Portman Ridge Finance Corporation (Nasdaq: PTMN) (the “Company” or
“Portman Ridge”) announced today its financial results for the
second quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Total investment
income for the second quarter of 2024 was $16.3 million,
as compared to $16.5 million for the first quarter of 2024.
- Core investment
income1, excluding the impact of purchase
price accounting, for the second quarter of 2024 was $16.2 million,
as compared to $16.5 million for the first quarter of 2024.
- Net investment income
(“NII”) for the second quarter of 2024 was $6.5 million
($0.70 per share) as compared to $6.2 million ($0.67 per share) in
the first quarter of 2024.
- Net asset value
(“NAV”), as of June 30, 2024, was $196.4 million ($21.21
per share), as compared to NAV of $210.6 million ($22.57 per share)
as of March 31, 2024.
- Total shares
repurchased in open market transactions under the Renewed
Stock Repurchase Program during the quarter ended June 30, 2024,
were 79,722 shares at an aggregate cost of approximately $1.6
million, which was accretive to NAV by $0.03 per share.
Subsequent Events
- On July 23, 2024, Great Lakes
Portman Ridge Funding LLC, a wholly-owned subsidiary of the
Company, entered into a second amendment of its senior secured
revolving credit facility (“Revolving Credit Facility”) with
JPMorgan Chase Bank, National Association (“JPM”) as administrative
agent. The second amendment, among other things, (i) provided for a
committed increase to the aggregate principal amount of the
Revolving Credit Facility in an amount not to exceed $85,000,000,
subject to the satisfaction of certain conditions, (ii) provided
for a committed seven-day bridge advance in an aggregate principal
amount of $18,250,000, subject to the satisfaction of certain
conditions, (iii) reduced the applicable margin on the Revolving
Credit Facility to 2.50% per annum, (iv) extended the period in
which the Company may request advances under the Revolving Credit
Facility to August 29, 2026, (v) extended the stated maturity of
the Revolving Credit Facility to August 29, 2027, (vi) extended the
non-call period under the Revolving Credit Facility to April 29,
2025, and (vii) provided for certain fees to be paid to the
administrative agent and the lenders in connection therewith.
- On August 8, 2024, the Company
declared a cash distribution of $0.69 per share of common stock.
The distribution is payable on August 30, 2024 to stockholders of
record at the close of business on August 22, 2024.
Management Commentary
Ted Goldthorpe, Chief Executive Officer
of Portman Ridge, stated, “We are pleased to report that
Portman Ridge delivered net investment income of $0.70 per share,
which is an increase of 4.5% from the previous quarter and exceeded
the Company’s quarterly distribution. Additionally, during the
three months ended June 30, 2024, we repurchased 79,722 shares for
an aggregate cost of approximately $1.6 million, which was
accretive to NAV by $0.03. During the quarter, however, we
experienced challenges at certain select inherited portfolio
companies, resulting in a decline in NAV and an increase in
non-accruals. Despite the challenging quarter, we remain confident
in the quality of the portfolio and our ability to generate
attractive and sustainable returns for shareholders over the
long-term.
Subsequent to quarter end, we amended and
extended our Credit Facility with JPM. The new attractive terms,
which reduced the applicable margin from 2.80% per annum to 2.50%
per annum, have reduced our overall cost of capital, providing us
with further financial flexibility. The new revolving commitment
from JPM, which increased by $85.0 million to $200.0 million,
expands our ability to provide additional capital to our existing
portfolio companies as well as provides us with greater flexibility
to finance new attractive investment opportunities as they
arise.
As we enter the back half of 2024, we want to
reiterate our commitment to our shareholders. With our amended
credit facility, robust pipeline, and strong balance sheet, we
believe we are well positioned to continue executing our strategy
and delivering positive returns to our shareholders.”
Selected Financial Highlights
- Total investment
income for the quarter ended June 30, 2024, was $16.3
million, of which $13.9 million was attributable to interest
income, inclusive of payment-in-kind income, from the Debt
Securities Portfolio. This compares to total investment income of
$19.6 million for the quarter ended June 30, 2023, of which $15.5
million was attributable to interest income, inclusive of
payment-in-kind income, from the Debt Securities Portfolio.
