Announces First Quarter 2024 Earnings Release
and Conference Call Schedule
HOUSTON, April 16,
2024 /PRNewswire/ -- Main Street Capital
Corporation (NYSE: MAIN) ("Main Street" or the "Company") is
pleased to announce its preliminary operating results for the first
quarter of 2024 and its first quarter 2024 earnings release and
conference call schedule.
In commenting on the Company's operating results for the first
quarter of 2024, Dwayne L. Hyzak,
Main Street's Chief Executive Officer, stated, "We are extremely
pleased with our performance in the first quarter, which resulted
in continued strong operating results, including a new record for
net asset value per share for the seventh consecutive quarter,
net investment income per share and distributable net investment
income per share that significantly exceeded the dividends paid to
our shareholders and an estimated return on equity of 17% for
the quarter. These results demonstrate the continued and
sustainable strength of our overall platform, the benefits of our
differentiated and diversified investment strategies, the unique
contributions of our asset management business and the continued
underlying strength and quality of our portfolio companies. We are
also pleased that we generated growth in both our lower middle
market and private loan investment portfolios in the first quarter
and ended the quarter with attractive investment pipelines in both
investment strategies, which we expect will be helpful as we work
to maintain our positive momentum from the last few quarters in the
future."
Mr. Hyzak continued, "Despite the significant increases in the
total dividends paid to our shareholders over the last few years,
which increased by another 20% in the first quarter of 2024
compared to the first quarter of 2023, our positive performance in
the first quarter allowed us to continue to generate distributable
net investment income per share that significantly exceeded the
total dividends paid to our shareholders. Our estimated
distributable net investment income for the first quarter of 2024
exceeded the monthly dividends paid to our shareholders by over
52.5% and the total dividends paid to our shareholders by over
7.5%. Based upon the continued strength of our performance in the
first quarter, we expect another meaningful supplemental dividend
to be paid in the second quarter of 2024. This would represent
our eleventh consecutive quarterly supplemental dividend, to
go with the seven increases to our regular monthly dividends
in the same time period, allowing us to deliver significant value
to our shareholders, while continuing to maintain a conservative
dividend policy and retain a meaningful portion of our income for
the future benefit of our stakeholders."
Preliminary Estimates of First Quarter 2024 Results
Main Street's preliminary estimate of first quarter 2024 net
investment income ("NII") is $1.04 to
$1.06 per share and distributable net
investment income ("DNII") is $1.10
to $1.12 per share.(1)
Main Street's preliminary estimate of net asset value ("NAV")
per share as of March 31, 2024 is $29.51 to $29.57,
representing an increase of $0.31 to
$0.37 per share, or 1.1% to 1.3%,
from the NAV per share of $29.20 as
of December 31, 2023, with this
increase after the impact of the supplemental dividend paid in
March 2024 of $0.30 per share. The estimated increase in NAV
per share is primarily due to the net fair value increase on the
investment portfolio resulting from the net unrealized appreciation
and the net realized losses on portfolio investments, including an
increase in the fair value of the wholly-owned asset manager, the
accretive impact of equity issuances during the quarter and the
estimated NII, which exceeded the regular monthly dividends of
$0.72 per share and supplemental
dividend of $0.30 per share paid in
the first quarter, with these increases partially offset by the net
tax expense for the quarter.
As a result of Main Street's preliminary estimates of NII and
net changes in the fair market value of its investment portfolio as
noted above, Main Street estimates that it generated a quarterly
annualized return on equity of 16% to 18% for the first quarter of
2024.(2)
Investment Portfolio Activity
The Company's first quarter 2024 operating activities include
the following investment activity in the lower middle market
("LMM"), private loan and middle market investment strategies:
- $91.8 million in total LMM
portfolio investments, which after aggregate repayments of debt
principal and return of invested equity capital from several LMM
portfolio investments resulted in a net increase of $67.0 million in the total cost basis of the LMM
investment portfolio;
- $154.5 million in total private
loan investments, which after aggregate repayments of debt
principal from several private loan portfolio investments, return
of invested equity capital from a private loan portfolio investment
and a decrease in cost basis due to realized losses on several
private loan portfolio investments resulted in a net increase of
$54.9 million in the total cost basis
of the private loan investment portfolio; and
- a net decrease of $21.9 million
in the total cost basis of the middle market investment
portfolio.
First Quarter 2024 Earnings Release and Conference Call
Scheduled
Main Street's first quarter 2024 results will be released on
Thursday, May 9, 2024, after the financial markets close. In
conjunction with the release, Main Street has scheduled a
conference call, which will be broadcast live via phone and over
the Internet, on Friday, May 10, 2024, at 10:00 a.m. Eastern time. Investors may
participate either by phone or audio webcast.(3)
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By
Phone:
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Dial 412-902-0030 at
least 10 minutes before the call. A replay will be available
through May 17, 2024 by dialing 201-612-7415 and using the
access code 13745533#.
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By
Webcast:
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Connect to the webcast
via the Investor Relations section of Main Street's website at
www.mainstcapital.com. Please log in at least 10 minutes in advance
to register and download any necessary software. A replay of the
conference call will be available on Main Street's website shortly
after the call and will be accessible until the date of Main
Street's earnings release for the next quarter.
