HOUSTON, Nov. 7, 2018 /PRNewswire/ -- Stellus Capital
Investment Corporation (NYSE:SCM) ("Stellus" or "the Company") today announced financial results for its third fiscal quarter
ended September 30, 2018.
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HIGHLIGHTS
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($ in millions, except data relating to per share amounts and number of
portfolio companies)
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|
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As of
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|
|
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Portfolio results
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September 30,
2018
|
|
|
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Total assets
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$511.4
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Investment portfolio, at fair value
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$478.0
|
|
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Net assets
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$227.9
|
|
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Weighted average yield on debt investments
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11.0%
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Net asset value per share
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$14.29
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|
|
|
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Quarter
|
|
Quarter
|
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ended
|
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ended
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September 30,
2018
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September 30,
2017
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Portfolio activity
|
|
|
|
|
|
|
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Total investments made, at par
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$31.9
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$71.4
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Number of new investments
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3
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4
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Repayments and sale of investments, including amortization
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$57.0
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$53.4
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Number of portfolio companies at
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|
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|
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end of period
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53
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46
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Operating results
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|
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Total investment income
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$14.5
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$10.0
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Net investment income
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$5.6
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$4.5
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Net investment income per share
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$0.35
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$0.29
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Core net investment income(1)
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$6.3
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$4.5
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Core net investment income per share(1)
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$0.39
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$0.29
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Realized Gains per share
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$0.17
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$0.33
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Distributions per share
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$0.34
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$0.34
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Net increase in net assets from operations
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$8.9
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$5.6
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Net increase in net assets from operations per share
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$0.56
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$0.36
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Weighted average shares outstanding during the period
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15,953,810
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15,668,415
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(1)
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Core net investment income, as presented, excludes the impact of capital
gains incentive fees. 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.
|
"We had a strong third quarter, generating core net investment income of $0.39 per share and a
realized gain of $0.17 per share. In addition, net asset value increased $0.22 per share to $14.29," said Robert T. Ladd,
Chief Executive Officer of Stellus Capital.
Portfolio and Investment Activity
We completed the third quarter of 2018 with a portfolio of $478.0 million (at fair value)
invested in 53 companies. As of September 30, 2018, our portfolio included
approximately 54% of first lien debt, 34% of second lien debt, 5% of unsecured debt and 7% of equity investments at fair
value. Our debt portfolio consisted of 90% floating rate investments (subject to interest rate floors) and 10% fixed rate
investments. The average size of our portfolio company investments was $9.0 million and our
largest portfolio company investment was approximately $29.0 million, both at fair value. The
weighted average yield on all of our debt investments as of September 30, 2018 was approximately
11.0%.
During the three months ended September 30, 2018, we made $31.9
million of investments in three new and three existing portfolio companies at par and received $57.0 million from amortization and repayments of certain other investments.
This compares to the portfolio as of September 30, 2017, which had a fair value of $355.3 million invested in 46 companies, comprised of 35% of first lien debt, 43% of second lien debt, 16% of
unsecured debt and 6% of equity investments at fair value. The weighted average yield on all of our debt investments as of
September 30, 2017 was approximately 11.0%. The debt portfolio consisted of and 77% floating
rate investments (subject to interest rate floors) and 23% fixed rate investments.
Results of Operations
Investment income for the three months ended September 30, 2018 and 2017 totaled $14.5 million and $10.0 million, respectively, most of which was interest income
from portfolio investments.
Operating expenses for the three months ended September 30, 2018 and 2017, totaled $8.9 million and $5.2 million, respectively. For the same respective periods,
base management fees totaled $ 2.2 million and $ 1.5 million, income
incentive fees totaled $ 1.6 million and $0.5 million, capital gains
incentive fees totaled $0.7 million and $0, fees and expenses related
to our borrowings totaled $ 3.4 million and $ 2.0 million (including
interest and amortization of deferred financing costs), administrative expenses totaled $ 0.3
million for both periods, and other expenses totaled $0.7 million and $0.9 million, respectively.
