CHICAGO, March 04, 2016 (GLOBE NEWSWIRE) — Monroe Capital Corporation (Nasdaq:MRCC) (“Monroeâ€) today announced its financial results for the fourth quarter and full year ended December 31, 2015.The Board of Directors of Monroe also declared its first quarter dividend of $0.35 per share, payable on March 31, 2016 to stockholders of record on March 15, 2016.
Except where the context suggests otherwise, the terms “Monroe,†“we,†“us,†“our,†and “Company†refer to Monroe Capital Corporation.
Fourth Quarter 2015 Financial Highlights
- Net investment income of $5.0 million, or $0.39 per share
- Adjusted Net Investment Income (a non-GAAP measure described below) of $5.1 million, or $0.40 per share
- Net increase in net assets resulting from operations of $4.2 million, or $0.33 per share
- Net asset value (“NAVâ€) of $184.5 million, or $14.19 per share
- Paid quarterly dividend of $0.35 per share on December 30, 2015
- Amended and extended the Company’s revolving credit facility, increased commitments to $160.0 million, reduced pricing by 25 bps and extended the facility’s maturity date by three additional years
Full Year 2015 Financial Highlights
- Net investment income of $18.7 million, or $1.60 per share as compared to $15.1 million, or $1.57 per share, for the year ended December 31, 2014
- Adjusted Net Investment Income (a non-GAAP measure described below) of $18.8 million, or $1.61 per share as compared to $14.9 million, or $1.56 per share, for the year ended December 31, 2014
- Net increase in net assets resulting from operations of $17.9 million, or $1.53 per share as compared to $13.9 million, or $1.45 per share for the year ended December 31, 2014
- NAV of $184.5 million, or $14.19 per share, a $0.14 per share increase from $14.05 per share at  December 31, 2014
Chief Executive Officer Theodore L. Koenig commented, “We are pleased to report continued strong earnings for the fourth quarter of 2015, with Adjusted Net Investment Income of $0.40 per share, comfortably covering our dividend of $0.35 per share. This quarter represents our seventh consecutive quarter of dividend coverage; a record we are quite proud of in the current market environment when many BDCs are struggling. We are pleased to continue to provide our stockholders consistent, strong quarterly results, a solid quarterly dividend and a very stable book value in a challenging market environment, when many of our BDC peers have experienced significant realized and unrealized losses and declines in both NAV and net investment income.We believe the Company has a solid, well performing investment portfolio, evidenced by zero exposure to the Metals and Mining and the Oil and Gas Exploration & Production industries, as designated by Standard and Poor’s, which have experienced significant performance issues and increased defaults. Finally, we have recently begun the process to take advantage of the new legislation allowing an upsize in the SBIC family of funds limitation and hope to be in a position to access additional SBA-guaranteed debentures on behalf of the Company in the coming months.Our current expectation is, pending SBA approval, to allocate up to an additional $80 million of SBA-guaranteed debentures to the Company, the terms of which are very favorable to the Company.â€
Monroe Capital Corporation is the business development company affiliate of the award winning private debt investment firm and lender, Monroe Capital.
Growth of the Investment Portfolio
The following charts depict the growth of the Company’s investment portfolio since the pricing of its initial public offering on October 24, 2012:
http://www.globenewswire.com/NewsRoom/AttachmentNg/ceb15dc4-90a7-47c0-b8d4-1e215a45744c
http://www.globenewswire.com/NewsRoom/AttachmentNg/72003b91-0771-46d4-a6a4-9d1df545378d
Selected Financial Highlights
(in thousands, except per share data)
| Â | December 31, 2015 | Â | September 30, 2015 | Â | ||||
| Consolidated Statements of Assets and Liabilities data: | (audited) | Â | (unaudited) | Â | ||||
| Investments, at fair value | $ | 341,091 | Â | Â | $ | 329,731 | Â | Â |
| Total assets | $ | 360,879 | Â | Â | $ | 343,504 | Â | Â |
| Net asset value | $ | 184,535 | Â | Â | $ | 179,868 | Â | Â |
| Net asset value per share | $ | 14.19 | Â | Â | $ | 14.21 | Â | Â |
| Â | Â | Â | Â | Â | ||||
| Â | For the quarter ended | Â | ||||||
| Â | December 31, 2015 | Â | September 30, 2015 | Â | ||||
| Consolidated Statements of Operations data: | (unaudited) | Â | ||||||
| Net investment income | $ | 5,005 | Â | Â | $ | 4,498 | Â | Â |
| Adjusted net investment income (1) | $ | 5,085 | Â | Â | $ | 4,498 | Â | Â |
| Net gain (loss) on investments and secured borrowings | $ | (793 | ) | Â | $ | 242 | Â | Â |
| Net increase in net assets resulting from operations | $ | 4,212 | Â | Â | $ | 4,740 | Â | Â |
| Â | Â | Â | Â | Â | ||||
| Per share data: | Â | Â | Â | Â | ||||
| Net investment income | $ | 0.39 | Â | Â | $ | 0.36 | Â | Â |
| Adjusted net investment income (1) | $ | 0.40 | Â | Â | $ | 0.36 | Â | Â |
| Net gain (loss) on investments and secured borrowings | $ | (0.06 | ) | Â | $ | 0.02 | Â | Â |
| Net increase in net assets resulting from operations | $ | 0.33 | Â | Â | $ | 0.38 | Â | Â |
| Â | Â | Â | Â | Â | ||||
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(1) See Non-GAAP Financial Measure – Adjusted Net Investment Income below for a detailed description of this non-GAAP measure and a reconciliation from net investment income to Adjusted Net Investment Income.The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company.
