Core Insights - Crescent Capital BDC (NASDAQ: CCAP) has seen its stock price increase by over 4.6% since the last coverage, resulting in a total return of over 7.4% [1] Company Overview - The focus of the analysis is on dividend investing as a means to achieve financial freedom, emphasizing its accessibility and potential for long-term wealth building [1] - The author has extensive experience in M&A and business valuation, which informs the analysis of CCAP and similar investments [1] Investment Strategy - The article highlights the importance of dividends in generating cash flow and building a solid financial foundation [1] - The author aims to share insights and experiences to make dividend investing more approachable for investors [1]

When it comes to measuring the success of BDCs, I believe that NAV growth and dividend consistency are two of the most important metrics. NAV growth indicates a healthy underlying strategy when it comes toFinancial analyst by day and a seasoned investor by passion, I've been involved in the world of investing for over 10 years and honed my skills in analyzing lucrative opportunities within the market.I specialize in uncovering strategies to utilize various investment vehicles - seeking out high quality divi ...

Crescent Capital BDC, Inc. Quarterly Earnings Presentation September 30, 2024 Disclaimer and Forward-Looking Statement 2 This presentation (the "Presentation") has been prepared by Crescent Capital BDC, Inc. (together with its consolidated subsidiaries, "CCAP," "Crescent BDC" or the "Company") and may be used for informational purposes only. This Presentation contains summaries of certain financial and statistical information about the Company and should be viewed in conjunction with the Company's most rece ...

Financial Data and Key Metrics Changes - Net investment income (NII) was reported at $0.64 per share, translating to an annualized NII return on equity of 12.6% [6] - Total investment income increased to $51.6 million, a 5% increase from $49.0 million in the prior quarter [28] - Net asset value (NAV) per share decreased by $0.10 to $20.20, primarily due to net unrealized marks [8] Business Line Data and Key Metrics Changes - The investment portfolio totaled approximately $1.6 billion at fair value, with 90% consisting of first-lien loans, unchanged from the prior quarter [9][10] - The weighted average yield of income-producing securities at cost decreased to 11.6% [22] - Non-accrual investments represented 1.7% of total debt investments at cost and 0.9% at fair value [14] Market Data and Key Metrics Changes - Deal activity in Q3 was driven by lower borrowing costs and strong economic conditions, with refinancings and recapitalizations making up almost 50% of overall volume [15] - The weighted average interest coverage of portfolio companies improved to 1.8 times, compared to 1.7 times in the previous two quarters [24] Company Strategy and Development Direction - The company continues to focus on non-cyclical industries and maintains a diversified portfolio across 20 broad industry categories [10] - Management expressed optimism about increased deal activity in 2025, driven by recent rate cuts and a favorable market reaction to the presidential election results [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted that while the market for M&A has been slow, they expect an acceleration in activity as sponsors seek to monetize investments [48] - The company remains confident in the strong performance of its portfolio and the ability to deliver attractive risk-adjusted returns to shareholders [40] Other Important Information - The company declared a supplemental dividend of $0.07 per share, alongside a regular dividend of $0.42 per share, resulting in an approximately 10% annualized dividend yield [7] - The debt-to-equity ratio improved from 1.18 times to 1.15 times, remaining within the target leverage range [34] Q&A Session Summary Question: Clarification on non-recurring income - Management acknowledged that approximately $3 million of non-recurring income should not be factored into future expectations [42][45] Question: Outlook for remaining First Eagle assets - Management indicated that the pace of monetization for the remaining First Eagle assets is expected to accelerate due to improved market conditions [48] Question: Expectations for 2025 activity levels - Management expressed optimism for increased activity in 2025 but noted that it may not reach the levels seen in 2021 due to different market conditions [56][57] Question: Future acquisition goals - Management stated that they are open to additional M&A opportunities but emphasized the importance of measured growth [62][66] Question: Explanation of supplemental dividend cap - Management explained that the supplemental dividend is capped based on unrealized changes in NAV, limiting it to $0.07 this quarter [69]

Crescent Capital BDC (CCAP) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.57 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.28%. A quarter ago, it was expected that this company would post earnings of $0.58 per share when it actually produced earnings of $0.59, delivering a surprise of 1.72%.Over the last four quarters, the comp ...

