HOUSTON , May 6, 2021 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus" or "the Company") today announced financial results for its fiscal first quarter ended March 31, 2021 .
Management Commentary
Robert T. Ladd , Chief Executive Officer of Stellus, stated, "I am pleased to report that our first quarter net investment income of $0.26 per share covered our dividend of $0.25 per share. Core net investment income was $0.28 per share. Our portfolio at fair value grew to over $714 million , largely due to strong deployment of $93 million during the period. We are seeing a robust pipeline in early 2021 and have already closed $19 million of investments since the end of the first quarter. We also continue to have available capital at favorable terms in which to grow through our SBIC licenses and our issuance of $100 million of institutional bonds at a 4.875% coupon. These bonds are due in March 2026 , and the proceeds were used to retire our bonds maturing in 2022 while providing approximately $50 million of new capital for investment."
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FINANCIAL HIGHLIGHTS
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($ in millions, except data relating to per share amounts and shares outstanding)
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Quarter Ended
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Quarter Ended
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Q1-21
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Q1-20
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Amount
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Per Share
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Amount
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Per Share
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Net investment income
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$5.06
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$0.26
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$6.24
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$0.32
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Core net investment income (1)
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5.38
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0.28
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5.56
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0.29
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Net realized gains on investments
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0.46
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0.02
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1.30
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0.07
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Loss on debt extinguishment
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(0.54)
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(0.03)
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-
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-
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Total realized income (2)
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4.98
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0.25
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7.54
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0.39
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Distributions
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(4.87)
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(0.25)
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(6.62)
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(0.34)
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Net unrealized appreciation
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(depreciation) on investments
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0.12
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0.01
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(51.50)
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(2.65)
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Provision for taxes on net unrealized gains
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on investments in taxable subsidiaries
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(0.17)
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(0.01)
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0.03
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0.00
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Net increase in net assets resulting
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from operations
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$4.94
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0.25
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(43.94)
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(2.26)
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Weighted average shares outstanding
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19,486,003
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19,429,480
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(1)
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Core net investment income, as presented, excludes the impact of capital gains incentive fees and income taxes,
the majority of which are excise taxes. The company believes presenting core net investment income and the
related per share amount is a useful supplemental disclosure for analyzing its financial performance. However,
core net investment income is a non-U.S GAAP measure and should not be considered as a replacement for net
investment income and other earnings measures presented in accordance with U.S GAAP. A reconciliation of net
investment income in accordance with U.S GAAP to core net investment income is presented in the table below the
financial statements.
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(2)
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Total realized income is the sum of net investment income and net realized gains (losses) on investments, including
debt extinguishment; both U.S GAAP measures.
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PORTFOLIO ACTIVITY
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($ in millions, except data relating to per share amounts and number of portfolio companies)
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As of
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As of
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March 31,
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December 31,
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2021
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2020
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Investments at fair value
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$714.5
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$653.4
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Total assets
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$747.8
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$674.9
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Net assets
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$273.4
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$273.4
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Shares outstanding
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19,486,003
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19,486,003
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Net asset value per share
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$14.03
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$14.03
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Quarter Ended
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Quarter Ended
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March 31,
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March 31,
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2021
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2020
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New investments
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$93.4
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$61.5
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Repayments of investments
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(33.6)
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(31.8)
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Net activity
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$59.8
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$29.7
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As of
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As of
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March 31,
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December 31,
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2021
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2020
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Number of portfolio company investments
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70
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66
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Number of debt investments
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55
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51
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Weight average yield of debt and other income producing investments (3)
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Cash
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7.7%
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7.8%
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Payment-in-kind ("PIK')
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0.1%
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0.0%
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Fee amortization
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0.5%
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0.5%
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Total
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8.3%
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8.3%
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Weighted average yield on total investments (4)
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Cash
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7.3%
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7.4%
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Payment-in-kind ("PIK')
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0.1%
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0.0%
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Fee amortization
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0.4%
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0.5%
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Total
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7.8%
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7.9%
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(3)
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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.
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(4)
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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.
