Stellus Capital Investment Corporation Reports Results for its First Fiscal Quarter Ended March 31, 2025
PR Newswire
HOUSTON, May 12, 2025
HOUSTON, May 12, 2025 /PRNewswire/ -- Stellus Capital Investment Corporation $(SCM)$ ("Stellus", "we", or the "Company") today announced financial results for its fiscal quarter ended March 31, 2025.
Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended March 31, 2025, in which we earned U.S. GAAP net investment income of $0.35 per share and core net investment income of $0.37 per share. During the quarter, we funded $55 million of investments and received $15 million of repayments, bringing the total portfolio to $991 million at fair value. Notably, we raised over $9 million of equity during the quarter under the at-the-market equity program. I'm also pleased to report that our investors have received a total of $295 million in distributions, equivalent to $16.95 per share, since we began operations."
FINANCIAL HIGHLIGHTS
($ in millions, except data relating to per share amounts and shares outstanding)
Three Months Ended
-----------------------------------------
March 31, 2025 March 31, 2024
Amount Per Share Amount Per Share
------- ---------- -------- ----------
Net investment income $9.79 $0.35 $10.24 $0.42
Core net investment income(1) 10.29 0.37 10.61 0.44
Net realized loss on investments (5.97) (0.21) (20.38) (0.85)
Net realized loss on foreign
currency translation (0.03) -- (0.03) --
Total realized income(2) $3.79 $0.14 ($10.17) ($0.43)
Distributions (11.09) (0.40) (9.65) (0.40)
Net unrealized change in
appreciation on investments 1.19 0.04 23.52 0.98
Net unrealized change in
appreciation on foreign currency
translation 0.01 -- -- --
Provision for taxes on unrealized
appreciation on investments in
taxable subsidiaries -- -- (0.20) (0.01)
Net increase in net assets
resulting from operations $4.99 $0.18 $13.15 $0.54
Weighted average shares
outstanding 27,602,612 24,125,642
(1) Core net investment income, as presented, excludes the impact of capital
gains incentive fees (reversal) and income taxes, the majority of which
are excise taxes. The Company believes presenting core net investment
income and the related per share amount is a useful supplemental
disclosure for analyzing its financial performance. However, core net
investment income is not a U.S. generally accepted accounting principles
("U.S. GAAP") measure and should not be considered as a replacement for
net investment income and other earnings measures presented in accordance
with U.S. GAAP. A reconciliation of net investment income in accordance
with U.S. GAAP to core net investment income is presented in the table
below the financial statements.
(2) Total realized income is the sum of net investment income, net realized
losses on investments, net realized losses on foreign currency
translations, and losses on debt extinguishment, all U.S. GAAP measures.
PORTFOLIO ACTIVITY
($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)
As of As of
March 31, 2025 December 31, 2024
-------------- -----------------
Investments at fair value $991.1 $953.5
Total assets $1,011.7 $980.9
Net assets $372.8 $369.9
Shares outstanding 28,137,203 27,481,118
Net asset value per share $13.25 $13.46
Three Months Ended
---------------------------------
March 31, 2025 March 31, 2024
-------------- -----------------
New investments $55.4 $28.5
Repayments of investments (15.0) (31.2)
-------------- -----------------
Net activity $40.4 ($2.7)
As of As of
March 31, 2025 December 31, 2024
-------------- -----------------
Number of portfolio company investments 110 105
Number of debt investments 97 92
Weighted average yield of debt and
other income producing investments
(3)
Cash 9.4 % 9.5 %
Payment-in-kind ("PIK") 0.5 % 0.4 %
Fee amortization 0.4 % 0.4 %
-------------- -----------------
Total 10.3 % 10.3 %
Weighted average yield on total
investments(4)
Cash 8.7 % 8.9 %
PIK 0.5 % 0.4 %
Fee amortization 0.4 % 0.4 %
-------------- -----------------
Total 9.6 % 9.7 %
(3) The dollar-weighted average annualized effective yield is computed using
the effective interest rate for the Company's 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 March 31, 2025 and 2024 totaled $25.0 million and $26.0 million, respectively, most of which was interest income from portfolio investments.
