HOUSTON, Aug. 3, 2017 /PRNewswire/ -- Main Street
Capital Corporation (NYSE: MAIN) ("Main Street") announced today
its financial results for the second quarter of 2017.
Second Quarter 2017 Highlights
- Net investment income of $32.7
million (or $0.58 per share),
representing an 18% increase from the second quarter of 2016
- Distributable net investment income(1) of
$35.5 million (or $0.63 per share), representing a 19% increase
from the second quarter of 2016
- Total investment income of $50.3
million, representing a 17% increase from the second quarter
of 2016
- Industry leading ratio of total non-interest operating expenses
as a percentage of quarterly average total assets ("Operating
Expense to Assets Ratio") on an annualized basis of 1.7%, or 1.6%
after excluding the effect of certain non-recurring professional
fees and other expenses
- Generated net realized gains from portfolio company activities
totaling $11.0 million
- Net asset value of $22.62 per share at June 30, 2017, representing an increase of
$0.52 per share, or 2.4%,
compared to $22.10 per share at
December 31, 2016, or an increase of
$0.80 per share, or 3.6%, after
excluding the effect of the semi-annual supplemental cash dividend
paid in June 2017
- Net increase in net assets resulting from operations of
$42.8 million (or $0.76 per share)
- Paid semi-annual supplemental cash dividend of $0.275 per share in June
2017
- Declared regular monthly dividends totaling $0.555 per share for the third quarter of 2017,
or $0.185 per share for each of July,
August and September 2017,
representing a 2.8% increase from the regular monthly dividends
paid for the third quarter of 2016
- Completed $56.1 million in total
lower middle market ("LMM") portfolio investments, including
investments totaling $40.6 million in
three new LMM portfolio companies, which after aggregate repayments
of debt principal and return of invested equity capital from
several LMM portfolio investments resulted in a net increase of
$41.9 million in total LMM portfolio
investments
- Net increase of $55.3
million in middle market portfolio investments
- Net decrease of $4.9 million in
private loan portfolio investments
In commenting on Main Street's results, Vincent D. Foster, Main Street's Chairman and
Chief Executive Officer, stated, "We are pleased with our operating
results for the second quarter of 2017, a quarter during which we
increased our total investment income and our distributable net
investment income per share, both on a sequential basis over the
first quarter of 2017 and over the same period in the prior year,
and generated $11 million of net
realized gains from our investment portfolio. As a result of our
positive performance, we again generated distributable net
investment income per share in excess of our regular monthly
dividends, exceeding the regular monthly dividends paid during the
quarter by over 13%. In addition, we also generated a net increase
in net assets from operations of $0.76 per share, which represented an annualized
return on equity for the quarter in excess of 13%."
Second Quarter 2017 Operating Results
The following table provides a summary of our operating results
for the second quarter of 2017:
|
Three Months Ended
June 30,
|
|
2017
|
|
2016
|
|
Change ($)
|
|
Change (%)
|
|
(dollars in
thousands, except per share amounts)
|
Interest
income
|
$
|
39,065
|
|
$
|
33,419
|
|
$
|
5,646
|
|
17%
|
Dividend
income
|
8,128
|
|
7,735
|
|
393
|
|
5%
|
Fee income
|
3,078
|
|
1,711
|
|
1,367
|
|
80%
|
Income from
marketable securities and idle funds
|
-
|
|
37
|
|
(37)
|
|
(100%)
|
Total investment
income
|
$
|
50,271
|
|
$
|
42,902
|
|
$
|
7,369
|
|
17%
|
|
|
|
|
|
|
|
|
Net investment
income
|
$
|
32,693
|
|
$
|
27,648
|
|
$
|
5,045
|
|
18%
|
Net investment income
per share
|
$
|
0.58
|
|
$
|
0.54
|
|
$
|
0.04
|
|
7%
|
|
|
|
|
|
|
|
|
Distributable net
investment income (1)
|
$
|
35,491
|
|
