HOUSTON, March 4,
2024 /PRNewswire/ -- Stellus Capital Investment
Corporation (NYSE:SCM) ("Stellus" or the "Company") today announced
financial results for its fourth fiscal quarter and year ended
December 31, 2023.
Robert T. Ladd, Chief Executive
Officer of Stellus, stated, "I am pleased to report solid operating
results for the quarter ended December 31,
2023, in which U.S. GAAP net investment income of
$0.49 per share and core net
investment income of $0.50 per share
covered the regular dividend declared of $0.40 per share. Our loan portfolio is yielding
11.9%, as of December 31, 2023. We
have concluded over eleven years of operations, during which our
investors have received a total of $246
million in distributions, equivalent to $15.08 per share."
|
FINANCIAL
HIGHLIGHTS
($ in millions, except
data relating to per share amounts and shares
outstanding)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
December 31, 2023
|
|
December 31, 2022
|
|
December 31, 2023
|
|
December 31, 2022
|
|
Amount
|
Per
Share
|
|
Amount
|
Per
Share
|
|
Amount
|
Per
Share
|
|
Amount
|
Per
Share
|
|
Net investment
income
|
$11.91
|
$0.49
|
|
$9.71
|
$0.50
|
|
$42.21
|
$1.92
|
|
$28.59
|
$1.46
|
|
Core net investment
income(1)
|
12.16
|
0.50
|
|
8.66
|
0.44
|
|
42.97
|
1.95
|
|
26.93
|
1.38
|
|
Net realized (loss)
gain on investments
|
(30.54)
|
(1.26)
|
|
(1.00)
|
(0.06)
|
|
(30.21)
|
(1.38)
|
|
3.66
|
0.19
|
|
Net realized loss on
foreign currency translation
|
(0.04)
|
—
|
|
—
|
—
|
|
(0.11)
|
—
|
|
(0.01)
|
—
|
|
Provision for taxes on
realized gain on investments in taxable subsidiaries
|
2.99
|
0.12
|
|
—
|
—
|
|
2.99
|
0.14
|
|
—
|
—
|
|
Total realized
income(2)
|
($15.68)
|
($0.65)
|
|
$8.71
|
$0.44
|
|
$14.88
|
$0.68
|
|
$32.24
|
$1.65
|
|
Distributions
|
(9.65)
|
(0.40)
|
|
(6.67)
|
(0.34)
|
|
(35.53)
|
(1.61)
|
|
(25.42)
|
(1.30)
|
|
Net unrealized change
in appreciation (depreciation) on investments
|
27.13
|
1.13
|
|
(4.73)
|
(0.24)
|
|
2.79
|
0.13
|
|
(17.55)
|
(0.90)
|
|
Net unrealized change
in appreciation (depreciation) on foreign currency
translation
|
0.01
|
—
|
|
0.06
|
—
|
|
(0.01)
|
—
|
|
0.01
|
—
|
|
Benefit (provision) for
taxes on unrealized depreciation (appreciation) on
investments
in taxable
subsidiaries
|
0.02
|
—
|
|
(0.06)
|
—
|
|
(0.13)
|
(0.01)
|
|
(0.21)
|
(0.01)
|
|
Net increase in net
assets resulting from operations
|
$11.48
|
$0.48
|
|
$3.98
|
$0.20
|
|
$17.53
|
$0.80
|
|
$14.49
|
$0.74
|
|
Weighted average shares
outstanding
|
|
24,125,642
|
|
|
19,604,040
|
|
|
22,004,648
|
|
|
19,552,931
|
|
|
|
(1)
|
Core net investment
income, as presented, excludes the impact of capital gains
incentive fees (reversal) and income taxes, the majority of which
are excise taxes. The Company believes presenting core net
investment income and the related per share amount is a useful
supplemental disclosure for analyzing its financial performance.
However, core net investment income is a non-U.S. generally
accepted accounting principles ("U.S. GAAP") measure and should not
be considered as a replacement for net investment income and other
earnings measures presented in accordance with U.S. GAAP. A
reconciliation of net investment income in accordance with U.S.
GAAP to core net investment income is presented in the table below
the financial
statements.
|
|
(2)
|
Total realized income
is the sum of net investment income, net realized gains (losses) on
investments, net realized gains (losses) on foreign currency, and
loss on debt extinguishment; all U.S. GAAP measures.
|
|
PORTFOLIO
ACTIVITY
($ in millions, except
data relating to per share amounts and number of portfolio
companies)
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
|
|
|
|
December 31, 2023
|
|
December 31, 2022
|
|
|
|
|
|
Investments at fair
value
|
|
$874.5
|
|
$844.7
|
|
|
|
|
|
Total assets
|
|
$908.1
|
|
$898.2
|
|
|
|
|
|
Net assets
|
|
$319.9
|
|
$275.8
|
|
|
|
|
|
Shares
outstanding
|
|
24,125,642
|
|
19,666,769
|
|
|
|
|
|
Net asset value per
share
|
|
$13.26
|
|
$14.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31, 2023
|
|
December 31, 2022
|
|
December 31, 2023
|
|
December 31, 2022
|
|
New
investments
|
|
$44.2
|
|
$30.1
|
|
$183.9
|
|
$211.0
|
|
Repayments of
investments
|
|
(55.2)
|
|
(53.2)
|
|
(134.2)
|
|
(127.5)
|
|
Net activity
|
|
($11.0)
|
|
($23.1)
|
|
$49.7
|
|
$83.5
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
As of
|
|
|
|
|
|
|
December 31, 2023
|
|
December 31, 2022
|
|
|
|
|
|
Number of portfolio
company investments
|
|
93
|
|
85
|
|
|
|
|
|
Number of debt
investments
|
|
81
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average yield
of debt and other income producing investments
(3)
|
|
|
|
|
|
|
|
|
|
Cash
|
|
11.0 %
|
|
10.3 %
|
|
|
|
|
|
Payment-in-kind
("PIK")
|
|
0.5 %
|
|
0.4 %
|
|
|
|
|
|
Fee
amortization
|
|
0.4 %
|
|
0.4 %
|
|
|
|
|
|
Total
|
|
11.9 %
|
|
11.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average yield
on total investments (4)
|
|
|
|
|
|
|
|
|
|
Cash
|
|
10.3 %
|
|
9.7 %
|
|
|
|
|
|
Payment-in-kind
("PIK")
|
|
0.5 %
|
|
0.3 %
|
|
|
|
|
|
Fee
amortization
|
|
0.3 %
|
|
0.4 %
|
|
|
|
|
|
Total
|
|
11.1 %
|
|
10.4 %
|
|
|
|
|
|
|
|
(3)
|
The dollar-weighted
average annualized effective yield is computed using the effective
interest rate for our debt investments and other income producing
investments, including cash and PIK interest, as well as the
accretion of deferred fees. The individual investment yields are
then weighted by the respective cost of the investments (as of the
date presented) in calculating the weighted average effective yield
of the portfolio. The dollar-weighted average annualized yield on
the Company's investments for a given period will generally be
higher than what investors in the Company's common stock would
realize in a return over the same period because the
dollar-weighted average annualized yield does not reflect the
Company's expenses or any sales load that may be paid by
investors.
