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 second
quarter ended June 30, 2023.
Second Quarter 2023 Financial Highlights
- Total investment income of $30.6 million
- Net investment income of $16.8 million, or $0.67 per share
- Adjusted net investment income of $15.6 million, or $0.62 per
share(1)
- Net increase in net assets resulting from operations of $10.9
million, or $0.44 per share
- Invested $95.8 million in debt and equity securities, including
five new portfolio companies
- Received proceeds from repayments and realizations of $60.6
million
- Paid total dividends of $0.70 per share: regular quarterly
dividend of $0.41 per share, supplemental dividend of $0.19 per
share, and special dividend of $0.10 per share on June 28,
2023
- Net asset value (“NAV”) of $483.3 million, or $19.13 per share,
as of June 30, 2023
- Estimated spillover income (or taxable income in excess of
distributions) as of June 30, 2023 of $36.2 million, or $1.43
per share
Management Commentary
“The combination of a larger portfolio of
income-producing assets and a widened spread further enhanced the
earnings power of our portfolio during the second quarter, and we
grew Adjusted NII 44.2% versus last year to $0.62 per share, well
in excess of our base dividend. Net originations were $35.2
million, as we continued to build our portfolio, which reached
$928.7 million on a fair value basis at quarter end. With a
healthy and performing portfolio, the total dividend declaration
increased for the third quarter to $0.72 per share, allowing our
shareholders to continue to fully participate in our success,” said
Edward Ross, Chairman and CEO of Fidus Investment Corporation.
“Looking ahead, the volume of deal activity in the lower middle
market offers us opportunities to invest selectively in
high-quality companies, and we intend to remain focused on our
long-term goals of growing NAV over time, preserving capital and
generating attractive risk-adjusted returns for our
shareholders.”
(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.
Second Quarter 2023 Financial Results
The following table provides a summary of our
operating results for the three months ended June 30, 2023, as
compared to the same period in 2022 (dollars in thousands, except
per share data):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
$ Change |
|
|
% Change |
|
Interest income |
|
$ |
26,167 |
|
|
$ |
19,373 |
|
|
$ |
6,794 |
|
|
|
35.1 |
% |
Payment-in-kind interest income |
|
|
1,235 |
|
|
|
367 |
|
|
|
868 |
|
|
|
236.5 |
% |
Dividend
income |
|
|
304 |
|
|
|
76 |
|
|
|
228 |
|
|
|
300.0 |
% |
Fee
income |
|
|
2,237 |
|
|
|
1,336 |
|
|
|
901 |
|
|
|
67.4 |
% |
Interest
on idle funds |
|
|
615 |
|
|
|
1 |
|
|
|
614 |
|
|
|
61,400.0 |
% |
Total
investment income |
|
$ |
30,558 |
|
|
$ |
21,153 |
|
|
$ |
9,405 |
|
|
|
44.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
investment income |
|
$ |
16,784 |
|
|
$ |
11,008 |
|
|
$ |
5,776 |
|
|
|
52.5 |
% |
Net
investment income per share |
|
$ |
0.67 |
|
|
$ |
0.45 |
|
|
$ |
0.22 |
|
|
|
48.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
net investment income (1) |
|
$ |
15,610 |
|
|
$ |
10,403 |
|
|
$ |
5,207 |
|
|
|
50.1 |
% |
Adjusted
net investment income per share (1) |
|
$ |
0.62 |
|
|
$ |
0.43 |
|
|
$ |
0.19 |
|
|
|
44.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
increase (decrease) in net assets resulting from
operations |
|
$ |
10,915 |
|
|
$ |
7,981 |
|
|
$ |
2,934 |
|
|
|
36.8 |
% |
Net
increase (decrease) in net assets resulting from operations per
share |
|
$ |
0.44 |
|
|
$ |
0.33 |
|
|
$ |
0.11 |
|
|
|
33.3 |
% |
The $9.4 million increase in total investment
income for the three months ended June 30, 2023, as compared
to the same period in 2022, was primarily attributable to (i) a
$7.7 million increase in total interest income (including 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 $0.9
million increase in fee income resulting from an increase in
amendment fees, prepayment fees, and origination fees, and (iii) a
$0.2 million increase in dividend income due to increased levels of
distributions received from equity investments.
