Core Viewpoint - Monroe Capital (MRCC) reported quarterly earnings of $0.31 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing an increase from $0.25 per share a year ago, indicating a positive earnings surprise of 6.90% [1] Financial Performance - The company achieved revenues of $15.7 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.25%, although this is a slight decrease from $15.64 million in the same quarter last year [2] - Over the last four quarters, Monroe Capital has exceeded consensus EPS estimates two times and revenue estimates two times [2] Stock Performance - Since the beginning of the year, Monroe Capital shares have increased by approximately 14.8%, while the S&P 500 has gained 25.8%, indicating underperformance relative to the broader market [3] - The current Zacks Rank for Monroe Capital is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $14.83 million, and for the current fiscal year, it is $1.12 on revenues of $60.84 million [7] - The trend of estimate revisions for Monroe Capital is mixed, which may change following the recent earnings report [6] Industry Context - The Financial - Investment Management industry, to which Monroe Capital belongs, is currently ranked in the top 10% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8]

Financial Performance - Net Investment Income (NII) for Q3 2024 was $6.5 million, or $0.30 per share, a slight decrease from $6.6 million, or $0.30 per share in Q2 2024[1][8] - Adjusted Net Investment Income for Q3 2024 totaled $6.6 million, or $0.31 per share, down from $6.7 million, or $0.31 per share in Q2 2024[2][8] - Total investment income for Q3 2024 was $15.7 million, slightly up from $15.6 million in Q2 2024, primarily due to increased fee income[9] - Total investment income increased slightly to $15,695,000 from $15,627,000, marking an increase of about 0.4%[25] - The company reported a net realized gain of $638,000 from non-controlled/non-affiliate company investments, compared to a gain of $506,000 in the previous quarter[25] Asset and Liability Management - Net Asset Value (NAV) decreased by 0.2% to $198.9 million, or $9.18 per share, compared to $199.3 million, or $9.20 per share in Q2 2024[2][4] - Total assets decreased to $501,862,000 as of September 30, 2024, from $512,113,000 on June 30, 2024, representing a decline of approximately 2.5%[23] - Total liabilities decreased to $302,969,000 from $312,769,000, a reduction of approximately 3.1%[23] - The debt-to-equity leverage ratio improved from 1.54 times in Q2 2024 to 1.50 times in Q3 2024 due to paydowns of the revolving credit facility[3] Cash and Investments - As of September 30, 2024, the Company had $4.1 million in cash and cash equivalents and $169.0 million of debt outstanding on its revolving credit facility[13] - The company’s cash and cash equivalents increased to $4,070,000 from $3,876,000, an increase of about 5%[23] - The portfolio consisted of 94 companies with a total fair value of $474.3 million, down from $485.8 million in Q2 2024, with first lien loans representing 80.0% of the portfolio[7] - Total investments at fair value amounted to $474,259,000, down from $485,804,000, a decrease of about 2.5%[23] Expenses and Losses - Total expenses for Q3 2024 were $9.2 million, compared to $9.1 million in Q2 2024, with a decrease in expenses when excluding incentive fee limitations[10] - The Company had a net loss of $(1.5) million for Q3 2024, an improvement from $(3.3) million in Q2 2024, mainly due to unrealized losses from certain portfolio companies[11] - Interest and other debt financing expenses totaled $5,517,000, down from $5,780,000, a decrease of approximately 4.6%[27] Dividends - The Company paid a quarterly dividend of $0.25 per share, marking the 18th consecutive quarter of dividends[1][2]

