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Horizon Technology Finance Announces Second Quarter 2021 Financial Results
Second Quarter 2021 Highlights
- Net investment income ("NII") of
$6.1 million , or$0.31 per share, compared to$6.7 million , or$0.40 per share for the prior-year period - Total investment portfolio of
$404.1 million as ofJune 30, 2021 - Net asset value of
$224.3 million , or$11.20 per share, as ofJune 30, 2021 - Annualized portfolio yield on debt investments of 14.7% for the quarter
- Horizon funded nine loans totaling
$67.3 million for a total of$99.3 million of loans funded through Horizon's advisor's, Horizon Technology Finance Management's ("HTFM"), platform - Raised total net proceeds of approximately
$5.8 million with "at-the-market" ("ATM") offering program - Experienced liquidity events from five portfolio companies
- Cash of
$39.8 million and credit facility capacity of$159.3 million as ofJune 30, 2021 - Held portfolio of warrant and equity positions in 71 companies as of
June 30, 2021 - Undistributed spillover income of
$0.34 per share as ofJune 30, 2021 - Redeemed
$37.4 million of 6.250% 2022 Notes - Subsequent to quarter end, declared distributions of
$0.10 per share payable in October, November andDecember 2021
"We are pleased with our second quarter performance, as we passed the
"We also continued to maintain a solid portfolio credit profile, ending the quarter with no 1-rated loans and no loans on non-accrual," continued
Second Quarter 2021 Operating Results
Total investment income for the quarter ended
The Company's dollar-weighted annualized yield on average debt investments for the quarter ended
Total expenses for the quarter ended
Net investment income for the quarter ended
For the quarter ended
For the quarter ended
Portfolio Summary and Investment Activity
As of
($ in thousands) |
For the Three Months Ended |
For the Six Months Ended |
||
2021 |
2020 |
2021 |
2020 |
|
Beginning portfolio |
$ 380,023 |
$ 334,506 |
$ 352,545 |
$ 319,551 |
New debt investments |
67,285 |
54,908 |
118,660 |
105,554 |
Principal payments received on investments |
(3,415) |
(4,938) |
(8,082) |
(13,925) |
Early pay-offs |
(38,125) |
(30,296) |
(57,590) |
(47,243) |
Accretion of debt investment fees |
1,087 |
1,222 |
2,170 |
2,287 |
New debt investment fees |
(889) |
(633) |
(1,370) |
(1,213) |
Warrants received in settlement of fee income |
— |
978 |
— |
978 |
Proceeds from sale of investments |
(2,859) |
(576) |
(3,732) |
(6,256) |
Dividend income from controlled affiliate investment |
— |
(312) |
— |
118 |
Net realized gain (loss) on investments |
1,492 |
(725) |
(3,226) |
2,766 |
Net unrealized (depreciation) appreciation on investments |
(478) |
1,944 |
4,746 |
(6,539) |
Other |
— |
(198) |
— |
(198) |
Ending portfolio |
$ 404,121 |
$ 355,880 |
$ 404,121 |
$ 355,880 |
Portfolio Asset Quality
The following table shows the classification of Horizon's loan portfolio at fair value by internal credit rating as of
($ in thousands) |
|
|
|
||||||||
Number of Investments |
Debt Investments at Fair Value |
Percentage of Debt Investments |
Number of Investments |
Debt Investments at Fair Value |
Percentage of Debt Investments |
Number of Investments |
Debt Investments at Fair Value |
Percentage of Debt Investments |
|||
Credit Rating |
|||||||||||
4 |
3 |
$ 44,286 |
11.5% |
6 |
$ 71,946 |
19.9% |
6 |
$ 77,950 |
23.4% |
||
3 |
32 |
318,448 |
82.5% |
29 |
283,989 |
78.5% |
24 |
240,933 |
72.2% |
||
2 |
4 |
23,080 |
6.0% |
2 |
5,819 |
1.6% |
3 |
12,875 |
3.9% |
||
1 |
-- |
-- |
-- |
-- |
-- |
-- |
1 |
1,737 |
0.5% |
||
Total |
39 |
$ 385,814 |
100.0% |
37 |
$ 361,754 |
100.0% |
34 |
$ 333,495 |
100.0% |
As of
As of
Liquidity and Capital Resources
As of
As of
Additionally, as of
During the three months ended
As of
Liquidity Events
During the quarter ended
In April,
In April, xAD, Inc. prepaid its outstanding principal balance of
In June, Horizon received proceeds of
In June,
In June, Celsion Corporation prepaid its outstanding principal balance of
Net Asset Value
At
For the quarter ended
Stock Repurchase Program
On
Recent Developments
On
On
On
On
Monthly Distributions Declared in Third Quarter 2021
On
Monthly Distributions
Ex-Dividend Date |
Record Date |
Payment Date |
Amount per Share |
|
|
|
|
|
|
|
|
|
|
|
|
Total: |
|
After paying distributions of
When declaring distributions, the Horizon board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.
Conference Call
The Company will host a conference call on
A webcast replay will be available on the Company's website for 30 days following the call.