|
|
(4)
|
The dollar-weighted
average yield on total investments takes the same yields as
calculated in the footnote above but weights them to determine the
weighted average effective yield as a percentage of the Company's
total investments, including non-income producing loans and
equity.
|
Results of Operations
Investment income for the years ended December 31, 2023 and 2022 totaled $105.8 million and $75.1
million, respectively, most of which was interest income
from portfolio investments.
Gross operating expenses for the years ended December 31, 2023 and 2022, totaled $63.9 million and $46.5
million, respectively. The increase was driven primarily by
increased interest expense and income incentive fees. For the same
respective periods, base management fees totaled $15.5 million and $14.8
million, income incentive fees totaled $10.2 million and $3.8
million, capital gains incentive fee reversals totaled
($0.6) million and ($2.8) million, fees and expenses related to our
borrowings totaled $32.0 million and
$24.5 million (including interest and
amortization of deferred financing costs), administrative expenses
totaled $1.9 million and $1.8 million, income tax totaled $1.3 million and $1.2
million and other expenses totaled $3.6 million and $3.2
million. For the year ended December
31, 2023, the Company waived income incentive fees totaling
$0.3 million for net operating
expenses of $63.7 million. No such
income incentive fees were waived for the year ended December 31, 2022.
Net investment income was $42.2
million and $28.6 million, or
$1.92 and $1.46 per common share based on weighted average
common shares outstanding of 22,004,648 and 19,552,931 for the
years ended December 31, 2023 and
2022, respectively. Core net investment income, which is a non-U.S.
GAAP measure that excludes the capital gains incentive fee
(reversal) and income tax expense accruals, for the years ended
December 31, 2023 and 2022 was
$43.0 million and $26.9 million, or $1.95 and $1.38 per
share, respectively.
For the years ended December 31,
2023 and 2022, the Company's investment portfolio had a net
change in unrealized appreciation (depreciation) of $2.8 million and ($17.5)
million, respectively, and the Company had net realized
(losses) gains of ($30.2) million and
$3.7 million, respectively. The full
realizations for the year ended December 31,
2023 had previously been reflected as unrealized
depreciation which were reversed during the year then ended and
included in the $2.8 million of
unrealized appreciation as of December 31,
2023.
Net increase in net assets resulting from operations totaled
$17.5 million and $14.5 million, or $0.80 and $0.74 per
common share, based on weighted average common shares outstanding
of 22,004,648 and 19,552,931 for the years ended December 31, 2023 and 2022, respectively.
Liquidity and Capital Resources
On November 21, 2023, the Company
entered into the Fourth Amendment to Amended and Restated Senior
Secured Revolving Credit Agreement (the "Fourth Amendment
Agreement") by and among the Company, as the borrower, Zions
Bancorporation, N.A. dba Amegy Bank ("Amegy Bank"), as the
administrative agent, and the lenders that are party thereto from
time to time (collectively, the "Lenders"). The Fourth Amendment
Agreement, among other things, (i) decreases the maximum commitment
under the Company's credit agreement with the Lenders (the "Credit
Facility") from $265.0 million to
$260.0 million, (ii) increases the
maximum accordion limit from $315.0
million to $350.0 million,
(iii) authorizes the replacement of Canadian Dollar Offered Rate
with a Canadian Overnight Repo Rate Average benchmark rate to be
agreed for advances in Canadian Dollars, (iv) extends the
Commitment Termination Date (as defined in the Fourth Amendment
Agreement) to November 21, 2027 and
Final Maturity Date (as defined in the Fourth Amendment Agreement)
to November 21, 2028, and (v) reduces
the Company's interest coverage ratio requirement from 2.00:1.00 to
1.75:1.00.
As of December 31, 2023 and
December 31, 2022, the Company had
$160.1 million and $199.2 million in outstanding borrowings under
the Credit Facility, respectively.
The Company issued 4,458,873 shares during
the year ended December 31, 2023
under the At-the-Market Program ("ATM Program"), for gross proceeds
of $62.9 million. The average per
share gross offering price of shares issued under the ATM Program
during the year ended December 31,
2023 was $14.10. For the year
ended December 31, 2023, net proceeds
of $62.2 million, or $14.00 per share, exceeded net asset value
per share, excluding the impact of offering expenses.
Distributions
During the three months ended December
31, 2023 and 2022, the Company declared aggregate
distributions of $0.40 and
$0.34 per share, respectively
($9.6 million and $6.7 million in the aggregate, respectively).
During the years ended December 31, 2023 and 2022, the Company
declared aggregate distributions of $1.60 and $1.30 per
share, respectively ($35.5 million and $25.4 million in
the aggregate, respectively). Tax characteristics of all
distributions are reported to stockholders on Form
1099-DIV. Approximately $0.4 million of the
dividends declared in 2023 are expected to be characterized as
long-term capital gains. None of these dividends are expected to
include a return of capital.
