Stellus Capital Investment Corporation Reports Results for its Fourth Fiscal Quarter and Year Ended December 31, 2025
FINANCIAL HIGHLIGHTS
($ in millions, except data relating to per share amounts and shares outstanding)
Three Months Ended | Years Ended | ||||||||||
Amount | Per Share | Amount | Per Share | Amount | Per Share | Amount | Per Share | ||||
Net investment income | |||||||||||
Core net investment income(1) | 8.53 | 0.29 | 10.15 | 0.37 | 38.46 | 1.36 | 43.74 | 1.71 | |||
Net realized gain (loss) on investments | 5.49 | 0.19 | 5.95 | 0.22 | 1.54 | 0.05 | (15.74) | (0.62) | |||
Net realized loss on foreign currency translation | (0.01) | — | (0.02) | — | (0.07) | — | (0.09) | — | |||
Loss on debt extinguishment | (0.06) | - | — | — | (0.23) | (0.01) | — | — | |||
Total realized income(2) | |||||||||||
Distributions | (11.58) | (0.40) | (10.90) | (0.40) | (45.46) | (1.60) | (41.22) | (1.61) | |||
Net unrealized change in (depreciation) appreciation | (8.61) | (0.30) | (6.86) | (0.25) | (11.10) | (0.39) | 19.57 | 0.76 | |||
Net unrealized change in depreciation on foreign | — | — | (0.02) | — | 0.03 | — | (0.02) | — | |||
Benefit for taxes on unrealized depreciation on | — | — | — | — | — | — | 0.19 | 0.01 | |||
Net increase in net assets resulting from operations | |||||||||||
Weighted average shares outstanding | 28,947,254 | 27,174,972 | 28,364,809 | 25,596,593 | |||||||
(1) | Core net investment income, as presented, excludes the impact of capital gains incentive fees (reversal) 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- |
(2) | Total realized income is the sum of net investment income, net realized gains (losses) on investments, net realized gains (losses) on foreign currency, and losses on debt extinguishment, all |
PORTFOLIO ACTIVITY
($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)
As of | As of | |||||||
Investments at fair value | ||||||||
Total assets | ||||||||
Net assets | ||||||||
Shares outstanding | 28,947,254 | 27,481,118 | ||||||
Net asset value per share | ||||||||
Three Months Ended | Years Ended | |||||||
New investments | ||||||||
Repayments of investments | (54.0) | (15.5) | (139.7) | (151.8) | ||||
Net activity | ( | |||||||
As of | As of | |||||||
Number of portfolio company investments
| 115 | 105 | ||||||
Number of debt investments | 100 | 92 | ||||||
Weighted average yield of debt and other | ||||||||
Cash | 8.5 % | 9.5 % | ||||||
Payment-in-kind ("PIK") | 0.5 % | 0.4 % | ||||||
Fee amortization | 0.3 % | 0.4 % | ||||||
Total | 9.3 % | 10.3 % | ||||||
Weighted average yield of total | ||||||||
Cash | 7.9 % | 8.9 % | ||||||
PIK | 0.5 % | 0.4 % | ||||||
Fee amortization | 0.3 % | 0.4 % | ||||||
Total | 8.7 % | 9.7 % | ||||||
(3) | 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 the Company's common stock would realize in a return over the same period because the dollar-weighted average annualized yield does not reflect the Company's expenses or any sales load that may be paid by investors. |
(4) | 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 equity positions and debt investments on non-accrual status. |
Results of Operations
Investment income for the three months ended
Gross operating expenses for the three months ended
Net investment income was
For the three months ended
Net increase in net assets resulting from operations totaled
Liquidity and Capital Resources
As of
On
As of
Distributions
For both the three months ended
Recent Portfolio Activity
The Company invested in the following portfolio companies during the three months ended
Activity Type | Date | Company Name | Company Description | Investment Amount | Instrument Type | ||||||
