PennantPark Investment (PNNT) - 2025 Q2 - Quarterly Results

Financial Performance - For the quarter ended March 31, 2025, the investment portfolio totaled $1,213.6 million, with net assets of $488.1 million and a GAAP net asset value per share of $7.48, reflecting a quarterly change of (1.2)%[2] - Net investment income for the quarter was $11.4 million, or $0.18 per share, down from $14.3 million or $0.22 per share in the same quarter of 2024[16] - The company reported net realized losses of $(27.7) million for the quarter, compared to $(31.0) million in the same quarter of 2024[17] - Total investment income for the six months ended March 31, 2025, was $64.9 million, compared to $70.3 million for the same period in 2024[32] - The net increase in net assets resulting from operations was $9,456 million, down from $16,085 million, indicating a decline of about 41.1%[33] - Net investment income per common share decreased to $0.18 from $0.22, representing a decline of 18.2%[33] - The provision for taxes on net investment was $550 million, down from $775 million, reflecting a decrease of approximately 29.0%[33] Portfolio and Investments - The portfolio had net unrealized appreciation of $40.7 million as of March 31, 2025, with a net change in unrealized appreciation of $27.1 million for the quarter[18] - The company invested $176.8 million in the quarter across three new and 52 existing portfolio companies, with a weighted average yield on debt investments of 10.7%[7] - The weighted average yield on debt investments across the portfolio was 12.0% as of March 31, 2025[5] - As of March 31, 2025, the company had three portfolio companies on non-accrual, representing 1.6% of the overall portfolio on a cost basis[5] - The net change in unrealized appreciation on investments and debt was $25,790 million, compared to $32,863 million in the previous period, showing a decrease of about 21.5%[33] - The net increase in unrealized appreciation on non-controlled, non-affiliated investments was $17,918 million, compared to a loss of $1,528 million previously[33] Expenses and Distributions - Total expenses for the quarter were $19.2 million, a decrease from $21.7 million in the same quarter of 2024, primarily due to lower interest and incentive fees[15] - The company declared distributions of $0.24 per share for the quarter, supported by substantial spillover income[5] - Total distributions declared during the three and six months ended March 31, 2025, were $15.7 million and $31.3 million, respectively, compared to $13.7 million and $27.4 million for the same periods in 2024[26] Assets and Liabilities - The company's total assets decreased from $1,389.1 million as of September 30, 2024, to $1,257.8 million as of March 31, 2025[29] - The net asset value per share decreased from $7.56 as of September 30, 2024, to $7.48 as of March 31, 2025[30] - As of March 31, 2025, the company had outstanding borrowings of $314.5 million under the Truist Credit Facility, with a weighted average interest rate of 6.7%[22] - Unused borrowing capacity under the Truist Credit Facility was $185.5 million as of March 31, 2025, compared to $13.5 million as of September 30, 2024[22] - The company had cash and cash equivalents of $32.6 million as of March 31, 2025, down from $49.9 million as of September 30, 2024[23] Strategic Focus - The company plans to rotate equity investments over time to support its dividend stream[5] - The company anticipates continued focus on middle-market companies for investment opportunities, leveraging its established credit platform[34] - The company has no plans to update forward-looking statements made in periodic reports, emphasizing the inherent risks and uncertainties involved[37]