Eagle Point Credit (ECC) Misses Q1 EPS by 5c

Eagle Point Credit (NYSE: ECC) reported Q1 EPS of $0.36, $0.05 worse than the analyst estimate of $0.41.

• Net investment income (“NII”) and realized capital gains of $0.36 per weighted average common share1 for the first quarter of 2019.
• NAV per common share of $13.70 as of March 31, 2019.
• First quarter 2019 GAAP net income (inclusive of unrealized mark-to-market gains) of $45.0 million, or $1.93 per weighted average common share.
• Weighted average effective yield of the Company’s collateralized loan obligation (“CLO”) equity portfolio (excluding called deals) was 13.58% as of March 31, 2019.
• Deployed $58.5 million in gross capital, received $44.0 million in proceeds from the sale of investments and received $27.3 million in cash distributions from the Company’s investment portfolio in the first quarter of 2019.
• 2 of the Company’s CLO investments were reset during the first quarter of 2019.

“The first quarter was strong for the Company and we saw a significant reversal of the mark-to-market losses from the fourth quarter,” said Thomas Majewski, Chief Executive Officer. “Cash flow from our portfolio remained solid during the first quarter, with recurring cash flows on our portfolio increasing both on an absolute and per share basis quarter over quarter. Loan market fundamentals remain solid, as evidenced by the lagging 12-month default rate heading under 1.0% at the end of March, the lowest it has been since the 2008-2009 financial crisis.”

“During the first quarter, we recorded NII and realized capital gains per share of $0.36,” noted Mr. Majewski. “As we move ahead, we would expect the benefits from our past years’ refinancing and reset program will be better reflected in our CLO investments’ 2019 distributions and portfolio activities, which has started to be borne out as the weighted average effective yield on our CLO equity portfolio (excluding called deals) increased quarter over quarter.”

For earnings history and earnings-related data on Eagle Point Credit (ECC) click here.

You May Also Be Interested In

• Jefferies sees a buying opportunity in this S&P 500 sector
• MeiraGTx Holdings plc (MGTX) Tops Q2 EPS by 202c
• Omega Flex (OFLX) Tops Q2 EPS by 27c