BlackRock Capital Investment Corporation Reports Financial Results for the Quarter Ended December 31, 2021, Declares Quarterly Cash Distribution of $0.10 per Share
-
GAAP Net Investment Income (“GAAP NII”) was
$5.9 million , or$0.08 per share, up 21% from the third quarter, providing fourth quarter distribution coverage of 80%, up from 66% in the third quarter. -
Adjusted Net Investment Income1 (“Adjusted NII”) was
$6.2 million , or$0.08 per share, providing fourth quarter adjusted distribution coverage of 84%, consistent with the prior quarter. GAAP NII and Adjusted NII include fee and other one-time income of$0.01 per share. -
Net Asset Value (“NAV”) decreased slightly to
$349.7 million , down 0.3% from$350.9 million at the end of the third quarter, and up 11.0% from$315.0 million at the end of 2020; NAV per share decreased by 0.2% to$4.73 per share from$4.74 per share at the end of the third quarter and increased by 11.8% from$4.23 at the end of 2020. -
Strong gross deployments of
$68.5 million during the fourth quarter and$275.0 million for the full year, substantially all in senior secured debt. In the fourth quarter, 13 new portfolio companies were added, bringing total portfolio companies at year-end to 86, up from 55 at the end of 2020. Gross repayments for the fourth quarter were$75.7 million . -
Junior capital exposure was further reduced to 7% after fully exiting the equity investment in
BCIC Senior Loan Partners (“SLP”), which resulted in an additional$31.4 million cash return of capital received during the fourth quarter. -
Net leverage of 0.56x as of
December 31, 2021 was down slightly from 0.57x as ofSeptember 30, 2021 , and up from 0.51x as ofDecember 31, 2020 . Total liquidity for portfolio company investments, including cash, was approximately$224 million , subject to leverage and borrowing base restrictions. -
Under the existing share repurchase program, 119,633 shares were repurchased during the fourth quarter for approximately
$0.5 million at an average price of$4.09 per share, including brokerage commissions.
“2021 marked a year of significant progress for us, as we effectively completed our strategic rotation out of non-core assets, while building the portfolio for stable and long-term income generation. We believe this sets the stage for continued improvement in our financial results as we redeploy capital in senior secured loans and increase leverage to normalized levels. We continue to draw upon the power of the BlackRock platform to identify compelling new opportunities with solid risk-adjusted returns, focusing on senior secured debt and first lien loans in particular,” said
______________________________________ |
1Adjusted NII excludes the “hypothetical liquidation” basis capital gains incentive fee accrual required under GAAP of approximately |
“We finished the year strong, deploying over
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Three Months Ended |
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$ in Millions |
% |
Deployments |
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First Lien Debt |
53 |
78% |
Second Lien Debt |
13 |
18% |
|
2 |
4% |
Repayments/Exits |
|
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|
32 |
43% |
Other Core Assets |
44 |
57% |
“Our strategic priorities have resulted in robust portfolio construction and diversification. Approximately 74% of the portfolio now consists of first lien investments, up from 50% at the end of 2020, and 34% at the end of 2019. We ended the year with 86 portfolio companies, up from 55 at the end of 2020 and 47 at the end of 2019. We have exceeded the target we set two years ago and have a goal of making more progress in the new year,” said
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Portfolio Composition |
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First Lien Debt |
74% |
68% |
50% |
34% |
Second Lien Debt |
19% |
20% |
27% |
23% |
|
7% |
12% |
23% |
43% |
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Portfolio Company Count |
86 |
78 |
55 |
47 |
Non-Core Assets |
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Portfolio Company Count2 |
5 |
5 |
6 |
9 |
Fair Market Value ("FMV", in Millions) |
26 |
26 |
42 |
120 |
% of investments, at FMV |
5% |
5% |
9% |
16% |
______________________________________ |
1 Includes unsecured/subordinated debt and equity investments. |
2 Excludes portfolio companies with zero FMV. |
“Our net leverage increased modestly from 0.51x to 0.56x during 2021. Gross portfolio repayments of
Financial Highlights
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Q4 2021 |
Q3 2021 |
Q4 2020 |
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($'s in millions, except per share data) 2 |
Total
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Per Share |
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Total
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Per Share |
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Total
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Per Share |
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Net Investment Income/(loss) |
