Main Street Capital (NYSE:MAIN) Q3 2024 Earnings Conference Call November 8, 2024 10:00 AM ET Company Participants Zach Vaughan - IR, Dennard Lascar Associates LLC Dwayne Hyzak - CEO David Magdal - President and Chief Investment Officer Ryan Nelson - CFO Nick Meserve - MD and Head of Main Street's Private Credit Investment Group Conference Call Participants Bryce Rowe - B. Riley Securities Robert Dodd - Raymond James Mark Hughes - Truist Securities Operator Greetings, and welcome to the Main Street Capital ...

Financial Data and Key Metrics - The company achieved an annualized return on equity (ROE) of 18.8% in Q3 2024, with distributable net investment income (DNII) per share exceeding dividends paid to shareholders [14] - Net asset value (NAV) per share reached a new record for the ninth consecutive quarter, increasing by $0.77 (2.6%) to $30.57 [54] - Total investment income for Q3 2024 was $136.8 million, an 11% increase year-over-year and a 3.5% increase quarter-over-quarter [44] - DNII per share for Q3 was $1.06, a 1.9% increase year-over-year but a 0.9% decrease quarter-over-quarter [58] Business Line Performance - Lower middle market investments totaled $52 million in Q3, resulting in a net increase of $2 million after repayments and other activities [19] - Private loan investments totaled $309 million, with a net increase of $163 million after repayments and other activities [20] - The lower middle market portfolio included 84 companies with a fair value of $2.5 billion, 28% above cost base, while the private loan portfolio included 92 companies with a fair value of $1.9 billion [42] - The asset management business contributed $7.9 million to net investment income, with $2.4 million in incentive fees [50] Market and Portfolio Performance - The company maintained a highly diversified portfolio with investments in 193 companies across various industries [39] - The largest portfolio companies represented only 3.6% of total investment income and 3.2% of the total investment portfolio fair value [39] - The company recorded net fair value appreciation of $48.1 million, driven by strong performance in the lower middle market portfolio and the external investment manager [51] - Investments on non-accrual status comprised 1.4% of the total investment portfolio at fair value and 3.9% at cost [53] Strategic Direction and Industry Competition - The company remains focused on its lower middle market and private loan investment strategies, with an attractive pipeline for future growth [15][28] - The company is exploring a potential listing of MSC Income Fund, which could transition to a private loan-focused strategy, enhancing future growth opportunities [23][24] - The company maintains a conservative leverage profile with a regulatory debt-to-equity ratio of 0.69x and an asset coverage ratio of 2.44x, below long-term targets of 0.8-0.9x and 2.1-2.25x, respectively [54] Management Commentary on Operating Environment and Outlook - Management highlighted the sustainable strength of the platform, driven by diversified investment strategies and the quality of portfolio companies [14] - The company expects continued favorable performance in Q4 2024, with DNII per share projected to be at least $1.08, with potential upside from dividend income and portfolio activities [59] - The company declared a supplemental dividend of $0.30 per share for December and increased regular monthly dividends for Q1 2025 to $0.25 per share, reflecting confidence in future performance [25][26] Other Key Information - The company raised $65.6 million through its at-the-market (ATM) program in Q3 and issued $100 million in unsecured notes, enhancing liquidity [55] - The company amended its SPV facility, increasing commitments by $170 million to $600 million and extending maturity to September 2029 [55] - The company hosted its 8th Annual Main Street President's Meeting, fostering collaboration and best practices among portfolio company leaders [33][34] Q&A Session Summary Question: Lower middle market and private loan pipeline activity - The lower middle market pipeline is above average, with some deals slipping into Q4 due to due diligence issues and owner-operator decisions [62][63] - The private loan pipeline is average after significant activity in Q2 and Q3, with some cooling off in deal flow [65] Question: Pricing and terms in the private loan market - The company has seen spread compression of 25 basis points since Q3 and 75-100 basis points year-over-year, with some regional banks offering lower spreads [68][71] - Despite spread compression, the company remains confident in the quality of investment opportunities in the private loan market [69] Question: Dividend income variability - Dividend income was lower in Q3 due to portfolio companies pursuing acquisition strategies and reinvesting in their platforms, as well as lower incentive fees from the asset management business [81][84] Question: Realized gain in the private loan portfolio - A $26 million realized gain in Q3 was from an equity investment in the private loan portfolio, which will not impact incentive fees [85] Question: Non-accruals and consumer discretionary exposure - Non-accruals increased slightly, primarily in consumer-focused businesses, with expectations for progress in Q4 or early Q1 2025 [88] Question: EBITDA growth in the lower middle market portfolio - The portfolio continues to perform well, with overperforming companies driving strong results, while middle-performing companies are flat to slightly down [90] Question: Prepayment activity and regional bank competition - Prepayment activity is idiosyncratic, with local banks occasionally refinancing portfolio companies at lower rates, but no broad trend is observed [91]

Main Street Capital Corporation’s (MAIN) third-quarter 2024 adjusted net investment income of $1 per share missed the Zacks Consensus Estimate of $1.02. The reported figure compares favorably to 99 cents per share reported in the year-ago quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The results were primarily affected by an increase in expenses. Nonetheless, an improvement in the total investment income and the company’s robust portfolio activities supported the results t ...

Table of contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from: to Commission File Number: 814-00746 Main Street Capital Corporation (Exact name of registrant as specified in its charter) Maryland 41 ...

Main Street Capital (MAIN) reported $136.82 million in revenue for the quarter ended September 2024, representing a year-over-year increase of 11%. EPS of $1.00 for the same period compares to $0.99 a year ago.The reported revenue represents a surprise of -0.54% over the Zacks Consensus Estimate of $137.57 million. With the consensus EPS estimate being $1.02, the EPS surprise was -1.96%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations ...

Main Street Capital (MAIN) came out with quarterly earnings of $1 per share, missing the Zacks Consensus Estimate of $1.02 per share. This compares to earnings of $0.99 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.96%. A quarter ago, it was expected that this investment firm would post earnings of $1.01 per share when it actually produced earnings of $1.01, delivering no surprise.Over the last four quarters, the company ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________________________________ FORM 8-K __________________________________________________________________________ CURRENT REPORT Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) October 15, 2024 __________________________________________________________________________ Main Street Capital Corporation (Exact name of registr ...

Third Quarter 2024 Net Investment Income of $1.00 Per ShareThird Quarter 2024 Distributable Net Investment Income(1) of $1.06 Per ShareNet Asset Value of $30.57 Per ShareHOUSTON, Nov. 7, 2024 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce its financial results for the third quarter ended September 30, 2024. Unless otherwise noted or the context otherwise indicates, the terms "we," "us," "our" and the "Company" refer to Main Street and its consolidated sub ...

You can get access to everything we have to offer right now. Try our service and decide for yourself.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. ...

Regular Monthly Dividends of $0.25 Per Share for each of January, February and March 2025Monthly Dividends Represent a 2.0% Increase Compared to Fourth Quarter 2024 and a 4.2% Increase Compared to First Quarter 2024Supplemental Dividend of $0.30 Per Share Payable in December 2024HOUSTON, Nov. 5, 2024 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce that its Board of Directors declared regular monthly cash dividends of $0.25 per share for each of January, Fe ...