Stellus Capital Investment Corporation Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2020

March 4, 2021 10:46 PM EST

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HOUSTON, March 4, 2021 /PRNewswire/ -- Stellus Capital Investment Corporation (NYSE: SCM) ("Stellus" or "the Company") today announced financial results for its fourth fiscal quarter and year ended December 31, 2020.

In describing the Company's 2020 activities, Robert T. Ladd, Chairman and Chief Executive Officer of the Company, stated, "I am pleased to report that our portfolio has performed well throughout the unprecedented pandemic and that our net asset value has risen back above $14.00 per share. As we have just completed our eighth full year of operations, our shareholders have received $10.99 per share of dividends life-to-date. During 2020, we paid dividends of $1.15 per share and significantly improved our liquidity and available capital position through the upsize and extension of our bank facility through September 2025, the issuance in January 2021 of $100 million of 4.875% bonds due 2026 and the continued funding of equity into our second SBIC license. For 2021, we have seen an increase in investment opportunities and as a result have funded $58 million on a cost basis since year-end 2020, increasing our investment portfolio by $43 million over the same period, net of payoffs."

FINANCIAL HIGHLIGHTS

($ in millions, except data relating to per share amounts and shares outstanding)

Q4-20

YTD-20

Q4-19

YTD-19

Amount

Per Share

Amount

Per Share

Amount

Per Share

Amount

Per Share

Net investment income

$4.99

$0.26

$21.99

$1.13

$6.89

$0.36

$22.44

$1.23

Core net investment income (1)

$5.43

0.28

22.40

1.15

6.08

0.32

24.14

1.32

Net realized gain (loss) on investments

(7.69)

(0.39)

(10.13)

(0.52)

0.42

0.02

19.57

1.07

Total realized income(2)

(2.70)

(0.14)

11.86

0.61

7.31

0.38

42.00

2.30

Distributions(3)

-

-

(22.40)

(1.15)

(6.45)

(0.34)

(25.04)

(1.36)

Net unrealized appreciation

(depreciation) on investments

19.61

1.01

8.56

0.44

(5.45)

(0.29)

(15.50)

(0.85)

Provision for taxes on unrealized gains

on investments in taxable subsidiaries

(0.10)

(0.01)

(0.22)

(0.01)

(0.03)

(0.00)

(0.07)

0.00

Net increase in net assets resulting

from operations

$16.81

0.86

20.19

1.04

$1.83

0.10

26.44

1.45

Weighted average shares outstanding

19,486,003

19,471,500

18,926,817

18,275,696

(1)

Core net investment income, as presented, excludes the impact of capital gains incentive fees and income taxes, the majority of which are excise taxes. The Company believes presenting core net investment income and the related per share amount is a useful supplemental disclosure for analyzing its financial performance. However, core net investment income is a non-U.S GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP. A reconciliation of net investment income in accordance with U.S. GAAP to core net investment income is presented in the table below the financial statements.      

(2)

Total realized income is the sum of net investment income and net realized gains on investments; both U.S. GAAP measures.

(3)

In 2020, fourth quarter dividends were declared in the third quarter. 

 

PORTFOLIO ACTIVITY

($ in millions, except data relating to per share amounts and number of portfolio companies)

As of

As of

12/31/2020

12/31/2019

Investments at fair value

$653.4

$628.9

Total assets

$674.9

$648.5

Net assets

$273.4

$270.6

Shares outstanding

19,486,003

19,131,746

Net asset value per share

$14.03

$14.14

Q4-20

YTD-20

Q4-19

YTD-19

New investments

$64.8

$152.0

$73.6

$246.5

Repayments of investments

(46.4)

(128.8)

(26.6)

(128.2)

Net activity

$18.4

$23.2

$47.0

$118.3

As of

As of

12/31/2020

12/31/2019

Number of portfolio company investments

66

63

Number of debt investments

51

51

Weight average yield of debt and other income producing investments (1)

Cash

7.8%

8.7%

Payment-in-kind ("PIK")

