HOUSTON, Aug. 6, 2020 /PRNewswire/ -- Main Street Capital
Corporation (NYSE: MAIN) ("Main Street") is pleased to announce its
financial results for the second quarter of 2020.
Second Quarter 2020 Highlights
- Net investment income of $31.3
million (or $0.48 per
share)
- Distributable net investment income(1) of
$34.1 million (or $0.52 per share)
- Total investment income of $52.0
million
- Industry leading ratio of total non-interest operating expenses
as a percentage of quarterly average total assets ("Operating
Expenses to Assets Ratio") of 1.4% on an annualized basis for the
quarter and 1.2% for the trailing twelve-month ("TTM") period ended
June 30, 2020
- Declared regular monthly dividends totaling $0.615 per share for the third quarter of 2020,
or $0.205 per share for each of July,
August and September 2020, equal to
the regular monthly dividends paid for the third quarter of 2019
and the second quarter of 2020
- Completed $84.6 million in total
lower middle market ("LMM") portfolio investments, including
investments totaling $48.8 million in
a new LMM portfolio company, which after aggregate repayments of
debt principal and return of invested equity capital from several
LMM portfolio investments resulted in a net increase of
$39.9 million in total LMM portfolio
investments
- Fully exited portfolio company debt and equity investments in
IDX Broker, LLC, realizing a gain of $9.3
million, resulting in a total internal rate of return of
15.8% and 1.9 times money invested on a cumulative basis including
all debt and equity investments
- Net increase of $9.0 million in
private loan portfolio investments
- Net decrease of $25.0
million in middle market portfolio investments
- Through the External Investment Manager (as defined below),
entered into a definitive asset purchase agreement under which the
External Investment Manager will become the sole investment adviser
to HMS Income Fund, Inc., a non-listed business development company
("HMS Income"), subject to certain closing conditions
In commenting on Main Street's results, Dwayne L. Hyzak, Main Street's Chief Executive
Officer, stated, "We continue to prioritize the health and
well-being of our employees and the employees of our portfolio
companies, while selectively executing on new investment
opportunities and actively supporting our portfolio companies to
address the issues and opportunities that exist in the current
economic environment. While the economic environment
resulting from the effects of the COVID-19 pandemic continues to be
very challenging, we are pleased that we have continued to have
success with both our lower middle market and private loan
investment activities. We greatly appreciate the efforts of
our employees and the management teams and employees of our
portfolio companies and continue to be very pleased overall with
their efforts and activities since the beginning of the
pandemic. We believe that our conservative capital structure
and significant liquidity position, which we recently enhanced with
our $125 million bond offering, will
continue to allow us to manage through the current challenges and
to successfully execute on the opportunities that exist with our
existing portfolio companies and in our existing pipeline of
attractive lower middle market and private loan investment
opportunities."
Mr. Hyzak added, "We are also very pleased with our recent
announcement of the agreement under which we would become the sole
investment adviser to HMS Income Fund. We believe that this
transition is a natural progression of our historical role with the
fund and we are excited about positioning the fund for the future,
while also executing our overall strategy to grow our asset
management business within our internally managed BDC structure,
and continuing to provide this unique benefit to our Main Street
stakeholders."