Gross operating expenses for the three months ended March 31, 2025 and 2024 totaled $16.4 million and $16.0 million, respectively. For the same respective periods, base management fees totaled $4.1 million and $3.9 million, income incentive fees totaled $2.1 million and $2.5 million, fees and expenses related to our borrowings totaled $8.3 million and $7.8 million (including interest and amortization of deferred financing costs), administrative expenses totaled $0.4 million and $0.5 million, income tax totaled $0.5 million and $0.4 million, and other expenses totaled $1.0 million and $0.9 million. The Company waived $1.2 million and $0.2 million of income incentive fees due to the total return limitation contained in the Investment Advisory Agreement between the Company and the Advisor (as defined below) for the three months ended March 31, 2025 and 2024, respectively.
Net investment income was $9.8 million and $10.2 million, or $0.35 and $0.42 per common share based on weighted average common shares outstanding of 27,602,612 and 24,125,642 for the three months ended March 31, 2025 and 2024, respectively. Core net investment income, which is not a U.S. GAAP measure and excludes the capital gains incentive fee (reversal) and income tax expense accruals, for the three months ended March 31, 2025 and 2024 was $10.3 million and $10.6 million, or $0.37 and $0.44 per share, respectively.
For the three months ended March 31, 2025 and 2024, the Company's investment portfolio had a net change in unrealized appreciation of $1.2 million and $23.5 million, respectively, and the Company had net realized losses of ($6.0) million and ($20.4) million, respectively.
Net increase in net assets resulting from operations totaled $5.0 million and $13.1 million, or $0.18 and $0.54 per common share, based on weighted average common shares outstanding of 27,602,612 and 24,125,642 for the three months ended March 31, 2025 and 2024, respectively.
Liquidity and Capital Resources
As of March 31, 2025, the Company's amended 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 $315.0 million on a committed basis. As of March 31, 2025 and December 31, 2024, the Credit Facility had an accordion feature which allowed for potential future expansion of the facility size up to $350.0 million.
As of March 31, 2025 and December 31, 2024, the Company had $221.8 million and $175.4 million in outstanding borrowings under the Credit Facility, respectively.
The Company issued 656,085 shares during the three months ended March 31, 2025 under the At-the-Market Program ("ATM Program") for gross proceeds of $9.3 million. The average per share offering price of shares issued under the ATM Program during the three months ended March 31, 2025 was $14.11. Stellus Capital Management, LLC, the Company's investment adviser (the "Advisor"), agreed to reimburse the Company for underwriting fees to the extent the per share price of the shares to the public, less underwriting fees, was less then net asset value per share. For the three months ended March 31, 2025, the Advisor was not required to reimburse underwriting fees as all shares were issued at a premium to net asset value.
Distributions
For both the three months ended March 31, 2025 and 2024, the Company declared aggregate distributions of $0.40 per share for the period ($11.1 million and $9.6 million in the aggregate, respectively). Tax characteristics of all distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year. None of these dividends are expected to include a return of capital.
