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Business Wire
04-08-2025
- Business
- Business Wire
New Mountain Finance Corporation Announces Financial Results for the Quarter Ended June 30, 2025
NEW YORK--(BUSINESS WIRE)--New Mountain Finance Corporation (NASDAQ: NMFC) ('New Mountain,' 'New Mountain Finance' or the 'Company') today announced its financial results for the quarter ended June 30, 2025. Second Quarter and Recent Highlights 1 Net investment income of $34.5 million, or $0.32 per weighted average share Net asset value of $12.21 per share compared to $12.45 per share as of March 31, 2025 ~95% of the portfolio is rated green on our internal heatmap Increased senior oriented asset mix to 78%, compared to 75% as of June 30, 2024 Received a third license from the Small Business Administration for the SBIC program in July 2025 Repurchased $9.6 million of outstanding shares in the second quarter Declared a third quarter 2025 distribution of $0.32 per share, payable on September 30, 2025, to holders of record as of September 16, 2025 ($ in millions, except per share data) Q2 2025 Q2 2024 Net Investment Income per Weighted Average Share $ 0.32 $ 0.36 Regular & Supplemental Dividends Paid per Share in Quarter $ 0.32 $ 0.34 Annualized Dividend Yield 4 12.3 % 11.0 % Expand June 30, 2025 March 31, 2025 Investment Portfolio 5 $ 3,014.2 $ 3,047.7 NAV per Share $ 12.21 $ 12.45 Statutory Debt/Equity 3 1.17x 1.15x Statutory Debt/Equity (Net of Available Cash) 3 1.13x 1.09x Expand Management Comments on Second Quarter Performance 'In Q2, NMFC once again delivered its dividend, despite tight credit spreads in the market generally,' said Steven B. Klinsky, NMFC Chairman and New Mountain Capital CEO. 'We remain committed to maintaining credit discipline and serving our shareholders.' John R. Kline, NMFC CEO, added: 'We continued to advance our strategic priorities for NMFC of both increasing the percentage of senior-oriented assets to nearly 80% and building more position diversification across the portfolio. Additionally, NMFC repurchased $9.6 million worth of shares in the quarter, demonstrating our belief that the stock is undervalued at current trading levels.' Portfolio and Investment Activity 5 As of June 30, 2025, the Company's NAV 1 was $1,305.9 million and its portfolio had a fair value of $3,014.2 million of investments in 124 portfolio companies, with a weighted average YTM at Cost 6 of approximately 10.6%. For the three months ended June 30, 2025, the Company originated $122.2 million of investments 2, offset by $141.4 million of repayments 2 and $13.7 million of asset sales 10. Portfolio and Asset Quality NMFC's mandate is to primarily target businesses in the middle market that, consistent with New Mountain's private equity platform, are high quality, defensive growth companies in industries that are well-researched by New Mountain. The Company's focus is on defensive growth businesses that generally exhibit the following characteristics: (i) acyclicality, (ii) sustainable secular growth drivers, (iii) niche market dominance and high barriers to competitive entry, (iv) recurring revenue and strong free cash flow, (v) flexible cost structures and (vi) seasoned management teams. Portfolio Industry Composition based on Fair Value 8 The Company monitors the performance and financial trends of its portfolio companies on at least a quarterly basis. The Company attempts to identify any developments within the portfolio company, the industry, or the macroeconomic environment that may alter any material element of the Company's original investment strategy. As described more fully in the Company's Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission, the portfolio monitoring procedures are designed to provide a simple, yet comprehensive analysis of the Company's portfolio companies based on their operating performance and underlying business characteristics, which in turn forms the basis of its Risk Rating. The Risk Rating is expressed in categories of Green, Yellow, Orange and Red with Green reflecting an investment that is in-line with or above expectations and Red reflecting an investment performing materially below expectations. The following table shows the Risk Rating of the Company's portfolio companies as of June 30, 2025: As of June 30, 2025, nearly all investments in the Company's portfolio had a Green Risk Rating, with the exception of six portfolio companies that had a Yellow Risk Rating, seven portfolio companies that had an Orange Risk Rating and one portfolio company that had a Red Risk Rating. The following table shows the Company's investment portfolio composition as of June 30, 2025: Liquidity