Second Quarter 2020 Operating Results
The following table provides a summary of our operating results
for the second quarter of 2020:
|
Three Months Ended
June 30,
|
|
2020
|
|
2019
|
|
Change ($)
|
|
Change (%)
|
|
|
|
|
|
|
|
|
Interest
income
|
$
41,574
|
|
$
47,222
|
|
$
(5,648)
|
|
(12%)
|
Dividend
income
|
7,795
|
|
12,763
|
|
(4,968)
|
|
(39%)
|
Fee income
|
2,638
|
|
1,308
|
|
1,330
|
|
102%
|
Total investment
income
|
$
52,007
|
|
$
61,293
|
|
$
(9,286)
|
|
(15%)
|
|
|
|
|
|
|
|
|
Net investment
income
|
$
31,294
|
|
$
39,617
|
|
$
(8,323)
|
|
(21%)
|
Net investment income
per share
|
$
0.48
|
|
$
0.63
|
|
$
(0.15)
|
|
(24%)
|
|
|
|
|
|
|
|
|
Distributable net
investment income (1)
|
$
34,111
|
|
$
41,995
|
|
$
(7,884)
|
|
(19%)
|
Distributable net
investment income per share (1)
|
$
0.52
|
|
$
0.67
|
|
$
(0.15)
|
|
(22%)
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in net assets resulting from operations
|
$
43,369
|
|
$
38,254
|
|
$
5,115
|
|
13%
|
Net increase
(decrease) in net assets resulting from operations per
share
|
$
0.66
|
|
$
0.61
|
|
$
0.05
|
|
8%
|
|
|
|
|
|
|
|
|
The $9.3 million decrease in total
investment income in the second quarter of 2020 from the comparable
period of the prior year was principally attributable to (i) a
$5.6 million decrease in interest
income, which was primarily due to lower interest rates primarily
resulting from decreases in floating interest rates on investment
portfolio debt investments, based upon the decline in the London
Interbank Offered Rate ("LIBOR"), and (ii) a $5.0 million decrease in dividend income from
investment portfolio equity investments, partially offset by a
$1.3 million increase in fee income.
The $9.3 million decrease in total
investment income in the second quarter of 2020 is net of the
positive impact of a net increase of $0.3
million related to accelerated prepayment, repricing and
other income activity considered less consistent or non-recurring
when compared to the same period in 2019.
Cash operating expenses (total operating expenses excluding
non-cash, share-based compensation expense) decreased to
$17.9 million in the second quarter
of 2020 from $19.3 million for the
corresponding period of 2019. This decrease in cash operating
expenses was principally attributable to (i) a $0.7 million decrease in compensation expense and
(ii) a $0.4 million decrease in
interest expense. The decrease in compensation expense is primarily
related to a $1.7 million decrease in
cash incentive compensation accruals, partially offset by a
$0.7 million increase as a
result of the change in the fair value of our deferred compensation
plan assets. Our Operating Expenses to Assets Ratio was 1.4% in the
second quarter of 2020, which was flat compared to the same period
in 2019, both on an annualized basis.
The $8.3 million decrease in net
investment income and the $7.9
million decrease in distributable net investment income,
which is net investment income before non-cash, share-based
compensation expense, in the second quarter of 2020 were
principally attributable to the decrease in total investment
income, partially offset by lower operating expenses, both as
discussed above.
Net investment income and distributable net investment income on
a per share basis for the second quarter of 2020 both include the
impact of a greater number of average shares outstanding compared
to the corresponding period in 2019 primarily due to (i) shares
issued through our at-the-market, or ATM, program, (ii) shares
issued pursuant to our equity incentive plans and (iii) shares
issued pursuant to our dividend reinvestment plan. The decrease in
net investment income and distributable net investment income on a
per share basis includes a decrease of $0.01 per share due to the change in the fair
value of our deferred compensation plan assets during the second
quarter of 2020 as discussed above.
The $5.1 million increase in
the second quarter of 2020 in the net increase in net assets
resulting from operations from the second quarter of 2019 was
primarily the result of (i) a $10.9
million benefit from the change in the income tax benefit
(provision) and (ii) an $8.3 million
increase in net unrealized appreciation from portfolio investments,
including the impact of accounting reversals relating to realized
gains/income (losses), partially offset by (i) an $8.3 million decrease in net investment income as
discussed above and (ii) a $6.0
million increase in the net realized loss from investments.
The net realized loss from investments of $8.6 million for the second quarter of 2020 was
primarily the result of realized losses of $9.9 million from the exit of three middle market
investments, partially offset by the net realized gain of
$1.6 million resulting from the full
exit of two LMM investments and the partial exit of another LMM
investment.