Recent Portfolio Activity
The Company invested in the following portfolio companies during the three months ended March 31, 2025:
Activity Company Investment Instrument
Type Date Company Name Description Amount Type
----------- --------- -------------- ------------- ----------- -----------
Provider of
residentia
l
Add-On January 3, Service Minds electrical Revolver
Investment 2025 Company, LLC* services $ 10,000 Commitment
New January Pacific Shoring Manufactur $ 8,500,000 Senior
Investment 10, 2025 Products, LLC er of Secured --
trench First Lien
shoring
and safety
equipment
sold to
equipment
rental
companies
$ 100,000 Revolver
Commitment
$ 498,491 Equity
New January Environmental Residential $ 7,330,762 Senior
Investment 15, 2025 Remedies, LLC asbestos Secured --
abatement First Lien
provider
$ 2,681,986 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
$ 163,109 Equity
New January Plus Delta Provider of $ 7,400,000 Senior
Investment 16, 2025 Partners, fundraisin Secured --
Inc. g training First Lien
and tools
for higher
education
institutio
ns and
other
nonprofits
$ 3,753,955 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
$ 325,764 Equity
New January Strategus, LLC Provider of $ 7,801,439 Senior
Investment 27, 2025 connected Secured --
television First Lien
advertisin
g
services
$ 2,524,737 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
$ 170,362 Equity
Add-On January Monitorus Provider of $ 9,710 Unsecured
Investment 31, 2025 Holding, LLC* media Convertible
monitoring Bond
and
evaluation
services
Add-On February Service Minds Provider of $ 31,000 Revolver
Investment 7, 2025 Company, LLC* residentia Commitment
l
electrical
services
Add-On February Florachem Distiller $ 877,716 Senior
Investment 10, 2025 Corporation* and Secured --
supplier First Lien
of natural
citrus,
pine, and
specialty
inputs
New February Identity Theft Cyber $ 8,722,887 Senior
Investment 28, 2025 Guard breach Secured --
Solutions, response First Lien
Inc. and
monitoring
services
$ 100,000 Revolver
Commitment
$ 352,915 Equity
New February MoboTrex, LLC Distributor $ 5,137,070 Senior
Investment 28, 2025 and Secured --
manufactur First Lien
er of
intelligen
t traffic
solution
equipment
$ 109,312 Delayed
Draw Term
Loan
Commitment
$ 100,000 Revolver
Commitment
Add-On March 7, Elliott Provider of $ 915,125 Revolver
Investment 2025 Aviation, maintenanc Commitment
LLC* e, repair,
and
overhaul
and
fixed-base
operator
services
to the
business
aviation
sector
New March 21, Simpler Online $ 281,936 Equity
Investment 2025 Trading, LLC education
platform
for retail
investors
Add-On March 28, Advanced Manufactur $ 2,607,637 Senior
Investment 2025 Barrier er of Secured --
Extrusions, flexible First Lien
LLC* packaging
$ 2,249,694 Revolver
Commitment
______________________________________
*Existing portfolio company
The Company realized investments in the following portfolio companies during the three months ended March 31, 2025:
Company Proceeds Realized Instrument
Activity Type Date Company Name Description Received Loss Type
------------- ---------- ------------- ------------ ---------- ----------- -----------
Online
education
Trade platform
Education for Senior
Restructured March 21, Acquisition, retail Secured --
Investment 2025 L.L.C. investors $ -- $(5,605,668) First Lien
$ -- $ (46,000) Revolver
$ -- $ (662,660) Equity
Provider
of a wide
variety
of
products
across
the
insole,
custom
fit
orthotic
and foot Senior
DRS Holdings care Secured --
Full Repayment 3/28/2025 III, Inc. category $8,542,830 $ -- First Lien
Events Subsequent to March 31, 2025
The Company's management has evaluated subsequent events through May 12, 2025. There have been no subsequent events that require recognition or disclosure except for the following described below.
