Fidus Investment Corporation Announces Thriving Financial Outcomes
Board of Directors Announced Total Dividends of $0.61 per Share for Fourth Quarter 2024
Base Dividend of $0.43 and Supplemental Dividend of $0.18 Per Share
Fidus Investment Corporation (NASDAQ:FDUS), recognized for its tailored debt and equity financing solutions to lower middle-market companies in the United States, unveiled its financial report for the third quarter ended September 30.
Financial Highlights for Third Quarter 2024
Highlights for the quarter included:
- Total investment income reached $38.4 million
- Net investment income was $21.4 million, equating to $0.64 per share
- Adjusted net investment income computed at $20.4 million, or $0.61 per share
- Invested $65.9 million in debt and equity securities, diversifying into three new portfolio companies
- Achieved proceeds of $50.8 million from repayments and realizations
- Distributed total dividends of $0.57 per share, including a regular quarterly dividend of $0.43 and a supplemental dividend of $0.14 on the final day of September
- Net asset value stood at $658.8 million, translating to $19.42 per share
- Estimated spillover income as of September 30 amounted to $43.1 million, or $1.27 per share
Management Insights
Edward Ross, Chairman and CEO, commented, "This quarter demonstrated an impressive 8.4% year-over-year increase in interest income generated from our debt investments. We are poised to continue our careful growth of total assets under management while promoting a healthy portfolio designed for consistent income generation and potential for increased returns through the realization of equity investments. We anticipate steady investment activity as we move forward, offering us the chance to achieve our long-term objectives of delivering appealing risk-adjusted returns for our shareholders."
Diving into the Financial Results
The table below succinctly captures the organization’s operational results for the third quarter compared to the same period last year (all figures in thousands):
Total investment income surged by $4.2 million, driven primarily by a significant increase in total interest income. This was partly offset by a fall in the weighted average yield on debt investments. The rise in investment income was distributed across different areas:
- A $2.6 million boost in total interest income, including payment-in-kind income
- A $1.1 million lift in dividend income due to enhanced distributions from equity investments
- A $0.4 million grow in fee income attributable to elevated amendment fees
Portfolio Updates and Investment Activities
As for the overall portfolio, as of September 30, 2024, Fidus managed a valued investment portfolio totaling $1,090.7 million, inclusive of 85 active portfolio companies and five companies that had exited their underlying operations. On that date, Fidus's debt investments in 49 portfolio entities were at a variable rate, comprising $702.0 million, or 73.2% of the debt portfolio on a fair value basis, with the rest comprised of fixed-rate investments.
Notably, the third quarter saw new investment activities including:
- A total of $6.0 million in first lien debt and $0.8 million in preferred equity into Jumo Health, Inc.
- A $9.8 million investment in first lien debt with additional commitments in Thrust Flight LLC.
- A combined $20.4 million in first lien debt and preferred equity in InductiveHealth Informatics, LLC.
Liquidity Position
As of September 30, 2024, Fidus had $54.4 million in cash, along with $100.0 million available under its senior secured revolving credit facility. During this quarter, the company collected net proceeds of $14.1 million from its equity at-the-market program.
Additionally, Fidus holds $175.0 million in SBA debentures, $125.0 million in 4.75% notes due January 2026, and $125.0 million in 3.50% notes due November 2026, with the total weighted average interest rate situated at 4.6%.
Fourth Quarter 2024 Dividends
On October 28, 2024, the board of directors declared a dividend totaling $0.61 per share, made up of a $0.43 base dividend and a $0.18 supplemental dividend, with payment to follow on December 27, 2024.
This dividend reflects the board's assessment of the taxable income available for distribution, emphasizing Fidus's commitment to delivering value to its shareholders through dividend reinvestment opportunities and cash payments.
Upcoming Events and Contact Information
A conference call detailing the Q3 results is scheduled for 9:00am ET on the day following the report. Shareholders and interested parties can access details regarding participation.
Company Contact:
Shelby E. Sherard
Chief Financial Officer
(847) 859-3940
ssherard@fidusinv.com
Frequently Asked Questions
What are the key financial results of Fidus Investment Corporation?
Fidus reported an increase in total investment income to $38.4 million and a net investment income of $21.4 million for Q3 2024.
How much dividend was declared for the fourth quarter of 2024?
The board declared a total dividend of $0.61 per share, consisting of a base dividend of $0.43 and a supplemental dividend of $0.18.
What investment activities took place during Q3 2024?
Fidus invested in three new portfolio companies, including Jumo Health, Thrust Flight, and InductiveHealth Informatics.
How does Fidus Investment Corporation maintain its liquidity?
Fidus maintains liquidity through cash reserves and access to its credit facility, with $54.4 million in cash as of September 30, 2024.
Who can be contacted for more information regarding Fidus Investment Corporation?
Interested parties can contact Shelby E. Sherard, Chief Financial Officer of Fidus, at (847) 859-3940 or via email at ssherard@fidusinv.com.
