Call Scheduled for 11:00 am ET on Friday, May 9, 2025NEW YORK, April 03, 2025 (GLOBE NEWSWIRE) -- Logan Ridge Finance Corporation (Nasdaq: LRFC) (“LRFC,” “Logan Ridge” or the “Company”) to release its financial results for the first quarter ended March 31, 2025, on Thursday, May 8, 2025, after market close. The Company will host a conference call on Friday, May 9, 2025, at 11:00 a.m. ET to discuss these results. By Phone: To access the call, please dial (646) 307-1963 approximately 10 minutes prior to the s ...

Financial Data and Key Metrics Changes - In 2024, Logan Ridge achieved the highest total investment income and net investment income in its history, amounting to $20.9 million and $4.2 million respectively, with a net investment income per share of $1.56 [6] - For Q4 2024, the company generated $5.4 million in investment income, an increase of $0.3 million from Q3 2024 [18] - Net investment income for Q4 was $1.5 million or $0.56 per share, up by $0.5 million or $0.19 per share from the previous quarter [20] - The net asset value as of December 31, 2024, was $85.1 million, a decrease of $1.2 million or 1.4% from the prior quarter [20] Business Line Data and Key Metrics Changes - The fair value of Logan's portfolio as of December 31, 2024, was approximately $172.3 million, with exposure to 59 portfolio companies, compared to $75.6 million with the same number of companies in the prior quarter [13] - The debt investment portfolio represented 83.3% of the total portfolio at fair value, with a weighted average annualized yield of approximately 10.7% [15] - The equity portfolio accounted for 13.4% and 13.8% of the portfolio on a cost and fair value basis respectively [16] Market Data and Key Metrics Changes - The company ended 2024 with no new non-accruals during Q4, maintaining stability in its investment portfolio [8] - As of December 31, 2024, four debt investments across three portfolio companies were on non-accrual status, with an aggregate amortized cost of $17.2 million and fair value of $7.9 million [16] Company Strategy and Development Direction - The company is focused on rotating out of its legacy equity portfolio, which has been a central part of its turnaround strategy [7] - The merger with Portman Ridge Finance Corporation is expected to provide greater scale, improved operating efficiencies, and increased trading volume, creating incremental value for shareholders [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in remaining active in the market with a healthy deployment pipeline and a disciplined investment strategy [11] - The board approved a dividend of $0.36 per share for Q4 2024, remaining flat compared to the prior quarter, reflecting strong financial performance [11] Other Important Information - The company successfully amended and extended its revolving credit facility with KeyBanc, reducing financing costs and increasing financial flexibility [8] - As of December 31, 2024, the company had $15 million in cash and cash equivalents, along with $26.2 million of unused borrowing capacity available for new investments [21] Q&A Session Summary Question: Will the Logan portfolio be subsumed into Portman Ridge or will there be further reduction in equity exposure? - Management indicated that the merger will be a straightforward blending of portfolios, with a continued focus on reducing equity exposure [26][28] Question: Will there be significant overlap in board members post-merger? - All Logan board members will overlap with Portman, effectively eliminating the need for dual director duties [33] Question: Is there consideration for board member compensation to be purely in stock? - Management noted that there has been no discussion on this matter, and there are regulatory constraints that may prevent such compensation [35][36]

Q4 and Full Year 2024 Earnings Presentation LRFCTM March 14, 2025 Important Information Forward-looking statements relate to future events or our future financial performance and include, but are not limited to, projected financial performance, expected development of the business, plans and expectations about future investments, our contractual arrangements and relationships with third parties, the ability of our portfolio companies to achieve their objectives, the ability of the Company's investment advis ...

Investment Income - Total investment income for Q4 2024 was $5.4 million, up from $5.1 million in Q3 2024 and $4.4 million in Q4 2023[6] - Net investment income for Q4 2024 increased to $1.5 million, or $0.56 per share, compared to $1.0 million, or $0.37 per share in Q3 2024, and $0.6 million, or $0.22 per share in Q4 2023[6] - Total investment income for the full year 2024 was $20.9 million, an increase of $0.7 million from $20.2 million in 2023[15] - Net investment income for the full year 2024 was $4.2 million, or $1.56 per share, compared to $3.8 million, or $1.43 per share in 2023[15] - Total investment income for the year ended December 31, 2024, was $20,916,000, an increase of 3.7% compared to $20,177,000 in 2023[33] - Net investment income rose to $4,180,000 in 2024, compared to $3,847,000 in 2023, marking an increase of 8.7%[33] - Interest income from non-control/non-affiliate investments was $17,186,000 in 2024, down from $18,536,000 in 2023, a decrease of 7.3%[33] - The company experienced a net realized gain on investments of $8,545,000 in 2024, compared to a loss of $16,393,000 in 2023, indicating a significant recovery in investment performance[33] Asset and Liability Management - Net asset value as of December 31, 2024, was $32.04 per share, down from $32.31 per share as of September 30, 2024, and $33.34 per share as of December 31, 2023[6] - As of December 31, 2024, total assets decreased to $192,669,000 from $197,088,000 in 2023, representing a decline of approximately 2.1%[31] - Total liabilities slightly decreased to $107,570,000 in 2024 from $107,913,000 in 2023, a reduction of about 0.3%[31] Shareholder Returns - Total stockholder distributions for 2024 amounted to $1.34 per share, compared to $0.96 per share in 2023[7] - The company approved a dividend of $0.36 per share for Q1 2025, representing a 13% increase from the $0.32 per share distributed in Q1 2024[11] Investment Activity - The company made approximately $38.3 million in investments and had $55.0 million in repayments and sales of investments for the full year 2024, resulting in net repayments of approximately $16.7 million[15] - The company exited its equity investment in GA Communications, Inc., further reducing its non-yielding equity portfolio[3] Strategic Initiatives - A merger agreement with Portman Ridge Finance Corporation aims to enhance shareholder value through greater scale and improved operational efficiencies[10] - The company plans to hold a conference call on March 14, 2025, to discuss the fourth quarter and full year 2024 financial results[19] Operational Performance - The company reported a net decrease in net assets resulting from operations of $29,000 for the year ended December 31, 2024, compared to a loss of $2,482,000 in 2023[33] - The company’s cash and cash equivalents increased significantly to $15,015,000 in 2024 from $3,893,000 in 2023, an increase of approximately 285.5%[31]