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ABOUT MAIN STREET CAPITAL CORPORATION
Main Street (www.mainstcapital.com) is a principal investment
firm that primarily provides long-term debt and equity capital to
lower middle market companies and debt capital to middle market
companies. Main Street's portfolio investments are typically made
to support management buyouts, recapitalizations, growth
financings, refinancings and acquisitions of companies that operate
in diverse industry sectors. Main Street seeks to partner with
entrepreneurs, business owners and management teams and generally
provides "one-stop" financing alternatives within its lower middle
market investment strategy. Main Street's lower middle market
portfolio companies generally have annual revenues between
$10 million and $150 million. Main Street's middle market
portfolio companies are generally larger in size than its lower
middle market portfolio companies.
Main Street, through its wholly owned portfolio company MSC
Adviser I, LLC ("MSC Adviser"), also maintains an asset management
business through which it manages investments for external parties.
MSC Adviser is registered as an investment adviser under the
Investment Advisers Act of 1940, as amended.
FORWARD-LOOKING STATEMENTS AND OTHER MATTERS
Main Street cautions that statements in this press release which
are forward-looking and provide other than historical information,
including but not limited to the preliminary estimates of first
quarter 2024 financial information and results and the declaration
and payment of future dividends, are based on current conditions
and information available to Main Street as of the date hereof.
Although its management believes that the expectations reflected in
those forward-looking statements are reasonable, Main Street can
give no assurance that those expectations will prove to be correct.
Those forward-looking statements are made based on various
underlying assumptions and are subject to numerous uncertainties
and risks, including, without limitation, such factors described
under the captions "Cautionary Statement Concerning Forward-Looking
Statements" and "Risk Factors" included in Main Street's filings
with the Securities and Exchange Commission (the "SEC")
(www.sec.gov). Main Street undertakes no obligation to update the
information contained herein to reflect subsequently occurring
events or circumstances, except as required by applicable
securities laws and regulations.
The preliminary estimates of first quarter 2024 financial
information and results furnished above are based on Main Street
management's preliminary determinations and current expectations,
and such information is inherently uncertain. The preliminary
estimates are subject to completion of Main Street's customary
quarter-end closing and review procedures and third-party review,
including the determination of the fair value of Main Street's
portfolio investments. As a result, actual results could differ
materially from the current preliminary estimates based on
adjustments made during Main Street's quarter-end closing and
review procedures and third-party review, and Main Street's
reported information in its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2024 may differ from this information,
and any such differences may be material. In addition, the
information furnished above does not include all of the information
regarding Main Street's financial condition and results of
operations for the quarter ended March 31, 2024 that may be
important to readers. As a result, readers are cautioned not to
place undue reliance on the information furnished in this press
release and should view this information in the context of Main
Street's full first quarter 2024 results when such results are
disclosed by Main Street in its Quarterly Report on Form 10-Q for
the quarter ended March 31, 2024. The information furnished in
this press release is based on current Main Street management
expectations that involve substantial risks and uncertainties that
could cause actual results to differ materially from the results
expressed in, or implied by, such information.
Main Street has an existing effective shelf registration
statement on Form N-2 on file with the SEC relating to the offer
and sale from time to time of its securities. Investors are advised
to carefully consider the investment objective, risks and charges
and expenses of Main Street before investing in any of Main
Street's securities. The prospectus included in the shelf
registration statement, together with any related prospectus
supplement, contain this and other information about Main Street
and should be read carefully before investing. A copy of the
prospectus and any related prospectus supplement may be obtained by
contacting Main Street.
End Notes
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(1)
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Distributable net
investment income is net investment income as determined in
accordance with U.S. Generally Accepted Accounting Principles, or
U.S. GAAP, excluding the impact of non-cash compensation expenses,
which includes both share-based compensation expenses and deferred
compensation expense or benefit. Main Street believes presenting
distributable net investment income per share is useful and
appropriate supplemental disclosure for analyzing its financial
performance, since share-based compensation does not require
settlement in cash and deferred compensation expense or benefit
does not result in a net cash impact to Main Street upon
settlement. However, distributable 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. Instead, distributable net investment
income should be reviewed only in connection with such U.S. GAAP
measures in analyzing Main Street's financial performance. In order
to reconcile estimated distributable net investment income per
share to estimated net investment income per share in accordance
with U.S. GAAP for the first quarter of 2024, an estimated $0.05 to
$0.06 per share of non-cash compensation expenses are added back to
calculate estimated distributable net investment income per
share.
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(2)
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Return on equity equals
the net increase in net assets resulting from operations divided by
the average quarterly total net assets.
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(3)
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No information
contained on the Company's website or disclosed on the May 10, 2024
conference call, including the webcast and the archived versions,
is incorporated by reference in this press release or any of the
Company's filings with the SEC, and you should not consider that
information to be part of this press release or any other such
filing.
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Contacts:
Main Street Capital Corporation
Dwayne L. Hyzak, CEO,
dhyzak@mainstcapital.com
Jesse E. Morris, CFO and COO,
jmorris@mainstcapital.com
713-350-6000
Dennard Lascar Investor
Relations
Ken Dennard /
ken@dennardlascar.com
Zach Vaughan /
zvaughan@dennardlascar.com
713-529-6600
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SOURCE Main Street Capital Corporation