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Net realized and unrealized gains/(losses) |
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Basic earnings/(losses) |
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Distributions declared |
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Net Investment Income/(loss), as adjusted1 |
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Basic earnings/(losses), as adjusted1 |
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______________________________________ |
1 Non-GAAP basis financial measure, excluding hypothetical liquidation basis capital gain incentive fee accrual under GAAP. See Supplemental Information. |
2 Totals may not foot due to rounding. |
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2021 Totals |
2020 Totals |
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($'s in millions, except per share data) |
Total
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Per
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Total
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Per
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Net Investment Income/(loss) |
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Net realized and unrealized gains/(losses) |
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Basic earnings/(losses) |
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Distributions declared |
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Net Investment Income/(loss), as adjusted1 |
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Basic earnings/(losses), as adjusted1 |
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______________________________________ |
1 Non-GAAP basis financial measure, excluding hypothetical liquidation basis capital gain incentive fee accrual under GAAP. See Supplemental Information. |
($'s in millions, except per share data) |
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Total assets |
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Investment portfolio, at fair market value |
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Debt outstanding |
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Total net assets |
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Net asset value per share |
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Net leverage ratio1 |
0.56x |
0.57x |
0.51x |
_____________________________________ |
1 Calculated as the ratio between (A) debt, excluding unamortized debt issuance costs, less available cash and receivable for investments sold, plus payables for investments purchased, and (B) NAV. |
Business Updates
-
Reduced Exposure in
Junior Capital :-
During the fourth quarter, the Company received
$31.4 million in cash return of capital from SLP, primarily with the proceeds of selling its remaining investments in Crown Paper (as previously disclosed),TLE Holdings andPVHC Holding . As ofDecember 31, 2021 , the Company exited its equity investment in SLP, as SLP no longer held any investments and SLP’s board of directors elected to dissolve the entity. Additionally, a final distribution of$0.7 million was made to the Company by SLP subsequent toDecember 31, 2021 . -
At
December 31, 2021 , the Company’s junior capital exposure (including unsecured/subordinated debt and equity) was further reduced to 7% of the portfolio at FMV, from 23% atDecember 31, 2020 and 43% atDecember 31, 2019 . Excluding non-core assets, other junior capital exposure reduced to 6%, from 21% atDecember 31, 2020 and 40% atDecember 31, 2019 .
-
During the fourth quarter, the Company received
-
Insignificant Non-core Legacy Portfolio: As of
December 31, 2021 , non-core legacy assets comprised less than 5% of our total portfolio at FMV, or approximately$25.9 million invested in five portfolio companies (excluding portfolio companies with zero FMV), as compared to 9% at the end of 2020 and 16% at the end of 2019. Out of the remaining non-core legacy assets, approximately 68% were income generating debt investments based on FMV as ofDecember 31, 2021 . -
Share Repurchase Program: On
November 2, 2021 , the Company’s Board of Directors authorized the Company to purchase up to a total of 8,000,000 shares, effective until the earlier ofNovember 2, 2022 , or such time that all the authorized shares have been repurchased. During the fourth quarter, 119,633 shares were repurchased for$488,810 at an average price of$4.09 per share, including brokerage commissions. As ofDecember 31, 2021 , 7,906,894 shares remained authorized for repurchase. Cumulative repurchases since BlackRock entered into the investment management agreement with the Company in early 2015 have totaled approximately 8.8 million shares at an average price of$6.36 per share, including brokerage commissions, for a total of$56.2 million . Since the inception of our share repurchase program throughDecember 31, 2021 , we have purchased approximately 10.6 million shares at an average price of$6.46 per share, including brokerage commissions, for a total of$68.5 million .