Recent Portfolio Activity
The Company invested in the following portfolio companies during
the three months ended December 31,
2023:
|
Activity
Type
|
|
Date
|
|
Company
Name
|
|
Company
Description
|
|
Investment
Amount
|
|
Instrument
Type
|
|
Add-On
Investment
|
|
October 3,
2023
|
|
EH Real Estate
Services, LLC*
|
|
Offers residential
property brokerage, title & settlement, and
property and casualty
insurance brokerage services to home buyers
and sellers
|
|
$
|
2,281,116
|
|
Revolver
Commitment
|
|
|
|
|
|
|
|
|
$
|
3
|
|
Equity
|
|
Add-On
Investment
|
|
October 11,
2023
|
|
Impact Home Services
LLC*
|
|
Residential garage
door, electrical, and plumbing services provider
|
|
$
|
539,718
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
13,398
|
|
Equity
|
|
Add-On
Investment
|
|
October 16,
2023
|
|
Equine Network,
LLC*
|
|
Provider of content,
information, tech-enabled services, and hosts
competitions for the
U.S. equine industry
|
|
$
|
955,516
|
|
Senior Secured – First
Lien
|
|
Add-On
Investment
|
|
October 26,
2023
|
|
Elliott Aviation,
LLC*
|
|
Provider of
maintenance, repair, and overhaul and fixed-base
operator services to the business aviation sector.
|
|
$
|
56,148
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
1,489
|
|
Equity
|
|
Add-On
Investment
|
|
October 31,
2023
|
|
2X LLC*
|
|
Provider of outsourced
digital B2B marketing-as-a-service
|
|
$
|
1,448,388
|
|
Senior Secured – First
Lien
|
|
Add-On
Investment
|
|
November 1,
2023
|
|
Advanced Barrier
Extrusions, LLC*
|
|
Manufacturer of high
barrier forming web films
|
|
$
|
10,584
|
|
Equity
|
|
Restructured
Investment
|
|
November 6,
2023
|
|
ArborWorks,
LLC*
|
|
A professional tree
care firm
|
|
$
|
3,461,538
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
2,309,486
|
|
Revolver
Commitment
|
|
|
|
|
|
|
|
|
$
|
3,610,847
|
|
Equity
|
|
Add-On
Investment
|
|
November 15,
2023
|
|
Monitorus Holding,
LLC*
|
|
Provider of media
monitoring and evaluation services
|
|
$
|
5,532
|
|
Unsecured Convertible
Bond
|
|
Add-On
Investment
|
|
December 5,
2023
|
|
Amika OpCo
LLC*
|
|
Branded haircare
platform
|
|
$
|
9,705,893
|
|
Senior Secured – First
Lien
|
|
New
Investment
|
|
December 7,
2023
|
|
evolv Consulting,
LLC
|
|
Digital transformation
consulting firm
|
|
$
|
10,000,000
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
1,363,636
|
|
Revolver
Commitment
|
|
|
|
|
|
|
|
|
$
|
473,485
|
|
Equity
|
|
New
Investment
|
|
December 12,
2023
|
|
AdCellerant
LLC
|
|
Provider of outsourced
digital marketing software and services
|
|
$
|
10,000,000
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
875,995
|
|
Revolver
Commitment
|
|
|
|
|
|
|
|
|
$
|
728,710
|
|
Equity
|
|
Add-On
Investment
|
|
December 13,
2023
|
|
Unicat Catalyst
Holdings, LLC*
|
|
Manufacturer and
distributor of catalysts and other industrial products
|
|
$
|
21,103
|
|
Equity
|
|
Add-On
Investment
|
|
December 20,
2023
|
|
Advanced Barrier
Extrusions, LLC*
|
|
Manufacturer of high
barrier forming web films
|
|
$
|
68,034
|
|
Equity
|
|
Add-On
Investment
|
|
December 20,
2023
|
|
Tower Arch Infolinks
Media, LP**
|
|
Advertising placement
partner for small to mid-sized publishers
|
|
$
|
1,226
|
|
Equity
|
|
New
Investment
|
|
December 21,
2023
|
|
Michelli,
LLC
|
|
Provider of test and
measurement services and equipment
|
|
$
|
5,000,000
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
3,888,228
|
|
Delayed Draw Term Loan
Commitment
|
|
|
|
|
|
|
|
|
$
|
1,296,076
|
|
Revolver
Commitment
|
|
|
|
|
|
|
|
|
$
|
509,215
|
|
Equity
|
|
Add-On
Investment
|
|
December 22,
2023
|
|
Anne Lewis Strategies,
LLC*
|
|
Provider of
tech-enabled donor targeting and strategic digital
fundraising services
for non-profit and political organizations.
|
|
$
|
492,905
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Existing portfolio
company
|
|
|
|
|
|
|
|
The Company realized investments in the following portfolio
companies during the three months ended December 31, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Activity
Type
|
|
Date
|
|
Company
Name
|
|
Company
Description
|
|
Proceeds
Received
|
|
Realized
Gain/(Loss)
|
|
Instrument
Type
|
|
Full
Repayment
|
|
October 24,
2023
|
|
Interstate Waste
Services, Inc.*
|
|
Provider of
non-hazardous waste management,
collection, and
recycling
services
|
|
$
|
368,448
|
|
$
|
(577,677)
|
|
Equity
|
|
Restructured
Investment
|
|
November 6,
2023
|
|
ArborWorks,
LLC*
|
|
A professional tree
care firm
|
|
$
|
—
|
|
$
|
(9,080,023)
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
—
|
|
$
|
(2,119,291)
|
|
Funded
Revolver
|
|
|
|
|
|
|
|
|
$
|
—
|
|
$
|
(130,900)
|
|
Equity
|
|
Full
Repayment
|
|
November 21,
2023
|
|
SIB Holdings,
LLC*
|
|
Provider of fixed cost
reduction services
|
|
$
|
12,545,260
|
|
$
|
—
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
2,249,126
|
|
$
|
—
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
843,422
|
|
$
|
—
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
461,200
|
|
$
|
(38,800)
|
|
Equity
|
|
Full
Realization
|
|
November 29,
2023
|
|
U.S. Auto Sales, Inc.
