Net Investment Income: $90.1 million, or $1.07 per share for Q4; $339.0 million, or $4.14 per share for full year 2023.
Distributable Net Investment Income: $94.8 million, or $1.12 per share for Q4; $356.8 million, or $4.36 per share for full year 2023.
Net Asset Value (NAV): Increased to $29.20 per share, up 3.1% from Q3 2023.
Total Investment Income: Rose to $129.3 million in Q4, a 14% increase year-over-year.
Dividends: Regular monthly dividends declared for Q1 2024 total $0.72 per share, a 6.7% increase from Q1 2023.
Portfolio Investments: Completed $92.3 million in LMM investments and $160.4 million in private loan investments in Q4.
Liquidity and Capital Resources: Aggregate liquidity of $1,125.1 million as of December 31, 2023.
Main Street Capital Corp (NYSE:MAIN) released its 8-K filing on February 22, 2024, announcing its financial results for the fourth quarter and full year ended December 31, 2023. MAIN, an investment firm specializing in debt and equity financing for lower and middle market companies, reported a net investment income of $90.1 million, or $1.07 per share, and distributable net investment income of $94.8 million, or $1.12 per share for the fourth quarter. The company’s net asset value per share increased to $29.20, reflecting a 3.1% rise from the previous quarter.
Main Street Capital Corp Reports Record Net Investment Income and Dividends in Q4 and Full Year 2023
MAIN’s total investment income for the fourth quarter reached $129.3 million, a 14% increase from the same period in the previous year, driven by higher interest and dividend income. The company’s cost efficiency remained industry-leading, with an Operating Expenses to Assets Ratio of 1.3% on an annualized basis. MAIN also declared and paid a supplemental dividend of $0.275 per share, contributing to a total dividend of $0.98 per share for the fourth quarter, marking a 28.9% increase from the fourth quarter of 2022.
The company’s investment activities included $92.3 million in lower middle market (LMM) portfolio investments and $160.4 million in private loan portfolio investments. MAIN’s liquidity and capital resources were robust, with $1,125.1 million in aggregate liquidity, including cash and unused capacity under its credit facilities.
CEO Dwayne L. Hyzak commented on the company’s performance, stating, “We are extremely pleased with our performance in the fourth quarter, which closed another record year for Main Street across several key financial metrics.” He highlighted the company’s quarterly and annual records for net investment income per share and distributable net investment income per share, as well as a return on equity of approximately 19% for the full year.
“These results demonstrate the continued and 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,” said Hyzak.
Looking ahead, MAIN is positioned for growth with strong liquidity and a conservative leverage profile, as it continues to focus on its lower middle market and private loan investment strategies.
For a more detailed discussion of the financial and other information included in this press release, please refer to the Main Street Annual Report on Form 10-K for the year ended December 31, 2023, to be filed with the Securities and Exchange Commission (www.sec.gov) and Main Streets Fourth Quarter 2023 Investor Presentation to be posted on the investor relations section of the Main Street website at https://www.mainstcapital.com.
Explore the complete 8-K earnings release (here) from Main Street Capital Corp for further details.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