For the three months ended June 30, 2023,
total expenses, including the base management fee waivers and
income tax provision, were $13.8 million, an increase of $3.7
million, or 35.8% from the $10.1 million of total expenses,
including the base management fee waiver and income tax provision,
for the three months ended June 30, 2022. The increase was
primarily attributable to (i) a $2.6 million net increase in the
income incentive fee, (ii) a $0.9 million increase in interest and
financing expenses due to an increase in debt outstanding in 2023
and an increase in weighted average interest rate on borrowings,
(iii) a $0.6 million net increase in base management fee, including
the base management fee waiver, due to higher average total assets,
(iv) a $0.3 million increase in professional fees, and (v), a $0.6
million decrease in capital gains incentive fee accrued.
Net investment income increased by $5.8 million,
or 52.5%, to $16.8 million during the three months ended
June 30, 2023 as compared to the same period in 2022 as a
result of the $9.4 million increase in total investment income,
partially offset by the $3.7 million increase in total expenses,
including base management fee waiver and income tax provision.
Adjusted net investment income,(1) which excludes the capital gains
incentive fee accrual, was $0.62 per share compared to $0.43 per
share in the prior year.
For the three months ended June 30, 2023,
the total net realized gain/(loss) on investments, net of income
tax (provision)/benefit on realized gains, was $(7.1) million, as
compared to total net realized gain/(loss) on investments, net of
income tax (provision)/benefit on realized gains, of $18.2 million
for the same period in 2022.
Portfolio and Investment Activities
As of June 30, 2023, the fair value of our
investment portfolio totaled $928.7 million and consisted of 79
active portfolio companies and two portfolio companies that have
sold their underlying operations. Our total portfolio investments
at fair value were approximately 103.7% of the related cost basis
as of June 30, 2023. As of June 30, 2023, the debt
investments of 46 portfolio companies bore interest at a variable
rate, which represented $589.3 million, or 72.9%, 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 June 30, 2023, our average active portfolio
company investment at amortized cost was $11.3 million, which
excludes investments in the two portfolio companies that have sold
their underlying operations. The weighted average yield on debt
investments was 14.5% as of June 30, 2023. The weighted
average yield was computed using the effective interest rates for
debt investments at cost as of June 30, 2023, 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.
Second quarter 2023 investment activity included
the following new portfolio company investments:
- Aldinger Company, a leading provider of calibration services
for test and measurement equipment. Fidus invested $7.8 million in
first lien debt and $0.7 million in preferred equity.
- Detechtion Holdings, LLC, a leading provider of real-time asset
performance management solutions for energy companies. Fidus
invested $17.5 million in first lien debt, $2.0 million in
subordinated debt and $0.5 million in common equity.
- NWS Technologies, LLC, a leading provider of nuclear safety
valve testing and repair services. Fidus invested $17.0 million in
first lien debt, $1.1 million in common equity, and $0.4 million in
preferred equity.
- Puget Collision, LLC, a multi-unit operator of auto collision
repair shops operating in the CARSTAR and Fix Auto franchise
systems. Fidus invested $5.1 million in first lien debt.
- US Fertility Enterprises, LLC, a leading physician practice and
laboratory management company providing business support services
to top-tier fertility programs across the United States. Fidus
invested $12.5 million in subordinated debt.
Liquidity and Capital Resources
As of June 30, 2023, we had $38.0 million
in cash and cash equivalents and $70.0 million of unused capacity
under our senior secured revolving credit facility (the “Credit
Facility”). For the three months ended June 30, 2023, we
received net proceeds of $4.8 million from the equity at-the-market
program. As of June 30, 2023, we had SBA debentures
outstanding of $182.0 million, $125.0 million outstanding of our
4.75% notes due January 2026 and $125.0 million outstanding of our
3.50% notes due November 2026. As of June 30, 2023, the
weighted average interest rate on total debt outstanding was
4.5%.
Subsequent Events
On July 19, 2023, we issued an additional $8.0
million in SBA debentures, which will pool in September 2023. Until
the pooling date, the debentures bear interest at a fixed rate
interim interest rate of 6.035%.
On July 21, 2023, we invested $19.0 million in
first lien debt, subordinated debt, common equity, and preferred
equity in DealerBuilt Acquisition, LLC, a provider of Dealer
Management System (DMS) software for auto dealerships.
