Q1 2024 WhiteHorse Finance Inc Earnings Call Transcript
Key Points
- WhiteHorse Finance Inc reported a GAAP net investment income and core NII of $10.8 million, or $0.465 per share, which covered the quarterly dividend of $0.385 per share.
- The company's investment portfolio remained strong with 99% of the debt portfolio being first lien senior secured.
- The JV with Ohio STRS generated investment income of approximately $4.8 million in Q1, reflecting a productive use of the JV structure.
- WhiteHorse Finance Inc successfully managed its portfolio, with total repayments and sales amounting to $43.4 million, driven by five complete realizations and one partial realization.
- The company maintained a robust sourcing model, allowing access to less competitive markets, which supports higher pricing and better terms.
- NAV per share decreased by 1% due to net markdowns on the portfolio totaling $5.2 million, primarily from a markdown in equity warrants in Seagate Corporation.
- The broader lending market has become more aggressive, with deteriorating credit documents and lower pricing, which could impact future earnings.
- There were some portfolio markdowns, including a significant $3.5 million markdown to the equity investment in Seagate Corporation.
- Investments on nonaccrual increased to 1.3% of the debt portfolio at fair value, indicating potential default risks.
- Economic forecasts suggest slower growth, with inflation expected to continue above the Federal Reserve's target, posing challenges for the broader market and investment returns.
Good morning. My name is Mike, and I will be your conference operator today. At this time, I would like to welcome everyone to the WhiteHorse Finance First Quarter 2024 earnings conference call. Our host for today's call are Stuart Aronson, Chief Executive Officer, and Joyson Thomas, Chief Financial Officer.
Today's call is being recorded, and a replay is available through a webcast in the Investor Relations section of our website at WhiteHorse Finance.com. At this time, all participants have been placed in a listen only mode and the floor will be open for your questions following the presentation. If you would like to ask a question at that time, please press star one on your touchtone phone. If at any point your question has been answered. You may remove yourself from the queue by pressing star two. If you should require Operator assistance again, you may press star zero. It is now my pleasure to turn the call over to Robert Greenberg of Rosen & Co. Please go ahead.
Thank you, Mike, and
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