Investment Portfolio
The Company invested in the following portfolio companies subsequent to March 31, 2025:
Activity Company Investment Instrument
Type Date Company Name Description Amount Type
----------- ------ ------------ ------------- ----------- -----------
Provider of
HVAC,
plumbing,
and other
TriplePoint mechanical
April Acquisition and Senior
Add-On 8, Holdings industrial Secured --
Investment 2025 LLC* services $ 1,773,809 First Lien
Add-On May 5, FairWave Specialty $ 19,336 Equity
Investment 2025 Holdings, coffee
LLC* platform
Add-On May 8, Unicat Manufactur $ 13,961 Equity
Investment 2025 Catalyst er and
Holdings, distributo
LLC* r of
catalysts
and other
industrial
products
______________________________________
*Existing portfolio company
The Company realized investments in the following portfolio companies subsequent to March 31, 2025:
Activity Company Proceeds Realized Instrument
Type Date Company Name Description Received Gain Type
---------- ------ ------------ ------------ ---------- --------- -----------
Distiller
and
supplier
of
natural
citrus,
April pine, and Senior
Full 8, Florachem specialty Secured --
Repayment 2025 Corporation inputs $9,725,000 $ -- First Lien
Delayed
Draw Term
Loan
$ 53,078 $ -- Commitment
Revolver
$ 100,000 $ -- Commitment
$ 514,107 $ 151,674 Equity
Credit Facility
The outstanding balance under the Credit Facility as of May 12, 2025 was $147.8 million.
7.250% Notes due 2030
On April 1, 2025, the Company issued $75.0 million in aggregate principal amount of 7.250% Notes due 2030 (the "7.250% Notes"). The 7.250% Notes bear interest at a rate of 7.250% per year payable semi-annually in arrears on April 1 and October 1 of each year, commencing October 1, 2025. The 7.250% Notes will mature on April 1, 2030, unless previously redeemed or repurchased in accordance with their terms. The 7.250% Notes are the direct unsecured obligations of the Company and rank pari passu with the Company's existing and future unsecured, unsubordinated indebtedness, including the Notes Payable; senior to any series of preferred stock that the Company may issue in the future; senior to any of the Company's future indebtedness that expressly provides it is subordinated to the 7.250% Notes; effectively subordinated to all of the Company's existing and future secured indebtedness (including indebtedness that is initially unsecured to which the Company subsequently grants security), to the extent of the value of the assets securing such indebtedness, including, without limitation, borrowings under the Credit Facility; and structurally subordinated to all existing and future indebtedness and other obligations of any of the Company's existing or future subsidiaries.
In connection with the 7.250% Notes, the Company and U.S. Bank Trust Company, National Association (as successor-in-interest to U.S. Bank National Association), as trustee (the "Trustee"), entered into a Fourth Supplemental Indenture (the "Fourth Supplemental Indenture") to the Base Indenture, dated May 5, 2014, between the Company and the Trustee (together with the Fourth Supplemental Indenture, the "Indenture").
The Indenture contains certain covenants, including covenants requiring the Company to comply with Section 18(a)(1)$(A)$ as modified by Section 61(a)(2) of the Investment Company Act of 1940, as amended (the "1940 Act"), or any successor provisions, whether or not the Company continues to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to the Company by the U.S. Securities and Exchange Committee and certain other exceptions, and to provide financial information to the holders of the 7.250% Notes and the Trustee if the Company should no longer be subject to the reporting requirements under the Securities Exchange Act of 1934, as amended. These covenants are subject to important limitations and exceptions that are set forth in the Indenture.
Distributions Declared
On April 4, 2025, the Board of Directors of the Company declared a regular monthly dividend for each of April 2025, May 2025, and June 2025 as follows:
Ex-Dividend Record Payment Amount per
Declared Date Date Date Share
--------- ------------ ---------- ---------- ------------
5/15/20
4/4/2025 4/30/2025 4/30/2025 25 $ 0.1333
6/13/20
4/4/2025 5/30/2025 5/30/2025 25 $ 0.1333
7/15/20
4/4/2025 6/30/2025 6/30/2025 25 $ 0.1333
Conference Call Information
Stellus Capital Investment Corporation will host a conference call to discuss these results on Tuesday, May 13, 2025 at 10:00 AM, Central 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 telephone, please dial (888) 506-0062. Use passcode 260621. Starting approximately two hours after the conclusion of the call, a replay will be available through Tuesday, May 27, 2025 by dialing (877) 481-4010 and entering passcode 52407. The replay will also be available on the Company's website.