Add-On Investment | The Hardenbergh Group, Inc.* | Provider of patient safety, clinical risk mitigation, and healthcare | $ | 500,000 | Senior Secured – First Lien | ||||||
Add-On Investment | Manufacturer and distributor of home and personal care products | $ | 225,000 | Priority Revolver Commitment | |||||||
Add-On Investment | EH Real Estate Services, LLC* | Offers residential property brokerage, title & settlement, and | $ | 183,470 | Senior Secured – First Lien | ||||||
New Investment | Fidus Systems Inc. | Provider of outsourced electronic product development and | $ | 4,759,099 | Senior Secured – First Lien | ||||||
$ | 3,172,733 | Delayed Draw Term Loan Commitment | |||||||||
$ | 100,000 | Revolver Commitment | |||||||||
$ | 267,728 | Equity | |||||||||
Add-On Investment | Recharged Opco, LLC* | Provider of residential electrical services | $ | 120,000 | Priority Revolver Commitment | ||||||
Add-On Investment | Channel Partners Intermediateco, LLC* | Provider of outsourced marketing services | $ | 35,175 | Revolver Commitment | ||||||
Add-On Investment | Mobotrex Acquisition, LLC* | Distributor and manufacturer of intelligent traffic solution | $ | 3,523,787 | Senior Secured – First Lien | ||||||
$ | 1,549,698 | Delayed Draw Term Loan Commitment | |||||||||
$ | 73,776 | Revolver Commitment | |||||||||
Add-On Investment | Ad.Net Acquisition, LLC* | A digital marketing company that targets high-conversion | $ | 1,896,568 | Senior Secured – First Lien | ||||||
$ | 85,027 | Equity | |||||||||
Add-On Investment | EH Real Estate Services, LLC* | Offers residential property brokerage, title & settlement, and | $ | 228,112 | Senior Secured – First Lien | ||||||
Add-On Investment | SP L2 Holdings LLC* | Provider of premium in-pool and backyard furniture | $ | 14,832 | Equity | ||||||
Add-On Investment | BC Partners Glengarry Co-Investment | Provider of business-to-business account based marketing services | $ | 10,197 | Equity | ||||||
New Investment | Pure Upper Holdco LLC | Environmental and ambulatory cleaning services for healthcare | $ | 10,000,000 | Senior Secured – First Lien | ||||||
$ | 1,000,000 | Delayed Draw Term Loan Commitment | |||||||||
$ | 100,000 | Revolver Commitment | |||||||||
$ | 246,667 | Equity | |||||||||
Add-On Investment | Venbrook Buyer, LLC* | An independent insurance services broker | $ | 471,156 | Senior Secured – First Lien | ||||||
Add-On Investment | SP CS Holdings LLC* | Provider of product testing and consumer insights | $ | 127,174 | Equity | ||||||
Add-On Investment | Recharged Opco, LLC* | Provider of residential electrical services | $ | 42,500 | Priority Revolver Commitment | ||||||
Add-On Investment | Carolina Topco Holdings, LP* | National commercial surface care and restoration company | $ | 116,033 | Equity | ||||||
New Investment | Pilot Power Group Acquisition, Inc. | Managed energy procurement and energy advisory services | $ | 12,000,000 | Senior Secured – First Lien | ||||||
$ | 366,868 | Equity | |||||||||
Add-On Investment | Solid Surface Holdco, LLC* | National commercial surface care and restoration company | $ | 38,000 | Revolver Commitment | ||||||
New Investment | Valor Buyco, LLC | Provider of dispatched road services | $ | 6,000,000 | Senior Secured – First Lien | ||||||
$ | 100,000 | Delayed Draw Term Loan Commitment | |||||||||
$ | 100,000 | Revolver Commitment | |||||||||
$ | 430,556 | Equity | |||||||||
Add-On Investment | Venbrook Buyer, LLC* | An independent insurance services broker | $ | 942,301 | Senior Secured – First Lien | ||||||
Add-On Investment | FairWave Holdings, LLC* | Specialty coffee platform | $ | 103,720 | Senior Secured – First Lien | ||||||
$ | 579,226 | Delayed Draw Term Loan Commitment | |||||||||
*Existing portfolio company |