- Core investment
income for the second quarter of 2024, excluding the
impact of purchase discount accretion, was $16.2 million, a
decrease of $3.0 million as compared to core investment income of
$19.2 million for the second quarter of 2023.
- Net investment income
(“NII”) for the second quarter of 2024 was $6.5 million
($0.70 per share) as compared to $7.9 million ($0.83 per share) for
the same period the prior year.
- Non-accruals on debt
investments, as of June 30, 2024, were nine debt
investments representing 0.5% and 4.5% of the Company’s investment
portfolio at fair value and amortized cost, respectively. This
compares to seven debt investments representing 0.5% and 3.2% of
the Company’s investment portfolio at fair value and amortized
cost, respectively, as of March 31, 2024. Two non-accrual debt
investments were sold subsequent to the quarter ended June 30,
2024.
- Total investments at fair
value as of June 30, 2024, was $444.4 million and
consisted of investments in 92 portfolio companies. The debt
investment portfolio at fair value as of June 30, 2024 was $358.9
million, which excludes CLO Funds and Joint Ventures, and was
comprised of 75 different portfolio companies across 28 different
industries with an average par balance per entity of approximately
$2.6 million. This compares to total investments of $471.3 million
at fair value as of March 31, 2024 and consisted of investments in
94 portfolio companies. The debt investment portfolio at fair value
as of March 31, 2024 was $386.1 million, which excludes CLO Funds
and Joint Ventures, and was comprised of 79 different portfolio
companies across 27 different industries with an average par
balance per entity of approximately $3.1 million.
- Weighted average
contractual interest rate on our interest earning Debt
Securities Portfolio as of June 30, 2024 was approximately
12.4%.
- Par value of outstanding
borrowings, as of June 30, 2024, was $285.1 million
compared to $291.7 million as of March 31, 2024, with an asset
coverage ratio of total assets to total borrowings of 169% and
171%, respectively. On a net basis, leverage as of June 30, 2024
was 1.3x2 compared to net leverage of 1.2x2 as of March 31,
2024.
Results of Operations
Operating results for the three months ended
June 30, 2024, and June 30, 2023, were as follows:
|
|
For the Three Months Ended June 30, |
($ in
thousands) |
|
2024 |
|
|
|
2023 |
|
Total investment income |
|
$ |
16,337 |
|
|
$ |
19,626 |
|
Total expenses |
|
|
9,860 |
|
|
|
11,711 |
|
Net Investment
Income |
|
|
6,477 |
|
|
|
7,915 |
|
Net realized gain (loss) on investments |
|
|
(6,922 |
) |
|
|
(6,471 |
) |
Net change in unrealized gain (loss) on investments |
|
|
(5,966 |
) |
|
|
(4,176 |
) |
Tax (provision) benefit on realized and unrealized gains (losses)
on investments |
|
$ |
78 |
|
|
$ |
(164 |
) |
Net realized and unrealized appreciation (depreciation) on
investments, net of taxes |
|
$ |
(12,810 |
) |
|
$ |
(10,811 |
) |
Net
realized gain (loss) on extinguishment of debt |
|
$ |
(39 |
) |
|
$ |
(218 |
) |
Net Increase (Decrease)
in Net Assets Resulting from Operations |
