Fidus Investment (FDUS) - 2025 Q1 - Quarterly Results

First Quarter 2025 Financial Highlights Fidus Investment Corporation reported strong Q1 2025 financial results, marked by significant investment income, NAV growth, and strategic portfolio management Financial Highlights Fidus Investment Corporation reported Q1 2025 total investment income of $36.5 million, net investment income of $18.2 million, and a $19.39 NAV per share, reflecting strong quarterly performance Q1 2025 Key Financial Metrics | Metric | Value | Per Share | | :--- | :--- | :--- | | Total Investment Income | $36.5 million | N/A | | Net Investment Income (NII) | $18.2 million | $0.53 | | Adjusted NII | $18.5 million | $0.54 | | Net Asset Value (NAV) | $677.9 million | $19.39 | | Investments Made | $115.6 million | N/A | | Proceeds from Repayments/Realizations | $57.3 million | N/A | | Spillover Income | $47.4 million | $1.36 | Management Commentary Management emphasized a disciplined investment approach, focusing on high-quality businesses, which led to successful equity monetizations and a healthy portfolio - The company continues its disciplined strategy of investing in high-quality, cash-flow-generative businesses with defensive characteristics[3] - Monetized two equity investments for a net realized gain of $11.5 million, or $0.33 per share, which helped increase the NAV[3] - The investment portfolio is considered well-diversified and healthy, constructed to generate attractive risk-adjusted returns[3] Detailed Financial Results The company's Q1 2025 operating results show a 5.3% increase in total investment income and a 3.4% rise in net investment income year-over-year Operating Results (Q1 2025 vs. Q1 2024) Q1 2025 saw total investment income rise 5.3% to $36.5 million, with net investment income increasing 3.4% to $18.2 million, despite a decrease in NII per share due to higher share count Comparison of Operating Results (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Investment Income | $36,496 | $34,651 | 5.3% | | Total Expenses | $18,273 | $17,044 | 7.2% | | Net Investment Income (NII) | $18,222 | $17,627 | 3.4% | | NII per Share | $0.53 | $0.57 | (7.0%) | | Adjusted NII | $18,509 | $18,126 | 2.1% | | Adjusted NII per Share | $0.54 | $0.59 | (8.5%) | | Net Realized Gain on Investments | $11,480 | $1,799 | 538.1% | - The $1.8 million YoY increase in total investment income was mainly due to a $2.4 million rise in interest income from a larger average debt portfolio and an $0.8 million increase in dividend income, partially offset by a $1.2 million decrease in interest on idle funds[6] - Total expenses rose by $1.3 million YoY, primarily driven by a $0.8 million increase in interest and financing expenses and a $0.6 million net increase in base management fees[7] Portfolio, Investment Activity, and Liquidity This section details the company's investment portfolio status, recent investment activities, and its current liquidity and capital resources Portfolio Status and Investment Activities As of March 31, 2025, the investment portfolio reached $1.2 billion across 92 companies, with a 13.2% weighted average yield on debt investments - The investment portfolio totaled $1.2 billion at fair value as of March 31, 2025, spread across 92 active portfolio companies[10] - The weighted average yield on debt investments was 13.2%, with variable-rate debt constituting $740.3 million, or 72.8% of the debt portfolio's fair value[10] - Invested in seven new portfolio companies during Q1 2025, including AMOpportunities, Inc., Case IQ, and Fraser Steel LLC[11][12] Liquidity and Capital Resources Fidus maintained strong liquidity with $67.5 million in cash and $140.0 million available under its credit facility, bolstered by recent capital raises Liquidity and Capital as of March 31, 2025 | Item | Amount | | :--- | :--- | | Cash and cash equivalents | $67.5 million | | Unused Credit Facility | $140.0 million | | SBA debentures outstanding | $182.0 million | | Notes outstanding | $350.0 million | | Weighted average interest rate on debt | 4.8% | - Raised net proceeds of $20.7 million from the at-the-market (ATM) equity program during the quarter[11] - Received net proceeds of $96.9 million from the issuance of $100.0 million in 6.75% notes due March 2030[11] Dividends and Corporate Actions This section outlines the declared dividends for the second quarter of 2025 and significant corporate events occurring after the quarter-end Second Quarter 2025 Dividends The Board declared total dividends of $0.54 per share for Q2 2025, comprising a $0.43 base and an $0.11 supplemental dividend Q2 2025 Dividend Declaration | Dividend Type | Amount per Share | | :--- | :--- | | Base Dividend | $0.43 | | Supplemental Dividend | $0.11 | | Total Dividend | $0.54 | - The dividend is payable on June 25, 2025, to stockholders of record as of June 13, 2025[13] - The company has a dividend reinvestment plan (DRIP) that automatically reinvests dividends unless a stockholder opts out[15] Subsequent Events Post-quarter, Fidus made a $5.8 million investment in Laboratory Testing, LLC, exited Elements Brands, LLC, and issued additional SBA debentures - On April 15, 2025, invested a total of $5.8 million in debt and equity in Laboratory Testing, LLC[16] - On April 23, 2025, exited debt investments in Elements Brands, LLC, receiving full payment of $3.7 million[16] - On May 5, 2025, issued an additional $10.0 million in SBA debentures with a fixed interim interest rate of 5.163%[17] Financial Statements and Supplemental Information This section presents the consolidated financial statements, including balance sheets and statements of operations, along with a reconciliation of non-GAAP adjusted net investment income Consolidated Statements of Assets and Liabilities As of March 31, 2025, total assets increased to $1.24 billion, driving total net assets to $677.9 million and NAV per share to $19.39 Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Investments, at fair value | $1,154,408 | $1,090,506 | | Cash and cash equivalents | $67,478 | $57,159 | | Total Assets | $1,241,982 | $1,164,112 | | Total Debt (SBA & Notes) | $521,427 | $417,261 | | Total Liabilities | $564,052 | $508,446 | | Total Net Assets | $677,930 | $655,666 | | NAV per Share | $19.39 | $19.33 | Consolidated Statements of Operations For Q1 2025, the company reported $36.5 million in total investment income and a net increase in net assets from operations of $19.7 million, or $0.58 per share Q1 2025 Statement of Operations Highlights (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Investment Income | $36,496 | $34,651 | | Total Expenses, net | $18,273 | $17,044 | | Net Investment Income | $18,222 | $17,627 | | Total Net Realized Gain | $13,330 | $1,743 | | Total Net Change in Unrealized (Depreciation) | ($9,793) | $1,218 | | Net Increase in Net Assets | $19,658 | $20,123 | | Net Increase per Share | $0.58 | $0.65 | Reconciliation of Adjusted Net Investment Income (Non-GAAP) The company's non-GAAP Adjusted NII for Q1 2025 was $18.5 million, or $0.54 per share, after excluding capital gains incentive fees - Adjusted NII is a non-GAAP measure that excludes capital gains incentive fee expenses or reversals, which management believes is a useful indicator of operations exclusive of these items[5][29] Reconciliation of NII to Adjusted NII (in thousands, except per share) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Investment Income (NII) | $18,222 | $17,627 | | Capital gains incentive fee expense | $287 | $499 | | Adjusted NII | $18,509 | $18,126 | | NII per Share | $0.53 | $0.57 | | Capital gains incentive fee per share | $0.01 | $0.02 | | Adjusted NII per Share | $0.54 | $0.59 |