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Crescent Capital BDC, Inc. Reports Second Quarter 2024 Earnings Results; Declares a Third Quarter Base Dividend of $0.42 Per Share, and a Second Quarter Supplemental Dividend of $0.09 Per Share
المصدر: Nasdaq GlobeNewswire / 12 أغسطس 2024 16:15:00 America/New_York
LOS ANGELES, Aug. 12, 2024 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (“Crescent BDC” or “Company”) (NASDAQ: CCAP) today reported net investment income of $0.59 per share and net income of $0.55 per share for the quarter ended June 30, 2024. Net asset value per share increased to $20.30 compared to $20.28 as of March 31, 2024.
Dividend Declarations
The Company’s Board of Directors (the “Board”) declared a third quarter 2024 regular cash dividend of $0.42 per share to stockholders of record as of September 30, 2024, payable on October 15, 2024. The Board also announced a second quarter 2024 supplemental cash dividend of $0.09 per share to stockholders of record as of August 31, 2024, payable on September 16, 2024.
Selected Financial Highlights
($ in millions, except per share amounts)As of and for the three months ended June 30, 2024 March 31, 2024 June 30, 2023 Investments, at fair value $ 1,610.8 $ 1,563.3 $ 1,581.1 Total assets $ 1,672.4 $ 1,620.4 $ 1,624.6 Total net assets $ 752.4 $ 751.7 $ 725.8 Net asset value per share $ 20.30 $ 20.28 $ 19.58 Investment income $ 48.9 $ 50.4 $ 46.7 Net investment income $ 21.7 $ 23.4 $ 20.6 Net realized gains (losses), net of taxes $ (4.1 ) $ (0.2 ) $ (6.6 ) Net change in unrealized gains (losses), net of taxes $ 2.8 $ 4.9 $ 8.6 Net increase (decrease) in net assets resulting from operations $ 20.4 $ 28.0 $ 22.6 Net investment income per share $ 0.59 $ 0.63 $ 0.56 Net realized gains (losses) per share, net of taxes $ (0.11 ) $ (0.00 ) $ (0.18 ) Net change in unrealized gains (losses) per share, net of taxes $ 0.07 $ 0.13 $ 0.23 Net increase (decrease) in net assets resulting from operations per share $ 0.55 $ 0.76 $ 0.61 Regular distributions paid per share $ 0.42 $ 0.41 $ 0.41 Supplemental distributions paid per share $ 0.11 $ 0.10 - Weighted average yield on income producing securities (at cost)1 12.2 % 12.3 % 11.7 % Percentage of debt investments at floating rates 96.9 % 97.5 % 98.6 % Portfolio & Investment Activity
As of June 30, 2024 and December 31, 2023, the Company had investments in 183 and 186 portfolio companies with an aggregate fair value of $1,610.8 and $1,582.1 million, respectively. The portfolio at fair value was comprised of the following asset types:
Portfolio Asset Types: As of $ in millions June 30, 2024 December 31, 2023 Investment Type Fair Value Percentage Fair Value Percentage Senior secured first lien $ 432.9 26.8 % $ 429.2 27.0 % Unitranche first lien2 1,005.3 62.4 973.9 61.5 Unitranche first lien - last out2 5.6 0.3 13.5 0.9 Senior secured second lien 49.5 3.1 58.2 3.7 Unsecured debt 15.6 1.0 4.1 0.3 Equity & other 57.2 3.6 50.1 3.2 LLC/LP equity interests 44.7 2.8 53.1 3.4 Total investments $ 1,610.8 100.0 % $ 1,582.1 100.0 % For the quarter ended June 30, 2024, the Company invested $119.3 million across six new portfolio companies and several follow-on revolver and delayed draw fundings. During this period, the Company had $73.4 million in aggregate exits, sales and repayments. For the quarter ended March 31, 2024, the Company invested $73.9 million across seven new portfolio companies and several follow-on revolver and delayed draw fundings. During this period, the Company had $98.4 million in aggregate exits, sales and repayments.
Results of Operations
For the quarter ended June 30, 2024 and 2023, investment income was $48.9 million and $46.7 million, respectively. The increase in investment income was largely the result of net funding activity and an increase in reference rates. Net expenses, including income and excise taxes, totaled $27.2 million and $26.1 million for the quarter ended June 30, 2024 and 2023, respectively. The increase in net expenses was primarily due to an increase in reference rates which increased the Company's weighted average interest rate on debt outstanding.
Liquidity and Capital Resources
As of June 30, 2024, the Company had $36.1 million in cash and cash equivalents and restricted cash and $293.8 million of undrawn capacity on its credit facilities, subject to borrowing base and other limitations. The weighted average cost of debt on the Company’s debt outstanding as of June 30, 2024 was 7.26%.