and Capital Resources As of June 30, 2025, the Company had cash and cash equivalents of $57.4 million and total statutory debt outstanding of $1,526.2 million 3. The Company's statutory debt to equity was 1.17x (or 1.13x net of available cash) as of June 30, 2025. Additionally, the Company had $262.5 million of SBA-guaranteed debentures outstanding as of June 30, 2025. As of June 30, 2025, the Company had $1,079.7 million of available capacity on its Holdings Credit Facility, NMFC Credit Facility and Unsecured Management Company Revolver. Second Quarter 2025 Conference Call New Mountain Finance Corporation will host an earnings conference call and webcast at 10:00 am Eastern Time on Tuesday, August 5, 2025. To participate in the live earning conference call, please use the following dial-in numbers or visit the audio webcast link. To avoid any delays, please join at least fifteen minutes prior to the start of the call. United States: +1 (877) 443-9109 International: +1 (412) 317-1082 Live Audio Webcast A replay of the conference call can be accessed one hour after the end of the conference call through November 5, 2025. The full webcast replay will be available through August 5, 2026. To access the earnings webcast replay please visit the New Mountain Investor Relations website. United States: +1 (877) 344-7529 International: +1 (412) 317-0088 Access Code: 6995709 For additional details related to the quarter ended June 30, 2025, please refer to the New Mountain Finance Corporation Quarterly Report on Form 10-Q filed with the SEC and the supplemental investor presentation which can be found on the Company's website at _________________________ (1) Excludes non-controlling interest in New Mountain Net Lease Corporation ('NMNLC'). (2) Originations exclude payment-in-kind ('PIK'); originations, repayments, and sales exclude revolvers, unfunded commitments, bridges, return of capital, and realized gains / losses. (3) Excludes the Company's United States Small Business Administration ('SBA') guaranteed debentures. (4) Dividend yield calculation uses the closing stock price of $10.42 on August 1, 2025 and $12.42 on July 29, 2024 and includes regular dividends for Q2 2025 and regular and supplemental dividends for Q2 2024. (5) Includes collateral for securities purchased under collateralized agreements to resell. (6) References to 'YTM at Cost' assume the accruing investments, including secured collateralized agreements, in the Company's portfolio as of a certain date, the ''Portfolio Date'', are purchased at cost on that date and held until their respective maturities with no prepayments or losses and are exited at par at maturity. This calculation excludes the impact of existing leverage. YTM at Cost uses the Sterling Overnight Interbank Average Rate ("SONIA'), Euro Interbank Offered Rate ("EURIBOR") and Secured Overnight Financing Rate ('SOFR') curves at each quarter's respective end date. The actual yield to maturity may be higher or lower due to the future selection of SONIA, EURIBOR and SOFR contracts by the individual companies in the Company's portfolio or other factors. (7) Includes investments held in NMNLC. (8) Excludes NMFC Senior Loan Program III LLC ("SLP III"), NMFC Senior Loan Program IV LLC ("SLP IV") and NMNLC. (9) Includes investments classified as structured finance obligations. (10) Office Ally sale closed in May 2025; NMFC's investment was fully repaid upon closing Expand New Mountain Finance Corporation Consolidated Statements of Assets and Liabilities (in thousands, except shares and per share data) (unaudited) December 31, 2024 Assets Investments at fair value Non-controlled/non-affiliated investments (cost of $2,268,989 and $2,298,083, respectively) $ 2,227,265 $ 2,277,352 Non-controlled/affiliated investments (cost of $128,280 and $124,254, respectively) 102,983 112,776 Controlled investments (cost of $700,121 and $679,587, respectively) 670,448 700,896 Total investments at fair value (cost of $3,097,390 and $3,101,924, respectively) 3,000,696 3,091,024 Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively) 13,500 13,500 Cash and cash equivalents 57,390 80,320 Interest and dividend receivable 43,156 42,379 Derivative asset at fair value 5,718 — Receivable from unsettled securities sold 4,386 — Receivable from affiliates 413 213 Other assets 34,453 19,265 Total assets $ 3,159,712 $ 3,246,701 Liabilities Borrowings Unsecured Notes $ 989,987 $ 978,503 SBA-guaranteed debentures 262,500 300,000 2022 Convertible Notes 258,811 260,091 Holdings Credit Facility 246,063 294,363 NMFC Credit Facility 31,372 27,944 Deferred financing costs (net of accumulated amortization of $45,690 and $63,971, respectively) (21,103 ) (24,191 ) Net borrowings 1,767,630 1,836,710 Payable for unsettled securities purchased 29,562 — Interest payable 15,561 17,109 Payable to broker 13,900 3,230 Management fee payable 9,759 10,467 Incentive fee payable 5,384 8,625 Deferred tax liability 1,453 1,410 Derivative liability at fair value 1,424 7,423 Other liabilities 3,203 2,436 Total liabilities 1,847,876 1,887,410 Commitments and contingencies Net assets Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued — — Common stock, par value $0.01 per share, 200,000,000 shares authorized, 107,851,929 and 107,851,415 shares issued, respectively, and 106,926,713 and 107,851,415 shares outstanding, respectively 1,079 1,079 Paid in capital in excess of par 1,365,838 1,365,852 Treasury stock at cost, 925,216 and 0 shares held, respectively (9,642 ) — Accumulated undistributed earnings (51,416 ) (13,592 ) Total net assets of New Mountain Finance Corporation $ 1,305,859 $ 1,353,339 Non-controlling interest in New Mountain Net Lease Corporation 5,977 5,952 Total net assets $ 1,311,836 $ 1,359,291 Total liabilities and net assets $ 3,159,712 $ 3,246,701 Number of shares outstanding 106,926,713 107,851,415 Net asset value per share of New Mountain Finance Corporation $ 12.21 $ 12.55 Expand New Mountain Finance Corporation Consolidated Statements of Operations (in thousands, except shares and per share data) (unaudited) Three Months Ended Six Months Ended June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024 Investment income From non-controlled/non-affiliated investments: Interest income (excluding Payment-in-kind ("PIK") interest income) $ 53,584 $ 57,583 $ 105,697 $ 113,820 PIK interest income 2,931 4,437 5,844 9,120 Dividend income 506 2,284 1,063 2,577 Non-cash dividend income 3,972 4,797 8,406 9,481 Other income 892 3,291 2,204 4,891 From non-controlled/affiliated investments: Interest income (excluding PIK interest income) 336 376 667 744 PIK interest income 1,057 873 2,044 1,709 Non-cash dividend income 292 1,374 1,975 2,618 Other income 62 62 125 125 From controlled investments: Interest income (excluding PIK interest income) 2,022 1,383 3,507 2,744 PIK interest income 2,900 3,721 6,588 7,856 Dividend income 12,183 12,340 24,381 25,023 Non-cash dividend income 2,378 1,570 4,449 3,066 Other income 375 497 2,203 1,370 Total investment income 83,490 94,588 169,153 185,144 Expenses Interest and other financing expenses 31,138 33,113 62,512 64,129 Management fee 9,759 11,351 19,992 22,348 Incentive fee 7,971 9,550 16,218 18,939 Professional fees 1,100 1,127 2,489 2,194 Administrative expenses 1,184 1,108 2,288 2,076 Other general and administrative expenses 331 527 847 992 Total expenses 51,483 56,776 104,346 110,678 Less: management and incentive fees waived (2,586 ) (861 ) (4,408 ) (1,762 ) Net expenses 48,897 55,915 99,938 108,916 Net investment income before income taxes 34,593 38,673 69,215 76,228 Income tax expense (benefit) 8 234 (11 ) 235 Net investment income 34,585 38,439 69,226 75,993 Net realized (losses) gains: Non-controlled/non-affiliated investments 13,390 (34,966 ) 12,316 (46,824 ) Controlled investments (1 ) 3,800 38,898 3,831 Net change in unrealized appreciation (depreciation): Non-controlled/non-affiliated investments (29,012 ) 32,895 (24,806 ) 56,055 Non-controlled/affiliated investments (8,928 ) (4,080 ) (13,819 ) (26,543 ) Controlled investments (2,590 ) 1,697 (50,982 ) 4,017 Securities purchased under collateralized agreements to resell — (3,000 ) — (3,000 ) Foreign currency 452 129 602 106 Provision for taxes (21 ) (130 ) (43 ) (767 ) Net realized and unrealized losses (26,710 ) (3,655 ) (37,834 ) (13,125 ) Net increase in net assets resulting from operations 7,875 34,784 31,392 62,868 Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation (101 ) (313 ) (205 ) (989 ) Net increase in net assets resulting from operations related to New Mountain Finance Corporation $ 7,774 $ 34,471 $ 31,187 $ 61,879 Basic earnings per share $ 0.07 $ 0.32 $ 0.29 $ 0.59 Weighted average shares of common stock outstanding - basic 107,750,160 106,891,784 107,800,508 105,276,077 Diluted earnings per share $ 0.07 $ 0.31 $ 0.29 $ 0.56 Weighted average shares of common stock outstanding - diluted 126,733,459 125,759,769 126,792,855 124,101,624 Distributions declared and paid per share $ 0.32 $ 0.34 $ 0.64 $ 0.70 Expand ABOUT NEW MOUNTAIN FINANCE CORPORATION New Mountain Finance Corporation (NASDAQ: NMFC) is focused on providing direct lending solutions to U.S. upper middle market companies backed by top private equity sponsors. Our investment objective is to generate current income and capital appreciation through the sourcing and