|
$ |
(6,372 |
) |
|
$ |
(3,114 |
) |
Net Increase (Decrease) In Net Assets Resulting from Operations per
Common Share: |
|
|
|
|
|
Basic and Diluted: |
|
$ |
(0.69 |
) |
|
$ |
(0.33 |
) |
Net Investment Income Per Common Share: |
|
|
|
|
|
Basic and Diluted: |
|
$ |
0.70 |
|
|
$ |
0.83 |
|
Weighted Average Shares of Common
Stock Outstanding — Basic and Diluted |
|
|
9,293,687 |
|
|
|
9,541,722 |
|
|
|
|
|
|
|
|
|
|
Investment Income
The composition of our investment income for the
three months ended June 30, 2024, and June 30, 2023, was as
follows:
|
|
For the Three Months Ended June 30, |
|
($ in
thousands) |
|
2024 |
|
|
2023 |
|
Interest income, excluding CLO income and purchase discount
accretion |
|
$ |
11,589 |
|
|
$ |
14,156 |
|
Purchase discount accretion |
|
|
112 |
|
|
|
427 |
|
PIK Income |
|
|
2,201 |
|
|
|
966 |
|
CLO Income |
|
|
524 |
|
|
|
829 |
|
JV Income |
|
|
1,800 |
|
|
|
2,329 |
|
Fees and other income |
|
|
111 |
|
|
|
919 |
|
Investment
Income |
|
$ |
16,337 |
|
|
$ |
19,626 |
|
Less : Purchase discount
accretion |
|
$ |
(112 |
) |
|
$ |
(427 |
) |
Core Investment
Income |
|
$ |
16,225 |
|
|
$ |
19,199 |
|
|
|
|
|
|
|
|
|
|
Fair Value of Investments
The composition of our investment portfolio as
of June 30, 2024 and December 31, 2023, at cost and fair value was
as follows:
($ in
thousands) |
|
June 30,
2024(Unaudited) |
|
|
December 31, 2023 |
|
Security
Type |
|
Cost/AmortizedCost |
|
|
Fair Value |
|
|
Fair Value Percentage of Total Portfolio |
|
|
Cost/AmortizedCost |
|
|
Fair Value |
|
|
Fair Value Percentage of Total Portfolio |
|
First Lien Debt |
|
$ |
343,264 |
|
|
$ |
320,815 |
|
|
|
72.1 |
% |
|
$ |
351,858 |
|
|
$ |
336,599 |
|
|
|
71.9 |
% |
Second Lien Debt |
|
|
48,750 |
|
|
|
36,386 |
|
|
|
8.2 |
% |
|
|
50,814 |
|
|
|
41,254 |
|
|
|
8.8 |
% |
Subordinated Debt |
|
|
8,055 |
|
|
|
1,693 |
|
|
|
0.4 |
% |
|
|
7,990 |
|
|
|
1,224 |
|
|
|
0.3 |
% |
Collateralized Loan
Obligations |
|
|
8,423 |
|
|
|
7,354 |
|
|
|
1.7 |
% |
|
|
9,103 |
|
|
|
8,968 |
|
|
|
1.9 |
% |
Joint Ventures |
|
|
65,775 |
|
|
|
54,292 |
|
|
|
12.2 |
% |
|
|
71,415 |
|
|
|
59,287 |
|
|
|
12.7 |
% |
Equity |
|
|
30,594 |
|
|
|
23,830 |
|
|
|
5.4 |
% |
|
|
31,280 |
|
|
|
20,533 |
|
|
|
4.4 |
% |
Asset Manager
Affiliates(1) |
|
|
17,791 |
|
|
|
— |
|
|
|
— |
|
|
|
17,791 |
|
|
|
— |
|
|
|
— |
|
Derivatives |
|
|
31 |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
|
|
|
— |
|
|
|
— |
|
Total |
|
$ |
522,683 |
|
|
$ |
444,370 |
|
|
|
100.0 |
% |
|
$ |
540,282 |
|
|
$ |
467,865 |
|
|
|
100.0 |
% |
1 Represents the equity investment in the Asset Manager
Affiliates.
Liquidity and Capital
Resources
As of June 30, 2024, the Company had $285.1
million (par value) of borrowings outstanding at a current weighted
average interest rate of 6.9%, of which $108.0 million par value
had a fixed rate and $177.1 million par value had a floating rate.
This balance was comprised of $92.0 million of outstanding
borrowings under the Revolving Credit Facility, $85.1 million of
2018-2 Secured Notes, and $108.0 million of 4.875% Notes due
2026.
