Stellus Capital Investment Corporation (NYSE:SCM) Q2 2019 Earnings Conference Call Transcript

Aug 09, 2019 • 11:00 am ET

Previous

Stellus Capital Investment Corporation (NYSE:SCM) Q2 2019 Earnings Conference Call Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Good morning, ladies and gentlemen, and thank you for standing by. At this time, I'd like to welcome everyone to Stella's Capital Investment Corporation's conference call to report second quarter 2019 results. [Operator Instructions] The call will be open for a question and answer session following today's speakers remarks. The conference is being recorded today, Friday, August 9th, 2019. It is now my pleasure to turn the call over to Mr. Robert Ladd, Chief Executive Officer of Steel's Capital Investment Corporation. Mr. Ladd, you may begin your conference.

Analyst
Robert Todd

Ok. Thank you, Cody. Good morning, everyone, and thank you for joining the call. Welcome to our conference call covering the quarter ended June 30, 2019. Joining me this morning is Doug Hoskinson, our Chief Financial Officer, who will cover important information about forward looking statements as well as an overview of our financial information.

Executive
Doug Hoskinson

Thank you, Rob. I'd like to remind everyone that today's call is being recorded. Please note that this call is the property of Stellus Capital Investment Corporation and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone number and pin provided in our press release announcing this call. I'd also like to call your attention to the customary Safe Harbor disclosure in our press release regarding forward looking information.

Today's conference call may include forward looking statements and projections, and we ask that you refer our most recent filing with the SEC for important factors that could cause actual results to differ materially from these projections. We will not update our forward looking statements unless required by law, to obtain copies of our latest SEC filings, please visit our website at www.stelluscapital.com, under the Public Investors link or call us at 713-292-5400.

At this time, I'd like to turn the call back over to our Chief Executive Officer, Rob Ladd.

Analyst
Robert Todd

Thank you, Doug. We'll begin by discussing our operating results, followed by a review of the portfolio which will include asset quality. And then we'll talk about the outlook. Todd will cover operating results first.

Executive
Doug Hoskinson

Thank you, Rob. We're pleased to report another caller got another quarter of solid earnings in which we generated realized income of $0.43 per share, including gains of $2.7 million or $0.14 which exceeded our $0.34.

per share dividend by $0.09. GAAP and core net investment income were both $0.29 per share which were short of our distributions for the quarter by $0.05. It's important to note that this was our first full quarter of dividends after our secondary offering of 2,9 million shares that was completed in March.

Total realized income year-to-date includes 12.9 million of realized gains. It's $1.29 per share which exceeds our distributions of $0.68 per share for the same period. Net asset value increased 2.3 million over the quarter, primarily due to the issuance of underwriters over allotment in April for our secondary offering in March. Net asset value per share decreased