Press-Releases

Stellus Capital Investment Corporation Reports Results for its second fiscal quarter ended June 30, 2022


HOUSTON, Aug. 3, 2022 /PRNewswire/ — Stellus Capital Investment Corporation (NYSE: SCM) (“Stellus” or “the Company”) today announced financial results for its second fiscal quarter ended June 30, 2022.



Robert T. Ladd, Chief Executive Officer of Stellus, stated, “I am pleased to report positive results for the second quarter, in which we more than covered our regular dividend with GAAP and Core net investment income, grew our portfolio to $852 million at fair value, upsized our bank credit facility to $265 million and maintained asset quality. We are benefitting from the rising interest rate environment as our loan portfolio’s yield has now risen 80 basis points from the end of the first quarter. In July, in addition to our regular dividend of $0.28 per quarter in the aggregate, our Board of Directors declared an additional aggregate dividend of $0.06 for the third quarter. These dividends total $0.34 per share in the aggregate, payable in monthly increments, for the third quarter.”

FINANCIAL HIGHLIGHTS

($ in millions, except data relating to per share amounts and shares outstanding)










Quarter Ended


Six Months Ended



June 30, 2022


June 30, 2022



Amount

Per Share


Amount

Per Share

Net investment income


$6.17

$0.32


$11.69

$0.60

Core net investment income (1)


5.62

0.29


11.37

0.58

Net realized gains on investments


(0.35)

(0.02)


3.11

0.16

Net realized loss on foreign currency



(0.01)

Total realized income(2)


5.82

0.30


14.79

0.76

Distributions


(6.64)

(0.34)


(12.11)

(0.62)

Net unrealized depreciation on investments


(4.29)

(0.22)


(8.01)

(0.41)

Net unrealized depreciation on foreign currency translation


(0.04)


(0.04)

Provision for taxes on unrealized appreciation on investments in taxable subsidiaries


(0.16)

(0.01)


(0.18)

(0.01)

Net increase in net assets resulting from operations


$1.34

0.07


$6.56

0.34

Weighted average shares outstanding



19,543,117



19,530,509



(1)

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.                         

(2)

Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and loss on debt extinguishment; all U.S. GAAP measures.

 

PORTFOLIO ACTIVITY

($ in millions, except data relating to per share amounts and number of portfolio companies)










As of


As of




June 30,


December 31,




2022


2021

Investments at fair value



$852.00


$772.9

Total assets



$882.90


$821.3

Net assets



$279.90


$285.1

Shares outstanding



19,545,935


19,517,595

Net asset value per share



$14.32


$14.61









Quarter Ended


Six Months Ended




June 30,


June 30,




2022


2022

New investments



$67.6


$142.1

Repayments of investments



(48.2)


(58.2)

Net activity



$19.4


$83.9










As of


As of




June 30,


December 31,




2022


2021

Number of portfolio company investments



83


73

Number of debt investments



70


58







Weight average yield of debt and other income producing investments (3)






Cash



7.9 %


7.4 %

Payment-in-kind (“PIK”)



0.2 %


0.2 %

Fee amortization



0.4 %


0.4 %

Total



8.5 %


8.0 %







Weighted average yield on total investments (4)






Cash



7.4 %


6.9 %

Payment-in-kind (“PIK”)



0.2 %


0.2 %

Fee amortization



0.4 %


0.4 %

Total



8.0 %


7.5 %



(3)

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.

(4)

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.

 

Results of Operations

Investment income for the three months ended June 30, 2022 and 2021 totaled $16.1 million and $15.1 million, respectively, most of which was interest income from portfolio investments.

Operating expenses for the three months ended June 30, 2022 and 2021, totaled $9.9 million and $9.6 million, respectively. For the same respective periods, base management fees totaled $3.7 million and $3.3 million, income incentive fees totaled $0.0 and $0.1 million, capital gains incentive fees (reversal) totaled ($1.0) million and $0.0 million, fees and expenses related to our borrowings totaled $5.5 million and $4.7 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.5 million for both periods, income tax totaled $0.4 million and $0.3 million and other expenses totaled $0.8 million and $0.7 million.

