Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the
“Company”), a provider of customized debt and equity financing
solutions, primarily to lower middle-market companies based in the
United States, today announced its financial results for the fourth
quarter and full year ended December 31, 2022.
Fourth Quarter 2022 Financial Highlights
- Total investment income of $27.5 million
- Net investment income of $12.5 million, or $0.51 per share
- Adjusted net investment income of $12.6 million, or $0.51 per
share(1)
- Invested $65.9 million in debt and equity securities, including
four new portfolio companies
- Received proceeds from repayments and realizations of $65.7
million
- Paid total dividends of $0.61 per share: regular quarterly
dividend of $0.36, supplemental dividends of $0.15, and special
dividend of $0.10 per share on December 16, 2022
- Net asset value (“NAV”) of $480.3 million, or $19.43 per share,
as of December 31, 2022
Full Year 2022 Financial Highlights
- Total investment income of $94.1 million
- Net investment income of $46.5 million, or $1.90 per share
- Adjusted net investment income of $46.1 million, or $1.88 per
share(1)
- Invested $333.8 million in debt and equity securities,
including 19 new portfolio companies
- Received proceeds from repayments and realizations of $194.0
million
- Paid total dividends of $2.00 per share: regular quarterly
dividends totaling $1.44, supplemental dividends of $0.46, and
special dividends of $0.10 per share
- Announced a deemed distribution of $1.65 per share to
shareholders of record as of December 31, 2022
- Estimated spillover income (or taxable income in excess of
distributions) as of December 31, 2022 of $40.0 million, or
$1.62 per share
Management Commentary
“During 2022 we continued to redeploy proceeds
from equity monetizations into income producing assets, growing our
debt portfolio 38% and building our total portfolio on a fair value
basis to a record $860.3 million. With the enhanced earnings power
of our portfolio, we are positioned to increase adjusted NII well
in excess of our now higher base dividend. In addition, our
portfolio remains healthy and well-structured to generate
risk-adjusted returns and preserve capital over the long term,”
said Edward Ross, Chairman and CEO of Fidus Investment
Corporation.
(1) Supplemental information
regarding adjusted net investment income:
On a supplemental basis, we provide information
relating to adjusted net investment income, which is a non-GAAP
measure. This measure is provided in addition to, but not as a
substitute for, net investment income. Adjusted net investment
income represents net investment income excluding any capital gains
incentive fee expense or (reversal) attributable to realized and
unrealized gains and losses. The management agreement with our
investment adviser provides that a capital gains incentive fee is
determined and paid annually with respect to cumulative realized
capital gains (but not unrealized capital gains) to the extent such
realized capital gains exceed realized and unrealized losses. In
addition, we accrue, but do not pay, a capital gains incentive fee
in connection with any unrealized capital appreciation, as
appropriate. As such, we believe that adjusted net investment
income is a useful indicator of operations exclusive of any capital
gains incentive fee expense or (reversal) attributable to realized
and unrealized gains and losses. The presentation of this
additional information is not meant to be considered in isolation
or as a substitute for financial results prepared in accordance
with GAAP. Reconciliations of net investment income to adjusted net
investment income are set forth in Schedule 1.
