NEW YORK, October 29, 2019 – Shares of Alcentra Capital Corporation (NASDAQ: ABDC) showed no change to $8.94. The stock traded total volume of 38.580K shares lower than the average volume of 58.19K shares.
For the three months ended June 30, 2019, Alcentra Capital Corporation (ABDC) reported total investment income of $6.10M, a decrease of approximately $1.10M from the $7.30M of total investment income for the three months ended June 30, 2018. This decrease was due to continued portfolio rotation of legacy investments to investments more senior in the capital structure of our portfolio companies, and the associated decrease in weighted-average yields. For the three months ended June 30, 2019, interest and PIK income comprised $5.90M. Net investment income for the three months ended June 30, 2019 was $2.50M, or $0.20 per share, as compared to $3.50M, or $0.25 per share, for the three months ended June 30, 2018.
For the three months ended June 30, 2019, total net expenses (after the waiver of management fees) were $3.60M, a decrease of $0.20M or 4.3%, from the $3.80M for the three months ended June 30, 2018. Base management fees were $0.80M, a decrease of $0.20M, or 18.8%, from the $1.00M for the three months ended June 30, 2018. This decrease was due to the lower amount of gross assets outstanding between the comparable periods. For the three months ended June 30, 2019, the Company recorded a net realized gain of $1.60M and net change in unrealized depreciation from portfolio investments of $1.10M. As a result, after considering the Company’s provision for taxes on unrealized gains, the Company’s net increase in net assets resulting from operations was $2.10M for the three months ended June 30, 2019.
General and administrative expenses for the three months ended June 30, 2019 were $1.50M, an increase of $0.60M from the comparable period. This was largely due to an increase in professional fees and directors’ fees, both primarily relating to stockholder activist activities and the board of director’s formal review process to evaluate strategic alternatives for the Company. These were partially offset by a decrease in our excise tax payable, consulting fees and a reversal of accrued incentive fees.
Portfolio and Investment Activities
As of June 30, 2019, the fair value of the Company’s investment portfolio totaled $219.20M and consisted of 28 companies and 1 rated debt security in a CLO. The average portfolio investment size on an amortized cost and fair market basis was $7.20M and $7.00M, respectively. The Company received proceeds from repayments, loan dispositions, and amortization on investments of approximately $22.10M during the three months ended June 30, 2019.
Liquidity and Capital Resources
At June 30, 2019, the Company had $7.80M in cash, $26.60M of borrowings outstanding on its $115.00M senior secured revolving credit facility and $55.00M outstanding of Alcentra Capital InterNotes.
ABDC has the market capitalization of $115.11M and its EPS growth ratio for the past five years was -5.99%. Price to sales ratio was 4.41.