$
|
29,899
|
|
$
|
5,592
|
|
19%
|
Distributable net
investment income per share (1)
|
$
|
0.63
|
|
$
|
0.58
|
|
$
|
0.05
|
|
9%
|
|
|
|
|
|
|
|
|
Net increase in net
assets resulting from operations
|
$
|
42,829
|
|
$
|
30,911
|
|
$
|
11,918
|
|
39%
|
Net increase in net
assets resulting from operations per share
|
$
|
0.76
|
|
$
|
0.60
|
|
$
|
0.16
|
|
27%
|
|
|
|
|
|
|
|
|
The $7.4 million increase in total
investment income in the second quarter of 2017 from the comparable
period of the prior year was principally attributable to (i) a
$5.6 million increase in
interest income primarily related to higher average levels of
portfolio debt investments and increased activities involving
existing investment portfolio debt investments, (ii) a
$1.4 million increase in fee
income, and (iii) a $0.4 million
increase in dividend income from investment portfolio equity
investments. The $7.4 million
increase in total investment income in the second quarter of 2017
includes an increase of $2.5 million related to higher accelerated
prepayment, repricing and other activity for certain middle market
and private loan investment portfolio debt investments when
compared to the same period in 2016.
Cash operating expenses (total operating expenses excluding
non-cash, share-based compensation expense) increased to
$14.8 million in the second quarter
of 2017 from $13.0 million for the
corresponding period of 2016. This comparable period increase in
cash operating expenses was principally attributable to (i) a
$0.9 million increase in general
and administrative expenses, including approximately $0.3 million related to non‑recurring
professional fees and other expenses incurred on certain potential
new portfolio investment opportunities which were terminated during
the due diligence and legal documentation processes, (ii) a
$0.6 million increase in
compensation expense related to increases in the number of
personnel, base compensation levels and incentive compensation
accruals and (iii) a $0.5 million increase in interest expense,
primarily due to the higher average interest rate and balance
outstanding on our long-term revolving credit facility ("Credit
Facility") in the second quarter of 2017, with these increases
partially offset by a $0.3 million increase in the expenses
allocated to our external investment manager, a wholly owned
portfolio company and registered investment advisor that provides
investment management services to third parties (the "External
Investment Manager"), in each case when compared to the same period
in the prior year. Excluding the effect of the non-recurring
professional fees and other expenses, our Operating Expense to
Assets Ratio was 1.6% on an annualized basis for the second quarter
of 2017, compared to 1.4% on an annualized basis for the
second quarter of 2016 and 1.5% for the year ended December 31, 2016. Including the effect of the
non-recurring expenses, the ratio for the second quarter of 2017
was 1.7% on an annualized basis.
The $5.6 million increase in
distributable net investment income, which is net investment income
before non-cash, share-based compensation expense, was primarily
due to the higher level of total investment income, partially
offset by higher operating expenses as discussed
above.(1) Distributable net investment income on a per
share basis for the second quarter of 2017 reflects (i) an
increase of approximately $0.04 per
share from the comparable period in 2016 attributable to the net
increase in the comparable levels of accelerated prepayment,
repricing and other activity for certain investment portfolio debt
investments and (ii) a greater number of average shares
outstanding compared to the corresponding period in 2016 primarily
due to shares issued through our at-the-market, or ATM, program,
shares issued pursuant to our equity incentive plans and shares
issued pursuant to our dividend reinvestment plan.