The following table provides a summary of the total net
unrealized depreciation of $13.2 million for the second quarter of
2020:
|
Three Months Ended
June 30, 2020
|
|
LMM (a)
|
|
Middle
Market
|
|
Private
Loan
|
|
Other
|
|
Total
|
|
|
|
|
|
(dollars in
millions)
|
|
|
|
|
Accounting reversals
of net unrealized (appreciation) depreciation recognized in prior
periods
|
|
|
|
|
|
|
|
|
|
due to net realized
(gains / income) losses recognized during the current
period
|
$
(4.5)
|
|
$
8.2
|
|
$
3.0
|
|
$
-
|
|
$
6.7
|
Net unrealized
appreciation (depreciation) relating to portfolio
investments
|
(16.4)
|
|
8.2
|
|
11.7
|
|
3.0
|
(b)
|
6.5
|
Total net unrealized
appreciation (depreciation) relating to portfolio
investments
|
$ (20.9)
|
|
$
16.4
|
|
$
14.7
|
|
$
3.0
|
|
$
13.2
|
|
|
|
|
|
|
|
|
|
|
Total net unrealized
appreciation
|
|
|
|
|
|
|
|
|
$
13.2
|
|
|
|
|
|
|
|
|
|
|
(a)
|
LMM includes
unrealized appreciation on 20 LMM portfolio investments and
unrealized depreciation on 22 LMM portfolio investments.
|
(b)
|
Other includes (i)
$7.5 million of unrealized appreciation relating to the External
Investment Manager, as defined below and (ii) $0.8 million of
unrealized appreciation relating to our deferred compensation plan,
partially offset by $5.2 million of net unrealized depreciation
relating to the other portfolio.
|
|
|
Liquidity and Capital Resources
As of June 30, 2020, we had
$68.5 million in cash and cash
equivalents, $425.0 million of unused
capacity under our revolving credit facility ("Credit Facility"),
which we maintain to support our investment and operating
activities, and $35.2 million of
remaining Small Business Investment Company ("SBIC") debenture
capacity. In July 2020, we issued an
additional $125.0 million of our
5.20% Notes (as defined below), increasing the unused capacity
under our Credit Facility.
Several details regarding our capital structure as of
June 30, 2020 are as follows:
- Our Credit Facility included $740.0
million in total commitments from a diversified group of
eighteen participating lenders, plus an accordion feature that
allows us to increase the total commitments under the facility to
up to $800.0 million.
- $315.0 million in outstanding
borrowings under our Credit Facility, with an interest rate of 2.0%
based on LIBOR effective for the contractual reset date of
July 1, 2020.
- $314.8 million of outstanding
SBIC debentures through our wholly owned SBIC subsidiaries. These
debentures, which are guaranteed by the U.S. Small Business
Administration, had a weighted-average annual fixed interest rate
of approximately 3.5% and mature ten years from original issuance.
The first maturity related to our SBIC debentures occurs late in
the third quarter of 2020, and the weighted-average remaining
duration was approximately 5.3 years.
- $325.0 million of notes
outstanding that bear interest at a rate of 5.20% per year (the
"5.20% Notes"). The 5.20% Notes mature on May 1, 2024 and may be redeemed in whole or in
part at any time at our option subject to certain make-whole
provisions.
- $185.0 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, 2022 and may be redeemed in whole or
in part at any time at our option subject to certain make-whole
provisions.
- Our net asset value totaled $1,370.9
million, or $20.85 per
share.
Investment Portfolio Information as of June 30, 2020 (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, 2020:
|
As of June 30,
2020
|
|
LMM (a)
|
|
Middle
Market
|
|
Private
Loan
|
|
|
|
(dollars in
millions)
|
|
|
Number of portfolio
companies
|
69
|
|
44
|
|
64
|
Fair value
|
$
1,188.0
|
|
$
410.5
|
|
$
653.8
|
Cost
|
$
1,032.3
|
|
$
516.5
|
|
$
750.7
|
% of portfolio at
cost - debt
|
65.5%
|
|
94.1%
|
|
93.1%
|
% of portfolio at
cost - equity
|
34.5%
|
|
5.9%
|
|
6.9%
|
% of debt investments
at cost secured by first priority lien
|
98.2%
|
|
92.1%
|
|
95.3%
|
Weighted-average
annual effective yield (b)
|
11.6%
|
|
7.7%
|
|
8.7%
|
Average EBITDA
(c)
|
$
5.3
|
|
$
78.1
|
|
$
51.8
|
|
|
|
|
|
|
(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 41%.
|
(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
two LMM portfolio companies, two middle market portfolio companies
and four 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 158% 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 2.7 to 1.0 and a median
total EBITDA to senior interest expense ratio of 2.8 to 1.0.