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, as amended. 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 middle-market companies (typically those with $5.0 million to $50.0 million of EBITDA (earnings before interest, taxes, depreciation and amortization)) through first lien (including unitranche) loans, second lien loans and unsecured debt financing, with corresponding equity co-investments. The Company's investment activities are managed by its investment adviser, Stellus Capital Management. To learn more about Stellus Capital Investment Corporation, visit www.stelluscapital.com under the "Public (SCIC)" tab.
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
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
thuskinson@stelluscapital.com
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
March 31, 2025
(unaudited) December 31, 2024
-------------- -------------------
ASSETS
Controlled investments at fair
value (amortized cost of
$17,934,808 for both periods) $ 7,707,712 $ 7,652,436
Non-controlled, non-affiliated
investments, at fair value
(amortized cost of $979,896,856
and $943,853,898,
respectively) 983,396,065 945,845,252
Cash and cash equivalents 10,888,821 20,058,594
Receivable for sales and
repayments of investments 446,586 335,689
Interest receivable 6,229,272 4,947,765
Income tax receivable 2,383,725 1,301,965
Other receivables 108,750 87,995
Related party receivable -- 3,687
Prepaid expenses 576,553 666,866
------------- ---------------
Total Assets $1,011,737,484 $ 980,900,249
------------- ---------------
LIABILITIES
Notes Payable $ 99,554,505 $ 99,444,355
Credit Facility payable 219,057,554 172,314,315
SBA-guaranteed debentures 305,190,923 321,251,939
Dividends payable 3,750,689 3,663,233
Management fees payable 4,054,726 4,034,109
Income incentive fees payable 1,651,506 3,109,560
Interest payable 1,492,428 5,281,343
Related party payable 1,290,893 --
Unearned revenue 620,803 548,626
Administrative services payable 380,523 393,513
Other accrued expenses and
liabilities 1,926,752 937,316
------------- ---------------
Total Liabilities $ 638,971,302 $ 610,978,309
------------- ---------------
Commitments and contingencies
(Note 7)
------------- ---------------
Net Assets $ 372,766,182 $ 369,921,940
============= ===============
NET ASSETS
Common stock, par value $0.001
per share (100,000,000 shares
authorized; 28,137,203 and
27,481,118 issued and
outstanding, respectively) $ 28,137 $ 27,481
Paid-in capital 388,486,702 379,549,272
Total distributable loss (15,748,657) (9,654,813)
------------- ---------------
Net Assets $ 372,766,182 $ 369,921,940
------------- ---------------
Total Liabilities and Net Assets $1,011,737,484 $ 980,900,249
------------- ---------------
Net Asset Value Per Share $ 13.25 $ 13.46
============= ===============
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
For the three months ended
----------------------------------
March 31, 2025 March 31, 2024
---------------- ----------------
INVESTMENT INCOME
From controlled investments:
Interest income $ -- $ 81,636
From non-controlled, non-affiliated
investments
Interest income 24,127,116 24,956,851
Other income 824,542 958,262
------------ ------------
Total Investment Income $ 24,951,658 $ 25,996,749
------------ ------------
OPERATING EXPENSES
Management fees $ 4,054,726 $ 3,852,233
Valuation fees 157,889 156,507
Administrative services expenses 449,298 490,901
Income incentive fees 2,136,491 2,509,110
Professional fees 418,031 339,627
Directors' fees 111,250 108,250
Insurance expense 97,090 124,989
Interest expense and other fees 8,263,019 7,767,573
Income tax expense 499,547 370,719
Other general and administrative
expenses 218,351 245,275
------------ ------------
Total Operating Expenses $ 16,405,692 $ 15,965,184
Income incentive fee waiver (1,242,843) (204,351)
------------ ------------