The $11.9 million change in
the net increase in net assets resulting from operations was
primarily the result of (i) an $11.9 million improvement in net change in
unrealized appreciation (depreciation) from portfolio investments,
including the impact of accounting reversals relating to realized
gains/income (losses), from net unrealized depreciation of
$10.6 million for the second
quarter of 2016 to net unrealized appreciation of $1.3 million for the second quarter of 2017
and (ii) a $5.0 million
increase in net investment income as discussed above, with these
increases partially offset by (i) a $4.5 million decrease in the net realized
gain from investments to a total net realized gain for the second
quarter of 2017 of $11.0 million and
(ii) a $0.4 million
increase in the income tax provision. The net realized gain from
investments of $11.0 million for
the second quarter of 2017 was primarily the result of
(i) realized gains of $6.8 million due to activity in our other
portfolio, (ii) the realized gain of $2.4 million on the exit of a LMM
investment, (iii) the realized gain of $1.4 million on the partial exit of a LMM
investment and (iv) realized gains of $0.6 million due to activity in our middle market
portfolio.
The following table provides a summary of the total net
unrealized appreciation of $1.3 million for the second quarter of
2017:
|
Three Months Ended
June 30, 2017
|
|
LMM (a)
|
|
Middle
Market
|
|
Private
Loan
|
|
Other (b)
|
|
Total
|
|
(dollars in
millions)
|
Accounting reversals
of net unrealized appreciation recognized in prior periods
due
|
|
|
|
|
|
|
|
|
|
to net realized
gains/income (losses) recognized during the current
period
|
$
(3.0)
|
|
$
(0.5)
|
|
$
(0.7)
|
|
$
(6.4)
|
|
$ (10.6)
|
Net unrealized
appreciation (depreciation) relating to portfolio
investments
|
5.0
|
|
(1.7)
|
|
0.4
|
|
8.2
|
|
11.9
|
Total net change in
unrealized appreciation (depreciation) relating to portfolio
investments
|
$
2.0
|
|
$
(2.2)
|
|
$
(0.3)
|
|
$
1.8
|
|
$
1.3
|
|
|
|
|
|
|
|
|
|
|
Unrealized
depreciation relating to SBIC debentures (c)
|
|
|
|
|
|
|
|
|
-
|
Total net change in
unrealized appreciation
|
|
|
|
|
|
|
|
|
$
1.3
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
LMM includes
unrealized appreciation on 20 LMM portfolio investments and
unrealized depreciation on 17 LMM portfolio investments.
|
|
(b)
|
Other includes $4.6
million of net unrealized appreciation relating to our other
portfolio and $3.6 million of unrealized appreciation relating to
the External Investment Manager.
|
|
(c)
|
Relates to unrealized
depreciation on the Small Business Investment Company ("SBIC")
debentures held by Main Street Capital II, LP which are accounted
for on a fair value basis.
|
|
|
|
The income tax provision for the second quarter of 2017 of
$2.2 million principally
consisted of a deferred tax provision of $1.7 million, which is primarily the result
of the net activity relating to our portfolio investments held in
our taxable subsidiaries, including changes in net operating loss
carryforwards, changes in net unrealized appreciation/depreciation
and other temporary book‑tax differences, and other current tax
expense of $0.4 million related
to (i) a $0.2 million
accrual for excise tax on our estimated undistributed taxable
income and (ii) other current tax expense of $0.2 million related to accruals for U.S.
federal and state income taxes.
Liquidity and Capital Resources
As of June 30, 2017, we had
$21.8 million in cash and cash
equivalents and $252.0 million of
unused capacity under our Credit Facility, which we maintain to
support our investment and operating activities.
Several details regarding our capital structure as of
June 30, 2017 are as follows:
- Our Credit Facility included $555.0
million in total commitments from a diversified group of
fourteen participating lenders, plus an accordion feature which
allows us to increase the total commitments under the facility to
up to $750.0 million.
- $303.0 million in outstanding
borrowings under our Credit Facility, bearing interest at an annual
interest rate of 2.9%.
- $261.2 million of outstanding
SBIC debentures through our three wholly owned SBIC subsidiaries,
with $88.8 million of remaining
capacity under the permitted maximum amount of SBIC debentures of
$350.0 million. These debentures,
which are guaranteed by the U.S. Small Business Administration, had
a weighted-average annual fixed interest rate of approximately 3.7%
and mature ten years from original issuance. The first maturity
related to our SBIC debentures occurs in 2019, and the
weighted-average remaining duration was approximately 5.8
years.