Net investment income was $5.6 million and $4.5 million, or
$0.35 and $0.29 per common share based on weighted average common
shares outstanding for the three months ended September 30, 2018 and 2017 of 15,953,810 and
15,668,415, respectively.
The capital gains incentive fee of $0.7 million for the three months ended September 30, 2018 was accrued for GAAP purposes due to the increase in realized and unrealized gains over the
quarter. There can be no assurance that unrealized appreciation or depreciation will be realized in the future.
Accordingly, such fees, as calculated and accrued, would not necessarily be payable under the investment advisory agreement, and
may never be paid based upon the computation of incentive fees in subsequent periods. Excluding this accrual, net
investment income for the three months ended September 30, 2018 would be $6.3 million, or $0.39 per share. There was no such fee for the three
months ended September 30, 2017.
The Company's investment portfolio had a net change in unrealized appreciation (depreciation) for the three months ended
September 30, 2018 and 2017, of $0.5 million and ($4.1) million, respectively. For the three months ended September 30, 2018
and 2017, the Company had realized gains of $2.8 million and $5.2
million, respectively.
Net increase in net assets resulting from operations totaled $8.9 million and $5.6 million, or $0.56 and $0.36 per common share
based on weighted average common shares outstanding for the three months ended September 30, 2018
and 2017 of 15,953,810 and 15,668,415, respectively.
Liquidity and Capital Resources
As of September 30, 2018 and 2017, our credit facilities provided for borrowings in an aggregate
amount up to $180.0 and $120.0 million, respectively, on a committed
basis. As of September 30, 2018, our credit facility had an accordion feature which allowed
for potential future expansion of the facility size to $195.0 million. As of September 30, 2018 and December 31, 2017, we had $83.3
million and $36.0 million in outstanding borrowings under the credit facility,
respectively.
For the nine months ended September 30, 2018, our operating activities used cash of $79.2 million primarily in connection with purchases and origination of portfolio investments, which was
slightly offset by repayments of our investments. For the same period, our financing activities provided cash of
$84.0 million, due to borrowings under our credit facility, as well as SBA-guaranteed debentures
drawn during the period.
For the nine months ended September 30, 2017, our operating activities provided cash of
$29.0 million, primarily in connection with cash interest received and repayments of our
investments, and our financing activities used cash of $26.5 million, primarily related to the
repayments under our credit facility and distributions to stockholders, offset by an issuance of common stock.
Distributions
During the three months ended September 30, 2018 and 2017, we declared aggregate distributions
of $0.34 per share ($5.4 million and $5.3
million, respectively) for each quarter. Tax characteristics of all distributions will be reported to stockholders on Form
1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.
Recent Portfolio Activity
On July 5, 2018 we received $4.0 million in full realization on
the equity of MBS Holdings, Inc., resulting in a realized gain of $2.8 million.
On July 31, 2018, we received full repayment on the second lien term loan of Sitel Worldwide
Corporation for total proceeds of $10.1 million, including a $0.1million prepayment fee.
On August 3, 2018, we invested $7.5 million in the first lien term
loan and $0.9 million in the unfunded delayed draw term loan of Adams Publishing Group, LLC, a
platform of multiple newspaper and publishing businesses across the United States.
On August 8, 2018, we invested $11.4 million in the first lien
term loan and $2.0 million in the unfunded revolver of Advanced Barrier Extrusions, a manufacturer
of high barrier forming web films. Additionally, we invested $0.3 million in the common equity of
the company.
On August 8, 2018, we invested $7.0 million in the first lien term
loan and $5.4 million in the unfunded delayed draw term loan of Convergence Technologies, Inc., a
reseller of value-added technology. Additionally, we also invested $0.4 million in the common
equity of the company.
On August 16, 2018, we received full repayment on the second lien term loan of Resolute
Industrial, LLC for total proceeds of $17.3 million, including a $0.2
million prepayment fee.
