HOUSTON, July 31, 2020 /PRNewswire/ -- Stellus Capital Investment Corporation SCM ("Stellus" or "the Company") today announced financial results for its second fiscal quarter ended June 30, 2020.
"The second quarter brought very positive results for the Company: net investment income of $0.28 per share exceeded distributions of $0.25 per share, net asset value increased by 15%, or $1.79 per share, and liquidity and access to funding exceeded $45 million. Given the stabilization of asset quality, capital base and liquidity, the Company is declaring a regular dividend of $0.25 per share for the third quarter," reported Robert T. Ladd, Chief Executive Officer of Stellus Capital Investment Corporation.
FINANCIAL HIGHLIGHTS | ||||||
($ in millions, except data relating to per share amounts and shares outstanding) | ||||||
Q2-20 | YTD-20 | |||||
Amount | Per Share | Amount | Per Share | |||
Net investment income | $5.44 | $0.28 | $11.68 | $0.60 | ||
Core net investment income (1) | 5.72 | 0.29 | 11.28 | 0.58 | ||
Net realized loss on investments | (3.89) | (0.20) | (2.60) | (0.13) | ||
Total realized income(2) | 1.54 | 0.08 | 9.08 | 0.47 | ||
Distributions | (4.87) | (0.25) | (11.49) | (0.59) | ||
Net unrealized appreciation | ||||||
(depreciation) on investments | 38.33 | 1.96 | (13.18) | (0.68) | ||
Provision for taxes on unrealized gains | ||||||
on investments in taxable subsidiaries | (0.06) | (0.00) | (0.03) | (0.00) | ||
Net increase in net assets resulting | ||||||
from operations | 39.81 | 2.04 | (4.13) | (0.21) | ||
Weighted average shares outstanding | 19,484,217 | 19,456,849 | ||||
(1) | Core net investment income, as presented, excludes the impact of capital gains incentive fees and income taxes, the majority of which are excise taxes. The company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non-U.S GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S GAAP. A reconciliation of net investment income in accordance with U.S GAAP to core net investment income is presented in the table below the financial statements. |
(2) | Total realized income is the sum of net investment income and net realized gains on investments; both U.S GAAP measures. |
PORTFOLIO ACTIVITY | ||||||||||||
($ in millions, except data relating to per share amounts and number of portfolio companies) | ||||||||||||
As of | As of | |||||||||||
June 30, | December 31, | |||||||||||
2020 | 2019 | |||||||||||
Investments at fair value | $640.7 | $628.9 | ||||||||||
Total assets | $666.7 | $648.5 | ||||||||||
Net assets | $260.0 | $270.6 | ||||||||||
Shares outstanding | 19,486,003 | 19,131,746 | ||||||||||
Net asset value per share | $13.34 | $14.14 | ||||||||||
Quarter Ended | Year Ended | |||||||||||
June 30, | June 30, | |||||||||||
2020 | 2020 | |||||||||||
New investments | $6.7 | $68.2 | ||||||||||
Repayments of investments | (10.5) | (42.3) | ||||||||||
Net activity | $(3.8) | $25.9 | ||||||||||
As of | As of | |||||||||||
June 30, | December 31, | |||||||||||
2020 | 2019 | |||||||||||
Number of portfolio company investments | 65 | 63 | ||||||||||
Number of debt investments | 51 | 51 | ||||||||||
Weight average yield of debt and other income producing investments (1) | ||||||||||||
Cash | 7.7% | 8.7% | ||||||||||
PIK | 0.0% | 0.0% | ||||||||||
Fee amortization | 0.4% | 0.5% | ||||||||||
Total | 8.1% | 9.2% | ||||||||||
Weighted average yield on total investments (2) | ||||||||||||
Cash | 7.3% | 8.3% | ||||||||||
PIK | 0.0% | 0.0% | ||||||||||
Fee amortization | 0.4% | 0.5% | ||||||||||
Total | 7.7% | 8.8% | ||||||||||
(1) | 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 of our common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expense or any sales load that may be paid by investors. |
(2) | 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 three months ended June 30, 2020 and 2019 totaled $13.8 million and $14.2 million, respectively, most of which was interest income from portfolio investments.