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Results of Operations
Investment income for the three months ended March 31, 2021 and 2020 totaled $14.0 million and $15.3 million , respectively, most of which was interest income from portfolio investments.
Operating expenses for the three months ended March 31, 2021 and 2020, totaled $8.9 million and $9.0 million , respectively. For the same respective periods, base management fees totaled $3.0 million and $2.7 million , income incentive fees totaled $0.0 million and $1.3 million , capital gains incentive fees (reversal) totaled $0.1 million and ($0.9) million , fees and expenses related to our borrowings totaled $4.3 million and $4.3 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.5 million and $0.5 million , income tax totaled $0.2 million and $0.2 million and other expenses totaled $0.8 million and $0.9 million , respectively.
Net investment income was $5.1 million and $6.2 million , or $0.26 and $0.32 per common share based on weighted average common shares outstanding for the three months ended March 31, 2021 and 2020 of 19,486,003 and 19,429,480, respectively.
The capital gains incentive fee of $0.1 million for the three months ended March 31, 2021 was accrued for GAAP purposes due to the increase in realized and unrealized gains over the quarter. 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. The income tax expense accrual of $0.2 million for the three months ended March 31, 2020 was accrued based on estimates of undistributed taxable income, which was generated largely from capital gains. Core net investment income, which is a non-U.S GAAP measure that excludes these accruals, for the three months ended March 31, 2021 was $5.4 million , or $0.28 per share; and for the three months ended March 31, 2020 , was $5.6 million , or $0.29 per share.
The Company's investment portfolio had a net change in unrealized appreciation (depreciation) for the three months ended March 31, 2021 and 2020, of $0.1 million and ($51.5) million , respectively. For the three months ended March 31, 2021 and 2020, the Company had realized gains of $0.5 million and $1.3 million , respectively.
Net increase (decrease) in net assets resulting from operations totaled $4.9 million and ($43.9) million , or $0.25 and ($2.26) per common share based on weighted average common shares outstanding for the three months ended March 31, 2021 and 2020 of 19,486,003 and 19,429,480, respectively.
Liquidity and Capital Resources
As of March 31, 2021 and 2020, our amended and restated senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $230.0 and $220.0 million , respectively, on a committed basis. As of March 31, 2021 , our credit facility had an accordion feature which allowed for potential future expansion of the facility size to $280.0 million . As of March 31, 2021 and December 31, 2020 , we had $165.5 million and $174.0 million in outstanding borrowings under the credit facility, respectively.
On January 14, 2021 , we issued $100.0 million in aggregate principal amount of 4.875% fixed-rate notes due 2026 (the "2026 Notes"). The 2026 Notes will mature on March 30, 2026 , and may be redeemed in whole or in part at any time or from time to time at our option on or after December 31, 2025 at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest is payable semi-annually beginning September 30, 2021 . We used the net proceeds from this offering to fully redeem our $48.9 million in aggregate principal amount of 5.75% fixed-rate notes due 2022 and repay a portion of the amount outstanding under the Credit Facility.
For the three months ended March 31, 2021 , our operating activities used cash of $57.1 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 $69.0 million , due to the issuance of our 2026 Notes offset by the repayment of our 2022 Notes and net repayments on our Credit Facility.
For the three months ended March 31, 2020 , our operating activities used cash of $27.9 million , primarily in connection with the purchase and origination of new portfolio investments, which was slightly offset by repayments of our investments, and our financing activities provided cash of $46.8 million , due to borrowings under our Credit Facility.
Distributions
During the three months ended March 31, 2021 and 2020, we declared aggregate distributions of $0.25 per share and $0.34 per share ( $4.9 million and $6.6 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 January 14, 2021 , we received full repayment on the first lien term loan and revolver of BFC Solmetex, LLC for total proceeds of $13.6 million . We also received full repayment on the first lien term loan of Bonded Filter Co. LLC, a subsidiary of BFC Solmetex, LLC, for total proceeds of $1.2 million .
On January 29, 2021 , we invested $11.3 million in the first lien term loan of NuSource Financial, LLC, a provider of technology integration and installation of Automated Teller Machines / Integrated Teller Machines ("ATM" / "ITM"), maintenance services, and security solutions. Additionally, we invested $4.8 million in the structured equity of the company.
