SuRo Capital Corp. (“SuRo Capital”, the
“Company”, “we”, “us”, and “our”) (Nasdaq:
SSSS) today announced its financial results for
the quarter ended March 31, 2024. Net assets totaled approximately
$181.7 million, or $7.17 per share, at March 31, 2024, as compared
to $7.99 per share at December 31, 2023 and $7.59 per share at
March 31, 2023.
“We are pleased to share that we have deployed
more capital in the last four months than in any period in the last
two years. During the first quarter, we added one new portfolio
company through a $10.0 million primary investment in Supplying
Demand, Inc. (d/b/a Liquid Death), a CPG lifestyle beverage brand
focused on still water, sparkling water, and teas. Subsequent to
quarter-end, we completed a $10.0 million investment in Canva,
Inc., a leading design software and collaboration platform with
over 170 million monthly users. We also made a $15.0 million
investment in CW Opportunity 2 LP, an SPV that will invest in
CoreWeave, Inc., an AI cloud computing provider offering a suite of
NVIDIA GPUs on top of its fast and flexible infrastructure,” said
Mark Klein, Chairman and Chief Executive Officer of SuRo
Capital.
“With these exciting new additions to our
portfolio, and over $45.0 million in investable capital, we remain
steadfast in our belief that there continue to be high-quality
opportunities available at attractive prices that allow us to be
both opportunistic and judicious with the deployment of capital,”
Mr. Klein continued.
“As we have consistently demonstrated, SuRo
Capital is committed to initiatives that enhance shareholder value,
and we believe the market is currently undervaluing our portfolio.
Given the discount our stock has traded at compared to net asset
value per share, we believe our recent modified Dutch Auction
tender offer was an efficient and accretive deployment of capital.
As announced in the first quarter and executed subsequent to
quarter-end, the modified Dutch Auction tender offer resulted in
the purchase of 2.0 million shares of common stock for $4.70 per
share. Further, we continue to monitor leveraging the remaining
$20.7 million authorized under our active Share Repurchase
Program,” concluded Mr. Klein.
Investment Portfolio as of March 31,
2024
At March 31, 2024, SuRo Capital held positions
in 38 portfolio companies – 35 privately held and 3 publicly held,
some of which may be subject to certain lock-up provisions – with
an aggregate fair value of approximately $175.0 million, excluding
short-term US treasuries. The Company’s top five portfolio company
investments accounted for approximately 51% of the total portfolio
at fair value as of March 31, 2024.
Top Five Investments as of March 31,
2024
|
Portfolio Company ($ in millions) |
Cost Basis |
|
Fair Value |
|
% of Total Portfolio |
|
Learneo, Inc. |
$ |
15.0 |
|
$ |
43.0 |
|
24.6 |
% |
| ServiceTitan, Inc. |
|
10.0 |
|
|
13.4 |
|
7.7 |
|
| Blink Health,
Inc. |
|
15.0 |
|
|
11.6 |
|
6.6 |
|
| Locus Robotics Corp. |
|
10.0 |
|
|
10.9 |
|
6.2 |
|
| StormWind, LLC |
|
6.4 |
|
|
10.6 |
|
6.1 |
|
|
Total |
$ |
56.4 |
|
$ |
89.5 |
|
51.1 |
% |
__________________
Note: Total may not sum due to rounding.
First Quarter 2024 Investment Portfolio
Activity
During the three months ended March 31, 2024,
SuRo Capital made the following investment, excluding short-term US
treasuries:
|
Portfolio Company |
Investment |
Transaction Date |
Amount |
| Supplying Demand, Inc. (d/b/a
Liquid Death) |
Series F-1 Preferred Shares |
1/18/2024 |
$10.0 million |
| |
|
|
|
During the three months ended March 31, 2024,
SuRo Capital exited the following investments, excluding short-term
US treasuries:
|
Portfolio Company |
Transaction Date |
Quantity Sold |
Average Net Share Price(1) |
NetProceeds |
Realized Gain/(Loss) |
| Nextdoor Holdings,
Inc.(2) |
Various |
112,420 |
$1.92 |
$0.2 million |
$(0.4 million) |
| PSQ Holdings, Inc. (d/b/a
PublicSquare) – Public Warrants(3) |
Various |
100,000 |
$1.03 |
$0.1 million |
$0.1 million |
| |
|
|
|
|
|
__________________
(1) The average net
share price is the net share price realized after deducting all
commissions and fees on the sale(s), if applicable. (2) As of
February 23, 2024, SuRo Capital had sold its remaining Nextdoor
Holdings, Inc. public common shares.(3) As of March 31, 2024, SuRo
Capital held 2,296,037 remaining PSQ Holdings, Inc. (d/b/a
PublicSquare) public warrants.