Net investment income was $6.2 million and $5.5 million, or $0.32 and $0.28 per common share based on weighted average common shares outstanding for the three months ended June 30, 2022 and 2021 of 19,543,117 and 19,486,003, respectively.

The capital gains incentive fee had a reversal of ($1.0) million for the three months ended June 30, 2022 due to the decrease in net 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 $0.4 million for the three months ended June 30, 2022 was accrued based on estimates of undistributed taxable income, which was generated largely from net income. Core net investment income, which is a non-U.S. GAAP measure that excludes these accruals, for the three months ended June 30, 2022 was $5.6 million, or $0.29 per share; and for the three months ended June 30, 2021 was $5.8 million, or $0.30 per share.

The Company’s investment portfolio had a net change in unrealized (depreciation) appreciation for the three months ended June 30, 2022 and 2021, of ($4.3) million and $1.7 million, respectively. For the three months ended June 30, 2022 and 2021, the Company had realized losses of ($0.4) million and ($1.8) million, respectively.

Net increase in net assets resulting from operations totaled $1.3 million and $5.6 million, or $0.07 and $0.29 per common share, based on weighted average common shares outstanding for the three months ended June 30, 2022 and 2021 of 19,543,117 and 19,486,003, respectively.

Liquidity and Capital Resources

As of June 30, 2022, 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 $265.0 million on a committed basis. As of June 30, 2022 and 2021, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size to $280.0 million. As of June 30, 2022 and December 31, 2021, we had $203.6 million and $177.3 million in outstanding borrowings under the Credit Facility, respectively.

Distributions

During the three months ended June 30, 2022 and 2021, we declared aggregate distributions of $0.34 per share and $0.25 per share ($6.6 million and $4.9 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 April 1, 2022, we invested $0.1 million in the first lien term loan and committed $0.1 million in the revolver of International Designs Group LLC, a regional distributor, seller, and custom fabricator of high-end ceramic and stone tile products and accessories. Additionally, we invested $0.1 million in the equity of the company.

On April 1, 2022, we invested $0.1 million in the first lien term loan and committed $0.1 million in the revolver of Tilley Chemical Company, Inc., a distributor of specialty chemicals, oils, and lubricants into the food & beverage, lubricants, flavor and fragrances, personal care, and other chemicals end-markets.

On April 4, 2022, we invested $11.3 million in the first lien term loan and committed $0.1 million in the revolver of Microbe Formulas LLC, a provider of dietary supplements and other natural solutions for detox and gut health.

On April 7, 2022, we received $1.3 million in full realization on the equity of Energy Labs Holding Corp., resulting in a $0.7 million realized gain.

On April 15, 2022, we invested $6.6 million in the first lien term loan of Anne Lewis Strategies, LLC, an existing portfolio company.

On April 15, 2022, we invested $0.1 million in the equity of Pure TopCo, LLC, an existing portfolio company.

On April 25, 2022, we received full repayment on the first lien term loan of SQAD, LLC for total proceeds of $14.1 million. We also received $2.4 million in full realization on the equity of the company, resulting in a $2.1 million realized gain.

On April 29, 2022, we invested $10.0 million in the first lien term loan and committed $0.1 million in the revolver and $0.1 million in the delayed draw term loan of Florachem Holdings, LLC, a distiller and supplier of natural citrus, pine, and specialty inputs. Additionally, we invested $0.4 million in the equity of the company.

On May 17, 2022, we invested $0.1 million in the first lien term loan and committed $0.1 million in the revolver of AIP ATCO Buyer, LLC, a provider of quality assurance services for automotive OEMs and suppliers.

On May 20, 2022, we invested $0.1 million in the equity of TradePending Holdings, LLC, an existing portfolio company.

On May 24, 2022, we invested $0.1 million in the first lien term loan and committed €0.1 million euro in the revolver and €0.1 million euro in the delayed draw term loan of Monitorus Holding, LLC, a provider of media monitoring and evaluation services.

On June 1, 2022, we invested $0.1 million in the equity of PCP MT Aggregator Holdings, L.P., an existing portfolio company.

