Logan Ridge Finance Corporation (“Logan Ridge”, “Logan”, “LRFC”,
“Company”, “we”, “us” or “our”) (Nasdaq: LRFC) announced today its
financial results for the first quarter ended March 31, 2024.
First Quarter 2024
Highlights
- Net Investment Income (“NII”)
increased to $0.9 million or $0.35 per share, as of March 31, 2024,
from $0.6 million or $0.22 per share as of December 31, 2023.
- Net asset value increased to $33.71
per share as of March 31, 2024, from $33.34 per share as of
December 31, 2023.
- Made approximately $9.8 million of
investments and had approximately $0.9 million in repayments and
sales of investments, resulting in net deployment of approximately
$8.9 million during the quarter ended March 31, 2024.
- Repurchased 20,867 of its
outstanding shares of common stock during the quarter ended March
31, 2024, for an aggregate cost of approximately $0.5 million under
the share repurchase program which resulted in $0.08 per share of
NAV accretion.
Subsequent Events
- On May 7, 2024, the Company’s Board
of Directors approved a second quarter distribution of $0.33 per
share payable on May 31, 2024, to stockholders of record as of May
21, 2024. This represents an increase of 3% as compared to $0.32
per share distributed for the first quarter of 2024.
Management CommentaryTed
Goldthorpe, Chief Executive Officer and President of LRFC, said,
“During the first quarter of 2024, we continued to build upon the
record financial results we generated in 2023. The first quarter
results are highlighted by quarter-over-quarter increases in net
investment income and net asset value of 63% and 1%, respectively.
Following the strong earnings we saw in 2023, Logan Ridge is off to
solid start in 2024 ending the first quarter with net deployment of
$8.9 million and a robust pipeline.
Further, the strength of the Company’s financial
position has allowed the Board of Directors to approve a dividend
of $0.33 per share for the second quarter of 2024, which represents
a 3% increase compared to the $0.32 per share distribution declared
for the first quarter of 2024.
Looking forward to the rest of 2024, we remain
focused on increasing shareholder returns by leveraging the
Company’s strong balance sheet, and the continued diligent
deployment of capital by taking advantage of new attractive
investment opportunities that we see throughout the market.”
Selected Financial Information
- Total investment
income for the quarter ended March 31, 2024, decreased by
$0.3 million, to $5.0 million, compared to $5.3 million for the
first quarter of 2023.
- Total operating
expenses for the quarter ended March 31, 2024, decreased
by $0.1 million, to $4.1 million, compared to $4.2 million for the
first quarter of 2023.
- Net investment
income for the quarter ended March 31, 2024, was $0.9
million, or $0.35 per share, compared to $1.1 million, or $0.40 per
share, for the first quarter of 2023.
- Net asset value as
of March 31, 2024, was $90.2 million, or $33.71 per share, compared
to $89.2 million, or $33.34 per share, as of December 31,
2023.
- Cash and
cash equivalents as of March 31, 2024, were $8.3 million
compared to $3.9 million as of December 31, 2023.
- The investment
portfolio as of March 31, 2024, consisted of investments
in 62 portfolio companies with a fair value of approximately $200.1
million. This compares to 60 portfolio companies with a fair value
of approximately $189.7 million as of December 31, 2023.
- Deployment
remained strong. During the first quarter, the Company made
approximately $9.8 million in investments and $0.9 million in
repayments and sales of investments, resulting in net deployment of
approximately $8.9 million for the quarter.
- The debt investment
portfolio as of March 31, 2024, represented 80.8% of the
fair value of the total portfolio, with a weighted average
annualized yield of approximately 11.4% (excluding income from
non-accruals and collateralized loan obligations), compared to a
debt investment portfolio of approximately 82.0% with a weighted
average annualized yield of approximately 11.1% (excluding income
from non-accruals and collateralized loan obligations) as of
December 31, 2023. As of March 31, 2024, 11.5% of the fair value of
the debt investment portfolio was bearing a fixed rate of interest,
compared to 13.6% of the fair value of the debt investment
portfolio as of December 31, 2023.
- Non-Accruals: As
of March 31, 2024, the Company had debt investments in three
portfolio companies on non-accrual status with an amortized cost
and fair value of $17.2 million and $10.6 million, respectively,
representing 8.3% and 5.3% of the investment portfolio’s amortized
cost and fair value, respectively. This compares to debt
investments in three portfolio companies on non-accrual status with
an aggregate amortized cost and fair value of $17.2 million and
$12.8 million, respectively, representing 8.7% and 6.9% of the
investment portfolio’s amortized cost and fair value, respectively,
at December 31, 2023.