Fourth Quarter 2022 Financial Results
The following table provides a summary of our
operating results for the three months ended December 31,
2022, as compared to the same period in 2021 (dollars in thousands,
except per share data):
|
|
Three Months Ended December 31, |
|
|
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
$ Change |
|
|
% Change |
|
Interest income |
|
$ |
24,379 |
|
|
$ |
18,290 |
|
|
$ |
6,089 |
|
|
|
33.3 |
% |
Payment-in-kind interest income |
|
|
336 |
|
|
|
962 |
|
|
|
(626 |
) |
|
|
(65.1 |
%) |
Dividend
income |
|
|
204 |
|
|
|
1,258 |
|
|
|
(1,054 |
) |
|
|
(83.8 |
%) |
Fee
income |
|
|
2,033 |
|
|
|
3,590 |
|
|
|
(1,557 |
) |
|
|
(43.4 |
%) |
Interest
on idle funds |
|
|
522 |
|
|
|
1 |
|
|
|
521 |
|
|
|
52100.0 |
% |
Total
investment income |
|
$ |
27,474 |
|
|
$ |
24,101 |
|
|
$ |
3,373 |
|
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
$ |
12,484 |
|
|
$ |
2,448 |
|
|
$ |
10,036 |
|
|
|
410.0 |
% |
Net
investment income per share |
|
$ |
0.51 |
|
|
$ |
0.10 |
|
|
$ |
0.41 |
|
|
|
410.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net investment income(1) |
|
$ |
12,645 |
|
|
$ |
12,006 |
|
|
$ |
639 |
|
|
|
5.3 |
% |
Adjusted
net investment income per share(1) |
|
$ |
0.51 |
|
|
$ |
0.49 |
|
|
$ |
0.02 |
|
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in net assets resulting from operations |
|
$ |
4,723 |
|
|
$ |
50,238 |
|
|
$ |
(45,515 |
) |
|
|
(90.6 |
%) |
Net
increase (decrease) in net assets resulting from operations per
share |
|
$ |
0.19 |
|
|
$ |
2.06 |
|
|
$ |
(1.87 |
) |
|
|
(90.8 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The $3.4 million increase in total investment
income for the three months ended December 31, 2022, as
compared to the same period in 2021 was primarily attributable to
(i) a $5.5 million increase in total interest income (which
includes payment-in-kind interest income) resulting from an
increase in average debt investment balances outstanding and an
increase in weighted average yield on debt investment balances
outstanding, (ii) a $1.1 million decrease in dividend income due to
decreased levels of distributions received from equity investments,
and (iii) a $1.6 million decrease in fee income resulting from a
decrease in origination and amendment fees, partially offset by an
increase in prepayment fees.
For the three months ended December 31,
2022, total expenses, including the base management fee waivers and
income tax provision, were $15.0 million, a decrease of $6.7
million, or (30.8%) from the $21.7 million of total expenses,
including the base management fee waiver and income tax provision,
for the three months ended December 31, 2021. The decrease was
primarily attributable to (i) a $0.2 million increase in interest
and financing expenses, (ii) a $0.6 million net increase in base
management fee, including the base management fee waiver, due to
higher average total assets, (iii) a $0.4 million net increase in
the income incentive fee and a $9.4 million decrease in capital
gains incentive fee accrued, (iv) a $0.5 million increase in
professional fees, and (v) a $0.9 million increase in excise tax
provision.
Net investment income increased by $10.1
million, or 410.0%, to $12.5 million during the three months ended
December 31, 2022 as compared to the same period in 2021, as a
result of the $6.7 million decrease in total expenses, including
base management fee waiver and income tax provision and the $3.4
million increase in total investment income. Adjusted net
investment income,(1) which excludes the capital gains incentive
fee accrual, was $0.51 per share compared to $0.49 per share in the
prior year.
For the three months ended December 31,
2022, the total net realized gain/(loss) on investments, net of
income tax (provision)/benefit on realized gains and income tax
(provision) from deemed distribution of long term capital gains,
was $(9.9) million, as compared to total net realized gain/(loss)
on investments, net of income tax (provision)/benefit on realized
gains and income tax (provision) from deemed distribution of long
term capital gains, of $39.9 million for the same period in
2021.