As of June 30, 2024, and December 31, 2023, the fair value of
investments and cash were as follows:
($ in
thousands) |
|
|
|
Security
Type |
|
June 30, 2024 |
|
|
December 31, 2023 |
|
Cash and cash equivalents |
|
$ |
9,813 |
|
|
$ |
26,912 |
|
Restricted Cash |
|
|
26,826 |
|
|
|
44,652 |
|
First Lien Debt |
|
|
320,815 |
|
|
|
336,599 |
|
Second Lien Debt |
|
|
36,386 |
|
|
|
41,254 |
|
Subordinated Debt |
|
|
1,693 |
|
|
|
1,224 |
|
Equity |
|
|
23,830 |
|
|
|
20,533 |
|
Collateralized Loan
Obligations |
|
|
7,354 |
|
|
|
8,968 |
|
Asset Management
Affiliates |
|
|
— |
|
|
|
— |
|
Joint Ventures |
|
|
54,292 |
|
|
|
59,287 |
|
Derivatives |
|
|
— |
|
|
|
— |
|
Total |
|
$ |
481,009 |
|
|
$ |
539,429 |
|
|
|
|
|
|
|
|
|
|
As of June 30, 2024, the Company had
unrestricted cash of $9.8 million and restricted cash of $26.8
million. This compares to unrestricted cash of $20.8 million and
restricted cash of $18.8 million as of March 31, 2024. As of June
30, 2024, the Company had $23.0 million of available borrowing
capacity under the Revolving Credit Facility, and no remaining
borrowing capacity under the 2018-2 Secured Notes.
Interest Rate Risk
The Company’s investment income is affected by
fluctuations in various interest rates, including SOFR and prime
rates.
As of June 30, 2024, approximately 88.1% of our
Debt Securities Portfolio at par value were either floating rate
with a spread to an interest rate index such as SOFR or the PRIME
rate. 81.6% of these floating rate loans contain SOFR floors
ranging between 0.50% and 3.25%. We generally expect that future
portfolio investments will predominately be floating rate
investments.
In periods of rising or lowering interest rates,
the cost of the portion of debt associated with the 4.875% Notes
Due 2026 would remain the same, given that this debt is at a fixed
rate, while the interest rate on borrowings under the Revolving
Credit Facility would fluctuate with changes in interest rates.
Generally, the Company would expect that an
increase in the base rate index for floating rate investment assets
would increase gross investment income and a decrease in the base
rate index for such assets would decrease gross investment income
(in either case, such increase/decrease may be limited by interest
rate floors/minimums for certain investment assets).
|
|
Impact on net investment income froma
change in interest rates at: |
($ in
thousands) |
|
1% |
|
2% |
|
3% |
Increase in interest rate |
|
$ |
1,764 |
|
|
$ |
3,528 |
|
|
$ |
5,292 |
|
Decrease in interest rate |
|
$ |
(1,764 |
) |
|
$ |
(3,528 |
) |
|
$ |
(5,252 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast We
will hold a conference call on Friday, August 9, 2024, at 10:00 am
Eastern Time to discuss our second quarter 2024 financial results.
To access the call, stockholders, prospective stockholders and
analysts should dial (646) 307-1963 approximately 10 minutes prior
to the start of the conference call and use the conference ID
9474953.
A live audio webcast of the conference call can
be accessed via the Internet, on a listen-only basis on the
Company’s website www.portmanridge.com in the Investor Relations
section under Events and Presentations. The webcast can also be
accessed by clicking the following link:
https://edge.media-server.com/mmc/p/zqckbjgv. The online archive of
the webcast will be available on the Company’s website shortly
after the call.
About Portman Ridge Finance
CorporationPortman Ridge Finance Corporation (Nasdaq:
PTMN) is a publicly traded, externally managed investment company
that has elected to be regulated as a business development company
under the Investment Company Act of 1940. Portman Ridge’s middle
market investment business originates, structures, finances and
manages a portfolio of term loans, mezzanine investments and
selected equity securities in middle market companies. Portman
Ridge’s investment activities are managed by its investment
adviser, Sierra Crest Investment Management LLC, an affiliate of BC
Partners Advisors L.P.