- Asset coverage
ratio as of December 31, 2023 was 176%.
Results of OperationsOur
operating results for the quarters ended March 31, 2024 and
March 31, 2023 were as follows (dollars in thousands):
|
|
For the Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Total investment income |
|
$ |
5,003 |
|
|
$ |
5,256 |
|
Total expenses |
|
|
4,056 |
|
|
|
4,183 |
|
Net investment income |
|
|
947 |
|
|
|
1,073 |
|
Net realized gain (loss) on
investments |
|
|
287 |
|
|
|
(1,506 |
) |
Net change in unrealized
appreciation (depreciation) on investments |
|
|
675 |
|
|
|
(217 |
) |
Net realized loss on
extinguishment of debt |
|
|
(58 |
) |
|
|
— |
|
Net increase (decrease) in net
assets resulting from operations |
|
$ |
1,851 |
|
|
$ |
(650 |
) |
Investment income The
composition of our investment income for the quarters ended March
31, 2024 and March 31, 2023 was as follows (dollars in
thousands):
|
|
For the Three Months Ended March 31, |
|
|
|
2024 |
|
|
2023 |
|
Interest income |
|
$ |
4,633 |
|
|
$ |
4,768 |
|
Payment-in-kind interest |
|
|
353 |
|
|
|
464 |
|
Dividend income |
|
|
17 |
|
|
|
14 |
|
Other income |
|
|
— |
|
|
|
10 |
|
Total investment income |
|
$ |
5,003 |
|
|
$ |
5,256 |
|
Fair Value of InvestmentsThe composition of our
investments as of March 31, 2024, and December 31, 2023 at
amortized cost and the fair value of investments was as follows
(dollars in thousands):
March 31,
2024 |
|
Investments atAmortized Cost |
|
|
Amortized CostPercentage
ofTotal Portfolio |
|
|
Investments atFair Value |
|
|
Fair ValuePercentage
ofTotal Portfolio |
|
First Lien Debt |
|
$ |
137,088 |
|
|
|
66.5 |
% |
|
$ |
130,377 |
|
|
|
65.2 |
% |
Second Lien Debt |
|
|
9,155 |
|
|
|
4.4 |
% |
|
|
8,308 |
|
|
|
4.2 |
% |
Subordinated Debt |
|
|
26,573 |
|
|
|
12.9 |
% |
|
|
22,910 |
|
|
|
11.4 |
% |
Collateralized Loan
Obligations |
|
|
1,701 |
|
|
|
0.8 |
% |
|
|
1,648 |
|
|
|
0.8 |
% |
Joint Venture |
|
|
386 |
|
|
|
0.2 |
% |
|
|
396 |
|
|
|
0.2 |
% |
Equity |
|
|
31,404 |
|
|
|
15.2 |
% |
|
|
36,483 |
|
|
|
18.2 |
% |
Total |
|
$ |
206,307 |
|
|
|
100.0 |
% |
|
$ |
200,122 |
|
|
|
100.0 |
% |
December 31,
2023 |
|
Investments atAmortized Cost |
|
|
Amortized CostPercentage
ofTotal Portfolio |
|
|
Investments atFair Value |
|
|
Fair ValuePercentage
ofTotal Portfolio |
|
First Lien Debt |
|
$ |
128,537 |
|
|
|
65.4 |
% |
|
$ |
124,007 |
|
|
|
65.4 |
% |
Second Lien Debt |
|
|
8,968 |
|
|
|
4.6 |
% |
|
|
7,918 |
|
|
|
4.2 |
% |
Subordinated Debt |
|
|
26,573 |
|
|
|
13.5 |
% |
|
|
23,548 |
|
|
|
12.4 |
% |
Collateralized Loan
Obligations |
|
|
1,600 |
|
|
|
0.8 |
% |
|
|
1,600 |
|
|
|
0.8 |
% |
Joint Venture |
|
|
440 |
|
|
|
0.2 |
% |
|
|
450 |
|
|
|
0.2 |
% |
Equity |
|
|
30,400 |
|
|
|
15.5 |
% |
|
|
32,135 |
|
|
|
17.0 |
% |
Total |
|
$ |
196,518 |
|
|
|
100.0 |
% |
|
$ |
189,658 |
|
|
|
100.0 |
% |
Interest Rate Risk
Based on our March 31, 2024 consolidated
statements of assets and liabilities, the following table shows the
annual impact on net income (excluding the potential related
incentive fee impact) of base rate changes in interest rates
(considering interest rate floors for variable rate securities)
assuming no changes in our investment and borrowing structure
(dollars in thousands):
Basis Point Change |
Increase(decrease) in interest
income |
|
(Increase)decrease
ininterest expense |
|
Increase(decrease) innet
income |
|
Up 300 basis points |
$ |
4,495 |
|
$ |
(1,610 |
) |
$ |
2,885 |
|
Up 200 basis points |
|
2,997 |
|
|
(1,073 |
) |
|
1,924 |
|
Up 100 basis points |
|
1,498 |
|
|
(537 |
) |
|
961 |
|
Down 100 basis points |
|
(1,498 |
) |
|
537 |
|
|
(961 |
) |
Down 200 basis points |
|
(2,997 |
) |
|
1,073 |
|
|
(1,924 |
) |
Down 300 basis points |
$ |