Fourth Quarter Financial Updates
-
GAAP NII was
$5.9 million , or approximately$0.08 per share, for the three months endedDecember 31, 2021 (and Adjusted NII was$6.2 million or$0.08 per share). Relative to distributions declared of$0.10 per share, our NII distribution coverage was 80%, up from 66% from the third quarter; Adjusted NII distribution coverage was 84% for the fourth quarter, same as for the third quarter. As we continue to re-deploy capital into assets consistent with our core strategy, we expect our earnings power to improve in the coming quarters. -
NAV slightly decreased to
$349.7 million atDecember 31, 2021 , down 0.3% from$350.9 million atSeptember 30, 2021 . NAV per share slightly decreased 0.2% to$4.73 per share quarter-over-quarter. -
For the quarter ended
December 31, 2021 , we incurred management fees of$2.1 million , and incentive fees based on income of$0.2 million . -
GAAP requires that the capital gains incentive fee accrual consider unrealized capital appreciation, as a capital gains incentive fee would be payable if such unrealized capital appreciation were realized on a “hypothetical liquidation” basis. For the quarter ended
December 31, 2021 , a capital gains incentive fee of$0.3 million was accrued on that basis (refer to Supplemental Information below for further details). No amounts were due to the investment advisor for the period. There can be no assurance that such unrealized capital appreciation will actually be realized in the future, or that any accrued capital gains incentive fee will become payable under our investment management agreement or the Advisers Act. Amounts ultimately paid under the investment management agreement will be consistent with the formula reflected in the agreement. -
Tax characteristics of all 2021 distributions were reported to stockholders on Form 1099 after the end of the calendar year. Our 2021 distributions included a
$0.10 per share return of capital. Our return of capital distributions totaled$2.21 per share from inception toDecember 31, 2021 . At our discretion, we may carry forward taxable income in excess of calendar year distributions and pay a 4% excise tax on this income. We will accrue excise tax on estimated undistributed taxable income as required. There was no undistributed taxable income carried forward from 2021, therefore no excise tax payable.
Portfolio and Investment Activity*
($’s in millions) |
Three Months Ended |
Year Ended |
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Investment deployments |
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Investment exits |
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Number of portfolio company investments at the end of period |
86 |
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55 |
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86 |
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55 |
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Weighted average yield of debt and income producing equity securities, at fair market value |
8.7% |
|
8.9% |
|
8.7% |
|
8.9% |
|
% of Portfolio invested in Secured debt, at fair market value |
93% |
|
77% |
|
93% |
|
77% |
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% of Portfolio invested in Unsecured debt, at fair market value |
5% |
|
13% |
|
5% |
|
13% |
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% of Portfolio invested in Equity, at fair market value |
2% |
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10% |
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2% |
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10% |
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Average investment by portfolio company, at amortized cost |
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*Balance sheet amounts and yield information above are as of period end
-
We deployed
$68.5 million during the quarter while exits and repayments totaled$75.7 million , resulting in a$7.2 million net decrease in our portfolio, primarily due to additional progress made in reducing our junior capital exposure.-
Deployments primarily consisted of thirteen new portfolio companies (including two acquisitions from SLP) and nine investments/funding into existing portfolio companies, which are outlined as follows:
New Portfolio Companies-
$7.2 million L + 8.88% second lien term loan toAstra Acquisition Corp. , a provider of educational software to higher education and K-12 institutions globally; -
$5.5 million L + 8.00% first lien term loan and$9.7 million unfunded delayed draw term loan toSellerX Germany GmbH & Co. Kg, aGermany based consolidator of small to medium sized brands that sell through Amazon’s third-party platform; -
$5.4 million L + 7.00% first lien delayed draw term loan (with an additional$5.4 million unfunded) to SumUp Holdings Luxembourg S.A.R.L., aUnited Kingdom based global mobile point of sale provider; -
$3.5 million L + 7.50% second lien term loan,$1.2 million unfunded delayed draw term loan, and$2.5 million of preferred stock with 12.5% PIK toBlackbird Purchaser Inc. , a distributor of technical products supporting industrial automation and motion control needs of industrial facilities; -
$3.2 million L + 6.50% first lien term loan,$1.9 million unfunded delayed draw term loan and$0.8 million unfunded revolver toHomerenew Buyer, Inc. , a provider of home repair and remodeling services; -