0.0%

0.0%

Fee amortization

0.5%

0.5%

Total

8.3%

9.2%

Weighted average yield on total investments (2)

Cash

7.4%

8.3%

PIK

0.0%

0.0%

Fee amortization

0.5%

0.5%

Total

7.9%

8.8%

(1)

The dollar-weighted average annualized effective yield is computed using the effective interest rate for our debt investments and other income producing investments, including cash and PIK interest, as well as the accretion of deferred fees. The individual investment yields are then weighted by the respective cost of the investments (as of the date presented) in calculating the weighted average effective yield of the portfolio.  The dollar-weighted average annualized yield on the Company's investments for a given period will generally be higher than what investors in shares of our common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expense or any sales load that may be paid by investors.

(2)

The dollar weighted average yield on total investments takes the same yields as calculated in the footnote above, but weights them to determine the weighted average effective yield as a percentage of the Company's total investments, including non-income producing loans and equity.

Results of Operations

Investment income for the year ended December 31, 2020 and 2019 totaled $56.7 million and $58.9 million, respectively, most of which was interest income from portfolio investments. 

Operating expenses for the year ended December 31, 2020 and 2019, totaled $34.7 million and $36.5 million, respectively. For the same respective periods, base management fees totaled $11.1 million and $9.7 million, income incentive fees totaled $2.5 million and $5.8 million, capital gains incentive fees totaled ($0.4) million and $0.8 million, fees and expenses related to our borrowings totaled $16.0 million and $15.0 million (including interest and amortization of deferred financing costs), administrative expenses totaled $1.8 million and $1.7 million, income tax totaled $0.8 million and $0.9 million, and other expenses totaled $2.9 million and $2.6 million, respectively.

For the year ended December 31, 2020 and 2019, net investment income was $22.0 million and $22.4 million, or $1.13 and $1.23 per common share based on weighted average common shares outstanding of 19,471,500 and 18,275,696, respectively.

The capital gains incentive fee of ($0.4) million and $0.8 million for the year ended December 31, 2020 and 2019, respectively, was accrued for U.S. GAAP purposes due to the increase in realized and unrealized gains over the years. There can be no assurance that unrealized appreciation or depreciation will be realized in the future. Accordingly, such fees, as calculated and accrued, would not necessarily be payable under the investment advisory agreement, and may never be paid based upon the computation of incentive fees in subsequent periods. The income tax expense accrual of $0.8 million and $0.9 million for the year ended December 31, 2020 and 2019, respectively, was accrued based on estimates of undistributed taxable income, which was generated largely from capital gains.  Excluding these accruals, net investment income for the year ended December 31, 2020 would be $22.4 million, or $1.15 per share; and for the year ended December 31, 2019, net investment income would have been $24.1 million, or $1.32 per share.

The Company's investment portfolio had a net change in unrealized appreciation (depreciation) for the year ended December 31, 2020 and 2019, of $8.6 million and ($15.5) million, respectively.  For the year ended December 31, 2020 and 2019, the Company had realized (losses) gains of ($10.1) million and $19.6 million, respectively. 

For the year ended December 31, 2020 and 2019, net increase in net assets resulting from operations totaled $20.2 million and $26.4 million, or $1.04 per common share and $1.45 per common share, based on weighted average common shares outstanding of 19,471,500 and 18,275,696, respectively. 

Liquidity and Capital Resources

As of December 31, 2020 and 2019, our amended and restated senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent (as amended from time to time, the "Credit Facility") provided for borrowings in an aggregate amount of up to $230.0 and $220.0 million, respectively, on a committed basis. As of December 31, 2020 and 2019, our Credit Facility had an accordion feature which allowed for potential future expansion of the facility size to $280.0 and $250.0 million, respectively. As of December 31, 2020 and December 31, 2019, we had $174.0 million and $161.6 million in outstanding borrowings under the Credit Facility, respectively.

For the for the year ended December 31, 2020, our operating activities used cash of $3.5 million primarily in connection with the purchase of portfolio investments, offset by sales and repayments of portfolio investments, For the same period, our financing activities provided cash of $5.8 million, primarily from proceeds from SBA-guaranteed debentures, net borrowings on our Credit Facility and proceeds from the issuance of shares of our common stock.