(4,434 |
) |
$ |
1,610 |
|
$ |
(2,824 |
) |
Conference Call and Webcast
We will hold a conference call on Thursday, May
9, 2024, at 10:00 a.m. Eastern Time to discuss the first quarter
2024 financial results. Stockholders, prospective stockholders, and
analysts are welcome to listen to the call or attend the
webcast.
To access the conference call, please dial (646)
307-1963 approximately 10 minutes prior to the start of the call
and use the conference ID 2512637.
A replay of this conference call will be
available shortly after the live call through May 16, 2024.
A live audio webcast of the conference call can
be accessed via the Internet, on a listen-only basis on our
Company’s website www.loganridgefinance.com in the Investor
Resources section under Events and Presentations. The webcast can
also be accessed by clicking the following link:
https://edge.media-server.com/mmc/p/jhfbv6fa. The online archive of
the webcast will be available on the Company’s website shortly
after the call.
About Logan Ridge Finance
CorporationLogan Ridge Finance Corporation (Nasdaq: LRFC)
is a business development company that invests primarily in first
lien loans and, to a lesser extent, second lien loans and equity
securities issued by lower middle-market companies. The Company
invests in performing, well-established middle-market businesses
that operate across a wide range of industries. It employs
fundamental credit analysis, targeting investments in businesses
with relatively low levels of cyclicality and operating risk. For
more information, visit www.loganridgefinance.com.
About Mount Logan Capital Inc.
Mount Logan Capital Inc. (“MLC”) is an alternative asset management
company that is focused on public and private debt securities in
the North American market. MLC seeks to source and actively manage
loans and other debt-like securities with credit-oriented
characteristics. MLC actively sources, evaluates, underwrites,
manages, monitors, and primarily invests in loans, debt securities,
and other credit-oriented instruments that present attractive
risk-adjusted returns and present low risk of principal impairment
through the credit cycle.
About BC Partners Advisors L.P. and BC
Partners CreditBC Partners is a leading international
investment firm in private equity, private credit and real estate
strategies. Established in 1986, BC Partners has played an active
role in developing the European buyout market for three decades.
Today, BC Partners executives operate across markets as an
integrated team through the firm's offices in North America and
Europe. For more information, please visit www.bcpartners.com.
BC Partners Credit was launched in February 2017
and has pursued a strategy focused on identifying attractive credit
opportunities in any market environment and across sectors,
leveraging the deal sourcing and infrastructure made available from
BC Partners.
Cautionary Statement Regarding
Forward-Looking Statements
This communication contains “forward-looking”
statements. Forward-looking statements concern future circumstances
and results and other statements that are not historical facts and
are sometimes identified by the words “may,” “will,” “should,”
“potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,”
“estimate,” “overestimate,” “underestimate,” “believe,” “could,”
“project,” “predict,” “continue,” “target” or other similar words
or expressions. Forward-looking statements are based upon current
plans, estimates and expectations that are subject to risks,
uncertainties, and assumptions. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions
prove to be incorrect, actual results may vary materially from
those indicated or anticipated by such forward-looking statements.
