Solar Capital Ltd. Announces Quarter and Fiscal Year Ended December 31, 2014 Financial Results; Declares Quarterly Dividend of $0.40 Per Share for First Fiscal Quarter 2015
02/25/15
HIGHLIGHTS:
At
Investment portfolio fair value:
Number of portfolio
companies: 43
Net assets:
Net asset value per
share:
Portfolio Activity for the Quarter Ended
Investments made during the quarter:
Investments
prepaid and sold during the quarter:
Portfolio Activity for the Year Ended
Investments made during the year:
Investments prepaid
and sold during the year:
Operating Results for the Quarter Ended
Net investment income:
Net realized and unrealized
loss:
Net increase in net assets from operations:
Net investment income per share:
Operating Results for the Year Ended
Net investment income:
Net realized and unrealized
loss:
Net increase in net assets from operations:
Net investment income per share:
“Our consistently prudent investment approach, coupled with the
strategic initiatives we implemented in 2014, have positioned us well
for growth in 2015,” said
Conference Call and Webcast
The Company will host an earnings conference call and audio webcast at
All interested parties may participate in the conference call by dialing (877) 474-9504 approximately 5-10 minutes prior to the call. International callers should dial (857) 244-7557. Participants should reference Solar Capital Ltd. and the participant passcode of 71422391 when prompted. This conference call also can be accessed by all interested parties through Solar Capital Ltd.’s website, www.solarcapltd.com. Additionally, a replay dial-in will be available until March 12, 2015 and can be accessed by dialing (888) 286-8010 and using the passcode 33069648. International callers should dial (617) 801-6888 to listen to the replay.
Portfolio and Investment Activity
During the quarter ended
During the year ended December 31, 2014, we invested approximately
$557 million across 30 portfolio companies. This compares to investing
approximately
At
The weighted average yield on our portfolio of income producing
investments was 9.9% at
At
Since inception, we and our predecessor companies have invested
approximately
* We have included Crystal Financial as 100% floating rate.
Results of Operations for the Fiscal Year Ended
Investment Income
For the fiscal years ended
Expenses
Expenses totaled
Net Investment Income
The Company’s net investment income totaled
Net Realized and Unrealized Loss
Net realized and unrealized loss for the fiscal years ended
Net Increase in Net Assets Resulting From Operations
For the fiscal years ended
Liquidity and Capital Resources
At
Financial Statements and Tables
|
SOLAR CAPITAL LTD. |
||||||||
|
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES |
||||||||
|
(in thousands, except share amounts) |
||||||||
| December 31, 2014 | December 31, 2013 | |||||||
| Assets | ||||||||
| Investments at fair value: | ||||||||
| Companies less than 5% owned (cost: $659,552 and $688,685, respectively) | $ | 652,288 | $ | 680,720 | ||||
| Companies 5% to 25% owned (cost: $8,511 and $7,789, respectively) | 4,646 | 7,789 | ||||||
| Companies more than 25% owned (cost: $339,380 and $394,285, respectively) | 363,804 | 399,890 | ||||||
| Total investments (cost: $1,007,443 and $1,090,759, respectively) | 1,020,738 | 1,088,399 | ||||||
| Cash and cash equivalents | 635,075 | 585,278 | ||||||
| Foreign currency (cost: $275 and $1,702, respectively) | 265 | 1,701 | ||||||
| Interest receivable | 4,549 | 5,623 | ||||||
| Dividends receivable | 8,258 | 8,605 | ||||||
| Deferred financing costs | 3,263 | 3,300 | ||||||
| Derivatives | — | — | ||||||
| Receivable for investments sold | 13,138 | 14,870 | ||||||
| Prepaid expenses and other assets | 1,048 | 666 | ||||||
| Total assets | $ | 1,686,334 | $ | 1,708,442 | ||||
| Liabilities | ||||||||