Operating expenses for the three months ended June 30, 2020 and 2019, totaled $8.4 million and $8.8 million, respectively. For the same respective periods, base management fees totaled $2.7 million and $2.3 million, income incentive fees totaled $0.2 million and $1.4 million, capital gains incentive fees totaled $0.0 million and $0.1 million, fees and expenses related to our borrowings totaled $4.1 million and $3.4 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.4 million and $0.4 million, income tax totaled $0.3 million and $0.3 million, and other expenses totaled $0.7 million and $0.9 million, respectively.
For the three months ended June 30, 2020 and 2019, net investment income was $5.4 million and $5.4 million, or $0.28 and $0.29 per common share based on weighted average common shares outstanding of 19,484,217 and 18,883,745, respectively.
The Company's investment portfolio had a net change in unrealized appreciation (depreciation) for the three months ended June 30, 2020 and 2019, of $38.3 million and ($2.1) million, respectively. For the three months ended June 30, 2020 and 2019, the Company had realized gains (losses) of ($3.9) million and $2.7 million, respectively.
For the three months ended June 30, 2020 and 2019, net increase in net assets resulting from operations totaled $39.8 million and $6.0 million, or $2.04 per common share and $0.32 per common share, based on weighted average common shares outstanding of 19,484,217 and 18,883,745, respectively. The majority of the increase resulted from the $38.3 million of net unrealized appreciation for the three months ended June 30, 2020, which was primarily from the normalization of the primary index utilized in the valuation process in the second quarter to pre-COVID-19 pandemic levels, offset by approximately $1.1 million of additional company-specific unrealized depreciation during the three months ended June 30, 2020.
Liquidity and Capital Resources
As of June 30, 2020 and 2019, our credit facilities provided for borrowings in an aggregate amount up to $230.0 and $180.0 million, respectively, on a committed basis. As of June 30, 2020, our credit facility had an accordion feature which allowed for potential future expansion of the facility size up to $250.0 million. As of June 30, 2020 and December 31, 2019, we had $185.0 million and $161.6 million in outstanding borrowings under the credit facility, respectively. As of June 30, 2020 and December 31, 2019, we had approximately $45.0 million and $58.4 million, respectively, of unused borrowing capacity.
For the six months ended June 30, 2020, our operating activities used cash of $12.4 million primarily in connection with the origination of portfolio investments, which was slightly offset by repayments of our investments. For the same period, our financing activities provided cash of $19.5 million, due to net borrowings under our Credit Facility.
For the six months ended June 30, 2019, our operating activities used cash of $7.9 million, primarily in connection with the origination of portfolio investments, which was slightly offset by repayments of our investments, and our financing activities provided cash of $8.7 million, due to a secondary offering during the year, offset by repayments on our Credit Facility.
Distributions
During the three months ended June 30, 2020 and 2019, we declared aggregate distributions for each quarter of $0.25 and $0.34 per share, respectively ($4.9 million and $6.4 million, respectively) for each quarter. Tax characteristics of all distributions during the calendar year will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these distributions is expected to include a return of capital.
Portfolio Activity During the Quarter
On April 1, 2020, we invested an additional $0.9 million in the revolver of Elliott Aviation, LLC, an existing portfolio company. Subsequent paydowns totaling $1.8 million were received by the Company throughout the quarter.
On April 1, 2020, we invested $1.3 million in the revolver of Sales Benchmark Index, LLC, an existing portfolio company. A subsequent paydown of $0.4 million was received by the Company on May 29, 2020.
On April 1, 2020, we invested an additional $0.9 million in the revolver of Lynx FBO Operating, LLC, an existing portfolio company. Subsequent paydowns totaling $1.9 million were received by the Company throughout the quarter.
On April 1, 2020, our investments in Furniture Factory Outlet, LLC and Furniture Factory Holdings, LLC were placed on non-accrual.
On April 2, 2020, our $1.6 million commitment in the delayed draw term loan of GS HVAM Intermediate, LLC expired.
On April 3, 2020, our existing second lien investment of $9.5 million in KidKraft was terminated in exchange for a $1.5 million last out term loan and $4.0 million of preferred equity.
