New Mountain Finance (NMFC) came out with quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.39 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -7.69%. A quarter ago, it was expected that this business development company would post earnings of $0.39 per share when it actually produced earnings of $0.40, delivering a surprise of 2.56%.Over the last fo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ý Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended March 31, 2024 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | Commission | Exact name of registrant as specified in its charter, address of principal executive | I.R.S. Employer | | --- | --- | --- | | File Number | offices, telephone numbers and states or other ...

Financial Performance - Net Investment Income for Q1 2024 was $37.3 million, or $0.36 per weighted average share, compared to $0.38 per share in Q1 2023[3] - Net investment income for the three months ended March 31, 2024, was $37,554 thousand, slightly down from $38,388 thousand in the same period last year, a decrease of 2.17%[25] - Total investment income for the quarter was $90,556 thousand, a decrease from $91,953 thousand year-over-year, reflecting a decline of 1.52%[25] - Basic earnings per share decreased to $0.26 for the quarter, down from $0.44 in the prior year, a decline of 40.91%[27] - The net increase in net assets resulting from operations was $28,084 thousand, down from $44,812 thousand in the previous year, a decrease of 37.51%[25] Distributions - The Company declared a regular second quarter distribution of $0.32 per share and a supplemental distribution of $0.02 per share, payable on June 28, 2024[5] - Distributions declared and paid per share increased to $0.36, compared to $0.32 in the same quarter last year, an increase of 12.50%[27] Asset and Liability Management - The Company's Net Asset Value (NAV) per share decreased to $12.77 from $12.87 as of December 31, 2023, reflecting a 0.8% decline[5] - Total assets increased to $3,255,607 thousand as of March 31, 2024, up from $3,159,214 thousand at December 31, 2023, representing a growth of 3.04%[22] - Total liabilities rose to $1,886,424 thousand, compared to $1,827,491 thousand in the previous quarter, marking an increase of 3.22%[22] - The statutory debt to equity ratio improved from 1.14x as of December 31, 2023, to 1.08x as of March 31, 2024[5] Investment Portfolio - The investment portfolio had a fair value of $3,086.5 million as of March 31, 2024, with a weighted average Yield to Maturity (YTM) at Cost of approximately 11.1%[5] - The investment portfolio composition included 56.9% in First Lien, 14.0% in Second Lien, and 7.0% in Preferred Equity[12] - 96.5% of the portfolio was rated green on the risk rating scale, an improvement from 94.5% as of December 31, 2023[5] Cash and Financing Activities - The Company generated $191.8 million in originations during the quarter, partially offset by cash repayments of $144.9 million[5] - As of March 31, 2024, the Company had cash and cash equivalents of $107.5 million and total statutory debt outstanding of $1,471.0 million[13] - The Company sold 3,730,434 shares of common stock during the quarter, resulting in net proceeds of approximately $47.9 million[13] Non-Controlled Investments - Non-controlled/non-affiliated investments reported a net realized loss of $11,858 thousand for the quarter, compared to a loss of $1,308 thousand in the same period last year[25] Business Focus - The company focuses on providing direct lending solutions to U.S. middle market companies, primarily through senior secured loans, aiming for attractive risk-adjusted returns[28]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________________________ FORM 10-K ý Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2023 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Exact name of registrant as specified in its charter, addresses of principal executive offices, telephone nu ...