For the year ended December 31, 2019, our operating activities used cash of $93.3 million, primarily in connection with the purchase of portfolio investments, offset by sales and repayments of portfolio investments. For the same period, our financing activities provided cash of $92.0 million, primarily from proceeds from the issuance of shares of our common stock, proceeds from SBA-guaranteed debentures and net borrowings on our Credit Facility.

Distributions

During the three and twelve months ended December 31, 2020, we declared aggregate distributions for of $0.00 per share and $1.15 ($0 million and $22.4 million, respectively). Our fourth quarter regular dividend of $0.25 per share, along with a special dividend of $0.06 per share, were declared in the third quarter in order to maintain our qualification for taxation as a regulated investment company and to eliminate our liability for corporate-level U.S. federal income tax. During the three and twelve months ended December 31, 2019, we declared aggregate distributions of $0.34 and $1.36 per share ($6.5 million and $25.0 million, respectively). Tax characteristics of all distributions are reported to stockholders on Form 1099-DIV.  None of the dividends declared in 2020 are expected to include a return of capital.

Recent Portfolio Activity

For the quarter ended December 31, 2020, we funded $64.8 million in five new and eight existing portfolio companies and received $46.4 million from five repayments, paydowns and amounts received from equity investments. The new investment transactions and repayments that occurred during the quarter are summarized as follows:

On October 1, 2020, we received full repayment on the first lien term loan of C.A.R.S Protection Plus, Inc. for total proceeds of $7.4 million. We also received $0.4 million in full realization on the equity of the company, resulting in a $0.3 million gain.

On October 19, 2020, we invested $40 thousand in the equity of CF Topco LLC, an existing portfolio company.

On October 29, 2020 we received full repayment on the first lien term loan of Furniture Factory Outlet, LLC for total proceeds of $4.2 million, resulting in a $8.6 million loss. In addition, on November 5, 2020, our unsecured term loan investment in Furniture Factory Holdings, LLC and our equity investment in Furniture Factory Ultimate Holding, LP were terminated, resulting in a $0.3 million loss.

On October 30, 2020, we invested $0.1 million in the equity of Legacy Parent, Inc., an existing portfolio company.

On November 12, 2020, we invested $0.1 million in the equity of PCS Software, Inc, an existing portfolio company. On December 30, 2020, we invested $0.3 million in the revolver.

On November 20, 2020, we invested $12.5 million in the first lien term loan of CommentSold, LLC, an e-commerce platform that helps independent boutique shop owners sell products through mobile phone apps. Additionally, we committed $0.1 million in an unfunded revolver of the company.

On November 25, 2020, we received $1.3 million in full realization of the investment in Condor Top Holdco Limited, resulting in a $0.8 million gain. In addition, we received $0.2 million in full realization of the investment in Condor Holdings Limited, resulting in a $0.1 million gain.

On November 30, 2020, we received full repayment on the first lien term loan and revolver of Advanced Barrier Extrusions, LLC for total proceeds of $14.4 million. On the same day, we invested $17.5 million in a first lien term loan and $0.5 million in equity in the company.

On December 9, 2020, we invested $0.1 million in the revolver of Industry Dive, Inc, an existing portfolio company.

On December 11, 2020, we invested $0.1 million in the equity of Lynx FBO Investments, LLC, an existing portfolio company.

On December 21, 2020, we invested $11.5 million in the first lien term loan of CompleteCase, LLC, a provider of online uncontested divorce solutions in the U.S. (all 50 states) and Canada, Additionally, we committed $0.5 million in the equity of the company and $0.1 million in an unfunded revolver.

On December 21, 2020, we invested $10 million in the second lien term loan of Vortex Companies LLC, a provider of trenchless services and products to restore and repair large diameter water, sewer, and industrial pipe infrastructure.

On December 24, 2020, we received full repayment on the first lien term loan of Kelleyamerit Holdings, Inc. for total proceeds of $9.8 million, including a $0.03 million prepayment fee. On the same day, we invested $11.3 million in a first lien term loan of the company.

