SuRo Capital(SSSS) - 2023 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - As of June 30, 2023, the net asset value (NAV) per share was $7.35, down from $7.59 at the end of Q1 2023 and $9.24 in Q2 2022, primarily due to net realized losses on investments and net investment loss [42][52]. - The company ended the quarter with approximately $112 million in liquid assets, including $24.5 million in cash and $75.9 million in short-term U.S. treasuries [53]. Business Line Data and Key Metrics Changes - The company made a total of $10.5 million in new and follow-on investments during the second quarter, including a $10 million investment in ServiceTitan and a $5.8 million investment in FourKites [49][65]. - The top allocation of the investment portfolio was in financial technology and services, representing approximately 35% of the portfolio at fair value [51]. Market Data and Key Metrics Changes - FourKites tracks over 3 million shipments daily across 200 countries, indicating strong market presence and demand for real-time supply chain visibility solutions [11][35]. - ServiceTitan serves over 11,800 businesses, employing more than 100,000 contractors, highlighting its significant market share in the trades sector [3][34]. Company Strategy and Development Direction - The company remains focused on shareholder-friendly initiatives, including an expanded share repurchase program totaling $60 million, set to expire on October 31, 2024 [9][47]. - The company is strategically investing in technology-driven businesses, believing that these investments will yield high-quality returns in the current market environment [22][32]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the exchange wagering opportunity in the U.S., citing the success of Betfair in the UK and the potential of Prophet Exchange [5]. - The company plans to continue monetizing public positions as market conditions improve, indicating a proactive approach to managing investments [44][58]. Other Important Information - The company completed a modified Dutch tender offer, repurchasing 3 million shares at $4.50 per share, representing a significant discount to NAV [21][25]. - The company has seen quick adoption of its platform with over 1 million users and 55,000 businesses signing up in less than a year for PublicSq, which began trading on the NYSE [15]. Q&A Session Summary Question: Can you elaborate on the Colombier Holdings in the fund? - Management confirmed ownership of approximately 1.9 million common shares and 2.7 million warrants, with a lockup period for the warrants ending 30 days after the business combination closed on July 19 [56][73]. Question: How much is remaining on the authorized share buyback program? - Management indicated that slightly over $21 million remains available for share repurchases, emphasizing a focus on shareholder initiatives [69][70].