tiprankstipranks
Stellus Capital Investment Corporation Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2022
Press Releases

Stellus Capital Investment Corporation Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2022

HOUSTON, Feb. 28, 2023 /PRNewswire/ — Stellus Capital Investment Corporation (NYSE:SCM) (“Stellus” or the “Company”) today announced financial results for its fourth fiscal quarter and year ended December 31, 2022.

Robert T. Ladd, Chief Executive Officer of Stellus, stated, “I am pleased to report strong results for the quarter ended December 31, 2022, in which we more than covered our regular and additional dividends of $0.34 per share with U.S. GAAP net investment income of $0.50 per share and Core net investment income of $0.44 per share, and increased our regular dividend 43% from $0.28 per share per quarter in the fourth quarter of 2022 to $0.40 per share per quarter, payable in monthly increments beginning in the first quarter of 2023. This increase in our dividend reflects the greater earnings that we are generating in this higher interest rate environment in which our loan portfolio is over 97% floating rate and our liability structure is over 65% fixed rate.”

FINANCIAL HIGHLIGHTS

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



Three Months Ended


Three Months Ended


Year Ended


Year Ended


December 31, 2022


December 31, 2021


December 31, 2022


December 31, 2021


Amount

Per Share


Amount

Per Share


Amount

Per Share


Amount

Per Share

Net investment income

$9.71

$0.50


$5.12

$0.26


$28.59

$1.46


$19.78

$1.01

Core net investment income(1)

8.66

0.44


6.53

0.33


26.93

1.38


23.75

1.22

Net realized (loss) gain on investments

(1.00)

(0.06)


17.11

0.88


3.66

0.19


23.71

1.22

Net realized loss on foreign currency translation



(0.01)


Loss on debt extinguishment




(0.54)

(0.03)

Provision for taxes on realized gain on investments in taxable subsidiaries


(2.28)

(0.12)



(2.96)

(0.15)

Total realized income(2)

$8.71

$0.44


$19.95

$1.02


$32.24

$1.65


$40.53

$2.05

Distributions

(6.67)

(0.34)


(1.18)

(0.06)


(25.42)

(1.30)


(22.22)

(1.14)

Net unrealized depreciation on investments

(4.73)

(0.24)


(10.80)

(0.55)


(17.54)

(0.90)


(6.93)

(0.36)

Net unrealized appreciation on foreign currency translation

0.06



0.01


Provision for taxes on unrealized appreciation on investments in taxable subsidiaries

(0.06)


1.10

0.06


(0.21)

(0.01)


0.51

0.03

Net increase in net assets resulting from operations

$3.98

0.20


$10.25

0.53


$14.49

0.74


$33.57

1.72

Weighted average shares outstanding


19,604,040



19,500,866



19,552,931



19,489,750



(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. generally accepted accounting principles (“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







December 31, 2022


December 31, 2021





Investments at fair value


$844.7


$772.9





Total assets


$898.2


$821.3





Net assets


$275.8


$285.1





Shares outstanding


19,666,769


19,517,595





Net asset value per share


$14.02


$14.61

























Three Months Ended


Three Months Ended


Year Ended


Year Ended



December 31, 2022


December 31, 2021


December 31, 2022


December 31, 2021

New investments


$30.1


$144.0


$211.0


$387.3

Repayments of investments


(53.2)


(164.0)


(127.5)


(287.6)

Net activity


($23.1)


($20.0)


$83.5


$99.7












As of


As of







December 31, 2022


December 31, 2021





Number of portfolio company investments


85


73





Number of debt investments


73


58














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





Cash


10.3 %


7.4 %





Payment-in-kind (“PIK”)


0.4 %


0.2 %





Fee amortization


0.4 %


0.4 %





Total


11.1 %


8.0 %














Weighted average yield on total investments (4)





Cash


9.7 %


6.9 %





Payment-in-kind (“PIK”)


0.3 %


0.2 %





Fee amortization


0.4 %


0.4 %





Total


10.4 %


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 years ended December 31, 2022 and 2021 totaled $75.1 million and $63.7 million, respectively, most of which was interest income from portfolio investments.