Financial Data and Key Metrics Changes - The net asset value per share decreased slightly to $13.06, an $0.08 decline compared to the last quarter, indicating stable credit performance across the portfolio [7][60] - Adjusted net investment income for Q3 was $0.40 per share, exceeding the regular dividend of $0.32 per share [18][36] - Total investment income for the quarter was $94.1 million, a 20% increase over the prior year, while total net expenses were approximately $53.7 million, an 18% increase [36] Business Line Data and Key Metrics Changes - The average yield of the portfolio increased from 11.6% in Q2 to 11.8% in Q3, primarily due to the higher base rate environment [32] - The net lease portfolio, although only 4% of the total portfolio, continues to perform strongly with a weighted average cash yield of approximately 11% [31] Market Data and Key Metrics Changes - The portfolio had approximately $3.1 billion in investments at fair value, with total assets of $3.3 billion and total liabilities of $2 billion [60] - The weighted average EBITDA of borrowers has increased to $147 million over the last several quarters, indicating a positive trend in borrower performance [58] Company Strategy and Development Direction - The company focuses on defensive growth sectors such as software, healthcare, and business services, which are expected to perform well in uncertain economic times [19][47] - The strategy has been consistent over 12 years, allowing the company to operate confidently in various economic environments [47] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term value proposition and prospects for recovery in first lien positions despite short-term operational headwinds [13] - The outlook for the sponsor-backed direct lending market is positive, with expectations for continued strong credit performance and elevated base rates [54] Other Important Information - The company has returned over $1.1 billion to shareholders through its dividend program since its IPO in 2011, generating an annualized return of approximately 10% [12] - Senior management and employee share ownership has risen over time, with management now owning approximately 13% of total shares [10] Q&A Session Summary Question: Can you expand on the adviser revolver upsize post quarter? - The management company revolver was upsized from $50 million to $100 million and extended to December 2027, signaling support for liquidity [67][68] Question: Will the trend of balance sheet leverage working lower continue? - The company aims to operate within a leverage range of 1 to 1.25 times and is focused on moving towards the middle of that range due to the current macro environment [77][78] Question: What drove the markdown for Edmentum this quarter? - The markdown was consistent with the overall M&A environment where valuations have come down, reflecting the need to fair value all positions [82] Question: Is the income from joint ventures expected to remain stable? - The income from joint ventures has been growing, and the current run rate is expected to be stable, with no significant one-time items anticipated [83]

NEW MOUNTAIN FINANCE Important Notices and Safe Harbor Statement Past performance is not indicative nor a guarantee of future returns, the realization of which is dependent on many factors, many of which are beyond the control of NMFC. There can be no assurances that future dividends will match or exceed historic ones, or that they will be made at all. Net returns give effect to all fees and expenses. Unless otherwise noted, information included herein is presented as of the date indicated on the cover page ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ý Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2023 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | Commission File Number | Exact name of registrant as specified in its charter, address of principal executive offices, telephone numbers and states or other jurisdictions of incorporation or organi ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents New Mountain Finance Corporation's unaudited consolidated financial statements as of and for the periods ended June 30, 2023, including key financial statements and a detailed investment schedule [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) As of June 30, 2023, total assets slightly decreased to $3.30 billion, while total net assets increased to $1.34 billion, raising NAV per share to $13.14 Consolidated Statements of Assets and Liabilities Highlights (in thousands, except per share data) | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total investments at fair value | $3,179,465 | $3,221,247 | | Total assets | $3,296,981 | $3,354,927 | | Net borrowings | $1,908,300 | $1,980,661 | | Total liabilities | $1,959,019 | $2,028,736 | | Total net assets | $1,337,962 | $1,326,191 | | Net asset value per share | $13.14 | $13.02 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total investment income significantly increased for the three and six months ended June 30, 2023, driven by higher interest income, leading to improved net investment income and basic earnings per share Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total investment income | $95,492 | $73,110 | $187,445 | $142,073 | | Net expenses | $54,632 | $41,493 | $108,101 | $80,453 | | Net investment income | $39,928 | $31,704 | $78,316 | $61,612 | | Net increase in net assets | $34,830 | $15,954 | $79,403 | $52,146 | | Basic earnings per share | $0.35 | $0.16 | $0.79 | $0.52 | | Diluted earnings per share | $0.32 | $0.16 | $0.71 | $0.50 | [Consolidated Statements of Changes in Net Assets](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) For the six months ended June 30, 2023, net assets increased by $11.6 million, primarily due to operations, partially offset by capital transactions Changes in Net Assets for the Six Months Ended June 30 (in thousands) | Description | 2023 | 2022 | | :--- | :--- | :--- | | **Net Increase from Operations** | **$79,403** | **$52,146** | | Net Investment Income | $78,316 | $61,612 | | Net Realized/Unrealized Gains | $1,087 | $(7,247) | | **Net Decrease from Capital Transactions** | **($67,775)** | **($21,781)** | | Net Proceeds from Shares Sold | $0 | $37,051 | | Distributions Declared | ($67,628) | ($59,804) | | **Net Increase in Net Assets** | **$11,628** | **$30,365** | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly reversed to $119.9 million for the six months ended June 30, 2023, primarily due to higher proceeds from investment sales and paydowns Consolidated Cash Flows Summary for the Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $119,939 | ($79,100) | | Net cash (used in) provided by financing activities | ($145,251) | $61,868 | | **Net decrease in cash and cash equivalents** | **($25,312)** | **($17,232)** | | Cash and cash equivalents at end of period | $45,930 | $40,712 | [Consolidated Schedule of Investments](index=7&type=section&id=Consolidated%20Schedule%20of%20Investments) As of June 30, 2023, the $3.18 billion investment portfolio comprised 113 companies, primarily in first lien debt (53.6%) and equity (26.0%), with top concentrations in Software, Business Services, and Healthcare Total Investments by Control Type (June 30, 2023, in thousands) | Investment Category | Cost | Fair Value | | :--- | :--- | :--- | | Non-Controlled/Non-Affiliated | $2,486,589 | $2,364,179 | | Non-Controlled/Affiliated | $104,459 | $149,260 | | Controlled Investments | $627,156 | $666,026 | | **Total Investments** | **$3,218,204** | **$3,179,465** | Portfolio Composition by Investment Type (June 30, 2023) | Investment Type | Percent of Total Investments at Fair Value | | :--- | :--- | | First lien | 53.59% | | Second lien | 17.72% | | Subordinated | 2.66% | | Equity and other | 26.03% | | **Total** | **100.00%** | Top 5 Industry Concentrations (June 30, 2023) | Industry Type | Percent of Total Investments at Fair Value | | :--- | :--- | | Software | 26.44% | | Business Services | 18.84% | | Healthcare | 16.65% | | Investment Funds | 7.94% | | Education | 7.65% | [Notes to the Consolidated Financial Statements](index=61&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies, investment valuation, debt facilities, and joint ventures, highlighting the company's BDC and RIC structure and fair value measurement methodologies - The company is a BDC and has elected to be treated as a RIC, requiring it to distribute at least **90% of its investment company taxable income** to stockholders[164](index=164&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk) - The company's investment objective is to generate current income and capital appreciation by sourcing and originating senior secured loans and select junior capital positions in growing, defensive U.S. upper middle-market companies[167](index=167&type=chunk) - Fair value of investments is determined by the board of directors quarterly. Level 3 investments, for which quotes are not readily available, are valued using a multi-step process involving internal analysis, and for material investments, review by an independent valuation firm[176](index=176&type=chunk)[183](index=183&type=chunk) - The company has several investments on non-accrual status, including positions in Ansira Holdings, National HME, American Achievement Corporation, and Education Management II LLC[216](index=216&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk) - The company has two significant joint ventures, SLP III and SLP IV, with SkyKnight affiliates, which are capitalized with equity and invest primarily in broadly syndicated first lien senior secured loans[228](index=228&type=chunk)[248](index=248&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=109&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a 32% increase in total investment income for the first six months of 2023, driven by higher interest rates on floating-rate assets [Portfolio and Investment Activity](index=118&type=section&id=Portfolio%20and%20Investment%20Activity) For the six months ended June 30, 2023, new investments totaled $124.6 million, with proceeds of $202.2 million from repayments and sales, resulting in a slight portfolio fair value decrease to $3.18 billion Portfolio and Investment Activity (in millions) | Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | New investments | $124.6 | $397.1 | | Debt repayments | $36.0 | $146.9 | | Sales of securities | $166.2 | $145.8 | | Change in unrealized appreciation | $59.6 | $49.9 | | Change in unrealized depreciation | ($61.1) | ($92.6) | [Monitoring of Portfolio Investments](index=117&type=section&id=Monitoring%20of%20Portfolio%20Investments) As of June 30, 2023, 93.6% of the portfolio's fair value was rated Green, indicating strong performance, while a small portion was rated Yellow, Orange, or Red, with several investments on non-accrual status Portfolio Risk Rating (June 30, 2023, in millions) | Risk Rating | Fair Value | Percent | | :--- | :--- | :--- | | Red | $9.0 | 0.3% | | Orange | $51.1 | 1.6% | | Yellow | $142.8 | 4.5% | | Green | $2,993.1 | 93.6% | | **Total** | **$3,196.0** | **100.0%** | - As of June 30, 2023, investments on non-accrual status included positions in Ansira, National HME, American Achievement Corporation, UniTek, and Education Management II LLC[460](index=460&type=chunk)[462](index=462&type=chunk)[463](index=463&type=chunk) [Results of Operations](index=119&type=section&id=Results%20of%20Operations) For the six months ended June 30, 2023, total investment income increased 32% to $187.4 million due to higher interest rates, while net operating expenses rose to $109.1 million, primarily from increased interest and financing expenses - For Q2 2023, total investment income increased by **31% YoY to $95.5 million**, mainly due to higher interest income from increased LIBOR and SOFR rates[468](index=468&type=chunk) - For Q2 2023, interest and financing expenses rose by **$11.0 million YoY**, driven by higher rates on floating-rate borrowings and interest on the new 2022 Convertible Notes[471](index=471&type=chunk) - For the six months ended June 30, 2023, the net gain of **$1.6 million** from investment activities was primarily driven by realized gains in Haven Midstream and unrealized gains in UniTek, partially offset by realized and unrealized losses in other portfolio companies like National HME and Ansira[479](index=479&type=chunk)[480](index=480&type=chunk) [Liquidity, Capital Resources, Off-Balance Sheet Arrangements, Borrowings and Contractual Obligations](index=123&type=section&id=Liquidity%2C%20Capital%20Resources%2C%20Off-Balance%20Sheet%20Arrangements%2C%20Borrowings%20and%20Contractual%20Obligations) The company's liquidity is supported by credit facilities and operations, with an asset coverage ratio of 181.7% as of June 30, 2023, and total outstanding borrowings of $1.92 billion across various facilities - As of June 30, 2023, the company's asset coverage ratio was **181.7%**, exceeding the regulatory minimum of 150%[483](index=483&type=chunk)[484](index=484&type=chunk) - The company had cash and cash equivalents of **$45.9 million** as of June 30, 2023[485](index=485&type=chunk) - As of June 30, 2023, the company had outstanding unfunded commitments of **$197.4 million**[489](index=489&type=chunk) Contractual Obligations as of June 30, 2023 (in millions) | Obligation | Total | Less than 1 Year | 1 - 3 Years | 3 - 5 Years | More than 5 Years | | :--- | :--- | :--- | :--- | :--- | :--- | | Holdings Credit Facility | $574.3 | $— | $574.3 | $— | $— | | Unsecured Notes | $391.5 | $116.5 | $200.0 | $75.0 | $— | | Convertible Notes | $376.8 | $116.8 | $260.0 | $— | $— | | SBA-guaranteed debentures | $300.0 | $— | $117.7 | $32.3 | $150.0 | | DB Credit Facility | $186.4 | $— | $186.4 | $— | $— | | NMFC Credit Facility | $91.3 | $— | $91.3 | $— | $— | | NMNLC Credit Facility II | $2.9 | $— | $2.9 | $— | $— | | **Total** | **$1,923.2** | **$233.3** | **$1,432.6** | **$107.3** | **$150.0** | [Quantitative and Qualitative Disclosures About Market Risk](index=135&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is primarily exposed to interest rate risk, with 87.4% of its investment portfolio in floating-rate assets, and a 100 basis point interest rate increase would boost net interest income by an estimated 7.77% - As of June 30, 2023, approximately **87.4%** of the company's investments at fair value (excluding non-accrual and non-interest bearing equity) are floating-rate, while its credit facilities are also subject to floating rates[557](index=557&type=chunk) Interest Rate Sensitivity Analysis (as of June 30, 2023) | Change in Interest Rates | Estimated Percentage Change in Interest Income Net of Interest Expense | | :--- | :--- | | -25 Basis Points | (1.94)% | | Base Interest Rate | — % | | +100 Basis Points | 7.77% | | +200 Basis Points | 15.54% | | +300 Basis Points | 23.31% | [Controls and Procedures](index=136&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of June 30, 2023, the company's disclosure controls and procedures were **effective** at a reasonable assurance level[561](index=561&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended June 30, 2023[562](index=562&type=chunk) [PART II. OTHER INFORMATION](index=137&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=137&type=section&id=Item%201.%20Legal%20Proceedings) As of June 30, 2023, the company and its subsidiaries are not subject to any material pending legal proceedings outside the normal course of business - The company is not currently subject to any material pending legal proceedings[566](index=566&type=chunk) [Risk Factors](index=137&type=section&id=Item%201A.%20Risk%20Factors) This section highlights key risks, including potential adverse impacts from banking system strain, fewer protections from 'covenant-lite' loans, and uncertainties associated with the LIBOR to SOFR transition - Recent volatility and strain on the banking system could adversely impact the company's business, which is dependent on bank relationships[568](index=568&type=chunk) - The company's portfolio includes 'covenant-lite' loans, which have less restrictive terms and may offer fewer protections, potentially making recovery more challenging in cases of distress[569](index=569&type=chunk) - The transition from LIBOR to alternative reference rates like SOFR is substantially complete, but these new rates may not yield similar economic results, and the market for instruments referencing them is still developing[570](index=570&type=chunk)[572](index=572&type=chunk)[573](index=573&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=139&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not engage in any unregistered sales of equity securities during Q2 2023, and no shares were repurchased under its stock repurchase program, though 194,942 shares were purchased for the dividend reinvestment plan - No unregistered sales of equity securities occurred in the three months ended June 30, 2023[576](index=576&type=chunk) - During the six months ended June 30, 2023, **194,942 shares** were purchased in the open market for the dividend reinvestment plan[577](index=577&type=chunk) - The company did not repurchase any shares under its **$50 million** stock repurchase program during the six months ended June 30, 2023. Approximately **$47.1 million** remains available under the program, which extends until December 31, 2023[579](index=579&type=chunk) [Defaults Upon Senior Securities](index=139&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the reporting period - None[580](index=580&type=chunk) [Other Information](index=139&type=section&id=Item%205.%20Other%20Information) On June 27, 2023, Barbara Daniel was appointed as a new independent director to the company's board, effective July 1, 2023, and assigned to several key committees - Barbara Daniel was appointed as an independent director to the Board of Directors, effective July 1, 2023[583](index=583&type=chunk) [Exhibits](index=140&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the report, including amendments to credit agreements and required certifications by the CEO and CFO

New Mountain Finance Corporation (NASDAQ:NMFC) Q1 2023 Earnings Conference Call May 9, 2023 10:00 AM ET Company Participants John Kline - President and CEO Steve Klinsky - Chairman, NMFC and CEO, New Mountain Capital Robert Hamwee - Vice Chairman Laura Holson - Chief Operating Officer and Interim CFO Conference Call Participants Ryan Lynch - KBW Erik Zwick - Hovde Group Bryce Rowe - B. Riley Operator Good day. And welcome to the New Mountain Finance Corporation First Quarter 2023 Earnings Call. All particip ...

Important Notices and Safe Harbor Statement NEW MOUNTAIN FINANCE | --- | --- | |-----------------------|-------| | | | | | | | | | | Earnings Presentation | | This presentation contains forward looking statements, which are not guarantees of future performance, conditions or results, and involve substantial risks and uncertainties, including the impact of COVID-19, the current conflict between Russia and Ukraine, and related changes in base interest rates and significant volatility on our business, portfoli ...