Portman Ridge Finance (NASDAQ:PTMN) Corporation reported robust financial performance for the third quarter of 2023, with core investment income increasing by $700,000 year-over-year, despite facing a challenging market environment. The company’s net asset value per share also rose from $22.54 to $22.65. Amid these developments, Portman Ridge maintained its share repurchase program, purchasing over 60,000 shares at an average cost of approximately $1.2 million during the quarter.
Key takeaways from the earnings call include:
- The Board of Directors approved a dividend of $0.69 per share, reflecting a 12.2% annualized return on net asset value.
- The company remains cautious about new investment opportunities but sees potential in investing in existing portfolio companies.
- Portman Ridge expects to continue its share repurchase program, asserting that its stock remains undervalued.
- The investment portfolio remains diversified, with potential upside seen in net asset value.
- Total investment income slightly decreased to $18.6 million in Q3 2023, while net investment income was $7.2 million or $0.75 per share.
- The company’s borrowings stood at $321.5 million, with a debt-to-equity ratio of 1.5x on a gross basis.
The company’s CEO, Ted Goldthorpe, discussed the current state of the Collateralized Loan Obligation (CLO) market, stating that it showed improvement in recent weeks, leading to better bids and pricing in the syndicated loan market. Goldthorpe also emphasized that their CLO portfolio serves as a source of funds and not a use of funds.
Portman Ridge (NASDAQ:PTMN) also witnessed a decrease in total expenses quarter-over-quarter, moving from $11.7 million to $11.4 million. The company’s net asset value for the quarter was $214.8 million, or $22.65 per share. A quarterly distribution of $0.69 per share was approved and declared payable on November 30, 2023.
Goldthorpe expressed confidence in their dividend, stating that it is protected even in the event of rate cuts by the Federal Reserve. He also mentioned the potential for spillover income. The call ended with Goldthorpe thanking participants and expressing a willingness to answer any further questions.
The company remains optimistic about its positioning to deliver strong returns to shareholders in the final quarter of the year and into 2024, despite the challenging market conditions.
Portman Ridge Finance Corporation (NASDAQ:PTMN) reveals some key metrics that offer a deeper understanding of the company’s financial position. As of Q2 2023, the company’s Market Cap stands at 161.64M USD, with a negative P/E Ratio of -8.30. Revenue for the last twelve months as of Q2 2023 was 77.58M USD, indicating a revenue growth of 7.41%. The company’s dividend yield as of 2023 was a substantial 16.24%.
