Core Insights - The article emphasizes the importance of innovation and disruption in the financial sector, particularly focusing on high-tech and early growth companies [1] Company and Industry Summary - The financial researcher highlights a beneficial long position in SCM shares, indicating confidence in the company's future performance [2] - The article aims to provide insights into current events and significant news within the industry, suggesting a proactive approach to identifying investment opportunities [1]

Financial Data and Key Metrics Changes - In Q3 2024, the company generated GAAP net investment income of $0.39 per share and core net investment income of $0.40 per share, which excludes estimated excise taxes [7] - Net asset value per share increased by $0.19 during the quarter, primarily due to net unrealized depreciation on the investment portfolio [7] - The investment portfolio at fair value was $908.7 million, up from $899.7 million as of June 30, 2024 [8] Business Line Data and Key Metrics Changes - The company invested $9.4 million in one new portfolio company and had $8.4 million in other investment activity at par during the third quarter [8] - The company received one full repayment totaling $8.4 million and $5.5 million of other repayments, both at par [8] - 98% of loans were secured and 95% were priced at floating rates, with an average loan per company of $9.5 million [8] Market Data and Key Metrics Changes - The company expects to end Q4 with a portfolio between $930 million and $950 million, with anticipated loan repayments of approximately $29 million [10] - The average yield is projected to decrease from 11.7% in the prior quarter to 11% for Q4 due to lower SOFR rates [15] Company Strategy and Development Direction - The company plans to grow its portfolio to over $1 billion, supported by an increased bank facility from $260 million to $315 million [11] - The company declared a dividend for Q4 at a rate of $0.40 per quarter, payable monthly [11] Management's Comments on Operating Environment and Future Outlook - Management noted that the lower SOFR rate impacted net investment income, and they expect investment activity to pick up in Q4 [13][14] - The company is confident in reaching the $930 million to $950 million portfolio target by year-end, citing 10 to 15 active deals [25] Other Important Information - The company has paid over $273 million in dividends since its IPO, representing $16.28 per share to an investor in the IPO [6] - Spillover income stands at $42 million as of the end of Q3 [22] Q&A Session Summary Question: Was there any temporary driver for NII being below the dividend this quarter? - Management indicated that a lower SOFR rate and lighter investment activity contributed to the lower NII, but nothing unusual was noted [13] Question: Is the current EPS run rate sustainable? - Management suggested that the EPS run rate would depend on other income in Q4, with a reminder that SOFR rates have dropped [15] Question: What is the status of the fee waiver? - Management indicated that a fee waiver might occur in Q2 2025, depending on future performance [19] Question: What is the spillover income? - Spillover income currently stands at $42 million [20] Question: Will the appreciation tied to a potential transaction occur in Q4? - Management confirmed that the expected appreciation is anticipated to occur in Q4 [21] Question: How confident is the company in reaching the $930 million to $950 million target? - Management expressed confidence, citing 10 to 15 active deals [25]

Financial Performance - Stellus Capital reported quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.46 per share, and down from $0.49 per share a year ago, representing an earnings surprise of -13.04% [1] - The company posted revenues of $26.5 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.14%, and down from $27.17 million year-over-year [2] - The current consensus EPS estimate for the coming quarter is $0.42 on revenues of $27.62 million, and for the current fiscal year, it is $1.84 on revenues of $107.6 million [7] Market Performance - Stellus Capital shares have increased by approximately 7.9% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The company has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Earnings Outlook - The estimate revisions trend for Stellus Capital is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The sustainability of the stock's immediate price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] Industry Context - Stellus Capital operates within the Financial - SBIC & Commercial Industry, which is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Stellus Capital may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Core Insights - Stellus Capital Investment Corporation reported solid operating results for the fiscal quarter ended September 30, 2024, with U.S. GAAP net investment income of $0.39 per share and core net investment income of $0.40 per share, covering the declared regular dividend of $0.40 per share [1][4] - The net asset value per share increased by $0.19 from the previous quarter, reaching $13.55 [1][12] - The company has increased its capital base by $55 million through the upsizing of its Credit Facility to $315 million [1][10] Financial Highlights - For the three months ended September 30, 2024, net investment income was $10.26 million, down from $10.82 million in the same period of 2023, with per share amounts of $0.39 and $0.47 respectively [2][4] - Core net investment income for the same period was $10.62 million, compared to $11.16 million in 2023, with per share amounts of $0.40 and $0.49 respectively [2][4] - Total realized income for the quarter was $6.94 million, down from $11.40 million in the prior year [2][4] Portfolio Activity - As of September 30, 2024, the company had investments at fair value totaling $908.7 million, an increase from $874.5 million at the end of 2023 [3] - The total assets increased to $957.1 million from $908.1 million [3] - The company made new investments totaling $17.8 million during the quarter, while repayments of investments amounted to $15.5 million, resulting in net activity of $2.3 million [3] Investment Income and Expenses - Investment income for the three months ended September 30, 2024, was $26.5 million, compared to $27.2 million in the same period of 2023 [4][13] - Gross operating expenses for the quarter were $16.2 million, slightly down from $16.3 million in the previous year [4][13] - The company declared aggregate distributions of $0.40 per share for both the current and prior year periods, totaling $10.6 million and $9.3 million respectively [4][9] Recent Developments - The company has continued to invest in various portfolio companies, with notable investments including PCS Software, Trade Education Acquisition, and Bart & Associates during the quarter [5][6] - Subsequent to September 30, 2024, the company made additional investments in Compost 360 Investments and Norplex Micarta Acquisition, totaling $13.05 million [7][10]

Stellus Capital (SCM) came out with quarterly earnings of $0.50 per share, beating the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 13.64%. A quarter ago, it was expected that this investment company would post earnings of $0.46 per share when it actually produced earnings of $0.44, delivering a surprise of -4.35%. Over the last four quarters, ...