Financial Performance - The company reported a net income of $74.25 million from its IPO, selling 4,000,000 shares at $20.00 per share[19]. - The company is currently operating in a period of capital markets disruption and economic uncertainty, which may affect its business operations[29]. - The weighted average annualized cash yield on the company's debt portfolio was 9.6% as of December 31, 2024[47]. - The company expects to generate returns primarily from cash interest collected on debt investments, with additional returns from equity components such as warrants[44]. - The company may experience net operating losses if expenses exceed gross taxable income, but cannot carry forward these losses for tax purposes[135]. Investment Strategy - The company aims to generate current income and capital appreciation through debt and equity investments in lower middle-market and traditional middle-market companies[17]. - The investment strategy includes a focus on established companies with positive cash flow and experienced management teams[43]. - The company targets investments in private companies with trailing twelve-month EBITDA between $5 million and $50 million[31]. - The company has a concentration of investments in the healthcare industry, which may expose it to significant losses if that industry experiences a downturn[29]. - The company utilizes a disciplined investment portfolio monitoring and risk management process emphasizing strict underwriting standards[41]. Management and Governance - The company has experienced changes in its executive leadership, with a new CFO appointed effective April 1, 2024[25]. - The company is externally managed and relies on its investment adviser for managing and supporting its investment process[29]. - The investment committee is comprised of five members and meets regularly to review investment opportunities[50]. - The Investment Advisory Agreement was renewed for one year effective July 1, 2024, and will remain in effect until July 1, 2025[63]. - The Investment Adviser is entitled to indemnification for damages arising from the rendering of services under the Investment Advisory Agreement[64]. Fees and Incentives - The base management fee is calculated at an annual rate of 1.75% of gross assets, payable quarterly in arrears[66]. - The incentive fee consists of two parts, with the first part based on pre-incentive fee net investment income exceeding a hurdle of 2.0% per quarter[67]. - The second part of the incentive fee is 20.0% of realized capital gains on a cumulative basis, starting from December 31, 2021[70]. - The prior base management fee was set at an annual rate of 1.75% of gross assets, payable quarterly in arrears[89]. - No incentive fee is payable if pre-incentive fee net investment income does not exceed a hurdle of 2.0%, with a catch-up provision for income exceeding 2.5%[93]. Compliance and Regulatory Matters - The company has failed to qualify as a regulated investment company (RIC) for the fiscal year ended December 31, 2022, due to not meeting the income source requirement[16]. - To qualify as a RIC, the Company must distribute at least 90% of its investment company taxable income to stockholders[125]. - The Company may incur a 4% excise tax on undistributed income unless it meets specific distribution requirements[127]. - The company must maintain an asset coverage ratio of at least 150% for senior securities, as per the 1940 Act[145]. - The SEC has granted an exemptive order allowing the company to co-invest with affiliates under certain conditions[146]. Market and Economic Risks - The company is subject to risks related to geopolitical instability, interest rate volatility, and economic downturns that could impair its portfolio companies' ability to operate[14]. - The company’s net investment income is sensitive to interest rate changes, with potential impacts on net income outlined for various basis point changes[569]. - Changes in interest rates may affect both the cost of funding and interest income from portfolio investments[560]. - The company is subject to financial market risks, including valuation risk and interest rate risk[560]. - The company did not engage in hedging activities for the year ended December 31, 2024[563]. Valuation and Asset Management - The net asset value is determined quarterly by subtracting total liabilities from the fair value of gross assets, consistent with U.S. GAAP[107]. - The Company utilizes a multi-step valuation process for its investments, considering inputs from independent third-party valuation firms and various valuation methods[112]. - Fair value determinations may fluctuate significantly due to the lack of readily available market values for most investments, which are generally less liquid than publicly traded securities[113]. - The Company classifies inputs for fair value measurements into three levels, with Level 3 representing significant unobservable inputs[116][117]. - The Company competes with other BDCs and investment funds, facing intensified competition from new entrants with greater financial resources[123][124].

