PennantPark Investment (PNNT) - 2024 Q4 - Annual Results

Financial Performance - For the fiscal year ended September 30, 2024, the investment portfolio totaled $1,328.1 million, with net assets of $493.9 million and an adjusted net asset value per share of $7.56, reflecting a quarterly increase of 0.5%[4] - Net investment income for the fourth quarter was $14.4 million, or $0.22 per share, while for the fiscal year it was $60.1 million, or $0.92 per share, showing a decrease from $15.6 million and $65.5 million in the prior year[20] - For the year ended September 30, 2024, total investment income was $143.8 million, a decrease from $145.4 million in the previous year, primarily due to a decrease in dividend income[17] - The company reported total investment income of $143.8 million for the year ended September 30, 2024, compared to $145.4 million in 2023[36] - The net increase in net assets resulting from operations was $48.9 million, or $0.75 per share, compared to a net decrease of $(33.8) million, or $(0.52) per share for the prior year[24] Distributions - The company declared distributions of $0.24 per share for the fourth quarter and $0.88 per share for the fiscal year, compared to $0.24 and $0.88 in the previous year[20] - The company declared distributions of $0.88 per share for the year ended September 30, 2024, totaling $57.4 million, an increase from $0.76 per share and $49.6 million in the prior year[30] Investment Activity - For the year ended September 30, 2024, the company invested $774.6 million in 41 new and 81 existing portfolio companies, with a weighted average yield of 11.7%[9] - The weighted average yield on debt investments at quarter-end was 12.3%, with a portfolio consisting of 152 companies and an average investment size of $8.1 million[7] - The company announced an additional investment of $52.5 million in the PennantPark Senior Loan Fund, increasing the joint venture's investment capacity to over $1.5 billion[12] Portfolio Status - As of September 30, 2024, the company had two portfolio companies on non-accrual status, representing 4.1% and 2.3% of the overall portfolio on a cost and fair value basis, respectively[7] - The total investments at fair value as of September 30, 2024, were $1.328 billion, compared to $1.101 billion in 2023, reflecting a significant increase in investment value[33] Expenses and Borrowings - Total expenses for the fiscal year were $83.7 million, up from $79.8 million in the prior year, mainly due to increased debt-related interest expenses[18] - As of September 30, 2024, the company had $461.5 million in outstanding borrowings under the Truist Credit Facility, with a weighted average interest rate of 7.2%[26] - The company had $13.5 million of unused borrowing capacity under the Truist Credit Facility as of September 30, 2024, down from $262.6 million in the previous year[26] Cash Flow - Operating activities used cash of $(172.4) million for the year ended September 30, 2024, while financing activities provided cash of $183.4 million[28] - Cash and cash equivalents as of September 30, 2024, were $49.9 million, up from $38.8 million in the previous year, indicating improved liquidity[27] Unrealized Gains and Losses - The company reported net realized gains of $2.5 million for the fourth quarter, while the fiscal year saw net realized losses of $(33.6) million[21] - The net change in unrealized appreciation (depreciation) on the Credit Facility for the year ended September 30, 2024, was $(4.4) million, compared to $(3.8) million in the prior year[23] Forward-Looking Statements - The company emphasizes that all statements other than historical facts are forward-looking and involve risks and uncertainties[41] - The company anticipates that actual results may differ materially from forward-looking statements due to various factors[42] - The information provided does not constitute specific legal, tax, or accounting advice, and the company advises consulting qualified professionals[43]