Horizon Technology Finance(US:HRZN)2019-05-01 15:28Financial Data and Key Metrics Changes - The company reported total investment income of $8.3 million for Q1 2019, a 16% increase from $7.2 million in the prior year period, primarily due to higher interest income from a larger loan portfolio [34] - Net investment income per share for Q1 was $0.28, compared to $0.34 in Q4 2018 and $0.28 in Q1 2018 [37] - The company's NAV as of March 31, 2019, was $11.55, down from $11.64 at the end of 2018 and $11.65 a year earlier [39] Business Line Data and Key Metrics Changes - The company funded six new loans totaling $40 million in Q1, increasing the portfolio on a net basis by $17 million from the end of 2018 [11] - The weighted average debt investment yield for Q1 was 14.4%, consistent with the previous year's Q1 but down from 16.7% in Q4 2018 [35] - The company maintained a backlog of $60 million at the end of Q1, up from $42 million at the end of Q4 2018 [20] Market Data and Key Metrics Changes - The venture capital environment saw nearly $33 billion invested in VC-backed companies in Q1 2019, maintaining strong funding levels [25] - VC fundraising reached $9.6 billion in Q1 2019, slightly below last year's record pace but still solid [25] - The demand for financing in the life-science healthcare technology markets remained robust, with significant funding activities noted [27] Company Strategy and Development Direction - The company aims to drive additional portfolio growth and sustainable net investment income, with a robust pipeline and backlog indicating strong demand for tech and life science investments [14][33] - The predictive pricing strategy is expected to enhance portfolio quality and yield, positioning the company for long-term growth [15][33] - The joint venture is seen as a long-term value generator for shareholders, with new investments funded through a credit facility [12][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current portfolio and the ability to generate additional value for shareholders, citing a strong demand for tech and life science investments [10][33] - The company noted that the IPO window remains open, providing opportunities for VCs to generate returns and reinvest capital [26] - Management highlighted the importance of maintaining disciplined underwriting practices while pursuing new investment opportunities [17][32] Other Important Information - The company completed a common equity offering generating $23.3 million in net proceeds, enhancing its liquidity profile [9] - The company has a share repurchase program extended until June 30, 2020, for the repurchase of $5 million of common stock [44] - The company reported no new non-accruals for the seventh consecutive quarter, indicating stable asset quality [13] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded without further inquiries [46]