| Revolving credit facilities | $ | — | $ | — | ||||
| Unsecured senior notes | 100,000 | 100,000 | ||||||
| Senior secured notes | 75,000 | 75,000 | ||||||
| Term loan | 50,000 | 50,000 | ||||||
| Distributions payable | 16,986 | 17,698 | ||||||
| Payable for investments and cash equivalents purchased | 492,475 | 454,887 | ||||||
| Management fee payable | 6,109 | 5,780 | ||||||
| Performance-based incentive fee payable | 4,198 | 4,633 | ||||||
| Administrative services expense payable | 2,427 | 2,085 | ||||||
| Interest payable | 1,504 | 1,499 | ||||||
| Other liabilities and accrued expenses | 1,067 | 1,223 | ||||||
| Total liabilities | $ | 749,766 | $ | 712,805 | ||||
| Net Assets | ||||||||
|
Common stock, par value $0.01 per share, 200,000,000 and
200,000,000 common shares |
$ | 425 | $ | 442 | ||||
| Paid-in capital in excess of par | 991,963 | 1,110,545 | ||||||
| Distributions in excess of net investment income | (8,599 | ) | (17,344 | ) | ||||
| Accumulated net realized loss | (60,506 | ) | (92,706 | ) | ||||
| Net unrealized appreciation (depreciation) | 13,285 | (5,300 | ) | |||||
| Total net assets | $ | 936,568 | $ | 995,637 | ||||
| Net Asset Value Per Share | $ | 22.05 | $ | 22.50 | ||||
|
SOLAR CAPITAL LTD. |
||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||
|
(in thousands, except share amounts) |
||||||||
|
Year ended |
Year ended |
|||||||
| INVESTMENT INCOME: | ||||||||
| Interest: | ||||||||
| Companies less than 5% owned | $ | 84,791 | $ | 106,523 | ||||
| Companies 5% to 25% owned | 564 | 6,333 | ||||||
| Companies more than 25% owned | 3,349 | 10,728 | ||||||
| Dividends: | ||||||||
| Companies 5% to 25% owned | — | 5,565 | ||||||
| Companies more than 25% owned | 33,233 | 34,444 | ||||||
| Total investment income | 121,937 | 163,593 | ||||||
| EXPENSES: | ||||||||
| Management fees | 24,651 | 26,794 | ||||||
| Performance-based incentive fees | 7,411 | 21,234 | ||||||
| Interest and other credit facility expenses | 14,448 | 20,051 | ||||||
| Administrative services expense | 5,362 | 4,741 | ||||||
| Other general and administrative expenses | 3,358 | 5,428 | ||||||
| Total expenses | 55,230 | 78,248 | ||||||
| Net investment income before income tax expense | 66,707 | 85,345 | ||||||
| Income tax expense | — | 410 | ||||||
| Net investment income | $ | 66,707 | $ | 84,935 | ||||
|
REALIZED AND UNREALIZED GAIN (LOSS) ON |
||||||||
| Net realized gain (loss) on investments and cash equivalents: | ||||||||
| Companies less than 5% owned | $ | (6,667 | ) | $ | (31,679 | ) | ||
| Companies 5% to 25% owned | 1,176 | (14,273 | ) | |||||
| Companies more than 25% owned | (25,337 | ) | 472 | |||||
| Net realized loss on investments and cash equivalents | (30,828 | ) | (45,480 | ) | ||||
| Net realized gain (loss) on foreign currencies and derivatives: | (6,012 | ) | 1,055 | |||||
| Net realized loss | (36,840 | ) | (44,425 | ) | ||||
| Net change in unrealized gain (loss) on investments and cash equivalents | 15,655 | 34,189 | ||||||
|
Net change in unrealized gain (loss) on foreign currencies and |
2,930 | 611 | ||||||
| Net change in unrealized gain (loss) | 18,585 | 34,800 | ||||||
|
Net realized and unrealized gain (loss) on |
(18,255 | ) | (9,625 | ) | ||||
|
NET INCREASE IN NET ASSETS RESULTING FROM |
$ | 48,452 | $ | 75,310 | ||||
| EARNINGS PER SHARE | $ | 1.13 | $ | 1.69 | ||||
About
Forward-Looking Statements
Statements included herein may constitute “forward-looking statements,”
which relate to future events or our future performance or financial
condition. These statements are not guarantees of future performance,
conditions or results and involve a number of risks and uncertainties.
Actual results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those described
from time to time in our filings with the
Source:
Solar Capital Ltd.
Investor Relations
Richard Pivirotto
(646)
308-8770