Subsequent to quarter-end through May 8, 2024,
SuRo Capital made the following investments, excluding short-term
US treasuries:
|
Portfolio Company |
Investment |
Transaction Date |
Amount |
| Canva, Inc. |
Common Shares |
4/17/2024 |
$10.0 million |
| CW Opportunity 2 LP |
Class A Interest |
5/7/2024 |
$15.0 million |
| |
|
|
|
First Quarter 2024 Financial
Results
|
|
Quarter EndedMarch 31, 2024 |
|
Quarter EndedMarch 31, 2023 |
|
$ in millions |
|
per share(1) |
|
$ in millions |
|
per share(1) |
|
|
|
|
|
|
|
Net investment loss |
$ |
(3.2 |
) |
|
$ |
(0.13 |
) |
|
$ |
(4.2 |
) |
|
$ |
(0.15 |
) |
| |
|
|
|
|
| Net realized gain/(loss) on
investments |
|
(0.4 |
) |
|
|
(0.02 |
) |
|
|
0.2 |
|
|
|
0.01 |
|
| |
|
|
|
|
| Net change in unrealized
appreciation/(depreciation) of investments |
|
(18.4 |
) |
|
|
(0.73 |
) |
|
|
8.6 |
|
|
|
0.30 |
|
| |
|
|
|
|
| Net increase/(decrease) in net
assets resulting from operations – basic (2) |
$ |
(22.1 |
) |
|
$ |
(0.88 |
) |
|
$ |
4.6 |
|
|
$ |
0.16 |
|
| |
|
|
|
|
| Stock-based compensation |
|
0.4 |
|
|
|
0.06 |
|
|
|
0.4 |
|
|
|
0.04 |
|
| |
|
|
|
|
|
Increase/(decrease) in net asset value(2) |
$ |
(21.6 |
) |
|
$ |
(0.82 |
) |
|
$ |
5.0 |
|
|
$ |
0.20 |
|
__________________
(1) Based on basic
weighted-average number of shares outstanding for the relevant
period.(2) Total may not sum due to rounding.
Weighted-average common basic shares outstanding
were approximately 25.4 million and 28.4 million for the quarters
ended March 31, 2024 and 2023, respectively. As of March 31, 2024,
there were 25,353,284 shares of the Company’s common stock
outstanding.
SuRo Capital’s liquid assets were approximately
$84.6 million as of March 31, 2024, consisting of cash, short-term
US Treasuries, and securities of publicly traded portfolio
companies not subject to lock-up restrictions at quarter-end.
Modified Dutch Auction Tender
Offer
On February 14, 2024, our Board of Directors
authorized a modified Dutch Auction tender offer (the “Tender
Offer”) to purchase up to 2.0 million shares of our common stock at
a price per share not less than $4.00 and not greater than $5.00 in
$0.10 increments, using available cash. In accordance with the
Tender Offer, following the expiration of the Tender Offer at 5:00
P.M. Eastern Time on April 1, 2024, the Company repurchased
2,000,000 shares at a price of $4.70 per share, representing 7.9%
of its outstanding shares. The per share purchase price of properly
tendered shares represents 58.8% of net asset value per share as of
December 31, 2023.
Share Repurchase Program
Under the Share Repurchase Program, the Company
may repurchase its outstanding common stock in the open market,
provided it complies with the prohibitions under its insider
trading policies and procedures and the applicable provisions of
the Investment Company Act of 1940, as amended, and the Securities
Exchange Act of 1934, as amended.
