Fidus Investment (FDUS) - 2024 Q1 - Quarterly Results

Fidus Investment Corporation Q1 2024 Earnings Release Overview and Financial Highlights Fidus reported strong Q1 2024 results, with Adjusted Net Investment Income of $0.59 per share and a Q2 2024 dividend of $0.59 per share Q1 2024 Key Financial Metrics | Metric | Value | Per Share | | :--- | :--- | :--- | | Total Investment Income | $34.7 million | - | | Net Investment Income (NII) | $17.6 million | $0.57 | | Adjusted NII | $18.1 million | $0.59 | | Net Asset Value (NAV) | $608.3 million | $19.36 | | Estimated Spillover Income | $41.7 million | $1.33 | - The company invested $145.9 million in debt and equity securities, including seven new portfolio companies, resulting in net originations of $85.7 million after accounting for $60.2 million in repayments and realizations[3][5] - The Board of Directors declared a total dividend of $0.59 per share for Q2 2024, comprising a base dividend of $0.43 and a supplemental dividend of $0.16[1] Financial Results Analysis Q1 2024 total investment income rose 19.3% to $34.7 million, with expenses up 18.8%, leading to NII per share of $0.57 Investment Income Total investment income increased by $5.6 million (19.3%) year-over-year, driven by higher interest, fee, and idle cash income Investment Income Comparison (Q1 2024 vs Q1 2023) | Income Category | Q1 2024 ($ thousands) | Q1 2023 ($ thousands) | % Change | | :--- | :--- | :--- | :--- | | Interest Income | 28,138 | 25,956 | 8.4% | | Payment-in-kind Interest | 2,049 | 637 | 221.7% | | Fee Income | 2,359 | 1,436 | 64.3% | | Interest on Idle Funds | 1,708 | 643 | 165.6% | | Total Investment Income | 34,651 | 29,056 | 19.3% | Expenses Total expenses for Q1 2024 increased by $2.7 million (18.8%) to $17.0 million, primarily due to higher interest, financing, and incentive fees - Expense increase was driven by a $0.8 million rise in interest and financing expenses, a $0.5 million net increase in base management fees, a $0.9 million increase in income incentive fees, and a $0.3 million increase in accrued capital gains incentive fees[8] Net Investment Income and Net Assets Net investment income increased 19.7% to $17.6 million, with NII per share at $0.57 and net assets from operations rising to $20.1 million Per Share Results Comparison (Q1 2024 vs Q1 2023) | Metric (per share) | Q1 2024 | Q1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Investment Income | $0.57 | $0.59 | ($0.02) | | Adjusted Net Investment Income | $0.59 | $0.60 | ($0.01) | | Net Increase in Net Assets | $0.65 | $0.62 | $0.03 | - Net realized gain on investments for Q1 2024 was $1.8 million, a significant increase from the $0.1 million gain in the same period in 2023[10] Portfolio and Investment Activities As of March 31, 2024, the investment portfolio was valued at $1.05 billion across 87 companies, with a 14.0% weighted average yield Portfolio Snapshot as of March 31, 2024 | Metric | Value | | :--- | :--- | | Total Fair Value | $1,048.1 million | | Active Portfolio Companies | 87 | | Fair Value as % of Cost | 102.2% | | Weighted Average Yield on Debt | 14.0% | | % of Debt at Variable Rate | 72.5% | - New investments in Q1 2024 included seven new portfolio companies: Donovan Food Brokerage, LLC; Informatics Holdings, Inc. (Wasp Barcode Technologies); Janus Health Technologies, Inc., LLC; Quantum IR Technologies, LLC, LLC; R.F. Fager Company LLC, LLC; ServicePower, Inc., LLC; and W50 Holdings, LLC, LLC[12][14] Liquidity, Capital Resources, and Dividends Fidus ended Q1 2024 with $27.1 million in cash and $77.5 million in credit capacity, declaring a Q2 2024 dividend of $0.59 per share - As of March 31, 2024, the company had $27.1 million in cash and cash equivalents and $77.5 million of unused capacity under its credit facility[12] - Total debt outstanding included $175.0 million in SBA debentures and $250.0 million in notes, with a combined weighted average interest rate of 4.6%[12] - The board declared a Q2 2024 dividend totaling $0.59 per share ($0.43 base + $0.16 supplemental), payable on June 26, 2024, to stockholders of record as of June 19, 2024[13] Financial Statements Consolidated Statements of Assets and Liabilities As of March 31, 2024, total assets were $1.09 billion, total investments $1.05 billion, and NAV per share was $19.36 Balance Sheet Summary (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Investments, at fair value | $1,048,071 | $957,906 | | Cash and cash equivalents | $27,122 | $119,131 | | Total Assets | $1,092,743 | $1,090,898 | | Total Liabilities | $484,403 | $501,424 | | Total Net Assets | $608,340 | $589,474 | | NAV per share | $19.36 | $19.37 | Consolidated Statements of Operations Q1 2024 saw total investment income of $34.7 million, net investment income of $17.6 million ($0.57 per share), and net assets increase of $20.1 million ($0.65 per share) Income Statement Summary (Q1 2024, in thousands) | Account | Amount | | :--- | :--- | | Total Investment Income | $34,651 | | Total Expenses, net | $17,044 | | Net Investment Income | $17,627 | | Net Gain on Investments | $3,017 | | Net Increase in Net Assets | $20,123 | | NII per share | $0.57 | | Net Increase in Net Assets per share | $0.65 | Non-GAAP Reconciliation: Adjusted Net Investment Income This section reconciles GAAP NII to Adjusted NII, reporting Q1 2024 Adjusted NII of $18.1 million ($0.59 per share), excluding capital gains incentive fees - Adjusted NII is presented as a useful indicator of operations exclusive of any capital gains incentive fee expense or reversal attributable to realized and unrealized gains and losses[6][29] Reconciliation of NII to Adjusted NII (Q1 2024, in thousands) | Metric | Amount | Per Share | | :--- | :--- | :--- | | Net Investment Income (GAAP) | $17,627 | $0.57 | | Add: Capital gains incentive fee | $499 | $0.02 | | Adjusted Net Investment Income (Non-GAAP) | $18,126 | $0.59 |