Investment Portfolio Composition - As of September 30, 2024, the portfolio included approximately 79.2% senior secured loans, 0.8% unitranche secured loans, 6.4% junior secured loans, and 13.6% equity securities, compared to December 31, 2023, when the portfolio included approximately 79.6% senior secured loans, 2.8% unitranche secured loans, 5.5% junior secured loans, and 12.1% equity securities [218]. - The portfolio composition remained consistent, with senior secured loans representing 79.2% of total investments as of September 30, 2024, compared to 79.6% as of December 31, 2023 [232]. - The healthcare and pharmaceuticals sector represented 16.2% of total investments at fair value as of September 30, 2024, up from 14.2% as of December 31, 2023 [234]. - The company continues to focus on industries and geographies similar to those in which it may invest directly, indicating a strategic alignment in investment focus [289]. Investment Activity - During the three months ended September 30, 2024, the company invested $11.1 million in three new portfolio companies and $14.7 million in 30 existing portfolio companies, resulting in a net decrease in investments of $12.5 million for the period [225]. - During the nine months ended September 30, 2024, the company invested $27.6 million in six new portfolio companies and $44.1 million in 51 existing portfolio companies, resulting in a net decrease in investments of $14.6 million for the period [226]. - The company has a commitment to MacQueen Equipment, LLC with a total principal of $2,075,000 and a fair value of $2,075,000, with an interest rate of 10.86% [299]. Investment Performance - The total weighted average annualized effective yield on portfolio investments was 11.0% as of September 30, 2024, down from 12.1% as of December 31, 2023 [231]. - The investment performance risk rating distribution shows 81.2% of investments rated Grade 2, while 14.6% are rated Grade 3, indicating a slight increase in risk compared to December 31, 2023 [241]. - Nine borrowers had loans or preferred equity investments on non-accrual status totaling $14.9 million, or 3.1% of total investments, as of September 30, 2024, up from $7.5 million or 1.5% as of December 31, 2023 [242]. - The company continues to monitor investment performance closely, with a focus on maintaining risk ratings and compliance with debt covenants [235][239]. Financial Performance - Total investment income for the three months ended September 30, 2024, was $15,695,000, slightly higher than $15,643,000 for the same period in 2023 [244]. - Net investment income before income taxes increased to $6,617,000 for the three months ended September 30, 2024, compared to $5,515,000 in the prior year [244]. - The company reported a net increase in net assets resulting from operations of $4,966,000 for the three months ended September 30, 2024, compared to a decrease of $(236,000) in the prior year [244]. - Net investment income for the nine months ended September 30, 2024, was $18,510,000, an increase of 3.0% from $17,971,000 in 2023 [246]. - Total operating expenses for the nine months ended September 30, 2024, were $27,705,000, down 8.5% from $30,328,000 in 2023 [250]. Debt and Financing - As of September 30, 2024, the company had $4.1 million in cash and cash equivalents and $169.0 million in total debt outstanding [267]. - The asset coverage ratio as of September 30, 2024, was 167%, consistent with the ratio as of December 31, 2023 [268]. - The company has a $255.0 million revolving credit facility, with the ability to increase it to $400.0 million under certain conditions [274]. - As of September 30, 2024, the outstanding borrowings under the revolving credit facility had a weighted average interest rate of 7.6% [278]. Market and Economic Conditions - The target market for the company includes small and middle-market companies in the U.S. with annual revenues between $10 million and $2.5 billion, which are seen as significant growth segments [314]. - The company anticipates that increased M&A activity, supported by recent Federal Reserve rate cuts, will drive deal flow in the middle market [319]. - Inflation is showing signs of acceleration in the U.S. and globally, which may affect the profit margins of the company's portfolio companies [349]. Valuation and Risk Management - The fair value of the investment portfolio was determined in good faith by the Valuation Designee in accordance with GAAP and valuation procedures [332]. - The income approach is generally used to determine fair value for loans, considering factors such as current interest rates, borrower financial condition, and economic conditions [328]. - The company is subject to various financial market risks, including valuation risk, interest rate risk, and currency risk, which may affect the prices of securities held [342]. - The company may hedge against interest rate fluctuations using standard instruments such as futures, options, and forward contracts [347]. Legal and Compliance - The company is subject to legal proceedings in the ordinary course of business, but does not expect these to materially affect its financial condition or results of operations [353]. - The company's disclosure controls and procedures were evaluated as effective, providing reasonable assurance for timely reporting of required information [350]. - No changes occurred in the internal control over financial reporting during the three months ended September 30, 2024, that materially affected the company's reporting [351].