Core Insights - Stellus Capital Investment Corporation reported solid operating results for Q2 2024, with U.S. GAAP net investment income of $0.48 per share and core net investment income of $0.50 per share, covering the declared dividend of $0.40 per share [1][4] - The loan portfolio yielded 11.7% as of June 30, 2024, with total distributions to investors amounting to $262 million over the company's 11 years of operation [1][4] Financial Highlights - Net investment income for Q2 2024 was $11.79 million, compared to $10.41 million in Q2 2023, with per share amounts of $0.48 and $0.49 respectively [2][4] - Core net investment income for Q2 2024 was $12.37 million, or $0.50 per share, down from $10.79 million, or $0.51 per share in Q2 2023 [2][4] - Total realized income for Q2 2024 was $13.75 million, with a per share amount of $0.55, compared to $10.09 million and $0.48 per share in Q2 2023 [2] - The company declared distributions of $0.40 per share for both Q2 2024 and Q2 2023, totaling $10.0 million and $8.7 million respectively [4] Portfolio Activity - As of June 30, 2024, investments at fair value totaled $899.7 million, up from $874.5 million at the end of 2023 [3] - The company made new investments totaling $66.3 million in Q2 2024, compared to $46.5 million in Q2 2023 [3] - The number of portfolio company investments increased to 100 from 93, with debt investments rising to 87 from 81 [3] Liquidity and Capital Resources - As of June 30, 2024, the company had $169.4 million in outstanding borrowings under its credit facility, compared to $160.1 million at the end of 2023 [4] - The company issued 1,855,356 shares under its At-the-Market Program during Q2 2024, raising gross proceeds of $25.8 million at an average price of $13.89 per share [4] Recent Developments - The company declared regular monthly distributions of $0.1333 per share for July, August, and September 2024 [9] - Subsequent to June 30, 2024, the company made an add-on investment of $9,995 in PCS Software, Inc. on July 31, 2024 [8]

HOUSTON, July 31, 2024 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE: SCM) will release its financial results for the second quarter ended June 30, 2024 on Wednesday, August 7, 2024, after the close of the stock market. Stellus Capital Investment Corporation will host a conference call to discuss these results on Thursday, August 8, 2024 at 11:00 AM, Central Time. The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief ...

Core Points - Stellus Capital Investment Corporation has declared a monthly dividend of $0.1333 for July, August, and September 2024, totaling $0.40 per share for the third quarter [1][4] - The regular dividend will be paid to shareholders of record in August, September, and October 2024 [1][4] Dividend Summary - Declared Ex-Dividend Date: July 31, 2024; Record Date: July 31, 2024; Payment Date: August 15, 2024; Amount per Share: $0.1333 [4] - Declared Ex-Dividend Date: August 30, 2024; Record Date: August 30, 2024; Payment Date: September 13, 2024; Amount per Share: $0.1333 [4] - Declared Ex-Dividend Date: September 30, 2024; Record Date: September 30, 2024; Payment Date: October 15, 2024; Amount per Share: $0.1333 [4] Company Overview - Stellus Capital Investment Corporation is an externally-managed, closed-end, non-diversified investment management company regulated as a business development company under the Investment Company Act of 1940 [4] - The company's investment objective is to maximize total return to stockholders through current income and capital appreciation by investing primarily in private middle-market companies with EBITDA between $5.0 million and $50.0 million [4] - Investment strategies include first lien, second lien, unitranche, and mezzanine debt financing, along with corresponding equity investments [4]

PM Images Stellus Capital Investment Corporation (NYSE:SCM) is a solid buy for passive income on the pullback, in my view. The business development company covered its dividend with net investment income in 1Q24 and though the pay-out ratio has risen QoQ, I think that the dividend is reasonably safe, particularly in a moderate inflation environment that incentivizes the central bank to keep interest rates steady at the present level. As Stellus Capital Investment also exposed to a high percentage of floatin ...

Stellus Capital Investment Corporation (NYSE:SCM) Q1 2024 Earnings Conference Call May 10, 2024 12:00 PM ET Company Participants Robert Ladd - Chairman and Chief Executive Officer Todd Huskinson - Chief Financial Officer, Chief Compliance Officer, Treasurer and Secretary Conference Call Participants Christopher Nolan - Ladenburg Thalmann Bryce Rowe - B. Riley Erik Zwick - Hovde Group Operator Good afternoon, ladies and gentlemen, and thank you for standing by. At this time, I would like to welcome everyone ...