Core Insights - Logan Ridge Finance Corporation reported strong financial results for the fourth quarter and full year ended December 31, 2024, with net investment income of $0.56 per share and a net asset value of $32.04 per share [1][5][10] - The company declared a distribution of $0.36 per share for the first quarter of 2025, maintaining the same level as the previous quarter and representing a 13% increase compared to the first quarter of 2024 [1][9] - A merger agreement with Portman Ridge Finance Corporation aims to create shareholder value through greater scale, enhanced liquidity, and improved operational efficiencies [1][4][8] Financial Performance - Total investment income for Q4 2024 was $5.4 million, up from $5.1 million in Q3 2024 and $4.4 million in Q4 2023 [5] - For the full year 2024, total investment income increased to $20.9 million from $20.2 million in 2023 [10] - Net investment income for Q4 2024 was $1.5 million, or $0.56 per share, compared to $1.0 million or $0.37 per share in Q3 2024 and $0.6 million or $0.22 per share in Q4 2023 [5][10] - The company repurchased 16,598 shares in Q4 2024 at a cost of approximately $0.4 million, resulting in $0.04 per share of NAV accretion [5] Investment Strategy - The company made approximately $26.1 million in investments and had $29.5 million in repayments and sales during Q4 2024, resulting in net repayments of approximately $3.4 million [5] - For the full year 2024, the company made approximately $38.3 million in investments and had $55.0 million in repayments and sales, leading to net repayments of approximately $16.7 million [10][14] - The investment portfolio as of December 31, 2024, consisted of 59 portfolio companies with a fair value of approximately $172.3 million, down from 60 companies valued at approximately $189.7 million as of December 31, 2023 [10] Merger and Future Outlook - The merger with Portman Ridge Finance Corporation is expected to enhance operational efficiencies and shareholder value [4][8] - The merger agreement has been approved by the boards of both companies and is subject to stockholder approvals [6] - The company aims to continue executing its business plan to provide meaningful returns to stakeholders following the merger [9]

Core Viewpoint - Portman Ridge Finance Corporation and Logan Ridge Finance Corporation have announced a merger agreement, with Portman Ridge as the surviving entity, expected to enhance size, scale, and operational efficiencies [1][2][12] Transaction Highlights - The merger will increase Portman Ridge's total assets to over $600 million and net asset value (NAV) to approximately $270 million based on September 30, 2024 balance sheets [2] - The merger is expected to be immediately accretive to PTMN's NAV by 1.3% and core net investment income (NII) due to $2.8 million in annual operating expense efficiencies [2][10] - More than 70% of LRFC's portfolio is expected to consist of BC Partners-originated assets, with over 60% overlapping with PTMN's portfolio, mitigating integration risk [2][10] Fixed Exchange Ratio - LRFC shareholders will receive 1.50 shares of PTMN common stock for each share of LRFC, valuing LRFC's shares at $25.02, a 4% premium to its January 24, 2025 closing price [4] Approval and Timeline - The merger requires approval from shareholders of both companies and is expected to close in the second calendar quarter of 2025 [5][6] Additional Transaction Details - Sierra Crest, PTMN's external investment adviser, will waive up to $1.5 million of incentive fees over eight quarters post-merger [7] - LRFC plans to declare a dividend of no less than $1.0 million prior to the merger closing [9] Management Commentary - Management expressed confidence that the merger will be accretive to shareholders and enhance trading volume, liquidity, and access to financing [10][12]

Core Viewpoint - Logan Ridge Finance Corporation is scheduled to release its financial results for Q4 and the full year ended December 31, 2024, on March 13, 2025, after market close, followed by a conference call on March 14, 2025, at 11:30 a.m. ET to discuss these results [1]. Company Overview - Logan Ridge Finance Corporation (Nasdaq: LRFC) is a publicly traded, externally managed investment company regulated as a business development company under the Investment Company Act of 1940 [4]. - The company primarily invests in first lien loans, with a lesser focus on second lien loans and equity securities issued by lower middle market companies [4]. - Logan Ridge is externally managed by Mount Logan Management, LLC, a wholly owned subsidiary of Mount Logan Capital Inc., both of which are affiliates of BC Partners Advisors L.P. [4]. Financial Information Access - The company's filings with the Securities and Exchange Commission (SEC), earnings releases, press releases, and other financial, operational, and governance information can be accessed on its website [5].

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Core Viewpoint - The sustainability of a stock trend is crucial for successful short-term investing, and various factors must be considered to maintain momentum [1][2]. Group 1: Stock Performance - Logan Ridge (LRFC) has shown a solid price increase of 21.4% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also increased by 2% over the last four weeks, suggesting that the upward trend is still intact [5]. - LRFC is currently trading at 100% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - LRFC holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks with sufficient fundamental strength to maintain their upward trends [3]. - There are multiple stocks that meet the criteria of the "Recent Price Strength" screen, suggesting additional investment opportunities [8].