On April 3, 2020, we invested $0.6 million in the revolver of Integrated Oncology Network, LLC, an existing portfolio company.
On April 10, 2020, we invested $0.7 million in the delayed draw term loan of Munch's Supply, LLC, an existing portfolio company.
On April 14, 2020, we invested $1.1 million in the revolver of Venbrook Buyer, LLC, an existing portfolio company, and on May 15, 2020, we invested an additional $1.1 million in the revolver.
On April 24, 2020, our delayed draw term loan commitment of $4.4 million for Venbrook Buyer, LLC was amended such that the borrower would not be permitted to borrow the delayed draw term loan before July 15, 2020.
On April 28, 2020, our delayed draw term loan commitment of $4.0 million to Exacta Land Surveyors, LLC, was amended to allow us, as administrative agent, to have full discretion to fund the delayed draw term loan commitment.
On April 29, 2020, our $1.7 million commitment in the delayed draw term loan of BFC Solmetex, LLC was extinguished.
On May 27, 2020, we invested $0.1 million in the equity of USASF Blocker IV, LLC, an existing portfolio company.
On June 29, 2020, we invested $0.02 million in the equity of TFH Reliability Group, LLC, an existing portfolio company.
Events Subsequent to June 30, 2020
On July 17, 2020, we invested $7.1 million in the first lien term loan of Industry Dive, Inc., a provider of mobile and desktop-based newsletters containing industry-specific business analysis and news targeting executives. Additionally, we committed $0.1 million in the unfunded revolver, of which $0.04 million was funded on July 17, 2020.
On July 21, 2020 we received a paydown of $2.7 million on the revolver of GS HVAM Intermediate, LLC, an existing portfolio company.
Unfunded Commitments
As of July 30, 2020, we had unfunded commitments of $30.7 million, including unfunded delayed draw term loan commitments of $12.1 million.
Credit Facility
The outstanding balance under the Credit Facility as of July 30, 2020 was $182.0 million.
SBA-guaranteed Debentures
The total balance of SBA-guaranteed debentures outstanding as of July 30, 2020 was $161.0 million.
Distributions
The Company paid distributions of $0.25 for shareholders of record as of July 15, 2020 on July 31, 2020, as declared on June 30, 2020.
On July 29, 2020, the Company's board of directors declared a distribution of $0.25 per share on September 30, 2020, to shareholders of record on September 15, 2020.
Conference Call Information
Stellus Capital Investment Corporation will host a conference call to discuss these results on Friday, July 31, 2020 at 10:00 AM, 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 800-353-6461 (domestic). Use passcode 6250711. Starting approximately twenty-four hours after the conclusion of the call, a replay will be available through Saturday, August 8, 2020 by dialing (888) 203-1112 and entering passcode 6250711. The replay will also be available on the company's website.
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), second lien 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 Investors" 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, including statements about COVID-19 and its impacts, such as significant market volatility and changes in base interest rates, 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, (713) 292-5414
Chief Financial Officer
thuskinson@stelluscapital.com
PART I — FINANCIAL INFORMATION | |||||||
STELLUS CAPITAL INVESTMENT CORPORATION | |||||||
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | |||||||
June 30, | |||||||
2020 | December 31, | ||||||
(Unaudited) | 2019 | ||||||
ASSETS | |||||||
Non-controlled, non-affiliated investments, at fair value | |||||||
