Eagle Point Credit (ECC) Misses Q3 EPS by 49c

Eagle Point Credit (NYSE: ECC) reported Q3 EPS of ($0.23), $0.49 worse than the analyst estimate of $0.26.

THIRD QUARTER HIGHLIGHTS

• Net investment income (“NII”) and realized losses of $0.23 per weighted average common share1 for the third quarter of 2020.
• NAV per common share of $8.45 as of September 30, 2020.
• Third quarter 2020 GAAP net income (inclusive of unrealized mark-to-market gains) of $44.5 million, or $1.40 per weighted average common share.
• Weighted average effective yield of the Company’s collateralized loan obligation (“CLO”) equity portfolio (excluding called CLOs) was 11.48% as of September 30, 2020. Weighted average expected yield of the Company’s CLO equity portfolio (excluding called CLOs), based on fair market value, was 27.81% as of September 30, 20202.
• Deployed $27.2 million in net capital and received $16.7 million in recurring cash distributions3 from the Company’s investment portfolio in the third quarter of 2020. Including proceeds from called investments, the Company received cash distributions of $19.7 million over the same period.

“We saw our investment portfolio’s value continue to rebound in the third quarter, with our NAV increasing 13% from the end of the second quarter,” said Thomas Majewski, Chief Executive Officer. “Our NII was $0.29 per share, above our current distribution rate, though we did also realize a few losses.”

“As we moved into October, recurring cash flows on our portfolio increased by over 50% as LIBOR mismatches from the second and third quarter turned in the Company’s favor,” added Mr. Majewski. “Our overall liquidity position remains strong, with no maturities prior to October 2026 and over $12 million of cash on our balance sheet at the end of October.”

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

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