Portfolio Review
The Company had debt and equity investments in 55 portfolio companies, with a total fair value of $341.1 million, as of December 31, 2015 as compared to debt and equity investments in 55 portfolio companies, with a total fair value of $329.7 million, as of September 30, 2015. The Company’s portfolio consists primarily of first lien loans, representing 75.9% of the portfolio as of December 31, 2015 and 77.5% of the portfolio as of September 30, 2015. As of December 31, 2015, the weighted average contractual yield on the Company’s investments was 10.3% and the effective yield was 10.6% as compared to the weighted average contractual yield of 10.5% and effective yield of 10.7% as of September 30, 2015.
Financial Review
Results of Operations: Fourth Quarter 2015
Net investment income for the quarter ended December 31, 2015 totaled $5.0 million, or $0.39 per share, compared to $4.5 million, or $0.36 per share, for the quarter ended September 30, 2015. Adjusted Net Investment Income was $5.1 million, or $0.40 per share, for the quarter ended December 31, 2015, compared to $4.5 million, or $0.36 per share, for the quarter ended September 30, 2015. The increase in Adjusted Net Investment Income was primarily driven by an increase in interest and dividend income, partially offset by an increase in expenses. The Company believes that Adjusted Net Investment Income is a consistent measure of the Company’s earnings – see Non-GAAP Financial Measure – Adjusted Net Investment Income discussion below.The Company’s investment income increased by $0.06 per share during the fourth quarter, driven primarily by increase in the size of the investment portfolio and an increase in dividend income.The increase in the Company’s expenses during the quarter is driven by increases in interest expense as a result of higher average borrowings on the Company’s revolving credit facility and increases in base management fees, both as a result of the increase in the size of the investment portfolio.
Net gain (loss) on investments and secured borrowings was ($0.8) million for the quarter ended December 31, 2015, compared to $0.2 million for the quarter ended September 30, 2015. The net loss on investments and secured borrowings during the quarter ended December 31, 2015 was primarily the result of net unrealized mark-to-market losses on investments in the portfolio, due in part to market conditions.These net unrealized mark-to-market losses were partially offset by a realized gain on an equity position during the quarter.
Net increase in net assets resulting from operations was $4.2 million, or $0.33 per share, for the quarter ended December 31, 2015, compared to $4.7 million, or $0.38 per share, for the quarter ended September 30, 2015.This decrease is primarily the result of increased net mark-to-market declines on the portfolio during the quarter, due in part to market conditions.These net unrealized mark-to-market declines were partially offset by an increase in net investment income.The Company’s NAV decreased very slightly on a per share basis to $14.19 per share at December 31, 2015 from $14.21 per share at September 30, 2015.Â
Results of Operations: Full Year 2015
Net investment income for the year ended December 31, 2015 totaled $18.7 million, or $1.60 per share, compared to $15.1 million, or $1.57 per share, for the year ended December 31, 2014. Adjusted Net Investment Income was $18.8 million, or $1.61 per share, for the year ended December 31, 2015, compared to $14.9 million, or $1.56 per share, for the year ended December 31, 2014. On a per share basis, the increase in Adjusted Net Investment Income per share is primarily driven by a $0.04 per share increase in investment income.The increase in investment income is primarily driven by a $0.07 per share increase in core investment income (including cash interest, payment-in-kind interest and dividend income), partially offset by a $0.03 per share decline in prepayment and other fees and paydown gains (losses) during the year.