et al*
|
|
Integrated used car
retailer and subprime auto finance
company
|
|
$
|
—
|
|
$
|
(985,000)
|
|
Equity
|
|
Full
Repayment
|
|
November 30,
2023
|
|
Archer Systems,
LLC*
|
|
Provider of mass tort
settlement administrative
solutions
|
|
$
|
3,788,754
|
|
$
|
—
|
|
Senior Secured – First
Lien
|
|
Full
Repayment
|
|
December 21,
2023
|
|
Kelleyamerit Holdings,
Inc.*
|
|
Nation-wide provider of
fleet maintenance and repair
services
|
|
$
|
9,750,000
|
|
$
|
—
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
1,500,000
|
|
$
|
—
|
|
Senior Secured – First
Lien
|
|
Full
Realization
|
|
December 21,
2023
|
|
International Designs
Holdings LLC*
|
|
Distributor of
design-oriented surfaces,
appliances and architectural
specialty
products
|
|
$
|
569,427
|
|
$
|
369,427
|
|
Equity
|
|
Full
Repayment
|
|
December 22,
2023
|
|
BLP Buyer,
Inc.*
|
|
Distributor of lifting
solutions
|
|
$
|
6,116,486
|
|
$
|
—
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
$
|
1,725,633
|
|
$
|
—
|
|
Senior Secured – First
Lien
|
|
Full
Realization
|
|
December 31,
2023
|
|
Protect America,
Inc.*
|
|
Provider of residential
security monitoring and home
automation
systems
|
|
$
|
—
|
|
$
|
(17,979,749)
|
|
Senior Secured – Second
Lien
|
Events Subsequent to December 31,
2023
The Company's management has evaluated subsequent events through
March 4, 2024. There have been no
subsequent events that require recognition or disclosure except for
the following described below.
Investment Portfolio
The Company invested in the following portfolio companies
subsequent to December 31, 2023:
|
Activity
Type
|
|
Date
|
|
Company
Name
|
|
Company
Description
|
|
Investment
Amount
|
|
Instrument
Type
|
|
Add-On
Investment
|
|
January 5,
2024
|
|
Whisps Holdings
LP*
|
|
Manufacturer of
cheese-based snacks
|
|
$
|
75,192
|
|
Equity
|
|
Add-On
Investment
|
|
January 8,
2024
|
|
EH Real Estate
Services, LLC*
|
|
Offers residential
property brokerage, title &
settlement, and
property and casualty insurance
brokerage services to
home buyers and sellers
|
|
$
|
475,233
|
|
Senior Secured – First
Lien
|
|
Add-On
Investment
|
|
January 9,
2024
|
|
Morgan Electrical Group
Intermediate Holdings, Inc.*
|
|
Provider of commercial
electrical services
|
|
$
|
23,531
|
|
Equity
|
|
Add-On
Investment
|
|
January 12,
2024
|
|
Impact Home Services
LLC*
|
|
Residential garage
door, electrical, and plumbing
services
provider
|
|
$
|
50,914
|
|
Equity
|
|
Add-On
Investment
|
|
January 31,
2024
|
|
Impact Home Services
LLC*
|
|
Residential garage
door, electrical, and plumbing
services
provider
|
|
$
|
22,331
|
|
Equity
|
|
Add-On
Investment
|
|
February 7,
2024
|
|
Unicat Catalyst
Holdings, LLC*
|
|
Manufacturer and
distributor of catalysts and other
industrial
products
|
|
$
|
7,032
|
|
Equity
|
|
Add-On
Investment
|
|
February 28,
2024
|
|
Monitorus Holding,
LLC*
|
|
Provider of media
monitoring and evaluation services
|
|
$
|
13,290
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Existing portfolio
company
|
|
|
|
|
|
|
|
The Company realized investments in the following portfolio
company subsequent to December 31,
2023:
|
Activity
Type
|
|
Date
|
|
Company
Name
|
|
Company
Description
|
|
Proceeds
Received
|
|
Instrument
Type
|
|
Full
Repayment
|
|
January 8,
2024
|
|
Peltram Plumbing
Holdings, LLC*
|
|
Provider of plumbing
solutions.
|
|
$
|
16,160,003
|
|
Senior Secured – First
Lien
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Existing portfolio
company
|
|
|
|
|
|
|
|
Credit Facility
The outstanding balance under the Credit Facility as of
March 4, 2024 was $148.5 million.
Distributions Declared
On January 13, 2024, our Board of
Directors declared a regular monthly distribution for each of
January, February, and March 2024, as
follows:
|
|
Ex-Dividend
|
|
Record
|
|
Payment
|
|
Amount per
|
|
Declared
|
|
Date
|
|
Date
|
|
Date
|
|
Share
|
|
1/13/2024
|
|
1/30/2024
|
|
1/31/2024
|
|
2/15/2024
|
|
$
|
0.1333
|
|
1/13/2024
|
|
2/28/2024
|
|
2/29/2024
|
|
3/15/2024
|
|
$
|
0.1333
|
|
1/13/2024
|
|
3/28/2024
|
|
3/29/2024
|
|
4/15/2024
|
|
$
|
0.1333
|
Conference Call Information
Stellus Capital Investment Corporation will host a conference
call to discuss these results on Tuesday,
March 5, 2024 at 12:00 PM, Central
Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W.
Todd Huskinson, Chief Financial
Officer, Chief Compliance Officer, Treasurer, and Secretary.
For those wishing to participate by telephone, please dial (888)
506-0062. Use passcode 183087. Starting approximately two hours
after the conclusion of the call, a replay will be available
through Tuesday, March 19, 2024 by
dialing (877) 481-4010 and entering passcode 50028. The replay will
also be available on the Company's website.
For those wishing to participate via Live Webcast, connect via
the Public (SCIC) section of our website at www.stelluscapital.com,
under the Events tab. A replay of the conference will be available
on our website for approximately 90 days.