(amortized cost of $667,649,307 and $642,707,824, | |||||||
respectively) | $ | 640,713,831 | $ | 628,948,077 | |||
Cash and cash equivalents | 23,209,941 | 16,133,315 | |||||
Receivable for sales and repayments of investments | 113,812 | 123,409 | |||||
Interest receivable | 2,325,856 | 2,914,710 | |||||
Other receivables | 25,495 | 25,495 | |||||
Prepaid expenses | 266,843 | 368,221 | |||||
Total Assets | $ | 666,655,778 | $ | 648,513,227 | |||
LIABILITIES | |||||||
Notes payable | $ | 48,139,950 | $ | 47,974,202 | |||
Credit facility payable | 184,075,319 | 160,510,633 | |||||
SBA-guaranteed debentures | 157,886,403 | 157,543,853 | |||||
Dividends payable | 4,871,504 | 2,167,630 | |||||
Management fees payable | 5,462,248 | 2,695,780 | |||||
Income incentive fees payable | 1,660,862 | 1,618,509 | |||||
Capital gains incentive fees payable | — | 880,913 | |||||
Interest payable | 2,167,084 | 2,322,314 | |||||
Director fees payable | 9,000 | — | |||||
Unearned revenue | 646,000 | 559,768 | |||||
Administrative services payable | 796,768 | 413,278 | |||||
Deferred tax liability | 164,664 | 134,713 | |||||
Income tax payable | 456,000 | 917,000 | |||||
Other accrued expenses and liabilities | 366,668 | 203,461 | |||||
Total Liabilities | $ | 406,702,470 | $ | 377,942,054 | |||
Commitments and contingencies (Note 7) | |||||||
Net Assets | $ | 259,953,308 | $ | 270,571,173 | |||
NET ASSETS | |||||||
Common stock, par value $0.001 per share (100,000,000 shares | |||||||
authorized; 19,486,003 and 19,131,746 issued and outstanding, | |||||||
respectively) | $ | 19,486 | $ | 19,132 | |||
Paid-in capital | 277,116,729 | 272,117,091 | |||||
Accumulated undistributed deficit | (17,182,907) | (1,565,050) | |||||
Net Assets | $ | 259,953,308 | $ | 270,571,173 | |||
Total Liabilities and Net Assets | $ | 666,655,778 | $ | 648,513,227 | |||
Net Asset Value Per Share | $ | 13.34 | $ | 14.14 | |||
STELLUS CAPITAL INVESTMENT CORPORATION | ||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | ||||||||||||||
For the | For the | For the | For the | |||||||||||
three | three | six | six | |||||||||||
months ended | months ended | months ended | months ended | |||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||
INVESTMENT INCOME | ||||||||||||||
Interest income | $ | 13,635,480 | $ | 13,605,861 | $ | 28,485,068 | $ | 27,231,260 | ||||||
Other income | 205,798 | 564,394 | 617,255 | 773,924 | ||||||||||
Total Investment Income | $ | 13,841,278 | $ | 14,170,255 | $ | 29,102,323 | $ | 28,005,184 | ||||||
OPERATING EXPENSES | ||||||||||||||
Management fees | $ | 2,743,195 | $ | 2,304,362 | $ | 5,462,249 | $ | 4,527,007 | ||||||
Valuation fees | 19,001 | 21,628 | 128,834 | 128,950 | ||||||||||
Administrative services expenses | 436,594 | 415,506 | 903,529 | 820,905 | ||||||||||
Income incentive fees | 168,749 | 1,382,814 | 1,508,386 | 2,756,668 | ||||||||||
Capital gains incentive (reversal) fees | - | 115,856 | (880,913) | 1,277,613 | ||||||||||
Professional fees | 150,514 | 329,541 | 537,228 | 673,881 | ||||||||||
Directors' fees | 110,566 | 113,000 | 242,816 | 217,000 | ||||||||||
Insurance expense | 93,071 | 86,649 | 186,142 | 172,346 | ||||||||||
Interest expense and other fees | 4,092,594 | 3,359,270 | 8,384,798 | 7,034,057 | ||||||||||
Income tax expense | 289,000 | 342,384 | 485,795 | 355,128 | ||||||||||
Other general and administrative expenses | 302,379 | 283,845 | 468,382 | 292,570 | ||||||||||
Total Operating Expenses | $ | 8,405,663 | $ | 8,754,855 | $ | 17,427,246 | $ | 18,256,125 | ||||||
Net Investment Income | $ | 5,435,615 | $ | 5,415,400 | $ | 11,675,077 | $ | 9,749,059 | ||||||
Net realized (loss) gain on non-controlled, non-affiliated | ||||||||||||||
