New Mountain Finance (US:NMFC)2024-10-30 20:14Financial Performance - Adjusted net investment income for Q3 2024 was $36.7 million, or $0.34 per weighted average share[3] - Net investment income before income taxes for the three months ended September 30, 2024, was $35,506 thousand, a decrease of 3.9% compared to $40,047 thousand for the same period in 2023[19] - Total investment income for the three months ended September 30, 2024, was $95,327 thousand, slightly up from $94,349 thousand in the same period last year, indicating a year-over-year increase of 1.0%[19] - Basic earnings per share for the latest quarter were $0.22, compared to $0.28 in the previous quarter, reflecting a decrease of 21.4%[20] - Diluted earnings per share also decreased to $0.22 from $0.27, representing a decline of 18.5%[20] - Distributions declared and paid per share were $0.34, down from $0.36 in the previous quarter, a decrease of 5.6%[20] Asset and Portfolio Management - Net asset value per share decreased to $12.62 as of September 30, 2024, from $12.74 as of June 30, 2024[5] - The investment portfolio had a fair value of $3,278.8 million, with first lien investments comprising 63.2% of the total[11] - Total investments at fair value increased to $3,265,271 thousand as of September 30, 2024, up from $3,011,322 thousand at December 31, 2023, representing a growth of approximately 8.4%[17] - The net asset value per share of New Mountain Finance Corporation was $12.62 as of September 30, 2024, down from $12.87 at December 31, 2023, a decrease of 1.9%[17] - Total liabilities increased to $2,046,677 thousand as of September 30, 2024, compared to $1,827,491 thousand at December 31, 2023, marking an increase of approximately 12.0%[17] - The company’s accumulated undistributed earnings decreased to $(38,178) thousand as of September 30, 2024, compared to $(12,344) thousand at December 31, 2023[17] - The number of shares outstanding increased to 107,851,415 as of September 30, 2024, up from 102,558,859 at December 31, 2023, an increase of approximately 5.2%[17] Investment Strategy - Approximately 97.3% of the portfolio is rated green on the internal risk rating system, an increase from 97.0% at the end of Q2 2024[3] - The company maintains a focus on defensive growth businesses, targeting high-quality middle-market companies[8] - As of September 30, 2024, there were no portfolio companies rated red, with only four rated yellow and six rated orange[10] - New Mountain Finance Corporation focuses on providing direct lending solutions to U.S. middle market companies, primarily through senior secured loans[22] - The firm manages over $55 billion in assets, emphasizing business building and growth strategies[23] - The portfolio consists of investments in defensive industries that offer attractive risk-adjusted returns[22] Financial Outlook and Risks - Forward-looking statements indicate potential risks including changes in interest rates and market volatility, which may impact future performance[24] - The company has a differentiated investment approach leveraging deep sector knowledge and operating resources[22] - New Mountain Finance Corporation does not undertake any obligation to publicly update forward-looking statements except as required by law[24] Financing and Expenses - Interest and other financing expenses rose to $37,661 thousand for the three months ended September 30, 2024, compared to $31,425 thousand in the prior year, reflecting an increase of 19.5%[19] - The company generated $146.2 million in gross originations, offset by $100.6 million in repayments and $1.5 million in asset sales during the quarter[3]