NASDAQ$PFLT

PennantPark Floating Rate Capital Ltd · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Announced financial results for the second fiscal quarter ended March 31, 2020.

PennantPark Floating Rate Capital Ltd. reported a net decrease in net assets resulting from operations of $21.1 million, or $0.54 per share, for the quarter ended March 31, 2020. The portfolio totaled $1,179.0 million as of March 31, 2020.

  • Portfolio totaled $1,179.0 million as of March 31, 2020.
  • Invested $167.5 million in seven new and 37 existing portfolio companies with a weighted average yield on debt investments of 7.5% for the three months ended March 31, 2020.
  • Net investment income totaled $11.7 million, or $0.30 per share, for the three months ended March 31, 2020.
  • Net decrease in net assets resulting from operations totaled $21.1 million, or $0.54 per share, for the three months ended March 31, 2020.

Headline financials

Total Revenue

$26.3M

Previous: $23M+14.4%
EPS (adj)

$0.30

Previous: $0.30+0.0%
Weighted Average Yield on Debt Investments

7.8%

No prior period
Net Income

$11.7M

No prior period
Operating Income

$11.7M

No prior period
Cash & Equivalents

$30M

No prior period
Total Assets

$1.18B

No prior period

Revenue & EPS history

PennantPark Floating Rate · Revenue · Quarterly

$26.3M

Q2 2020+14.4%vs Q2 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

PennantPark Floating Rate · $20.9M total across 2 segments · Q3 2021

  • First Lien Secured Debt
    $18.2M-13.3%
  • Other Investments
    $2.7M+50.0%

Forward guidance

The company expects the COVID-19 pandemic will have a material adverse impact on our future net investment income, the fair value of our portfolio investments, and the results of operations and financial condition of our portfolio companies.

Headwinds

  • COVID-19 has had a significant impact on the U.S. economy.
  • Restrictions and “stay-at-home” orders have essentially resulted in the shutdown of all non-essential businesses.
  • COVID-19 pandemic has had, and continues to have, an adverse impact on our operating results and the operating results of our portfolio companies.
  • We had a significant reduction of our net asset value as of March 31, 2020 as compared to our net asset value in the prior quarter.
  • The company may run into liquidity issues in the future if we are unable to draw on the unused borrowing capacity under our Credit Facility due the breach of financial covenants.

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.3%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-0.6%

Avg return

30 days after

48%

20 / 42 earnings

Positive

+8.8%

Q4 2020

Best reaction

-9.2%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.3%-3.6%-9.7%
Q1 2026-3.5%-8.5%-14.7%
Q4 2025-1.0%-0.2%-1.6%
Q3 2025-1.1%-2.3%-2.5%
Q2 2025-0.8%+0.2%+2.6%
Q4 2024-0.1%+2.5%+1.5%
Q3 2024+0.3%+2.1%+6.5%
Q2 2024-1.2%-1.5%-1.9%
Q1 2024+0.9%+2.3%+1.7%
Q4 2023+0.3%-0.4%+6.5%
Q3 2023-4.6%-5.1%-5.6%
Q2 2023+3.9%+3.1%+2.9%
Q1 2023-2.1%+0.0%-8.6%
Q4 2022-2.3%-1.7%-3.1%
Q3 2022-2.8%+1.3%-8.1%
Q2 2022-1.1%-8.1%-10.5%
Q1 2022+1.7%-0.8%-2.1%
Q4 2021-3.4%-3.3%-8.2%
Q3 2021+0.8%+0.6%-0.7%
Q2 2021+1.4%-0.2%+1.8%
Q1 2021+1.4%-0.5%+3.6%
Q4 2020+8.8%+11.7%+11.3%
Q3 2020-2.5%+0.6%+1.1%
Q2 2020+7.9%+5.7%+29.5%
Q1 2020+1.6%+3.6%-7.0%
Q4 2019-0.4%+2.9%+4.8%
Q3 2019+1.9%+2.2%+2.5%
Q2 2019-9.2%-8.5%-11.6%
Q1 2019-0.7%+0.5%-1.3%
Q4 2018+1.0%+2.2%-6.7%
Q3 2018+0.9%+0.1%-2.9%
Q2 2018+1.5%+1.7%+5.2%
Q1 2018-8.8%-3.8%-1.9%
Q4 2017-1.3%-1.1%-2.1%
Q3 2017+0.1%-2.1%-0.4%
Q2 2017+0.6%+1.2%+1.6%
Q1 2016-0.6%-3.3%-2.3%
Q4 2016-0.5%+1.6%+4.7%
Q3 2016+2.0%+2.4%+2.8%
Q2 2016+0.7%
Q4 2015-0.9%
Q3 2011-2.3%

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