Rand Capital(US:RAND)2021-05-10 20:31Financial Data and Key Metrics Changes - Total investment income for Q1 2021 increased approximately 60% year-over-year to $1 million, equating to $0.39 per share [6][16] - Net asset value rose 16.9% to $20.87 per share, primarily due to the increase in fair value of the investment in ACV Auctions [7] - GAAP net investment loss was reported at $0.84 per share, attributed to $2.6 million in non-cash expenses related to capital gains incentive fees [7][19] - Adjusted net investment income was $0.16 per share when excluding the accrued capital gains incentive fees [19] Business Line Data and Key Metrics Changes - The number of companies contributing to investment income nearly doubled compared to the prior year [6] - The portfolio composition at quarter-end consisted of approximately 56% equity investments, 34% fixed-rate debt investments, and 10% in dividend-paying publicly traded BDCs [9] Market Data and Key Metrics Changes - The fair value of investments in publicly traded BDCs totaled approximately $5.1 million at quarter-end [12] - The largest investment during the quarter was a $2.8 million term loan with warrants from Seybert's Billiards Supply [10] Company Strategy and Development Direction - The company is transitioning its portfolio from equity investments to income-producing investments, with a focus on dividend-paying assets [6][25] - The company plans to continue adjusting its portfolio mix to drive returns and support a growing dividend [25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the strong liquidity position with approximately $18 million available for new investments, which includes $14.9 million in cash and an undrawn SBA commitment of $3 million [22] - The company aims to distribute a significant portion of its income to shareholders in the form of cash dividends, maintaining an annualized dividend rate of $0.40 based on conservative estimates [23][24] Other Important Information - The company announced its first regular quarterly dividend of $0.10 per share during Q1 2021, with a second quarter dividend also set at $0.10 per share [8][23] - A share repurchase program was renewed, authorizing the purchase of up to $1.5 million of stock [24] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded with closing remarks from management [27][28]