Operating expenses for the years ended December 31, 2022 and 2021, totaled $46.5 million and $43.9 million, respectively. For the same respective periods, base management fees totaled $14.8 million and $13.2 million, income incentive fees totaled $3.8 and $3.0 million, capital gains incentive (reversal) fees totaled ($2.8) million and $2.9 million, fees and expenses related to our borrowings totaled $24.5 million and $18.7 million (including interest and amortization of deferred financing costs), administrative expenses totaled $1.8 million for both periods, income tax totaled $1.2 million and $1.1 million and other expenses totaled $3.2 million for both periods.

The capital gains incentive fee had a reversal of ($2.8) million for the year ended December 31, 2022 due to the increase in unrealized losses, net of realized gains over the year. 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 $1.2 million for the year ended December 31, 2022 was accrued based on estimates of undistributed taxable income, which was generated largely from net income, offset by realized losses.

Net investment income was $28.6 million and $19.8 million, or $1.46 and $1.01 per common share based on weighted average common shares outstanding of 19,552,931 and 19,489,750 for the years ended December 31, 2022 and 2021, respectively.  Core net investment income, which is a non-U.S. GAAP measure that excludes the capital gains incentive fee and income tax expense accruals, for the year ended December 31, 2022 was $26.9 million, or $1.38 per share; and for the year ended December 31, 2021 was $23.7 million, or $1.22 per share.

For the years ended December 31, 2022 and 2021, the Company’s investment portfolio had a net change in unrealized depreciation of ($17.5) million and ($6.9) million, respectively, and the Company had realized gains of $3.7 million and $23.7 million, respectively.

Net increase in net assets resulting from operations totaled $14.5 million and $33.6 million, or $0.74 and $1.72 per common share, based on weighted average common shares outstanding of 19,552,931 and 19,489,750 for the years ended December 31, 2022 and 2021, respectively.

Liquidity and Capital Resources

As of December 31, 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 December 31, 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 December 31, 2022 and December 31, 2021, we had $199.2 million and $177.3 million in outstanding borrowings under the Credit Facility, respectively.

Distributions

During the three months December 31, 2022 and 2021, we declared aggregate distributions of $0.34 and $0.06 per share, respectively ($6.7 million and $1.2 million, respectively). During the years ended December 31, 2022 and 2021, we declared aggregate distributions of $1.30 per share and $1.14, respectively ($25.4 million and $22.2 million, respectively), Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV. Approximately $3.8 million of the dividends declared in 2022 are expected to be characterized as long-term capital gains. None of these dividends are expected to include a return of capital.

Recent Portfolio Activity

The Company invested in the following portfolio companies during the three months ended December 31, 2022:













Activity Type


Date


Company Name


Company Description


Investment Amount


 Instrument Type

New Investment


October 12, 2022


NINJIO, LLC


Cybersecurity awareness and training platform


$

5,000,000


Senior Secured – First Lien









$

100,000


Revolver commitment









$

100,000


Delayed draw term loan commitment









$

313,253


Equity

New Investment


November 16, 2022


Onpoint Industrial Services, LLC


Provider of safety, logistics, planning, and project management services to refineries and petrochemical plant


$

12,893,258


Senior Secured – First Lien









$

606,742


Equity

New Investment


November 22, 2022


COPILOT Provider Support Services, LLC


End-to-end HUB software platform for the healthcare industry


$

5,000,000


Senior Secured – First Lien









$

100,000


Revolver commitment









$

285,714


Equity

Add-On Investment


December 20, 2022


USASF Blocker V LLC*


Leading integrated used car retailer and subprime auto finance company


$

200,000


Equity

Add-On Investment


December 22, 2022


Tower Arch Infolinks Media, LP*


Advertising placement partner for small to mid-sized publishers


$

1,093


Equity

New Investment


December 30, 2022


Madison Logic, Inc.


