MAIN STREET ANNOUNCES FIRST QUARTER 2025 RESULTS

PR Newswire

HOUSTON, May 8, 2025

First Quarter 2025 Net Investment Income of $1.01 Per Share

First Quarter 2025 Distributable Net Investment Income(1) of $1.07 Per Share

Net Asset Value of $32.03 Per Share

HOUSTON, May 8, 2025 /PRNewswire/ -- Main Street Capital Corporation (NYSE: MAIN) ("Main Street") is pleased to announce its financial results for the first quarter ended March 31, 2025. Unless otherwise noted or the context otherwise indicates, the terms "we," "us," "our" and the "Company" refer to Main Street and its consolidated subsidiaries.

First Quarter 2025 Highlights

   -- Net investment income of $89.8 million (or $1.01 per share) 
 
   -- Distributable net investment income(1) of $94.8 million (or $1.07 per 
      share) 
 
   -- Total investment income of $137.0 million 
 
   -- An industry leading position in cost efficiency, with a ratio of total 
      non-interest operating expenses as a percentage of quarterly average 
      total assets ("Operating Expenses to Assets Ratio") of 1.2% on an 
      annualized basis for the quarter and 1.3% for the trailing twelve-month 
      ("TTM") period ended March 31, 2025 
 
   -- Net increase in net assets resulting from operations of $116.1 million 
      (or $1.31 per share) 
 
   -- Return on equity(2) of 16.5% on an annualized basis for the quarter and 
      19.3% for the TTM period ended March 31, 2025 
 
   -- Net asset value of $32.03 per share as of March 31, 2025, representing an 
      increase of $0.38 per share, or 1.2%, compared to $31.65 per share as of 
      December 31, 2024 
 
   -- Declared regular monthly dividends totaling $0.75 per share for the 
      second quarter of 2025, or $0.25 per share for each of April, May and 
      June 2025, representing a 4.2% increase from the regular monthly 
      dividends paid in the second quarter of 2024 
 
   -- Declared and paid a supplemental dividend of $0.30 per share, resulting 
      in total dividends paid in the first quarter of 2025 of $1.05 per share 
      and representing a 2.9% increase from the total dividends paid in the 
      first quarter of 2024 
 
   -- Completed $86.2 million in total lower middle market ("LMM") portfolio 
      investments, including investments totaling $61.9 million in two new LMM 
      portfolio companies, which after aggregate repayments of LMM portfolio 
      debt investments resulted in a net increase of $57.3 million in the total 
      cost basis of the LMM investment portfolio 
 
   -- Completed $138.2 million in total private loan portfolio investments, 
      which after aggregate repayments of several private loan portfolio debt 
      investments, a partial sale of a private loan portfolio debt investment, 
      return of invested equity capital from several private loan portfolio 
      equity investments and a decrease in cost basis due to realized losses on 
      several private loan portfolio investments resulted in a net increase of 
      $25.6 million in the total cost basis of the private loan investment 
      portfolio 
 
   -- Net decrease of $44.2 million in the total cost basis of the middle 
      market investment portfolio 

In commenting on the Company's operating results for the first quarter of 2025, Dwayne L. Hyzak, Main Street's Chief Executive Officer, stated, "We are pleased with our performance in the first quarter, which resulted in another quarter of strong operating results highlighted by an annualized return on equity of 16.5%, favorable levels of net investment income per share and distributable net investment income per share and another record net asset value per share driven by significant unrealized appreciation on our lower middle market portfolio investments. We are also very pleased to have completed the listing of MSC Income Fund's common stock on the New York Stock Exchange in January 2025, which was the result of our long-term strategy efforts related to the fund and we believe provides the opportunity for significant future benefits to both the fund's shareholders and our Asset Management Business. We believe that these continued strong results demonstrate the sustainable strength of our overall platform, the benefits of our differentiated and diversified investment strategies, the unique contributions of our asset management business and the continued underlying strength and quality of our portfolio companies."

Mr. Hyzak continued, "Our continued positive performance allowed us to increase the total dividends paid to our shareholders in the first quarter by 2.9% over the prior year, continuing our trend of increasing the dividends paid to our shareholders over the past few years, while also continuing to generate distributable net investment income per share which exceeds the total dividends paid to our shareholders. In addition, our strong first quarter performance resulted in the declaration of another $0.30 per share supplemental dividend to be paid in June 2025, representing our fifteenth consecutive quarterly supplemental dividend, to go with the ten increases to our regular monthly dividends declared since the fourth quarter of 2021. Additionally, with the continued support from our long-term lender relationships as evidenced by the recent amendments and extensions of both our Corporate Facility and our SPV Facility, we continue to maintain very strong liquidity and a conservative leverage profile, providing us significant flexibility in the current market. We continue to be encouraged by the favorable performance of the companies in our diversified lower middle market and private loan investment portfolios and remain confident that these strategies, together with the benefits of our asset management business and our cost efficient operating structure, will allow us to continue to deliver superior results for our shareholders."

First Quarter 2025 Operating Results

The following table provides a summary of our operating results for the first quarter of 2025:

 
                                   Three Months Ended March 31, 
                ------------------------------------------------------------------- 
                                                                             Change 
                      2025              2024               Change ($)         (%) 
                ----------------  -----------------  ----------------------  ------ 
                             (in thousands, except per share amounts) 
Interest 
 income            $      98,017   $        100,106     $           (2,089)   (2) % 
Dividend 
 income                   36,026             22,791                  13,235    58 % 
Fee income                 3,003              8,709                 (5,706)  (66) % 
Total 
 investment 
 income         $        137,046   $        131,606     $             5,440     4 % 
 
Net investment 
 income            $      89,810  $          89,807  $                    3     - % 
Net investment 
 income per 
 share             $        1.01      $        1.05         $        (0.04)   (4) % 
 
Distributable 
 net 
 investment 
 income (1)        $      94,832  $          94,372    $                460     - % 
Distributable 
 net 
 investment 
 income per 
 share (1)         $        1.07      $        1.11         $        (0.04)   (4) % 
 
Net increase 
 in net assets 
 resulting 
 from 
 operations     $        116,082   $        107,147     $             8,935     8 % 
Net increase 
 in net assets 
 resulting 
 from 
 operations 
 per share         $        1.31      $        1.26    $               0.05     4 % 
 
 

The $5.4 million increase in total investment income in the first quarter of 2025 from the comparable period of the prior year was principally attributable to a $13.2 million increase in dividend income, primarily due to a $13.1 million increase in dividend income from our LMM portfolio companies and a $1.2 million increase in dividend income from our private loan portfolio companies, partially offset by a $0.6 million decrease in dividend income from our other portfolio investments and a $0.5 million decrease in dividend income from our External Investment Manager (as defined in the External Investment Manager section below), partially offset by (i) a $5.7 million decrease in fee income, primarily related to a $3.6 million decrease from accelerated amortization and exit, prepayment and amendment activity and a $2.1 million decrease from decreased investment activity and (ii) a $2.1 million decrease in interest income, primarily due to an increase in investments on non-accrual status and a decrease in interest rates on floating rate investment portfolio debt investments primarily resulting from decreases in benchmark index rates, partially offset by higher average levels of income producing investment portfolio debt investments. The $5.4 million increase in total investment income in the first quarter of 2025 is after the impact of a decrease of $5.2 million in certain income considered less consistent or non-recurring, primarily related to (i) a $3.5 million decrease in such fee income, (ii) a $1.2 million decrease in such dividend income and (iii) a $0.5 million decrease in such interest income from accelerated prepayment, repricing and other activity related to certain investment portfolio debt investments, in each case when compared to the same period in 2024.

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