Full Year 2022 Financial Results The following
table provides a summary of our operating results for the year
ended December 31, 2022 as compared to the same period in 2021
(dollars in thousands, except per share data):
|
|
Years Ended December 31, |
|
|
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
$ Change |
|
|
% Change |
|
Interest income |
|
$ |
82,344 |
|
|
$ |
73,078 |
|
|
$ |
9,266 |
|
|
|
12.7 |
% |
Payment-in-kind interest income |
|
|
1,663 |
|
|
|
4,294 |
|
|
|
(2,631 |
) |
|
|
(61.3 |
%) |
Dividend
income |
|
|
1,614 |
|
|
|
2,635 |
|
|
|
(1,021 |
) |
|
|
(38.7 |
%) |
Fee
income |
|
|
7,982 |
|
|
|
10,431 |
|
|
|
(2,449 |
) |
|
|
(23.5 |
%) |
Interest
on idle funds |
|
|
534 |
|
|
|
8 |
|
|
|
526 |
|
|
|
6575 |
% |
Total
investment income |
|
$ |
94,137 |
|
|
$ |
90,446 |
|
|
$ |
3,691 |
|
|
|
4.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
$ |
46,549 |
|
|
$ |
25,120 |
|
|
$ |
21,429 |
|
|
|
85.3 |
% |
Net
investment income per share |
|
$ |
1.90 |
|
|
$ |
1.03 |
|
|
$ |
0.87 |
|
|
|
84.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net investment income(1) |
|
$ |
46,117 |
|
|
$ |
43,316 |
|
|
$ |
2,801 |
|
|
|
6.5 |
% |
Adjusted
net investment income per share(1) |
|
$ |
1.88 |
|
|
$ |
1.77 |
|
|
$ |
0.11 |
|
|
|
6.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase in net assets resulting from operations |
|
$ |
35,822 |
|
|
$ |
116,104 |
|
|
$ |
(80,282 |
) |
|
|
(69.1 |
%) |
Net
increase in net assets resulting from operations per share |
|
$ |
1.46 |
|
|
$ |
4.75 |
|
|
$ |
(3.29 |
) |
|
|
(69.3 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The $3.7 million increase in total investment
income for the year ended December 31, 2022 as compared to the
same period in 2021 was primarily attributable to (i) a $6.6
million increase in total interest income resulting from an
increase in average debt investment balances outstanding and a
higher weighted average yield on debt investment balances
outstanding, partially offset by repayments of payment-in-kind debt
investments and an increase in payment-in-kind investments on
non-accrual, (ii) a $1.0 million decrease in dividend income due to
decreased levels of distributions received from equity investments,
and (iii) a $2.4 million decrease in fee income resulting from a
decrease in origination, management and prepayment fee income.
For the year ended December 31, 2022, total
expenses, including the base management and incentive fee waivers
and income tax provision, were $47.6 million, a decrease of $17.7
million or (27.2%), from the $65.3 million of total expenses,
including income tax provision, for the year ended
December 31, 2021. The decrease was primarily attributable to
(i) a $0.5 million decrease in interest and financing expenses,
(ii) a $1.7 million net increase in base management fee, including
the base management fee waiver due to higher average total assets,
(iii) a $2.0 million decrease in income incentive fees and a $18.6
million decrease in capital gains incentive fees, (iv) a $0.6
million increase in professional fees, and (v) a $0.9 million
increase in excise tax provision.
Net investment income increased by $21.4
million, or 85.3%, to $46.5 million during the year ended
December 31, 2022 as compared to the same period in 2021, as a
result of the $17.7 million decrease in total expenses, including
the base management fee waiver and income tax provision and the
$3.7 million increase in total investment income. Adjusted net
investment income,(1) which excludes the capital gains incentive
fee accrual, increased by $2.8 million, or 6.5%, to $46.1
million.
For the year ended December 31, 2022, the
total net realized gain on investments, net of income tax provision
on realized gains and income tax provision from deemed distribution
of long term capital gains, was $55.2 million, as compared to total
net realized gain on investments, net of income tax provision on
realized gains and income tax provision from deemed distribution of
long term capital gains, of $53.8 million for the same period in
2021.
Portfolio and Investment Activities
As of December 31, 2022, the fair value of
our investment portfolio totaled $860.3 million and consisted of 76
active portfolio companies and two portfolio companies that have
sold their underlying operations. Our total portfolio investments
at fair value were approximately 103.8% of the related cost basis
as of December 31, 2022. As of December 31, 2022, the
debt investments of 43 portfolio companies bore interest at a
variable rate, which represented $522.9 million, or 70.6%, of our
debt investment portfolio on a fair value basis, and the remainder
of our debt investment portfolio was comprised of fixed rate
investments. As of December 31, 2022, our average active
portfolio company investment at amortized cost was $10.9 million,
which excludes investments in the two portfolio companies that have
sold their underlying operations. The weighted average yield on
debt investments was 13.8% as of December 31, 2022. The
weighted average yield was computed using the effective interest
rates for debt investments at cost as of December 31, 2022,
including the accretion of original issue discounts and loan
origination fees, but excluding investments on non-accrual status
and investments recorded as a secured borrowing, if any.
Fourth quarter 2022 investment activity included
the following new portfolio company investments:
- Education Incites, LLC (dba
Acceleration Academies), a leading provider of alternative
education academies focused on high school dropout recovery
throughout the United States. Fidus invested $6.0 million in second
lien debt.