Portman Ridge’s filings with the Securities and
Exchange Commission (the “SEC”), earnings releases, press releases
and other financial, operational and governance information are
available on the Company’s website at
www.portmanridge.com.
About BC Partners Advisors L.P. and BC
Partners CreditBC Partners is a leading international
investment firm in private equity, private credit and real estate
strategies. Established in 1986, BC Partners has played an active
role in developing the European buyout market for three decades.
Today, BC Partners executives operate across markets as an
integrated team through the firm’s offices in North America and
Europe. For more information, please visit
https://www.bcpartners.com/.
BC Partners Credit was launched in February 2017
and has pursued a strategy focused on identifying attractive credit
opportunities in any market environment and across sectors,
leveraging the deal sourcing and infrastructure made available from
BC Partners.
Cautionary Statement Regarding
Forward-Looking Statements This press release contains
forward-looking statements. The matters discussed in this press
release, as well as in future oral and written statements by
management of Portman Ridge Finance Corporation, that are
forward-looking statements are based on current management
expectations that involve substantial risks and uncertainties which
could cause actual results to differ materially from the results
expressed in, or implied by, these forward-looking statements.
Forward-looking statements relate to future
events or our future financial performance and include, but are not
limited to, projected financial performance, expected development
of the business, plans and expectations about future investments
and the future liquidity of the Company. We generally identify
forward-looking statements by terminology such as “may,” “will,”
“should,” “expects,” “plans,” “anticipates,” “could,” “intends,”
“target,” “projects,” “outlook”, “contemplates,” “believes,”
“estimates,” “predicts,” “potential” or “continue” or the negative
of these terms or other similar words. Forward-looking statements
are based upon current plans, estimates and expectations that are
subject to risks, uncertainties, and assumptions. Should one or
more of these risks or uncertainties materialize, or should
underlying assumptions prove to be incorrect, actual results may
vary materially from those indicated or anticipated by such
forward-looking statements.
Important assumptions include our ability to
originate new investments, and achieve certain margins and levels
of profitability, the availability of additional capital, and the
ability to maintain certain debt to asset ratios. In light of these
and other uncertainties, the inclusion of a projection or
forward-looking statement in this press release should not be
regarded as a representation that such plans, estimates,
expectations or objectives will be achieved. Important factors that
could cause actual results to differ materially from such plans,
estimates or expectations include, among others,
(1) uncertainty of the expected financial performance of the
Company; (2) expected synergies and savings associated with merger
transactions effectuated by the Company; (3) the ability of the
Company and/or its adviser to implement its business strategy;
(4) evolving legal, regulatory and tax regimes;
(5) changes in general economic and/or industry specific
conditions, including but not limited to the impact of inflation;
(6) the impact of increased competition; (7) business
prospects and the prospects of the Company’s portfolio companies;
(8) contractual arrangements with third parties; (9) any
future financings by the Company; (10) the ability of Sierra
Crest Investment Management LLC to attract and retain highly
talented professionals; (11) the Company’s ability to fund any
unfunded commitments; (12) any future distributions by the
Company; (13) changes in regional or national economic conditions
and their impact on the industries in which we invest; and (14)
other changes in the conditions of the industries in which we
invest and other factors enumerated in our filings with the SEC.
The forward-looking statements should be read in conjunction with
the risks and uncertainties discussed in the Company’s filings with
the SEC, including the Company’s most recent Form 10-K and other
SEC filings. We do not undertake to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required to be reported under
the rules and regulations of the SEC.