About Stellus Capital Investment Corporation
The Company is an externally-managed, closed-end,
non-diversified investment management company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940, as amended. The Company's investment objective
is to maximize the total return to its stockholders in the form of
current income and capital appreciation by investing primarily in
private middle-market companies (typically those with $5.0 million to $50.0
million of EBITDA (earnings before interest, taxes,
depreciation and amortization)) through first lien (including
unitranche) loans, second lien loans and unsecured debt financing,
with corresponding equity co-investments. The Company's investment
activities are managed by its investment adviser, Stellus Capital
Management. To learn more about Stellus Capital Investment
Corporation, visit www.stelluscapital.com under the "Public (SCIC)"
tab.
Forward-Looking Statements
Statements included herein may contain "forward-looking
statements" which relate to future performance or financial
condition. Statements other than statements of historical facts
included in this press release may constitute forward-looking
statements and are not guarantees of future performance or results
and involve a number of assumptions, risks and uncertainties, which
change over time. Actual results may differ materially from those
anticipated in any forward-looking statements as a result of a
number of factors, including those described from time to time in
filings by the Company with the Securities and Exchange Commission
including the final prospectus that will be filed with the
Securities and Exchange Commission. The Company undertakes no duty
to update any forward-looking statement made herein. All
forward-looking statements speak only as of the date of this press
release.
Contacts
Stellus Capital Investment Corporation
W. Todd Huskinson, Chief Financial
Officer
(713) 292-5414
thuskinson@stelluscapital.com
|
STELLUS CAPITAL
INVESTMENT CORPORATION
CONSOLIDATED
STATEMENT OF ASSETS AND LIABILITIES
|
|
|
|
|
|
|
|
|
|
December 31, 2023
|
|
December 31, 2022
|
|
ASSETS
|
|
|
|
|
|
|
|
Control investments at
fair value (amortized cost of $17,285,138 and $0,
respectively)
|
|
$
|
6,175,994
|
|
$
|
—
|
|
Non-controlled,
non-affiliated investments, at fair value (amortized cost of
$884,858,412
and $875,823,177,
respectively)
|
|
|
868,284,689
|
|
|
844,733,638
|
|
Cash and cash
equivalents
|
|
|
26,125,741
|
|
|
48,043,329
|
|
Receivable for sales
and repayments of investments
|
|
|
371,877
|
|
|
718,794
|
|
Interest
receivable
|
|
|
4,882,338
|
|
|
3,984,409
|
|
Income tax
receivable
|
|
|
1,588,708
|
|
|
—
|
|
Other
receivables
|
|
|
42,995
|
|
|
34,245
|
|
Deferred offering
costs
|
|
|
7,312
|
|
|
1,100
|
|
Prepaid
expenses
|
|
|
606,674
|
|
|
667,267
|
|
Total
Assets
|
|
$
|
908,086,328
|
|
$
|
898,182,782
|
|
LIABILITIES
|
|
|
|
|
|
|
|
2026 Notes
payable
|
|
$
|
98,996,412
|
|
$
|
98,549,692
|
|
Credit Facility
payable
|
|
|
156,564,776
|
|
|
197,685,281
|
|
SBA-guaranteed
debentures
|
|
|
320,273,358
|
|
|
307,895,195
|
|
Management fees
payable
|
|
|
2,918,536
|
|
|
7,150,407
|
|
Income incentive fees
payable
|
|
|
2,885,180
|
|
|
2,464,408
|
|
Capital gains incentive
fees payable
|
|
|
—
|
|
|
569,528
|
|
Interest
payable
|
|
|
5,241,164
|
|
|
4,640,841
|
|
Related party
payable
|
|
|
—
|
|
|
1,060,321
|
|
Unearned
revenue
|
|
|
397,725
|
|
|
320,675
|
|
Administrative services
payable
|
|
|
402,151
|
|
|
356,919
|
|
Income tax
payable
|
|
|
—
|
|
|
1,175,373
|
|
Deferred tax
liability
|
|
|
188,893
|
|
|
61,936
|
|
Other accrued expenses
and liabilities
|
|
|
278,345
|
|
|
475,593
|
|
Total
Liabilities
|
|
$
|
588,146,540
|
|
$
|
622,406,169
|
|
Commitments and
contingencies (Note 7)
|
|
|
|
|
|
|
|
Net
Assets
|
|
$
|
319,939,788
|
|
$
|
275,776,613
|
|
NET
ASSETS
|
|
|
|
|
|
|
|
Common stock, par value
$0.001 per share (100,000,000 shares authorized;
24,125,642
and 19,666,769 issued
and outstanding, respectively)
|
|
$
|
24,125
|
|
$
|
19,667
|
|
Paid-in
capital
|
|
|
335,918,984
|
|
|
275,114,720
|
|
Total distributable
(loss) earnings
|
|
|
(16,003,321)
|
|
|
642,226
|
|
Net
Assets
|
|
$
|
319,939,788
|
|
$
|
275,776,613
|
|
Total Liabilities
and Net Assets
|
|
$
|
908,086,328
|
|
$
|
898,182,782
|
|
Net Asset Value Per
Share
|
|
$
|
13.26
|
|
$
|
14.02
|
|
STELLUS CAPITAL
INVESTMENT CORPORATION
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years
ended
|
|
|
December 31, 2023
|
|
December 31, 2022
|
|
December 31, 2021
|
|
INVESTMENT
INCOME
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
102,016,788
|
|
$
|
72,964,999
|
|
$
|
61,536,686
|
|
From control
investments:
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
37,897
|
|
$
|
—
|
|
$
|
—
|
|
From non-controlled,
non-affiliated investments
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