Since inception of the Share Repurchase Program
in August 2017, SuRo Capital has repurchased over 6.0 million
shares of its common stock for an aggregate purchase price of
approximately $39.3 million. This does not include repurchases
under various tender offers during this time period. The dollar
value of shares that may yet be purchased by SuRo Capital under the
Share Repurchase Program is approximately $20.7 million. The Share
Repurchase Program is authorized through October 31, 2024.
Conference Call and Webcast
Management will hold a conference call and
webcast for investors at 2:00 p.m. PT (5:00 p.m. ET) on May 8,
2024. The conference call access number for U.S. participants is
866-580-3963, and the conference call access number for
participants outside the U.S. is +1 786-697-3501. The conference ID
number for both access numbers is 6890583. Additionally, interested
parties can listen to a live webcast of the call from the "Investor
Relations" section of SuRo Capital’s website at www.surocap.com. An
archived replay of the webcast will also be available for 12 months
following the live presentation.
A replay of the conference call may be accessed
until 5:00 p.m. PT (8:00 p.m. ET) on May 15, 2024 by dialing
866-583-1035 (U.S.) or +44 (0) 20 3451 9993 (International) and
using conference ID number 6890583.
Forward-Looking Statements
Statements included herein, including statements
regarding SuRo Capital's beliefs, expectations, intentions, or
strategies for the future, may constitute "forward-looking
statements". SuRo Capital cautions you that forward-looking
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
or implied in these statements. All forward-looking statements
involve a number of risks and uncertainties, including the impact
of any market volatility that may be detrimental to our business,
our portfolio companies, our industry, and the global economy, that
could cause actual results to differ materially from the plans,
intentions, and expectations reflected in or suggested by the
forward-looking statements. Risk factors, cautionary statements,
and other conditions which could cause SuRo Capital's actual
results to differ from management's current expectations are
contained in SuRo Capital's filings with the Securities and
Exchange Commission. SuRo Capital undertakes no obligation to
update any forward-looking statement to reflect events or
circumstances that may arise after the date of this press
release.
About SuRo Capital Corp.
SuRo Capital Corp. (Nasdaq: SSSS) is a publicly
traded investment fund that seeks to invest in high-growth,
venture-backed private companies. The fund seeks to create a
portfolio of high-growth emerging private companies via a
repeatable and disciplined investment approach, as well as to
provide investors with access to such companies through its
publicly traded common stock. SuRo Capital is headquartered in New
York, NY and has offices in San Francisco, CA. Connect with the
company on X, LinkedIn, and at www.surocap.com.
ContactSuRo Capital Corp.(212)
931-6331IR@surocap.com
SURO CAPITAL CORP. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
ASSETS AND LIABILITIES (UNAUDITED)
| |
March 31, 2024 |
|
December 31, 2023 |
| ASSETS |
|
|
|
| Investments at fair
value: |
|
|
|
|
Non-controlled/non-affiliate investments (cost of $170,371,625 and
$160,994,161, respectively) |
$ |
140,167,986 |
|
|
$ |
147,167,535 |
|
| Non-controlled/affiliate
investments (cost of $32,733,009 and $32,775,940,
respectively) |
|
22,871,704 |
|
|
|
24,931,333 |