Provider of B2B account based marketing services


$

4,529,217


Senior Secured – First Lien









$

100,000


Revolver commitment




*

Existing portfolio company

 

The Company realized investments in the following portfolio companies during the three months ended December 31, 2022:














Activity Type


Date


Company Name


Proceeds Received


Realized Gain


 Instrument Type

Full Realization


October 17, 2022


EC Defense Holdings, LLC


$

$1,450,000


$

$950,000


Equity

Full Repayment


November 16, 2022


Onpoint Industrial Services, LLC


$

$10,342,500


$


Senior Secured – First Lien

Full Realization






$

$669,654


$

$170,619


Equity

Full Realization


November 28, 2022


Colford Capital Holdings, LLC


$



($195,036)


Equity

Full Realization


December 9, 2022


Grupo HIMA San Pablo, Inc.


$


$

($4,109,525)


Senior Secured – Second Lien

Full Repayment


December 15, 2022


Spire Power Solutions, L.P.


$

$8,371,564


$


Senior Secured – First Lien

Full Realization


December 16, 2022


Skopos Financial Group, LLC


$


$

($1,162,544)


Equity

Full Repayment


December 22, 2022


TFH Reliability, LLC


$

$10,875,000


$


Senior Secured – Second Lien

Full Realization






$

$351,797


$

$98,765


Equity

Full Repayment


December 30, 2022


Madison Logic, Inc.


$

$10,586,585


$


Senior Secured – First Lien

Full Realization






$

$4,128,966


$

$4,128,966


Equity

Full Realization


December 30, 2022


Bromford Holdings, L.P.


$


$

($1,146,706)


Equity

 

Events Subsequent to December 31, 2022

The Company invested in the following portfolio companies subsequent to December 31, 2022:













Activity Type


Date


Company Name


Company Description


Investment Amount


 Instrument Type

Add-On Investment


January 5, 2023


GP ABX Holdings Partnership, L.P.*


Manufacturer of high barrier forming web films


$

35,308


Equity

New Investment


January 23, 2023


Evriholder Acquisition, Inc.


Designer and supplier of impulse products and merchandising solutions to retailers.


$

13,000,000


Senior Secured – First Lien









$

873,333


Equity









$

100,000


Revolver commitment

New Investment


January 31, 2023


Red’s All Natural, LLC


Premium frozen food manufacturer


$

10,916,882


Senior Secured – First Lien









$

710,600


Equity





* Existing portfolio company


 

Credit Facility

The outstanding balance under the Credit Facility as of February 28, 2023 was $205.6 million.

SBA-guaranteed Debentures

The total balance of SBA-guaranteed debentures outstanding as of February 28, 2023 was $313.6 million.

Distributions Declared

On January 11, 2023, our Board of Directors declared a regular monthly distribution for each of January, February, and March 2023, as follows:













Ex-Dividend


Record


Payment


Amount per

Declared


Date


Date


Date


Share

1/11/2023


1/30/2023


1/31/2023


2/15/2023


$

0.1333

1/11/2023


2/27/2023


2/28/2023


3/15/2023


$

0.1333

1/11/2023


3/30/2023


3/31/2023


4/14/2023


$

0.1333

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Wednesday, March 1, 2023 at 10:00 AM, Central 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) 506-0062. Use passcode 265440. Starting approximately two hours after the conclusion of the call, a replay will be available through Wednesday, March 15, 2023 by dialing (877) 481-4010 and entering passcode 47767. 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 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




December 31, 2022


December 31, 2021

ASSETS







Non-controlled, non-affiliated investments, at fair value (amortized cost of $875,823,177

and $785,005,957, respectively)