The Company realized investments in the following portfolio companies during the three months ended
Activity Type | Date | Company Name | Company Description | Proceeds Received | Realized Gain (Loss) | Instrument Type | ||||||||
Full Repayment | Heartland Business Systems, LLC | End-to-end information | $ | 9,725,000 | $ | — | Senior Secured – First Lien | |||||||
$ | 48,875 | $ | — | Delayed Draw Term Loan | ||||||||||
$ | 824,743 | $ | 656,088 | Equity | ||||||||||
Full Repayment | NuSource Financial Acquisition, Inc. | Provider of technology integration | $ | 7,009,391 | $ | — | Unsecured | |||||||
Full Realization | $ | 1,066,715 | $ | 1,066,715 | Warrants | |||||||||
Full Repayment | Xanitos, Inc. | Environmental and ambulatory | $ | 12,256,000 | $ | — | Senior Secured – First Lien | |||||||
$ | 2,159,481 | $ | — | Delayed Draw Term Loan | ||||||||||
$ | 2,756,526 | $ | 1,703,048 | Equity | ||||||||||
Full Repayment | Unicat Catalyst Holdings, LLC | Manufacturer and distributor of | $ | 6,703,125 | $ | — | Senior Secured – First Lien | |||||||
Full Realization | EHI Buyer, Inc. | Provider of design, engineering, | $ | 1,526,922 | $ | 1,305,158 | Equity | |||||||
*Existing portfolio company |
Events Subsequent to
The Company's management has evaluated subsequent events through
Investment Portfolio
The Company invested in the following portfolio companies subsequent to
Activity Type | Date | Company Name | Company Description | Investment Amount | Instrument Type | ||||||
Add-On Investment | Bart & Associates, LLC* | Provider of content, information, tech-enabled | $ | 2,000,000 | Senior Secured – First Lien | ||||||
$ | 43,413 | Equity | |||||||||
New Investment | Silver Parent, LLC | Senior-care focused placement platform | $ | 7,130,301 | Senior Secured – First Lien | ||||||
$ | 100,000 | Revolver Commitment | |||||||||
$ | 498,641 | Equity | |||||||||
Add-On Investment | GRC Java Holdings, LLC* | Specialty coffee platform | $ | 42,783 | Equity | ||||||
Add-On Investment | EH Real Estate Services, LLC* | Offers residential property brokerage, title & | $ | 380,186 | Senior Secured – First Lien | ||||||
Add-On Investment | evolv Holdco, LLC* | Digital transformation consulting firm | $ | 8,036 | Equity | ||||||
Add-On Investment | BI Investors, LLC* | Provider of center-based applied behavioral analysis | $ | 5,743 | Equity | ||||||
Add-On Investment | Green Topco Holdings, LLC* | Cyber-security focused value-added reseller and | $ | 16,598 | Equity | ||||||
Add-On Investment | Venbrook Buyer, LLC* | An independent insurance services broker | $ | 628,201 | Senior Secured – First Lien | ||||||
Add-On Investment | SP MWM Holdco LLC* | Provider of test and measurement services and | $ | 194,667 | Equity | ||||||
Add-On Investment | EH Real Estate Services, LLC* | Offers residential property brokerage, title & | $ | 190,093 | Senior Secured – First Lien | ||||||
Add-On Investment | Venbrook Buyer, LLC* | An independent insurance services broker | $ | 1,256,415 | Senior Secured – First Lien | ||||||
Add-On Investment | EH Real Estate Services, LLC* | Offers residential property brokerage, title & | $ | 190,093 | Senior Secured – First Lien | ||||||
New Investment | Precision Strategies, LLC | Strategic communications and marketing agency | $ | 6,176,011 | Senior Secured – First Lien | ||||||
$ | 100,000 | Revolver Commitment | |||||||||
New Investment | Synergy Health Partners | Provider of orthopedic and musculoskeletal care | $ | 4,000,000 | Senior Secured – First Lien | ||||||
$ | 500,000 | Delayed Draw Term Loan Commitment | |||||||||
$ | 100,000 | Revolver Commitment | |||||||||
$ | 136,634 | Equity | |||||||||
*Existing portfolio company |