On June 6, 2022, we invested $13.8 million in the first lien term loan and committed $0.1 million in the revolver of Lightning Intermediate II, LLC, a vitamins, minerals, and supplements brand. Additionally, we invested $0.4 million in the equity of the company.

On June 15, 2022, we invested $0.3 million in the equity of ADS Group Topco, LLC, an existing portfolio company.

On June 15, 2022, we invested $0.9 million in the first lien term loan of SIB Holdings, LLC, an existing portfolio company.

On June 24, 2022, we received full repayment on the first lien term loans of Grupo HIMA San Pablo, Inc. for total proceeds of $0.7 million, resulting in a $3.9 million realized loss.

On June 27, 2022, we invested $0.3 million in the equity of HV GS Acquisition, LP, an existing portfolio company.

On June 30, 2022, we invested $0.1 million in the equity of HV Acquisition VI, LLC, an existing portfolio company.

On June 30, 2022, we invested $0.1 million in the equity of Tower Arch Infolinks Media, LP, an existing portfolio company.

Events Subsequent to June 30, 2022

On July 1, 2022, we invested $0.1 million in the first lien term loan and committed $0.1 million in the revolver of Heat Makes Sense Shared Services, LLC, a branded haircare platform. Additionally, we invested $0.1 million in the equity of the company.

On July 5, 2022, we invested $13.9 million in the first lien term loan Baker Manufacturing Company, LLC, a manufacturer of water well equipment, specialized filtration pumps, and custom castings. Additionally, we invested $0.7 million in the equity of the company.

On July 15, 2022, we received full repayment on the first lien term loan and revolver of International Designs Group, LLC for total proceeds of $0.1 million.

On July 15, 2022, we received full repayment on the first lien term loan of ASC Communications, LLC for total proceeds of $8.2 million. We also received $1.8 million in full realization on the equity of the company, resulting in a $1.8 million realized gain.

On July 15, 2022, we invested $1.0 million in the first lien term loan of Exacta Land Surveyors, LLC, an existing portfolio company. Additionally, we invested $0.1 million in the equity of the company.

On July 20, 2022, we invested $2.2 million in the first lien term loan of SIB Holdings, LLC, an existing portfolio company.

On July 28, 2022, we invested $0.1 million in the equity of USASF Blocker IV LLC, an existing portfolio company.

On July 29, 2022, we invested $13.0 million in the first lien term loan and committed $0.1 million in the revolver and $0.1 million in the delayed draw term loan of a provider of product testing and consumer insights. Additionally, we invested $0.7 million in the equity of the company.

Credit Facility

The outstanding balance under the credit facility as of August 3, 2022 was $198.2 million.

SBA-guaranteed Debentures

On July 1, 2022, the Company contributed $5.0 million in capital to its SBIC II subsidiary. To date, the Company has contributed $78.0 million of its $87.5 million regulatory capital commitment. The total balance of SBA-guaranteed debentures outstanding as of August 3, 2022 was $300.0 million.

Distributions Declared

On July 13, 2022, our board of directors declared a regular monthly distribution for each of July, August, and September 2022 as follows:













Ex-Dividend


Record


Payment


Amount per

Declared


Date


Date


Date


Share

7/13/2022


7/28/2022


7/29/2022


8/15/2022


$

0.0933

7/13/2022


8/30/2022


8/31/2022


9/15/2022


$

0.0933

7/13/2022


9/29/2022


9/30/2022


10/14/2022


$

0.0933

 

On July 13, 2022, our board of directors declared an additional monthly distribution for each of July, August, and September 2022 as follows:













Ex-Dividend


Record


Payment


Amount per

Declared


Date


Date


Date


Share

7/13/2022


7/28/2022


7/29/2022


8/15/2022


$

0.02

7/13/2022


8/30/2022


8/31/2022


9/15/2022


$

0.02

7/13/2022


9/29/2022


9/30/2022


10/14/2022


$

0.02

 

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Thursday, August 4, 2022 at 11:00 AM, Central Daylight 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 (888) 394-8218.  Use passcode 9390038.  Starting approximately two hours after the conclusion of the call, a replay will be available through Friday, August 12, 2022 by dialing (888) 203-1112 and entering passcode 9390038. 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.