The Company’s debt to equity ratio was 1.18x as of June 30, 2024.
Conference Call
The Company will host a webcast/conference call on Tuesday, August 13, 2024 at 12:00 p.m. (Eastern Time) to discuss its financial results for the quarter ended June 30, 2024. Please visit Crescent BDC’s webcast link located on the Events & Presentations page of the Investor Relations section of Crescent BDC’s website for a slide presentation that complements the earnings conference call.
All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Events & Presentations page of the Investor Resources section of Crescent BDC’s website at www.crescentbdc.com. Please visit the website to test your connection before the webcast. Participants are also invited to access the conference call by dialing the following number:
Toll Free: (800) 267-6316
Conference ID: CRESCENTAll callers will need to reference the Conference ID once connected with the operator. An archived replay will be available via a webcast link located on the Investor Relations section of Crescent BDC's website.
Endnotes
Note: Numbers may not sum due to rounding.
1) Yield includes performing debt and other income producing investments (excluding investments on non-accrual).
2) Unitranche loans are first lien loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, the Company may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that the Company would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate.
Crescent Capital BDC, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands except share and per share data)As of
June 30, 2024As of
December 31, 2023Assets Investments, at fair value Non-controlled non-affiliated investments (cost of$1,493,976 and $1,469,251, respectively) $ 1,501,420 $ 1,465,537 Non-controlled affiliated investments (cost of $54,294 and $56,084, respectively) 52,023 52,619 Controlled investments (cost of $64,619 and $67,353, respectively) 57,332 63,919 Cash and cash equivalents 11,018 7,780 Restricted cash and cash equivalents 25,124 16,690 Interest and dividend receivable 16,089 14,000 Receivable from unsettled transactions 2,549 251 Unrealized appreciation on foreign currency forward contracts 2,765 5,128 Deferred tax assets 939 114 Other assets 3,173 1,341 Total assets $ 1,672,432 $ 1,627,379 Liabilities Debt (net of deferred financing costs of $7,903 and $7,138) $ 879,934 $ 844,783 Distributions payable 15,566 15,195 Interest and other debt financing costs payable 11,038 10,900 Management fees payable 5,001 5,026 Incentive fees payable 4,603 4,770 Deferred tax liabilities 883 578 Unrealized depreciation on foreign currency forward contracts 42 84 Accrued expenses and other liabilities 2,925 3,449 Total liabilities $ 919,992 $ 884,785 Net assets Preferred stock, par value $0.001 per share (10,000 shares authorized,
zero outstanding, respectively)$ - $ - Common stock, par value $0.001 per share (200,000,000 shares authorized,
37,061,547 and 30,887,360 shares issued and outstanding, respectively)37 37 Paid-in capital in excess of par value 965,895 788,299 Accumulated earnings (loss) (213,492 ) (45,742 ) Total net assets $ 752,440 $ 742,594 Total liabilities and net assets $ 1,672,432 $ 1,627,379 Net asset value per share $ 20.30 $ 20.04 Crescent Capital BDC, Inc.
Consolidated Statements of Operations
(in thousands except share and per share data)
(Unaudited)For the three months ended
June 30,For the six months ended
June 30,2024 2023 2024 2023 Investment Income: From non-controlled non-affiliated investments: Interest income $ 41,973 $ 41,255 $ 85,536 $ 75,501 Paid-in-kind interest 2,060 650 3,215 1,268 Dividend income 2 75 395 79 Other income 779 181 1,667 228 From non-controlled affiliated investments: Interest income 1,099 740 1,791 1,352 Paid-in-kind interest 67 186 509 235 Dividend income — 551 287 1,179 Other income 16 149 16 149 From controlled investments: Interest income 312 154 611 320 Paid-in-kind interest — — — 192 Dividend income 2,640 2,800 5,280 5,520 Other income 3 — 5 — Total investment income 48,951 46,741 99,312 86,023 Expenses: Interest and other debt financing costs 15,931 15,273 31,535 27,642 Management fees 5,034 5,010 10,014 9,468 Income based incentive fees 4,603 4,349 9,541 8,041 Professional fees 451 427 897 737 Directors’ fees 151 138 308 306 Other general and administrative expenses 678 753 1,305 1,478 Total expenses 26,848 25,950 53,600 47,672 Management fees waiver (33 ) (50 ) (71 ) (96 ) Income based incentive fees waiver — (71 ) (36 ) (159 ) Net expenses 26,815 25,829 53,493 47,417 Net investment income before taxes 22,136 20,912 45,819 38,606 (Benefit) provision for income and excise taxes 433 340 800 541 Net investment income 21,703 20,572 45,019 38,065 Net realized and unrealized gains (losses) on investments: Net realized gain (loss) on: Non-controlled non-affiliated investments (5,332 ) (6,494 ) (6,935 ) (6,243 ) Foreign currency transactions (508 ) (58 ) (519 ) (58 ) Foreign currency forward contracts 1,776 — 3,223 — Net change in unrealized appreciation (depreciation) on: Non-controlled non-affiliated investments and foreign currency translation 7,191 10,010 12,061 4,456 Non-controlled affiliated investments 966 