- APM Intermediate Holdings, LLC (dba
Artistic Paver Manufacturing, Inc.), a manufacturer of premium
pavers for residential and commercial outdoor living applications.
Fidus invested $15.0 million in first lien debt and $1.2 million
common equity.
- Tiger Calcium Services Inc., a
leading Canadian provider of calcium chloride solutions. Fidus
invested $12.5 million in second lien debt.
- R1 Holdings, LLC (dba RoadOne
IntermodaLogistics), a provider of intermodal logistics solutions,
including port and rail container drayage, dedicated solutions,
transloading and warehousing. Fidus invested $5.5 million in first
lien debt, $1.3 million in subordinated debt, and $0.3 million in
common equity and made additional commitments up to $2.5 million in
first lien debt, $0.4 million in incremental subordinated debt, and
$0.1 million in common equity
Liquidity and Capital Resources
As of December 31, 2022, we had $62.4
million in cash and cash equivalents and $100.0 million of unused
capacity under our senior secured revolving credit facility (the
“Credit Facility”). As of December 31, 2022, we have received net
proceeds of $5.8 million from the equity at-the-market program (the
“ATM Program”). As of December 31, 2022, we had SBA debentures
outstanding of $153.0 million, $125.0 million outstanding of our
4.75% notes due January 2026 (the “January 2026 Notes”) and $125.0
million outstanding of our 3.50% notes due November 2026 (the
“November 2026 Notes” and collectively with the January 2026 Notes
the “Notes”). As of December 31, 2022, the weighted average
interest rate on total debt outstanding was 4.0%.
Subsequent Events
On February 23, 2023, we invested $11.0 million
in first lien debt and common equity of USG AS Holdings, LLC, a
leading provider of water asset management services for small and
medium public water utilities in North America.
On February 27, 2023, we issued an additional
$4.0 million in SBA debentures, which will bear interest at a fixed
interim interest rate of 5.344% until the pooling date in March
2023.
On February 28, 2023, we invested $10.4 million
in first lien debt, subordinated debt, and common equity of CTM
Group, Inc., a leading provider of turn-key entertainment solutions
across tourist attractions, leisure venues, and high traffic retail
sites.
For the period from January 1, 2023, to February
28, 2023, we sold a total of 114,904 shares of our common stock
under the ATM Program for gross proceeds of approximately $2.4
million and net proceeds of approximately $2.4 million, after
deducting commissions to the sales agents on shares sold and
offering expenses.
On March 1, 2023, we invested $18.8 million in
first lien debt and common equity of QED Technologies
International, Inc., a leading provider of precision optics
finishing and inspection equipment, products, and services for the
semiconductor, military, space, R&D, imaging, and other
industries.
First Quarter 2023 Dividends Totaling $0.66 Per
Share Declared
On February 15, 2023, our board of directors
declared a base dividend of $0.41 per share, a supplemental
dividend of $0.15 per share, and a special dividend of $0.10 per
share for the first quarter. The dividends will be payable on March
29, 2023, to stockholders of record as of March 22, 2023.
When declaring dividends, our board of directors
reviews estimates of taxable income available for distribution,
which differs from consolidated income under GAAP due to (i)
changes in unrealized appreciation and depreciation, (ii) temporary
and permanent differences in income and expense recognition, and
(iii) the amount of undistributed taxable income carried over from
a given year for distribution in the following year. The final
determination of 2023 taxable income, as well as the tax attributes
for 2023 dividends, will be made after the close of the 2023 tax
year. The final tax attributes for 2023 dividends will generally
include ordinary taxable income but may also include capital gains,
qualified dividends and return of capital.
Fidus has adopted a dividend reinvestment plan
(“DRIP”) that provides for reinvestment of dividends on behalf of
its stockholders, unless a stockholder elects to receive cash. As a
result, when we declare a cash dividend, stockholders who have not
“opted out” of the DRIP at least two days prior to the dividend
payment date will have their cash dividends automatically
reinvested in additional shares of our common stock. Those
stockholders whose shares are held by a broker or other financial
intermediary may receive dividends in cash by notifying their
broker or other financial intermediary of their election.