Core Points - Monroe Capital Corporation will report its third quarter financial results for the period ending September 30, 2024, on November 12, 2024, after market close [1] - A webcast and conference call to discuss these results will take place on November 13, 2024, at 11:00 a.m. Eastern Time [1] Company Overview - Monroe Capital Corporation is a publicly-traded specialty finance company that primarily invests in senior, unitranche, and junior secured debt, as well as unsecured debt and equity investments in middle-market companies [2] - The company's investment objective is to maximize total return to stockholders through current income and capital appreciation [2] - Investment activities are managed by Monroe Capital BDC Advisors, LLC, which is registered under the Investment Advisers Act of 1940 [2] Asset Management Firm - Monroe Capital LLC specializes in private credit markets, offering various strategies including direct lending, technology finance, venture debt, alternative credit, structured credit, real estate, and equity [3] - The firm has been providing capital solutions in the U.S. and Canada since 2004 and focuses on generating high-quality "alpha" returns [3] - Monroe Capital is headquartered in Chicago and operates 10 offices across the United States and Asia [3] Awards and Recognition - Monroe has received multiple awards, including Private Debt Investor's 2023 Lower Mid-Market Lender of the Decade and 2023 Lower Mid-Market Lender of the Year [4] - Other accolades include 2023 CLO Manager of the Year, Americas, and recognition from Global M&A Network as the 2023 Lower Mid-Markets Lender of the Year, U.S.A. [4]

Core Viewpoint - Monroe Capital (MRCC) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for Monroe Capital is projected at $1.12 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 0.9% [9]. - Over the past three months, analysts have raised their earnings estimates for Monroe Capital by 10.4% [9]. Zacks Rating System - The Zacks rating system is based solely on a company's changing earnings picture, which is crucial for stock price movements [2][3]. - The system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [10][11]. Market Implications - The upgrade to Zacks Rank 1 for Monroe Capital suggests an improvement in the company's underlying business, likely leading to increased buying pressure and a rise in stock price [6][11]. - The correlation between earnings estimate revisions and near-term stock movements highlights the importance of tracking these revisions for investment decisions [7].

CHICAGO, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Monroe Capital Corporation (the "Company") (NASDAQ: MRCC) announced today that its Board of Directors has declared a distribution of $0.25 per share for the third quarter of 2024, payable on September 30, 2024 to stockholders of record as of September 16, 2024. In October 2012, the Company adopted a dividend reinvestment plan that provides for reinvestment of distributions on behalf of its stockholders, unless a stockholder elects to receive cash prior to the reco ...

II CHIA 083 100 p 198 188 i I P III # # HOBEL 1984 1 000 1 I I I H . Hiroshi Watanabe I have been covering Monroe Capital (NASDAQ:NASDAQ:MRCC) since December last year. Both my initial and the follow-up article in which I assessed the Q1, 2024 dynamics outlining a relatively bearish case. The reason for this was simple - the underlying risks were too excessive to open a long-term stake in the BDC. For example, such metrics as leverage, dividend coverage and deteriorating portfolio quality all embodied chara ...

Monroe Capital Corporation (NASDAQ:MRCC) Q2 2024 Earnings Conference Call August 8, 2024 11:00 AM ET Company Participants Ted Koeing - Chief Executive Officer Mick Solimene - Chief Investment Officer and CFO Alex Parmacek - Deputy Portfolio Manager Conference Call Participants Christopher Nolan - Ladenburg Thalmann Robert Dodd - Raymond James Operator Welcome to Monroe Capital Corporation's Second Quarter 2024 Earnings Conference Call. Before we begin, I'd like to take a moment to remind our listeners that ...

Monroe Capital (MRCC) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 19.23%. A quarter ago, it was expected that this business development company would post earnings of $0.26 per share when it actually produced earnings of $0.25, delivering a surprise of -3.85%. Over the last four ...

Exhibit 99.1 Monroe Capital Corporation BDC Announces Second Quarter 2024 Results CHICAGO, IL, August 7, 2024 – Monroe Capital Corporation (NASDAQ: MRCC) today announced its financial results for the second quarter ended June 30, 2024. Except where the context suggests otherwise, the terms "Company," "we," "us," and "our" refer to Monroe Capital Corporation (together with its subsidiaries). Second Quarter 2024 Financial Highlights • Net Investment Income ("NII") of $6.6 million, or $0.30 per share • Adjuste ...