BlackRock TCP Capital Corp Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
BlackRock TCP Capital Corp. Reports Second Quarter 2024 Financial Results
BlackRock TCP Capital Corp. ("TCPC") has announced its financial results for the second quarter ended June 30, 2024, and has filed its Form 10-Q with the U.S. Securities and Exchange Commission.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | Consensus Estimate Q2 2024 |
|---|---|---|---|---|
| Total Revenue | $71.5M | N/A | N/A | $68.94M |
| Earnings Per Share (EPS) | $0.42 | N/A | N/A | $0.43 |
| Net Investment Income (GAAP) | $35.8M ($0.42/share) | N/A | N/A | N/A |
| Adjusted NII | $32.1M ($0.38/share) | N/A | N/A | N/A |
| Net Asset Value (NAV) | $10.20/share | $11.14/share | N/A | N/A |
Interpretation : TCPC reported higher-than-expected total revenue of $71.5 million compared to the consensus estimate of $68.94 million. However, EPS slightly missed the consensus estimate of $0.43, coming in at $0.42. The company's net asset value decreased from $11.14 per share in Q1 2024 to $10.20 per share by the end of Q2 2024.
Revenue Performance by Segment
| Segment | Revenue Q2 2024 | Q1 2024 | Previous Guidance |
|---|---|---|---|
| Senior Secured Debt | $129.7M | N/A | N/A |
| Equity Investments | $6.2M | N/A | N/A |
| Total Dispositions | $185.0M | N/A | N/A |
Interpretation : TCPC's major revenue segment, Senior Secured Debt, saw significant investment with $129.7 million deployed primarily into 10 investments, while $185 million was realized from sales or repayments. The total acquisitions largely consisted of senior secured loans (95.3%).
Key Operational Data
| Metric | Value as of June 30, 2024 |
|---|---|
| Debt Investments Non-Accrual | 4.9% (fair value), 10.5% (cost) |
| Total Portfolio | $2.0 billion |
| Senior Secured Debt | 91.1% |
| First Lien | 81.3% |
| Floating Rate Debt | 93.4% |
| Effective Yield (Debt Portfolio) | 13.7% |
| Effective Yield (Total Portfolio) | 12.4% |
Interpretation : The portfolio's health was reflected with 4.9% of debt investments on a non-accrual status at fair value, and the weighted average annual effective yield of the debt portfolio was approximately 13.7%.
Comments from Company Officers
Rajneesh Vig, Chairman and CEO of TCPC, commented, "In the second quarter, we generated adjusted net investment income of 38 cents per share, resulting in adjusted annualized NII return on average equity of 14%, which is at the high end of historical levels, and strong dividend coverage of 112%. Our NAV declined, reflecting higher non-accruals in the quarter. We are proactively working with our borrowers, their lenders and sponsors to resolve credit issues as quickly as possible while also achieving the best outcomes for our investors."
Dividends and Share Repurchase Program
TCPC declared a third-quarter dividend of $0.34 per share, payable on September 30, 2024, to stockholders of record as of the close of business on September 16, 2024. Additionally, the company has a $50 million stock repurchase plan approved by the Board of Directors on April 27, 2024, though no shares were repurchased during Q2 2024.
Forward Guidance
TCPC did not specifically provide forward guidance but highlighted the company's strong capital position and compelling investment pipeline looking forward to the second half of 2024.
Stock Price Movement
Following the announcement of the earnings, TCPC's stock experienced a 1.52% increase.
With its healthy portfolio and strong dividend coverage, TCPC continues to focus on delivering long-term returns to shareholders by leveraging its expertise and resources from the BlackRock platform.