Contacts:Portman Ridge Finance
Corporation
650 Madison Avenue, 3rd floorNew York, NY
10022info@portmanridge.com
Brandon SatorenChief Financial
OfficerBrandon.Satoren@bcpartners.com (212) 891-2880
The Equity Group Inc.Lena
Catilcati@equityny.com (212) 836-9611
Val Ferrarovferraro@equityny.com (212)
836-9633
PORTMAN RIDGE FINANCE
CORPORATIONCONSOLIDATED BALANCE
SHEETS(in thousands, except share
and per share amounts)
|
June 30, 2024 |
|
|
December 31, 2023 |
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
Investments at fair
value: |
|
|
|
|
|
Non-controlled/non-affiliated investments (amortized cost: 2024 -
$409,486; 2023 - $426,630) |
$ |
370,359 |
|
|
$ |
398,325 |
|
Non-controlled affiliated investments (amortized cost: 2024 -
$62,769; 2023 - $55,611) |
|
60,464 |
|
|
|
55,222 |
|
Controlled affiliated investments (cost: 2024 - $50,428; 2023 -
$58,041) |
|
13,547 |
|
|
|
14,318 |
|
Total Investments at Fair
Value (cost: 2024 - $522,683; 2023 - $540,282) |
$ |
444,370 |
|
|
$ |
467,865 |
|
Cash and cash equivalents |
|
9,813 |
|
|
|
26,912 |
|
Restricted cash |
|
26,826 |
|
|
|
44,652 |
|
Interest receivable |
|
4,659 |
|
|
|
5,162 |
|
Receivable for unsettled
trades |
|
— |
|
|
|
573 |
|
Due from affiliates |
|
1,544 |
|
|
|
1,534 |
|
Other assets |
|
1,599 |
|
|
|
2,541 |
|
Total
Assets |
$ |
488,811 |
|
|
$ |
549,239 |
|
LIABILITIES |
|
|
|
|
|
2018-2 Secured Notes (net of
discount of: 2024 - $414; 2023 - $712) |
$ |
84,656 |
|
|
$ |
124,971 |
|
4.875% Notes Due 2026 (net of
discount of: 2024 - $974; 2023 - $1,225; net of deferred financing
costs of: 2024 - $430; 2023 - $561) |
|
106,596 |
|
|
|
106,214 |
|
Great Lakes Portman Ridge
Funding LLC Revolving Credit Facility (net of deferred financing
costs of: 2024 - $609; 2023 - $775) |
|
91,391 |
|
|
|
91,225 |
|
Payable for unsettled
trades |
|
37 |
|
|
|
520 |
|
Accounts payable, accrued
expenses and other liabilities |
|
2,700 |
|
|
|
4,252 |
|
Accrued interest payable |
|
3,537 |
|
|
|
3,928 |
|
Due to affiliates |
|
411 |
|
|
|
458 |
|
Management and incentive fees
payable |
|
3,054 |
|
|
|
4,153 |
|
Total
Liabilities |
$ |
292,382 |
|
|
$ |
335,721 |
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
NET
ASSETS |
|
|
|
|
|
Common stock, par value $0.01
per share, 20,000,000 common shares authorized; 9,951,485 issued,
and 9,260,495 outstanding at June 30, 2024, and 9,943,385
issued, and 9,383,132 outstanding at December 31, 2023 |
$ |
93 |
|
|
$ |
94 |
|
Capital in excess of par
value |
|
715,488 |
|
|
|
717,835 |
|
Total distributable (loss)
earnings |
|
(519,152 |
) |
|
|
(504,411 |
) |
Total Net
Assets |
$ |
196,429 |
|
|
$ |
213,518 |
|
Total Liabilities and
Net Assets |
$ |
488,811 |
|
|
$ |
549,239 |
|
Net Asset Value Per Common
Share |
$ |
21.21 |
|
|
$ |
22.76 |
|
|
|
|
|
|
|
|
|
PORTMAN RIDGE FINANCE
CORPORATIONCONSOLIDATED STATEMENTS OF
OPERATIONS(in thousands, except
share and per share amounts)
|
|
For the Three Months Ended June 30, |
|
|
For the Six Months Ended June 30, |
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
INVESTMENT
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated investments |
|
$ |
11,913 |
|
|
$ |
14,786 |
|
|
$ |
24,534 |
|
|
$ |
29,632 |
|
Non-controlled affiliated investments |
|
|