On December 24, 2020, we invested $30 thousand in the revolver of Invincible Boat Company LLC, an existing portfolio company.

On December 29, 2020, we invested $1.3 million in the delayed draw term loan of Venbrook Buyer, LLC, an existing portfolio company. Additionally, we invested $30 thousand in equity of the company.

Events Subsequent to December 31, 2020

On January 14, 2021, we received full repayment on the first lien term loan and revolver of BFC Solmetex, LLC for total proceeds of $13.6 million. We also received full repayment on the first lien term loan of Bonded Filter Co. LLC, a subsidiary of BFC Solmetex, LLC, for total proceeds of $1.2 million.

On January 29, 2021, we invested $11.3 million in the first lien term loan of NuSource Financial, LLC, a provider of technology integration and installation of Automated Teller Machines / Integrated Teller Machines ("ATM" / "ITM"), maintenance services, and security solutions. Additionally, we invested $4.8 million in the subordinated debt and warrants of the company.

On February 1, 2021, we invested $0.4 million in the equity of Tailwind Core Investor, LLC, an existing portfolio company.

On February 11, 2021, we invested $7.2 million in the first lien term loan of Time Manufacturing Acquisition, LLC, an existing portfolio company. Additionally, we invested $0.1 million in the equity of the company.

On February 19, 2021, we invested $13.5 million in the first lien term loan and committed $0.1 million in the unfunded revolver of CEATI International, Inc., a provider of intellectual content, technical trade programs, research groups, and conferences for utility companies. Additionally, we invested $0.3 million in the equity of the company.

On March 1, 2021, we invested $10.8 million in the first lien term loan and committed $0.1 million in the unfunded revolver of TAC LifePort Purchaser, LLC, a provider of aerospace products for the U.S. military / government, air medical, and high-end VIP aircraft end markets. Additionally, we invested $0.5 million in the equity of the company.

On March 2, 2021, we invested $10.0 million in the first lien term loan and committed $0.1 million in the unfunded revolver of TradePending, LLC, a provider of vehicle trade-in and merchandising intelligence solutions for auto dealerships, primarily flagship dealerships. Additionally, we invested $0.8 million in the equity of the company.

2026 Notes

On January 14, 2021, the Company issued $100,000,000 in aggregate principal amount of 4.875% fixed-rate notes due 2026 (the "2026 Notes"). The 2026 Notes will mature on March 30, 2026, and may be redeemed in whole or in part at any time or from time to time at our option on or after December 31, 2025 at a redemption price equal to 100% of the outstanding principal, plus accrued and unpaid interest. Interest is payable semi-annually beginning September 30, 2021. The Company used the net proceeds from this offering to fully redeem the 2022 Notes and repay a portion of the outstanding amount under the Credit Facility.

Redemption of the 2022 Notes 

On February 12, 2021, the Company redeemed all $48,875,000 in aggregate principal amount of the 2022 Notes. The 2022 Notes were redeemed at 100% of their principal amount, plus the accrued and unpaid interest thereon through the redemption date.

Credit Facility

The outstanding balance under the Credit Facility as of March 3, 2021 was $164.5 million.

SBA-guaranteed debentures

The outstanding balance of SBA-guaranteed debentures as of March 3, 2021 was $210.0 million.

SBIC II subsidiary

On January 21, 2021, we contributed $15.0 million to the Stellus Capital SBIC II, L.P., bringing total contributed capital to $35.0 million. On January 25, 2021, we increased committed capital to $60.0 million.

Dividend Declared

On January 15, 2021, the Company's board of directors changed the frequency of distributions from quarterly to monthly and declared a regular monthly dividend for each of January, February and March 2021 as follows:

Declared

Ex-Dividend Date

Record Date

Payment Date

Amount per Share

1/15/2021

1/28/2021

1/29/2021

2/16/2021

$

0.0833

1/15/2021

2/25/2021

2/26/2021

3/15/2021

$

0.0833

1/15/2021

3/30/2021

3/31/2021

4/15/2021

$

0.0833

Please refer to the website for regarding the U.S. federal income tax characteristics of our 2020 dividends. The information is posted on the website under Tax Information" (https://www.stelluscapital.com/public-investors/tax-information/). 