- $175.0 million of notes
outstanding that bear interest at a rate of 4.50% per year (the
"4.50% Notes"). The 4.50% Notes mature on December 1, 2019 and may be redeemed in whole or
in part at any time at our option subject to certain make-whole
provisions.
- $90.7 million of notes
outstanding that bear interest at a rate of 6.125% per year (the
"6.125% Notes"). The 6.125% Notes mature on April 1, 2023, and may be redeemed in whole or in
part at our option on or after April 1,
2018. The 6.125% Notes are listed on the New York Stock
Exchange and trade under the symbol "MSCA."
- Our net asset value totaled $1,282.7
million, or $22.62 per
share.
Investment Portfolio Information as of June 30, 2017 (2)
The following table provides a summary of the investments in our
LMM portfolio, middle market portfolio and private loan portfolio
as of June 30, 2017:
|
As of June 30,
2017
|
|
LMM (a)
|
|
Middle
Market
|
|
Private
Loan
|
|
(dollars in
millions)
|
Number of portfolio
companies
|
75
|
|
68
|
|
49
|
Fair value
|
$
932.1
|
|
$
624.1
|
|
$
379.8
|
Cost
|
$
815.0
|
|
$
646.3
|
|
$
399.6
|
% of portfolio at
cost - debt
|
68.3%
|
|
96.7%
|
|
93.3%
|
% of portfolio at
cost - equity
|
31.7%
|
|
3.3%
|
|
6.7%
|
% of debt investments
at cost secured by first priority lien
|
95.9%
|
|
90.2%
|
|
90.1%
|
Weighted-average
annual effective yield (b)
|
12.0%
|
|
8.8%
|
|
9.5%
|
Average EBITDA
(c)
|
$
4.8
|
|
$
92.9
|
|
$
22.3
|
|
|
|
|
|
|
|
(a)
|
We had equity
ownership in 99% of our LMM portfolio companies, and the average
fully diluted equity ownership in those portfolio companies was
approximately 37%.
|
|
(b)
|
The weighted-average
annual effective yields were computed using the effective interest
rates for all debt investments at cost, including amortization of
deferred debt origination fees and accretion of original issue
discount but excluding fees payable upon repayment of the debt
instruments and any debt investments on non-accrual
status.
|
|
(c)
|
The average EBITDA is
calculated using a simple average for the LMM portfolio and a
weighted-average for the middle market and private loan portfolios.
These calculations exclude certain portfolio companies, including
five LMM portfolio companies, two middle market portfolio companies
and three private loan portfolio companies, as EBITDA is not a
meaningful valuation metric for our investments in these portfolio
companies, and those portfolio companies whose primary purpose is
to own real estate.
|
|
|
|
The fair value of our LMM portfolio company equity investments
was approximately 163% 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 3.1 to 1.0 and a median
total EBITDA to senior interest expense ratio of 2.6 to 1.0.
Including all debt that is junior in priority to our debt position,
these median ratios were 3.2 to 1.0 and 2.4 to 1.0,
respectively.(2) (3) Based upon our internal
investment rating system, with a rating of "1" being the highest
and a rating of "5" being the lowest, and with all new investments
initially rated a "3", the weighted-average investment rating for
our total LMM investment portfolio was 2.4 as of June 30, 2017 and 2.3 as of December 31, 2016.
As of June 30, 2017, we had other
portfolio investments in ten companies, collectively totaling
$103.9 million in fair value and
$111.3 million in cost basis, which
comprised approximately 5.0% of our investment portfolio at fair
value.
As of June 30, 2017, there was no
cost basis in our investment in the External Investment Manager and
this investment had a fair value of $37.1 million, which comprised approximately
1.8% of our investment portfolio at fair value.