312 |
|
|
|
626 |
|
|
|
407 |
|
|
|
1,475 |
|
Total interest income |
|
$ |
12,225 |
|
|
$ |
15,412 |
|
|
$ |
24,941 |
|
|
$ |
31,107 |
|
Payment-in-kind income: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated investments(1) |
|
$ |
2,018 |
|
|
$ |
859 |
|
|
$ |
3,912 |
|
|
$ |
2,386 |
|
Non-controlled affiliated investments |
|
|
183 |
|
|
|
107 |
|
|
|
295 |
|
|
|
180 |
|
Total payment-in-kind income |
|
$ |
2,201 |
|
|
$ |
966 |
|
|
$ |
4,207 |
|
|
$ |
2,566 |
|
Dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled affiliated investments |
|
$ |
1,800 |
|
|
$ |
1,864 |
|
|
$ |
3,453 |
|
|
$ |
3,248 |
|
Controlled affiliated investments |
|
|
— |
|
|
|
465 |
|
|
|
— |
|
|
|
1,540 |
|
Total dividend income |
|
$ |
1,800 |
|
|
$ |
2,329 |
|
|
$ |
3,453 |
|
|
$ |
4,788 |
|
Fees and other income |
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated investments |
|
$ |
111 |
|
|
$ |
905 |
|
|
$ |
262 |
|
|
$ |
1,478 |
|
Non-controlled affiliated investments |
|
|
— |
|
|
|
14 |
|
|
|
— |
|
|
|
14 |
|
Total fees and other income |
|
$ |
111 |
|
|
$ |
919 |
|
|
$ |
262 |
|
|
$ |
1,492 |
|
Total investment income |
|
$ |
16,337 |
|
|
$ |
19,626 |
|
|
$ |
32,863 |
|
|
$ |
39,953 |
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
Management fees |
|
$ |
1,680 |
|
|
$ |
1,869 |
|
|
$ |
3,409 |
|
|
$ |
3,822 |
|
Performance-based incentive fees |
|
|
1,374 |
|
|
|
1,680 |
|
|
|
2,608 |
|
|
|
3,488 |
|
Interest and amortization of debt issuance costs |
|
|
5,365 |
|
|
|
6,372 |
|
|
|
11,091 |
|
|
|
12,704 |
|
Professional fees |
|
|
631 |
|
|
|
699 |
|
|
|
1,397 |
|
|
|
1,302 |
|
Administrative services expense |
|
|
361 |
|
|
|
659 |
|
|
|
717 |
|
|
|
1,330 |
|
Other general and administrative expenses |
|
|
449 |
|
|
|
432 |
|
|
|
939 |
|
|
|
863 |
|
Total expenses |
|
$ |
9,860 |
|
|
$ |
11,711 |
|
|
$ |
20,161 |
|
|
$ |
23,509 |
|
NET INVESTMENT
INCOME |
|
$ |
6,477 |
|
|
$ |
7,915 |
|
|
$ |
12,702 |
|
|
$ |
16,444 |
|
REALIZED AND
UNREALIZED GAINS (LOSSES) ON INVESTMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses)
from investment transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated investments |
|
$ |
(694 |
) |
|
$ |
(5,267 |
) |
|
$ |
(2,335 |
) |
|
$ |
(8,352 |
) |
Non-controlled affiliated investments |
|
|
— |
|
|
|
(1,124 |
) |
|
|
— |
|
|
|
(1,124 |
) |
Controlled affiliated investments |
|
|
(6,228 |
) |
|
|
(80 |
) |
|
|
(6,644 |
) |
|
|
(80 |
) |
Net realized gain (loss) on investments |
|
$ |
(6,922 |
) |
|
$ |
(6,471 |
) |
|
$ |
(8,979 |
) |
|
$ |
(9,556 |
) |
Net change in unrealized
appreciation (depreciation) on: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated investments |
|
$ |
(10,163 |
) |
|
$ |
(5,478 |
) |
|
$ |
(10,822 |
) |
|
$ |
(8,535 |
) |
Non-controlled affiliated investments |
|
|
(2,055 |
) |
|
|
766 |
|
|
|
(1,915 |
) |
|
|
455 |
|
Controlled affiliated investments |
|
|
6,252 |
|
|
|
536 |
|
|
|
6,842 |
|
|
|
(2,056 |
) |
Net change in unrealized gain (loss) on investments |
|
$ |
(5,966 |
) |
|
$ |
(4,176 |
) |
|
$ |
(5,895 |
) |
|
$ |
(10,136 |
) |
Tax (provision) benefit on
realized and unrealized gains (losses) on investments |
|
$ |
78 |
|
|
$ |
(164 |
) |
|
$ |
537 |
|
|
$ |
407 |
|
Net realized and unrealized appreciation (depreciation) on