origination of senior secured loans and select junior capital positions, to growing businesses in defensive industries that offer attractive risk-adjusted returns. Our differentiated investment approach leverages the deep sector knowledge and operating resources of New Mountain Capital, a global investment firm with over $55 billion of assets under management. ABOUT NEW MOUNTAIN CAPITAL New Mountain Capital ("NMC") is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, credit and net lease investment strategies with over $55 billion in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit Statements included herein may contain 'forward-looking statements', which relate to our future operations, future performance or our financial condition. Forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including changes in base interest rates and significant volatility on our business, portfolio companies, our industry and the global economy. Actual results and outcomes may differ materially from those anticipated in the forward-looking statements as a result of a variety of factors, including those described from time to time in our filings with the Securities and Exchange Commission or factors that are beyond our control. New Mountain Finance Corporation undertakes no obligation to publicly update or revise any forward-looking statements made herein, except as may be required by law. All forward-looking statements speak only as of the time of this press release.
Yahoo
28-04-2025
- Business
- Yahoo
First Business Financial Services Inc (FBIZ) Q1 2025 Earnings Call Highlights: Strong Earnings ...
Release Date: April 25, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. First Business Financial Services Inc (NASDAQ:FBIZ) reported a strong quarter with a 23% increase in pre-tax, pre-provision, adjusted earnings compared to the previous year. The company achieved double-digit core deposit growth, outpacing loan expansion, which supports their strategic plan for 10% annual growth. Net interest margin remained strong and stable, contributing to solid financial performance. Non-performing assets declined, indicating improved asset quality. Tangible book value per share grew by 14%, reflecting enhanced shareholder value. There is rising uncertainty related to changes in US trade policy, which could potentially impact economic conditions and growth. The company experienced increased net charge-offs in the equipment finance portfolio, particularly in the transportation sector. Ongoing variability in fee income, particularly from slot fees and SBIC fund returns, could impact revenue consistency. The economic outlook shows modest deterioration, which could affect future loan growth and asset quality. The company faces competitive pressures on both loan yields and deposit costs, which could impact margins if conditions change. Q: What were the new loan yields in the first quarter, and have there been any changes in spreads? A: New loan yields were consistent with the prior quarter, with no significant changes in spreads. Typically, pricing ranges from 225 to 275 basis points depending on the credit type. (Unidentified_6) Q: How are tariffs impacting your clients, and which sectors are most exposed? A: There is some uncertainty among clients, particularly those with international exposure, but no significant impact has been observed yet. The bank is focusing on clients with foreign vendors and contractors. (Unidentified_3) Q: Can you explain the increase in net charge-offs in the equipment finance sector? A: The increase was a one-quarter anomaly due to accelerated charge-offs in the equipment finance portfolio, particularly in the transportation sector. This was already reserved for, so it had minimal impact on the provision line. (Unidentified_9) Q: What is the outlook for fee income, especially after the reclassification of loan fees? A: The reclassification is permanent, and the bank expects to maintain or grow fee income through various channels such as SBA, private wealth, and SBIC fund investments. (Unidentified_6) Q: How is the bank managing its loan-to-deposit ratio, and what are the targets? A: The bank aims to keep the loan-to-deposit ratio below 100% for better optics, favoring brokered CDs over home loan advances for match funding. The focus is on maintaining 75% core funding of total bank funding. (Unidentified_7) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Business Upturn
21-04-2025
- Business
- Business Upturn
Capital Southwest Announces Receipt of Second SBIC License