On August 27, 2018, we made an additional investment of $0.3
million in the first lien delayed draw term loan of Wise Holding Corporation, an existing portfolio company.
On September 25 2018, we received full payoff of our $21.4 million
second lien term loan to Empirix, Inc.
On September 26, 2018, we made additional investments of $3.9
million in the first lien term loan, $0.6 million in the unfunded revolver and $1.7 million in the unfunded delayed draw term loan of BFC Solmetex LLC, an existing portfolio company.
Events Subsequent to September 30, 2018
On October 1, 2018, we received full repayment on the second lien term loan of Roberts-Gordon, LLC for total proceeds of $7.2
million, including a $0.03 million prepayment fee. We also received a distribution
related to our equity of $0.9 million which resulted in a realized gain of $0.4 million.
On October 1, 2018, we invested $10.0 million in the second lien
term loan of NGS US Finco, LLC, a manufacturer of rotary meters, pipeline distribution repair/upgrade products, electric
actuators and chemical pumps to natural gas utilities and energy/industrial distributors.
On October 2, 2018, we invested $3.3 million in the first lien
term loan of TechInsights, Inc., an existing portfolio company.
On October 18, 2018, we invested $10.7 million in the first lien
term loan and $3.7 million in the unfunded delayed draw term loan of Premiere Digital Services,
Inc., a provider of digital media services to the entertainment industry. Additionally, we invested $0.5 million in the equity of the company.
On October 23, 2018, we had a partial sell down of the first lien term loan of Good Source
Solutions, Inc. for $9.9 million.
On October 31, 2018, we received full repayment on the second lien term loan of Keais Records
Service, LLC for total proceeds of $7.9 million, including a $0.1
million prepayment fee.
Credit Facility
The outstanding balance under the credit facility as of November 5, 2018 was $62.1 million.
SBA-guaranteed Debentures
The total balance of SBA-guaranteed Debentures outstanding as of November 5, 2018 was
$150.0 million.
Conference Call Information
Stellus Capital Investment Corporation will host a conference call to discuss these results on Wednesday, November 7, 2018 at 10:00 AM, Central Standard 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 877-260-1479 (domestic). Use passcode 9137982. Starting
approximately twenty-four hours after the conclusion of the call, a replay will be available through Thursday, November 15, 2018 by dialing (888) 203-1112 and entering passcode 9137982. The replay will also be
available on the company's website.
Contacts
Stellus Capital Investment Corporation
W. Todd Huskinson, (713) 292-5414
Chief Financial Officer
thuskinson@stelluscapital.com
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PART I — FINANCIAL INFORMATION
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STELLUS CAPITAL INVESTMENT CORPORATION
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CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
|
|
|
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|
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September 30,
|
|
|
|
|
|
2018
|
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December 31,
|
|
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(Unaudited)
|
|
2017
|
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ASSETS
|
|
|
|
|
|
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Non-controlled, affiliated investments, at fair value
|
|
|
|
|
|
|
|