$2.5 million L + 6.00% first lien term loan toPHRG Intermediate, LLC , a full service exterior remodeling company; -
$2.4 million L + 7.50% first lien term loan toAerospike, Inc. , a developer and seller of proprietary NoSQL data solutions; -
$2.2 million L + 7.50% second lien term loan and$0.4 million unfunded delayed draw term loan toBW Holding, Inc. , a manufacturer of premium label solutions; -
$1.5 million L + 6.00% first lien term loan,$0.3 million unfunded delayed draw term loan and$0.1 million unfunded revolver toIntegrate.com Inc. , a provider of precision demand marketing software; -
$1.5 million L + 6.50% first lien term loan,$0.4 million unfunded delayed draw term loan and$0.1 million unfunded revolver toZilliant Incorporated , a provider of price optimization and management software for enterprise business-to-business companies; and -
$1.4 million L + 6.00% first lien term loan,$0.3 million unfunded delayed draw term loan and$0.2 million revolver toSuited Connector, LLC , a digital marketing and data solutions platform, focused on lead generation within the financial services market.Incremental Investment /Funding Primarily in the Following Existing Portfolio Companies -
$3.5 million of L + 7.25% first lien term loan toCareATC, Inc. ; -
$3.2 million L + 9.00% first lien delayed draw term loan funding toRazor Group GmbH ; -
$2.7 million of L + 8.75% first lien term loan toJobandTalent USA, Inc. ; -
$2.0 million of L + 6.50% first lien term loan toSuperman Holdings, LLC ; -
$1.5 million L + 6.00% first lien delayed draw term loan funding toTempus, LLC ; -
$1.5 million of L + 8.00% first lien term loan toMetricstream, Inc. ; -
$1.2 million L + 7.00% funding toAras Corporation, Inc. , which includes$0.8 million of first lien term loan and$0.4 million of first lien delayed draw term loan funding; -
$0.7 million L + 6.25% first lien revolver funding toDude Solutions Holdings, Inc. ; and -
$0.6 million of L + 7.25% first lien term loan toPico Quantitative Trading, LLC .
Acquired from SLP -
$10.3 million L + 4.75% first lien term loan toPVHC Holding Corp. , a leading provider of pressurized dispensing components including aerosol container valves and actuators; and -
$3.9 million L + 5.50% first lien term loan and$1.0 million fully funded delayed draw term loan toTLE Holdings, LLC , a franchisor and owner-operator of education-based childcare centers.
-
-
Sales, exits, and repayments were primarily concentrated in five portfolio company investments:
-
$31.4 million of cash proceeds (with a claim to an escrow receivable of$0.7 million ) from our equity investment in SLP; -
$21.0 million full repayment of second lien term loan inParagon Films, Inc. ; -
$10.6 million full repayment of first lien term loan inLive Auctioneers, LLC ; -
$6.4 million full repayment of first lien term loan inOne Sky Flight, LLC ; and -
$3.4 million full repayment of first lien delayed draw term loan inPeter C. Foy & Associates Insurance Services, LLC .
-
-
Deployments primarily consisted of thirteen new portfolio companies (including two acquisitions from SLP) and nine investments/funding into existing portfolio companies, which are outlined as follows:
-
During the quarter ended
December 31, 2021 , there were no new non-accrual investments. As ofDecember 31, 2021 , there were three non-accrual investment positions, representing approximately 4.2% and 13.4% of total debt and preferred stock investments, at fair value and cost, respectively, as compared to three non-accrual investment positions of approximately 4.3% and 14.0% of total debt and preferred stock investments at fair value and cost, respectively, atSeptember 30, 2021 , and as compared to four non-accrual investment positions of approximately 6.5% and 17.8% of total debt and preferred stock investments at fair value and cost, respectively, atDecember 31, 2020 . The weighted average internal investment rating of the portfolio at FMV atDecember 31, 2021 improved to 1.21 as compared to 1.33 atSeptember 30, 2021 and 1.90 atDecember 31, 2020 . -
During the quarter ended
December 31, 2021 , net realized and unrealized gains were$0.7 million , primarily attributable to net appreciation in portfolio valuations during the quarter.
Liquidity and Capital Resources
-
At
December 31, 2021 , we had$12.8 million in cash and cash equivalents and$211.0 million of availability under our credit facility, subject to leverage restrictions, resulting in approximately$223.8 million of availability for portfolio company investments. Committed but unfunded portfolio obligations atDecember 31, 2021 were$49.4 million at par. We believe there is sufficient liquidity to meet all of the Company’s obligations and deploy new capital consistent with our strategy. -
Net leverage, adjusted for available cash, receivables for investments sold, payables for investments purchased and unamortized debt issuance costs, was 0.56x at quarter-end, and our 276% asset coverage ratio provided the Company with additional debt capacity of
$211.0 million under its asset coverage requirements, subject to borrowing capacity and borrowing base restrictions. Further, as ofDecember 31, 2021 , approximately 88% of our assets were invested in qualifying assets, exceeding the 70% regulatory requirement of a business development company. -
For the fourth quarter of 2021, the Company declared a cash dividend of
$0.10 per share, payable onApril 7, 2022 to stockholders of record at the close of business onMarch 17, 2022 .