[Q3 2024 Earnings and Dividend Announcement](index=1&type=section&id=Crescent%20Capital%20BDC%2C%20Inc.%20Reports%20Third%20Quarter%202024%20Earnings%20Results) Crescent Capital BDC announced its Q3 2024 earnings, reporting specific per-share metrics and declaring both base and supplemental dividends [Earnings Summary](index=1&type=section&id=Earnings%20Summary) For the third quarter of 2024, Crescent Capital BDC reported a net investment income of $0.64 per share and a net income of $0.41 per share, with net asset value per share at $20.20 as of September 30, 2024 Key Earnings Metrics per Share | Metric | Value per Share | | :--- | :--- | | Net Investment Income | $0.64 | | Net Income | $0.41 | | Net Asset Value | $20.20 | [Dividend Declarations](index=1&type=section&id=Dividend%20Declarations) The Board of Directors declared a fourth-quarter 2024 base dividend of $0.42 per share and a third-quarter 2024 supplemental dividend of $0.07 per share Declared Dividends | Dividend Type | Quarter | Amount per Share | Record Date | Payment Date | | :--- | :--- | :--- | :--- | :--- | | Regular Cash Dividend | Q4 2024 | $0.42 | Dec 31, 2024 | Jan 15, 2025 | | Supplemental Cash Dividend | Q3 2024 | $0.07 | Nov 29, 2024 | Dec 16, 2024 | [Financial and Portfolio Overview](index=1&type=section&id=Financial%20and%20Portfolio%20Overview) This section provides a comprehensive overview of the company's financial performance, portfolio composition, and liquidity position [Selected Financial Highlights](index=1&type=section&id=Selected%20Financial%20Highlights) In Q3 2024, Crescent BDC's net investment income per share increased to $0.64, while net assets slightly decreased to $748.8 million and net asset value per share declined to $20.20 Selected Financial Highlights (Millions USD, except per share) | Selected Financials | Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | | Total net assets | $748.8 | $752.4 | $730.3 | | Net asset value per share | $20.20 | $20.30 | $19.70 | | Investment income | $51.6 | $48.9 | $48.2 | | Net investment income | $23.5 | $21.7 | $21.7 | | Net investment income per share | $0.64 | $0.59 | $0.59 | | Net increase (decrease) in net assets from operations | $15.3 | $20.4 | $22.6 | [Portfolio & Investment Activity](index=1&type=section&id=Portfolio%20%26%20Investment%20Activity) As of September 30, 2024, the company's portfolio was valued at $1.59 billion across 183 companies, with unitranche first lien loans comprising 64.4% - In Q3 2024, the company invested **$72.7 million** and had **$92.3 million** in exits and repayments, compared to **$119.3 million** in investments and **$73.4 million** in exits in Q2 2024[2](index=2&type=chunk) Portfolio Asset Composition (Millions USD) | Portfolio Asset Types | Fair Value (Sep 30, 2024) | Percentage (Sep 30, 2024) | Fair Value (Dec 31, 2023) | Percentage (Dec 31, 2023) | | :--- | :--- | :--- | :--- | :--- | | Senior secured first lien | $401.7M | 25.2% | $429.2M | 27.0% | | Unitranche first lien | $1,023.7M | 64.4% | $973.9M | 61.5% | | Senior secured second lien | $41.8M | 2.6% | $58.2M | 3.7% | | Equity & other | $59.2M | 3.7% | $50.1M | 3.2% | | **Total investments** | **$1,591.4M** | **100.0%** | **$1,582.1M** | **100.0%** | [Results of Operations](index=2&type=section&id=Results%20of%20Operations) For the third quarter of 2024, investment income rose to $51.6 million, while net expenses increased to $28.1 million, primarily due to higher weighted average debt outstanding Key Operational Metrics (Millions USD) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Investment Income | $51.6 | $48.2 | +$3.4M | | Net Expenses | $28.1 | $26.4 | +$1.7M | - The increase in investment income was attributed to a rise in one-time non-recurring income[4](index=4&type=chunk) - The increase in net expenses was primarily due to a higher weighted average debt outstanding[4](index=4&type=chunk) [Liquidity and Capital Resources](index=2&type=section&id=Liquidity%20and%20Capital%20Resources) As