Prospect Capital Corporation Reports Fiscal Q4 and Full Year Results for 2024
Intellectia.AI Updated: 2024-08-28
Prospect Capital Corporation Reports Fiscal Q4 and Full Year Results for 2024
NEW YORK, Aug. 28, 2024 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect", "our", or "we") announced its financial results for the fiscal quarter and full year ended June 30, 2024, celebrating its 20th anniversary as a leading provider of private debt and equity to U.S. middle-market companies.
Consolidated Financial Metrics:
| Metric | Q4 2024 | Q4 2023 | YoY Change | QoQ Change | Consensus Estimates | Q4 2024 vs. Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $210.00M | $190.00M | +10.53% | +2.10% | $205.62M | Beat |
| Earnings Per Share (EPS) | $0.20 | $0.17 | +17.65% | +5.26% | $0.18 | Beat |
Interpretation:
Prospect Capital's financial performance was robust, exceeding consensus estimates with a total revenue of $210.00M and EPS of $0.20. The company showed steady growth year-over-year (YoY) and quarter-over-quarter (QoQ), reflecting strong operational efficiency and profitable ventures.
Revenue Performance by Segment:
| Segment | Q4 2024 Revenue | Q4 2023 Revenue | YoY Change |
|---|---|---|---|
| Middle-Market Lending | $109.20M | $102.00M | +7.06% |
| Middle-Market Lending / Buyout | $39.90M | $36.10M | +10.53% |
| Real Estate | $39.90M | $34.20M | +16.67% |
| Subordinated Structured Notes | $14.70M | $17.70M | -16.95% |
Interpretation:
Prospect's revenue across most segments demonstrated positive growth, especially in Middle-Market Lending and Real Estate, which saw significant YoY increases. Their strategic diversification into these areas appears to be yielding positive results, although the Subordinated Structured Notes segment experienced a decline.
Key Developments and Operational Highlights:
- Successful Credit Facility Closing:
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Completed an amended and extended credit facility with a new 5-year maturity, now totaling $2.1 billion.
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Cash Distributions to Shareholders:
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Distributed $21.12 per share since 2004, equivalents to 2.4x common NAV per share and 4.1x the stock price on 8/27/2024.
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Higher Total Returns:
- Achieved a total return of 38.7% over the last five years, compared to a BDC median of 37.0%.
Officer Comments:
Grier Eliasek, President and Chief Operating Officer of Prospect Capital, emphasized strategic initiatives aimed at optimizing portfolio performance and enhancing shareholder returns. Eliasek highlighted the company's robust liquid capital position, with $1.4 billion in balance sheet cash and undrawn revolving credit facility commitments. He elaborated on the strong credit facility extension, the diversification of funding sources, and the company's commitment to investment-grade ratings as pivotal elements positioning Prospect for future growth.
Dividends and Share Repurchase Program:
Prospect declared consistent monthly cash distributions: - August through October 2024: $0.06 per share. - Anticipated November 2024 - January 2025: Expected to declare distributions in November 2024.
With an annualized distribution yield of 14.1%, the company appears committed to returning value to shareholders.
Forward Guidance:
The company did not provide specific forward guidance; however, the anticipated continued monthly distributions and strategic focus areas suggest stable future performance.
Stock Price Movement:
Following the earnings release, Prospect Capital's stock saw a slight decline of -1.38%.
Summary:
Prospect Capital Corporation delivered a strong financial performance for both the fiscal Q4 and full year 2024, exceeding market expectations. With strategic diversification, successful funding activities, and a clear focus on shareholder value, the company remains well-positioned for continuous growth.
