Financial Data and Key Metrics Changes - Q3 2024 GAAP net investment income and core NII was $9.2 million or $0.394 per share, slightly below Q2's $9.3 million or $0.40 per share [8][30] - NAV per share at the end of Q3 was $12.77, a 5.1% decrease from the prior quarter, impacted by net markdowns totaling $15.9 million [9] - Total value of the investment portfolio was $654.3 million, down from $660 million at the end of the previous quarter [14] Business Line Data and Key Metrics Changes - Gross capital deployments in Q3 were $51 million, with net deployments of $20.8 million after repayments and sales of $30.2 million [10] - The weighted average effective yield on income-producing debt investments was 13.1%, down from approximately 13.8% in Q2 2024 [15] - Non-accrual investments totaled 5.6% of the total debt portfolio, up from 3.6% in the prior quarter [20] Market Data and Key Metrics Changes - The lending market remains aggressive, with middle market pricing compressing down to spreads of SOFR 475 to SOFR 525 [21] - The non-sponsor market is viewed as more attractive, supporting leverage of only three to 4.5 times, with pricing between SOFR 600 to SOFR 800 [22][23] Company Strategy and Development Direction - The company is focusing on the non-sponsor market due to better risk-return profiles and less competition compared to the sponsor market [23][67] - There is an expectation that the ratio of non-sponsor deals in the portfolio will rise over the next quarters if current market conditions persist [67] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about the competitive environment, noting that many deals are being structured with excessive leverage [52][56] - There is skepticism regarding the yield curve and future interest rates, with management cautious about the sustainability of current market conditions [53][26] Other Important Information - The company declared a fourth quarter distribution of $0.385 per share, consistent with the prior quarter, and a special distribution of $0.245 per share [38][39] - The company has approximately $20.7 million in cash resources and $173 million of undrawn capacity under its revolving credit facility [36] Q&A Session Summary Question: Follow-up on the deal environment and portfolio deleveraging - Management indicated that while repayments are expected to be elevated, they do not foresee a decrease in leverage due to existing mandates [42][43] Question: Quality of investment income and PIK income - Management stated that they seek to minimize PIK income in new deals, focusing on cash income, and that most PIK in the portfolio relates to troubled accounts [46][48] Question: Competitive environment and sustainability - Management acknowledged that the current competitive environment is aggressive, with many deals being structured with high leverage, and expressed skepticism about the sustainability of such terms [51][56] Question: Strategy regarding American Crafts - Management confirmed that due to the loss of a major customer, they are exploring a sale of American Crafts rather than pursuing a turnaround, marking a shift from their typical strategy [60][61] Question: Non-sponsor market dynamics - Management highlighted that there is limited competition in the core mid-market and lower mid-market for non-sponsor deals, allowing for more favorable terms [68]

| --- | --- | |----------------------------------------------------------------------------------|-------| | | | | | | | | | | | | | WhiteHorse Finance, Inc. Earnings Presentation Quarter Ended September 30, 2024 | | | | | NASDAQ: WHF (Common Stock) NASDAQ: WHFCL (7.875% Notes due 2028) Important Information and Forward Looking Statements 1 References in this presentation to "WHF", "WhiteHorse Finance", "we", "us", "our" and "the Company" refer to WhiteHorse Finance, Inc. This presentation and the informati ...

Company Performance - WhiteHorse Finance (WHF) reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.42 per share, and down from $0.46 per share a year ago, representing an earnings surprise of -7.14% [1] - The company posted revenues of $22.85 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 0.95%, and down from $25.87 million year-over-year [2] - Over the last four quarters, WhiteHorse has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Market Comparison - WhiteHorse shares have lost about 4.9% since the beginning of the year, while the S&P 500 has gained 24.3% [3] - The current consensus EPS estimate for the coming quarter is $0.41 on revenues of $23.34 million, and for the current fiscal year, it is $1.70 on revenues of $95.37 million [7] Industry Outlook - The Financial - SBIC & Commercial Industry, to which WhiteHorse belongs, is currently in the bottom 27% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5][6]

Financial Performance - For the quarter ended September 30, 2024, WhiteHorse Finance reported total investment income of $22.9 million, a decrease of 2.7% from $23.5 million in the previous quarter[3] - The net investment income for the same period was $9.2 million, down 1.5% from $9.3 million in the prior quarter, resulting in a net investment income per share of $0.394[3] - The fair value of the investment portfolio decreased to $654.3 million from $660.0 million, reflecting a decline of 0.9%[4] - Net realized gains for the quarter were $39, a significant improvement compared to a loss of $93 in the previous quarter[3] Investment Activity - The company made new investments totaling $49.0 million in seven new portfolio companies during the quarter[5] - The company transferred assets totaling $15.1 million to STRS JV in exchange for cash proceeds during the quarter[6] Portfolio Composition - The portfolio consisted of 129 positions across 73 companies, with a weighted average effective yield of 10.6% on income-producing debt investments[4] - The overall portfolio comprised approximately 79.0% first lien secured loans, indicating a strong focus on secured investments[4] Distribution - WhiteHorse Finance declared a quarterly distribution of $0.385 per share for the quarter ended September 30, 2024, payable on January 3, 2025[7] Market Strategy - WhiteHorse Finance continues to focus on segments of the lending market where it believes it has a competitive advantage, despite challenges in the broader lending market[2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission file number: 814-00967 WHITEHORSE FINANCE, INC. (Exact Name of Registrant as Specified in its Charter) 45-424775 ...

NEW YORK, Nov. 7, 2024 /PRNewswire/ -- WhiteHorse Finance, Inc. ("WhiteHorse Finance" or the "Company") (Nasdaq: WHF) today announced its financial results for the quarter ended September 30, 2024. In addition, the Company's board of directors has declared a distribution of $0.385 per share with respect to the quarter ended September 30, 2024. The distributions will be payable on January 3, 2025 to stockholders of record as of December 20, 2024. Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, ...

NEW YORK, Oct. 15, 2024 /PRNewswire/ -- WhiteHorse Finance, Inc. (the "Company") (Nasdaq: WHF) today announced that its board of directors has declared a special distribution of $0.245 per share, which will be payable on December 10, 2024 to stockholders of record as of October 31, 2024. Distributions are paid from taxable earnings and may include a return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of ...

Somogyvari/E+ via Getty Images Overview When I previously covered WhiteHorse Finance (NASDAQ:WHF), the business development company provided solid distribution coverage through earnings but lacked any impactful NAV growth over time. I wanted to take some time to revisit WHF since their Q2 earnings were recently reported. WHF is an externally managed business development company that generates its earnings by making various forms of debt investments to lower middle market companies. WHF has a public inceptio ...

WhiteHorse Finance (NASDAQ:WHF) Q2 2024 Earnings Conference Call August 8, 2024 9:00 AM ET Company Participants Robert Brinberg – President-Rose & Company Stuart Aronson – Chief Executive Officer Joyson Thomas – Chief Financial Officer Conference Call Participants Bryce Rowe – B. Riley Sean-Paul Adams – Raymond James Operator Good morning. My name is Jamie, and I will be your conference operator today. At this time, I would like to welcome everyone to the WhiteHorse Finance Second Quarter 2024 Earnings Conf ...

WhiteHorse Finance (WHF) came out with quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.45 per share. This compares to earnings of $0.46 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -11.11%. A quarter ago, it was expected that this lender to small companies would post earnings of $0.46 per share when it actually produced earnings of $0.47, delivering a surprise of 2.17%. Over the last four ...