Total Operating Expenses, net of
fee waivers $ 15,162,849 $ 15,760,833
------------ ------------
Net Investment Income $ 9,788,809 $ 10,235,916
------------ ------------
Net realized loss on
non-controlled, non-affiliated
investment $ (5,967,221) $ (20,384,731)
Net realized loss on foreign
currency translations (29,655) (25,106)
Net change in unrealized
appreciation on controlled
investments 55,276 536,570
Net change in unrealized
appreciation on non-controlled,
non-affiliated investments 1,138,017 22,982,020
Net change in unrealized
appreciation (depreciation) on
foreign currency translations 8,319 (3,602)
Provision for taxes on net
unrealized appreciation on
investments -- (192,607)
------------ ------------
Net Increase in Net Assets
Resulting from Operations $ 4,993,545 $ 13,148,460
============ ============
Net Investment Income Per
Share--basic and diluted $ 0.35 $ 0.42
============ ============
Net Increase in Net Assets
Resulting from Operations Per
Share -- basic and diluted $ 0.18 $ 0.54
============ ============
Weighted Average Shares of Common
Stock Outstanding--basic and
diluted 27,602,612 24,125,642
============ ============
Distributions Per Share--basic and
diluted $ 0.40 $ 0.40
============ ============
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
Common Stock Total
-------------------
Number Par Paid-in distributable
of shares value capital (loss) Net Assets
---------- ------- ------------ ------------- -------------
Balances at
December 31, 2023 24,125,642 $24,125 $335,918,984 $(16,003,321) $ 319,939,788
Net investment
income -- -- -- 10,235,916 10,235,916
Net realized loss
on investments -- -- -- (20,384,731) (20,384,731)
Net realized loss
on foreign
currency
translations -- -- -- (25,106) (25,106)
Net change in
unrealized
appreciation on
investments -- -- -- 23,518,590 23,518,590
Net change in
unrealized
depreciation on
foreign currency
translations -- -- -- (3,602) (3,602)
Provision for taxes
on unrealized
appreciation on
investments -- -- -- (192,607) (192,607)
Distributions from
net investment
income -- -- -- (9,647,844) (9,647,844)
---------- ------ ----------- ------------ ------------
Balances at March
31, 2024 24,125,642 $24,125 $335,918,984 $(12,502,705) $ 323,440,404
========== ====== =========== ============ ============
Balances at
December 31, 2024 27,481,118 $27,481 $379,549,272 $ (9,654,813) $ 369,921,940
Net investment
income -- -- -- 9,788,809 9,788,809
Net realized loss
on investments -- -- -- (5,967,221) (5,967,221)
Net realized loss
on foreign
currency
translations -- -- -- (29,655) (29,655)
Net change in
unrealized
appreciation on
investments -- -- -- 1,193,293 1,193,293
Net change in
unrealized
depreciation on
foreign currency
translations -- -- -- 8,319 8,319
Distributions from
net investment
income -- -- -- (11,087,389) (11,087,389)
Issuance of common
stock, net of
offering costs(1) 656,085 656 8,937,430 -- 8,938,086
---------- ------ ----------- ------------ ------------
Balances at March
31, 2025 28,137,203 $28,137 $388,486,702 $(15,748,657) $ 372,766,182
========== ====== =========== ============ ============
STELLUS CAPITAL INVESTMENT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
For three months ended
----------------------------------
March 31, 2025 March 31, 2024
---------------- ----------------
Cash flows from operating activities
Net increase in net assets resulting
from operations $ 4,993,545 $ 13,148,460
Adjustments to reconcile net
increase in net assets from
operations to net cash used in
operating activities:
Purchases of investments (55,415,263) (28,516,430)
Proceeds from sales and repayments of
investments 14,986,423 31,169,595
Net change in unrealized appreciation
on investments (1,193,293) (23,518,590)
Net change in unrealized
(appreciation) depreciation on
foreign currency translations (8,319) 3,602