Conference Call Information

Stellus Capital Investment Corporation will host a conference call to discuss these results on Friday, March 5, 2021 at 10:00 AM, Central Standard Time.  The conference call will be led by Robert T. Ladd, Chief Executive Officer, and W. Todd Huskinson, Chief Financial Officer, Chief Compliance Officer, Treasurer, and Secretary.

For those wishing to participate by phone, please dial 800-437-2398 (domestic).  Use passcode 9096014.  Starting approximately twenty-four hours after the conclusion of the call, a replay will be available through Saturday, March 13, 2021 by dialing (888) 203-1112 and entering passcode 9096014. The replay will also be available on the Company's website.

For those wishing to participate via Live Webcast, connect via the Public Company (SCIC) section of our website at www.stelluscapital.com, under the Events tab. A replay of the conference will be available on our website for approximately 90 days.

Contacts Stellus Capital Investment Corporation W. Todd Huskinson, (713) 292-5414 Chief Financial Officer thuskinson@stelluscapital.com  

 

PART I — FINANCIAL INFORMATION

STELLUS CAPITAL INVESTMENT CORPORATION

 CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

December 31,

December 31,

2020

2019

ASSETS

Non-controlled, non-affiliated investments, at fair value

(amortized cost of $658,628,966 and $642,707,824,

respectively)

$

653,424,495

$

628,948,077

Cash and cash equivalents

18,477,602

16,133,315

Receivable for sales and repayments of investments

215,929

123,409

Interest receivable

2,189,448

2,914,710

Other receivables

25,495

25,495

Deferred offering costs

90,000

Prepaid expenses

487,188

368,221

Total Assets

$

674,910,157

$

648,513,227

LIABILITIES

Notes payable

$

48,307,518

$

47,974,202

Credit facility payable

171,728,405

160,510,633

SBA-guaranteed debentures

173,167,496

157,543,853

Dividends payable

2,167,630

Management fees payable

2,825,322

2,695,780

Income incentive fees payable

681,660

1,618,509

Capital gains incentive fees payable

521,021

880,913

Interest payable

2,144,085

2,322,314

Unearned revenue

523,424

559,768

Administrative services payable

391,491

413,278

Deferred tax liability

359,590

134,713

Income tax payable

724,765

917,000

Other accrued expenses and liabilities

174,731

203,461

Total Liabilities

$

401,549,508

$

377,942,054

Commitments and contingencies (Note 7)

Net Assets

$

273,360,649

$

270,571,173

NET ASSETS

Common stock, par value $0.001 per share (100,000,000 shares

authorized; 19,486,003 and 19,131,746 issued and outstanding,

respectively)

$

19,486

$

19,132

Paid-in capital

276,026,667

272,117,091

Accumulated undistributed deficit

(2,685,504)

(1,565,050)

Net Assets

$

273,360,649

$

270,571,173

Total Liabilities and Net Assets

$

674,910,157

$

648,513,227

Net Asset Value Per Share

$

14.03

$

14.14

 

STELLUS CAPITAL INVESTMENT CORPORATION

 CONSOLIDATED STATEMENTS OF OPERATIONS

For the

For the

For the

year

year

year

ended

ended

ended

December 31,

December 31,

December 31,

2020

2019

2018

INVESTMENT INCOME

Interest income

$

55,350,781

$

56,895,990

$

51,463,033

Other income

1,307,533

2,015,899

1,803,305

Total Investment Income

$

56,658,314

$

58,911,889

$

53,266,338

OPERATING EXPENSES

Management fees

$

11,084,450

$

9,703,706

$

8,154,842

Valuation fees

290,445

265,103

307,838

Administrative services expenses

1,781,603

1,691,764

1,390,375

Income incentive fees

2,527,813

5,809,672

5,529,376

Capital gains incentive (reversal) fees

(359,892)