For the period from July 1, 2023, to August 2,
2023, we sold a total of 50,264 shares of our common stock under
the ATM Program for gross proceeds of approximately $1.0 million
and net proceeds of approximately $1.0 million, after deducting
commissions to the sales agents on shares sold and offering
expenses.
Second Quarter 2023 Dividends Declared
On July 31, 2023, our board of directors
declared a base dividend of $0.41 per share, a supplemental
dividend of $0.21 per share, and a special dividend of $0.10 per
share for the third quarter, which are payable on September 27,
2023, to stockholders of record as of September 20, 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.
Second Quarter 2023 Financial Results Conference
Call
Management will host a conference call to
discuss the operating and financial results at 9:00am ET on Friday,
August 4, 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 #4691370.
A live webcast of the conference call will be
available at
https://investor.fdus.com/news-events/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, and that the Company may or may not have
considered, such as changes in the financial and lending markets;
the impact of interest rate volatility, including the
decommissioning of LIBOR and rising interest rates; and the
dependence of the Company’s future success on the general economy
and its impact on the industries in which the Company
invests; 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) |
|
|
|
June 30, |
|
|
December 31, |
|
|
|
2023 |
|
|
2022 |
|
ASSETS |
|
|
|
|
|
|
|
|
Investments, at fair value: |
|
|
|
|
|
|
|
|
Control investments (cost: $6,832 and $17,915, respectively) |
|
$ |
|
— |
|
|
$ |
|
— |
|
Affiliate investments (cost: $55,747 and $55,804,
respectively) |
|
|
|
96,931 |
|
|
|
|
101,590 |
|
Non-control/non-affiliate investments (cost:
$832,589 and $754,974, respectively) |
|
|
|
831,791 |
|
|
|
|
758,739 |
|
Total investments, at fair value (cost: $895,168 and $828,693,
respectively) |
|
|
|
928,722 |
|
|
|
|
860,329 |
|
Cash and cash equivalents |
|
|
|
37,977 |
|
|
|
|
62,350 |
|
Interest receivable |
|
|
|
12,918 |
|
|
|
|
11,826 |
|
Proceeds receivable from stock offering |
|
|
|
895 |
|
|
|
|
— |
|
Prepaid expenses and other assets |
|
|
|
1,900 |
|
|
|
|
1,455 |
|
Total assets |
|
$ |
|
982,412 |
|
|
$ |
|
935,960 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
SBA debentures, net of deferred financing costs |
|
$ |
|
177,115 |
|
|
$ |
|
148,476 |
|
Notes, net of deferred financing costs |
|
|
|
246,680 |
|
|
|
|
246,128 |
|
Borrowings under Credit Facility, net of deferred financing
costs |
|
|
|
28,768 |
|
|
|
|
(1,380 |
) |
Secured borrowings |
|
|
|
16,552 |
|
|
|
|
16,880 |
|
Accrued interest and fees payable |
|
|
|
5,215 |
|
|
|
|
4,747 |
|
Base management fee payable, net of base management fee waiver
– due to affiliate |
|
|
|
3,979 |
|
|
|
|
3,769 |
|
Income incentive fee payable – due to affiliate |
|
|
|
3,834 |
|
|
|
|
3,035 |
|
Capital gains incentive fee payable – due to affiliate |
|
|
|
14,083 |
|
|
|
|
22,659 |
|
Administration fee payable and other, net – due to
affiliate |
|
|
|
408 |
|
|
|
|
576 |
|
Taxes payable |
|
|
|
1,145 |
|
|
|
|
9,937 |
|
Accounts payable and other liabilities |
|
|
|
1,285 |
|
|
|
|
790 |
|
Total liabilities |
|
$ |
|
499,064 |
|
|
$ |
|