About Stellus Capital Investment Corporation

The Company is an externally-managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien (including unitranche) loans, second lien loans and unsecured debt financing, with corresponding equity co-investments. The Company’s investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the “Public (SCIC)” tab.

Forward-Looking Statements

Statements included herein may contain “forward-looking statements” which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release, including statements about COVID-19 and its impacts, may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts

Stellus Capital Investment Corporation

W. Todd Huskinson, Chief Financial Officer

(713) 292-5414

thuskinson@stelluscapital.com

 

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES












June 30, 







2022


December 31, 




(unaudited)


2021


ASSETS








Non-controlled, non-affiliated investments, at fair value (amortized cost of $873,575,942 and $785,005,957, respectively)


$

852,000,318


$

772,873,326


Cash and cash equivalents



26,462,108



44,174,856


Receivable for sales and repayments of investments



770,998



536,105


Interest receivable



2,973,110



2,944,599


Other receivables



177,533



54,752


Deferred tax asset





151,278


Related party receivable



187,132




Deferred offering costs



89,158



14,888


Prepaid expenses



286,039



512,214


Total Assets


$

882,946,396


$

821,262,018


LIABILITIES








Notes payable


$

98,324,497


$

98,102,973


Credit Facility payable



201,845,293



175,451,116


SBA-guaranteed debentures



287,743,263



244,615,903


Dividends payable



2,214,557



1,171,059


Management fees payable



3,705,053



3,454,225


Income incentive fees payable



289,188



1,749,130


Capital gains incentive fees payable



2,362,360



3,388,151


Interest payable



3,953,225



3,693,662


Unearned revenue



510,842



529,726


Administrative services payable



399,741



386,368


Income tax payable



725,295



3,269,514


Deferred tax liability



30,535




Other accrued expenses and liabilities



976,429



338,958


Total Liabilities


$

603,080,278


$

536,150,785


Commitments and contingencies (Note 7)








Net Assets


$

279,866,118


$

285,111,233


NET ASSETS








Common stock, par value $0.001 per share (100,000,000 shares  authorized; 19,545,935 and 19,517,595 issued and outstanding, respectively)


$

19,546


$

19,518


Paid-in capital



274,864,296



274,559,121


Accumulated undistributed surplus



4,982,276



10,532,594


Net Assets


$

279,866,118


$

285,111,233


Total Liabilities and Net Assets


$

882,946,396


$

821,262,018


Net Asset Value Per Share


$

14.32


$

14.61


 
















STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)





For the three months ended


For the three months ended


For the six months ended


For the six months ended





June 30, 


June 30, 


June 30, 


June 30, 





2022


2021


2022


2021


INVESTMENT INCOME















Interest income


$

15,658,018


$

14,846,398


$

30,774,969


$

28,359,175



Other income



451,027



257,976



828,480



733,063



Total Investment Income


$

16,109,045


$

15,104,374


$

31,603,449


$

29,092,238



OPERATING EXPENSES















Management fees


$

3,705,053


$

3,278,479


$

7,197,766


$

6,242,340



Valuation fees



30,029



20,082



169,617



148,435



Administrative services expenses



466,903



463,102



941,221



916,491



Income incentive fees





55,899





55,899



Capital gains incentive (reversal) fees



(983,575)



14,387



(1,025,792)



97,668



Professional fees



217,404



236,212



529,466



505,177



Directors’ fees



74,500



74,500



171,000



166,000



Insurance expense



125,890



118,813



250,397



236,320



Interest expense and other fees



5,524,378



4,691,968



10,415,975



9,015,446



Income tax expense



426,236



286,276



705,653



526,257



Other general and administrative expenses



347,656



329,641



559,392



586,559



Total Operating Expenses


$

9,934,474


$

9,569,359


$

19,914,695


$

18,496,592



Net Investment Income


$

6,174,571


$

5,535,015


$

11,688,754


$

10,595,646



Net realized (loss) gain on non-controlled, non-affiliated investments


$

(352,723)


