Eagle Point Credit (ECC) Misses Q2 EPS by 56c

Eagle Point Credit (NYSE: ECC) reported Q2 EPS of ($0.28), $0.56 worse than the analyst estimate of $0.28.

SECOND QUARTER HIGHLIGHTS

• Net investment income (“NII”) and realized losses of $0.28 per weighted average common share1 for the second quarter of 2020.
• NAV per common share of $7.45 as of June 30, 2020.
• Second quarter 2020 GAAP net income (inclusive of unrealized mark-to-market gains) of $51.7 million, or $1.71 per weighted average common share.
• Weighted average effective yield of the Company’s collateralized loan obligation (“CLO”) equity portfolio (excluding called CLOs) was 12.33% as of June 30, 2020. Weighted average expected yield of the Company’s CLO equity portfolio (excluding called CLOs), based on fair market value, was 33.57% as of June 30, 20202.
• Deployed $26.6 million in net capital and received $20.4 million in recurring cash distributions3 from the Company’s investment portfolio in the second quarter of 2020.
• Issued approximately 1.9 million shares of common stock at a premium to NAV during the second quarter for total net proceeds to the Company of approximately $13.1 million pursuant to the Company’s “at-the-market” offering program.
• Repurchased and retired $0.3 million of the Company’s unsecured 6.6875% Notes due 2028 (“ECCX”).

SUBSEQUENT EVENTS

• NAV per common share estimated to be between $7.82 and $7.92 as of July 31, 2020.
• Deployed $5.6 million in net capital from July 1, 2020 through August 7, 2020; received $15.7 million of recurring cash distributions from the Company’s investment portfolio over the same period.
• Issued 78,679 shares of common stock at a premium to NAV from July 1, 2020 through August 7, 2020 for total net proceeds to the Company of approximately $0.6 million pursuant to the Company’s “at-the-market” offering program.

“The second quarter saw a strong rebound in the value of our investment portfolio and our portfolio continues to generate meaningful cash flow,” said Thomas Majewski, Chief Executive Officer. “During the quarter, we opportunistically sourced investments at discounted prices in the secondary market. Our balance sheet remains strong, with no maturities prior to October 2026 and over $22 million of cash as of August 7, 2020.”

“For the second quarter, our net investment income and realized losses of $0.28 per share exceeded our common distribution level by over 10%,” added Mr. Majewski. “We believe the Company is well positioned going into the second half of the year.”

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

You May Also Be Interested In

• Optimum Communications gets NYSE non-compliance notice over stock price
• CleanCore Solutions to rename itself Zone Frontier Inc. on Aug. 31
• Exzeo Group authorizes $25 million share repurchase program