Conference Call
Both the teleconference and webcast will be available for replay by
Prior to the webcast/teleconference, an investor presentation that complements the earnings conference call will be posted to BlackRock Capital Investment Corporation’s website within the Presentations section of the Investors page (https://www.blackrockbkcc.com/investors/news-and-events/disclaimer).
About
The Company's investment objective is to generate both current income and capital appreciation through debt and equity investments. We invest primarily in middle-market companies in the form of senior debt securities and loans, and our investment portfolio may include junior secured and unsecured debt securities and loans, each of which may include an equity component.
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Consolidated Statements of Assets and Liabilities |
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Assets |
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Investments at fair value: |
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Non-controlled, non-affiliated investments (cost of |
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Non-controlled, affiliated investments (cost of |
4,131,978 |
|
13,099,313 |
|
Controlled investments (cost of |
21,927,071 |
|
110,968,227 |
|
Total investments at fair value (cost of |
552,563,994 |
|
479,025,476 |
|
Cash and cash equivalents |
12,750,121 |
|
23,332,831 |
|
Interest, dividends and fees receivable |
3,671,722 |
|
2,138,304 |
|
Deferred debt issuance costs |
1,511,418 |
|
1,374,115 |
|
Receivable for investments sold |
690,550 |
|
5,439,507 |
|
Prepaid expenses and other assets |
788,469 |
|
409,357 |
|
Total assets |
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Liabilities |
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Debt (net of deferred issuance costs of |
|
|
|
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Payable for investments purchased |
11,679,798 |
|
9,193,917 |
|
Distributions payable |
7,392,972 |
|
— |
|
Management fees payable |
2,122,519 |
|
2,313,447 |
|
Income incentive fees payable |
170,002 |
|
1,849,597 |
|
Accrued capital gains incentive fees |
1,544,569 |
|
— |
|
Interest and debt related payables |
601,379 |
|
502,682 |
|
Accrued administrative expenses |
384,225 |
|
389,064 |
|
Accrued expenses and other liabilities |
1,553,507 |
|
2,662,569 |
|
Total liabilities |
222,324,301 |
|
196,709,313 |
|
Net assets |
|
|
|
|
Common stock, par value |
84,478 |
|
84,478 |
|
Paid-in capital in excess of par |
852,360,178 |
|
858,079,713 |
|
Distributable earnings (losses) |
(434,303,297) |
|
(476,857,055) |
|
|
(68,489,386) |
|
(66,296,859) |
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Total net assets |
349,651,973 |
|
315,010,277 |
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Total liabilities and net assets |
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Net assets per share |
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Consolidated Statements of Operations |
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Three Months Ended (Unaudited) |
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Year Ended |
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Investment income |
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Interest income (excluding PIK): |
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|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
$ |
11,858,713 |
|
|
$ |
8,160,377 |
|
|
$ |
40,366,030 |
|
|
$ |
31,426,192 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
117,138 |
|
|
|
11,867 |
|
|
|
474,862 |
|
Controlled investments |
|
|
— |
|
|
|
3,184,893 |
|
|
|
718,571 |
|
|
|
19,794,470 |
|
PIK interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