101,978,891
|
|
|
72,964,999
|
|
|
61,536,686
|
|
Other income
|
|
|
3,830,780
|
|
|
2,147,577
|
|
|
2,142,308
|
|
Total Investment
Income
|
|
$
|
105,847,568
|
|
$
|
75,112,576
|
|
$
|
63,678,994
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
Management
fees
|
|
$
|
15,452,347
|
|
$
|
14,848,174
|
|
$
|
13,169,606
|
|
Valuation
fees
|
|
|
373,628
|
|
|
351,752
|
|
|
313,437
|
|
Administrative services
expenses
|
|
|
1,908,191
|
|
|
1,810,576
|
|
|
1,798,966
|
|
Income incentive
fees
|
|
|
10,189,888
|
|
|
3,782,151
|
|
|
3,043,470
|
|
Capital gains incentive
(reversal) fee
|
|
|
(569,528)
|
|
|
(2,818,623)
|
|
|
2,867,131
|
|
Professional
fees
|
|
|
1,455,372
|
|
|
1,103,693
|
|
|
1,082,917
|
|
Directors'
fees
|
|
|
406,000
|
|
|
329,000
|
|
|
315,000
|
|
Insurance
expense
|
|
|
492,596
|
|
|
503,907
|
|
|
482,140
|
|
Interest expense and
other fees
|
|
|
32,011,317
|
|
|
24,469,285
|
|
|
18,721,058
|
|
Income tax
expense
|
|
|
1,333,452
|
|
|
1,161,668
|
|
|
1,102,374
|
|
Other general and
administrative expenses
|
|
|
891,170
|
|
|
984,309
|
|
|
1,006,428
|
|
Total Operating
Expenses
|
|
$
|
63,944,433
|
|
$
|
46,525,892
|
|
$
|
43,902,527
|
|
Income incentive fee
waiver
|
|
|
(307,442)
|
|
|
—
|
|
|
—
|
|
Total Operating
Expenses, net of fee waivers
|
|
$
|
63,636,991
|
|
$
|
46,525,892
|
|
$
|
43,902,527
|
|
Net Investment
Income
|
|
$
|
42,210,577
|
|
$
|
28,586,684
|
|
$
|
19,776,467
|
|
Net realized loss on
non-controlled, non-affiliated investments
|
|
$
|
(30,211,467)
|
|
$
|
3,660,595
|
|
$
|
23,710,167
|
|
Net realized loss on
foreign currency translation
|
|
|
(112,481)
|
|
|
(6,091)
|
|
|
—
|
|
Loss on debt
extinguishment
|
|
|
—
|
|
|
—
|
|
|
(539,250)
|
|
Net change in
unrealized depreciation on control investments
|
|
|
(430,577)
|
|
|
—
|
|
|
—
|
|
Net change in
unrealized appreciation (depreciation) on non-controlled,
non-affiliated investments
|
|
|
3,222,729
|
|
|
(17,542,230)
|
|
|
(6,928,160)
|
|
Net change in
unrealized (depreciation) appreciation on foreign currency
translation
|
|
|
(6,504)
|
|
|
6,040
|
|
|
—
|
|
(Provision) benefit
for taxes on net unrealized (appreciation) depreciation on
investments
|
|
|
(126,957)
|
|
|
(213,214)
|
|
|
510,868
|
|
Benefit (provision)
for taxes on net realized loss (gain) on investments
|
|
|
2,987,847
|
|
|
—
|
|
|
(2,957,220)
|
|
Net Increase in Net
Assets Resulting from Operations
|
|
$
|
17,533,167
|
|
|
14,491,784
|
|
|
33,572,872
|
|
Net Investment
Income Per Share—basic and diluted
|
|
$
|
1.92
|
|
$
|
1.46
|
|
$
|
1.01
|
|
Net Increase in Net
Assets Resulting from Operations Per Share – basic and
diluted
|
|
$
|
0.80
|
|
$
|
0.74
|
|
$
|
1.72
|
|
Weighted Average
Shares of Common Stock Outstanding—basic and diluted
|
|
|
22,004,648
|
|
|
19,552,931
|
|
|
19,489,750
|
|
Distributions Per
Share—basic and diluted
|
|
$
|
1.61
|
|
$
|
1.30
|
|
$
|
1.14
|
|
STELLUS CAPITAL
INVESTMENT CORPORATION
CONSOLIDATED
STATEMENTS OF CHANGES IN NET ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
|
|
|
Total
|
|
|
|
|
|
Number
|
|
Par
|
|
Paid-in
|
|
distributable
|
|
|
|
|
|
of shares
|
|
value
|
|
capital
|
|
(loss)
earnings
|
|
Net Assets
|
|
Balances as of
December 31, 2020
|
|
19,486,003
|
|
$
|
19,486
|
|
$
|
276,026,667
|
|
$
|
(2,685,504)
|
|
$
|
273,360,649
|
|
Net investment
income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,776,467
|
|
|
19,776,467
|
|
Net realized gain on
investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23,710,167
|
|
|
23,710,167
|
|
Loss on debt
extinguishment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(539,250)
|
|
|
(539,250)
|
|
Net change in
unrealized depreciation on investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,928,160)
|
|
|
(6,928,160)
|
|
Benefit for taxes on
unrealized depreciation on investments
|
|
|
|
|
|
|
|
|
|
|
510,868
|
|
|
510,868
|
|
Provision for taxes on
realized gain on investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,957,220)
|
|
|
(2,957,220)
|
|
Return of capital and
other tax related adjustments
|
|
—
|
|
|
—
|
|
|
(1,861,213)
|
|
|
1,861,213
|
|
|
—
|
|
Distributions from net
investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,201,567)
|
|
|
(21,201,567)
|
|
Distributions from net
realized capital gains
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,014,420)
|
|
|
(1,014,420)
|
|
Issuance of common
stock, net of offering costs(1)
|
|
31,592
|
|
|
32
|
|
|
393,667
|
|
|
—
|
|
|
393,699
|
|
Balances at
December 31, 2021
|
|
19,517,595
|
|
$
|
19,518
|
|
$
|
274,559,121
|
|
$
|
10,532,594
|
|
$
|
285,111,233
|
|
Net investment
income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,586,684
|
|
|
28,586,684
|
|
Net realized gain on
investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,660,595
|
|
|
3,660,595
|
|
Net realized loss on
foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,091)
|
|
|
(6,091)
|
|
Net change in
unrealized depreciation on investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,542,230)
|
|
|
(17,542,230)
|
|
Net change in
unrealized appreciation on foreign currency translations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,040
|
|
|
6,040
|
|
Provision for taxes on
unrealized appreciation on investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(213,214)
|
|
|
(213,214)
|
|
Return of capital and
other tax related adjustments
|
|
—
|
|
|
—
|
|
|
(1,040,884)
|
|
|
1,040,884
|
|
|
—
|
|
Distributions from net
investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21,633,343)
|
|
|
(21,633,343)
|
|
Distributions from net
realized capital gains
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,789,693)
|
|
|
(3,789,693)
|
|
Issuance of common
stock, net of offering costs(1)
|
|
149,174
|
|
|
149
|
|
|
1,596,483
|
|
|
—
|
|
|
1,596,632
|
|
Balances at
December 31, 2022
|
|
19,666,769
|
|
$
|
19,667
|
|
$
|
275,114,720
|
|
$
|
642,226
|
|
$
|
275,776,613
|
|
Net investment
income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,210,577
|
|
|
42,210,577
|
|
Net realized loss on
investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,211,467)
|
|
|
(30,211,467)
|
|
Net realized loss on
foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(112,481)
|
|
|
(112,481)
|
|
Net change in
unrealized appreciation on investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,792,152
|
|
|
2,792,152
|
|
Net change in
unrealized depreciation on foreign currency translations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,504)
|
|
|
(6,504)
|
|
Provision for taxes on
unrealized appreciation on investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(126,957)
|
|
|
(126,957)
|
|
Benefit for taxes on
realized loss on investments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,987,847
|
|
|
2,987,847
|
|
Return of capital and
other tax related adjustments
|
|
—
|
|
|
—
|
|
|
(1,348,766)
|
|
|
1,348,766
|
|
|
—
|
|
Distributions from net
investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35,080,734)
|
|
|
(35,080,734)
|
|
Distributions from net
realized capital gains
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(446,746)
|
|
|
(446,746)
|
|
Issuance of common
stock, net of offering costs(1)
|
|
4,458,873
|
|
|
4,458
|
|
|
62,153,030
|
|
|
—
|
|
|
62,157,488
|
|
Balances at
December 31, 2023
|
|
24,125,642
|
|
$
|
24,125
|
|
$
|
335,918,984
|
|
$
|
(16,003,321)
|
|
$
|
319,939,788
|
|
|
|
(1)
|
See Note 4 to the
Consolidated Financial Statements on Form 10-Q filed with the
Securities and Exchange Commission on March 4, 2024 for more
information on offering costs.
|
|
STELLUS CAPITAL
INVESTMENT CORPORATION
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
For the years
ended
|
|
|
December 31, 2023
|
|
December 31, 2022
|
|
December 31, 2021
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
|
|
Net increase in net
assets resulting from operations
|
|
$
|
17,533,167
|
|
$
|
14,491,784
|
|
$
|
33,572,872
|
|
Adjustments to
reconcile net increase in net assets from operations to net cash
used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
Purchases of
investments
|
|
|
(183,858,762)
|
|
|
(211,010,869)
|
|
|
(387,281,160)
|
|
Proceeds from sales
and repayments of investments
|
|
|
134,223,224
|
|
|
127,548,194
|
|
|
287,639,512
|
|
Net change in
unrealized (appreciation) depreciation on investments
|
|
|
(2,792,152)
|
|
|
17,542,230
|
|
|
6,928,160
|
|
Net change in
unrealized depreciation (appreciation) on foreign currency
translations
|
|
|
6,360
|
|
|
(5,897)
|
|
|
—
|
|
Increase in
investments due to PIK
|
|
|
(3,799,843)
|
|
|
(1,357,177)
|
|
|
(939,030)
|
|
Amortization of
premium and accretion of discount, net
|
|
|
(2,749,543)
|
|
|
(2,519,462)
|
|
|
(2,412,991)
|
|
Deferred tax provision
(benefit)
|
|
|
126,957
|
|
|
213,214
|
|
|
(510,868)
|
|
Amortization of loan
structure fees
|
|
|
657,323
|
|
|
567,375
|
|
|
518,930
|
|
Amortization of
deferred financing costs
|
|
|
446,720
|
|
|
446,719
|
|
|
444,153
|
|
Amortization of loan
fees on SBA-guaranteed debentures
|
|
|
1,255,753
|
|
|
1,227,952
|
|
|
1,088,132
|
|
Net realized loss
(gain) on investments
|
|
|
30,211,467
|
|
|
(3,660,595)
|
|
|
(23,703,499)
|
|
Loss on debt
extinguishment
|
|
|
—
|
|
|
—
|
|
|
539,250
|
|
Changes in other assets
and liabilities
|
|
|
|
|
|
|
|
|
|
|
Increase in interest
receivable
|
|
|
(897,929)
|
|
|
(1,039,810)
|
|
|
(755,151)
|
|
Increase in income tax
receivable
|
|
|
(1,588,708)
|
|
|
—
|
|
|
—
|
|
(Increase) decrease in
other receivables
|
|
|
(8,750)
|
|
|
20,507
|
|
|
(29,257)
|
|
Decrease (increase) in
prepaid expenses
|
|
|
60,593
|
|
|
(155,053)
|
|
|
(25,026)
|
|
(Decrease) increase in
management fees payable
|
|
|
(4,231,871)
|
|
|
3,696,182