455,617 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
NET ASSETS |
|
|
|
|
|
|
|
|
Common stock, $0.001 par value (100,000,000 shares authorized,
25,265,808 and 24,727,788 shares |
|
|
|
|
|
|
|
|
outstanding at June 30, 2023 and December 31, 2022,
respectively) |
|
$ |
|
25 |
|
|
$ |
|
25 |
|
Additional paid-in capital |
|
|
|
406,419 |
|
|
|
|
395,672 |
|
Total distributable earnings |
|
|
|
76,904 |
|
|
|
|
84,646 |
|
Total net assets |
|
|
|
483,348 |
|
|
|
|
480,343 |
|
Total liabilities and net assets |
|
$ |
|
982,412 |
|
|
$ |
|
935,960 |
|
Net asset value per common share |
|
$ |
|
19.13 |
|
|
$ |
|
19.43 |
|
FIDUS INVESTMENT CORPORATION |
Consolidated Statements of Operations
(unaudited) |
(in thousands, except shares and per share
data) |
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
June 30, |
|
|
June 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Affiliate investments |
|
|
1,107 |
|
|
|
657 |
|
|
|
2,157 |
|
|
|
1,541 |
|
Non-control/non-affiliate investments |
|
|
25,060 |
|
|
|
18,716 |
|
|
|
49,966 |
|
|
|
34,913 |
|
Total interest income |
|
|
26,167 |
|
|
|
19,373 |
|
|
|
52,123 |
|
|
|
36,454 |
|
Payment-in-kind interest income |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Affiliate investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30 |
|
Non-control/non-affiliate investments |
|
|
1,235 |
|
|
|
367 |
|
|
|
1,872 |
|
|
|
884 |
|
Total payment-in-kind interest income |
|
|
1,235 |
|
|
|
367 |
|
|
|
1,872 |
|
|
|
914 |
|
Dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Affiliate investments |
|
|
172 |
|
|
|
69 |
|
|
|
520 |
|
|
|
725 |
|
Non-control/non-affiliate investments |
|
|
132 |
|
|
|
7 |
|
|
|
168 |
|
|
|
40 |
|
Total dividend income |
|
|
304 |
|
|
|
76 |
|
|
|
688 |
|
|
|
765 |
|
Fee income |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Affiliate investments |
|
|
50 |
|
|
|
160 |
|
|
|
55 |
|
|
|
297 |
|
Non-control/non-affiliate investments |
|
|
2,187 |
|
|
|
1,176 |
|
|
|
3,618 |
|
|
|
3,237 |
|
Total fee income |
|
|
2,237 |
|
|
|
1,336 |
|
|
|
3,673 |
|
|
|
3,534 |
|
Interest on idle funds |
|
|
615 |
|
|
|
1 |
|
|
|
1,258 |
|
|
|
4 |
|
Total investment income |
|
|
30,558 |
|
|
|
21,153 |
|
|
|
59,614 |
|
|
|
41,671 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest and financing expenses |
|
|
5,591 |
|
|
|
4,639 |
|
|
|
10,776 |
|
|
|
9,051 |
|
Base management fee |
|
|
4,051 |
|
|
|
3,618 |
|
|
|
7,905 |
|
|
|
6,961 |
|
Incentive fee - income |
|
|
3,834 |
|
|
|
1,183 |
|
|
|
7,481 |
|
|
|
2,236 |
|
Incentive fee (reversal) - capital gains |
|
|
(1,174 |
) |
|
|
(605 |
) |
|
|
(1,021 |
) |
|
|
(335 |
) |
Administrative service expenses |
|
|
618 |
|
|
|
510 |
|
|
|
1,091 |
|
|
|
932 |
|
Professional fees |
|
|
641 |
|
|
|
290 |
|
|
|
1,457 |
|
|
|
805 |
|
Other general and administrative expenses |
|
|
264 |
|
|
|
531 |
|
|
|
504 |
|
|
|
818 |
|
Total expenses before base management fee waiver |
|
|
13,825 |
|
|
|
10,166 |
|
|
|
28,193 |
|
|
|
20,468 |
|
Base management fee waiver |
|
|
(72 |
) |
|
|
(76 |
) |
|
|
(144 |
) |
|
|
(152 |
) |
Total expenses, net of base management fee waiver |
|
|
13,753 |
|
|
|
10,090 |
|
|
|
28,049 |
|
|
|
20,316 |
|
Net investment income before income taxes |
|
|
16,805 |
|
|
|
11,063 |
|
|
|
31,565 |
|
|
|
21,355 |
|
Income tax provision (benefit) |
|
|
21 |
|
|
|
55 |
|
|
|
58 |
|
|
|