On February 1, 2021 , we invested $0.1 million in the equity of Tailwind Core Investor, LLC, an existing portfolio company.
On February 11, 2021 , we invested $7.2 million in the first lien term loan of Time Manufacturing Acquisition, LLC, an existing portfolio company. Additionally, we invested $0.1 million in the equity of the company.
On February 19, 2021 , we invested $13.5 million in the first lien term loan and committed $0.1 million in the unfunded revolver of CEATI International, Inc., a provider of intellectual content, technical trade programs, research groups, and conferences for utility companies. Additionally, we invested $0.3 million in the equity of the company.
On March 1, 2021 , we invested $10.8 million in the first lien term loan and committed $0.1 million in the unfunded revolver of a provider of aerospace products for the U.S. military / government, air medical, and high-end VIP aircraft end markets. Additionally, we invested $0.5 million in the equity of the company.
On March 2, 2021 , we invested $10.0 million in the first lien term loan and committed $0.1 million in the unfunded revolver of TradePending, LLC, a provider of vehicle trade-in and merchandising intelligence solutions for auto dealerships. Additionally, we invested $0.8 million in the equity of the company.
On March 5, 2021 , we invested $11.5 million in the first lien term loan and committed $0.1 million in the unfunded revolver of Anne Lewis Strategies, LLC, a provider of tech-enabled donor targeting and strategic digital fundraising services for non-profit and political organizations. Additionally, we invested $1 million in the equity of the company.
On March 15, 2021 , we invested $10.5 million in the first lien term loan of Onpoint Industrial Services, LLC, a provider of safety, logistics, planning, and project management services to refineries and petrochemical plants. Additionally, we invested $0.5 million in the equity of the company.
On March 18, 2021 , we converted $0.1 million of common equity into preferred equity and invested an additional $0.1 million of preferred equity in Bromford Holdings, L.P., an existing portfolio company. Additionally, on March 29, 2021 we invested $1.0 million in the second lien term loan of the company.
On March 29, 2021 , we received full repayment on the second lien term loan of National Trench Safety, LLC for total proceeds of $10.0 million . In addition, we received $0.9 million in full realization of the investment NTS Investors, LP, resulting in a $0.4 million gain.
On March 31, 2021 , we invested $4.0 million in the first lien term loan of Munch's Supply LLC, an existing portfolio company.
Events/Financial Information Subsequent to March 31, 2021
On April 22, 2021 , we received full repayment on the unsecured term loan of Skopos Financial, LLC for total proceeds of $14.0 million .
On April 26, 2021 , we invested $10.8 million in the first lien term loan and committed $0.1 million in both the unfunded revolver and delayed draw term loan of an HVAC and plumbing designer, installer, and service provider for new/existing DCs, fulfilment sortation facilities, and warehouses.
On April 28, 2021 , we invested $7.5 million in the first lien term loan and committed $2.0 million in the unfunded revolver of Unicat Catalyst, LLC, a global formulator and distributor of heterogeneous, consumable catalyst products primarily serving the refinery, petrochemical, and other end markets. Additionally, we invested $0.8 million in the equity of the company.
Credit Facility
The outstanding balance under the credit facility as of May 6, 2021 was $186.0 million .
SBA-guaranteed Debentures
The total balance of SBA-guaranteed debentures outstanding as of May 6, 2021 was $220.0 million .
SBIC II Subsidiary
On April 13, 2021 , we contributed $15.0 million to the SBIC II subsidiary, bringing total contributed capital to $50.0 million .
