WhiteHorse Finance, Inc. (NASDAQ:WHF) Q1 2019 Earnings Conference Call Transcript

May 08, 2019 • 09:30 am ET


WhiteHorse Finance, Inc. (NASDAQ:WHF) Q1 2019 Earnings Conference Call Transcript


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Good morning. My name is Brandy, and I'll be your conference operator today. At this time, I would like to welcome everyone to the WhiteHorse Finance First Quarter 2019 Earnings Conference Call. Our host for today's call is Stuart Aronson, Chief Executive Officer; and Ed Giordano, Interim Chief Financial Officer. Today's call is being recorded and will be available for replay beginning at 1 p.m. Eastern Standard Time. The replay dial-in number is 404-537-3406 and the PIN number is 2548319. At this time, all participants have been placed in listen only mode and then floor will be open for questions following the presentations. (Operator Instructions).

It is now my pleasure to turn the floor over to Sean Silva of Prosek Partners. Please go ahead, sir.

Sean Silva

Thank you, Brandy, and thank you, everyone, for joining us today to discuss WhiteHorse Finance's first quarter 2019 earnings results. Before we begin, I would like to remind everyone that certain statements, which are not based on historical facts made during this call, included any statements relating to financial guidance, may be deemed forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Because these forward-looking statements involve known and unknown risks and uncertainties, these are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.

WhiteHorse assumes no obligation or responsibility to update any forward-looking statements. Today's speakers may refer to material from the WhiteHorse Finance first quarter 2019 earnings presentation, which was posted to our website this morning at www.whitehorsefinance.com. With that, allow me to introduce WhiteHorse Finance's CEO, Stuart Aronson. Stuart, you may begin.

Stuart Aronson

Thank you, Sean. Good morning and thank you for joining us today. As you're aware, we issued our press release this morning prior to market open. And I hope you've had a chance to review our results, which are also available on our website. I'm going to take you through our first quarter operating performance, and then Ed will review our financial results, after which we will take your questions.

I'm pleased to share that Q1 was another solid quarter for WhiteHorse Finance in all material areas. GAAP net interest income for the quarter was $7.6 million or $0.37 per share and core net interest income was $0.365 per share, more than covering our $0.355 dividend. Ed will provide details on the reconciliation between GAAP net interest income and core net interest income during his prepared remarks.

In addition, during the first quarter of 2019, we recorded NAV of $15.33, a $0.02 decrease from last quarter this small decline was primarily due to a decision to exit the troubled Outcome Health account, partially offset by small markups in the portfolio. In terms of core deal flow, I would note that historically, Q1 has been our slowest quarter with a lower rate of deal flow entering the system, especially during the month of January. This year, due to market disruptions in November and December, deal flow was