Announces Second Quarter 2024 Earnings Release
and Conference Call Schedule
HOUSTON, July 16,
2024 /PRNewswire/ -- Main Street Capital Corporation
(NYSE: MAIN) ("Main Street" or the "Company") is pleased to
announce its preliminary operating results for the second quarter
of 2024 and its second quarter 2024 earnings release and conference
call schedule.
In commenting on the Company's operating results for the second
quarter of 2024, Dwayne L. Hyzak,
Main Street's Chief Executive Officer, stated, "We are pleased with
our performance in the second quarter, which resulted in another
quarter of strong operating results, including a new record for net
asset value per share for the eighth consecutive quarter,
distributable net investment income per share that continued to
exceed the dividends paid to our shareholders and an estimated
return on equity of over 15% for the quarter. We believe that these
continued strong results demonstrate the 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. We are also pleased that we generated
growth in both our lower middle market and private loan investment
portfolios and ended the quarter with attractive investment
pipelines in both investment strategies, which we expect will be
beneficial in the future."
Mr. Hyzak continued, "The total dividends paid to our
shareholders in the second quarter of 2024 increased by 13%
compared to the second quarter of 2023, continuing our trend of
increasing the dividends paid to our shareholders over the past few
years. Our positive performance in the second quarter allowed us to
continue to generate distributable net investment income per share
that exceeded the total dividends paid to our shareholders, with
our estimated distributable net investment income for the second
quarter of 2024 exceeding the monthly dividends paid to our
shareholders by over 48.5% and the total dividends paid to our
shareholders by over 4.5%. Based upon the continued strength of our
performance in the second quarter, we expect another meaningful
supplemental dividend to be paid in the third quarter of 2024. This
would represent our twelfth consecutive quarterly supplemental
dividend, to go with the eight increases to our regular
monthly dividends since the fourth quarter of 2021, allowing us to
deliver significant value to our shareholders, while continuing to
maintain a conservative dividend policy and retain a portion of our
income for the future benefit of our stakeholders."
Preliminary Estimates of Second Quarter 2024 Results
Main Street's preliminary estimate of second quarter 2024 net
investment income ("NII") is $1.00 to
$1.02 per share and distributable net
investment income ("DNII") is $1.06
to $1.08 per share.(1)
Main Street's preliminary estimate of net asset value ("NAV")
per share as of June 30, 2024 is $29.77 to $29.83,
representing an increase of $0.23 to
$0.29 per share, or 0.8% to 1.0%,
from the NAV per share of $29.54 as
of March 31, 2024, with this increase
after the impact of the supplemental dividend paid in June 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
gain on portfolio investments, including an increase in the fair
value of the wholly-owned asset manager, and the accretive impact
of equity issuances during the 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 15% to 17% for the second quarter of
2024.(2)
Main Street preliminarily estimates that non-accrual investments
comprised 1.2% of the total investment portfolio at fair value and
3.6% at cost as of June 30, 2024.
Investment Portfolio Activity
The Company's second quarter 2024 operating activities include
the following investment activity in the lower middle market
("LMM"), private loan and middle market investment strategies:
- $154.5 million in total LMM
portfolio investments, which after aggregate repayments of debt
principal and return of invested equity capital from several LMM
portfolio investments and a decrease in cost basis due to a
realized loss on a LMM equity investment resulted in a net increase
of $69.0 million in the total cost
basis of the LMM investment portfolio;
- $323.8 million in total private
loan investments, which after aggregate repayments of debt
principal from several private loan portfolio investments resulted
in a net increase of $224.9 million
in the total cost basis of the private loan investment portfolio;
and
- a net decrease of $66.1 million
in the total cost basis of the middle market investment
portfolio.
Second Quarter 2024 Earnings Release and Conference Call
Schedule
Main Street's second quarter 2024 results will be released on
Thursday, August 8, 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, August 9, 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 August 16, 2024 by dialing 201-612-7415 and using the
access code 13747903#.
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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 second
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 second 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 June 30, 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 June 30, 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 second quarter 2024 results when such results are
disclosed by Main Street in its Quarterly Report on Form 10-Q for
the quarter ended June 30, 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 second 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 August 9,
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