799,876

81,038

Professional fees

950,716

1,040,011

1,189,071

Directors' fees

394,816

383,000

317,000

Insurance expense

384,774

352,382

348,500

Interest expense and other fees

15,950,087

14,976,024

12,338,755

Income tax expense

771,134

903,905

275,106

Other general and administrative expenses

890,465

547,637

697,900

Total Operating Expenses

$

34,666,411

$

36,473,080

$

30,629,801

Net Investment Income

$

21,991,903

$

22,438,809

$

22,636,537

Net realized (loss) gain on non-controlled, non-affiliated

investments

$

(10,129,859)

$

19,565,903

$

5,540,518

Tax provision on realized gain on investment

$

$

$

(267,975)

Net change in unrealized appreciation (depreciation)

on non-controlled, non-affiliated investments

$

8,555,274

$

(15,501,951)

$

(1,706,549)

Net change in unrealized appreciation

on non-controlled, affiliated investments

$

-

$

2,185

$

60,000

Provision for taxes on net unrealized gain

on investments

$

(224,877)

$

(66,760)

$

(67,953)

Net Increase in Net Assets

Resulting from Operations

$

20,192,441

$

26,438,186

$

26,194,578

Net Investment Income Per Share

$

1.13

$

1.23

$

1.42

Net Increase in Net Assets Resulting

from Operations Per Share

$

1.04

$

1.45

$

1.64

Weighted Average Shares of Common Stock Outstanding

19,471,500

18,275,696

15,953,571

Distributions Per Share

$

1.15

$

1.36

$

1.36

 

STELLUS CAPITAL INVESTMENT CORPORATION

 CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

For the year

For the year

For the year

ended

ended

ended

December 31,

December 31,

December 31,

2020

2019

2018

Increase in Net Assets Resulting from

Operations

Net investment income

$

21,991,903

$

22,438,809

$

22,636,537

Net realized (loss) gain on non-controlled,

non-affiliated investments

(10,129,859)

19,565,903

5,540,518

Tax provision on realized gain on investments

(267,975)

Net change in unrealized appreciation (depreciation) on

non-controlled, non-affiliated investments

8,555,274

(15,501,951)

(1,706,549)

Net change in unrealized appreciation on

non-controlled, affiliated investments

2,185

60,000

Provision for taxes on unrealized appreciation

on investments

(224,877)

(66,760)

(67,953)

Net Increase in Net Assets Resulting

from Operations

$

20,192,441

$

26,438,186

$

26,194,578

Stockholder Distributions From:

Net investment income

$

(22,402,959)

$

(10,000,000)

$

(16,418,007)

Net realized capital gains

(15,038,173)

(5,272,543)

Total Distributions

$

(22,402,959)

$

(25,038,173)

$

(21,690,550)

Capital Share Transactions

Issuance of common stock

$

5,023,937

$

45,862,239

$

94,788

Sales load

(18,169)

(1,015,127)

Offering costs

(5,681)

(521,715)

Partial share transactions

(94)

755

(1,051)

Net Increase in Net Assets Resulting From

Capital Share Transactions

$

4,999,993

$

44,326,153

$

93,737

Total Increase in Net Assets

$

2,789,476

$

45,726,166

$

4,597,765

Net Assets at Beginning of Period

$

270,571,173

$

224,845,007

$

220,247,242

Net Assets at End of Period

$

273,360,649

$

270,571,173

$

224,845,007

 

STELLUS CAPITAL INVESTMENT CORPORATION

 CONSOLIDATED STATEMENTS OF CASH FLOWS

For the year

For the year

For the year

ended

ended

ended

December 31,

December 31,

December 31,

2020

2019

2018

Cash flows from operating activities

Net increase in net assets resulting from operations

$

20,192,441

$

26,438,186

$

26,194,578

Adjustments to reconcile net increase in net assets

from operations to net cash used in operating activities:

Purchases of investments

(152,007,165)

(246,438,384)

(272,927,459)