Fourth Quarter 2022 Financial Results Conference
Call
Management will host a conference call to
discuss the operating and financial results at 9:00am ET on Friday,
March 3, 2023. To participate in the conference call, please dial
(646) 307-1963 approximately 10 minutes prior to the call.
International callers should dial (800) 715-9871. Please reference
conference ID #6949662.
A live webcast of the conference call will be
available at http://investor.fdus.com/events-presentations. Please
access the website 15 minutes prior to the start of the call to
download and install any necessary audio software. An archived
replay of the conference call will also be available in the
investor relations section of the Company’s website.
ABOUT FIDUS INVESTMENT
CORPORATION
Fidus Investment Corporation provides customized
debt and equity financing solutions to lower middle-market
companies, which management generally defines as U.S. based
companies with revenues between $10 million and $150 million. The
Company’s investment objective is to provide attractive
risk-adjusted returns by generating both current income from debt
investments and capital appreciation from equity related
investments. Fidus seeks to partner with business owners,
management teams and financial sponsors by providing customized
financing for change of ownership transactions, recapitalizations,
strategic acquisitions, business expansion and other growth
initiatives.
Fidus is an externally managed, closed-end,
non-diversified management investment company that has elected to
be treated as a business development company under the Investment
Company Act of 1940, as amended. In addition, for tax purposes,
Fidus has elected to be treated as a regulated investment company
under Subchapter M of the Internal Revenue Code of 1986, as
amended. Fidus was formed in February 2011 to continue and expand
the business of Fidus Mezzanine Capital, L.P., which commenced
operations in May 2007 and is licensed by the U.S. Small Business
Administration as a Small Business Investment Company (SBIC).
FORWARD-LOOKING STATEMENTS
This press release may contain certain
forward-looking statements which are based upon current
expectations and are inherently uncertain, including, but not
limited to, statements about the future performance and financial
condition of the Company, the prospects of our existing and
prospective portfolio companies, the financial condition and
ability of our existing and prospective portfolio companies to
achieve their objectives, and the timing, form and amount of any
distributions or supplemental dividends in the future. Any such
statements, other than statements of historical fact, are likely to
be affected by other unknowable future events and conditions,
including elements of the future that are or are not under the
Company’s control, such as changes in the financial and lending
markets, the impact of the general economy (including an economic
downturn or recession), and the impact of interest rate volatility,
including the decommissioning of LIBOR and rising interest rates
and that the Company may or may not have considered; accordingly,
such statements cannot be guarantees or assurances of any aspect of
future performance. Actual developments and results are highly
likely to vary materially from these estimates and projections of
the future as a result of a number of factors related to changes in
the markets in which the Company invests, changes in the financial,
capital, and lending markets, and other factors described from time
to time in the Company’s filings with the Securities and Exchange
Commission. Such statements speak only as of the time when made,
and are based on information available to the Company as of the
date hereof and are qualified in their entirety by this cautionary
statement. The Company undertakes no obligation to update any such
statement now or in the future, except as required by applicable
law.
