Announces Third Quarter 2023 Earnings Release
and Conference Call Schedule
HOUSTON, Oct. 17,
2023 /PRNewswire/ -- Main Street Capital Corporation
(NYSE: MAIN) ("Main Street" or the "Company") is pleased to
announce its preliminary operating results for the third quarter of
2023 and its third quarter 2023 earnings release and conference
call schedule.
In commenting on the Company's operating results for the third
quarter of 2023, Dwayne L. Hyzak,
Main Street's Chief Executive Officer, stated, "We are pleased with
our performance in the third quarter, which resulted in continued
strong recurring operating results, a new record for net asset
value per share for the fifth consecutive quarter and a return on
equity of over 17%. These third quarter results continued our
positive performance over the last few quarters and resulted in a
return on equity of over 17% on a trailing twelve-month basis,
highlighting the consistency of our positive performance. 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 underlying strength and quality
of our portfolio companies."
Mr. Hyzak continued, "Our distributable net investment income in
the third quarter exceeded the monthly dividends paid to our
shareholders by over 45% and the total dividends paid to our
shareholders by over 5%. Based upon the continued strength of our
performance in the third quarter, we expect another meaningful
supplemental dividend to be paid in the fourth quarter of 2023.
This would represent our ninth consecutive quarterly supplemental
dividend, to go with the six 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 Third Quarter 2023 Results
Main Street's preliminary estimates of third quarter 2023 net
investment income ("NII") is $0.98 to
$1.00 per share and distributable net
investment income ("DNII") is $1.03
to $1.05 per share.(1)
Main Street's preliminary estimate of net asset value ("NAV")
per share as of September 30, 2023 is $28.30 to $28.36,
representing an increase of $0.61 to
$0.67 per share, or 2.2% to 2.4%,
from the NAV per share of $27.69 as
of June 30, 2023, with this increase
after the impact of the supplemental dividend paid in September 2023 of $0.275 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
on our portfolio investments, including an increase in the fair
value of our wholly-owned asset manager, the accretive impact of
equity issuances during the quarter and the estimated NII, which
exceeded the regular monthly dividends of $0.69 per share and supplemental dividend of
$0.275 per share paid in the third
quarter, partially offset by the tax provision 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 for the third quarter of 2023 of
17% to 18%.(2)
Investment Portfolio Activity
The Company's third quarter 2023 operating activities include
the following investment activity in our lower middle market
("LMM"), private loan and middle market investment strategies:
- $19.6 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 decrease of $5.0 million in the cost basis of our LMM
investment portfolio;
- $134.6 million in total private
loan investments, which after aggregate repayments from and sale of
several private loan portfolio investments resulted in a net
increase of $53.7 million in the cost
basis of our private loan investment portfolio; and
- a net decrease of $10.9 million
in the cost basis of our middle market investment portfolio.
Third Quarter 2023 Earnings Release and Conference Call
Scheduled
Main Street's third quarter 2023 results will be released on
Thursday, November 2, 2023, 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, November 3, 2023, at 10:00 a.m. Eastern time. Investors may
participate either by phone or audio webcast.(3)
By
Phone:
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Dial 412-902-0030 at
least 10 minutes before the call. A replay will be available
through November 10, 2023 by dialing 201-612-7415 and using
the access code 13741922#.
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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 for approximately 90
days.
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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
companies generally have annual revenues between $10 million and $150
million. Main Street's middle market debt investments are
made in businesses that 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 third
quarter 2023 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 third quarter 2023 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 September 30, 2023 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 September 30, 2023 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 third quarter 2023 results when such results are
disclosed by Main Street in its Quarterly Report on Form 10-Q for
the quarter ended September 30, 2023. 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
(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 third quarter of 2023, an estimated $0.05
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 our website or disclosed on the November 3, 2023
conference call, including the webcast and the archived versions,
is incorporated by reference in this press release or any of our
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