Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The service offers a free two-week trial for potential investors to explore exclusive income-focused portfolios [1] Group 2 - Bargain hunting for income stocks is highlighted as a rewarding strategy, though it comes with inherent risks [2] - Investors are encouraged to assess whether market headwinds are temporary or indicative of structural flaws in the stocks [2] Group 3 - The article emphasizes the importance of due diligence and personal judgment in making investment decisions [4] - It clarifies that past performance does not guarantee future results, and no specific investment recommendations are provided [5]

Group 1 - Crescent Capital BDC, Inc. (CCAP) held its Q1 2025 earnings conference call on May 15, 2025, to discuss financial results and company performance [1][3] - The earnings press release for Q1 2025 was issued after market close on the previous day, along with a presentation available on the company's investor relations website [3] - The call featured key company executives including CEO Jason Breaux, President Henry Chung, and CFO Gerhard Lombard [1][3] Group 2 - The company emphasized the importance of reviewing the earnings presentation in conjunction with the Form 10Q filed with the SEC [3] - The call was recorded for replay purposes, indicating the company's commitment to transparency and investor communication [2][3]

Financial Data and Key Metrics Changes - The company reported net investment income (NII) of $16.6 million or $0.45 per share for Q1 2025, down from $20.5 million or $0.55 per share in Q4 2024, primarily due to lower base rates, the roll-off of one-time items, and reduced dividend income from the Logan JV [5][23][24] - The increase in loans on non-accrual rose to 3.5% of debt investments at cost and fair value, with four new names added, representing less than 1.2% of the total portfolio at fair value [6][12] Business Line Data and Key Metrics Changes - Gross deployment in Q1 totaled $105 million, with 98% in first lien investments, compared to approximately $78 million in exits, resulting in a net deployment of approximately $27 million [17] - The weighted average yield of income-producing securities at cost decreased by 50 basis points quarter over quarter to 10.4% [20] Market Data and Key Metrics Changes - The company noted a slowdown in M&A activity due to tariff announcements, leading to a backlog of deal activity [8] - The overall direct material exposure of the portfolio to tariffs is modest at 4%, with a focus on service businesses with low material costs [18] Company Strategy and Development Direction - The company continues to focus on first lien loans, which represent 91% of the portfolio at fair value, and aims to invest in non-cyclical industries [11] - The management emphasized a disciplined credit underwriting approach and capital preservation, particularly in light of market volatility [30] Management's Comments on Operating Environment and Future Outlook - Management expressed that the current earnings reflect a near-term baseline, with potential tailwinds from asset-based facility repricing and rightsizing completed at the beginning of the quarter [6][7] - The company remains optimistic about its ability to weather potential volatility due to its diversified portfolio and strong relationships with private equity sponsors [20] Other Important Information - The company declared a regular dividend of $0.42 per share for Q2 2025, along with a special dividend related to undistributed taxable income [12][29] - The stockholders' equity was reported at $727 million, resulting in a net asset value per share of $19.62 [26] Q&A Session Summary Question: Regarding the new accruals this quarter, specifically New Era of Technology - Management clarified that the mark reflects the latest view on earnings outlook and that the company has not yet restructured [34][36] Question: What is Crescent's approach to resolving non-accrual situations? - Management stated that the primary goal is to preserve capital, and they consider various options including restructuring or selling the company [42][44] Question: Can you explain the significant decline in the Logan dividend? - Management explained that the decline was due to timing mismatches in cash distributions and the impact of overcollateralization tests within the CLO structure [50][56] Question: What percentage of the portfolio consists of Crescent-led deals? - Management indicated that about 8% of the total fair value consists of acquired assets, while 92% are loans originated by Crescent [46] Question: What is the sentiment towards the overall market and outlook for spreads? - Management noted significant inflows into non-traded BDCs, which are putting pressure on spreads, but they remain selective in their investment approach [78][82]