As of June 30, 2017, we had five
investments on non-accrual status, which comprised approximately
0.2% of the total investment portfolio at fair value and
approximately 2.6% of its cost. Our total portfolio investments at
fair value were approximately 105% of the related cost basis as of
June 30, 2017.
External Investment Manager
The External Investment Manager maintains an investment
sub-advisory relationship with HMS Income Fund, Inc., a non-listed
business development company ("HMS Income"), and earns management
fees for the services provided to HMS Income. During the second
quarter of 2017, the External Investment Manager generated
$2.7 million of fee income from this
relationship, and HMS Income ended the second quarter of 2017 with
total assets of approximately $1.1
billion. The relationship with HMS Income benefited our net
investment income by $2.4 million in
the second quarter of 2017 through a $1.6
million reduction of our operating expenses for expenses we
allocated to the External Investment Manager for services we
provided to it and $0.7 million of
dividend income we received from the External Investment
Manager.
Second Quarter 2017 Financial Results Conference Call /
Webcast
Main Street has scheduled a conference call for Friday, August 4, 2017 at 10:00 a.m. Eastern Time to discuss the second
quarter 2017 financial results.
You may access the conference call by dialing 412-902-0030 at
least 10 minutes prior to the start time. The conference call can
also be accessed via a simultaneous webcast by logging into the
investor relations section of the Main Street web site at
http://www.mainstcapital.com.
A telephonic replay of the conference call will be available
through Friday, August 11, 2017 and
may be accessed by dialing 201-612-7415 and using the passcode
13666550#. An audio archive of the conference call will also be
available on the investor relations section of the company's
website at http://www.mainstcapital.com shortly after the call and
will be accessible for approximately 90 days.
For a more detailed discussion of the financial and other
information included in this press release, please refer to the
Main Street Quarterly Report on Form 10-Q for the quarterly period
ended June 30, 2017 to be filed with
the Securities and Exchange Commission (www.sec.gov) and Main
Street's Second Quarter 2017 Investor Presentation to be posted on
the investor relations section of the Main Street website at
http://www.mainstcapital.com.
(1) Distributable net
investment income is net investment income as determined in
accordance with U.S. Generally Accepted Accounting Principles, or
U.S. GAAP, excluding the impact of share-based compensation expense
which is non-cash in nature. Main Street believes presenting
distributable net investment income and the related per share
amount is useful and appropriate supplemental disclosure for
analyzing its financial performance since share-based compensation
does not require settlement in cash. However, distributable net
investment income is a non-U.S. GAAP measure and should not be
considered as a replacement for net investment income and other
earnings measures presented in accordance with U.S. GAAP. Instead,
distributable net investment income should be reviewed only in
connection with such U.S. GAAP measures in analyzing Main Street's
financial performance. A reconciliation of net investment income in
accordance with U.S. GAAP to distributable net investment income is
detailed in the financial tables included with this press
release.
|
|
(2) Portfolio company
financial information has not been independently verified by Main
Street.
|
|
(3) These credit statistics
exclude certain portfolio companies for which EBITDA is not a
meaningful metric for the statistic.
|
|
ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment
firm that primarily provides long-term debt and equity capital to
lower middle market companies and debt capital to middle market
companies. Main Street's portfolio investments are typically made
to support management buyouts, recapitalizations, growth
financings, refinancings and acquisitions of companies that operate
in diverse industry sectors. Main Street seeks to partner with
entrepreneurs, business owners and management teams and generally
provides "one stop" financing alternatives within its lower middle
market portfolio. Main Street's lower middle market companies
generally have annual revenues between $10
million and $150 million. Main Street's middle market debt
investments are made in businesses that are generally larger in
size than its lower middle market portfolio companies.