of September 30, 2024, the company maintained a solid liquidity position with $37.8 million in cash and $317.0 million available on its credit facilities Liquidity and Capital Metrics | Liquidity & Capital Metric | As of Sep 30, 2024 | | :--- | :--- | | Cash and cash equivalents | $37.8 million | | Undrawn credit capacity | $317.0 million | | Weighted average cost of debt | 6.59% | | Debt to equity ratio | 1.15x | [Financial Statements](index=3&type=section&id=Financial%20Statements) This section presents the company's consolidated financial statements, including assets, liabilities, and operational results [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of September 30, 2024, total assets were $1.645 billion, total liabilities were $896.2 million, and total net assets grew to $748.8 million Consolidated Balance Sheet (Thousands USD) | Balance Sheet | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Investments, at fair value | $1,591,433 | $1,582,075 | | Total assets | $1,645,049 | $1,627,379 | | Total liabilities | $896,242 | $884,785 | | Total net assets | $748,807 | $742,594 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For Q3 2024, total investment income was $51.6 million, resulting in a net increase in net assets from operations of $15.3 million, and $63.7 million for the nine months ended September 30, 2024 Consolidated Statement of Operations (Three Months Ended, Thousands USD) | Operations | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Total investment income | $51,633 | $48,152 | | Net expenses | $27,437 | $26,079 | | Net investment income | $23,541 | $21,723 | | Net realized and unrealized (losses) gains | ($8,217) | $975 | | **Net increase in net assets** | **$15,268** | **$22,621** | Consolidated Statement of Operations (Nine Months Ended, Thousands USD) | Operations | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Total investment income | $150,944 | $134,176 | | Net expenses | $80,930 | $73,497 | | Net investment income | $68,559 | $59,789 | | Net realized and unrealized (losses) | ($5,365) | ($7,540) | | **Net increase in net assets** | **$63,658** | **$52,979** | [Corporate Information and Disclaimers](index=2&type=section&id=Corporate%20Information%20and%20Disclaimers) This section provides details on the upcoming conference call, information about Crescent BDC and its manager, and important forward-looking statements [Conference Call Information](index=2&type=section&id=Conference%20Call) The company will host a conference call and webcast on November 12, 2024, at 12:00 p.m. Eastern Time to discuss its third-quarter financial results - A conference call to discuss Q3 2024 results is scheduled for Tuesday, November 12, 2024, at 12:00 p.m. ET, with access available via telephone or webcast[6](index=6&type=chunk)[7](index=7&type=chunk) [About Crescent BDC and Crescent Capital Group](index=6&type=section&id=About%20Crescent%20BDC%20and%20Crescent%20Capital%20Group) Crescent BDC is a business development company focused on providing capital to middle-market companies, externally managed by Crescent Capital Group, a global credit investment manager with $43 billion of assets under management - Crescent BDC's objective is to maximize total return through current income and capital appreciation by investing in middle-market companies[12](index=12&type=chunk) - The external manager, Crescent Capital Group, is a global credit investment manager with **$43 billion AUM**, specializing in below-investment-grade credit for over 30 years[13](index=13&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to various risks and uncertainties, with actual results potentially differing materially from those anticipated - The document includes a standard safe harbor statement, warning that forward-looking statements are not guarantees of future performance and are subject to risks such as economic conditions, competition, and geopolitical unrest[14](index=14&type=chunk)

