1. Stellus Capital reported solid operating results for Q4 2024. 2. Total portfolio increases to $953 million, reflecting investment activity. 3. Net investment income was $0.35 per share, down from $0.49. 4. Distributions since inception total $288 million, $16.69 per share. 5. Investments included tech, recycling, and healthcare sectors.
While Stellus is reporting solid results, the decline in per share income and net realized losses could temper investor sentiment similar to previous quarters where income fluctuations impacted stock performance.
The company's earnings and financial health may influence stock price; however, caution is advised due to the decreasing per share income.
Investor reactions may fluctuate based on recent results and economic conditions but might stabilize as they analyze long-term performance.
Stellus Capital Investment Corporation (NYSE:SCM) ("Stellus", "we", or the "Company") today announced financial results for its fourth fiscal quarter and year ended December 31, 2024.
Robert T. Ladd, Chief Executive Officer of Stellus, stated, "I am pleased to report solid operating results for the quarter ended December 31, 2024, 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 $109 million of investments and received $65 million of repayments, bringing the total portfolio to $953 million at fair value. I'm also pleased to report that our investors have received a total of $288 million in aggregate distributions, equivalent to $16.69 per share, since we began operations."
($ in millions, except data relating to per share amounts and shares outstanding)
| Three Months Ended | Year Ended | ||
|---|---|---|---|
| December 31, 2024 | December 31, 2023 | Amount | Per Share |
| Net investment income | $9.64 | $11.91 | $0.35 |
($ in millions, except data relating to per share amounts, shares outstanding, and number of portfolio companies)
| As of | December 31, 2024 | December 31, 2023 |
|---|---|---|
| Investments at fair value | $953.5 | $874.5 |
Investment income for the three months ended December 31, 2024 and 2023 totaled $25.6 million and $28.0 million, respectively, most of which was interest income from portfolio investments.
As of December 31, 2024, the Company's amended senior secured revolving credit agreement with certain bank lenders and Zions Bancorporation, N.A. dba Amegy Bank, as administrative agent provided for borrowings in an aggregate amount of up to $315.0 million on a committed basis.
During the three months ended December 31, 2024 and 2023, the Company declared aggregate distributions of $0.40 per share for both periods ($10.9 million and $9.6 million in the aggregate, respectively).
Stellus Capital Investment Corporation will host a conference call to discuss these results on Wednesday, March 5, 2025 at 10:00 AM, Central Time.
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.
W. Todd Huskinson, Chief Financial Officer
(713) 292-5414
info@stelluscapital.com