Daily News: March 10, 2015

Monroe Announces Record Q4/FY Results


Monroe Capital Corporation announced record financial results for the fourth quarter and for the full year ended December 31, 2014.

Fourth Quarter 2014 Financial Highlights:

  • Net investment income of $4.6 million, or $0.49 per share
  • Adjusted net investment income of $4.6 million, or $0.48 per share, the fifth consecutive quarter of growth in adjusted net investment income
  • Net increase in net assets resulting from operations of $4.2 million, or $0.44 per share
  • Net asset value of $133.7 million, or $14.05 per share

Chief executive officer Theodore L. Koenig commented, “We are pleased to report another strong quarter of performance for the fourth quarter of 2014, evidenced by the growth in our adjusted net investment income per share to $0.48 per share from $0.39 per share in the third quarter of 2014, a 23% increase. This represents the fifth consecutive quarter of per share adjusted net investment income growth for MRCC. We are very pleased that we have been able to grow our per share net investment
income for each of the last five quarters and are comfortably covering our fourth quarter dividend of $0.34 per share. This strong dividend coverage has resulted in the decision by our board of directors to
increase our quarterly dividend in the amount of 3% to $0.35 per share for the first quarter of 2015, at a time when several other BDCs have cut their dividend payout. We remain focused on creating high current income in order to continue to comfortably cover our current dividend and building long-term value for our shareholders.”

The company said its net investment income for the quarter ended December 31, 2014 increased to $4.6 million, or $0.49 per share, from $3.8 million, or $0.40 per share, when compared to the quarter ended September 30, 2014. Adjusted net investment income was $4.6 million, or $0.48 per share, for the quarter ended December 31, 2014, an increase of $0.9 million over the $3.7 million of adjusted net investment income, or $0.39
per share, for the quarter ended September 30, 2014. The increase in adjusted net investment income per share was primarily attributable to increases in interest income.

For the full year 2014 net investment income was $15.1 million an
increase of $6.4 million compared to net investment income of $8.7 million for the year ended December 31, 2013. Adjusted net investment income was $14.9 million, an increase of $6.0 million compared to adjusted net interest income of $8.9 million for the year ended December 31, 2013. This increase is primarily driven by an $11.7 million increase in interest income during the year ended December 31, 2014, due to higher
outstanding invested assets and continued optimization of the portfolio into higher yielding assets.

The company raised $56.0 million of capital during the third quarter of 2013, which allowed the company to significantly increase its investment portfolio. The increase in interest income during the year ended December 31, 2014 was partially offset by a $5.3 million increase in expenses. The increase in expenses was primarily attributable to an increase in interest expense as a result of additional borrowings required to support to the growth of the portfolio, an increase in base management fees due to the growth in invested assets and increased incentive fees resulting from improvement in performance.

The company said it had debt and equity investments in 40 portfolio companies, with a total fair value of $233.5 million, as of December 31, 2014 as compared to debt and equity investments in 40 portfolio companies, with a total fair value of $234.7 million, as of September 30, 2014.

The company’s portfolio consists primarily of first lien loans, representing 94.6% of the portfolio as of December 31, 2014 and 92.7% of the portfolio as of September 30, 2014. As of December 31, 2014, the weighted average contractual yield on the Company’s investments was 11.0% and the effective yield was 11.6% as compared to the weighted average contractual yield of 10.8% and effective yield of 11.3% as of September 30, 2014.