The Company realized investments in the following portfolio companies subsequent to
Activity Type | Date | Company Name | Company Description | Proceeds Received | Realized Gain | Instrument Type | ||||||||
Full Repayment | Luxium Solutions, LLC | Manufacturer and distributor of | $ | 8,169,324 | $ | — | Senior Secured – First Lien | |||||||
$ | 1,182,247 | $ | — | Delayed Draw Term Loan | ||||||||||
Full Repayment | Camp Profiles LLC | Provider of digital marketing | $ | 12,041,875 | $ | — | Senior Secured – First Lien | |||||||
Full Realization | $ | 969,138 | $ | 719,138 | Equity | |||||||||
Full Repayment | Arctiq, Inc. | Cyber-security focused value-added | $ | 12,202,671 | $ | — | Senior Secured – First Lien | |||||||
$ | 399,965 | $ | — | Delayed Draw Term Loan | ||||||||||
Credit Facility
The outstanding balance under the Credit Facility as of
SBA-guaranteed debentures
On
Distributions Declared
On
Ex-Dividend | Record | Payment | Amount per | ||||||
Declared | Date | Date | Date | Share | |||||
$ | 0.1133 | ||||||||
$ | 0.1133 | ||||||||
$ | 0.1133 | ||||||||
Acquisition of Stellus Capital Management
On
Pursuant to the terms of the Transaction, Stellus Capital Management will continue to be managed by its current partners, who will retain control of its day-to-day operations, including investment decisions and investment committee processes, and Stellus Capital Management will continue to serve as our external investment adviser. Consummation of the Transaction will result in a change of control of Stellus Capital Management, which will result in an assignment and corresponding termination of the Investment Advisory Agreement under the 1940 Act. Our Board and stockholders will therefore be asked to approve a new investment advisory agreement with Stellus Capital Management (the "New Investment Advisory Agreement"), the terms of which are expected to remain the same as the Investment Advisory Agreement, other than the initial term of the New Investment Advisory Agreement. Closing of the Transaction is expected to occur mid-2026 and is subject to customary conditions for a transaction of this nature. If approved, the New Investment Advisory Agreement will take effect following the closing of the Transaction.
Stellus Capital Investment Corporation Adopts Stock Repurchase Program
Today the Company announced that its board of directors has authorized a program for the purpose of repurchasing up to
The Company's board of directors authorized the Repurchase Program because it believes the sustained market volatility and uncertainty may cause the Company's common stock to be undervalued from time to time. The timing and number of shares to be repurchased will depend on a number of factors, including market conditions and alternative investment opportunities. In addition, any repurchases will be conducted in accordance with the Investment Company Act of 1940, as amended. The Company has not yet been active in the Repurchase Program and there are no assurances that it will engage in repurchases, but if market conditions warrant, the Company now has the ability to take advantage of situations where the Company's management believes share repurchases would be advantageous to the Company and to its shareholders.
Conference Call Information
Stellus Capital Investment Corporation will host a conference call to discuss these results on
For those wishing to participate by telephone, please dial (888) 506-0062. Use passcode 401700. Starting approximately two hours after the conclusion of the call, a replay will be available through
For those wishing to participate via Live Webcast, connect via the Public (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.