|
|
|
628,903
|
|
Increase in income
incentive fees payable
|
|
|
420,772
|
|
|
715,278
|
|
|
1,067,470
|
|
(Decrease) increase in
capital gains incentive fees payable
|
|
|
(569,528)
|
|
|
(2,818,623)
|
|
|
2,867,130
|
|
Increase (decrease) in
administrative services payable
|
|
|
45,232
|
|
|
(29,449)
|
|
|
(5,123)
|
|
Increase in interest
payable
|
|
|
600,323
|
|
|
947,179
|
|
|
1,549,577
|
|
(Decrease) increase in
related party payable
|
|
|
(1,060,321)
|
|
|
1,060,321
|
|
|
—
|
|
Increase (decrease) in
unearned revenue
|
|
|
77,050
|
|
|
(209,051)
|
|
|
6,302
|
|
(Decrease) increase in
income tax payable
|
|
|
(1,175,373)
|
|
|
(2,094,141)
|
|
|
2,544,749
|
|
(Decrease) increase in
other accrued expenses and liabilities
|
|
|
(197,248)
|
|
|
136,635
|
|
|
164,227
|
|
Net Cash Used in
Operating Activities
|
|
$
|
(17,265,087)
|
|
$
|
(56,286,557)
|
|
$
|
(76,102,738)
|
|
Cash flows from
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
Proceeds from the
issuance of common stock
|
|
$
|
63,348,436
|
|
$
|
2,158,540
|
|
$
|
449,515
|
|
Sales load for common
stock issued
|
|
|
(943,248)
|
|
|
(31,066)
|
|
|
(2,489)
|
|
Offering costs paid
for common stock issued
|
|
|
(253,913)
|
|
|
(517,054)
|
|
|
(53,327)
|
|
Stockholder
distributions paid
|
|
|
(35,527,480)
|
|
|
(26,594,095)
|
|
|
(21,044,928)
|
|
Repayment of
Notes
|
|
|
—
|
|
|
—
|
|
|
(48,875,000)
|
|
Proceeds from issuance
of Notes
|
|
|
—
|
|
|
—
|
|
|
100,000,000
|
|
Financing costs paid
on Notes
|
|
|
—
|
|
|
—
|
|
|
(2,237,835)
|
|
Proceeds from
SBA-guaranteed debentures
|
|
|
11,400,000
|
|
|
63,600,000
|
|
|
73,500,000
|
|
Financing costs paid
on SBA-guaranteed debentures
|
|
|
(277,590)
|
|
|
(1,548,660)
|
|
|
(3,139,725)
|
|
Financing costs paid
on Credit facility
|
|
|
(2,663,106)
|
|
|
(193,635)
|
|
|
(136,219)
|
|
Borrowings under
Credit Facility
|
|
|
108,400,000
|
|
|
149,888,800
|
|
|
268,700,000
|
|
Repayments of Credit
Facility
|
|
|
(148,135,600)
|
|
|
(126,607,800)
|
|
|
(265,360,000)
|
|
Partial share
redemption
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net Cash (Used)
Provided by Financing Activities
|
|
$
|
(4,652,501)
|
|
$
|
60,155,030
|
|
$
|
101,799,992
|
|
Net (Decrease)
Increase in Cash and Cash Equivalents
|
|
$
|
(21,917,588)
|
|
$
|
3,868,473
|
|
$
|
25,697,254
|
|
Cash and Cash
Equivalents Balance at Beginning of Period
|
|
|
48,043,329
|
|
|
44,174,856
|
|
|
18,477,602
|
|
Cash and Cash
Equivalents Balance at End of Period
|
|
$
|
26,125,741
|
|
$
|
48,043,329
|
|
$
|
44,174,856
|
|
Supplemental and
Non-Cash Activities
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest
expense
|
|
$
|
29,051,198
|
|
$
|
21,280,060
|
|
$
|
15,099,656
|
|
Income and excise tax
paid
|
|
|
2,508,825
|
|
|
3,255,809
|
|
|
1,445,000
|
|
(Decrease) increase in
distributions payable
|
|
|
—
|
|
|
(1,171,059)
|
|
|
1,171,059
|
|
Increase (decrease) in
deferred offering costs
|
|
|
6,212
|
|
|
(13,788)
|
|
|
(75,112)
|
|
Gain on conversion of
equity investment
|
|
|
—
|
|
|
—
|
|
|
6,668
|
|
Exchange of
investments
|
|
|
3,610,846
|
|
|
—
|
|
|
—
|
|
Reconciliation of
Core Net Investment
Income (1)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31, 2023
|
|
December 31, 2022
|
|
December 31, 2023
|
|
December 31, 2022
|
|
Net investment
income
|
|
$11,908,914
|
|
$9,708,610
|
|
$42,210,577
|
|
$28,586,684
|
|
Capital gains incentive
reversal
|
|
—
|
|
(1,146,074)
|
|
(569,528)
|
|
(2,818,623)
|
|
Income tax
expense
|
|
251,395
|
|
94,900
|
|
1,333,452
|
|
1,161,668
|
|
Core net investment
income
|
|
$12,160,309
|
|
$8,657,436
|
|
$42,974,501
|
|
$26,929,729
|
|
|
|
|
|
|
|
|
|
|
Per share
amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
per share
|
|
$0.49
|
|
$0.50
|
|
$1.92
|
|
$1.46
|
|
Core net investment
income per share
|
|
$0.50
|
|
$0.44
|
|
$1.95
|
|
$1.38
|
|
Reconciliation of
Realized Net Investment
Income (2)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Year
Ended
|
|
|
December 31, 2023
|
|
December 31, 2022
|
|
December 31, 2023
|
|
December 31, 2022
|
|
Net investment
income
|
|
$11,908,914
|
|
$9,708,610
|
|
$42,210,577
|
|
$28,586,684
|
|
Net realized loss on
investments
|
|
(30,536,249)
|
|
(998,222)
|
|
(30,211,467)
|
|
3,660,595
|
|
Net realized loss on
foreign currency translation
|
|
(39,699)
|
|
1,935
|
|
(112,481)
|
|
(6,091)
|
|
Benefit for taxes on
realized loss on investments
|
|
2,987,847
|
|
—
|
|
2,987,847
|
|
—
|
|
Total Realized Net
Investment Income
|
|
($15,679,187)
|
|
$8,712,323
|
|
$14,874,476
|
|
$32,241,188
|
|
|
|
|
|
|
|
|
|
|
Per share
amounts:
|
|
|
|
|
|
|
|
|
|
Net investment income
per share
|
|
$0.49
|
|
$0.50
|
|
$1.92
|
|
$1.46
|
|
Realized net investment
income per share
|
|
($0.65)
|
|
$0.44
|
|
$0.68
|
|
$1.65
|
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SOURCE Stellus Capital Investment Corporation