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited consolidated financial statements for Crescent Capital BDC, Inc. as of September 30, 2024, including assets, operations, cash flows, and investment schedule with notes [Consolidated Statements of Assets and Liabilities](index=5&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets increased to $1.645 billion, with net assets growing to $748.8 million, raising NAV per share to $20.20 Consolidated Statements of Assets and Liabilities Highlights (in thousands) | Financial Metric | As of Sep 30, 2024 (Unaudited) | As of Dec 31, 2023 | | :--- | :--- | :--- | | Total Investments, at fair value | $1,591,433 | $1,582,075 | | **Total Assets** | **$1,645,049** | **$1,627,379** | | Total Debt (net) | $857,236 | $844,783 | | **Total Liabilities** | **$896,242** | **$884,785** | | **Total Net Assets** | **$748,807** | **$742,594** | | **Net Asset Value per share** | **$20.20** | **$20.04** | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 2024 total investment income was $51.6 million, yielding $23.5 million ($0.64 per share) net investment income, despite unrealized losses Key Operational Data (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Investment Income | $51,632 | $48,152 | $150,945 | $134,176 | | Net Expenses | $27,437 | $26,079 | $80,930 | $73,497 | | **Net Investment Income** | **$23,540** | **$21,723** | **$68,560** | **$59,789** | | Net Realized & Unrealized Gains (Losses) | ($8,216) | $975 | ($5,366) | ($7,540) | | **Net Increase (Decrease) in Net Assets** | **$15,268** | **$22,621** | **$63,658** | **$52,979** | | Net Investment Income Per Share | $0.64 | $0.59 | $1.85 | $1.68 | | Net Increase (Decrease) in Net Assets Per Share | $0.41 | $0.61 | $1.72 | $1.49 | [Consolidated Statements of Changes in Net Assets](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased by $6.2 million to $748.8 million, driven by net investment income, partially offset by distributions and investment losses Reconciliation of Net Assets for the Nine Months Ended Sep 30, 2024 (in thousands) | Description | Amount | | :--- | :--- | | **Balance at December 31, 2023** | **$742,594** | | Net Investment Income | $68,560 | | Net Realized Loss on Investments | ($463) | | Net Change in Unrealized Depreciation | ($4,903) | | Distributions from Distributable Earnings | ($57,445) | | **Total Increase in Net Assets** | **$6,213** | | **Balance at September 30, 2024** | **$748,807** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities provided $61.8 million in cash, while financing used $48.4 million, leading to a $13.4 million net increase in cash Cash Flow Summary for the Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $61,796 | $57,696 | | Net Cash from Financing Activities | ($48,438) | ($52,000) | | **Net Increase in Cash** | **$13,367** | **$5,688** | | Cash, beginning of period | $24,470 | $17,067 | | **Cash, end of period** | **$37,837** | **$22,755** | [Consolidated Schedule of Investments](index=10&type=section&id=Consolidated%20Schedule%20of%20Investments) The investment portfolio totaled **$1.591 billion** across 183 companies, primarily debt (96.3%), concentrated in senior secured and unitranche first lien loans - The total investment portfolio at fair value was **$1,591.4 million** as of September 30, 2024, compared to $1,582.1 million as of December 31, 2023[232](index=232&type=chunk) Portfolio Composition by Investment Type (at Fair Value) | Investment Type | Fair Value (in millions) | Percentage of Portfolio | | :--- | :--- | :--- | | Senior Secured First Lien | $401.7 | 25.2% | | Unitranche First Lien | $1,023.7 | 64.4% | | Senior Secured Second Lien | $41.8 | 2.6% | | Equity & Other | $99.7 | 6.2% | | Unsecured Debt | $18.7 | 1.2% | | **Total** | **$1,591.4** | **100.0%** | Top 5 Industry Concentrations (at Fair Value) | Industry | Fair Value (in millions) | Percentage of Portfolio | | :--- | :--- | :--- | | Health Care Equipment & Services | $442.1 | 27.8% | | Software & Services | $343.1 | 21.6% | | Commercial & Professional Services | $208.7 | 13.0% | | Consumer Services | $154.1 | 9.7% | | Diversified Financials | $94.0 | 5.9% | [Notes to Consolidated Financial Statements](index=69&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, BDC/RIC status, investment valuation, debt facilities, unfunded commitments, dividends, and subsequent events - The Company is an externally managed BDC that has elected to be treated as a RIC for U.S. federal income tax purposes, aiming to maximize total return through debt and related equity investments in private U.S. middle-market companies[99](index=99&type=chunk)[100](index=100&type=chunk) - As of September 30, 2024, the company had fourteen investments across five portfolio companies on non-accrual status, representing **1.7% of total debt investments at cost** and **0.9% at fair value**[125](index=125&type=chunk) - The Board of Directors declared a regular Q4 2024 cash dividend of **$0.42 per share** and a supplemental cash dividend of **$0.07 per share** subsequent to the quarter's