About
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Horizon's filings with the
Contacts:
Investor Relations:
ICR
ir@horizontechfinance.com
(860) 284-6450
Media Relations:
ICR
HorizonPR@icrinc.com
(646) 677-1819
|
|||||
|
|
||||
2021 |
2020 |
||||
(unaudited) |
|||||
Assets |
|||||
Non-affiliate investments at fair value (cost of |
$ 399,935 |
$ 343,498 |
|||
Non-controlled affiliate investments at fair value (cost of |
2,686 |
7,547 |
|||
Controlled affiliate investments at fair value (cost of |
1,500 |
1,500 |
|||
Total investments at fair value (cost of |
404,121 |
352,545 |
|||
Cash |
26,737 |
19,502 |
|||
Investments in money market funds |
13,096 |
27,199 |
|||
Restricted investments in money market funds |
1,502 |
1,057 |
|||
Interest receivable |
6,099 |
4,946 |
|||
Other assets |
2,563 |
1,908 |
|||
Total assets |
$ 454,118 |
$ 407,157 |
|||
Liabilities |
|||||
Borrowings |
$ 220,202 |
$ 185,819 |
|||
Distributions payable |
6,007 |
5,786 |
|||
Base management fee payable |
634 |
563 |
|||
Incentive fee payable |
1,528 |
975 |
|||
Other accrued expenses |
1,483 |
1,417 |
|||
Total liabilities |
229,854 |
194,560 |
|||
Commitments and contingencies |
|||||
Net assets |
|||||
Preferred stock, par value |
— |
— |
|||
Common stock, par value |
20 |
19 |
|||
Paid-in capital in excess of par |
282,136 |
271,287 |
|||
Distributable earnings |
(57,892) |
(58,709) |
|||
Total net assets |
224,264 |
212,597 |
|||
Total liabilities and net assets |
$ 454,118 |
$ 407,157 |
|||
Net asset value per common share |
$ 11.20 |
$ 11.02 |
|||
|
||||||||
For the Three Months Ended |
For the Six Months Ended |
|||||||
|
|
|||||||
2021 |
2020 |
2021 |
2020 |
|||||
Investment income |
||||||||
Interest income on investments |
||||||||
Interest income on non-affiliate investments |
$ 12,420 |
$ 11,918 |
$ 24,909 |
$ 21,312 |
||||
Interest income on affiliate investments |
62 |
176 |
235 |
357 |
||||
Total interest income on investments |
12,482 |
12,094 |
25,144 |
21,669 |
||||
Fee income |
||||||||
Prepayment fee income on non-affiliate investments |
913 |
711 |
1,256 |
756 |
||||
Amendment fee income on non-affiliate investments |
43 |
1,028 |
236 |
1,064 |
||||
Fee income on non-affiliate investments |
51 |
— |
56 |
24 |
||||
Fee income on affiliate investments |
— |
3 |
12 |
7 |
||||
Total fee income |
1,007 |
1,742 |
1,560 |
1,851 |
||||
Dividend (expense) income |
||||||||
Dividend (expense) income on controlled affiliate investments |
— |
(312) |
— |
118 |
||||
Total dividend (expense) income |
— |
(312) |
— |
118 |
||||
Total investment income |
13,489 |
13,524 |
26,704 |
23,638 |
||||
Expenses |
||||||||
Interest expense |
2,954 |
2,561 |
5,669 |
4,723 |
||||
Base management fee |
1,829 |
1,668 |
3,598 |
3,249 |
||||
Performance based incentive fee |
1,528 |
1,676 |
3,029 |
2,747 |
||||
Administrative fee |
289 |
254 |
578 |
507 |
||||
Professional fees |
280 |
346 |
789 |
848 |
||||
General and administrative |
442 |
313 |
808 |
575 |
||||
Total expenses |
7,322 |
6,818 |
14,471 |
12,649 |
||||
Net investment income before excise tax |
6,167 |
6,706 |
12,233 |
10,989 |
||||
Provision for excise tax |
56 |
— |
118 |
— |
||||
Net investment income |
6,111 |
6,706 |
12,115 |
10,989 |
||||
Net realized and unrealized (loss) gain |
||||||||
Net realized gain (loss) on non-affiliate investments |
1,492 |
(701) |
(3,716) |
2,778 |
||||
Net realized loss on controlled affiliate investments |
— |
(24) |
— |
(12) |
||||
Net realized gain (loss) on investments |
1,492 |
(725) |
(3,716) |
2,766 |
||||
Net realized loss on extinguishment of debt |
(395) |
— |
(395) |
— |
||||
Net realized and unrealized gain (loss) |
1,097 |
(725) |
(4,111) |
2,766 |
||||
Net unrealized (depreciation) appreciation on non-affiliate investments |
122 |
2,985 |
6,385 |
(4,806) |
||||
Net unrealized depreciation on non-controlled affiliate investments |
(600) |
(932) |
(1,639) |
(1,475) |
||||
Net unrealized depreciation on controlled affiliate investments |
— |
(109) |
— |
(258) |
||||
Net unrealized (depreciation) appreciation on investments |
(478) |
1,944 |
4,746 |
(6,539) |
||||
Net realized and unrealized (loss) gain |
619 |
1,219 |
635 |
(3,773) |
||||
Net increase in net assets resulting from operations |
$ 6,730 |
$ 7,925 |
$ 12,750 |
$ 7,216 |
||||
Net investment income per common share |
$ 0.31 |
$ 0.40 |
$ 0.62 |
$ 0.65 |
||||
Net increase in net assets per common share |
$ 0.34 |
$ 0.47 |
$ 0.65 |
$ 0.43 |
||||
Distributions declared per share |
$ 0.30 |
$ 0.30 |
$ 0.60 |
$ 0.65 |
||||
Weighted average shares outstanding |
19,834,050 |
16,943,155 |
19,601,607 |
16,829,821 |
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