$

(1,781,665)


$

3,105,367


$

(1,319,437)



Net realized loss on foreign currency translation







(7,350)





Loss on debt extinguishment









(539,250)



Net change in unrealized (depreciation) appreciation on non-controlled, non-affiliated investments



(4,289,591)



1,665,877



(8,011,193)



1,787,860



Net change in unrealized depreciation on foreign currency translations



(35,754)





(35,754)





(Provision) benefit for taxes on net unrealized (appreciation) depreciation on investments



(160,656)



187,721



(181,813)



19,917



Net Increase in Net Assets Resulting from Operations



1,335,847



5,606,948



6,558,011



10,544,736



Net Investment Income Per Share—basic and diluted


$

0.32


$

0.28


$

0.60


$

0.54



Net Increase in Net Assets Resulting from Operations Per Share—basic and diluted


$

0.07


$

0.29


$

0.34


$

0.54



Weighted Average Shares of Common Stock Outstanding—basic and diluted



19,543,117



19,486,003



19,530,509



19,486,003



Distributions Per Share—basic and diluted


$

0.34


$

0.25


$

0.62


$

0.50










































 
















STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)




Common Stock





Accumulated 






Number 


Par 


Paid-in 


undistributed 






of shares


value


capital


surplus (deficit)


Net Assets

Balances at December 31, 2020


19,486,003


$

19,486


$

276,026,667


$

(2,685,504)


$

273,360,649

Net investment income








5,060,631



5,060,631

Net realized gain on non-controlled, non-affiliated investments








462,228



462,228

Loss on debt extinguishment











(539,250)



(539,250)

Net change in unrealized appreciation on non-controlled, non-affiliated investments








121,983



121,983

Provision for taxes on unrealized appreciation on investments








(167,804)



(167,804)

Distributions from net investment income








(4,869,552)



(4,869,552)

Balances at March 31, 2021


19,486,003


$

19,486


$

276,026,667


$

(2,617,268)


$

273,428,885

Net investment income








5,535,015



5,535,015

Net realized loss on non-controlled, non-affiliated investments








(1,781,665)



(1,781,665)

Net change in unrealized appreciation on non-controlled, non-affiliated investments








1,665,877



1,665,877

Benefit for taxes on unrealized depreciation on investments








187,721



187,721

Distributions from net investment income








(4,869,552)



(4,869,552)

Balances at June 30, 2021


19,486,003


$

19,486


$

276,026,667


$

(1,879,872)


$

274,166,281
















Balances at December 31, 2021


19,517,595


$

19,518


$

274,559,121


$

10,532,594


$

285,111,233

Net investment income








5,514,183



5,514,183

Net realized gain on non-controlled, non-affiliated investments








3,458,090



3,458,090

Net realized loss on foreign currency translation








(7,350)



(7,350)

Net change in unrealized depreciation on non-controlled, non-affiliated investments








(3,721,602)



(3,721,602)

Provision for taxes on unrealized appreciation on investments








(21,157)



(21,157)

Distributions from net investment income








(5,464,666)



(5,464,666)

Issuance of common stock, net of offering costs


14,924



15



167,655





167,670

Balances at March 31, 2022


19,532,519


$

19,533


$

274,726,776


$

10,290,092


$

285,036,401

Net investment income








6,174,571



6,174,571

Net realized loss on non-controlled, non-affiliated investments








(352,723)



(352,723)

Net change in unrealized depreciation on non-controlled, non-affiliated investments








(4,289,591)



(4,289,591)

Net change in unrealized depreciation on foreign currency translations








(35,754)



(35,754)

Provision for taxes on unrealized appreciation on investments








(160,656)



(160,656)

Distributions from net investment income








(6,643,663)



(6,643,663)

Issuance of common stock, net of offering costs


13,416



13



137,520





137,533

Balances at June 30, 2022


19,545,935


$

19,546


$

274,864,296


$

4,982,276


$

279,866,118

 

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)











For the 


For the 




six months ended


six months ended




June 30, 


June 30, 




2022


2021


Cash flows from operating activities








Net increase in net assets resulting from operations


$

6,558,011


$

10,544,736


Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities:








