Portman Ridge(PTMN) - 2024 Q2 - Quarterly Results

Investment Income - Total investment income for Q2 2024 was $16.3 million, a decrease from $19.6 million in Q2 2023[6] - Net investment income (NII) for Q2 2024 was $6.5 million ($0.70 per share), compared to $7.9 million ($0.83 per share) in Q2 2023, reflecting a 17.7% decrease[7] - Core investment income for Q2 2024 was $16.2 million, a decrease of $3.0 million compared to $19.2 million in Q2 2023[7] - Total investment income for the three months ended June 30, 2024, was $16,337,000, a decrease of 16.7% from $19,626,000 for the same period in 2023[25] - Net investment income for the three months ended June 30, 2024, was $6,477,000, down 18.2% from $7,915,000 in the prior year[25] - Total interest income from non-controlled/non-affiliated investments for the three months ended June 30, 2024, was $11,913,000, a decrease of 19.0% from $14,786,000 in the same period last year[25] - Payment-in-kind income for the three months ended June 30, 2024, was $2,201,000, an increase of 127.5% from $966,000 in the prior year[25] Asset Valuation - Net asset value (NAV) as of June 30, 2024, was $196.4 million ($21.21 per share), down from $210.6 million ($22.57 per share) as of March 31, 2024[2] - Total assets decreased from $549.2 million as of December 31, 2023, to $488.8 million as of June 30, 2024[23] - Total net assets as of June 30, 2024, were $196.4 million, down from $213.5 million at the end of 2023[24] - The net asset value per common share decreased from $22.76 at December 31, 2023, to $21.21 as of June 30, 2024[24] - The fair value of total investments decreased from $467.9 million as of December 31, 2023, to $444.4 million as of June 30, 2024[23] Debt and Borrowings - As of June 30, 2024, the Company had total borrowings of $285.1 million with a weighted average interest rate of 6.9%[12] - The Company had $23.0 million of available borrowing capacity under the Revolving Credit Facility as of June 30, 2024[12] - The company amended its senior secured revolving credit facility, increasing commitments to $200.0 million from $115.0 million and reducing the interest rate margin to 2.50% from 2.80%[1] Shareholder Returns - The company repurchased 79,722 shares at an aggregate cost of approximately $1.6 million during Q2 2024, which was accretive to NAV by $0.03 per share[5] - A cash distribution of $0.69 per share was declared for Q3 2024, payable on August 30, 2024[4] Investment Portfolio - Total investments at fair value as of June 30, 2024, were $444.4 million, down from $471.3 million as of March 31, 2024[7] - Non-accruals on debt investments increased to nine, representing 0.5% of the investment portfolio at fair value as of June 30, 2024, compared to seven non-accruals at 0.5% as of March 31, 2024[7] - Approximately 88.1% of the Company's Debt Securities Portfolio at par value were floating rate, with 81.6% containing SOFR floors between 0.50% and 3.25%[13] - The weighted average contractual interest rate on the interest-earning Debt Securities Portfolio was approximately 12.4% as of June 30, 2024[7] - The Company plans to continue focusing on floating rate investments in the future[14] Expenses and Financial Performance - Total expenses for the three months ended June 30, 2024, were $9,860,000, a decrease of 15.7% compared to $11,711,000 for the same period in 2023[25] - Net realized and unrealized gains (losses) on investments for the three months ended June 30, 2024, were $(12,810,000), compared to $(10,811,000) in the same period last year[25] - The net increase (decrease) in net assets resulting from operations for the three months ended June 30, 2024, was $(6,372,000), compared to $(3,114,000) for the same period in 2023[25] - Management fees for the three months ended June 30, 2024, were $1,680,000, a decrease of 10.1% from $1,869,000 in the same period in 2023[25] Interest Rate Sensitivity - A 1% increase in interest rates would result in an increase of $1.764 million in net investment income, while a 2% increase would yield $3.528 million[15] Share Statistics - The weighted average shares of common stock outstanding for the three months ended June 30, 2024, were 9,293,687, compared to 9,541,722 in the same period last year[25]