Harvest Capital (HCAP) Tops Q3 EPS by 11c

Harvest Capital (NASDAQ: HCAP) reported Q3 EPS of $0.14, $0.11 better than the analyst estimate of $0.03.

"Our third quarter results exceeded expectations, in part due to the payoff of Kleen-Tech, which accelerated our deferred fees into the quarter," said Joseph Jolson, Chairman and CEO. "As we have deleveraged our balance sheet, our net investment income will continue to be adversely affected until we can grow our investment portfolio. On a positive note, our net asset value per share was relatively stable in the quarter and our weighted average risk rating improved modestly despite the payoff of a larger 1-rated credit in the period. In addition, one of our non-accrual loans, GNC, emerged from bankruptcy in mid-October with a substantial cash payment to Harvest and a new performing loan. We remain hopeful that we will make more progress in resolving the remaining 4-rated credits in the next few quarters, assuming the economy continues to gradually improve,” concluded Mr. Jolson.

COVID-19 DEVELOPMENTS

The COVID-19 pandemic, and the related effects on the U.S. and global economies, has had, and may continue to have, adverse consequences for the business operations of some of the Company's portfolio companies and has adversely affected, and threatens to continue to adversely affect, the Company's operations and the operations of HCAP Advisors. Given the dynamic nature of this situation, the Company cannot reasonably estimate the full impact of COVID-19 on its financial condition, results of operations or cash flows in the future. However, the Company does expect that it could have a material adverse impact on its future net investment income, the fair value of its portfolio investments, and the Company's results of operations and financial condition as well as its portfolio companies. Please see the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2020, as filed with the Securities and Exchange Commission on November 5, 2020, for more information.

For earnings history and earnings-related data on Harvest Capital (HCAP) click here.

You May Also Be Interested In

• Optimum Communications gets NYSE non-compliance notice over stock price
• Trinity Biotech secures $7M from Perceptive, regains Nasdaq compliance
• Realty Income closes $1B convertible notes offering