493,619 6,153,967 5,076,662
Interest and credit facility fees 3,743,694 4,808,533 11,441,909
14,056,698 Professional fees 212,430 323,949 1,564,350 1,681,342
Administrative services 355,238 292,767 1,326,216 924,226 Director
fees 181,000 157,500 546,000 475,249 Investment advisor expenses
87,500 87,504 262,500 262,505 Other 461,711
957,192 1,717,928
2,300,180 Total expenses, before incentive management fee
waiver 11,019,839 12,114,737
33,657,138 37,433,739
Incentive management fee waiver (2,497,266 )
(1,493,619 ) (6,153,967 ) (5,076,662 )
Expenses, net of incentive management fee waiver 8,522,573
10,621,118 27,503,171
32,357,077
Net Investment Income
12,486,332 12,139,916
35,646,982 40,574,512
Realized and Unrealized Gain (Loss): Net realized gain
(loss): Non-controlled, non-affiliated investments 488,772 28,990
(46,107,825 ) (53,954,609 ) Controlled investments
(2,644,230 ) — (28,759,662 )
2,375,535 Net realized gain (loss)
(2,155,458 ) 28,990 (74,867,487
) (51,579,074 ) Net change in unrealized appreciation
(depreciation) on: Non-controlled, non-affiliated investments
(4,724,274 ) (22,325,607 ) 24,416,981 31,678,241 Non-controlled,
affiliated investments 1,795,922 19,838,552 16,952,593 23,375,933
Controlled investments 12,895,555 (17,130,664 ) 23,540,227
(20,411,338 ) Foreign currency translation 116,642
268,222 (208,413 )
486,793 Net change in unrealized appreciation (depreciation)
10,083,845 (19,349,497 )
64,701,388 35,129,629 Net realized and
unrealized gain (loss) before taxes 7,928,387
(19,320,507 ) (10,166,099 )
(16,449,445 ) Deferred taxes (409,765 )
(5,257,916 ) (2,220,156 ) (5,257,916 )
Net realized and unrealized gain (loss) after taxes
7,518,622 (24,578,423 )
(12,386,255 ) (21,707,361 ) Realized losses on
extinguishment of debt — (1,312,719 )
— (1,312,719 )
Net Increase
(Decrease) in Net Assets Resulting from Operations $ 20,004,954
$ (13,751,226 ) $ 23,260,727 $
17,554,432 Net Investment Income Per Share—basic $ 0.18
$ 0.17 $ 0.50 $ 0.56
Earnings (Loss) Per Share—basic $ 0.28 $ (0.19
) $ 0.32 $ 0.24 Average Shares
Outstanding—basic 71,008,615 73,049,648
71,892,278 72,928,772
Net Investment Income Per Share—diluted $ 0.17
$ 0.16 $ 0.48 $ 0.54 Earnings
(Loss) Per Share—diluted $ 0.25 $ (0.19 ) $
0.32 $ 0.24 Average Shares Outstanding—diluted
88,002,352 73,049,648
88,886,015 72,928,772
Distributions Declared Per Share $ 0.18
$ 0.18 $ 0.54 $ 0.54
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
ended
September 30,
2018
Three months
ended
September 30, 2017
Nine months
ended
September 30, 2018
Nine months
ended
September 30, 2017
GAAP Basis: Net Investment Income $ 12,486,332 $ 12,139,916
$ 35,646,982 $ 40,574,512 Net Investment Income per share 0.18 0.17
0.50 0.56 Addback: GAAP incentive management fee expense based on
Gains — — — — Addback: GAAP incentive management fee expense based
on Income — — — — Pre-Incentive Fee1: Net Investment Income $
12,486,332 $ 12,139,916 $ 35,646,982 $ 40,574,512 Net Investment
Income per share 0.18 0.17 0.50 0.56 Less: Incremental incentive
management fee expense based on Income — — — —
As
Adjusted2: Net Investment Income $ 12,486,332 $
12,139,916 $ 35,646,982 $ 40,574,512 Net Investment Income per
share 0.18 0.17
0.50 0.56
Note: The Net Investment Income amounts for the three and nine
months ended September 30, 2018 are net of incentive management
fees based on income and a corresponding incentive management fee
waiver in the amounts of $2,497,266 and $6,153,967, 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/20181031005697/en/
BlackRock Capital Investment
CorporationInvestors:Nik Singhal,
212-810-5427orPress:Brian Beades, 212-810-5596
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