Main Street's common stock trades on the New York Stock Exchange
("NYSE") under the symbol "MAIN." In addition, Main Street has
outstanding 6.125% Notes due 2023, which trade on the NYSE under
the symbol "MSCA."
FORWARD-LOOKING STATEMENTS
Main Street cautions that statements in this press release which
are forward‑looking and provide other than historical information
involve risks and uncertainties that may impact its future results
of operations. The forward‑looking statements in this press release
are based on current conditions and include statements regarding
Main Street's goals, beliefs, strategies and future operating
results and cash flows. Although its management believes that the
expectations reflected in those forward‑looking statements are
reasonable, Main Street can give no assurance that those
expectations will prove to have been correct. Those statements are
made based on various underlying assumptions and are subject to
numerous uncertainties and risks, including, without limitation:
Main Street's continued effectiveness in raising, investing and
managing capital; adverse changes in the economy generally or in
the industries in which its portfolio companies operate; changes in
laws and regulations that may adversely impact its operations or
the operations of one or more of its portfolio companies; the
operating and financial performance of its portfolio companies;
retention of key investment personnel; competitive factors; and
such other factors described under the captions "Cautionary
Statement Concerning Forward Looking Statements" and "Risk Factors"
included in its filings with the Securities and Exchange Commission
(www.sec.gov). Main Street undertakes no obligation to update the
information contained herein to reflect subsequently occurring
events or circumstances, except as required by applicable
securities laws and regulations.
MAIN STREET
CAPITAL CORPORATION
|
Consolidated
Statements of Operations
|
(dollars in
thousands, except shares and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
INVESTMENT
INCOME:
|
|
|
|
|
|
|
|
Interest, fee and
dividend income:
|
|
|
|
|
|
|
|
Control
investments
|
$
14,590
|
|
$
12,957
|
|
$
27,576
|
|
$
25,572
|
Affiliate investments
|
9,568
|
|
8,952
|
|
19,468
|
|
17,476
|
Non-Control/Non-Affiliate investments
|
26,113
|
|
20,956
|
|
51,116
|
|
41,693
|
Interest, fee and
dividend income
|
50,271
|
|
42,865
|
|
98,160
|
|
84,741
|
Interest, fee and
dividend income from marketable
|
|
|
|
|
|
|
|
securities and idle funds investments
|
-
|
|
37
|
|
-
|
|
168
|
Total investment
income
|
50,271
|
|
42,902
|
|
98,160
|
|
84,909
|
EXPENSES:
|
|
|
|
|
|
|
|
Interest
|
(8,793)
|
|
(8,255)
|
|
(17,400)
|
|
(16,437)
|
Compensation
|
(4,555)
|
|
(3,952)
|
|
(8,985)
|
|
(7,772)
|
General and
administrative
|
(3,060)
|
|
(2,157)
|
|
(6,000)
|
|
(4,562)
|
Share-based
compensation
|
(2,798)
|
|
(2,251)
|
|
(5,067)
|
|
(3,840)
|
Expenses allocated to
the External Investment Manager
|
1,628
|
|
1,361
|
|
3,152
|
|
2,515
|
Total
expenses
|
(17,578)
|
|
(15,254)
|
|
(34,300)
|
|
(30,096)
|
NET INVESTMENT
INCOME