Including all debt that is junior in priority to our debt position,
these median ratios were 3.0 to 1.0 and 2.7 to 1.0,
respectively.(2) (3)
As of June 30, 2020, we had other
portfolio investments in twelve companies, collectively totaling
$98.1 million in fair value and
$126.4 million in cost basis, which
comprised approximately 4.1% of our investment portfolio at fair
value.
As of June 30, 2020, there was no
cost basis in our investment in our wholly-owned portfolio company
and registered investment advisor that provides investment
management services to third parties (the "External Investment
Manager"), and this investment had a fair value of $69.1 million, which comprised approximately
2.9% of our investment portfolio at fair value.
As of June 30, 2020, we had eleven
investments on non-accrual status, which comprised approximately
1.9% of the total investment portfolio at fair value and
approximately 6.3% at cost. Our total portfolio investments at fair
value were approximately 100% of the related cost basis as of
June 30, 2020.
External Investment Manager
The External Investment Manager is a wholly owned portfolio
company and registered investment advisor that provides investment
management services to third parties. The External Investment
Manager currently maintains an investment sub-advisory relationship
with HMS Income, and earns management fees for the services
provided to HMS Income. During the second quarter of 2020, the
External Investment Manager earned $2.3
million of management fee income from this relationship, and
HMS Income ended the second quarter of 2020 with total assets of
approximately $930.0 million. The
relationship with HMS Income benefited our net investment income by
$2.2 million in the second quarter of
2020 through a $1.8 million reduction
of our operating expenses for expenses we allocated to the External
Investment Manager for services we provided to it and $0.4 million of dividend income we received from
the External Investment Manager.
During the second quarter of 2020, the External Investment
Manager entered into a definitive asset purchase agreement under
which it will become the sole investment adviser and administrator
to HMS Income, subject to certain closing conditions. The parties
expect the transaction to be completed in the fourth quarter of
2020. Following the closing of the transaction, the External
Investment Manager will replace HMS Adviser as the investment
adviser and administrator to HMS Income. The base management fee
rate under the External Investment Manager's proposed new
investment advisory agreement with HMS Income, which has been
unanimously approved by the board of directors of HMS Income, will
be reduced from 2.00% to 1.75%, with no changes to the incentive
fee calculations. The consummation of the transactions contemplated
by the asset purchase agreement is subject to approval of the new
investment advisory agreement by stockholders of HMS Income and
other customary closing conditions. Post-closing, HMS Income is
expected to change its name to MSC Income Fund, Inc.
Second Quarter 2020 Financial Results Conference Call /
Webcast
Main Street has scheduled a conference call for Friday, August 7, 2020 at 10:00 a.m. Eastern Time to discuss the second
quarter 2020 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 14, 2020 and
may be accessed by dialing 201-612-7415 and using the passcode
13706730#. 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 quarter ended
June 30, 2020 to be filed with the
Securities and Exchange Commission (www.sec.gov) and Main Street's
Second Quarter 2020 Investor Presentation to be posted on the
investor relations section of the Main Street website at
http://www.mainstcapital.com.
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.
FORWARD-LOOKING STATEMENTS
Main Street cautions that statements in this press release which
are forward-looking and provide other than historical information,
including but not limited to our and our portfolio companies'
ability to successfully navigate the current economic environment
and the effects of the COVID-19 pandemic along with our ability to
execute on investment opportunities and to consummate the
transaction whereby the External Investment Manager would become
the sole adviser and administrator to HMS Income, are based on
current conditions and information available to Main Street as of
the date hereof 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
be correct. Those forward-looking 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 Main Street's portfolio companies operate; the
potential impacts of the COVID-19 pandemic on the business and
operations, liquidity and access to capital of Main Street and its
portfolio companies, and on the U.S. and global economies,
including public health requirements in response to the pandemic;
changes in laws and regulations or business, political and/or
regulatory conditions that may adversely impact Main Street's
operations or the operations of its portfolio companies; the
operating and financial performance of Main Street's portfolio
companies and their access to capital; 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 Main Street's 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.
Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO,
dhyzak@mainstcapital.com
Brent D. Smith, CFO,
bsmith@mainstcapital.com
713-350-6000
Dennard Lascar Investor
Relations
Ken Dennard / ken@dennardlascar.com
Zach Vaughan /
zvaughan@dennardlascar.com
713-529-6600
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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
INVESTMENT
INCOME:
|
|
|
|
|
|
|
|
Interest, fee and
dividend income:
|
|
|
|
|
|
|
|
Control
investments
|
$
19,327
|
|
$
23,617
|
|
$
38,800
|
|
$
47,308
|
Affiliate investments
|
7,207
|
|
8,346
|
|
15,371
|
|
17,417
|
Non-Control/Non-Affiliate investments
|
25,473
|
|
29,330
|
|
53,985
|
|
57,932
|
Total investment
income
|
52,007
|
|
61,293
|
|
108,156
|
|
122,657
|
EXPENSES:
|
|
|
|
|
|
|
|
Interest
|
(11,898)
|
|
(12,329)
|
|
(24,338)
|
|
(24,245)
|
Compensation
|
(4,802)
|
|
(5,516)
|
|
(7,300)
|
|
(11,585)
|
General and
administrative
|
(3,000)
|
|
(3,160)
|
|
(6,473)
|
|
(6,363)
|
Share-based
compensation
|
(2,817)
|
|
(2,378)
|
|
(5,654)
|
|
(4,707)
|
Expenses allocated to
the External Investment Manager
|
1,804
|
|
1,707
|
|
3,448
|
|
3,350
|
Total
expenses
|
(20,713)
|
|
(21,676)
|
|
(40,317)
|
|
(43,550)
|
NET INVESTMENT
INCOME
|
31,294
|
|
39,617
|
|
67,839
|
|
79,107
|
|
|
|
|
|
|
|
|
NET REALIZED GAIN
(LOSS):
|
|
|
|
|
|
|
|
Control
investments
|
1,606
|
|
(756)
|
|
(19,866)
|
|
(943)
|
Affiliate investments
|
-
|
|
789
|
|
(235)
|
|
(2,452)
|
Non-Control/Non-Affiliate investments
|
(10,190)
|
|
(2,587)
|
|
(10,348)
|
|
(4,892)
|
Realized
loss on extinguishment of debt
|
-
|
|
-
|
|
(534)
|
|
(5,689)
|
Total net realized
loss
|
(8,584)
|
|
(2,554)
|
|
(30,983)
|
|
(13,976)
|
|
|
|
|
|
|
|
|
NET UNREALIZED
APPRECIATION (DEPRECIATION):
|
|
|
|
|
|
|
|
Control
investments
|
(6,825)
|
|
10,137
|
|
(42,235)
|
|
15,083
|
Affiliate investments
|
(8,123)
|
|
(568)
|
|
(29,289)
|
|
1,808
|
Non-Control/Non-Affiliate investments
|
28,112
|
|
(4,712)
|
|
(109,620)
|
|
(810)
|
SBIC
debentures
|
-
|
|
(233)
|
|
460
|
|
4,945
|
Total net unrealized
appreciation (depreciation)
|
13,164
|
|
4,624
|
|
(180,684)
|
|
21,026
|
|
|
|
|
|
|
|
|
INCOME
TAXES:
|
|
|
|
|
|
|
|
Federal and state
income, excise and other taxes
|
(550)
|
|
(963)
|
|
(255)
|
|
(1,665)
|
Deferred
taxes
|
8,045
|
|
(2,470)
|
|
16,015
|
|
(4,837)
|
Income tax benefit
(provision)
|
7,495
|
|
(3,433)
|
|
15,760
|
|
(6,502)
|
|
|
|
|
|
|
|
|
NET INCREASE
(DECREASE) IN NET ASSETS
|
|
|
|
|
|
|
|
RESULTING FROM
OPERATIONS
|
$
43,369
|
|
$
38,254
|
|
$
(128,068)
|
|
$
79,655
|
|
|
|
|
|
|
|
|
NET INVESTMENT
INCOME PER SHARE -
|
|
|
|
|
|
|
|
BASIC AND
DILUTED
|
$
0.48
|
|
$
0.63
|
|
$
1.04
|
|
$
1.27
|
NET INCREASE
(DECREASE) IN NET ASSETS RESULTING
|
|
|
|
|
|
|
|
FROM OPERATIONS
PER SHARE - BASIC AND DILUTED
|
$
0.66
|
|
$
0.61
|
|
$
(1.97)
|
|
$
1.28
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
SHARES OUTSTANDING -