(amortized cost of $52,184 and $1,052,185, respectively)
|
$
|
55,000
|
|
$
|
990,000
|
|
Non-controlled, non-affiliated investments, at fair value
|
|
|
|
|
|
|
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(amortized cost of $470,695,036 and $367,401,021,
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|
|
|
|
|
|
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respectively)
|
|
477,949,195
|
|
|
370,849,772
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|
Cash and cash equivalents
|
|
29,882,423
|
|
|
25,110,718
|
|
Receivable for sales and repayments of investments
|
|
81,683
|
|
|
26,891
|
|
Interest receivable
|
|
3,110,008
|
|
|
2,922,204
|
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Other receivables
|
|
135,246
|
|
|
—
|
|
Deferred offering costs
|
|
17,898
|
|
|
—
|
|
Prepaid expenses
|
|
125,970
|
|
|
361,270
|
|
|
Total Assets
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$
|
511,357,423
|
|
$
|
400,260,855
|
|
LIABILITIES
|
|
|
|
|
|
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Notes payable
|
$
|
47,558,013
|
|
$
|
47,306,488
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|
Credit facility payable
|
|
81,901,962
|
|
|
39,332,479
|
|
SBA-guaranteed debentures
|
|
146,235,472
|
|
|
87,818,813
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Dividends payable
|
|
1,807,570
|
|
|
1,806,671
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Management fees payable
|
|
1,422,948
|
|
|
1,621,592
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Income incentive fees payable
|
|
1,795,933
|
|
|
371,647
|
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Capital gains incentive fees payable
|
|
1,173,250
|
|
|
—
|
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Interest payable
|
|
679,293
|
|
|
1,021,173
|
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Unearned revenue
|
|
304,061
|
|
|
139,304
|
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Administrative services payable
|
|
385,417
|
|
|
327,033
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Deferred tax liability
|
|
34,353
|
|
|
—
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Other accrued expenses and liabilities
|
|
154,067
|
|
|
268,413
|
|
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Total Liabilities
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$
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283,452,339
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|
$
|
180,013,613
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|
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Commitments and contingencies (Note 7)
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|
|
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|
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Net Assets
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$
|
227,905,084
|
|
$
|
220,247,242
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NET ASSETS
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|
|
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Common Stock, par value $0.001 per share (200,000,000 shares
|
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|
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and 100,000,000 shares authorized; 15,953,810 and 15,945,879
|
|
|
|
|
|
|
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issued and outstanding, respectively)
|
$
|
15,954
|
|
$
|
15,946
|
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Paid-in capital
|
|
228,160,772
|
|
|
228,066,762
|
|
Accumulated net realized loss from investments, net of