Proceeds from sales and repayments of investments

128,627,422

128,206,318

147,528,448

Net change in unrealized (appreciation) depreciation on investments

(8,555,274)

15,499,766

1,646,549

Increase in investments due to PIK

(664,992)

(415,933)

(1,869,905)

Amortization of premium and accretion of discount, net

(2,098,788)

(1,774,469)

(1,553,333)

Deferred tax provision

224,877

66,760

67,953

Amortization of loan structure fees

647,872

519,995

456,151

Amortization of deferred financing costs

333,316

332,407

335,309

Amortization of loan fees on SBA-guaranteed debentures

701,068

623,900

623,989

Net realized loss (gain) on investments

10,129,859

(19,565,903)

(5,540,518)

Changes in other assets and liabilities

Decrease (increase) in interest receivable

725,262

873,974

(866,480)

Decrease (increase) in other receivable

-

59,751

(85,246)

(Increase) decrease in prepaid expenses

(118,967)

(23,600)

16,649

Increase in management fees payable

129,542

511,805

562,383

(Decrease) increase in incentive fees payable

(936,849)

(318,029)

1,564,891

(Decrease) increase in capital gains incentive fees payable

(359,892)

799,875

81,038

(Decrease) increase in administrative services payable

(21,787)

21,087

65,158

(Decrease) increase in interest payable

(178,229)

458,748

842,393

(Decrease) Increase in unearned revenue

(36,344)

149,175

271,289

(Decrease) increase in income tax payable

(192,235)

600,908

316,092

(Decrease) increase in other accrued expenses and liabilities

(28,730)

87,559

(152,511)

Net Cash Used In Operating Activities

$

(3,487,593)

$

(93,286,104)

$

(102,422,582)

Cash flows from Financing Activities

Proceeds from the issuance of common stock

$

4,794,994

$

45,862,239

$

-

Sales load for common stock issued

(18,169)

(1,015,127)

-

Offering costs paid for common stock

(95,681)

(503,042)

(18,673)

Stockholder distributions paid

(24,341,646)

(24,678,113)

(21,594,863)

Proceeds from SBA Debentures

15,500,000

11,000,000

60,000,000

Financing costs paid on SBA Debentures

(577,425)

(467,850)

(2,055,000)

Borrowings under Credit Facility

120,950,000

245,750,000

246,300,000

Repayments of Credit Facility

(108,500,000)

(183,750,000)

(187,500,000)

Financing costs paid on Credit facility

(1,880,099)

(246,589)

(351,403)

Partial share transactions

(94)

755

(1,051)

Net Cash Provided by Financing Activities

$

5,831,880

$

91,952,273

$

94,779,010

Net Increase in Cash and Cash Equivalents

$

2,344,287

$

(1,333,831)

$

(7,643,572)

Cash and cash equivalents balance at beginning of period

16,133,315

17,467,146

25,110,718

Cash and Cash Equivalents Balance at End of Period

$

18,477,602

$

16,133,315

$

17,467,146

Supplemental and Non-Cash Activities

Cash paid for interest expense

$

14,441,061

$

13,035,976

$

10,075,913

Excise tax paid

940,000

280,000

27,717

Shares issued pursuant to Dividend Reinvestment Plan

228,943

-

94,788

(Decrease) increase in dividends payable

(2,167,630)

360,060

899

Increase (decrease) in deferred offering costs

90,000

(18,673)

18,673

 

Reconciliation of Core Net Investment Income

(Unaudited)

Year

Quarter

ended

ended

December 31, 2020

December 31, 2020

Net investment income

$21,991,903

$4,987,881

Capital gains incentive fee

$(359,892)

$521,021

Income tax expense

$771,134

$(82,497)

Core net investment income(1)

$22,403,145

$5,426,405

Per share amounts:

Net investment income per share

$1.13

$0.26

Core net investment income per share(1)

$1.15

$0.28

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/stellus-capital-investment-corporation-reports-results-for-its-fourth-fiscal-quarter-and-year-ended-december-31-2020-301241195.html

SOURCE Stellus Capital Investment Corporation



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