The inclusion of such statements should not be regarded as a
representation that such plans, estimates or expectations will be
achieved. Important factors that could cause actual results to
differ materially from such plans, estimates or expectations
include those risk factors detailed in the Company’s reports filed
with the Securities and Exchange Commission (“SEC”), including the
Company’s annual report on Form 10-K, quarterly reports on Form
10-Q, current reports on Form 8-K and other documents filed with
the SEC.
Any forward-looking statements speak only as of
the date of this communication. The Company does not undertake any
obligation to update any forward-looking statements, whether as a
result of new information or developments, future events or
otherwise, except as required by law. Readers are cautioned not to
place undue reliance on any of these forward-looking
statements.
For additional information, contact:
Logan Ridge Finance Corporation650 Madison Avenue, 23rd FloorNew
York, NY 10022
Brandon SatorenChief Financial Officer
Brandon.Satoren@bcpartners.com (212) 891-2880
Lena Cati The Equity Group
Inc.lcati@equityny.com (212) 836-9611
Val FerraroThe Equity Group
Inc.vferraro@equityny.com (212) 836-9633
Logan Ridge Finance
CorporationConsolidated Statements of Assets and
Liabilities (in thousands, except share and per
share data) |
|
|
|
As of March 31,2024 |
|
|
As of December 31,2023 |
|
|
|
(unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
Investments at fair
value: |
|
|
|
|
|
|
Non-control/non-affiliate investments (amortized cost of $180,798
and $170,972, respectively) |
|
$ |
167,802 |
|
|
$ |
161,880 |
|
Affiliate investments (amortized cost of $25,509 and $25,546,
respectively) |
|
|
32,320 |
|
|
|
27,778 |
|
Total investments at fair value (amortized cost of $206,307 and
$196,518, respectively) |
|
|
200,122 |
|
|
|
189,658 |
|
Cash and cash equivalents |
|
|
8,335 |
|
|
|
3,893 |
|
Interest and dividend
receivable |
|
|
1,865 |
|
|
|
1,374 |
|
Prepaid expenses |
|
|
2,013 |
|
|
|
2,163 |
|
Receivable for unsettled
trades |
|
|
167 |
|
|
|
— |
|
Distribution paid in advance
to transfer agent |
|
|
855 |
|
|
|
— |
|
Other assets |
|
|
17 |
|
|
|
— |
|
Total assets |
|
$ |
213,374 |
|
|
$ |
197,088 |
|
LIABILITIES |
|
|
|
|
|
|
2026 Notes (net of deferred
financing costs and original issue discount of $967 and $1,057,
respectively) |
|
$ |
49,033 |
|
|
$ |
48,943 |
|
2032 Convertible Notes (net of
deferred financing costs and original issue discount of $910 and
$999, respectively) |
|
|
13,090 |
|
|
|
14,001 |
|
KeyBank Credit Facility (net
of deferred financing costs of $897 and $982, respectively) |
|
|
52,018 |
|
|
|
38,571 |
|
Management and incentive fees
payable |
|
|
893 |
|
|
|
869 |
|
Distribution payable |
|
|
856 |
|
|
|
— |
|
Interest and financing fees
payable |
|
|
1,441 |
|
|
|
949 |
|
Accounts payable and accrued
expenses |
|
|
1,289 |
|
|
|
833 |
|
Payable for unsettled
trades |
|
|
4,559 |
|
|
|
3,747 |
|
Total liabilities |
|
$ |
123,179 |
|
|
$ |
107,913 |
|
Commitments and
contingencies |
|
|
|
|
|
|
NET ASSETS |
|
|
|
|
|
|
Common stock, par value $0.01,
100,000,000 shares of common stock authorized, 2,675,936 and
2,674,698 shares of common stock issued and outstanding,
respectively |
|
$ |
27 |
|
|
$ |
27 |
|
Capital in excess of par
value |
|
|
188,430 |
|
|
|
188,405 |