|
|
|
|
|
|
|
|
cumulative dividends of $4,246,819 for both periods
|
|
(5,603,190)
|
|
|
(10,786,240)
|
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Distributions in excess of net investment income
|
|
(1,891,073)
|
|
|
(435,794)
|
|
Net Unrealized appreciation on non-controlled,
non-affiliated
|
|
|
|
|
|
|
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investments and cash equivalents, net of provision for
|
|
|
|
|
|
|
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taxes of $34,353 and $0, respectively
|
|
7,219,806
|
|
|
3,448,753
|
|
Net Unrealized appreciation (depreciation) on non-controlled,
|
|
|
|
|
|
|
|
affiliated investments
|
|
2,815
|
|
|
(62,185)
|
|
|
Net Assets
|
$
|
227,905,084
|
|
$
|
220,247,242
|
|
|
Total Liabilities and Net Assets
|
$
|
511,357,423
|
|
$
|
400,260,855
|
|
|
Net Asset Value Per Share
|
$
|
14.29
|
|
$
|
13.81
|
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STELLUS CAPITAL INVESTMENT CORPORATION
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|
|
|
|
|
|
|
|
|
|
|
|
|
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CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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For the
|
|
For the
|
|
For the
|
|
For the
|
|
|
|
three
|
three
|
|
nine
|
|
nine
|
|
|
|
months ended
|
months ended
|
|
months ended
|
|
months ended
|
|
|
|
September 30,
|
September 30,
|
|
September 30,
|
|
September 30,
|
|
|
|
2018
|
2017
|
|
2018
|
|
2017
|
|
INVESTMENT INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
$
|
13,859,431
|
|
$
|
9,728,749
|
|
$
|
36,804,945
|
|
$
|
28,847,532
|
|
Other income
|
|
628,192
|
|
|
249,596
|
|
|
1,214,116
|
|
|
1,389,158
|
|
|
Total Investment Income
|
$
|
14,487,623
|
|
$
|
9,978,345
|
|
$
|
38,019,061
|
|
$
|
30,236,690
|
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OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
$
|
2,172,948
|
|
$
|
1,546,781
|
|
$
|
5,970,867
|
|
$
|
4,634,318
|
|
Valuation fees
|
|
132,325
|
|
|
137,445
|
|
|
287,042
|
|
|
326,839
|
|
Administrative services expenses
|
|
348,901
|
|
|
313,256
|
|
|
1,008,293
|
|
|
933,214
|
|
Income incentive fees
|
|
1,565,301
|
|
|
462,743
|
|
|
3,846,441
|
|
|
2,718,586
|
|
Capital gains incentive fees
|
|
651,231
|
|
|
—
|
|
|
1,173,250
|
|
|
—
|
|
Professional fees
|
|
289,125
|
|
|
356,654
|
|
|
982,384
|
|
|
803,818
|
|
Directors' fees
|
|
73,000
|
|
|
83,000
|
|
|
244,000
|
|
|
254,000
|
|
Insurance expense
|
|
87,601
|
|
|
111,680
|
|
|
259,947
|
|
|
331,398
|
|
Interest expense and other fees
|
|
3,440,115
|
|
|
2,042,608
|
|
|
8,917,739
|
|
|
5,892,047
|
|
Other general and administrative expenses
|
|
117,102
|
|
|
145,494
|
|
|
516,509
|
|
|
481,700
|
|
|
Total Operating Expenses
|
$
|
8,877,649
|
|
$
|
5,199,661
|
|
$
|
23,206,472
|
|
$
|
16,375,920
|
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
302,732
|
|
|
—
|
|
|
302,732
|
|
|
Net Investment Income
|
$
|
5,609,974
|
|
$
|
4,475,952
|
|
$
|
14,812,589
|
|
$
|
13,558,038
|
|
|
Net Realized Gain on Non-Controlled, Non-Affiliated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments and Cash Equivalents
|
$
|
2,771,817
|
|
$
|
5,211,960
|
|
$
|
5,183,050
|
|
$
|
4,499,963
|
|
|
Net Change in Unrealized Appreciation (Depreciation) on Non-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Controlled, Non-Affiliated Investments and Cash Equivalents
|
$
|
529,552
|
|
$
|
(4,011,314)
|
|
$
|
3,805,406
|
|
$
|
(248,293)
|
|
|
Net Change in Unrealized Appreciation (Depreciation) on Non-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Controlled, Affiliated Investments and Cash Equivalents