|
| Controlled investments (cost
of $18,771,097 and $18,771,097, respectively) |
|
11,975,881 |
|
|
|
11,982,381 |
|
|
Total Portfolio Investments |
|
175,015,571 |
|
|
|
184,081,249 |
|
| Investments in U.S. Treasury
bills (cost of $29,245,079 and $63,792,704, respectively) |
|
29,621,913 |
|
|
|
63,810,855 |
|
| Total Investments (cost of
$251,120,810 and $276,333,902, respectively) |
|
204,637,484 |
|
|
|
247,892,104 |
|
| Cash |
|
50,814,399 |
|
|
|
28,178,352 |
|
| Escrow proceeds
receivable |
|
236,303 |
|
|
|
309,293 |
|
| Interest and dividends
receivable |
|
137,657 |
|
|
|
132,607 |
|
| Deferred financing costs |
|
577,900 |
|
|
|
594,726 |
|
| Prepaid expenses and other
assets(1) |
|
467,149 |
|
|
|
494,602 |
|
|
Total Assets |
|
256,870,892 |
|
|
|
277,601,684 |
|
|
LIABILITIES |
|
|
|
| Accounts payable and accrued
expenses(1) |
|
1,270,583 |
|
|
|
346,308 |
|
| Dividends payable |
|
44,700 |
|
|
|
152,523 |
|
| 6.00% Notes due December 30,
2026(2) |
|
73,834,474 |
|
|
|
73,745,207 |
|
|
Total Liabilities |
|
75,149,757 |
|
|
|
74,244,038 |
|
| Net
Assets |
$ |
181,721,135 |
|
|
$ |
203,357,646 |
|
| NET
ASSETS |
|
|
|
|
Common stock, par value $0.01 per share (100,000,000 authorized;
25,353,284 and 25,445,805 issued and outstanding,
respectively) |
$ |
253,533 |
|
|
$ |
254,458 |
|
| Paid-in capital in excess of
par |
|
248,883,867 |
|
|
|
248,454,107 |
|
| Accumulated net investment
loss |
|
(7,527,013 |
) |
|
|
(4,304,111 |
) |
| Accumulated net realized loss
on investments, net of distributions |
|
(12,772,846 |
) |
|
|
(12,348,772 |
) |
| Accumulated net unrealized
appreciation/(depreciation) of investments |
|
(47,116,406 |
) |
|
|
(28,698,036 |
) |
|
Net Assets |
$ |
181,721,135 |
|
|
$ |
203,357,646 |
|
|
Net Asset Value Per Share |
$ |
7.17 |
|
|
$ |
7.99 |
|
__________________________________________________
|
(1) |
This balance includes a right of use asset and corresponding
operating lease liability, respectively. |
| (2) |
As of March 31, 2023, the 6.00%
Notes due December 30, 2026 (effective interest rate of 6.53%) had
a face value $75,000,000. As of December 31, 2022, the 6.00% Notes
due December 30, 2026 (effective interest rate of 6.53%) had a face
value $75,000,000. |
| |
|
SURO CAPITAL CORP. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)
| |
|
Three Months Ended March 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
| INVESTMENT
INCOME |
|
|
|
|
| Non-controlled/non-affiliate
investments: |
|
|
|
|
|
Interest income(1) |
|
$ |
242,007 |
|
|
$ |
49,475 |
|
|
Dividend income |
|
|
21,875 |
|
|
|
63,145 |
|
| Controlled investments: |
|
|
|
|
|
Interest income |
|
|
435,000 |
|
|
|
236,000 |
|
| Interest income from U.S.
Treasury bills |
|
|
829,209 |
|
|
|
950,462 |
|
|
Total Investment Income |
|
|
1,528,091 |
|
|
|
1,299,082 |
|
| OPERATING
EXPENSES |
|
|
|
|
| Compensation expense |
|
|
2,185,318 |
|
|
|
2,136,754 |
|
| Directors’ fees |
|
|
171,113 |
|
|
|
160,565 |
|
| Professional fees |
|
|
728,559 |
|
|
|
990,834 |
|
| Interest expense |
|
|
1,214,267 |
|
|
|
1,213,286 |
|
| Income tax expense |
|
|
2,100 |
|
|
|
529,780 |
|
| Other expenses |
|
|
449,636 |
|
|
|
489,628 |
|
|
Total Operating Expenses |
|
|
4,750,993 |
|
|
|
5,520,847 |
|
|
Net Investment Loss |
|
|
(3,222,902 |
) |
|
|
(4,221,765 |
) |
| Realized Gain/(Loss)
on Investments: |
|
|
|
|
| Non-controlled/non-affiliated
investments |
|
|
(484,141 |
) |
|
|
189,343 |
|
| Non-controlled/affiliate
investments |
|
|
60,067 |
|
|
|
— |
|
|
Net Realized Gain/(Loss) on Investments |