About Stellus Capital Investment Corporation
The Company is an externally managed, closed-end, non-diversified investment management company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing primarily in private lower middle-market companies (typically those with
Forward-Looking Statements
Statements included herein may contain "forward-looking statements" which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus that will be filed with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts
Stellus Capital Investment Corporation
(713) 292-5414
[email protected]
STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | ||||||
ASSETS | ||||||
Controlled investments at fair value (amortized cost of | $ | 14,953,132 | $ | 7,652,436 | ||
Non-controlled, affiliated investments, at fair value (amortized cost of | 3,750,674 | — | ||||
Non-controlled, non-affiliated investments, at fair value (amortized cost of | 988,919,589 | 945,845,252 | ||||
Cash and cash equivalents | 25,050,156 | 20,058,594 | ||||
Receivable for sales and repayments of investments | 581,509 | 335,689 | ||||
Interest receivable | 6,375,996 | 4,947,765 | ||||
Income tax receivable | 1,385,387 | 1,301,965 | ||||
Other receivables | 85,000 | 87,995 | ||||
Related party receivable | 20 | 3,687 | ||||
Prepaid expenses | 150,843 | 666,866 | ||||
Total Assets | $ | 1,041,252,306 | $ | 980,900,249 | ||
LIABILITIES | ||||||
Notes Payable | $ | 122,671,409 | $ | 99,444,355 | ||
Credit Facility payable | 233,167,360 | 172,314,315 | ||||
SBA-guaranteed debentures | 295,984,063 | 321,251,939 | ||||
Dividends payable | 3,858,669 | 3,663,233 | ||||
Management fees payable | 4,442,705 | 4,034,109 | ||||
Income incentive fees payable | 2,317,429 | 3,109,560 | ||||
Interest payable | 6,138,076 | 5,281,343 | ||||
Unearned revenue | 582,007 | 548,626 | ||||
Administrative services payable | 539,338 | 393,513 | ||||
Other accrued expenses and liabilities | 372,294 | 937,316 | ||||
Total Liabilities | $ | 670,073,350 | $ | 610,978,309 | ||
Commitments and contingencies (Note 7) | ||||||
Net Assets | $ | 371,178,956 | $ | 369,921,940 | ||
NET ASSETS | ||||||
Common stock, par value | $ | 28,947 | $ | 27,481 | ||
Paid-in capital | 397,829,793 | 379,549,272 | ||||
Total distributable loss | (26,679,784) | (9,654,813) | ||||
Net Assets | $ | 371,178,956 | $ | 369,921,940 | ||
Total Liabilities and Net Assets | $ | 1,041,252,306 | $ | 980,900,249 | ||
Net Asset Value Per Share | $ | 12.82 | $ | 13.46 | ||
STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
For the years ended | |||||||||
INVESTMENT INCOME | |||||||||
From controlled investments: | |||||||||
Interest income | $ | — | $ | 81,636 | $ | 37,897 | |||
From non-controlled, affiliated investments | |||||||||
Interest income | $ | 8,990 | $ | — | $ | — | |||
Payment-in-kind interest income | 217,434 | — | — | ||||||
From non-controlled, non-affiliated investments | |||||||||
Interest income | $ | 91,999,416 | $ | 96,494,073 | $ | 98,177,254 | |||
Payment-in-kind interest income | 5,538,838 | 3,310,111 | 3,801,637 | ||||||
Other income | 4,374,272 | 4,850,313 | 3,830,780 | ||||||
Total Investment Income | $ | 102,138,950 | $ | 104,736,133 | $ | 105,847,568 | |||
OPERATING EXPENSES | |||||||||
Management fees | $ | 17,178,177 | $ | 15,698,129 | $ | 15,452,347 | |||
Valuation fees | 407,358 | 380,239 | 373,628 | ||||||
Administrative services expenses | 2,134,816 | 1,916,283 | 1,908,191 | ||||||
Income incentive fees | 8,393,139 | 10,045,966 | 10,189,888 | ||||||
Capital gains incentive fee (reversal) | — | — | (569,528) | ||||||
Professional fees | 1,940,744 | 1,190,232 | 1,455,372 | ||||||
Directors' fees | 409,000 | 412,000 | 406,000 | ||||||
Insurance expense | 396,862 | 499,913 | 492,596 | ||||||
Interest expense and other fees | 34,943,265 | 31,506,068 | 32,011,317 | ||||||