Financial Data and Key Metrics Changes - The company reported net investment income (NII) of $16.6 million or $0.45 per share for Q1 2025, down from $20.5 million or $0.55 per share in Q4 2024, primarily due to lower base rates, the roll-off of one-time items, and reduced dividend income from the Logan JV [5][23][24] - The weighted average yield of income-producing securities at cost decreased by 50 basis points quarter over quarter to 10.4% [20] - GAAP earnings per share for Q1 2025 was $0.11, with stockholders' equity at $727 million, resulting in a net asset value (NAV) per share of $19.62 [26] Business Line Data and Key Metrics Changes - Gross deployment in Q1 totaled $105 million, with 98% in first lien investments, compared to approximately $78 million in exits, resulting in a net deployment of approximately $27 million [16][17] - The investment portfolio consists primarily of first lien loans, representing 91% of the portfolio at fair value, with a focus on non-cyclical industries [11] Market Data and Key Metrics Changes - The company noted a slowdown in M&A activity due to tariff announcements, leading to a wait-and-see approach from sponsors [7] - The overall direct material exposure of the portfolio to tariffs is modest at 4%, with most businesses serving domestic markets [18] Company Strategy and Development Direction - The company emphasizes a disciplined credit underwriting approach, capital preservation, and strong free cash flow generation to navigate market volatility [30] - The focus remains on high-quality assets and maintaining a stable NAV rather than chasing yield [82] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the market, noting that while there are attractive investment opportunities, the recent tariff announcements have created uncertainty [8][78] - The company anticipates potential near-term tailwinds from asset-based facility repricing and rightsizing completed at the beginning of the quarter [6] Other Important Information - The company declared a regular dividend of $0.42 per share for Q2 2025, along with a special dividend related to undistributed taxable income [12][29] - The weighted average loan-to-value across investments is 39%, indicating a conservative approach to leverage [11] Q&A Session Summary Question: Regarding the new accruals this quarter, does it reflect the restructuring recently announced for that company? - Management clarified that the company has not yet restructured and that the mark reflects the latest view on earnings outlook [34][37] Question: What is Crescent's overall approach to working toward a resolution for non-accruals? - The company prioritizes capital preservation and may consider various options, including restructuring or selling the company, depending on the situation [42][43] Question: How much of the portfolio consists of Crescent-led or originated deals? - Approximately 8% of the total fair value consists of acquired assets, while 92% are loans originated by Crescent [45] Question: Can you explain the significant sequential decline in the Logan dividend? - Management explained that the decline was due to timing mismatches in cash flows and the nature of the equity tranche, which can be volatile during the deleveraging period [48][54] Question: Were there any warning signs for the new non-accruals? - Management indicated that the non-accruals were previously on the watch list, and developments at the respective borrowers warranted the classification [59]

Earnings Performance - Crescent Capital BDC reported quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.52 per share, and down from $0.63 per share a year ago, representing an earnings surprise of -13.46% [1] - The company posted revenues of $42.13 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 5.83%, and down from $50.36 million year-over-year [2] Market Performance - Crescent Capital BDC shares have lost about 12.8% since the beginning of the year, while the S&P 500 has gained 0.1% [3] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.51 on revenues of $44.31 million, and for the current fiscal year, it is $2.06 on revenues of $176.89 million [7] - The estimate revisions trend for Crescent Capital BDC is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Financial - SBIC & Commercial Industry, to which Crescent Capital BDC belongs, is currently in the bottom 20% of the Zacks industry rankings, suggesting potential challenges ahead [8]

Financial Performance - Net investment income per share for Q1 2025 was $045, compared to $055 for the prior quarter[19] - Net realized and unrealized losses on investments per share for Q1 2025 were ($034), compared to ($028) for the prior quarter[19] - Net income per share for Q1 2025 was $011, compared to $027 for the prior quarter[19] - NAV per share as of March 31, 2025, was $1962[19] Portfolio Composition - Total portfolio investments were valued at $1621 million as of March 31, 2025[11,19] - 91% of the portfolio comprised of senior secured first lien and unitranche first lien investments by fair value[19,35] - The portfolio consists of 191 portfolio companies across 20 industries[19,35] - Floating rate investments constitute 972% of the portfolio[22] Capital Structure and Liquidity - The company has a strong liquidity profile with $305 million in cash and cash equivalents and restricted cash[19] - Undrawn debt capacity was $3100 million as of March 31, 2025[19] - Total debt outstanding was $912 million with a weighted average interest rate of 636%[21,61] - Debt-to-equity ratio was 125x[11,21]