|
Total distributable earnings
(loss) |
|
|
(98,262 |
) |
|
|
(99,257 |
) |
Total net assets |
|
$ |
90,195 |
|
|
$ |
89,175 |
|
Total liabilities and net
assets |
|
$ |
213,374 |
|
|
$ |
197,088 |
|
Net asset value per share |
|
$ |
33.71 |
|
|
$ |
33.34 |
|
Logan Ridge Finance
CorporationConsolidated Statements of
Operations(in thousands, except share and per
share data) |
|
|
|
|
For the Three Months Ended March 31, |
|
|
|
|
2024 |
|
|
2023 |
|
|
INVESTMENT INCOME |
|
|
|
|
|
|
|
Interest income: |
|
|
|
|
|
|
|
Non-control/non-affiliate investments |
|
$ |
4,633 |
|
|
$ |
4,604 |
|
|
Affiliate investments |
|
|
— |
|
|
|
164 |
|
|
Total interest income |
|
|
4,633 |
|
|
|
4,768 |
|
|
Payment-in-kind interest and
dividend income: |
|
|
|
|
|
|
|
Non-control/non-affiliate investments |
|
|
336 |
|
|
|
416 |
|
(1) |
Affiliate investments |
|
|
17 |
|
|
|
48 |
|
|
Total payment-in-kind interest and dividend income |
|
|
353 |
|
|
|
464 |
|
|
Dividend income: |
|
|
|
|
|
|
|
Affiliate investments |
|
|
17 |
|
|
|
14 |
|
|
Total dividend income |
|
|
17 |
|
|
|
14 |
|
|
Other income: |
|
|
|
|
|
|
|
Non-control/non-affiliate investments |
|
|
— |
|
|
|
10 |
|
|
Total other income |
|
|
— |
|
|
|
10 |
|
|
Total investment income |
|
|
5,003 |
|
|
|
5,256 |
|
|
EXPENSES |
|
|
|
|
|
|
|
Interest and financing
expenses |
|
|
2,007 |
|
|
|
2,069 |
|
|
Base management fee |
|
|
893 |
|
|
|
930 |
|
|
Directors' expense |
|
|
150 |
|
|
|
135 |
|
|
Administrative service
fees |
|
|
201 |
|
|
|
257 |
|
|
General and administrative
expenses |
|
|
805 |
|
|
|
792 |
|
|
Total expenses |
|
|
4,056 |
|
|
|
4,183 |
|
|
NET INVESTMENT INCOME |
|
|
947 |
|
|
|
1,073 |
|
|
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS |
|
|
|
|
|
|
|
Net realized gain (loss) on
investments: |
|
|
|
|
|
|
|
Non-control/non-affiliate investments |
|
|
287 |
|
|
|
(1,506 |
) |
|
Net realized gain (loss) on investments |
|
|
287 |
|
|
|
(1,506 |
) |
|
Net change in unrealized
appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
Non-control/non-affiliate investments |
|
|
(3,904 |
) |
|
|
(1,250 |
) |
|
Affiliate investments |
|
|
4,579 |
|
|
|
1,033 |
|
|
Net change in unrealized appreciation (depreciation) on
investments |
|
|
675 |
|
|
|
(217 |
) |
|
Total net realized and change in unrealized gain (loss) on
investments |
|
|
962 |
|
|
|
(1,723 |
) |
|
Net realized loss on
extinguishment of debt |
|
|
(58 |
) |
|
|
— |
|
|
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS |
|
$ |
1,851 |
|
|
$ |
(650 |
) |
|
NET INCREASE (DECREASE) IN NET
ASSETS PER SHARE RESULTINGFROM OPERATIONS – BASIC |
|
$ |
0.69 |
|
|
$ |
(0.24 |
) |
|
WEIGHTED AVERAGE COMMON STOCK
OUTSTANDING – BASIC |
|
|
2,678,342 |
|
|
|
2,710,990 |
|
|
NET INCREASE (DECREASE) IN NET
ASSETS PER SHARE RESULTINGFROM OPERATIONS – DILUTED |
|
$ |
0.65 |
|
|
$ |
(0.24 |
) |
|
WEIGHTED AVERAGE COMMON STOCK
OUTSTANDING – DILUTED |
|
|
3,195,740 |
|
|
|
2,710,990 |
|
|
DISTRIBUTIONS PAID PER
SHARE |
|
$ |
0.32 |
|
|
$ |
0.18 |
|
|
_____________________
(1) |
During the three months ended March 31, 2023, the Company received
$0.2 million of non-recurring income that was paid-in-kind and
included in this financial statement line item. |
Logan Ridge Finance (NASDAQ:LRFC)
과거 데이터 주식 차트
부터 2월(2) 2025 으로 3월(3) 2025
Logan Ridge Finance (NASDAQ:LRFC)
과거 데이터 주식 차트
부터 3월(3) 2024 으로 3월(3) 2025