Hercules Capital, Inc. (NYSE:HTGC) Q3 2018 Earnings Conference Call - Final Transcript

Nov 01, 2018 • 05:00 pm ET


Hercules Capital, Inc. (NYSE:HTGC) Q3 2018 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good afternoon, ladies and gentlemen, and welcome to the Hercules Capital Q3 2018 Earnings Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host Mr. Michael Hara, Senior Director of IR. Please go ahead Sir.

Michael Hara

Thank you, Sara. Good afternoon, everyone, and welcome to Hercules conference call for the third quarter 2018. With us on the call today from Hercules are Manuel Henriquez, Founder, Chairman and CEO and David Lund, our Interim CFO.

Hercules third quarter 2018 financial results were released just after today's market close and can be accessed from Hercules Investor Relations section at htgc.com. We have arranged for a replay of the call on Hercules webpage or by using the telephone number and passcode provided in today's earnings release.

(Forward-looking Cautionary Statement)

With that, I will turn the call over to Manuel Henriquez, Hercules Chairman and CEO.

Manuel Henriquez

Thank you, Michael, and good afternoon, everyone, and thank you for joining us on the call today.

I'm happy to report that we continue to have a tremendous and outstanding year in 2018 with just a few months left to the year and we're on pace to set new all-time records across many key indicators, especially as it relates to total new annual commitments and loan portfolio growth, which now we expect to exceed $1.1 billion in total new commitments for calendar year 2018. This is a level that we've never seen before and it amplifies the tremendous amount of deal flow that we're currently seeing in the marketplace.

This performance has been accomplished despite in otherwise tough and volatile times in the capital markets and many ongoing geopolitical uncertainties. However Hercules Capital nonetheless continues to thrive and has achieved another strong and outstanding quarter for our shareholders, generating net investment income of $0.31 per share and once again covering our dividend of $0.31 from NII earnings.

As evidenced by our many Q3 2018 accomplishments, Hercules Capital has both achieved the necessary scale to succeed, but also has established itself as a BDC industry leader in the venture capital lending category as we continue to build our investment portfolio while many other smaller, sub scale BDC venture lenders are still unable to do so as evidenced in their Q3 earnings release and performances.

Furthermore, driving our tremendous growth in 2018 is a strong marketplace awareness and trust that Hercules Capital brand and platform has achieved within the market as the capital partner of choice among many other top tier and select leading venture capital firms as well as many of other innovative entrepreneurs, all have sought out our capital and sought out us as a capital partner.

We have surpassed and set all-time new records of total new commitments in a single year, which as of the end of October, was already