174 1,194 539 Controlled investments (3,628 ) (1,641 ) (3,853 ) (5,970 ) Foreign currency forward contracts (1,964 ) (578 ) (2,320 ) (1,239 ) Net realized and unrealized gains (losses) on investments (1,499 ) 1,413 2,851 (8,515 ) Benefit (provision) for taxes on realized gain on investments — — — 252 Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments 181 595 520 555 Net increase (decrease) in net assets resulting from operations $ 20,385 $ 22,580 $ 48,390 $ 30,357 Per common share data: Net increase (decrease) in net assets resulting from operations per share (basic and diluted): $ 0.55 $ 0.61 $ 1.31 $ 0.87 Net investment income per share (basic and diluted): $ 0.59 $ 0.56 $ 1.21 $ 1.09 Weighted average shares outstanding (basic and diluted): 37,061,547 37,061,547 37,061,547 34,776,074 About Crescent BDC
Crescent BDC is a business development company that seeks to maximize the total return of its stockholders in the form of current income and capital appreciation by providing capital solutions to middle market companies with sound business fundamentals and strong growth prospects. Crescent BDC utilizes the extensive experience, origination capabilities and disciplined investment process of Crescent. Crescent BDC is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent. Crescent BDC has elected to be regulated as a business development company under the Investment Company Act of 1940. For more information about Crescent BDC, visit www.crescentbdc.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.
About Crescent Capital Group
Crescent is a global credit investment manager with over $42 billion of assets under management. For over 30 years, the firm has focused on below investment grade credit through strategies that invest in marketable and privately originated debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche and junior debt securities. Crescent is headquartered in Los Angeles with offices in New York, Boston, Chicago and London with more than 225 employees globally. Crescent is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. For more information about Crescent, visit www.crescentcap.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.
Contact:
Dan McMahon
daniel.mcmahon@crescentcap.com
212-364-0149
Forward-Looking StatementsThis press release, and other statements that Crescent BDC may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to Crescent BDC’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.
Crescent BDC cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which may change over time. Forward-looking statements speak only as of the date they are made, and Crescent BDC assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
In addition to factors previously disclosed in Crescent BDC’s SEC reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) our future operating results; (2) our business prospects and the prospects of our portfolio companies; (3) the impact of investments that we expect to make; (4) our contractual arrangements and relationships with third parties; (5) the dependence of our future success on the general economy and its impact on the industries in which we invest; (6) the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives; (7) our expected financings and investments; (8) the adequacy of our cash resources and working capital, including our ability to obtain continued financing on favorable terms; (9) the timing of cash flows, if any, from the operations of our portfolio companies; (10) the impact of increased competition; (11) the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments; (12) potential conflicts of interest in the allocation of opportunities between us and other investment funds managed by our investment adviser or its affiliates; (13) the ability of our investment adviser to attract and retain highly talented professionals; (14) changes in law and policy accompanying the new administration and uncertainty pending any such changes; (15) increased geopolitical unrest, terrorist attacks or acts of war, which may adversely affect the general economy, domestic and local financial and capital markets, or the specific industries of our portfolio companies; (16) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets; (17) the unfavorable resolution of legal proceedings; and (18) the impact of changes to tax legislation and, generally, our tax position.
Crescent BDC’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC, identifies additional factors that can affect forward-looking statements.
Other Information
The information in this press release is summary information only and should be read in conjunction with Crescent BDC’s annual report on Form 10-K for the year ended December 31, 2023, which Crescent BDC filed with the U.S. Securities and Exchange Commission (the SEC) on February 21, 2024, as well as Crescent BDC’s other reports filed with the SEC. A copy of Crescent BDC’s annual report on Form 10-K for the year ended December 31, 2023, Crescent BDC’s quarterly reports on Form 10-Q and Crescent BDC’s other reports filed with the SEC can be found on Crescent BDC’s website at www.crescentbdc.com and the SEC’s website at www.sec.gov.