FIDUS INVESTMENT CORPORATION
Consolidated Statements of Assets and Liabilities
(in thousands, except shares and per share
data)
|
|
December 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
ASSETS |
|
|
|
|
|
|
|
|
Investments,
at fair value: |
|
|
|
|
|
|
|
|
Control investments (cost: $17,915 and $6,833, respectively) |
|
$ |
— |
|
|
$ |
2,151 |
|
Affiliate investments (cost: $55,804 and $55,519,
respectively) |
|
|
101,590 |
|
|
|
137,284 |
|
Non-control/non-affiliate investments (cost: $754,974 and
$559,434, respectively) |
|
|
758,739 |
|
|
|
579,689 |
|
Total
investments, at fair value (cost: $828,693 and $621,786,
respectively) |
|
|
860,329 |
|
|
|
719,124 |
|
Cash and
cash equivalents |
|
|
62,350 |
|
|
|
169,417 |
|
Interest
receivable |
|
|
11,826 |
|
|
|
8,231 |
|
Prepaid
expenses and other assets |
|
|
1,455 |
|
|
|
413 |
|
Total assets |
|
$ |
935,960 |
|
|
$ |
897,185 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
SBA
debentures, net of deferred financing costs |
|
$ |
148,476 |
|
|
$ |
103,978 |
|
Notes, net
of deferred financing costs |
|
|
246,128 |
|
|
|
245,016 |
|
Borrowings
under Credit Facility, net of deferred financing costs |
|
|
(1,380 |
) |
|
|
(595 |
) |
Secured
borrowings |
|
|
16,880 |
|
|
|
17,637 |
|
Accrued
interest and fees payable |
|
|
4,747 |
|
|
|
4,668 |
|
Base
management fee payable, net of base management fee waiver – due to
affiliate |
|
|
3,769 |
|
|
|
3,135 |
|
Income
incentive fee payable – due to affiliate |
|
|
3,035 |
|
|
|
2,622 |
|
Capital
gains incentive fee payable – due to affiliate |
|
|
22,659 |
|
|
|
29,227 |
|
Administration fee payable and other, net – due to affiliate |
|
|
576 |
|
|
|
668 |
|
Taxes
payable |
|
|
9,937 |
|
|
|
2,410 |
|
Accounts
payable and other liabilities |
|
|
790 |
|
|
|
655 |
|
Total liabilities |
|
$ |
455,617 |
|
|
$ |
409,421 |
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
NET
ASSETS |
|
|
|
|
|
|
|
|
Common
stock, $0.001 par value (100,000,000 shares authorized, 24,727,788
and 24,437,400 shares |
|
|
|
|
|
|
|
|
issued and outstanding at December 31, 2022 and December 31, 2021,
respectively) |
|
$ |
25 |
|
|
$ |
24 |
|
Additional paid-in capital |
|
|
395,672 |
|
|
|
361,807 |
|
Total
distributable earnings |
|
|
84,646 |
|
|
|
125,933 |
|
Total net assets |
|
|
480,343 |
|
|
|
487,764 |
|
Total liabilities and net assets |
|
$ |
935,960 |
|
|
$ |
897,185 |
|
Net
asset value per common share |
|
$ |
19.43 |
|
|
$ |
19.96 |
|
|
|
|
|
|
|
|
|
|
FIDUS INVESTMENT CORPORATION
Consolidated Statements of Operations (unaudited)
(in thousands, except shares and per share
data)
|
|
Three Months Ended |
|
|
Years Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
$ |
— |
|
|
$ |
1,240 |
|
|
$ |
— |
|
|
$ |
3,735 |
|
Affiliate investments |
|
|
1,031 |
|
|
|
599 |
|
|
|
3,464 |
|
|
|
2,695 |
|
Non-control/non-affiliate investments |
|
|
23,348 |
|
|
|
16,451 |
|
|
|
78,880 |
|
|
|
66,648 |
|
Total interest income |
|
|
24,379 |
|
|
|
18,290 |
|
|
|
82,344 |
|
|
|
73,078 |
|
Payment-in-kind interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
|
— |
|
|
|
456 |
|
|
|
— |
|
|
|
2,117 |
|
Affiliate investments |
|
|
— |
|
|
|
87 |
|
|
|
30 |
|
|
|
368 |
|
Non-control/non-affiliate investments |
|
|
336 |
|
|
|
419 |
|
|
|
1,633 |
|
|
|
1,809 |
|
Total payment-in-kind interest income |
|
|
336 |
|
|
|
962 |
|
|
|
1,663 |
|
|
|
4,294 |
|
Dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
568 |
|
Affiliate investments |
|
|
— |
|
|
|
1,062 |
|
|
|
725 |
|
|
|
1,172 |
|
Non-control/non-affiliate investments |
|
|
204 |
|
|
|
196 |