|
32,693
|
|
27,648
|
|
63,860
|
|
54,813
|
|
|
|
|
|
|
|
|
NET REALIZED GAIN
(LOSS):
|
|
|
|
|
|
|
|
Control
investments
|
3,789
|
|
-
|
|
3,108
|
|
14,358
|
Affiliate investments
|
(115)
|
|
28,707
|
|
22,816
|
|
28,707
|
Non-Control/Non-Affiliate investments
|
7,307
|
|
(13,237)
|
|
12,625
|
|
(12,419)
|
Marketable securities and idle funds investments
|
-
|
|
(13)
|
|
-
|
|
(1,586)
|
SBIC
debentures
|
-
|
|
-
|
|
(5,217)
|
|
-
|
Total net realized
gain
|
10,981
|
|
15,457
|
|
33,332
|
|
29,060
|
|
|
|
|
|
|
|
|
NET CHANGE IN
UNREALIZED
|
|
|
|
|
|
|
|
APPRECIATION
(DEPRECIATION):
|
|
|
|
|
|
|
|
Portfolio investments
|
1,365
|
|
(10,585)
|
|
(20,726)
|
|
(38,114)
|
Marketable securities and idle funds investments
|
-
|
|
37
|
|
-
|
|
1,494
|
SBIC
debentures
|
(36)
|
|
127
|
|
5,629
|
|
(19)
|
Total net change in
unrealized appreciation (depreciation)
|
1,329
|
|
(10,421)
|
|
(15,097)
|
|
(36,639)
|
|
|
|
|
|
|
|
|
INCOME
TAXES:
|
|
|
|
|
|
|
|
Federal and state
income, excise and other taxes
|
(438)
|
|
(1,098)
|
|
(1,690)
|
|
(1,468)
|
Deferred
taxes
|
(1,736)
|
|
(675)
|
|
(6,122)
|
|
1,958
|
Income tax benefit
(provision)
|
(2,174)
|
|
(1,773)
|
|
(7,812)
|
|
490
|
|
|
|
|
|
|
|
|
NET INCREASE IN
NET ASSETS
|
|
|
|
|
|
|
|
RESULTING
FROM OPERATIONS
|
$
42,829
|
|
$
30,911
|
|
$
74,283
|
|
$
47,724
|
|
|
|
|
|
|
|
|
NET INVESTMENT
INCOME PER SHARE -
|
|
|
|
|
|
|
|
BASIC AND
DILUTED
|
$
0.58
|
|
$
0.54
|
|
$
1.15
|
|
$
1.07
|
NET INCREASE IN
NET ASSETS RESULTING FROM
|
|
|
|
|
|
|
|
OPERATIONS
PER SHARE - BASIC AND DILUTED
|
$
0.76
|
|
$
0.60
|
|
$
1.33
|
|
$
0.94
|
|
|
|
|
|
|
|
|
DIVIDENDS PAID PER
SHARE:
|
|
|
|
|
|
|
|
Regular monthly
dividends
|
$
0.555
|
|
$
0.540
|
|
$
1.110
|
|
$
1.080
|
Supplemental
dividends
|
0.275
|
|
0.275
|
|
0.275
|
|
0.275
|
Total
dividends
|
$
0.830
|
|
$
0.815
|
|
$
1.385
|
|
$
1.355
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING -
|
|
|
|
|
|
|
|
BASIC AND
DILUTED
|
56,166,782
|
|
51,441,371
|
|
55,648,854
|
|
50,995,575
|
|
|
|
|
|
|
|
|
MAIN STREET
CAPITAL CORPORATION
|
Consolidated
Balance Sheets
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
June 30,
2017
|
|
December 31,
2016
|
ASSETS
|
(Unaudited)
|
|
|
|
|
|
|
Portfolio investments
at fair value:
|
|
|
|
Control
investments
|
$
671,713
|
|
$
594,282
|
Affiliate
investments
|
368,488
|
|
375,948
|
Non-Control/Non-Affiliate investments
|
1,036,745
|
|
1,026,676
|
Total
investments
|
2,076,946
|
|
1,996,906
|
|
|
|
|
Cash and cash
equivalents
|
21,799
|
|
24,480
|
Interest receivable
and other assets
|
34,897
|
|
35,133
|
Receivable for
securities sold
|
23,851
|
|
1,990
|
Deferred financing
costs, net
|
4,222
|
|
4,718
|
Deferred tax asset,
net
|
3,003
|
|
9,125
|
|
|
|
|
|
|
|
|
Total
assets
|
$
2,164,718
|
|
$
2,072,352
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Credit
facility
|
$
303,000
|
|
$
343,000
|
SBIC debentures (par:
$261,200 and $240,000 as of June 30, 2017 and December 31,
2016, respectively)
|
255,663
|
|
235,686
|
4.50% Notes (par:
$175,000 as of both June 30, 2017 and December 31, 2016)
|
173,254
|
|
172,893
