SuRo Capital Corp. (“SuRo Capital”, the
“Company”, “we”, “us”, and “our”) (Nasdaq:
SSSS) today announced its financial results for
the quarter ended March 31, 2022. Net assets totaled approximately
$380.7 million, or $12.22 per share, at March 31, 2022, inclusive
of $0.11 per share in dividends declared during the first quarter,
as compared to $11.72 per share at December 31, 2021 and $18.01 per
share at March 31, 2021.
“Despite significant declines and volatility in
the public markets during the quarter, SuRo Capital achieved its
highest dividend-adjusted NAV per share,” said Mark Klein, Chairman
and Chief Executive Officer of SuRo Capital.
Mr. Klein added, “As we have consistently
demonstrated, SuRo Capital is committed to initiatives that enhance
shareholder value and we believe the market is currently
undervaluing our portfolio. Accordingly, in March, our Board of
Directors authorized an additional $15.0 million for share
repurchases. Since that increase, we have repurchased over 580,000
shares for approximately $5.0 million. Given the significant
discount at which our stock is trading compared to net asset value,
coupled with the extreme market volatility, we determined the
current continuation of the Share Repurchase Program to be an
efficient and accretive deployment of capital.”
Mr. Klein concluded, “Due to the ongoing
dislocation in the private and public markets, we continued to take
a more conservative approach to both deploying capital and exiting
public investments. While we continue to see consistently strong
deal flow, we maintain a steady focus on making compelling
investments in high-growth companies at appropriate valuations.
With over $170.0 million of investable funds, we believe we are
advantageously positioned to deploy our capital as the public
markets continue to reprice.”
Investment Portfolio as of March 31,
2022
At March 31, 2022, SuRo Capital held positions
in 38 portfolio companies with an aggregate fair value of
approximately $280.8 million. The Company’s top five portfolio
company investments accounted for approximately 63% of the total
portfolio at fair value as of March 31, 2022.
Top Five Investments as of March 31,
2022
Portfolio Company ($ in millions) |
Cost Basis |
Fair Value |
% of Total Portfolio |
Course Hero, Inc. |
$ |
15.0 |
$ |
76.8 |
27.4 |
% |
Forge Global, Inc. |
|
2.5 |
|
62.7 |
22.3 |
|
Blink Health, Inc. |
|
15.0 |
|
13.8 |
4.9 |
|
Aspiration Partners, Inc. |
|
1.3 |
|
11.5 |
4.1 |
|
Stormwind, LLC |
|
6.4 |
|
11.5 |
4.1 |
|
Total |
$ |
40.2 |
$ |
176.3 |
62.8 |
% |
__________________
Note: Total may not sum due to rounding.
First Quarter 2022 Investment Portfolio
Activity
During the three months ended March 31, 2022,
SuRo Capital exited or received proceeds from the following
investments:
Portfolio Company |
TransactionDate |
SharesSold |
Average NetShare
Price(1) |
NetProceeds |
RealizedGain(2) |
NewLake Capital Partners, Inc.(3) |
Various |
27,352 |
$27.76 |
$0.8 million |
$0.2 million |
Rover Group, Inc.(4) |
1/31/2022 |
42,744 |
$6.52 |
$0.3 million |
$0.2 million |
Residential Homes For Rent,
LLC (d/b/a Second Avenue)(5) |
Various |
N/A |
N/A |
$0.3 million |
$- |
__________________
(1) The average net share price is the net share
price realized after deducting all commissions and fees on the
sale(s), if applicable.(2) Realized gain does not include
adjustments to amounts held in escrow receivable.(3) As of March
31, 2022, SuRo Capital held 251,119 remaining NewLake Capital
Partners, Inc. common shares.(4) As of March 31, 2022, SuRo Capital
held 795,637 remaining Rover Group, Inc. common shares.(5) During