Distributions Declared
On April 19, 2021 , our board of directors declared a regular monthly distribution for each of April 2021 , May 2021 and June 2021 as follows:
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Declared
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Ex-Dividend Date
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Record Date
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Payment Date
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Amount per Share
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4/19/2021
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4/29/2021
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4/30/2021
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5/14/2021
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$
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0.0833
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4/19/2021
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5/27/2021
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5/28/2021
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6/15/2021
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$
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0.0833
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4/19/2021
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6/29/2021
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6/30/2021
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7/15/2021
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$
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0.0833
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Conference Call Information
Stellus Capital Investment Corporation will host a conference call to discuss these results on Friday, May 7, 2021 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 800-367-2403 (domestic). Use passcode 9320687. Starting approximately twenty-four hours after the conclusion of the call, a replay will be available through Saturday, May 15, 2021 by dialing (888) 203-1112 and entering passcode 9320687. The replay will also be available on the company's website.
For those wishing to participate via Live Webcast, connect via the Public Company (SCIC) section of our website at www.stelluscapital.com , under the Events tab. A replay of the conference will be available on our website for approximately 90 days.
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STELLUS CAPITAL INVESTMENT CORPORATION
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CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
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March 31,
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2021
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December 31,
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(Unaudited)
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2020
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ASSETS
|
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Non-controlled, non-affiliated investments, at fair value
|
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(amortized cost of $719,546,960 and $658,628,966,
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respectively)
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$
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714,464,472
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$
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653,424,495
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Cash and cash equivalents
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30,449,635
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18,477,602
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Receivable for sales and repayments of investments
|
|
210,442
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|
|
215,929