9 |
|
Net investment income |
|
|
16,784 |
|
|
|
11,008 |
|
|
|
31,507 |
|
|
|
21,346 |
|
Net realized and unrealized gains (losses) on
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses): |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
|
(11,458 |
) |
|
|
(204 |
) |
|
|
(11,458 |
) |
|
|
(65 |
) |
Affiliate investments |
|
|
99 |
|
|
|
15,300 |
|
|
|
99 |
|
|
|
15,624 |
|
Non-control/non-affiliate investments |
|
|
5,818 |
|
|
|
3,212 |
|
|
|
5,876 |
|
|
|
9,617 |
|
Total net realized gain (loss) on investments |
|
|
(5,541 |
) |
|
|
18,308 |
|
|
|
(5,483 |
) |
|
|
25,176 |
|
Income tax (provision) benefit from realized gains on
investments |
|
|
(1,538 |
) |
|
|
(122 |
) |
|
|
(1,538 |
) |
|
|
(121 |
) |
Net change in unrealized appreciation (depreciation): |
|
|
|
|
|
|
|
|
|
|
|
|
Control investments |
|
|
11,083 |
|
|
|
(2,151 |
) |
|
|
11,083 |
|
|
|
(2,151 |
) |
Affiliate investments |
|
|
(2,113 |
) |
|
|
(15,049 |
) |
|
|
(4,602 |
) |
|
|
(20,928 |
) |
Non-control/non-affiliate investments |
|
|
(7,760 |
) |
|
|
(4,013 |
) |
|
|
(4,563 |
) |
|
|
(3,453 |
) |
Total net change in unrealized appreciation (depreciation) on
investments |
|
|
1,210 |
|
|
|
(21,213 |
) |
|
|
1,918 |
|
|
|
(26,532 |
) |
Net gain (loss) on investments |
|
|
(5,869 |
) |
|
|
(3,027 |
) |
|
|
(5,103 |
) |
|
|
(1,477 |
) |
Realized losses on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(198 |
) |
Net increase (decrease) in net assets resulting from
operations |
|
$ |
10,915 |
|
|
$ |
7,981 |
|
|
$ |
26,404 |
|
|
$ |
19,671 |
|
Per common share data: |
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income per share-basic and diluted |
|
$ |
0.67 |
|
|
$ |
0.45 |
|
|
$ |
1.26 |
|
|
$ |
0.87 |
|
Net increase in net assets resulting from operations per share
— basic and diluted |
|
$ |
0.44 |
|
|
$ |
0.33 |
|
|
$ |
1.06 |
|
|
$ |
0.80 |
|
Dividends declared per share |
|
$ |
0.70 |
|
|
$ |
0.43 |
|
|
$ |
1.36 |
|
|
$ |
0.96 |
|
Weighted average number of shares outstanding — basic and
diluted |
|
|
25,028,268 |
|
|
|
24,437,400 |
|
|
|
24,916,729 |
|
|
|
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 six months ended
June 30, 2023 and 2022.
|
|
|
|
|
($ in thousands) |
|
|
($ in thousands) |
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net investment income |
|
|
|
|
$ |
16,784 |
|
|
$ |
11,008 |
|
|
$ |
31,507 |
|
|
$ |
21,346 |
|
Capital gains incentive fee
expense (reversal) |
|
|
|
|
|
(1,174 |
) |
|
|
(605 |
) |
|
|
(1,021 |
) |
|
|
(335 |
) |
Adjusted net investment income
(1) |
|
|
|
|
$ |
15,610 |
|
|
$ |
10,403 |
|
|
$ |
30,486 |
|
|
$ |
21,011 |
|
|
|
|
|
|
(Per share) |
|
|
(Per share) |
|
|
|
|
|
|
Three Months Ended |
|
|
Six Months Ended |
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Net investment income |
|
|
|
|
$ |
0.67 |
|
|
$ |
0.45 |
|
|
$ |
1.26 |
|
|
$ |
0.87 |
|
Capital gains incentive fee
expense (reversal) |
|
|
|
|
|
(0.05 |
) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.01 |
) |
Adjusted net investment income
(1) |
|
|
|
|
$ |
0.62 |
|
|
$ |
0.43 |
|
|
$ |
1.22 |
|
|
$ |
0.86 |
|
(1 |
) |
Adjusted net investment income per share amounts are calculated as
adjusted net investment income divided 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 Ago 2024 a Set 2024
Grafico Azioni Fidus Investment (NASDAQ:FDUS)
Storico
Da Set 2023 a Set 2024