NASDAQ$TCPC

BlackRock TCP Capital Corp · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Announced first quarter 2023 financial results with net investment income of $0.44 per share and increased second quarter 2023 dividend by 6.3% to $0.34 per share.

BlackRock TCP Capital Corp. reported strong first quarter results, driven by solid net investment income and strategic investment opportunities. The company's net investment income was $0.44 per share, exceeding the dividend paid. The board declared a second quarter dividend of $0.34 per share, reflecting confidence in the portfolio's strength and earnings durability.

  • Net investment income for the quarter was $25.4 million, or $0.44 per share, exceeding the dividend of $0.32 per share.
  • Net asset value per share increased to $13.00 at March 31, 2023, compared to $12.93 at December 31, 2022, a 0.5% increase.
  • Net increase in net assets from operations for the quarter was $22.7 million, or $0.39 per share, primarily driven by increased investment income from rising LIBOR/SOFR rates.
  • Total acquisitions during the quarter were $76.0 million, and total dispositions were $19.3 million.

Headline financials

Total Revenue

-$5.26M

Previous: $42.2M-112.5%
EPS (adj)

$0.44

Previous: $0.34+29.4%
Free Cash Flow

$22.7M

No prior period
Net Income

$22.7M

Previous: $12.4M+82.5%
Operating Income

-$30.2M

Previous: $19.8M-252.7%
Gross Profit

-$5.26M

No prior period
Cash & Equivalents

$98.8M

Previous: $43.7M+126.3%
Total Assets

$1.79B

Previous: $1.87B-4.1%

Revenue & EPS history

BlackRock TCP · Revenue · Quarterly

-$5.26M

Q1 2023-112.5%vs Q1 2022
Beat estimate in 2 of 12 quarters(17%)
ActualEstimate

Forward guidance

BlackRock TCP Capital Corp. anticipates a favorable investment environment for established direct lenders following recent banking sector disruptions, while maintaining a disciplined approach to capitalize on market opportunities. A second quarter dividend of $0.34 per share was declared, reflecting the consistency of dividend coverage and commitment to attractive risk-adjusted returns.

Tailwinds

  • Expects investment environment to remain favorable for established direct lenders.
  • Will continue to be highly disciplined as we selectively take advantage of this more lender friendly but volatile market
  • The board announced a second quarter dividend of $0.34 per share, an increase of 6% from the current level
  • This reflects the consistency of our dividend coverage
  • Commitment to attractive and sustainable risk-adjusted returns for our shareholders.

Headwinds

  • Recent disruption in the banking sector
  • Volatile market
  • Net realized losses for the three months ended March 31, 2023 were $30.6 million
  • Net unrealized gains for the three months ended March 31, 2023 were $28.0 million
  • The company has no duty and does not undertake any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

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 Q1 2023

Historical avgQ1 2023

+0.9%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+0.8%

Avg return

30 days after

63%

12 / 19 earnings

Positive

+11.7%

Q3 2024

Best reaction

-10.5%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-3.2%-15.8%
Q4 2025-9.3%-8.4%-23.7%
Q3 2025+4.7%+3.6%+10.5%
Q1 2025+7.4%+15.3%+18.3%
Q4 2024-9.6%-12.7%-14.5%
Q3 2024+11.7%+11.9%+20.4%
Q2 2024-8.2%-12.6%-8.4%
Q1 2024+2.1%+3.7%+9.9%
Q4 2023-5.5%-5.5%-6.5%
Q3 2023+6.6%+5.7%+12.9%
Q2 2023+6.9%+5.4%+3.7%
Q1 2023+5.6%+6.4%+9.5%
Q4 2022-10.5%-8.1%-20.8%
Q3 2022+10.7%+12.7%+10.2%
Q2 2022+1.2%+4.4%+2.1%
Q1 2022+0.7%-0.5%-1.3%
Q4 2021+1.8%+1.3%+4.6%
Q3 2021-0.5%-0.1%-5.3%
Q4 2020+2.3%+7.8%+10.4%

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