|
|
(424,074 |
) |
|
|
189,343 |
|
| Change in Unrealized
Appreciation/(Depreciation) of Investments: |
|
|
|
|
| Non-controlled/non-affiliated
investments |
|
|
(16,395,171 |
) |
|
|
(2,063,577 |
) |
| Non-controlled/affiliate
investments |
|
|
(2,016,699 |
) |
|
|
(1,320,364 |
) |
| Controlled investments |
|
|
(6,500 |
) |
|
|
12,032,872 |
|
|
Net Change in Unrealized Appreciation/(Depreciation) of
Investments |
|
|
(18,418,370 |
) |
|
|
8,648,931 |
|
|
Net Change in Net Assets Resulting from
Operations |
|
$ |
(22,065,346 |
) |
|
$ |
4,616,509 |
|
|
Net Change in Net Assets Resulting from Operations per
Common Share: |
|
|
|
|
|
Basic |
|
$ |
(0.87 |
) |
|
$ |
0.16 |
|
|
Diluted(2) |
|
$ |
(0.87 |
) |
|
$ |
0.16 |
|
| Weighted-Average
Common Shares Outstanding |
|
|
|
|
|
Basic |
|
|
25,393,490 |
|
|
|
28,378,529 |
|
|
Diluted(2) |
|
|
25,393,490 |
|
|
|
28,378,529 |
|
__________________________________________________
|
(1) |
Includes interest income earned on idle cash. |
| (2) |
For the three months ended March
31, 2024 and March 31, 2023, there were no potentially dilutive
securities outstanding. |
| |
|
SURO CAPITAL CORP. AND
SUBSIDIARIESFINANCIAL HIGHLIGHTS
(UNAUDITED)
| |
|
Three Months Ended March 31, |
|
|
|
|
2024 |
|
|
|
2023 |
|
| Per Basic Share
Data |
|
|
|
|
| Net asset value at beginning
of the year |
|
$ |
7.99 |
|
|
$ |
7.39 |
|
|
Net investment loss(1) |
|
|
(0.13 |
) |
|
|
(0.15 |
) |
|
Net realized gain/(loss) on investments(1) |
|
|
(0.02 |
) |
|
|
0.01 |
|
|
Net change in unrealized appreciation/(depreciation) of
investments(1) |
|
|
(0.73 |
) |
|
|
0.30 |
|
|
Stock-based compensation(1) |
|
|
0.06 |
|
|
|
0.04 |
|
| Net asset value at end of
period |
|
$ |
7.17 |
|
|
$ |
7.59 |
|
| Per share market value at end
of period |
|
$ |
4.55 |
|
|
$ |
3.62 |
|
| Total return based on market
value(2) |
|
|
15.48 |
% |
|
|
(4.74 |
)% |
| Total return based on net
asset value(2) |
|
|
(10.26 |
)% |
|
|
2.71 |
% |
| Shares outstanding at end of
period |
|
|
25,353,284 |
|
|
|
28,338,580 |
|
| Ratios/Supplemental
Data: |
|
|
|
|
| Net assets at end of
period |
|
$ |
181,721,135 |
|
|
$ |
215,043,069 |
|
| Average net assets |
|
$ |
202,519,594 |
|
|
$ |
209,347,362 |
|
| Ratio of net operating
expenses to average net assets(3) |
|
|
9.44 |
% |
|
|
10.70 |
% |
| Ratio of net investment loss
to average net assets(3) |
|
(6.40)% |
|
(8.18)% |
| Portfolio Turnover Ratio |
|
|
0.18 |
% |
|
|
1.24 |
% |
__________________________________________________
|
(1) |
Based on weighted-average number of shares outstanding for the
relevant period. |
| (2) |
Total return based on market
value is based upon the change in market price per share between
the opening and ending market values per share in the period,
adjusted for dividends and equity issuances. Total return based on
net asset value is based upon the change in net asset value per
share between the opening and ending net asset values per share in
the period, adjusted for dividends and equity issuances. |
| (3) |
Financial highlights for periods
of less than one year are annualized and the ratios of operating
expenses to average net assets and net investment loss to average
net assets are adjusted accordingly. Because the ratios are
calculated for the Company’s common stock taken as a whole, an
individual investor’s ratios may vary from these ratios. |
SuRo Capital (NASDAQ:SSSS)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
SuRo Capital (NASDAQ:SSSS)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