Purchases of investments



(142,053,995)



(182,822,853)


Proceeds from sales and repayments of investments



58,182,238



55,963,858


Net change in unrealized depreciation (appreciation) on investments



8,011,193



(1,787,860)


Net change in unrealized depreciation on foreign currency translations



35,754




Increase in investments due to PIK



(653,534)



(360,003)


Amortization of premium and accretion of discount, net



(1,174,220)



(1,107,347)


Deferred tax provision (benefit)



181,813



(19,917)


Amortization of loan structure fees



272,959



239,700


Amortization of deferred financing costs



221,524



233,846


Amortization of loan fees on SBA-guaranteed debentures



589,020



501,885


Net realized (gain) loss on investments



(3,105,367)



1,326,105


Loss on debt extinguishment





539,250


Changes in other assets and liabilities








Increase in interest receivable



(28,511)



(522,772)


Increase in other receivables



(122,781)




Increase in related party receivable



(187,132)




Decrease in prepaid expenses



226,175



186,172


Increase (decrease) in management fees payable



250,828



(546,843)


Decrease in income incentive fees payable



(1,459,942)



(503,262)


(Decrease) increase in capital gains incentive fees payable



(1,025,791)



97,668


Increase in administrative services payable



13,373



2,584


Increase in interest payable



259,771



2,390,424


Decrease in unearned revenue



(18,860)



(9,626)


Decrease in income tax payable



(2,544,219)



(361,788)


Increase in other accrued expenses and liabilities



637,471



1,474,936


Net Cash Used In Operating Activities


$

(76,934,222)


$

(114,541,107)


Cash flows from Financing Activities








Proceeds from the issuance of common stock


$

420,004


$


Sales load for commons stock issued



(5,957)




Offering costs paid for common stock issued



(183,114)




Stockholder distributions paid



(11,064,831)



(8,115,917)


Repayment of Notes





(48,875,000)


Proceeds from issuance of Notes





100,000,000


Financing costs paid on Notes





(2,237,835)


Proceeds from SBA-guaranteed debentures



43,600,000



57,500,000


Financing costs paid on SBA-guaranteed debentures



(1,061,660)



(2,200,125)


Repayments of Credit Facility



(131,768)



(4,843)


Borrowings under Credit Facility



89,588,800



161,800,000


Repayments of Credit Facility



(61,940,000)



(143,200,000)


Net Cash Provided by Financing Activities


$

59,221,474


$

114,666,280


Net (Decrease) Increase in Cash and Cash Equivalents


$

(17,712,748)


$

125,173


Cash and Cash Equivalents balance at beginning of period



44,174,856



18,477,602


Cash and Cash Equivalents Balance at End of Period


$

26,462,108


$

18,602,775


Supplemental and Non-Cash Activities








Cash paid for interest expense


$

9,072,909


$

5,649,592


Income and excise tax paid



3,132,755



870,000


Increase in dividends payable



1,043,498



1,623,187


Increase (decrease) in deferred offering costs



74,270



(90,000)


Gain on conversion of equity investment





6,668


 

Reconciliation of Core Net Investment Income (1)

(Unaudited)










Quarter


Quarter




ended


ended




March 31, 2022


March 31, 2021

Net investment income



$6,174,571


$5,535,015

Capital gains incentive fee



(983,575)


14,387

Income tax expense



426,236


286,276

Core net investment income



$5,617,232


$5,835,678







Per share amounts:






Net investment income per share



$0.32


$0.28

Core net investment income per share



$0.29


$0.30







 

Reconciliation of Realized Net Investment Income (2)

(Unaudited)










Quarter


Quarter




ended


ended




March 31, 2022


March 31, 2021

Net investment income



$6,174,571


$5,535,015

Net realized gain on investments



(352,723)


(1,781,665)

Net realized gain on foreign currency translation




Total Realized Net Investment Income



$5,821,848


$3,753,350







Per share amounts:






Net investment income per share



$0.32


$0.28

Realized net investment income per share



$0.30


$0.19







 

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SOURCE Stellus Capital Investment Corporation



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