investments | $ | (3,893,249) | $ | 2,696,138 | $ | (2,596,456) | $ | 12,942,236 | ||||||
Net change in unrealized appreciation (depreciation) | ||||||||||||||
on non-controlled, non-affiliated investments | $ | 38,329,217 | $ | (2,089,555) | $ | (13,175,729) | $ | (6,514,269) | ||||||
Provision for taxes on net unrealized gain | ||||||||||||||
on investments | $ | (58,909) | $ | (27,300) | $ | (29,950) | $ | (39,901) | ||||||
Net Increase (Decrease) in Net Assets | ||||||||||||||
Resulting from Operations | $ | 39,812,674 | $ | 5,994,683 | $ | (4,127,058) | $ | 16,137,125 | ||||||
Net Investment Income Per Share | $ | 0.28 | $ | 0.29 | $ | 0.60 | $ | 0.55 | ||||||
Net Increase (Decrease) in Net Assets Resulting | ||||||||||||||
from Operations Per Share | $ | 2.04 | $ | 0.32 | $ | (0.21) | $ | 0.92 | ||||||
Weighted Average Shares of Common Stock Outstanding | 19,484,217 | 18,883,745 | 19,456,849 | 17,624,385 | ||||||||||
Distributions Per Share | $ | 0.25 | $ | 0.34 | $ | 0.59 | $ | 0.68 | ||||||
STELLUS CAPITAL INVESTMENT CORPORATION | |||||||||||||
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited) | |||||||||||||
For the | For the | For the | For the | ||||||||||
three | three | six | six | ||||||||||
months ended | months ended | months ended | months ended | ||||||||||
June 30, | June 30, | June 30, | June 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||
Increase (Decrease) in Net Assets Resulting from | |||||||||||||
Operations | |||||||||||||
Net investment income | $ | 5,435,615 | $ | 5,415,400 | $ | 11,675,077 | $ | 9,749,059 | |||||
Net realized (loss) gain on non-controlled, | |||||||||||||
non-affiliated investments | (3,893,249) | 2,696,138 | (2,596,456) | 12,942,236 | |||||||||
Net change in unrealized appreciation (depreciation) on | |||||||||||||
non-controlled, non-affiliated investments | 38,329,217 | (2,089,556) | (13,175,729) | (6,514,269) | |||||||||
Provision for taxes on unrealized appreciation | |||||||||||||
on investments | (58,909) | (27,300) | (29,950) | (39,901) | |||||||||
Net Increase (Decrease) in Net Assets Resulting | |||||||||||||
from Operations | $ | 39,812,674 | $ | 5,994,682 | $ | (4,127,058) | $ | 16,137,125 | |||||
Stockholder Distributions From: | |||||||||||||
Net investment income | $ | (4,871,501) | $ | (6,426,108) | $ | (11,490,798) | $ | (12,160,358) | |||||
Total Distributions | $ | (4,871,501) | $ | (6,426,108) | $ | (11,490,798) | $ | (12,160,358) | |||||
Capital Share Transactions | |||||||||||||
Issuance of common stock | $ | 93,470 | $ | 2,917,010 | $ | 5,023,937 | $ | 42,599,510 | |||||
Sales load | — | (68,731) | (5,681) | (1,003,731) | |||||||||
Offering costs | — | (90,181) | (18,169) | (293,072) | |||||||||
Partial share transactions | — | (253) | (96) | 1,182 | |||||||||
Net Increase in Net Assets Resulting From | |||||||||||||
Capital Share Transactions | $ | 93,470 | $ | 2,757,845 | $ | 4,999,991 | $ | 41,303,888 | |||||
Total Increase (Decrease) in Net Assets | $ | 35,034,643 | $ | 2,326,419 | $ | (10,617,865) | $ | 45,280,655 | |||||
Net Assets at Beginning of Period | $ | 224,918,665 | $ | 267,799,244 | $ | 270,571,173 | $ | 224,845,007 | |||||
Net Assets at End of Period | $ | 259,953,308 | $ | 270,125,663 | $ | 259,953,308 | $ | 270,125,663 | |||||
STELLUS CAPITAL INVESTMENT CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) | ||||||||
For the | For the | |||||||
six | six | |||||||
months ended | months ended | |||||||
June 30, | June 30, | |||||||
2020 | 2019 | |||||||
Cash flows from operating activities | ||||||||
Net (decrease) increase in net assets resulting from operations | $ | (4,127,058) | $ | 16,137,125 | ||||
Adjustments to reconcile net (decrease) increase in net assets | ||||||||
from operations to net cash used in operating activities: | ||||||||
Purchases of investments | (68,247,468) | (78,149,872) | ||||||
Proceeds from sales and repayments of investments | 42,341,340 | 58,832,731 | ||||||
Net change in unrealized depreciation on investments | 13,175,729 | 6,514,269 | ||||||
Increase in investments due to PIK | (552,245) | (65,356) | ||||||
Amortization of premium and accretion of discount, net | (1,069,969) | (817,309) | ||||||
Deferred tax provision | 29,951 | 39,901 | ||||||
Amortization of loan structure fees | 318,039 | 248,990 | ||||||
Amortization of deferred financing costs | 165,748 | 164,837 | ||||||
Amortization of loan fees on SBA-guaranteed debentures | 342,550 | 299,694 | ||||||
Net realized loss (gain) on investments | 2,596,456 | (12,942,236) | ||||||
Changes in other assets and liabilities | ||||||||
Decrease in interest receivable | 588,854 | 347,607 | ||||||
Decrease in other receivable | — | 59,751 | ||||||
Decrease in prepaid expenses | 101,378 | 122,506 | ||||||
Increase (decrease) in management fees payable | 2,766,468 | (379,613) | ||||||
Increase (decrease) in incentive fees payable | 42,353 | (318,368) | ||||||
(Decrease) increase in capital gains incentive fees payable | (880,913) | 1,277,613 | ||||||
Increase in administrative services payable | 383,490 | 71,943 | ||||||
(Decrease) increase in interest payable | (155,230) | 292,638 | ||||||
Increase in director fees payable | 9,000 | — | ||||||
Increase (decrease) in unearned revenue | 86,232 | (82,649) | ||||||
(Decrease) increase in income tax payable | (461,000) | 63,908 | ||||||
Increase in other accrued expenses and liabilities | 163,207 | 342,876 | ||||||
Net Cash Used in Operating Activities | $ | (12,383,088) | $ | (7,939,014) | ||||
Cash flows from Financing Activities | ||||||||
Proceeds from the issuance of common stock | $ | 4,794,994 | $ | 42,599,510 | ||||
Sales load for common stock issued | (5,681) | (1,003,731) | ||||||
Offering costs paid for common stock | (18,169) | (330,909) | ||||||
Stockholder distributions paid | (8,557,981) | (11,825,880) | ||||||
Borrowings under Credit Facility | 86,450,000 | 78,750,000 | ||||||
Repayments of Credit Facility | (63,000,000) | (99,500,000) | ||||||
Financing costs paid on Credit facility | (203,353) | — | ||||||
Partial share transactions | (96) | 1,181 | ||||||
Net Cash Provided by Financing Activities | $ | 19,459,714 | $ | 8,690,171 | ||||
Net Increase in Cash and Cash Equivalents | $ | 7,076,626 | $ | 751,157 | ||||
Cash and cash equivalents balance at beginning of period | 16,133,315 | 17,467,146 | ||||||
Cash and Cash Equivalents Balance at End of Period | $ | 23,209,941 | $ | 18,218,303 | ||||
Supplemental and Non-Cash Activities | ||||||||
Cash paid for interest expense | $ | 7,713,693 | $ | 6,027,898 | ||||
Excise tax paid | 940,000 | 280,000 | ||||||
Shares issued pursuant to Dividend Reinvestment Plan | 228,943 | — | ||||||
Increase in dividends payable | 2,703,874 | 334,478 | ||||||
Increase in deferred offering costs | — | 37,837 | ||||||
Reconciliation of Core Net Investment Income | ||||
(Unaudited) | ||||
Quarter | Quarter | |||
ended | ended | |||
June 30, 2020 | June 30, 2019 | |||
Net investment income | $5,435,615 | $5,415,400 | ||
Capital gains incentive fee | $- | $115,856 | ||
Income tax expense | $289,000 | $342,384 | ||
Core net investment income | $5,724,615 | $5,873,640 | ||
Per share amounts: | ||||
Net investment income per share | $0.28 | $0.29 | ||
Core net investment income per share | $0.29 | $0.31 | ||
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SOURCE Stellus Capital Investment Corporation
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