$

844,733,638


$

772,873,326

Cash and cash equivalents



48,043,329



44,174,856

Receivable for sales and repayments of investments



718,794



536,105

Interest receivable



3,984,409



2,944,599

Other receivables



34,245



54,752

Deferred tax asset





151,278

Deferred offering costs



1,100



14,888

Prepaid expenses



667,267



512,214

Total Assets


$

898,182,782


$

821,262,018

LIABILITIES







Notes payable


$

98,549,692


$

98,102,973

Credit Facility payable



197,685,281



175,451,116

SBA-guaranteed debentures



307,895,195



244,615,903

Dividends payable





1,171,059

Management fees payable



7,150,407



3,454,225

Income incentive fees payable



2,464,408



1,749,130

Capital gains incentive fees payable



569,528



3,388,151

Interest payable



4,640,841



3,693,662

Related party payable



1,060,321



Unearned revenue



320,675



529,726

Administrative services payable



356,919



386,368

Income tax payable



1,175,373



3,269,514

Deferred tax liability



61,936



Other accrued expenses and liabilities



475,593



338,958

Total Liabilities


$

622,406,169


$

536,150,785

Commitments and contingencies (Note 7)







Net Assets


$

275,776,613


$

285,111,233

NET ASSETS







Common stock, par value $0.001 per share (100,000,000 shares  authorized; 19,666,769 and

19,517,595 issued and outstanding, respectively


$

19,667


$

19,518

Paid-in capital



275,114,720



274,559,121

Total distributable earnings



642,226



10,532,594

Net Assets


$

275,776,613


$

285,111,233

Total Liabilities and Net Assets


$

898,182,782


$

821,262,018

Net Asset Value Per Share


$

14.02


$

14.61

 

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS




For the years ended



December 31, 2022


December 31, 2021


December 31, 2020

INVESTMENT INCOME










Interest income


$

72,964,999


$

61,536,686


$

55,350,781

Other income



2,147,577



2,142,308



1,307,533

Total Investment Income


$

75,112,576


$

63,678,994


$

56,658,314

OPERATING EXPENSES










Management fees


$

14,848,174


$

13,169,606


$

11,084,450

Valuation fees



351,752



313,437



290,445

Administrative services expenses



1,810,576



1,798,966



1,781,603

Income incentive fees



3,782,151



3,043,470



2,527,813

Capital gains incentive (reversal) fee



(2,818,623)



2,867,131



(359,892)

Professional fees



1,103,693



1,082,917



950,716

Directors’ fees



329,000



315,000



394,816

Insurance expense



503,907



482,140



384,774

Interest expense and other fees



24,469,285



18,721,058



15,950,087

Income tax expense



1,161,668



1,102,374



771,134

Other general and administrative expenses



984,309



1,006,428



890,465

Total Operating Expenses


$

46,525,892


$

43,902,527


$

34,666,411

Net Investment Income


$

28,586,684


$

19,776,467


$

21,991,903

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


$

3,660,595


$

23,710,167


$

(10,129,859)

Net realized loss on foreign currency translation



(6,091)





Loss on debt extinguishment





(539,250)



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



(17,542,230)



(6,928,160)



8,555,274

Net change in unrealized appreciation on foreign currency translation



6,040





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



(213,214)



510,868



(224,877)

Provision for taxes on realized gain on investments





(2,957,220)



Net Increase in Net Assets Resulting from Operations


$

14,491,784



33,572,872



20,192,441

Net Investment Income Per Share—basic and diluted


$

1.46


$

1.01


$

1.13

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


$

0.74


$

1.72


$

1.04

Weighted Average Shares of Common Stock Outstanding—basic and diluted



19,552,931



19,489,750



19,471,500

Distributions Per Share—basic and diluted


$

1.30


$

1.14


$

1.15

 

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS




Common Stock





Total






Number 


Par 


Paid-in 


distributable






of shares


value


capital


(loss) earnings


Net Assets

Balances as of December 31, 2019


19,131,746


$

19,132


$

272,117,091


$

(1,565,050)


$

270,571,173

Net investment income








21,991,903



21,991,903

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








(10,129,859)



(10,129,859)