Income tax expense | 1,580,338 | 1,808,838 | 1,333,452 | ||||||
Other general and administrative expenses | 1,182,690 | 1,175,765 | 891,170 | ||||||
Total Operating Expenses | $ | 68,566,389 | $ | 64,633,433 | $ | 63,944,433 | |||
Income incentive fee waiver | (3,310,981) | (1,826,893) | (307,442) | ||||||
Total Operating Expenses, net of fee waivers | $ | 65,255,408 | $ | 62,806,540 | $ | 63,636,991 | |||
Net Investment Income | $ | 36,883,542 | $ | 41,929,593 | $ | 42,210,577 | |||
Net realized loss on controlled investments | $ | (1,132,576) | $ | — | $ | — | |||
Net realized loss on non-controlled, affiliated investments | (6,314,327) | — | — | ||||||
Net realized gain (loss) on non-controlled, non-affiliated investments | 8,977,487 | (15,737,004) | (30,211,467) | ||||||
Net realized loss on foreign currency translations | (68,844) | (94,730) | (112,481) | ||||||
Loss on debt extinguishment | (226,095) | — | — | ||||||
Net change in unrealized appreciation (depreciation) on controlled investments | 4,395,102 | 826,772 | (430,577) | ||||||
Net change in unrealized appreciation on non-controlled, affiliated investments | 4,140,601 | — | — | ||||||
Net change in unrealized (depreciation) appreciation on non-controlled, non-affiliated | (19,642,634) | 18,743,637 | 3,222,729 | ||||||
Net change in unrealized appreciation (depreciation) on foreign currency translations | 33,073 | (14,755) | (6,504) | ||||||
Benefit (provision) for taxes on net unrealized depreciation (appreciation) on | — | 188,893 | (126,957) | ||||||
Benefit for taxes on net realized loss on investments | — | 2,221 | 2,987,847 | ||||||
Net Increase in Net Assets Resulting from Operations | $ | 27,045,329 | 45,844,627 | 17,533,167 | |||||
Net Investment Income Per Share—basic and diluted | $ | 1.30 | $ | 1.64 | $ | 1.92 | |||
Net Increase in Net Assets Resulting from Operations Per Share – basic and | $ | 0.95 | $ | 1.79 | $ | 0.80 | |||
Weighted Average Shares of Common Stock Outstanding—basic and diluted | 28,364,809 | 25,596,593 | 22,004,648 | ||||||
Distributions Per Share—basic and diluted | $ | 1.60 | $ | 1.61 | $ | 1.61 | |||
STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS | ||||||||||||||
Common Stock | Total | |||||||||||||
Number | Par | Paid-in | distributable | |||||||||||
of shares | value | capital | (loss) earnings | Net Assets | ||||||||||
Balances as of | 19,666,769 | $ | 19,667 | $ | 275,114,720 | $ | 642,226 | $ | 275,776,613 | |||||
Net investment income | — | — | — | 42,210,577 | 42,210,577 | |||||||||
Net realized loss on investments | — | — | — | (30,211,467) | (30,211,467) | |||||||||
Net realized loss on foreign currency translation | — | — | — | (112,481) | (112,481) | |||||||||
Net change in unrealized appreciation on investments | — | — | — | 2,792,152 | 2,792,152 | |||||||||
Net change in unrealized depreciation on foreign currency translations | — | — | — | (6,504) | (6,504) | |||||||||
Provision for taxes on unrealized appreciation on investments | — | — | — | (126,957) | (126,957) | |||||||||
Benefit for taxes on realized loss on investments | — | — | — | 2,987,847 | 2,987,847 | |||||||||
Return of capital and other tax related adjustments | — | — | (1,348,766) | 1,348,766 | — | |||||||||
Distributions from net investment income | — | — | — | (35,080,734) | (35,080,734) | |||||||||
Distributions from net realized capital gains | — | — | — | (446,746) | (446,746) | |||||||||
Issuance of common stock, net of offering costs(1) | 4,458,873 | 4,458 | 62,153,030 | — | 62,157,488 | |||||||||
Balances at | 24,125,642 | $ | 24,125 | $ | 335,918,984 | $ | (16,003,321) | $ | 319,939,788 | |||||
Net investment income | — | — | — | 41,929,593 | 41,929,593 | |||||||||
Net realized loss on investments | — | — | — | (15,737,004) | (15,737,004) | |||||||||