59,418 |
|
|
|
1,268,636 |
|
|
|
2,092,736 |
|
|
|
5,026,084 |
|
Non-controlled, affiliated investments |
|
|
121,265 |
|
|
|
121,049 |
|
|
|
481,800 |
|
|
|
461,367 |
|
Controlled investments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,053,664 |
|
Dividend income (excluding PIK): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
71,500 |
|
|
|
— |
|
Controlled investments |
|
|
116,648 |
|
|
|
1,220,030 |
|
|
|
1,647,661 |
|
|
|
8,190,499 |
|
PIK dividend income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
15,177 |
|
|
|
— |
|
|
|
15,177 |
|
|
|
— |
|
Other income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
429,090 |
|
|
|
543,312 |
|
|
|
839,678 |
|
|
|
620,705 |
|
Non-controlled, affiliated investments |
|
|
— |
|
|
|
(7,377 |
) |
|
|
— |
|
|
|
(3,055 |
) |
Controlled investments |
|
|
— |
|
|
|
3,186 |
|
|
|
— |
|
|
|
70,712 |
|
Total investment income |
|
|
12,600,311 |
|
|
|
14,611,244 |
|
|
|
46,245,020 |
|
|
|
67,115,500 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other debt expenses |
|
|
2,925,218 |
|
|
|
3,344,257 |
|
|
|
11,620,899 |
|
|
|
15,584,214 |
|
Management fees |
|
|
2,122,519 |
|
|
|
2,313,447 |
|
|
|
7,784,188 |
|
|
|
10,799,832 |
|
Incentive fees on income |
|
|
170,002 |
|
|
|
1,278,947 |
|
|
|
249,385 |
|
|
|
6,304,333 |
|
Incentive fees on capital gains(1) |
|
|
252,617 |
|
|
|
— |
|
|
|
1,544,569 |
|
|
|
— |
|
Administrative expenses |
|
|
384,225 |
|
|
|
389,064 |
|
|
|
1,354,283 |
|
|
|
1,457,979 |
|
Professional fees |
|
|
131,039 |
|
|
|
432,544 |
|
|
|
1,100,008 |
|
|
|
1,964,252 |
|
Insurance expense |
|
|
204,198 |
|
|
|
203,794 |
|
|
|
809,356 |
|
|
|
650,432 |
|
Director fees |
|
|
158,125 |
|
|
|
157,500 |
|
|
|
622,500 |
|
|
|
652,250 |
|
Investment advisor expenses |
|
|
87,500 |
|
|
|
87,500 |
|
|
|
350,000 |
|
|
|
350,000 |
|
Other operating expenses |
|
|
230,022 |
|
|
|
374,873 |
|
|
|
1,011,273 |
|
|
|
1,433,054 |
|
Total expenses, before incentive fee waiver |
|
|
6,665,465 |
|
|
|
8,581,926 |
|
|
|
26,446,461 |
|
|
|
39,196,346 |
|
Incentive fee waiver |
|
|
— |
|
|
|
(1,278,947 |
) |
|
|
(79,383 |
) |
|
|
(6,304,333 |
) |
Total expenses, net of incentive fee waiver |
|
|
6,665,465 |
|
|
|
7,302,979 |
|
|
|
26,367,078 |
|
|
|
32,892,013 |
|
Net investment income(1) |
|
|
5,934,846 |
|
|
|
7,308,265 |
|
|
|
19,877,942 |
|
|
|
34,223,487 |
|
Realized and Unrealized Gain (Loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
— |
|
|
|
(612,107 |
) |
|
|
21,408,577 |
|
|
|
(12,941,524 |
) |
Non-controlled, affiliated investments |
|
|
— |
|
|
|
(77,952 |
) |
|
|
(7,989,591 |
) |
|
|
(43,851,965 |
) |
Controlled investments |
|
|
(21,980,388 |
) |
|
|
— |
|
|
|
(32,496,018 |
) |
|
|
(59,194,744 |
) |
Net realized gain (loss) |
|
|
(21,980,388 |
) |
|
|
(690,059 |
) |
|
|
(19,077,032 |
) |
|
|
(115,988,233 |
) |
Net change in unrealized appreciation (depreciation): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
226,419 |
|
|
|
5,978,376 |
|
|
|
20,125,055 |
|
|
|
(2,123,600 |
) |
Non-controlled, affiliated investments |
|
|
(86,942 |
) |
|
|
848,530 |
|
|
|
6,932,957 |
|
|
|
35,523,356 |
|
Controlled investments |
|
|
22,565,269 |
|
|
|
(3,870,607 |
) |
|
|
38,914,666 |
|
|
|
(55,623,040 |
) |
Foreign currency translation |
|
|
— |
|
|
|
325,302 |
|
|
|
(285,360 |
) |
|
|
135,427 |
|
Net change in unrealized appreciation (depreciation) |
|
|
22,704,746 |
|
|
|
3,281,601 |
|
|
|
65,687,318 |
|
|
|
(22,087,857 |
) |
Net realized and unrealized gain (loss) |
|
|
724,358 |
|
|
|
2,591,542 |
|
|
|
46,610,286 |
|
|
|
(138,076,090 |
) |
Net Increase (Decrease) in Net Assets Resulting from Operations |
|
|
6,659,204 |
|
|
|
9,899,807 |
|
|
|
66,488,228 |
|
|
|
(103,852,603 |
) |
Net Investment Income Per Share—basic(1) |