Increase in investments due to PIK (976,479) (750,054)
Amortization of premium and accretion
of discount, net (715,755) (702,543)
Deferred tax provision -- 192,607
Amortization of loan structure fees 315,618 264,707
Amortization of deferred financing
costs 110,150 111,374
Amortization of loan fees on
SBA-guaranteed debentures 188,984 314,055
Net realized loss on investments 5,967,221 20,384,731
Changes in other assets and
liabilities
Increase in interest receivable (1,281,507) (1,602,062)
Increase in income tax receivable (1,081,760) (1,085,022)
Increase in other receivables (20,755) --
Decrease in related party
receivables 3,687 --
Decrease in prepaid expenses 90,313 21,256
Increase (decrease) in management
fees payable 20,617 (1,066,303)
Decrease in income incentive fees
payable (1,458,054) (140,107)
(Decrease) increase in administrative
services payable (12,990) 22,897
Decrease in interest payable (3,788,915) (3,748,120)
Increase in related party payable 1,290,893 --
Increase in unearned revenue 72,177 14,589
Increase (decrease) in other accrued
expenses and liabilities 989,436 (61,688)
------------ ------------
Net Cash (Used) Provided in Operating
Activities $ (36,924,026) $ 4,456,954
------------ ------------
Cash flows from Financing Activities
Proceeds from the issuance of common
stock $ 9,256,982 $ --
Sales load for common stock issued (138,908) --
Offering costs paid for common stock
issued (179,988) (5,209)
Stockholder distributions paid (10,999,933) (6,431,896)
Repayments of SBA-guaranteed
debentures (16,250,000) --
Financing costs paid on Credit
Facility -- (49,969)
Borrowings under Credit Facility 67,700,000 50,000,000
Repayments of Credit Facility (21,633,900) (25,333,900)
------------ ------------
Net Cash Provided by Financing
Activities $ 27,754,253 $ 18,179,026
------------ ------------
Net (Decrease) Increase in Cash and
Cash Equivalents $ (9,169,773) $ 22,635,980
------------ ------------
Cash and Cash Equivalents Balance at
Beginning of Period $ 20,058,594 $ 26,125,741
------------ ------------
Cash and Cash Equivalents Balance at
End of Period $ 10,888,821 $ 48,761,721
============ ============
Supplemental and Non-Cash Activities
Cash paid for interest expense $ 11,437,182 $ 10,825,557
Income and excise tax paid 1,581,307 1,455,741
Increase in distributions payable 87,456 3,215,948
Increase in deferred offering costs -- 5,209
Exchange of investments 1,663,301 8,256,411
Reconciliation of Core Net Investment Income (1)
(Unaudited)
Three Months Ended
------------------------------
March 31, 2025 March 31, 2024
-------------- --------------
Net investment income $9,788,809 $10,235,916
Income tax expense 499,547 370,719
-------------- --------------
Core net investment income $10,288,356 $10,606,635
============== ==============
Per share amounts:
Net investment income per share $0.35 $0.42
Core net investment income per share $0.37 $0.44
Reconciliation of Realized Net Investment Income (2)
(Unaudited)
Three Months Ended
------------------------------
March 31, 2025 March 31, 2024
-------------- --------------
Net investment income $9,788,809 $10,235,916
Net realized loss on investments (5,967,221) (20,384,731)
Net realized loss on foreign currency
translation (29,655) (25,106)
-------------- --------------
Total Realized Net Investment Income
(Loss) $3,791,933 ($10,173,921)
============== ==============
Per share amounts:
Net investment income per share $0.35 $0.42
Realized net investment income (loss) per
share $0.14 ($0.42)
View original content to download multimedia:https://www.prnewswire.com/news-releases/stellus-capital-investment-corporation-reports-results-for-its-first-fiscal-quarter-ended-march-31-2025-302452898.html
SOURCE Stellus Capital Investment Corporation
(END) Dow Jones Newswires
May 12, 2025 16:10 ET (20:10 GMT)
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