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Interest receivable
|
|
2,152,217
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|
|
2,189,448
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Other receivables
|
|
25,495
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|
|
25,495
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Deferred offering costs
|
|
—
|
|
|
90,000
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Prepaid expenses
|
|
456,315
|
|
|
487,188
|
|
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Total Assets
|
$
|
747,758,576
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|
$
|
674,910,157
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LIABILITIES
|
|
|
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Notes payable
|
$
|
97,765,674
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|
$
|
48,307,518
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Credit facility payable
|
|
163,342,988
|
|
|
171,728,405
|
|
SBA-guaranteed debentures
|
|
205,285,585
|
|
|
173,167,496
|
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Dividends payable
|
|
1,623,187
|
|
|
—
|
|
Management fees payable
|
|
1,963,861
|
|
|
2,825,322
|
|
Income incentive fees payable
|
|
122,499
|
|
|
681,660
|
|
Capital gains incentive fees payable
|
|
604,302
|
|
|
521,021
|
|
Interest payable
|
|
1,825,427
|
|
|
2,144,085
|
|
Unearned revenue
|
|
475,222
|
|
|
523,424
|
|
Administrative services payable
|
|
389,005
|
|
|
391,491
|
|
Deferred tax liability
|
|
527,394
|
|
|
359,590
|
|
Income tax payable
|
|
92,726
|
|
|
724,765
|
|
Other accrued expenses and liabilities
|
|
311,821
|
|
|
174,731
|
|
|
Total Liabilities
|
$
|
474,329,691
|
|
$
|
401,549,508
|
|
Commitments and contingencies (Note 7)
|
|
|
|
|
|
|
|
Net Assets
|
$
|
273,428,885
|
|
$
|
273,360,649
|
|
NET ASSETS
|
|
|
|
|
|
|
Common stock, par value $0.001 per share (100,000,000 shares
|
|
|
|
|
|
|
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authorized; 19,486,003 issued and outstanding
|
|
|
|
|
|
|
|
for both periods)
|
$
|
19,486
|
|
$
|
19,486
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|
Paid-in capital
|
|
276,026,667
|
|
|
276,026,667
|
|
Accumulated undistributed deficit
|
|
(2,617,268)
|
|
|
(2,685,504)
|
|
|
Net Assets
|
$
|
273,428,885
|
|
$
|
273,360,649
|
|
|
Total Liabilities and Net Assets
|
$
|
747,758,576
|
|
$
|
674,910,157
|
|
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Net Asset Value Per Share
|
$
|
14.03
|
|
$
|
14.03
|
|
STELLUS CAPITAL INVESTMENT CORPORATION
|
|
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CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
|
|
|
|
|
|
|
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|
|
|
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For the
|
|
For the
|
|
|
|
three
|
three
|
|
|
|
months ended
|
months ended
|
|
|
|
March 31,
|
March 31,
|
|
|
|
2021
|
2020
|
|
|
|
|
|
|
|
INVESTMENT INCOME
|
|
|
|
|
|
|
Interest income
|
$
|
13,512,777
|
|
$
|
14,849,588
|
|
Other income
|
|
475,087
|
|
|
411,457
|
|
|
Total Investment Income
|
$
|
13,987,864
|
|
$
|
15,261,045
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
Management fees
|
$
|
2,963,861
|
|
$
|
2,719,054
|
|
Valuation fees
|
|
128,353
|
|
|
109,833
|
|
Administrative services expenses
|
|
453,389
|
|
|
466,935
|
|
Income incentive fees
|
|
—
|
|
|
1,339,637
|
|
Capital gains incentive fees (reversal)
|
|
83,281
|
|
|
(880,913)
|
|
Professional fees
|
|
268,965
|
|
|
386,714
|
|
Directors' fees
|
|
91,500
|
|
|
132,250
|
|
Insurance expense
|
|
117,507
|
|
|
93,071
|
|
Interest expense and other fees
|
|
4,323,478
|
|
|
4,292,204
|
|
Income tax expense
|
|
239,981
|
|
|
196,795
|
|
Other general and administrative expenses
|
|
256,918
|
|
|
166,003
|
|
|
Total Operating Expenses
|
$
|
8,927,233
|
|
$
|
9,021,583
|
|
|
Net Investment Income
|
$
|
5,060,631