|
|
(1,667)
|
|
|
(40,000)
|
|
|
65,000
|
|
|
(112,185)
|
|
|
Benefit (provision) for Taxes on Net Unrealized Gain (Loss) on
Investments
|
$
|
(25,159)
|
|
$
|
-
|
|
$
|
(34,353)
|
|
$
|
8,593
|
|
|
Net Increase in Net Assets Resulting from Operations
|
$
|
8,884,517
|
|
$
|
5,636,598
|
|
$
|
23,831,692
|
|
$
|
17,706,116
|
|
|
Net Investment Income Per Share
|
$
|
0.35
|
|
$
|
0.29
|
|
$
|
0.93
|
|
$
|
0.93
|
|
|
Net Increase in Net Assets Resulting from Operations Per
Share
|
$
|
0.56
|
|
$
|
0.36
|
|
$
|
1.49
|
|
$
|
1.22
|
|
|
Weighted Average Shares of Common Stock Outstanding
|
|
15,953,810
|
|
|
15,668,415
|
|
|
15,953,491
|
|
|
14,510,408
|
|
|
Distributions Per Share
|
$
|
0.34
|
|
$
|
0.34
|
|
$
|
1.02
|
|
$
|
1.02
|
|
STELLUS CAPITAL INVESTMENT CORPORATION
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
|
|
|
|
|
|
|
|
|
|
For the
|
|
For the
|
|
|
|
nine
|
nine
|
|
|
|
months ended
|
months ended
|
|
|
|
September 30,
|
September 30,
|
|
|
|
2018
|
2017
|
|
Increase in Net Assets Resulting from Operations
|
|
|
|
|
|
|
Net investment income
|
$
|
14,812,589
|
|
$
|
13,558,038
|
|
Net realized gain on investments and cash equivalents
|
|
5,183,050
|
|
|
4,499,963
|
|
Net change in unrealized appreciation (depreciation) on
non-controlled,
|
|
|
|
|
|
|
|
non-affiliated investments and cash equivalents
|
|
3,805,406
|
|
|
(248,293)
|
|
Net change in unrealized appreciation (depreciation) on
non-controlled,
|
|
|
|
|
|
|
|
affiliated investments and cash equivalents
|
|
65,000
|
|
|
(112,185)
|
|
Benefit (provision) for taxes on unrealized appreciation on
investments
|
|
(34,353)
|
|
|
8,593
|
|
Net Increase in Net Assets Resulting from Operations
|
$
|
23,831,692
|
|
$
|
17,706,116
|
|
Stockholder distributions
|
|
|
|
|
|
|
Net investment income
|
|
(16,267,868)
|
|
|
(14,903,394)
|
|
Total Distributions
|
$
|
(16,267,868)
|
|
$
|
(14,903,394)
|
|
Capital share transactions
|
|
|
|
|
|
|
Issuance of common stock
|
$
|
94,788
|
|
$
|
47,491,626
|
|
Sales load
|
|
—
|
|
|
(1,340,131)
|
|
Offering costs
|
|
—
|
|
|
(299,960)
|
|
Partial Share Redemption
|
|
(770)
|
|
|
—
|
|
Net increase in net assets resulting from capital share
transactions
|
$
|
94,018
|
|
$
|
45,851,535
|
|
Total increase in net assets
|
$
|
7,657,842
|
|
$
|
48,654,257
|
|
Net assets at beginning of period
|
$
|
220,247,242
|
|
$
|
170,881,785
|
|
Net assets at end of period (includes $1,891,073 and $1,781,150
of
|
|
|
|
|
|
|
distributions in excess of net investment income,
respectively)
|
$
|
227,905,084
|
|
$
|
219,536,042
|
|
STELLUS CAPITAL INVESTMENT CORPORATION
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
|
|
For the
|
|
For the
|
|
nine
|
nine
|
|
months ended
|
months ended
|
|
September 30,
|
September 30,
|
|
2018
|
2017
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net Increase in net assets resulting from operations
|
$
|
23,831,692
|
|
|
17,706,116
|
|
Adjustments to reconcile net increase in net assets resulting
from
|
|
|
|
|
|
|
|
operations to net cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
Purchases of investments
|
|
(198,335,218)
|
|
|
(117,683,094)
|
|
|
Proceeds from sales and repayments of investments
|
|
102,813,575
|
|
|
133,380,057
|
|
|
Net change in unrealized depreciation (appreciation) on
investments
|
|
(3,870,406)
|
|
|
360,478
|
|
|
Increase in investments due to PIK
|
|
(491,628)
|
|
|
(347,482)
|
|
|
Amortization of premium and accretion of discount, net
|
|
(1,152,487)
|
|
|
(881,710)