|
6.125% Notes (par:
$90,655 as of both June 30, 2017 and December 31, 2016)
|
88,905
|
|
88,752
|
Accounts payable and
other liabilities
|
10,821
|
|
14,205
|
Payable for
securities purchased
|
36,032
|
|
2,184
|
Interest
payable
|
3,814
|
|
4,103
|
Dividend
payable
|
10,484
|
|
10,048
|
|
|
|
|
Total
liabilities
|
881,973
|
|
870,871
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
ASSETS
|
|
|
|
|
|
|
|
Common
stock
|
567
|
|
543
|
Additional paid-in
capital
|
1,228,185
|
|
1,143,883
|
Accumulated net
investment income, net of cumulative dividends
|
22,751
|
|
19,033
|
Accumulated net
realized gain from investments, net of cumulative
dividends
|
(42,758)
|
|
(58,887)
|
Net unrealized
appreciation, net of income taxes
|
74,000
|
|
96,909
|
|
|
|
|
Total net
assets
|
1,282,745
|
|
1,201,481
|
|
|
|
|
Total liabilities and
net assets
|
$
2,164,718
|
|
$
2,072,352
|
|
|
|
|
NET ASSET VALUE
PER SHARE
|
$
22.62
|
|
$
22.10
|
|
|
|
|
MAIN STREET
CAPITAL CORPORATION
|
Reconciliation of
Distributable Net Investment Income
|
(dollars in
thousands, except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net investment
income
|
$
32,693
|
|
$
27,648
|
|
$
63,860
|
|
$
54,813
|
Share-based compensation expense
|
2,798
|
|
2,251
|
|
5,067
|
|
3,840
|
Distributable net
investment income (1)
|
$
35,491
|
|
$
29,899
|
|
$
68,927
|
|
$
58,653
|
|
|
|
|
|
|
|
|
Per share
amounts:
|
|
|
|
|
|
|
|
Net investment income
per share -
|
|
|
|
|
|
|
|
Basic and diluted
|
$
0.58
|
|
$
0.54
|
|
$
1.15
|
|
$
1.07
|
Distributable net
investment income (1) per share -
|
|
|
|
|
|
|
|
Basic and diluted
|
$
0.63
|
|
$
0.58
|
|
$
1.24
|
|
$
1.15
|
|
(1)
|
Distributable net
investment income is net investment income, as determined in
accordance with U.S. GAAP, excluding the impact of share-based
compensation expense which is non-cash in nature. Main Street
believes presenting distributable net investment income and the
related per share amount is useful and appropriate supplemental
disclosure of information for analyzing its financial performance
since share-based compensation does not require settlement in cash.
However, distributable net investment income is a non-U.S. GAAP
measure and should not be considered as a replacement for net
investment income and other earnings measures presented in
accordance with U.S. GAAP. Instead, distributable net investment
income should be reviewed only in connection with such U.S. GAAP
measures in analyzing Main Street's financial performance. A
reconciliation of net investment income in accordance with U.S.
GAAP to distributable net investment income is presented in the
table above.
|
|
|
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, President &
COO, dhyzak@mainstcapital.com
Brent D. Smith, CFO,
bsmith@mainstcapital.com
713-350-6000
Dennard - Lascar Associates
Ken Dennard /
ken@dennardlascar.com
Mark Roberson /
mroberson@dennardlascar.com
713-529-6600
View original
content:http://www.prnewswire.com/news-releases/main-street-announces-second-quarter-2017-financial-results-300499219.html
SOURCE Main Street Capital Corporation