Financial

Capitala Finance Corp. (NASDAQ: CPTA) originated $27.8 million of new investments

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Capitala Finance Corp. (NASDAQ: CPTA) reported its financial results for the first quarter of 2018.

On Tuesday, Capitala Finance Corp. (CPTA) shares price traded between $6.88 and $13.57 during the last trading session with at $8.33. The shares recorded a trading volume 65,998 million shares as compared to its average volume of 133.123M shares. the one year trading period, the stock has a peak price of $6.88 and its down is recorded at $8.37.

1st Quarter 2018 Financial Resuls

During the first quarter of 2018, the Company originated $27.8M of new investments, and received $21.4M of repayments. Debt investments represented 97% of first quarter investment activity, all of which were first lien structures. The weighted average annualized yield on the first quarter debt investments was 10.8%.

Total investment income was $12.6M for the first quarter of 2018, contrast to $14.8M in the first quarter of 2017. Interest, fee and PIK income collectively were $1.8M lower in the first quarter of 2018 contrast to 2017, resulting from a decline in the Company’s investment portfolio and the impact of higher non-accrual balances. All other income reduced by $0.4M from the comparable period.

Total expenses for the first quarter of 2018 were $8.1M, contrast to $8.6M for the comparable period in 2017. The decrease of $0.5M is attributable to (1) a decrease in interest and financing expenses of $0.3M, (2) a decrease of $0.1M in incentive fees, net of the waiver, and (3) a $0.1M decrease in all other expenses.

Net investment income for the first quarter of 2018 was $4.4M, or $0.28 per share, contrast to $6.2M, or $0.39 per share, for the same period in 2017.

Net realized losses totaled $3.9M, or $0.24 per share, for the first quarter of 2018, contrast to net gains of $4.8M, or $0.31 per share, for the same period in 2017. During the quarter, the Company realized a loss related to American Exteriors, LLC ($4.6M), partially offset by other gains totaling $0.7M.

Net unrealized depreciation totaled $0.4M, or $0.02 per share, for the first quarter of 2018, contrast to depreciation of $6.2M for the first quarter of 2017.

During the first quarter of 2018, the Company recorded a tax expense of $50 thousand primarily related to net income from our blocker corporation. There was no tax provision for the first quarter of 2017.

 

The net increase in net assets resulting from operations was $0.1M for the first quarter of 2018, or $0.01 per share, contrast to a net increase of $4.9M, or $0.31 per share, for the same period in 2017.

Investment Portfolio

As of March 31, 2018, our portfolio consisted of 46 companies with a fair market value of $503.7M and a cost basis of $469.2M. First lien debt investments represented 51.0% of the portfolio, second lien debt investments represented 6.3% of the portfolio, subordinated debt investments represented 18.4% of the portfolio, and equity/warrant investments represented 24.3% of the portfolio, based on fair values at March 31, 2018. On a cost basis, equity investments comprised 12.0% of the portfolio at March 31, 2018. The weighted average yield on our debt portfolio was 12.0% at March 31, 2018, contrast to 11.9% at December 31, 2017.

In the liquidity ratio analysis; Capitala Finance Corp.’s (CPTA) institutional ownership of 17.70% while the Beta factor was 0.95. The stock’s RSI amounts to 53.64.

EPS growth ratio for the past five years was -16.20% while Sales growth for the past five years was 15.40%

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