Core Viewpoint - Crescent Capital BDC, Inc. reported a decrease in net investment income and net asset value for the quarter ended March 31, 2025, indicating potential challenges in its financial performance compared to previous periods [1][3][6]. Financial Performance - Net investment income per share was $0.45 for Q1 2025, down from $0.55 in Q4 2024 and $0.63 in Q1 2024 [3][6]. - Net income per share was reported at $0.11 for Q1 2025, a decrease from $0.27 in Q4 2024 and $0.76 in Q1 2024 [3][6]. - Total investment income decreased to $42.1 million in Q1 2025 from $46.4 million in Q4 2024 [6][7]. - The net asset value (NAV) per share was $19.62 as of March 31, 2025, down from $19.98 at the end of 2024 [1][3]. Dividend Declarations - The Board declared a regular cash dividend of $0.42 per share for Q2 2025, payable on July 15, 2025 [2]. - A special dividend of $0.05 per share will be paid on June 13, 2025, as part of three previously announced special dividends [2]. Investment Activity - As of March 31, 2025, the company had investments in 191 portfolio companies with a fair value of $1,620.7 million, an increase from $1,598.9 million as of December 31, 2024 [4][5]. - The company invested $104.7 million across 10 new portfolio companies during Q1 2025, compared to $127.1 million across 14 new companies in Q4 2024 [5]. Portfolio Composition - The portfolio's fair value included $400.3 million in senior secured first lien investments (24.8% of total) and $1,048.9 million in unitranche first lien investments (64.7% of total) as of March 31, 2025 [4][5]. Liquidity and Capital Resources - As of March 31, 2025, the company had $30.5 million in cash and cash equivalents and $310.0 million of undrawn capacity on its credit facilities [8]. - The debt to equity ratio was reported at 1.25x as of March 31, 2025 [8].

Financial Performance - Crescent Capital BDC reported net investment income of $0.45 per share and net income of $0.11 per share for Q1 2025, compared to $0.55 and $0.27 per share in Q4 2024, respectively[2][4]. - Investment income decreased to $42.1 million in Q1 2025 from $46.4 million in Q4 2024, primarily due to a decline in interest income[6]. - Total investment income for Q1 2025 was $42,129 million, a decrease of 16.4% from $50,361 million in Q1 2024[15]. - Net investment income for Q1 2025 was $16,621 million, down 28.7% from $23,317 million in Q1 2024[15]. - The net increase in net assets resulting from operations was $3,904 million for Q1 2025, significantly lower than $28,005 million in Q1 2024[15]. - Net investment income per share for Q1 2025 was $0.45, a decrease of 28.6% from $0.63 in Q1 2024[15]. - Total expenses for Q1 2025 were $25,059 million, down 6.3% from $26,752 million in Q1 2024[15]. Investment Activity - Total investments at fair value increased to $1,620.7 million as of March 31, 2025, from $1,598.9 million as of December 31, 2024, with investments in 191 portfolio companies[4][5]. - Crescent Capital BDC invested $104.7 million across 10 new portfolio companies in Q1 2025, compared to $127.1 million across 14 new companies in Q4 2024[5]. - The net change in unrealized losses was $(6.2) million for Q1 2025, compared to $(7.3) million in Q4 2024[4]. - Net realized and unrealized losses on investments totaled $12,717 million in Q1 2025, compared to gains of $4,349 million in Q1 2024[15]. Income and Yield - The weighted average yield on income-producing securities decreased to 10.4% in Q1 2025 from 10.9% in Q4 2024[4]. - Interest income from non-controlled non-affiliated investments decreased to $36,978 million in Q1 2025 from $43,564 million in Q1 2024, a decline of 15.1%[15]. Dividends and Cash Position - The company declared a second quarter 2025 regular cash dividend of $0.42 per share, consistent with the previous quarter[3]. - Cash and cash equivalents, along with restricted cash, totaled $30.5 million as of March 31, 2025[8]. Debt and Equity - The company's debt to equity ratio was 1.25x as of March 31, 2025, with total liabilities of $939.4 million[8][13]. - The weighted average shares outstanding remained constant at 37,061,547 for both Q1 2025 and Q1 2024[15]. Company Overview - Crescent BDC is focused on providing capital solutions to middle market companies with strong growth prospects[16]. - Crescent BDC has $46 billion in assets under management, emphasizing its significant market presence[17].