|
|
|
889 |
|
|
|
895 |
|
Total dividend income |
|
|
204 |
|
|
|
1,258 |
|
|
|
1,614 |
|
|
|
2,635 |
|
Fee income |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
|
— |
|
|
|
1,472 |
|
|
|
— |
|
|
|
1,872 |
|
Affiliate investments |
|
|
5 |
|
|
|
15 |
|
|
|
457 |
|
|
|
385 |
|
Non-control/non-affiliate investments |
|
|
2,028 |
|
|
|
2,103 |
|
|
|
7,525 |
|
|
|
8,174 |
|
Total fee income |
|
|
2,033 |
|
|
|
3,590 |
|
|
|
7,982 |
|
|
|
10,431 |
|
Interest on idle funds |
|
|
522 |
|
|
|
1 |
|
|
|
534 |
|
|
|
8 |
|
Total
investment income |
|
|
27,474 |
|
|
|
24,101 |
|
|
|
94,137 |
|
|
|
90,446 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financing expenses |
|
|
4,928 |
|
|
|
4,746 |
|
|
|
18,665 |
|
|
|
19,164 |
|
Base management fee |
|
|
3,844 |
|
|
|
3,213 |
|
|
|
14,568 |
|
|
|
12,874 |
|
Incentive fee - income |
|
|
3,035 |
|
|
|
2,622 |
|
|
|
8,318 |
|
|
|
10,266 |
|
Incentive fee (reversal) - capital gains |
|
|
161 |
|
|
|
9,558 |
|
|
|
(432 |
) |
|
|
18,196 |
|
Administrative service expenses |
|
|
490 |
|
|
|
438 |
|
|
|
1,902 |
|
|
|
1,719 |
|
Professional fees |
|
|
917 |
|
|
|
415 |
|
|
|
2,463 |
|
|
|
1,899 |
|
Other general and administrative expenses |
|
|
275 |
|
|
|
262 |
|
|
|
994 |
|
|
|
875 |
|
Total
expenses before base management fee waiver |
|
|
13,650 |
|
|
|
21,254 |
|
|
|
46,478 |
|
|
|
64,993 |
|
Base management fee waiver |
|
|
(74 |
) |
|
|
(78 |
) |
|
|
(302 |
) |
|
|
(176 |
) |
Total
expenses, net of base management fee waiver |
|
|
13,576 |
|
|
|
21,176 |
|
|
|
46,176 |
|
|
|
64,817 |
|
Net
investment income before income taxes |
|
|
13,898 |
|
|
|
2,925 |
|
|
|
47,961 |
|
|
|
25,629 |
|
Income tax provision (benefit) |
|
|
1,414 |
|
|
|
477 |
|
|
|
1,412 |
|
|
|
509 |
|
Net
investment income |
|
|
12,484 |
|
|
|
2,448 |
|
|
|
46,549 |
|
|
|
25,120 |
|
Net
realized and unrealized gains (losses) on
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
|
(294 |
) |
|
|
20,554 |
|
|
|
48 |
|
|
|
20,521 |
|
Affiliate investments |
|
|
(7 |
) |
|
|
94 |
|
|
|
39,833 |
|
|
|
124 |
|
Non-control/non-affiliate investments |
|
|
716 |
|
|
|
21,488 |
|
|
|
25,754 |
|
|
|
35,163 |
|
Total net realized gain (loss) on investments |
|
|
415 |
|
|
|
42,136 |
|
|
|
65,635 |
|
|
|
55,808 |
|
Income tax (provision) benefit from realized gains on
investments |
|
|
(1,720 |
) |
|
|
(2,200 |
) |
|
|
(1,841 |
) |
|
|
(2,057 |
) |
Income tax (provision) from deemed distribution of long term
capital gains |
|
|
(8,568 |
) |
|
|
— |
|
|
|
(8,568 |
) |
|
|
— |
|
Net change in unrealized appreciation (depreciation): |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
|
(10,852 |
) |
|
|
4,923 |
|
|
|
(13,233 |
) |
|
|
34 |
|
Affiliate investments |
|
|
6,034 |
|
|
|
7,733 |
|
|
|
(35,979 |
) |
|
|
32,207 |
|
Non-control/non-affiliate investments |
|
|
6,930 |
|
|
|
(3,179 |
) |
|
|
(16,490 |
) |
|
|
9,255 |
|
Total net change in unrealized appreciation (depreciation) on
investments |
|
|
2,112 |
|
|
|
9,477 |
|
|
|
(65,702 |
) |
|
|
41,496 |
|
Net
gain (loss) on investments, including income tax (provision)
benefit |
|
|
(7,761 |
) |
|
|
49,413 |
|
|
|
(10,476 |
) |
|
|
95,247 |
|
Realized losses on extinguishment of debt |
|
|
— |
|
|
|
(1,623 |
) |
|
|
(251 |
) |
|
|
(4,263 |
) |
Net
increase (decrease) in net assets resulting from
operations |
|
$ |
4,723 |
|
|
$ |
50,238 |
|
|
$ |
35,822 |
|
|
$ |
116,104 |
|
Per
common share data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income per share-basic and diluted |
|
$ |
0.51 |
|
|
$ |
0.10 |
|
|
$ |
1.90 |
|
|
$ |
1.03 |
|
Net increase