|
|
$
|
6,239,462
|
|
|
Net realized gain on non-controlled, non-affiliated
|
|
|
|
|
|
|
|
|
investments
|
$
|
462,228
|
|
$
|
1,296,793
|
|
|
Loss on debt extinguishment
|
$
|
(539,250)
|
|
$
|
—
|
|
|
Net change in unrealized appreciation (depreciation)
|
|
|
|
|
|
|
|
|
on non-controlled, non-affiliated investments
|
$
|
121,983
|
|
$
|
(51,504,946)
|
|
|
(Provision) benefit for taxes on net unrealized gain
|
|
|
|
|
|
|
|
|
on investments
|
$
|
(167,804)
|
|
$
|
28,959
|
|
|
Net Increase (Decrease) in Net Assets
|
|
|
|
|
|
|
|
|
Resulting from Operations
|
$
|
4,937,788
|
|
$
|
(43,939,732)
|
|
|
Net Investment Income Per Share
|
$
|
0.26
|
|
$
|
0.32
|
|
|
Net Increase (Decrease) in Net Assets Resulting
|
|
|
|
|
|
|
|
|
from Operations Per Share
|
$
|
0.25
|
|
$
|
(2.26)
|
|
|
Weighted Average Shares of Common Stock Outstanding
|
|
19,486,003
|
|
|
19,429,480
|
|
|
Distributions Per Share
|
$
|
0.25
|
|
$
|
0.34
|
|
STELLUS CAPITAL INVESTMENT CORPORATION
|
|
|
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
|
|
|
|
|
|
|
|
|
|
For the
|
|
For the
|
|
|
|
three
|
three
|
|
|
|
months ended
|
months ended
|
|
|
|
March 31,
|
March 31,
|
|
|
|
2021
|
2020
|
|
Increase (Decrease) in Net Assets Resulting from Operations
|
|
|
|
|
|
|
Net investment income
|
$
|
5,060,631
|
|
$
|
6,239,462
|
|
Net realized gain on non-controlled,
|
|
|
|
|
|
|
|
non-affiliated investments
|
|
462,228
|
|
|
1,296,793
|
|
Loss on debt extinguishment
|
|
(539,250)
|
|
|
—
|
|
Net change in unrealized appreciation (depreciation) on
|
|
|
|
|
|
|
|
non-controlled, non-affiliated investments
|
|
121,983
|
|
|
(51,504,946)
|
|
(Provision) benefit for taxes on unrealized appreciation
|
|
|
|
|
|
|
|
on investments
|
|
(167,804)
|
|
|
28,959
|
|
Net Increase (Decrease) in Net Assets Resulting
|
|
|
|
|
|
|
|
from Operations
|
$
|
4,937,788
|
|
$
|
(43,939,732)
|
|
Stockholder Distributions From:
|
|
|
|
|
|
|
Net investment income
|
$
|
(4,869,552)
|
|
$
|
(6,619,297)
|
|
Total Distributions
|
$
|
(4,869,552)
|
|
$
|
(6,619,297)
|
|
Capital Share Transactions
|
|
|
|
|
|
|
Issuance of common stock
|
$
|
—
|
|
$
|
4,930,467
|
|
Sales load
|
|
—
|
|
|
(5,681)
|
|
Offering costs
|
|
—
|
|
|
(18,169)
|
|
Partial share transactions
|
|
—
|
|
|
(96)
|
|
Net Increase in Net Assets Resulting From
|
|
|
|
|
|
|
Capital Share Transactions
|
$
|
—
|
|
$
|
4,906,521
|
|
Total Increase (Decrease) in Net Assets
|
$
|
68,236
|
|
$
|
(45,652,508)
|
|
Net Assets at Beginning of Period
|
$
|
273,360,649
|
|
$
|
270,571,173
|
|
Net Assets at End of Period
|
$
|
273,428,885
|
|
$
|
224,918,665
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STELLUS CAPITAL INVESTMENT CORPORATION
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
|
|
|
|
|
|
|
|
|
For the
|
|
For the
|
|
|
three
|
three
|
|
|
months ended
|
months ended
|
|
|
March 31,
|
March 31,
|
|
|
2021
|
2020
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations
|
$
|
4,937,788
|
|
$
|
(43,939,732)
|
|
Adjustments to reconcile net increase (decrease) in net assets
|
|
|
|
|
|
|
from operations to net cash used in operating activities:
|
|
|
|
|
|
|
Purchases of investments
|
|
(93,290,837)
|
|
|
(61,533,313)
|
|
Proceeds from sales and repayments of investments
|
|
33,473,269
|
|
|
31,763,595
|
|
Net change in unrealized (appreciation) depreciation on investments
|
|
(121,983)
|
|
|
51,504,946
|
|
Increase in investments due to PIK
|
|
(118,329)
|
|
|
(537,284)
|
|
Amortization of premium and accretion of discount, net
|
|
(521,051)
|
|
|
(538,019)
|
|
Deferred tax provision (benefit)
|
|
167,804
|
|
|
(28,959)
|
|
Amortization of loan structure fees
|
|
114,583
|
|
|
149,978
|
|
Amortization of deferred financing costs
|
|
122,460
|
|
|
82,874
|
|
Amortization of loan fees on SBA-guaranteed debentures
|
|
233,814
|
|
|
171,275
|
|
Net realized gain on investments
|
|
(455,560)
|
|
|
