Summary of key QQ3 2024 metrics and notable YoY/QoQ trends:
- Revenue: $35,878,635; YoY change -1.43%; QoQ change -16.57%.
- Gross profit: $35,878,635; gross margin effectively 100% in reported data (note: reporting artifact present in data).
- Operating expenses: $23,442,980; interest expense: $13,044,000; EBITDA: $22,042,442; EBITDARatio: 0.6144; Operating income: $22,042,442.
- Income before tax: $36,625,000; income tax expense: $163,500; net income: $8,834,942; net income margin: ~24.6%; basic EPS: $0.64; weighted average shares: 13,789,951.
- Adjusted NII (quarter): $13.1 million; YoY growth +44%; QoQ decline -1% (partially due to higher share count from ATM). Adjusted NII per share: $1.01; YoY +31%; QoQ -6%.
- NAV at quarter-end: $359.6 million; NAV per share: $27.42; QoQ NAV per share decline: $1.02; YoY NAV per share decline: 2.9%.
- AUM: $1.11 billion (record level); portfolio on slide shows 55 portfolio companies, 1 CLO fund, 1 JV; 86% first lien; 32% last-out.
- Liquidity and dry powder: $222 million available to grow assets by ~20% without external financing (cash $47 million; $145 million undrawn SBA debentures; $30 million undrawn revolver; $47 million cash).
- Dividends: quarterly dividend $0.72 per share (up 6% YoY); payout richly funded by NII with over-earnings vs. adjusted NII (dividend over-earnings by ~40% relative to quarterly adjusted NII of $1.01 per share).
- Balance sheet: Total assets $1.1717B; total debt $793.6M; net debt $746.6M; cash and equivalents $47.0M; equity $359.6M; debt-to-equity 2.20; price-to-book ~0.95; current ratio 18.55; dividend yield ~2.53% based on reported ratios; operating cash flow: $94.16M; free cash flow: $94.16M.
- Portfolio quality: 97.1% of credits rated in highest category; 3 credits on non-accrual (Zollege, Knowland, Pepper Palace); 82% of portfolio generating results at or above prior quarter; core BDC portfolio down 0.9% below cost with $4.3M net unrealized appreciation in remaining 50 portfolio companies; CLO/JV contributed ~$6.5M unrealized depreciation.
- Margin and yield dynamics: core BDC asset yield ~12.5% (down 10 bps YoY due to Zollege non-accrual); CLO yield ~8.0% (up from 6.0% prior quarter).
- Outlook indicators: management notes disciplined deployment, strong deal-flow infrastructure, SBIC III ramp, and substantial liquidity; no near-term guidance provided, but emphasized readiness to deploy capital when risk-adjusted returns are favorable.