|
$ |
0.08 |
|
|
$ |
0.10 |
|
|
$ |
0.27 |
|
|
$ |
0.49 |
|
Earnings (Loss) Per Share—basic(1) |
|
$ |
0.09 |
|
|
$ |
0.14 |
|
|
$ |
0.90 |
|
|
$ |
(1.49 |
) |
Weighted Average Shares Outstanding—basic |
|
|
73,950,159 |
|
|
|
72,358,355 |
|
|
|
74,153,145 |
|
|
|
69,801,849 |
|
Net Investment Income Per Share—diluted(1) |
|
$ |
0.08 |
|
|
$ |
0.10 |
|
|
$ |
0.27 |
|
|
$ |
0.49 |
|
Earnings (Loss) Per Share—diluted(1) |
|
$ |
0.09 |
|
|
$ |
0.14 |
|
|
$ |
0.83 |
|
|
$ |
(1.49 |
) |
Weighted Average Shares Outstanding—diluted |
|
|
90,943,896 |
|
|
|
89,352,092 |
|
|
|
91,146,882 |
|
|
|
86,795,585 |
|
(1) |
Net investment income and per share amounts displayed above are net of the accrual for incentive fees on capital gains which is reflected on a hypothetical liquidation basis in accordance with GAAP for the three months and year ended |
Supplemental Information
The Company reports its financial results on a generally accepted accounting principles (“GAAP”) basis; however, management believes that evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP basis financial measures. Management reviews non-GAAP financial measures to assess ongoing operations and, for the reasons described below, considers them to be effective indicators, for both management and investors, of the Company’s financial performance over time. The Company’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
The Company records its liability for incentive management fees based on capital gains by performing a hypothetical liquidation basis calculation at the end of each reporting period, as required by GAAP, which assumes that all unrealized capital appreciation and depreciation is realized as of the reporting date. It should be noted that Incentive Fees based on capital gains (if any) are not due and payable until the end of the annual measurement period, or every
Computations for the periods below are derived from the Company's financial statements as follows:
|
Three Months Ended |
Year Ended |
||||||
|
|
|
|
|
||||
GAAP Basis: |
|
|
|
|
|
|
|
|
Net Investment Income |
|
|
|
|
|
|
|
|
Net Investment Income per share |
0.08 |
|
0.10 |
|
0.27 |
|
0.49 |
|
Addback: GAAP incentive fee based on capital gains |
252,617 |
|
— |
|
1,544,569 |
|
— |
|
Addback: GAAP incentive fee based on Income net of incentive fee waiver |
170,002 |
|
— |
|
170,002 |
|
— |
|
Pre-Incentive Fee1: |
|
|
|
|
|
|
|
|
Net Investment Income |
|
|
|
|
|
|
|
|
Net Investment Income per share |
0.09 |
|
0.10 |
|
0.29 |
|
0.49 |
|
Less: Incremental incentive fee based on Income net of incentive fee waiver |
(170,002) |
|
— |
|
(170,002) |
|
— |
|
As Adjusted2: |
|
|
|
|
|
|
|
|
Net Investment Income |
|
|
|
|
|
|
|
|
Net Investment Income per share |
0.08 |
|
0.10 |
|
0.29 |
|
0.49 |
|
Note: The NII amounts for the three months and year ended
1 Pre-Incentive Fee: Amounts are adjusted to remove all incentive fees. Such fees have been accrued but are not due and payable at the reporting date.
2 As Adjusted: Amounts are adjusted to remove the GAAP accrual for incentive fee based on capital gains, and to include only the incremental incentive fee based on income. Adjusted amounts reflect the fact that no Incentive Fee on capital gains was realized and payable to the Advisor during the three months and years ended
Forward-looking statements
This press release, and other statements that
In addition to factors previously disclosed in BlackRock Capital Investment Corporation’s
BlackRock Capital Investment Corporation’s Annual Report on Form 10-K for the year ended
Available Information
BlackRock Capital Investment Corporation’s filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20220302005887/en/
Investor Contact:
212.810.5427
Press Contact:
212.810.5596
Source: