MIAMI, July 03, 2025 (GLOBE NEWSWIRE) -- PennantPark Investment Corporation (the "Company") (NYSE: PNNT) announced that it will report results for the third fiscal quarter ended June 30, 2025 on Monday, August 11, 2025 after the close of the financial markets. The Company will also host a conference call at 12:00 p.m. (Eastern Time) on Tuesday, August 12, 2025 to discuss its financial results. All interested parties are welcome to participate. You can access the conference call by dialing toll-free (888) 39 ...

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Core Viewpoint - PennantPark Investment Corporation held its second fiscal quarter 2025 earnings conference call, indicating ongoing communication with investors and stakeholders regarding financial performance and future outlook [1][2]. Group 1: Company Overview - The conference call was led by Art Penn, Chairman and CEO, alongside Rick Allorto, CFO, highlighting the leadership structure of the company [2]. - The call was recorded and will be available for replay on the company's website, emphasizing transparency and accessibility of information for investors [3]. Group 2: Financial Communication - The CFO reminded participants about the proprietary nature of the call and the importance of the Safe Harbor disclosure regarding forward-looking statements, which is a standard practice in financial communications [3][4]. - The company will not update forward-looking statements unless legally required, indicating a cautious approach to financial forecasting [4].

PennantPark Investment (PNNT) Q2 2025 Earnings Call May 13, 2025 12:00 PM ET Company Participants Arthur Penn - Chairman & CEORichard Allorto - Chief Financial OfficerMaxwell Fritscher - Equity Research AssociateMelissa Wedel - Vice President, U.S. Equities Research Conference Call Participants None - Analyst Operator Good afternoon, and welcome to the PennantPark Investment Corporation's Second Fiscal Quarter twenty twenty five Earnings Conference Call. Today's conference is being recorded. At this time, a ...

PennantPark Investment (PNNT) Q2 2025 Earnings Call May 13, 2025 12:00 PM ET Company Participants Arthur Penn - Chairman & CEORichard Allorto - Chief Financial OfficerMaxwell Fritscher - Equity Research AssociateMelissa Wedel - Vice President, U.S. Equities Research Conference Call Participants None - Analyst Operator Good afternoon, and welcome to the PennantPark Investment Corporation's Second Fiscal Quarter twenty twenty five Earnings Conference Call. Today's conference is being recorded. At this time, a ...

Financial Data and Key Metrics Changes - For the quarter ended March 31, GAAP and core net investment income was 18¢ per share, with total distributions of 24¢ per share [14][18] - As of March 31, the adjusted NAV was $7.48 per share, down 1.2% from $7.57 per share in the prior quarter [18] - The debt to equity ratio was 1.28 times, indicating a diversified capital structure across multiple funding sources [19] Business Line Data and Key Metrics Changes - During the quarter, the company invested $177 million in three new and 52 existing portfolio companies at a weighted average yield of 10.7% [15] - The joint venture (JV) portfolio grew to $1.4 billion, with the JV investing $170 million at a weighted average yield of 10.1% [15][16] - The portfolio consisted of 46% first lien secured debt, 2% second lien secured debt, 13% subordinated notes, 7% other subordinated debt, 7% equity in PSLF, and 25% in other preferred and common equity [20] Market Data and Key Metrics Changes - Approximately 80% of originations came from existing borrowers, with 20% from new platform investments [6] - The weighted average debt to EBITDA for new portfolio company investments was 3.9 times, with a weighted average interest coverage of 2.3 times [8] - The market yield on first lien term loans stabilized in the range of plus 500 to 550 basis points for high-quality assets [8] Company Strategy and Development Direction - The company aims to generate attractive risk-adjusted returns through income while preserving capital, focusing on growing middle market companies with high free cash flow conversion [17] - The strategy includes rotating out of larger equity positions and redeploying that capital into interest-paying debt investments to increase core net investment income [14] - The company remains selective in pursuing new investments, emphasizing rigorous underwriting and maintaining a conservative orientation [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that despite market volatility, the company had a solid quarter and expects originations to remain concentrated among existing portfolio companies [6][7] - The management expressed optimism about the upcoming vintage of loans, indicating that market volatility creates opportunities [8] - The company is closely monitoring the potential impact of tariffs across the portfolio, reporting limited exposure [9] Other Important Information - The company has a significant balance of spillover income, amounting to $58 million or 88¢ per share, which will be used to cover any shortfall in core net investment income versus dividends [15] - The credit quality of the portfolio remains strong, with three nonaccruals representing 1.6% of the portfolio at cost and 0.4% at market value as of March 31 [19] Q&A Session Summary Question: How would you characterize the current pipeline for new investments? - Management indicated that M&A deals impacted by tariffs were delayed, but there has been modest activity since April, with a growing pipeline expected for the rest of the year [24][25] Question: How much of the lower level of new deals was due to stricter underwriting? - Management stated that tariff-impacted deals are not being pursued, while the majority of their focus remains on existing borrowers in sectors not significantly affected by tariffs [28][50] Question: Can you discuss the exposure to government reimbursement and health care? - Management highlighted that the defense budget is expected to increase significantly, aligning well with their portfolio, and noted that their health care investments are performing well due to lower leverage compared to peers [39][44]

Core Insights - PennantPark (PNNT) reported revenue of $30.66 million for the quarter ended March 2025, marking a year-over-year decline of 14.8% and a surprise of -8.26% compared to the Zacks Consensus Estimate of $33.43 million [1] - The earnings per share (EPS) for the same period was $0.18, down from $0.22 a year ago, with an EPS surprise of -5.26% against the consensus estimate of $0.19 [1] Financial Performance Metrics - Investment income from non-controlled, non-affiliated investments was $0.12 million, significantly lower than the average estimate of $0.69 million based on three analysts [4] - Dividend income from controlled, affiliated investments was reported at $5.58 million, exceeding the average estimate of $5.12 million based on two analysts [4] - Dividend income from non-controlled, non-affiliated investments was $0.50 million, slightly below the estimated $0.55 million by two analysts [4] Stock Performance - Over the past month, shares of PennantPark have returned +5.3%, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]

PennantPark (PNNT) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5.26%. A quarter ago, it was expected that this business development company would post earnings of $0.20 per share when it actually produced earnings of $0.20, delivering no surprise.Over the last four quarters, the ...

Portfolio Overview - As of March 31, 2025, the portfolio totaled $1,213.6 million, with 41% in first lien secured debt and a weighted average yield on interest-bearing debt investments of 12.0%[234] - As of September 30, 2024, the portfolio totaled $1,328.1 million, with 50% in first lien secured debt and a weighted average yield on interest-bearing debt investments of 12.3%[235] - The average investment size in the overall portfolio was $6.9 million as of March 31, 2025[234] - PSLF's portfolio as of March 31, 2025, totaled $1,392.9 million, with a weighted average yield on interest-bearing debt investments of 10.4%[239] - As of March 31, 2025, the PennantPark Senior Loan Fund (PSLF) had total assets of $1,463.5 million, an increase from $1,073.4 million as of September 30, 2024[293] - The investment portfolio of PSLF consisted of debt investments in 119 portfolio companies as of March 31, 2025, compared to 102 companies as of September 30, 2024[293] Investment Activity - For the three months ended March 31, 2025, the company invested $176.8 million in three new and 52 existing portfolio companies, with a weighted average yield on debt investments of 10.7%[236] - For the three months ended March 31, 2024, the company invested $188.5 million in six new and 43 existing portfolio companies, with a weighted average yield of 11.7%[237] - For the six months ended March 31, 2025, PSLF invested $523.7 million in 23 new and 57 existing portfolio companies[240] - For the six months ended March 31, 2024, PSLF's total investments amounted to $194.2 million, with a weighted average yield of 12.2%[241] Financial Performance - For the three and six months ended March 31, 2025, investment income was $30.7 million and $64.9 million, respectively, a decrease from $36.0 million and $70.3 million for the same periods in 2024[270] - For the three and six months ended March 31, 2025, expenses totaled $19.2 million and $40.4 million, respectively, down from $21.7 million and $40.4 million in 2024[271] - Net investment income for the three and six months ended March 31, 2025, was $11.4 million and $24.4 million, or $0.18 and $0.37 per share, compared to $14.3 million and $29.9 million, or $0.22 and $0.46 per share in 2024[272] - For the three and six months ended March 31, 2025, net realized losses totaled $(27.7) million and $(30.3) million, compared to $(31.0) million and $(29.2) million in 2024[273] - The net change in unrealized appreciation on investments for the three and six months ended March 31, 2025, was $27.1 million and $29.5 million, respectively, down from $33.2 million and $28.3 million in 2024[274] Debt and Financing - The company expects to continue using debt capital and proceeds from public and private offerings to finance investment objectives[228] - The Truist Credit Facility had outstanding borrowings of $314.5 million as of March 31, 2025, with a weighted average interest rate of 6.7%[280] - PSLF entered into a $400.0 million senior secured revolving credit facility, increased from $325.0 million in August 2024[296] - The company has not engaged in interest rate hedging activities during the reporting periods, which may expose it to risks associated with interest rate fluctuations[326] Cash and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $32.6 million, down from $49.9 million as of September 30, 2024[289] - For the six months ended March 31, 2025, operating activities provided cash of $161.1 million, while financing activities used cash of $178.3 million, primarily for credit facility repayments and stockholder distributions[290] - Cash and cash equivalents increased to $62,201,000 as of March 31, 2025, from $36,595,000 as of September 30, 2024, reflecting a growth of 70%[309] Distributions - The company must distribute dividends equal to at least 90% of its net ordinary income and realized net short-term capital gains to maintain its RIC tax election[259] - The company declared distributions of $0.24 per share for the three months ended March 31, 2025, compared to $0.21 per share in the same period of 2024, reflecting a 14.3% increase[314] - The company transitioned from quarterly to monthly distributions effective October 2023, with future monthly distributions determined by the board of directors[315] Valuation and Accounting - PSLF's portfolio generally consists of illiquid securities, and the board of directors undertakes a multi-step valuation process each quarter for investments without readily available market quotations[246] - The company has adopted ASC 825-10 for the Truist Credit Facility, incurring $0.3 million in expenses related to amendment costs for the three and six months ended March 31, 2025[252] - The company has adopted ASU 2022-03, which clarifies fair value measurement disclosures, with no material impact on consolidated financial statements[320] - The FASB issued ASU 2023-07, effective for fiscal years beginning after December 15, 2023, which will enhance segment disclosure requirements, currently under evaluation by the company[321] Market and Sector Analysis - The average coupon rates for various sectors include 11.55% for software and 10.69% for transportation, indicating a diverse interest rate environment across industries[303] - The healthcare, education, and childcare sector shows a notable interest rate of 10.65% for NORA Acquisition, LLC, highlighting the sector's investment attractiveness[303] - The company has a diverse portfolio with investments across various sectors, including aerospace and defense, healthcare, and business services, indicating a strategic approach to market expansion[303]