Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines high-quality dividend stocks with other asset classes such as Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The investment approach focuses on creating a balanced portfolio that not only provides income through dividends but also captures growth, aiming for a total return that aligns with the performance of the S&P 500 [1]. - The strategy is designed to be efficient in boosting investment income while maintaining a solid foundation of classic dividend growth stocks [1].

WhiteHorse Finance (WHF) Q1 2025 Earnings Call May 13, 2025 04:30 PM ET Company Participants Robert Brinberg - PresidentStuart Aronson - CEO & DirectorJoyson Thomas - CFO & Principal Accounting OfficerMelissa Wedel - Vice President, U.S. Equities ResearchRobert Dodd - Director - Finance Operator Good afternoon. My name is Margo, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the WhiteHorse Finance First Quarter twenty twenty five Earnings Conference Call. Our hosts ...

Financial Data and Key Metrics Changes - The company's Q1 2025 GAAP net investment income and core NII was $6,800,000 or $0.02 per share, down from $8,000,000 or $0.03 per share in Q4 2024, and below the quarterly distribution of $0.03 per share [6][18] - NAV per share at the end of Q1 was $12.11, representing a 1.6% decrease from the prior quarter, impacted by net realized losses and markdowns totaling $2,600,000 [6][18] - The weighted average effective yield on income-producing debt investments decreased to 12.1% at the end of Q1 from 12.5% in Q4 2024 [9][18] Business Line Data and Key Metrics Changes - Gross capital deployments in Q1 totaled $45,500,000, with net deployments of $26,100,000 after repayments and sales of $19,400,000 [6][9] - The portfolio mix at the end of Q1 consisted of approximately 90.3% first lien, senior secured debt, with a mix of two-thirds sponsor and one-third non-sponsor deals [7][9] - Nonaccrual investments totaled 8.8% of the debt portfolio, up from 7.2% in the prior quarter [13][18] Market Data and Key Metrics Changes - The STRS JV portfolio had an aggregate fair value of $310,200,000 with an average effective yield of 10.8%, down from 11.1% in Q4 [8][20] - The lending market has seen a 25 to 50 basis point increase in pricing due to increased volatility, but most of that premium has dissipated recently [15][18] - The M&A market has slowed significantly, with many deals being put on hold due to uncertainty in the economic environment [41][42] Company Strategy and Development Direction - The company continues to focus on the non-sponsor market, where there are better risk-return profiles and less competition [16][18] - The company added a new coverage region in Nashville, Tennessee, to enhance non-sponsor and off-the-run sponsor origination capabilities [16][18] - The company is actively monitoring the debt capital markets for opportunities to optimize or refinance its capital structure [21][18] Management's Comments on Operating Environment and Future Outlook - Management noted that challenges in the portfolio are more company-specific rather than related to the overall economy, with no signs of a recession yet [10][18] - The company expects a decent amount of refinancing activity in the second half of the year as prepayment penalties on higher-rate deals expire [46][18] - Management is cautious about the environment for deal closures in Q3, anticipating a quiet period due to the current market conditions [42][18] Other Important Information - The company declared a first-quarter distribution of $0.03 per share, consistent with the prior quarter, and will continue to evaluate its quarterly distribution based on core earnings power [22][18] - Cash resources at the end of Q1 were approximately $19,600,000, including $8,200,000 in restricted cash [21][18] Q&A Session Summary Question: Update on Telestream and its return to accrual status - Management indicated progress on restructuring Telestream, hoping to complete it by May, which would allow a portion of the existing debt to return to cash-paying status [26][27] Question: Dividend update and spillover income - Spillover income was approximately $28,400,000, with a current dividend run rate equating to about $8,950,000 in distributions, indicating a shortfall for Q1 [33][35] Question: Market conditions and bid-ask spreads - Management noted that good companies without significant tariff or recession risk are trading at high multiples, while those with risks are seeing buyers being conservative [40][41]

WhiteHorse Finance, Inc. Earnings Presentation Quarter Ended March 31, 2025 NASDAQ: WHF (Common Stock) NASDAQ: WHFCL (7.875% Notes due 2028) Important Information and Forward Looking Statements References in this presentation to "WHF", "WhiteHorse Finance", "we", "us", "our" and "the Company" refer to WhiteHorse Finance, Inc. This presentation and the information and views included herein do not constitute investment advice, or a recommendation or an offer to enter into any transaction with the Company or a ...

WhiteHorse Finance (WHF) came out with quarterly earnings of $0.29 per share, missing the Zacks Consensus Estimate of $0.33 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -12.12%. A quarter ago, it was expected that this lender to small companies would post earnings of $0.39 per share when it actually produced earnings of $0.34, delivering a surprise of -12.82%.Over the last four ...