the three months ended March 31, 2022, approximately $0.3 million
was received from Residential Homes for Rent, LLC (d/b/a Second
Avenue) related to the 15% term loan due December 23, 2023. Of the
proceeds received, approximately $0.2 million repaid a portion of
the outstanding principal and the remaining was attributed to
interest.Subsequent to quarter-end through May 4, 2022, SuRo
Capital funded the following follow-on investment:
Portfolio Company |
Investment |
Transaction Date |
Amount |
Shogun Enterprises, Inc. |
Convertible Note |
5/2/2022 |
$0.5 million |
Subsequent to quarter-end through May 4, 2022,
SuRo Capital exited or received proceeds from the following
investments:
Portfolio Company |
TransactionDate |
SharesSold |
Average NetShare
Price(1) |
Net Proceeds |
RealizedGain |
Rover Group, Inc.(2) |
Various |
179,977 |
$6.13 |
$1.1 million |
$0.6 million |
Residential Homes For Rent,
LLC (d/b/a Second Avenue)(3) |
4/22/2022 |
N/A |
N/A |
$0.1 million |
$- |
__________________
(1) The average net share price is the net share
price realized after deducting all commissions and fees on the
sale(s), if applicable. (2) As of May 4, 2022, SuRo Capital held
615,660 remaining Rover Group, Inc. common shares.(3) Subsequent to
March 31, 2022, $0.1 million was received from Residential Homes
for Rent, LLC (d/b/a Second Avenue) related to the 15% term loan
due December 23, 2023. Of the proceeds received, $0.1 million
repaid a portion of the outstanding principal and the remaining
proceeds were attributed to interest.First Quarter 2022
Financial Results
|
Quarter EndedMarch 31, 2022 |
Quarter EndedMarch 31, 2021 |
$ in
millions |
per share(1) |
$ in millions |
per share(1) |
|
|
|
|
|
Net investment loss |
$ |
(4.2 |
) |
$ |
(0.14 |
) |
$ |
(2.8 |
) |
$ |
(0.14 |
) |
|
|
|
|
|
Net realized gain on
investments |
|
3.1 |
|
|
0.10 |
|
|
112.2 |
|
|
5.47 |
|
|
|
|
|
|
Net change in unrealized
appreciation/(depreciation) of investments |
|
21.6 |
|
|
0.69 |
|
|
(1.3 |
) |
|
(0.06 |
) |
|
|
|
|
|
Net change in net assets
resulting from operations – basic(2) |
$ |
20.5 |
|
$ |
0.66 |
|
$ |
108.0 |
|
$ |
5.27 |
|
|
|
|
|
|
Dividends declared |
|
(3.4 |
) |
|
(0.11 |
) |
|
(11.0 |
) |
|
(0.50 |
) |
|
|
|
|
|
Issuance of common stock from
public offering |
|
0.2 |
|
|
0.01 |
|
|
- |
|
|
- |
|
|
|
|
|
|
Issuance of common stock from
conversion of 4.75% Convertible Notesdue 2023 |
|
- |
|
|
- |
|
|
37.3 |
|
|
(1.91 |
) |
|
|
|
|
|
Repurchase of common stock |
|
(1.4 |
) |
|
(0.06 |
) |
|
- |
|
|
- |
|
|
|
|
|
|
Stock-based compensation |
|
(0.0 |
) |
|
0.01 |
|
|
0.1 |
|
|
0.01 |
|
|
|
|
|
|
Increase/(decrease) in net asset value(2) |
$ |
15.9 |
|
$ |
0.50 |
|
$ |
134.4 |
|
$ |
2.87 |
|
__________________(1) Based on weighted-average number of shares
outstanding for the relevant period.(2) Totals may not sum due to
rounding.
Weighted-average common basic shares outstanding
were approximately 31.2 million and 20.5 million for the quarters
ended March 31, 2022 and 2021, respectively. As of March 31, 2022,
there were 31,164,443 shares of the Company’s common stock
outstanding.
SuRo Capital’s liquid assets were approximately
$189.6 million as of March 31, 2022, consisting of cash and
securities of publicly traded portfolio companies not subject to
lock-up restrictions at quarter end.
2022 Dividend Declarations
On March 8, 2022, SuRo Capital’s Board of
Directors declared a dividend of $0.11 per share, paid in cash on
April 15, 2022, to the Company’s common stockholders of record as
of the close of business on March 25, 2022.
Share Repurchase Program
Since inception of the Share Repurchase Program
in August 2017, SuRo Capital has repurchased over 5.4 million
shares of its common stock for an aggregate purchase price of
approximately $35.3 million.
On March 13, 2022, the Company’s Board of
Directors authorized a $15 million expansion of the Share
Repurchase Program to $55.0 million. Through March 31, 2022, under
the Share Repurchase Program, the Company repurchased 153,517
shares of its common stock for approximately $1.4 million.
Subsequent to quarter end, the Company repurchased 431,134 shares
of its common stock for approximately $3.7 million. The dollar
value of shares that may yet be purchased by the Company under the
Share Repurchase Program is approximately $19.6 million. The Share
Repurchase Program is authorized through October 31, 2022.
Under the Share Repurchase Program, the Company
may repurchase its outstanding common stock in the open market
provided it complies with the prohibitions under its insider
trading policies and procedures and the applicable provisions of
the Investment Company Act of 1940, as amended, and the Securities
Exchange Act of 1934, as amended.
Conference Call and Webcast
Management will hold a conference call and
webcast for investors at 2:00 p.m. PT (5:00 p.m. ET). The
conference call access number for U.S. participants is
323-701-0160, and the conference call access number for
participants outside the U.S. is 800-289-0720. The conference ID
number for both access numbers is 5586089. Additionally, interested
parties can listen to a live webcast of the call from the "Investor
Relations" section of SuRo Capital’s website at www.surocap.com. An
archived replay of the webcast will also be available for 12 months
following the live presentation.
A replay of the conference call may be accessed
until 5:00 p.m. PT (8:00 p.m. ET) on May 11, 2022 by dialing
888-203-1112 (U.S.) or +1 719-457-0820 (International) and using
conference ID number 5586089.
Forward-Looking Statements
Statements included herein, including statements
regarding SuRo Capital's beliefs, expectations, intentions, or
strategies for the future, may constitute "forward-looking
statements". SuRo Capital cautions you that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
or implied in these statements. All forward-looking statements
involve a number of risks and uncertainties, including the impact
of the COVID-19 pandemic and any market volatility that may be
detrimental to our business, our portfolio companies, our industry,
and the global economy, that could cause actual results to differ
materially from the plans, intentions, and expectations reflected
in or suggested by the forward-looking statements. Risk factors,
cautionary statements, and other conditions which could cause SuRo
Capital's actual results to differ from management's current
expectations are contained in SuRo Capital's filings with the
Securities and Exchange Commission. SuRo Capital undertakes no
obligation to update any forward-looking statement to reflect
events or circumstances that may arise after the date of this press
release.
About SuRo Capital Corp.
SuRo Capital Corp. (Nasdaq: SSSS) is a publicly
traded investment fund that seeks to invest in high-growth,
venture-backed private companies. The fund seeks to create a
portfolio of high-growth emerging private companies via a
repeatable and disciplined investment approach, as well as to
provide investors with access to such companies through its
publicly traded common stock. SuRo Capital is headquartered in New
York, NY and has offices in San Francisco, CA. Connect with the
company on Twitter, LinkedIn, and at www.surocap.com.
Contact
SuRo Capital Corp.(212)
931-6331IR@surocap.com
Media Contact
Bill DouglassGotham Communications,
LLCCommunications@surocap.com
|
|
|
|
|
|
|
|
|
March 31, 2022 |
|
December 31, 2021 |
ASSETS |
|
|
|
Investments at fair
value: |
|
|
|
Non-controlled/non-affiliate investments (cost of $145,417,242 and
$146,360,300, respectively) |
$ |
252,569,218 |
|
|
$ |
231,768,290 |
|
Non-controlled/affiliate
investments (cost of $41,211,183 and $41,211,183,
respectively) |
|
14,319,986 |
|
|
|
14,609,089 |
|
Controlled investments (cost
of $19,883,894 and $19,883,894, respectively) |
|
13,888,874 |
|
|
|
13,758,874 |
|
Total Investments (cost of
$206,512,319 and $207,455,377, respectively) |
|
280,778,078 |
|
|
|
260,136,253 |
|
Cash |
|
172,839,141 |
|
|
|
198,437,078 |
|
Proceeds receivable |
|
— |
|
|
|
52,493 |
|
Escrow proceeds
receivable |
|
4,577,518 |
|
|
|
2,046,645 |
|
Interest and dividends
receivable |
|
87,815 |
|
|
|
83,655 |
|
Deferred financing costs |
|
606,607 |
|
|
|
621,719 |
|
Prepaid expenses and other
assets(1) |
|
790,211 |
|
|
|
937,984 |
|
Total Assets |
|
459,679,370 |
|
|
|
462,315,827 |
|
LIABILITIES |
|
|
|
Accounts payable and accrued
expenses(1) |
|
1,649,388 |
|
|
|
875,047 |
|
Accrued interest payable |
|
— |
|
|
|
175,000 |
|
Dividends payable |
|
3,751,013 |
|
|
|
23,390,048 |
|
Payable for securities
purchased |
|
460,048 |
|
|
|
— |
|
6.00% Notes due December 30,
2026(2) |
|
73,117,394 |
|
|
|
73,029,108 |
|
Total Liabilities |
|
78,977,843 |
|
|
|
97,469,203 |
|
|
|
|
|
Net
Assets |
$ |
380,701,527 |
|
|
$ |
364,846,624 |
|
NET
ASSETS |
|
|
|
Common stock, par value $0.01 per share (100,000,000 authorized;
31,164,443 and 31,118,556 issued and outstanding,
respectively) |
$ |
311,644 |
|
|
$ |
311,185 |
|
Paid-in capital in excess of
par |
|
348,919,222 |
|
|
|
350,079,409 |
|
Accumulated net investment
loss |
|
(54,349,302 |
) |
|
|
(50,124,597 |
) |
Accumulated net realized gain
on investments, net of distributions |
|
11,554,193 |
|
|
|
11,899,742 |
|
Accumulated net unrealized
appreciation of investments |
|
74,265,770 |
|
|
|
52,680,885 |
|
Net Assets |
$ |
380,701,527 |
|
|
$ |
364,846,624 |
|
Net Asset Value Per Share |
$ |
12.22 |
|
|
$ |
11.72 |
|
__________________________________________________
(1) This balance includes a right of use asset
and corresponding operating lease liability, respectively. (2) As
of March 31, 2022, the 6.00% Notes due December 30, 2026 (effective
interest rate of 6.53%) had a face value $75,000,000. As of
December 31, 2021, the 6.00% Notes due December 30, 2026 (effective
interest rate of 6.13%) had a face value $75,000,000.
|
|
|
|
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
INVESTMENT
INCOME |
|
|
|
Non-controlled/non-affiliate
investments: |
|
|
|
Interest income |
$ |
162,455 |
|
|
$ |
166,845 |
|
Dividend income |
|
130,645 |
|
|
|
21,875 |
|
Non-controlled/affiliate
investments: |
|
|
|
Dividend income |
|
— |
|
|
|
102,632 |
|
Controlled investments: |
|
|
|
Interest income |
|
290,000 |
|
|
|
— |
|
Total Investment Income |
|
583,100 |
|
|
|
291,352 |
|
OPERATING
EXPENSES |
|
|
|
Compensation expense |
|
1,860,702 |
|
|
|
1,293,310 |
|
Directors’ fees |
|
160,565 |
|
|
|
111,250 |
|
Professional fees |
|
1,272,713 |
|
|
|
973,159 |
|
Interest expense |
|
1,200,786 |
|
|
|
504,793 |
|
Income tax expense |
|
2,050 |
|
|
|
2,025 |
|
Other expenses |
|
310,989 |
|
|
|
241,133 |
|
Total Operating Expenses |
|
4,807,805 |
|
|
|
3,125,670 |
|
Net Investment Loss |
|
(4,224,705 |
) |
|
|
(2,834,318 |
) |
Realized Gain on
Investments: |
|
|
|
Non-controlled/non-affiliated
investments |
|
3,096,275 |
|
|
|
112,152,518 |
|
Net Realized Gain on Investments |
|
3,096,275 |
|
|
|
112,152,518 |
|
Change in Unrealized
Appreciation/(Depreciation) of Investments: |
|
|
|
Non-controlled/non-affiliated
investments |
|
21,743,987 |
|
|
|
(3,265,307 |
) |
Non-controlled/affiliate
investments |
|
(289,102 |
) |
|
|
1,844,470 |
|
Controlled investments |
|
130,000 |
|
|
|
105,000 |
|
Net Change in Unrealized Appreciation/(Depreciation) of
Investments |
|
21,584,885 |
|
|
|
(1,315,837 |
) |
Net Change in Net Assets Resulting from
Operations |
$ |
20,456,455 |
|
|
$ |
108,002,363 |
|
Net Change in Net Assets Resulting from Operations per
Common Share: |
|
|
|
Basic |
$ |
0.66 |
|
|
$ |
5.27 |
|
Diluted(1) |
$ |
0.66 |
|
|
$ |
4.50 |
|
Weighted-Average
Common Shares Outstanding |
|
|
|
Basic |
|
31,228,046 |
|
|
|
20,486,621 |
|
Diluted(1) |
|
31,228,046 |
|
|
|
24,123,339 |
|
__________________(1) As of March 31, 2022,
there were no potentially dilutive securities outstanding.
|
|
|
|
|
Three Months Ended March 31, |
|
|
2022 |
|
|
|
2021 |
|
Per Basic Share
Data |
|
|
|
Net asset value at beginning
of the year |
$ |
11.72 |
|
|
$ |
15.14 |
|
Net investment loss(1) |
|
(0.14 |
) |
|
|
(0.14 |
) |
Net realized gain on investments(1) |
|
0.10 |
|
|
|
5.47 |
|
Net change in unrealized appreciation/(depreciation) of
investments(1) |
|
0.69 |
|
|
|
(0.06 |
) |
Dividends declared |
|
(0.11 |
) |
|
|
(0.50 |
) |
Issuance of common stock from public offering(1) |
|
0.01 |
|
|
|
— |
|
Issuance of common stock from conversion of 4.75% Convertible Notes
due 2023(1) |
|
— |
|
|
|
(1.91 |
) |
Repurchase of common stock(1) |
|
(0.06 |
) |
|
|
— |
|
Stock-based compensation(1) |
|
0.01 |
|
|
|
0.01 |
|
Net asset value at end of
period |
$ |
12.22 |
|
|
$ |
18.01 |
|
Per share market value at end
of period |
$ |
8.63 |
|
|
$ |
13.55 |
|
Total return based on market
value(2) |
|
(31.72 |
)% |
|
|
7.28 |
% |
Total return based on net
asset value(2) |
|
5.03 |
% |
|
|
18.96 |
% |
Shares outstanding at end of
period |
|
31,164,443 |
|
|
|
24,205,216 |
|
Ratios/Supplemental
Data: |
|
|
|
Net assets at end of
period |
$ |
380,701,527 |
|
|
$ |
435,961,621 |
|
Average net assets |
$ |
364,015,960 |
|
|
$ |
312,796,110 |
|
Ratio of gross operating
expenses to average net assets(3) |
|
5.39 |
% |
|
|
4.05 |
% |
Ratio of net operating
expenses to average net assets(3) |
|
5.39 |
% |
|
|
4.05 |
% |
Ratio of net investment loss
to average net assets(3) |
|
(4.73 |
)% |
|
|
(3.67 |
)% |
Portfolio Turnover Ratio |
|
— |
% |
|
|
3.41 |
% |
__________________
(1) Based on weighted-average number of shares
outstanding for the relevant period.(2) Total return based on
market value is based upon the change in market price per share
between the opening and ending market values per share in the
period, adjusted for dividends and equity issuances. Total return
based on net asset value is based upon the change in net asset
value per share between the opening and ending net asset values per
share in the period, adjusted for dividends and equity issuances.
(3) Because the ratios are calculated for the Company’s common
stock taken as a whole, an individual investor’s ratios may vary
from these ratios.
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