|
|
|
|
|
|
|
|
BASIC AND
DILUTED
|
65,303,580
|
|
62,880,035
|
|
64,920,025
|
|
62,375,166
|
|
|
|
|
|
|
|
|
MAIN STREET
CAPITAL CORPORATION
|
Consolidated
Balance Sheets
|
(dollars in
thousands, except per share amounts)
|
|
|
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Investments at fair
value:
|
|
|
|
Control
investments
|
$
1,008,139
|
|
$
1,032,721
|
Affiliate
investments
|
321,709
|
|
330,287
|
Non-Control/Non-Affiliate investments
|
1,089,705
|
|
1,239,316
|
Total
investments
|
2,419,553
|
|
2,602,324
|
|
|
|
|
Cash and cash
equivalents
|
68,539
|
|
55,246
|
Interest receivable
and other assets
|
48,865
|
|
50,458
|
Receivable for
securities sold
|
5,650
|
|
-
|
Deferred financing
costs, net
|
3,188
|
|
3,521
|
|
|
|
|
|
|
|
|
Total
assets
|
$
2,545,795
|
|
$
2,711,549
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
Credit
facility
|
$
315,000
|
|
$
300,000
|
SBIC debentures (par:
$314,800 ($50,000 due within one year) and $311,800 as of
June 30, 2020
and December 31, 2019, respectively)
|
308,814
|
|
306,188
|
5.20% Notes due 2024
(par: $325,000 as of both June 30, 2020 and December 31,
2019)
|
324,541
|
|
324,595
|
4.50% Notes due 2022
(par: $185,000 as of both June 30, 2020 and December 31,
2019)
|
183,533
|
|
183,229
|
Accounts payable and
other liabilities
|
17,038
|
|
24,532
|
Payable for
securities purchased
|
4,568
|
|
-
|
Interest
payable
|
7,494
|
|
7,292
|
Dividend
payable
|
13,474
|
|
13,174
|
Deferred tax
liability, net
|
389
|
|
16,149
|
|
|
|
|
Total
liabilities
|
1,174,851
|
|
1,175,159
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
ASSETS
|
|
|
|
|
|
|
|
Common
stock
|
658
|
|
643
|
Additional paid-in
capital
|
1,554,928
|
|
1,512,435
|
Total undistributed
(overdistributed) earnings
|
(184,642)
|
|
23,312
|
|
|
|
|
Total net
assets
|
1,370,944
|
|
1,536,390
|
|
|
|
|
Total liabilities and
net assets
|
$
2,545,795
|
|
$
2,711,549
|
|
|
|
|
NET ASSET VALUE
PER SHARE
|
$
20.85
|
|
$
23.91
|
|
|
|
|
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,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net investment
income
|
$
31,294
|
|
$
39,617
|
|
$
67,839
|
|
$
79,107
|
Share-based compensation expense
|
2,817
|
|
2,378
|
|
5,654
|
|
4,707
|
Distributable net
investment income (1)
|
$
34,111
|
|
$
41,995
|
|
$
73,493
|
|
$
83,814
|
|
|
|
|
|
|
|
|
Per share
amounts:
|
|
|
|
|
|
|
|
Net investment income
per share -
|
|
|
|
|
|
|
|
Basic and diluted
|
$
0.48
|
|
$
0.63
|
|
$
1.04
|
|
$
1.27
|
Distributable net
investment income per share -
|
|
|
|
|
|
|
|
Basic and diluted (1)
|
$
0.52
|
|
$
0.67
|
|
$
1.13
|
|
$
1.34
|
|
MAIN STREET CAPITAL
CORPORATION
|
|
Endnotes
|
|
|
(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.
|
|
|
View original
content:http://www.prnewswire.com/news-releases/main-street-announces-second-quarter-2020-results-301108084.html
SOURCE Main Street Capital Corporation