|
|
|
Deferred tax provision (benefit)
|
|
34,353
|
|
|
(8,593)
|
|
|
Amortization of loan structure fees
|
|
329,483
|
|
|
372,820
|
|
|
Amortization of deferred financing costs
|
|
251,525
|
|
|
165,763
|
|
|
Amortization of loan fees on SBA-guaranteed debentures
|
|
471,658
|
|
|
243,306
|
|
|
Net realized gain on investments
|
|
(5,183,050)
|
|
|
(4,499,963)
|
|
|
Loss on extinguishment of debt
|
|
—
|
|
|
302,732
|
|
Changes in other assets and liabilities
|
|
|
|
|
|
|
|
Decrease (increase) in interest receivable
|
|
(187,804)
|
|
|
457,744
|
|
|
Increase in other receivable
|
|
(135,246)
|
|
|
(3,058)
|
|
|
Decrease in prepaid expenses
|
|
235,300
|
|
|
318,054
|
|
|
Decrease in management fees payable
|
|
(198,644)
|
|
|
(61,514)
|
|
|
Increase (decrease) in incentive fees payable
|
|
1,424,286
|
|
|
(733,654)
|
|
|
Increase in capital gains incentive fees payable
|
|
1,173,250
|
|
|
—
|
|
|
Increase in directors' fees payable
|
|
—
|
|
|
83,000
|
|
|
Increase in administrative services payable
|
|
58,384
|
|
|
41,084
|
|
|
Decrease in interest payable
|
|
(341,880)
|
|
|
(278,895)
|
|
|
Increase in unearned revenue
|
|
164,757
|
|
|
108,139
|
|
|
Decrease in other accrued expenses and liabilities
|
|
(114,346)
|
|
|
(37,706)
|
|
Net cash provided by (used in) operating activities
|
$
|
(79,222,446)
|
|
$
|
29,003,624
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
Proceeds from the issuance of common stock
|
$
|
—
|
|
$
|
47,491,626
|
|
|
Sales load for common stock issued
|
|
—
|
|
|
(1,340,131)
|
|
|
Offering costs paid for common stock issued
|
|
(17,898)
|
|
|
(299,961)
|
|
|
Proceeds from notes issued
|
|
—
|
|
|
48,875,000
|
|
|
Financing costs paid for Notes issued
|
|
—
|
|
|
(1,688,961)
|
|
|
Repayments on Notes issued
|
|
—
|
|
|
(25,000,000)
|
|
|
Stockholder distributions paid
|
|
(16,172,181)
|
|
|
(14,521,068)
|
|
|
Proceeds from SBA Debentures
|
|
60,000,000
|
|
|
—
|
|
|
Financing costs paid on SBA Debentures
|
|
(2,055,000)
|
|
|
—
|
|
|
Borrowings under Credit Facility
|
|
188,300,000
|
|
|
116,000,000
|
|
|
Repayments of Credit Facility
|
|
(145,750,000)
|
|
|
(196,000,000)
|
|
|
Financing costs paid on Credit facility
|
|
(310,000)
|
|
|
(47,453)
|
|
|
Partial Share Redemption
|
|
(770)
|
|
|
—
|
|
Net cash provided by (used in) financing activities
|
$
|
83,994,151
|
|
$
|
(26,530,948)
|
|
Net increase in cash and cash equivalents
|
$
|
4,771,705
|
|
$
|
2,472,676
|
|
Cash and cash equivalents balance at beginning of period
|
|
25,110,718
|
|
|
9,194,129
|
|
Cash and cash equivalents balance at end of period
|
$
|
29,882,423
|
|
$
|
11,666,805
|
|
Supplemental and non-cash financing activities
|
|
|
|
|
|
|
Interest expense paid
|
$
|
8,201,952
|
|
$
|
5,384,053
|
|
Excise tax paid
|
|
27,717
|
|
|
37,648
|
|
Shares issued pursuant to Dividend Reinvestment Plan
|
|
94,788
|
|
|
—
|
|
Conversion from debt to equity
|
|
—
|
|
|
864,101
|
|
Increase in Distribution Payable
|
|
899
|
|
|
382,326
|
|
Reconciliation of Core Net Investment Income
|
|
(Unaudited)
|
|
|
|
|
Quarter
|
|
Quarter
|
|
|
ended
|
|
ended
|
|
|
September 30,
2018
|
|
September 30,
2017
|
|
Net investment income
|
$5,609,974
|
|
$4,475,952
|
|
Capital gains incentive fee
|
$651,231
|
|
$-
|
|
Core net investment income(1)
|
$6,261,205
|
|
$4,475,952
|
|
|
|
|
|
|
Per share amounts:
|
|
|
|
|
Net investment income per share
|
$0.35
|
|
$0.29
|
|
Core net investment income per share(1)
|
$0.39
|
|
$0.29
|
|
|
|
|
|
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SOURCE Stellus Capital Investment Corporation