Net realized loss on foreign currency translation | — | — | — | (94,730) | (94,730) | |||||||||
Net change in unrealized appreciation on investments | — | — | — | 19,570,409 | 19,570,409 | |||||||||
Net change in unrealized depreciation on foreign currency translations | — | — | — | (14,755) | (14,755) | |||||||||
Provision for taxes on unrealized appreciation on investments | — | — | — | 188,893 | 188,893 | |||||||||
Benefit for taxes on realized loss on investments | — | — | — | 2,221 | 2,221 | |||||||||
Return of capital and other tax related adjustments | — | — | (1,727,556) | 1,727,556 | — | |||||||||
Distributions from net investment income | — | — | — | (40,679,308) | (40,679,308) | |||||||||
Distributions from net realized capital gains | — | — | — | (544,367) | (544,367) | |||||||||
Issuance of common stock, net of offering costs(1) | 3,355,476 | 3,356 | 45,357,844 | — | 45,361,200 | |||||||||
Balances at | 27,481,118 | $ | 27,481 | $ | 379,549,272 | $ | (9,654,813) | $ | 369,921,940 | |||||
Net investment income | — | — | — | 36,883,542 | 36,883,542 | |||||||||
Net realized gain on investments | — | — | — | 1,530,584 | 1,530,584 | |||||||||
Net realized loss on foreign currency translation | — | — | — | (68,844) | (68,844) | |||||||||
Loss on debt extinguishment | — | — | — | (226,095) | (226,095) | |||||||||
Net change in unrealized depreciation on investments | — | — | — | (11,106,931) | (11,106,931) | |||||||||
Net change in unrealized appreciation on foreign currency translations | — | — | — | 33,073 | 33,073 | |||||||||
Return of capital and other tax related adjustments | — | — | (1,391,127) | 1,391,127 | — | |||||||||
Distributions from net investment income | — | — | — | (45,461,427) | (45,461,427) | |||||||||
Issuance of common stock, net of offering costs(1) | 1,466,136 | 1,466 | 19,671,648 | — | 19,673,114 | |||||||||
Balances at | 28,947,254 | $ | 28,947 | $ | 397,829,793 | $ | (26,679,784) | $ | 371,178,956 | |||||
STELLUS CAPITAL INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
For the years ended | |||||||||
Cash Flows from Operating Activities | |||||||||
Net increase in net assets resulting from operations | $ | 27,045,329 | $ | 45,844,627 | $ | 17,533,167 | |||
Adjustments to reconcile net increase in net assets from operations to net cash used in operating activities: | |||||||||
Purchases of investments | (194,071,248) | (221,154,933) | (183,858,762) | ||||||
Proceeds from sales and repayments of investments | 139,652,991 | 151,834,875 | 134,223,224 | ||||||
Net change in unrealized depreciation (appreciation) on investments | 11,106,931 | (19,570,409) | (2,792,152) | ||||||
Net change in unrealized (appreciation) depreciation on foreign currency translations | (33,073) | 14,755 | 6,360 | ||||||
Increase in investments due to payment-in-kind income | (5,756,272) | (3,310,111) | (3,799,843) | ||||||
Amortization of premium and accretion of discount, net | (2,891,683) | (2,715,802) | (2,749,543) | ||||||
Deferred tax (benefit) provision | — | (188,893) | 126,957 | ||||||
Amortization of loan structure fees | 1,212,581 | 1,140,079 | 657,323 | ||||||
Amortization of deferred financing costs | 692,393 | 447,943 | 446,720 | ||||||
Amortization of discount on Notes Payable | 96,093 | — | — | ||||||
Amortization of premium on Notes Payable | (29,855) | — | — | ||||||
Amortization of loan fees on SBA-guaranteed debentures | 732,124 | 978,582 | 1,255,753 | ||||||
Net realized (gain) loss on investments | (1,530,584) | 15,737,004 | 30,211,467 | ||||||
Loss on debt extinguishment | 226,095 | — | — | ||||||
Changes in other assets and liabilities | |||||||||
Increase in interest receivable | (1,428,231) | (65,427) | (897,929) | ||||||
(Increase) decrease in income tax receivable | (83,422) | 286,743 | (1,588,708) | ||||||
