New Mountain Finance (US:NMFC)2024-07-31 21:02Financial Performance - Net investment income for Q2 2024 was $38.2 million, or $0.36 per weighted average share, compared to $0.39 per share in Q2 2023[3]. - Net investment income for the three months ended June 30, 2024, was $38,439, a decrease of 3.7% from $39,928 for the same period in 2023[16]. - Total investment income for the three months ended June 30, 2024, was $94,588, slightly down from $95,492 in the prior year, reflecting a decrease of 1.0%[16]. - Basic earnings per share for the latest quarter were $0.32, a decrease from $0.35 in the previous quarter[17]. - Diluted earnings per share for the latest quarter were $0.31, down from $0.32 in the previous quarter[17]. - Distributions declared and paid per share were $0.34, compared to $0.35 in the previous quarter[17]. Asset and Investment Portfolio - As of June 30, 2024, the company's total investment portfolio was valued at $3,227.3 million, with a weighted average yield to maturity (YTM) at cost of approximately 11.1%[5]. - Total investments at fair value rose to $3,213,780, compared to $3,011,322, marking an increase of 6.7%[14]. - The investment portfolio composition included 63% in first lien loans, 12% in senior loan funds, and 9% in second lien loans as of June 30, 2024[9]. - The company reported a strong credit performance, with approximately 97.0% of the portfolio rated green, up from 96.5% at the end of Q1 2024[3]. Financial Position - The net asset value (NAV) per share decreased slightly to $12.74 as of June 30, 2024, from $12.77 as of March 31, 2024[3]. - The net asset value per share decreased to $12.74 from $12.87, a decline of 1.0%[14]. - Total assets increased to $3,423,618, up from $3,159,214, representing a growth of 8.3%[14]. - Total liabilities increased to $2,037,101, up from $1,827,491, reflecting a growth of 11.5%[14]. - The statutory debt to equity ratio was reported at 1.21x as of June 30, 2024, with total statutory debt outstanding of $1,659.5 million[10]. - The company had cash and cash equivalents of $119.6 million and $498.1 million of available capacity on its credit facilities as of June 30, 2024[10]. - Cash and cash equivalents increased to $119,607, up from $70,090, indicating a significant rise of 70.6%[14]. Management and Strategy - The company plans to permanently reduce the base management fee to 1.25% and amend the dividend protection program[3]. - New Mountain Finance Corporation focuses on providing direct lending solutions to U.S. middle market companies, primarily through senior secured loans[19]. - The firm manages approximately $55 billion in assets under management, emphasizing business building and growth[20]. - New Mountain Capital works intensively with management to build the value of portfolio companies[20]. Market Outlook and Risks - Forward-looking statements indicate potential risks including changes in base interest rates and market volatility[21]. - The company operates in defensive industries that offer attractive risk-adjusted returns[19]. Originations and Repayments - Total gross originations for the quarter were $437.3 million, with cash repayments of $299.1 million and asset sales of $5.5 million[5]. - Interest and other financing expenses for the three months ended June 30, 2024, were $33,113, an increase from $31,700 in the prior year[16]. - The number of shares outstanding increased to 107,851,415 from 102,558,859, representing a growth of 5.3%[14]. - Weighted average shares of common stock outstanding for basic earnings were 106,891,784, an increase from 100,937,026 in the previous quarter[17]. - Weighted average shares of common stock outstanding for diluted earnings were 125,759,769, a decrease from 127,016,910 in the previous quarter[17]. Realized Losses - Net realized losses from non-controlled/non-affiliated investments amounted to $(34,966) for the three months ended June 30, 2024, compared to $(7,314) in the same period last year[16].