investments, net of taxes |
|
$ |
(12,810 |
) |
|
$ |
(10,811 |
) |
|
$ |
(14,337 |
) |
|
$ |
(19,285 |
) |
Net realized gain (loss) on
extinguishment of debt |
|
$ |
(39 |
) |
|
$ |
(218 |
) |
|
$ |
(252 |
) |
|
$ |
(218 |
) |
NET INCREASE
(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
|
$ |
(6,372 |
) |
|
$ |
(3,114 |
) |
|
$ |
(1,887 |
) |
|
$ |
(3,059 |
) |
Net Increase (Decrease) In Net Assets Resulting from Operations per
Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted: |
|
$ |
(0.69 |
) |
|
$ |
(0.33 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.32 |
) |
Net Investment Income Per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted: |
|
$ |
0.70 |
|
|
$ |
0.83 |
|
|
$ |
1.36 |
|
|
$ |
1.72 |
|
Weighted Average Shares of Common Stock Outstanding—Basic and
Diluted |
|
|
9,293,687 |
|
|
|
9,541,722 |
|
|
|
9,319,272 |
|
|
|
9,548,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) During the six months ended June 30, 2024, the Company
received $0.1 million of non-recurring fee income that was paid
in-kind and included in this financial statement line item. During
the six months ended June 30, 2023, the Company received $0.3
million of non-recurring fee income that was paid in-kind and
included in this financial statement line item.
1 Core investment income represents reported total investment
income as determined in accordance with U.S. generally accepted
accounting principles, or U.S. GAAP, less the impact of purchase
discount accretion in connection with the Garrison Capital Inc.
(“GARS”) and Harvest Capital Credit Corporation (“HCAP”) mergers.
Portman Ridge believes presenting core investment income and the
related per share amount is useful and appropriate supplemental
disclosure for analyzing its financial performance due to the
unique circumstance giving rise to the purchase accounting
adjustment. However, core investment income is a non-U.S. GAAP
measure and should not be considered as a replacement for total
investment income and other earnings measures presented in
accordance with U.S. GAAP. Instead, core investment income should
be reviewed only in connection with such U.S. GAAP measures in
analyzing Portman Ridge’s financial performance.2 Net leverage is
calculated as the ratio between (A) debt, excluding unamortized
debt issuance costs, less available cash and cash equivalents, and
restricted cash and (B) NAV. Portman Ridge believes presenting a
net leverage ratio is useful and appropriate supplemental
disclosure because it reflects the Company’s financial condition
net of $36.6 million and $39.6 million of cash and cash equivalents
and restricted cash as of June 30, 2024 and March 31, 2024,
respectively. However, the net leverage ratio is a non-U.S. GAAP
measure and should not be considered as a replacement for the
regulatory asset coverage ratio and other similar information
presented in accordance with U.S. GAAP. Instead, the net leverage
ratio should be reviewed only in connection with such U.S. GAAP
measures in analyzing Portman Ridge’s financial condition.
Portman Ridge Finance (NASDAQ:PTMN)
Gráfica de Acción Histórica
De Oct 2024 a Nov 2024
Portman Ridge Finance (NASDAQ:PTMN)
Gráfica de Acción Histórica
De Nov 2023 a Nov 2024