StoneCastle Financial Corp. Reports Second Quarter 2020 Results
Second Quarter 2020 Investment Highlights:
- Invested
$36.3 million in six investments - Realized proceeds of
$5.0 million from the partial sale of one investment - Realized proceeds from paydowns of
$598,996 from two investments
A complete listing of investments as of the end of the quarter can be found on the Company’s website at www.stonecastle-financial.com.
The estimated annualized yield generated by the invested portfolio as of
Second Quarter 2020 Financial Results
Net investment income was
In the second quarter, the Company paid a cash distribution of
The Company had
Portfolio and Investment Summary
As of the close of business on
During the quarter, the Company invested a total of
Quarterly Conference Call
The conference call can be accessed by dialing 1-877-407-9039 for domestic callers or 1-201-689-8470 for international callers. Participants may also access the call via live webcast by visiting
About
Disclaimer and Risk Factors:
There is no assurance that
The Annual Report, Semi-Annual Report and other regulatory filings of the Company with the
CONTACT: | Investor Contact: |
212-468-5441 |
Statement of Assets and Liabilities (unaudited) | |||||||||
Assets | |||||||||
Investments in securities, at fair value (cost: |
$ | 165,755,271 | $ | 132,978,058 | |||||
Cash | 271,693 | 62,841 | |||||||
Foreign cash (cost: |
5,036,962 | - | |||||||
Unrealized appreciation on forward currency exchange contracts | 347 | - | |||||||
Interest and dividends receivable | 2,333,443 | 1,288,615 | |||||||
Prepaid assets | 586,535 | 594,907 | |||||||
Total assets | 173,984,251 | 134,924,421 | |||||||
Liabilities | |||||||||
Loan payable | 33,000,000 | 9,000,000 | |||||||
Payable for securities purchased | 5,181,389 | - | |||||||
Options written, at value (premiums received |
1,513,750 | - | |||||||
Investment advisory fee payable | 750,435 | 587,069 | |||||||
Loan interest payable | 33,856 | 3,829 | |||||||
Directors fee payable | - | 92,603 | |||||||
Accrued expenses payable | 445,588 | 562,442 | |||||||
Total liabilities | 40,925,018 | 10,245,943 | |||||||
Net Assets | $ | 133,059,234 | $ | 124,678,478 | |||||
Net Assets consist of: | |||||||||
Common stock at par ( |
$ | 6,564 | $ | 6,562 | |||||
144,961,221 | 143,912,066 | ||||||||
Total distributable earnings / (loss) | (11,908,551 | ) | (19,240,150 | ) | |||||
Net Assets | $ | 133,059,234 | $ | 124,678,478 | |||||
Net Asset Value Per Share: | |||||||||
Common Stock Shares Outstanding | 6,563,892 | 6,561,700 | |||||||
Net asset value per common share | $ | 20.27 | $ | 19.00 | |||||
Market price per share | $ | 15.90 | $ | 16.23 | |||||
Market price discount to net asset value per share | -21.56 | % | -14.58 | % | |||||
Statement of Operations (unaudited) | ||||||||
For The Three Months Ended |
For The Three Months Ended |
|||||||
Investment Income | ||||||||
Interest | $ | 2,873,378 | $ | 2,809,760 | ||||
Dividends | 1,008,211 | 737,056 | ||||||
Origination fee income | 36,853 | 27,402 | ||||||
Other Income (service fees and due diligence fees) | 99,530 | 111,075 | ||||||
Total Investment Income | 4,017,972 | 3,685,293 | ||||||
Expenses | ||||||||
Investment advisory fees | 750,435 | 587,069 | ||||||
Interest expense | 183,810 | 166,826 | ||||||
Directors' fees | 101,156 | 77,399 | ||||||
Transfer agent, custodian fees and administrator fees | 72,364 | 72,364 | ||||||
Bank administration fees | 40,018 | 40,017 | ||||||
Professional fees | 39,774 | 39,773 | ||||||
ABA marketing and licensing fees | 37,431 | 37,437 | ||||||
Investor relations fees | 30,866 | 30,865 | ||||||
22,693 | 22,694 | |||||||
Insurance expense | 17,950 | 17,951 | ||||||
Valuation fees | 14,987 | 14,988 | ||||||
Printing | 14,511 | 14,511 | ||||||
Miscellaneous fees (proxy, rating agency, etc.) | 29,512 | 33,261 | ||||||
Total expenses | 1,355,507 | 1,155,155 | ||||||
Net Investment Income | 2,662,465 | 2,530,138 | ||||||
Realized and Unrealized Gain / (Loss) on Investments and Foreign Currency Transactions | ||||||||
Net realized loss on investments | (327,535 | ) | (301,223 | ) | ||||
Net realized loss from forward foreign currency transactions | (208,064 | ) | - | |||||
Net realized loss from foreign currency transactions | (228,928 | ) | - | |||||
Net change in net unrealized appreciation / depreciation on investments | 8,643,982 | (18,304,949 | ) | |||||
Net change in unrealized appreciation on written options | 287,330 | - | ||||||
Net change in unrealized appreciation on forward currency transactions | 347 | - | ||||||
Net change in unrealized appreciation on foreign currency transactions | 7,252 | - | ||||||
Net realized and unrealized gain/(loss) on investments, written options, forward foreign currency contracts and foreign currency transactions | 8,174,384 | (18,606,172 | ) | |||||
Net Increase / (Decrease) in Net Assets Resulting From Operations | $ | 10,836,849 | $ | (16,076,034 | ) | |||
Financial Highlights (unaudited) | |||||
For The Three Months Ended |
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Per Share Operating Performance | |||||
Net Asset Value, beginning of period | $ | 19.00 | |||
Net investment income(1) | 0.41 | ||||
Net realized and unrealized gain / (loss) on investments | 1.24 | ||||
Total from investment operations | 1.65 | ||||
Less distributions to shareholders | |||||
From net investment income | (0.38 | ) | |||
Total distributions | (0.38 | ) | |||
Net asset value, end of period | $ | 20.27 | |||
Per share market value, end of period | $ | 15.90 | |||
Total Investment Return (2) | |||||
Based on market value | 0.15 | % | |||
Based on net asset value | 9.06 | % | |||
Ratios and Supplemental Data | |||||
Net assets, end of period (in millions) | $ | 133.1 | |||
Ratios (as a percentage to average net assets): | |||||
Expenses before waivers(3)(4)* | 4.10 | % | |||
Expenses after waivers(5)* | 4.10 | % | |||
Net investment income(6)* | 8.05 | % | |||
Portfolio turnover rate ** | 13 | % | |||
Revolving Credit Agreement | |||||
Total revolving credit agreement outstanding (000's) | $ | 33,000 | |||
Asset coverage per |
5,032 | ||||
(1 | ) | Based on the average shares outstanding during quarter. | |||
(2 | ) | Reflects reinvestment of distributions at the price obtained under the Dividend Reinvestment Plan. | |||
Total return does not include sales load and offering expenses and are not annualized. | |||||
(3 | ) | Excluding interest expense, the ratio would have been 3.54%. | |||
(4 | ) | Ratio of expenses before waivers to average managed assets equals 3.13%. | |||
(5 | ) | Ratio of expenses after waivers to average managed assets equals 3.13%. | |||
(6 | ) | Ratio of net investment income to average managed assets equals 6.15%. | |||
(7 | ) | Calculated by subtracting the Company's total liabilities (excluding the loan) from the Company's | |||
total assets and dividing the amount by the loan outstanding in 000's. | |||||
* | Annualized | ||||
** | Not-annualized |
Source: StoneCastle Financial Corp.