Investment Performance - As of March 31, 2025, the total investments at fair value amounted to $1,620.7 million, an increase from $1,598.9 million as of December 31, 2024[339]. - The company made new investments totaling $104.7 million for the three months ended March 31, 2025, compared to $73.9 million for the same period in 2024, representing an increase of 41.0%[340]. - The number of portfolio companies increased to 191 as of March 31, 2025, up from 185 as of December 31, 2024[340]. - The company reported a net increase in the portfolio of $26.7 million for the three months ended March 31, 2025, compared to a net decrease of $24.5 million for the same period in 2024[340]. Debt and Financing - The percentage of debt bearing a floating rate (at fair value) was 97.2% as of March 31, 2025, slightly down from 97.3% as of December 31, 2024[340]. - Total debt as of March 31, 2025, is $1,221.6 million, with a carrying amount of $911.6 million[367]. - The combined weighted average interest rate for borrowings was 6.49% for the three months ended March 31, 2025, down from 6.97% in the same period of 2024[369]. - The weighted average outstanding balance of borrowings was $902.4 million for the three months ended March 31, 2025, compared to $858.6 million in 2024[384]. - The interest expense for borrowings was $13.7 million for the three months ended March 31, 2025, down from $14.7 million in 2024[384]. Income and Expenses - Total investment income decreased from $50.4 million in Q1 2024 to $42.1 million in Q1 2025, primarily due to a decline in benchmark rates[348][349]. - Net investment income for Q1 2025 was $16.6 million, down from $23.4 million in Q1 2024, reflecting lower investment income earned[360]. - Total net expenses, including taxes, decreased from $27.0 million in Q1 2024 to $25.5 million in Q1 2025[348]. - The company reported net realized and unrealized losses of $12.7 million in Q1 2025, compared to gains of $4.3 million in Q1 2024[361]. - Dividend income fell from $3.3 million in Q1 2024 to $1.5 million in Q1 2025, attributed to lower income from an investment[350]. Compliance and Regulations - The company is required to invest at least 70% of its assets in qualifying assets as per the 1940 Act, ensuring compliance with regulatory requirements[327]. - The use of leverage is permitted to maintain an asset coverage ratio of at least 150% after borrowing, which could impact returns to stockholders[337]. - The company was in compliance with asset coverage requirements and financial covenants as of March 31, 2025[366]. - The asset coverage ratio as of March 31, 2025, was 179%, compared to 183% as of December 31, 2024[386]. Cash and Liquidity - As of March 31, 2025, the company had $30.5 million in cash and cash equivalents and $310.0 million of undrawn capacity on credit facilities[365]. - The company expects to generate additional liquidity from future offerings of securities and cash flows from operations[364]. - Unfunded commitments to provide funds to portfolio companies totaled $212.4 million as of March 31, 2025, slightly down from $212.5 million at the end of 2024[387]. Interest Rate and Currency Risk - The annualized impact of a 100 basis point increase in interest rates would result in a net interest income of $9.6 million, while a 100 basis point decrease would lead to a net interest income loss of $9.6 million[394]. - The company may utilize hedging instruments such as interest rate swaps, futures, options, and forward contracts to manage interest rate fluctuations[398]. - The company regularly assesses its exposure to interest rate risk by comparing interest rate-sensitive assets to liabilities[392]. - The analysis of interest rate sensitivity does not account for changes in credit market conditions or the composition of the asset portfolio, which may affect net income[397]. - The company may employ hedging techniques to minimize currency risk, but effectiveness cannot be guaranteed[399]. - Interest rate-sensitive assets and liabilities are monitored on an ongoing basis to determine the necessity of hedging transactions[392]. - The company acknowledges that future hedging transactions may limit participation in benefits from lower interest rates[398].

LOS ANGELES, April 22, 2025 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (“Crescent BDC”) (NASDAQ: CCAP) today announced it will release its financial results for the first quarter ended March 31, 2025 on Wednesday, May 14, 2025 after market close. Crescent BDC invites all interested persons to attend its webcast/conference call on Thursday, May 15, 2025 at 12:00 p.m. Eastern Time to discuss its first quarter ended March 31, 2025 financial results. Conference Call Information: The conference call will be ...