Investment Income - Total investment income for Q1 2025 was $18.8 million, down from $25.5 million in Q1 2024, a decrease of $6.7 million[291]. - Net investment income for Q1 2025 was $6.8 million, compared to $10.8 million in Q1 2024, reflecting a decrease of $4.0 million[292]. - Interest income excluding payment-in-kind (PIK) for Q1 2025 was $13.9 million, down from $18.0 million in Q1 2024, a decline of $4.0 million[293]. - PIK income decreased to $691,000 in Q1 2025 from $2.0 million in Q1 2024, a decline of $1.3 million[294]. - Fee and dividend income for Q1 2025 was $496,000, down from $666,000 in Q1 2024, a decrease of $170,000[295]. - Interest and dividend income from STRS JV decreased to $3.7 million in Q1 2025 from $4.8 million in Q1 2024, a decline of $1.1 million[295]. Expenses and Net Assets - Total expenses for Q1 2025 were $12.0 million, down from $14.7 million in Q1 2024, a decrease of $2.7 million[291]. - Net increase in net assets resulting from operations for Q1 2025 was $4.3 million, compared to $6.0 million in Q1 2024, a decrease of $1.7 million[291]. - Total expenses for the three months ended March 31, 2025, were $11.958 million, a decrease of $2.702 million (18.4%) from $14.660 million in the same period of 2024[297]. - Interest expense decreased by $1.145 million (15.6%) to $6.185 million for the three months ended March 31, 2025, compared to $7.330 million in 2024, due to lower average borrowings and interest rates[297]. - Performance-based incentive fees fell by $0.993 million (36.7%) to $1.711 million for the three months ended March 31, 2025, from $2.704 million in 2024, attributed to lower net investment income[298]. Investment Portfolio - As of March 31, 2025, the investment portfolio had an aggregate fair value of $651.0 million, consisting of 134 positions in 74 companies[347]. - The weighted average effective yield of the portfolio was 9.6%, with income-producing debt investments yielding 12.1%[347]. - For the three months ended March 31, 2025, the company invested $47.2 million in new and existing portfolio companies, with repayments and sales totaling $37.5 million[350]. - The investment portfolio as of December 31, 2024, had a fair value of $642.2 million, with an average investment size of $4.3 million[348]. - The company actively monitors portfolio performance, with a risk rating system assessing investments on a scale of 1 to 5[353]. Cash and Assets - As of March 31, 2025, cash and cash equivalents totaled $19.6 million, including $8.2 million in restricted cash, compared to $27.8 million in total cash as of December 31, 2024[312]. - STRS JV had total assets of $323.5 million as of March 31, 2025, an increase from $309.1 million as of December 31, 2024[314]. - The company had commitments to fund approximately $31.9 million in revolving lines of credit to portfolio companies as of March 31, 2025, up from $26.4 million at the end of 2024[309]. - As of March 31, 2025, the total portfolio value was $310.16 million, an increase from $294.96 million as of December 31, 2024, representing a growth of approximately 5.3%[322]. Debt and Borrowings - The Credit Facility allows for borrowings up to $335.0 million, with an accordion feature to expand the limit to $375.0 million[330]. - As of March 31, 2025, there were $170.1 million in outstanding borrowings under the Credit Facility, with approximately $164.9 million available to be drawn[338]. - The 5.375% 2025 Notes have an aggregate principal amount of $40 million, maturing on October 20, 2025, with interest payable semiannually[340]. - The 4.000% 2026 Notes, totaling $75 million, were issued to fund investments and repay outstanding debt, maturing on December 15, 2026[344]. - The annual interest rate for the Credit Facility was reduced to 2.25% as of January 17, 2025[329]. Market Risks - The company is subject to financial market risks, particularly interest rate fluctuations, which could significantly impact net investment income and the value of common stock[392]. - A hypothetical 300 basis point increase in interest rates could lead to a net decrease in interest income of $16.582 million and an increase in interest expense of $5.104 million, resulting in a net decrease of $11.478 million[394]. - Nearly all performing floating rate investments in the portfolio have interest rate floors, limiting benefits from interest rate increases until they exceed these floors[395]. - The company may utilize hedging instruments to mitigate interest rate fluctuations, although this could limit participation in benefits from lower interest rates[398]. Currency Contracts - For the three months ended March 31, 2025, the realized gain on forward currency contracts was $22,000, compared to a loss of $28,000 in the same period of 2024[399]. - The unrealized depreciation on forward currency contracts for the three months ended March 31, 2025, was $(20,000), while there was an appreciation of $52,000 in 2024[399]. - The total net realized and unrealized gains on forward currency contracts for the three months ended March 31, 2025, amounted to $2,000, down from $24,000 in 2024[399].

Exhibit 99.1 WhiteHorse Finance, Inc. Announces First Quarter 2025 Earnings Results and Declares Quarterly Distribution of $0.385 Per Share NEW YORK, May 12, 2025 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the first quarter ended March 31, 2025. In addition, the Company's board of directors has declared a distribution of $0.385 per share with respect to the quarter ended March 31, 2025. The distribution will be pay ...

NEW YORK, May 12, 2025 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the first quarter ended March 31, 2025. In addition, the Company's board of directors has declared a distribution of $0.385 per share with respect to the quarter ended March 31, 2025. The distribution will be payable on July 3, 2025 to stockholders of record as of June 19, 2025.Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, ...

NEW YORK, April 28, 2025 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced that it will release its first quarter financial results for the period ended March 31, 2025 on Monday, May 12, 2025. The Company will discuss its financial results on a conference call on Tuesday, May 13, 2025 at 4:30 p.m. ET.To access the teleconference, please dial 800-267-6316 (domestic) or +1 203-518-9783 (international) approximately 10 minutes before the teleconferen ...

Core Insights - The article emphasizes the importance of a hybrid investment strategy that combines high-quality dividend stocks with other investment vehicles such as Business Development Companies, REITs, and Closed End Funds to enhance income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a balanced approach to investing, focusing on both growth and income to maximize investment returns [1]. - The strategy aims to create a solid base of classic dividend growth stocks, which can lead to significant bill-paying potential over time [1]. Performance Comparison - The total return from this hybrid investment strategy is reported to be on par with the S&P 500 index, indicating its effectiveness in generating returns [1].