end[213](index=213&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=100&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2024 financial performance, with net investment income rising to $23.5 million, portfolio fair value at $1.59 billion, and strong liquidity Results of Operations Highlights (in millions) | Metric | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total investment income | $51.6 | $48.2 | $150.9 | $134.2 | | Total net expenses | $28.1 | $26.4 | $82.4 | $74.4 | | **Net investment income** | **$23.5** | **$21.8** | **$68.5** | **$59.8** | - As of September 30, 2024, the company had **$37.8 million in cash and cash equivalents** and **$317.0 million of undrawn capacity** on its credit facilities, exceeding its **$200.1 million in unfunded commitments**[258](index=258&type=chunk)[277](index=277&type=chunk) - The asset coverage ratio was **186%** as of September 30, 2024, compliant with the **150% minimum requirement** for BDCs[276](index=276&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=106&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces valuation, interest rate, and currency risks; a 100 bps rate hike could increase net interest income by **$9.8 million** annually - The company's primary market risks are valuation risk for illiquid private securities, interest rate risk due to its floating-rate assets and liabilities, and currency risk from foreign-denominated investments[280](index=280&type=chunk) Annualized Impact of Hypothetical Interest Rate Changes (in millions) | Basis Point Change | Interest Income | Interest Expense | Net Interest Income | | :--- | :--- | :--- | :--- | | Up 100 basis points | $15.5 | $5.7 | $9.8 | | Down 100 basis points | ($15.5) | ($5.7) | ($9.8) | [Item 4. Controls and Procedures](index=107&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal control - The principal executive officer and principal financial officer concluded that as of September 30, 2024, the company's disclosure controls and procedures were effective[286](index=286&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended September 30, 2024[287](index=287&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=107&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to materially affect the company's financial condition or results of operations - The company does not expect any ongoing legal proceedings to materially affect its business, financial condition, or results of operations[288](index=288&type=chunk) [Item 1A. Risk Factors](index=107&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for FY2023 - The report refers to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2023, indicating no material updates in this filing[289](index=289&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=108&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Sun Life completed its **$20.0 million** share purchase program, acquiring 382,542 shares for **$7.4 million** during the quarter - Sun Life completed its **$20.0 million** share purchase program, buying **382,542 shares** for **$7.4 million** during the quarter ended September 30, 2024[291](index=291&type=chunk) [Item 3. Defaults Upon Senior Securities](index=108&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None[292](index=292&type=chunk) [Item 4. Mine Safety Disclosures](index=108&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[292](index=292&type=chunk) [Item 5. Other Information](index=108&type=section&id=Item%205.%20Other%20Information) No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement during the nine months ended September 30, 2024 - No director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement during the nine months ended September 30, 2024[293](index=293&type=chunk) [Item 6. Exhibits](index=109&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the quarterly report, including CEO and CFO Sarbanes-Oxley certifications - The report includes a list of all exhibits filed, such as merger agreements, bylaws, advisory agreements, debt agreements, and Sarbanes-Oxley certifications[295](index=295&type=chunk)[296](index=296&type=chunk)

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Crescent Capital BDC (CCAP) . This company, which is in the Zacks Financial - SBIC & Commercial Industry industry, shows potential for another earnings beat. This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was ...

If you're an income-oriented investor, now may be a good time to start checking out the BDC ( BIZD ) sector if you haven't already. Since the start of interest rate hikes in 2022, many have seen their share Contributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due diligenc ...

Welcome to Cash Flow Venue, where dividends do the heavy lifting! Blending my financial chops with the timeless wisdom of value investing (and love for steady income), I've built a rock-solid pillar in my financial foundation through dividend investing. I believe it's one of the most accessible paths to achieving financial freedom, and I'm excited to share my insights with you. I'm a finance professional with deep experience in M&A and business valuation. What does that mean in practice? I've evaluated coun ...