(1,296,793)
|
|
Loss on debt extinguishment
|
|
539,250
|
|
|
—
|
|
Changes in other assets and liabilities
|
|
|
|
|
|
|
(Decrease) increase in interest receivable
|
|
37,231
|
|
|
(1,058,214)
|
|
Decrease in prepaid expenses
|
|
30,873
|
|
|
43,923
|
|
(Decrease) increase in management fees payable
|
|
(861,461)
|
|
|
23,274
|
|
Decrease in incentive fees payable
|
|
(559,161)
|
|
|
(126,396)
|
|
Increase (decrease) in capital gains incentive fees payable
|
|
83,281
|
|
|
(880,913)
|
|
(Decrease) increase in administrative services payable
|
|
(2,486)
|
|
|
18,949
|
|
Decrease in interest payable
|
|
(318,658)
|
|
|
(1,405,298)
|
|
(Decrease) increase in unearned revenue
|
|
(48,202)
|
|
|
154,391
|
|
Decrease in income tax payable
|
|
(632,039)
|
|
|
(747,600)
|
|
Increase in other accrued expenses and liabilities
|
|
137,090
|
|
|
295,218
|
|
Net Cash Used in Operating Activities
|
$
|
(57,052,324)
|
|
$
|
(27,884,098)
|
|
Cash flows from Financing Activities
|
|
|
|
|
|
|
Proceeds from the issuance of common stock
|
$
|
—
|
|
$
|
4,794,995
|
|
Sales load for commons stock issued
|
|
—
|
|
|
(5,681)
|
|
Offering costs paid for common stock issued
|
|
—
|
|
|
(18,169)
|
|
Stockholder distributions paid
|
|
(3,246,365)
|
|
|
(6,445,020)
|
|
Repayment of Notes Payable
|
|
(48,875,000)
|
|
|
—
|
|
Proceeds from issuance of Notes
|
|
100,000,000
|
|
|
—
|
|
Financing costs from bond issuance
|
|
(2,238,553)
|
|
|
—
|
|
Proceeds from SBA Debentures
|
|
33,500,000
|
|
|
—
|
|
Financing costs paid on SBA Debentures
|
|
(1,615,725)
|
|
|
—
|
|
Borrowings under Credit Facility
|
|
113,300,000
|
|
|
74,450,000
|
|
Repayments of Credit Facility
|
|
(121,800,000)
|
|
|
(26,000,000)
|
|
Partial Share Redemption
|
|
—
|
|
|
(96)
|
|
Net Cash Provided by Financing Activities
|
$
|
69,024,357
|
|
$
|
46,776,029
|
|
Net Increase in Cash and Cash Equivalents
|
$
|
11,972,033
|
|
$
|
18,891,931
|
|
Cash and cash equivalents balance at beginning of period
|
|
18,477,602
|
|
|
16,133,315
|
|
Cash and Cash Equivalents Balance at End of Period
|
$
|
30,449,635
|
|
$
|
35,025,246
|
|
Supplemental and Non-Cash Activities
|
|
|
|
|
|
|
Cash paid for interest expense
|
$
|
4,166,438
|
|
$
|
5,291,684
|
|
Excise tax paid
|
|
870,000
|
|
|
940,000
|
|
Shares issued pursuant to Dividend Reinvestment Plan
|
|
—
|
|
|
135,472
|
|
Increase in distribution payable
|
|
1,623,187
|
|
|
38,805
|
|
Decrease in deferred offering costs for Notes Payable offering
|
|
(90,000)
|
|
|
—
|
|
Gain on conversion of equity investment
|
|
6,668
|
|
|
—
|
|
Reconciliation of Core Net Investment Income (1)
|
|
(Unaudited)
|
|
|
|
|
Quarter
|
|
Quarter
|
|
|
ended
|
|
ended
|
|
|
March 31, 2021
|
|
March 31, 2020
|
|
Net investment income
|
$5,060,631
|
|
$6,239,462
|
|
Capital gains incentive fee
|
$83,281
|
|
$(880,913)
|
|
Income tax expense
|
$239,981
|
|
$196,795
|
|
Core net investment income
|
$5,383,893
|
|
$5,555,344
|
|
|
|
|
|
|
Per share amounts:
|
|
|
|
|
Net investment income per share
|
$0.26
|
|
$0.32
|
|
Core net investment income per share
|
$0.28
|
|
$0.29
|
|
|
|
|
|
|
|
|
Reconciliation of Realized Net Investment Income (2)
|
|
(Unaudited)
|
|
|
|
|
Quarter
|
|
Quarter
|
|
|
ended
|
|
ended
|
|
|
March 31, 2021
|
|
March 31, 2020
|
|
Net investment income
|
$5,060,631
|
|
$6,239,462
|
|
Net Realized Gain
|
$462,228
|
|
$1,296,793
|
|
Loss on debt extinguishment
|
$(539,250)
|
|
$-
|
|
Total Realized Net Investment Income
|
$4,983,609
|
|
$7,536,255
|
|
|
|
|
|
|
Per share amounts:
|
|
|
|
|
Net investment income per share
|
$0.26
|
|
$0.32
|
|
Realized net investment income per share
|
$0.25
|
|
$0.39
|
|
|
|
|
|
Contacts
Stellus Capital Investment Corporation
W. Todd Huskinson , (713) 292-5414
Chief Financial Officer
thuskinson@stelluscapital.com
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SOURCE Stellus Capital Investment Corporation