By GlobeNewswire Published on April 22, 2025, 01:01 IST DALLAS, April 21, 2025 (GLOBE NEWSWIRE) — Capital Southwest Corporation ('Capital Southwest') (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its wholly owned subsidiary, Capital Southwest SBIC II, LP ('SBIC II'), has received a license from the U.S. Small Business Administration ('SBA') to operate as a Small Business Investment Company ('SBIC'). As an SBIC, SBIC II will be subject to a variety of regulations and oversight by the SBA concerning, among other things, the size and nature of the companies in which it may invest as well as the structure of those investments. The SBIC license will allow SBIC II to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a leverage commitment by the SBA. SBA debentures are loans issued to an SBIC which have interest payable semi-annually and a ten-year maturity. The interest rate is fixed shortly after issuance at a market-driven spread over U.S. Treasury Notes with ten-year maturities. Current SBA regulations permit SBIC II to borrow up to $175 million in SBA-guaranteed debentures, bringing Capital Southwest's aggregate borrowing capacity through the SBIC program to a total of up to $350 million of capital. The SBA program has played a pivotal role within Capital Southwest's lower middle market investment strategy since receiving its first SBIC license in April 2021. Capital Southwest received exemptive relief from the Securities and Exchange Commission that allows for the exclusion of SBA-guaranteed debentures from the definition of senior securities in the asset coverage requirement applicable to the Company. About Capital Southwest Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.7 billion in investments at fair value as of December 31, 2024. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time. Investor Relations Contact: Michael S. Sarner, President and Chief Executive Officer 214-884-3829 Disclaimer: The above press release comes to you under an arrangement with GlobeNewswire. Business Upturn takes no editorial responsibility for the same. GlobeNewswire provides press release distribution services globally, with substantial operations in North America and Europe.
Associated Press
29-01-2025
- Business
- Associated Press
Petra Capital Partners Completes Fundraising on $270 Million Petra Growth Fund V
NASHVILLE, Tenn., Jan. 29, 2025 /PRNewswire/ -- Petra Capital Partners is pleased to announce it has completed fundraising on Petra Growth Fund V ('PGF V') with $270 million of capital available to invest. The fund was oversubscribed and reached its hard cap. Consistent with prior funds, PGF V will target healthcare, business, and technology-enabled services companies and is structured as a small business investment company (SBIC) licensed by the U.S. Small Business Administration. 'We are very pleased with the response from our existing investors and several important new investors for PGF V and the strong support we received from the SBIC program,' said Mike Blackburn, Founding Managing Partner at Petra. Doug Owen, Managing Partner at Petra, commented, 'We are excited to begin deploying PGF V and with increased capacity to invest per deal, Petra can support its companies longer in their life cycles with a combination of flexible debt and equity solutions'. Petra is also pleased to announce that the fund has already made its first platform investment in a leading primary market research and analytics firm serving the pharmaceutical, healthcare, and consumer industries. 'This new investment fits squarely into one of our core investment sectors of healthcare and pharma services and represents a compelling opportunity for the fund,' commented David Fitzgerald, Managing Partner at Petra. With the raising of the new fund, Petra is also proud to announce that Matt Sotelo has been promoted to Partner. 'We are pleased to add Matt as a Partner in the firm. His promotion reflects his hard work, talent and significant contributions to Petra over the last 12 years' said David Fitzgerald, Managing Partner at Petra. Petra will continue to expand its investment team and is currently recruiting qualified candidates for Associate level positions. About Petra Capital Partners Petra Capital Partners is a private equity firm engaged in providing growth capital for companies located throughout the United States. Our investment team has an established track record of success spanning over 25 years and deploying more than $900 million of capital invested into more than 100 high growth companies. We are seeking investments for our current SBIC fund, Petra Growth Fund V. We can invest up to $25 million per company in equity or debt securities with a primary focus on backing high growth business services, tech-enabled services and healthcare services companies.
