NASDAQ$HRZN

Horizon Technology Finance Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Announced fourth quarter and full year 2020 financial results.

Horizon Technology Finance Corporation reported a net investment income of $0.21 per share for Q4 2020. The company originated nearly $77 million of new loans during the quarter and maintained regular monthly distributions of $0.10 per share. They also made progress exiting underperforming loans, enhancing the credit profile.

  • Net Investment Income per Share was $0.21.
  • NAV per Share was $11.02.
  • The company declared regular monthly distributions totaling $0.30 per share.
  • The company had a year-end record committed backlog of $107 Million.

Headline financials

Total Revenue

$10.1M

No prior period
EPS (adj)

$0.21

No prior period
NAV per Share

$11.02

No prior period
Debt Portfolio Fair Value

$334M

No prior period
Available Liquidity

$72.4M

No prior period
Committed Backlog

$107M

No prior period
Debt Portfolio Yield

13.0%

No prior period
Net Income

$2.4M

No prior period
Operating Income

$4.2M

No prior period
Cash & Equivalents

$46.7M

No prior period
Total Assets

$0.00

No prior period

Revenue & EPS history

Horizon Technology · Revenue · Quarterly

$10.1M

Q4 2020
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Forward guidance

Horizon expects to generate strong results and expand its portfolio in 2021, leveraging its liquidity, strong backlog, and high market demand for venture debt.

Tailwinds

  • Originated nearly $77 million of new loans during the fourth quarter, expected to provide a strong foundation to generate additional NII in the first quarter of 2021.
  • Maintained regular monthly distributions of $0.10 per share through June.
  • Enhanced credit profile due to successful exits of several underperforming loans.
  • Strong backlog and pipeline of attractive opportunities.
  • High market demand for venture debt.

Headwinds

  • Fourth quarter NII was impacted by low origination volume in the third quarter.
  • Lower income from prepayments affected NII.
  • Realized losses due to exiting underperforming loans.
  • Lower net asset value per share as of December 31, 2020 was primarily due to paid distributions in excess of net investment income and the resolution of underperforming loans.
  • Year-over-year reduction in total investment income is primarily due to lower interest income on investments resulting from a lower debt investment portfolio due in part to the challenging economic and operating environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-1.9%

Avg return

Earnings day

-3.3%

Avg return

5 days after

-4.3%

Avg return

30 days after

42%

8 / 19 earnings

Positive

+8.2%

Q3 2022

Best reaction

-16.8%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%+8.6%+11.0%
Q4 2025-0.8%-31.6%-30.0%
Q3 2025-1.0%+6.8%+9.7%
Q1 2025-16.8%-17.1%-15.3%
Q4 2024-9.9%-2.2%-11.5%
Q3 2024-4.3%-6.8%-8.3%
Q2 2024-4.4%-7.8%-9.5%
Q1 2024-1.5%+1.6%-0.3%
Q4 2023-6.2%-8.5%-12.6%
Q3 2023+6.4%+8.8%+13.1%
Q2 2023+1.1%-5.4%-9.5%
Q1 2023+0.3%-1.1%+1.1%
Q4 2022-5.5%-9.1%-10.9%
Q3 2022+8.2%+13.5%+13.5%
Q2 2022+3.1%+1.2%-5.9%
Q1 2022+0.1%-0.3%-2.7%
Q4 2021-0.3%-2.6%-10.7%
Q3 2021+2.3%+1.6%-0.8%
Q4 2020-9.0%-11.5%-1.9%

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