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








8,555,274



8,555,274

Provision for taxes on unrealized appreciation on investments








(224,877)



(224,877)

Return of capital and other tax related adjustments






(1,090,064)



1,090,064



Distributions from net investment income








(22,402,959)



(22,402,959)

Issuance of common stock, net of offering costs


354,257



354



4,999,640





4,999,994

Balances at December 31, 2020


19,486,003


$

19,486


$

276,026,667


$

(2,685,504)


$

273,360,649

Net investment income








19,776,467



19,776,467

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








23,710,167



23,710,167

Loss on debt extinguishment








(539,250)



(539,250)

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








(6,928,160)



(6,928,160)

Benefit for taxes on unrealized depreciation on investments











510,868



510,868

Provision for taxes on realized gain on investments








(2,957,220)



(2,957,220)

Return of capital and other tax related adjustments






(1,861,213)



1,861,213



Distributions from net investment income








(21,201,567)



(21,201,567)

Distributions from net realized capital gains








(1,014,420)



(1,014,420)

Issuance of common stock, net of offering costs


31,592



32



393,667





393,699

Balances at December 31, 2021


19,517,595


$

19,518


$

274,559,121


$

10,532,594


$

285,111,233

Net investment income








28,586,684



28,586,684

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








3,660,595



3,660,595

Net realized loss on foreign currency translation








(6,091)



(6,091)

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








(17,542,230)



(17,542,230)

Net change in unrealized appreciation on foreign currency translations








6,040



6,040

Provision for taxes on unrealized appreciation on investments








(213,214)



(213,214)

Return of capital and other tax related adjustments






(1,040,884)



1,040,884



Distributions from net investment income








(21,633,343)



(21,633,343)

Distributions from net realized capital gains








(3,789,693)



(3,789,693)

Issuance of common stock, net of offering costs


149,174



149



1,596,483





1,596,632

Balances at December 31, 2022


19,666,769


$

19,667


$

275,114,720


$

642,226


$

275,776,613

 

STELLUS CAPITAL INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS




For the years ended



December 31, 2022


December 31, 2021


December 31, 2020

Cash flows from operating activities










Net increase in net assets resulting from operations


$

14,491,784


$

33,572,872


$

20,192,441

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










Purchases of investments



(211,010,869)



(387,281,160)



(152,007,165)

Proceeds from sales and repayments of investments



127,548,194



287,639,512



128,627,422

Net change in unrealized depreciation (appreciation) on investments



17,542,230



6,928,160



(8,555,274)

Net change in unrealized appreciation foreign currency translations



(5,897)





Increase in investments due to PIK



(1,357,177)



(939,030)



(664,992)

Amortization of premium and accretion of discount, net



(2,519,462)



(2,412,991)



(2,098,788)

Deferred tax provision (benefit)



213,214



(510,868)



224,877

Amortization of loan structure fees



567,375



518,930



647,872

Amortization of deferred financing costs



446,719



444,153



333,316

Amortization of loan fees on SBA-guaranteed debentures



1,227,952



1,088,132



701,068

Net realized (gain) loss on investments



(3,660,595)



(23,703,499)



10,129,859

Loss on debt extinguishment





539,250



Changes in other assets and liabilities










(Increase) decrease in interest receivable



(1,039,810)



(755,151)



725,262

Decrease (increase) in other receivable



20,507



(29,257)



Increase in prepaid expenses



(155,053)



(25,026)



(118,967)

Increase in management fees payable



3,696,182



628,903



129,542

Increase (decrease) in income incentive fees payable



715,278



1,067,470



(936,849)

(Decrease) increase in capital gains incentive fees payable



(2,818,623)



2,867,130



(359,892)

Decrease in administrative services payable



(29,449)



(5,123)



(21,787)

Increase (decrease) in interest payable



947,179



1,549,577



(178,229)

Increase in related party payable



1,060,321





(Decrease) increase in unearned revenue



(209,051)