Decrease (increase) in other receivables | 2,995 | (45,000) | (8,750) | ||||||
Decrease (increase) in related party receivables | 3,667 | (3,687) | — | ||||||
Decrease (increase) in prepaid expenses | 516,023 | (60,192) | 60,593 | ||||||
Increase (decrease) in management fees payable | 408,596 | 1,115,573 | (4,231,871) | ||||||
(Decrease) increase in income incentive fees payable | (792,131) | 224,380 | 420,772 | ||||||
Decrease in capital gains incentive fees payable | — | — | (569,528) | ||||||
Increase (decrease) in administrative services payable | 145,825 | (8,638) | 45,232 | ||||||
Increase in interest payable | 856,733 | 40,179 | 600,323 | ||||||
Decrease in related party payable | — | — | (1,060,321) | ||||||
Increase in unearned revenue | 33,381 | 150,901 | 77,050 | ||||||
Decrease in income tax payable | — | — | (1,175,373) | ||||||
(Decrease) increase in other accrued expenses and liabilities | (565,022) | 658,971 | (197,248) | ||||||
$ | (24,449,764) | $ | (28,648,480) | $ | (17,265,087) | ||||
Cash Flows from Financing Activities | |||||||||
Proceeds from the issuance of common stock | $ | 20,588,960 | $ | 46,494,756 | $ | 63,348,436 | |||
Sales load for common stock issued | (308,998) | (698,166) | (943,248) | ||||||
Offering costs paid for common stock issued | (606,848) | (428,078) | (253,913) | ||||||
Stockholder distributions paid | (45,265,991) | (37,560,442) | (35,527,480) | ||||||
Proceeds from issuance of Notes Payable | 124,877,750 | — | — | ||||||
Repayment of Notes Payable | (100,060,870) | — | — | ||||||
Financing costs paid on Notes Payable | (2,574,553) | — | — | ||||||
Repayments of SBA-guaranteed debentures | (26,000,000) | — | 11,400,000 | ||||||
Financing costs paid on SBA-guaranteed debentures | — | — | (277,590) | ||||||
Financing costs paid on Credit Facility | (1,622,524) | (691,137) | (2,663,106) | ||||||
Borrowings under Credit Facility | 300,550,000 | 187,900,000 | 108,400,000 | ||||||
Repayments of Credit Facility | (240,135,600) | (172,435,600) | (148,135,600) | ||||||
Net Cash Provided (Used) by Financing Activities | $ | 29,441,326 | $ | 22,581,333 | $ | (4,652,501) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | $ | 4,991,562 | $ | (6,067,147) | $ | (21,917,588) | |||
Cash and Cash Equivalents Balance at Beginning of Period | 20,058,594 | 26,125,741 | 48,043,329 | ||||||
Cash and Cash Equivalents Balance at End of Period | $ | 25,050,156 | $ | 20,058,594 | $ | 26,125,741 | |||
Supplemental and Non-Cash Activities | |||||||||
Cash paid for interest expense | $ | 31,383,195 | $ | 28,899,285 | $ | 29,051,198 | |||
Income and excise tax paid | 1,663,760 | 1,808,838 | 2,508,825 | ||||||
Exchange of investments | 1,663,301 | 8,256,411 | 3,610,846 | ||||||
Reconciliation of Core Net Investment Income(1) (Unaudited) | ||||||||
Three Months Ended | Years Ended | |||||||
Net investment income | ||||||||
Income tax expense | 136,154 | 503,890 | 1,580,338 | 1,808,838 | ||||
Core net investment income | ||||||||
Per share amounts: | ||||||||
Net investment income per share | ||||||||
Core net investment income per share | ||||||||
Reconciliation of Realized Net Investment Income(2) (Unaudited) | ||||||||
Three Months Ended | Years Ended | |||||||
Net investment income | ||||||||
Net realized gain (loss) on investments | 5,490,677 | 5,952,860 | 1,530,584 | (15,737,004) | ||||
Net realized loss on foreign currency translation | (9,764) | (17,740) | (68,844) | (94,730) | ||||
Benefit for taxes on net realized loss on | — | — | — | 2,221 | ||||
Loss on debt extinguishment | (61,333) | — | (226,095) | — | ||||
Total realized net investment income | ||||||||
Per share amounts: | ||||||||
Net investment income per share | ||||||||
Realized net investment income per share | ||||||||
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SOURCE Stellus Capital Investment Corporation