in net assets resulting from operations per share — basic and
diluted |
|
$ |
0.19 |
|
|
$ |
2.06 |
|
|
$ |
1.46 |
|
|
$ |
4.75 |
|
Dividends
declared per share |
|
$ |
0.18 |
|
|
$ |
0.41 |
|
|
$ |
2.00 |
|
|
$ |
1.60 |
|
Weighted
average number of shares outstanding — basic and diluted |
|
|
24,559,486 |
|
|
|
24,437,400 |
|
|
|
24,468,172 |
|
|
|
24,437,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 1
Supplemental Information Regarding
Adjusted Net Investment Income
On a supplemental basis, we provide information
relating to adjusted net investment income, which is a non-GAAP
measure. This measure is provided in addition to, but not as a
substitute for, net investment income. Adjusted net investment
income represents net investment income excluding any capital gains
incentive fee expense or (reversal) attributable to realized and
unrealized gains and losses. The management agreement with our
investment advisor provides that a capital gains incentive fee is
determined and paid annually with respect to cumulative realized
capital gains (but not unrealized capital gains) to the extent such
realized capital gains exceed realized and unrealized losses for
such year, less the aggregate amount of any capital gains incentive
fees paid in all prior years. In addition, we accrue, but do not
pay, a capital gains incentive fee in connection with any
unrealized capital appreciation, as appropriate. As such, we
believe that adjusted net investment income is a useful indicator
of operations exclusive of any capital gains incentive fee expense
or (reversal) attributable to realized and unrealized gains and
losses. The presentation of this additional information is not
meant to be considered in isolation or as a substitute for
financial results prepared in accordance with GAAP. The following
table provides a reconciliation of net investment income to
adjusted net investment income for the three and twelve months
ended December 31, 2022 and 2021.
|
|
($ in thousands) |
|
|
($ in thousands) |
|
|
|
Three Months Ended |
|
|
Years Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net investment income |
|
$ |
12,484 |
|
|
$ |
2,448 |
|
|
$ |
46,549 |
|
|
$ |
25,120 |
|
Capital
gains incentive fee expense (reversal) |
|
|
161 |
|
|
|
9,558 |
|
|
|
(432 |
) |
|
|
18,196 |
|
Adjusted net
investment income(1) |
|
$ |
12,645 |
|
|
$ |
12,006 |
|
|
$ |
46,117 |
|
|
$ |
43,316 |
|
|
|
(Per share) |
|
|
(Per share) |
|
|
|
Three Months Ended |
|
|
Years Ended |
|
|
|
December 31, |
|
|
December 31, |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
Net investment income |
|
$ |
0.51 |
|
|
$ |
0.10 |
|
|
$ |
1.90 |
|
|
$ |
1.03 |
|
Capital
gains incentive fee expense (reversal) |
|
|
- |
|
|
|
0.39 |
|
|
|
(0.02 |
) |
|
|
0.74 |
|
Adjusted net
investment income(1) |
|
$ |
0.51 |
|
|
$ |
0.49 |
|
|
$ |
1.88 |
|
|
$ |
1.77 |
|
(1) |
|
Adjusted net investment income per share amounts are calculated as
adjusted net investment income dividend by weighted average shares
outstanding for the period. Due to rounding, the sum of net
investment income per share and capital gains incentive fee expense
(reversal) amounts may not equal the adjusted net investment income
per share amount presented here. |
|
|
|
Company Contact: |
Investor Relations Contact: |
Shelby E. Sherard |
Jody Burfening |
Chief Financial Officer |
LHA |
(847) 859-3940 |
(212) 838-3777 |
ssherard@fidusinv.com |
jburfening@lhai.com |
Grafico Azioni Fidus Investment (NASDAQ:FDUS)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Fidus Investment (NASDAQ:FDUS)
Storico
Da Giu 2023 a Giu 2024