6,302



(36,344)

(Decrease) increase in income tax payable



(2,094,141)



2,544,749



(192,235)

Increase (decrease) in other accrued expenses and liabilities



136,635



164,227



(28,730)

Net Cash Used in Operating Activities


$

(56,286,557)


$

(76,102,738)


$

(3,487,593)

Cash flows from Financing Activities










Proceeds from the issuance of common stock


$

2,158,540


$

449,515


$

4,794,994

Sales load for common stock issued



(31,066)



(2,489)



(18,169)

Offering costs paid for common stock issued



(517,054)



(53,327)



(95,681)

Stockholder distributions paid



(26,594,095)



(21,044,928)



(24,341,646)

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



63,600,000



73,500,000



15,500,000

Financing costs paid on SBA-guaranteed debentures



(1,548,660)



(3,139,725)



(577,425)

Financing costs paid on Credit facility



(193,635)



(136,219)



(1,880,099)

Borrowings under Credit Facility



149,888,800



268,700,000



120,950,000

Repayments of Credit Facility



(126,607,800)



(265,360,000)



(108,500,000)

Partial share redemption







(94)

Net Cash Provided by Financing Activities


$

60,155,030


$

101,799,992


$

5,831,880

Net Increase in Cash and Cash Equivalents


$

3,868,473


$

25,697,254


$

2,344,287

Cash and Cash Equivalents Balance at Beginning of Period



44,174,856



18,477,602



16,133,315

Cash and Cash Equivalents Balance at End of Period


$

48,043,329


$

44,174,856


$

18,477,602

Supplemental and Non-Cash Activities










Cash paid for interest expense


$

21,280,060


$

15,099,656


$

14,441,061

Income and excise tax paid



3,255,809



1,445,000



940,000

Shares issued pursuant to Dividend Reinvestment Plan







228,943

(Decrease) increase in dividends payable



(1,171,059)



1,171,059



(2,167,630)

(Decrease) increase in deferred offering costs



(13,788)



(75,112)



90,000

Gain on conversion of equity investment





6,668



 

Reconciliation of Core Net Investment Income (Unaudited)




Three Months Ended


Three Months Ended


Year Ended


Year Ended



December 31, 2022


December 31, 2021


December 31, 2022


December 31, 2021

Net investment income


$9,708,610


$5,116,721


$28,586,684


$19,776,467

Capital gains incentive fee


(1,146,074)


1,026,559


(2,818,623)


2,867,131

Income tax expense


94,900


383,505


1,161,668


1,102,374

Core net investment income


$8,657,436


$6,526,785


$26,929,729


$23,745,972










Per share amounts:









Net investment income per share


$0.50


$0.26


$1.46


$1.01

Core net investment income per share


$0.44


$0.33


$1.38


$1.22

 

Reconciliation of Realized Net Investment Income (Unaudited)




Three Months Ended


Three Months Ended


Year Ended


Year Ended



December 31, 2022


December 31, 2021


December 31, 2022


December 31, 2021

Net investment income


$9,708,610


$5,116,721


$28,586,684


$19,776,467

Net realized (loss) gain on investments


(998,222)


17,108,282


3,660,595


23,710,167

Net realized gain (loss) on foreign currency translation


1,935



(6,091)


Loss on debt extinguishment





(539,250)

Provision for taxes on realized gain on investments



(2,276,193)



(2,957,220)

Total Realized Net Investment Income


$8,712,323


$19,948,810


$32,241,188


$39,990,164










Per share amounts:









Net investment income per share


$0.50


$0.26


$1.46


$1.01

Realized net investment income per share


$0.44


$1.02


$1.65


$2.05

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/stellus-capital-investment-corporation-reports-results-for-its-fourth-fiscal-quarter-and-year-ended-december-31-2022-301758816.html

SOURCE Stellus Capital Investment Corporation

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
RUT
Russell 2000
TNX
10-Yr-Bond
Bitcoin

Popular Articles