NYSE$MAIN

Main Street Capital Corp. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong quarterly results driven by lower middle market and private loan investment strategies, along with significant contributions from the asset management business. Achieved record net investment income per share, distributable net investment income per share, and net asset value per share.

Main Street Capital Corporation announced strong Q2 2023 results, with net investment income of $1.06 per share and distributable net investment income of $1.12 per share. The company's net asset value increased to $27.69 per share. The performance was driven by the lower middle market and private loan investment strategies and the asset management business.

  • Net investment income was $85.7 million, or $1.06 per share.
  • Distributable net investment income was $90.3 million, or $1.12 per share.
  • Net asset value increased to $27.69 per share.
  • Declared regular monthly dividends totaling $0.69 per share for Q3 2023.

Headline financials

Total Revenue

$14.9M

Previous: $85.2M-82.5%
EPS (adj)

$1.12

Previous: $0.78+43.6%
Return on Equity

19.2%

Previous: 25.4%-24.3%
LMM Portfolio Companies

79

No prior period
LMM Portfolio Fair Value

$2.17B

No prior period
Private Loan Portfolio Companies

88

No prior period
Private Loan Portfolio Fair Value

$1.5B

No prior period
Middle Market Portfolio Companies

28

No prior period
Middle Market Portfolio Fair Value

$296M

No prior period
Free Cash Flow

$107M

No prior period
Net Income

$107M

Previous: $54.7M+94.7%
Operating Income

$10.4M

No prior period
Gross Profit

$14.9M

No prior period
Cash & Equivalents

$70.9M

Previous: $43.4M+63.3%
Total Assets

$4.42B

No prior period
Stock-Based Comp

$4.09M

Previous: $3.6M+13.7%

Revenue & EPS history

Main Street Capital · Revenue · Quarterly

$14.9M

Q2 2023-82.5%vs Q2 2022
Beat estimate in 2 of 14 quarters(14%)
ActualEstimate

Revenue by segment

Main Street Capital · $128M total across 3 segments · Q2 2023

  • Interest Income
    $97.3M
  • Dividend Income
    $25.6M
  • Fee Income
    $4.71M

Forward guidance

The company anticipates a continued favorable outlook for the third quarter, supported by a healthy investment pipeline, conservative liquidity position, and capital structure.

Tailwinds

  • Attractive investment pipeline in LMM and private loan portfolios.
  • Conservative liquidity position.
  • Strong capital structure.
  • Increased monthly dividends for the fourth quarter of 2023.
  • Supplemental dividend of $0.275 per share to be paid in September 2023.

Headwinds

  • Adverse changes in the economy or industries where portfolio companies operate.
  • Impacts of macroeconomic factors such as pandemics, recession risk, inflation, and rising interest rates.
  • Changes in laws and regulations or business, political, and/or regulatory conditions.
  • Operating and financial performance of portfolio companies and their access to capital.
  • Competitive factors.

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 2023

Historical avgQ2 2023

+0.8%

Avg return

Earnings day

+0.9%

Avg return

5 days after

+0.1%

Avg return

30 days after

66%

42 / 64 earnings

Positive

+8.1%

Q1 2010

Best reaction

-9.4%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.4%-10.0%-8.4%
Q4 2025-2.2%+1.4%-11.3%
Q3 2025+2.9%+3.5%+6.3%
Q1 2025-0.2%+0.3%+8.4%
Q4 2024+3.2%-1.5%-3.9%
Q3 2024+0.6%+1.4%+7.3%
Q2 2024-0.7%-1.1%-0.6%
Q1 2024-2.4%-1.6%-3.7%
Q4 2023+1.0%+2.7%+2.5%
Q3 2023+3.5%+2.2%+6.1%
Q2 2023-0.2%-1.7%-4.3%
Q1 2023-0.7%-0.4%-0.7%
Q4 2022+3.0%+6.7%-1.3%
Q3 2022+4.6%+4.7%+2.0%
Q2 2022+1.2%-0.9%-9.7%
Q1 2022-1.5%-5.5%-8.6%
Q4 2021+2.7%+2.0%+0.3%
Q3 2021+4.0%+4.4%+0.4%
Q2 2021+0.8%+2.3%+0.5%
Q1 2021-1.0%-3.6%-2.2%
Q4 2020-0.7%-0.6%+6.3%
Q3 2020+0.0%+8.3%+12.8%
Q2 2020+3.2%+4.8%-4.0%
Q1 2020+4.0%+6.5%+32.5%
Q4 2019-8.0%-5.0%-41.2%
Q3 2019-3.5%-2.3%-1.4%
Q2 2019-0.0%+1.8%+3.7%
Q1 2019+2.2%+2.2%+2.6%
Q4 2018-1.8%-4.1%-4.9%
Q3 2018-0.4%+4.6%+2.5%
Q2 2018+2.1%+2.8%+1.9%
Q1 2018+2.5%+3.1%+2.2%
Q4 2017+0.5%+0.1%+2.3%
Q3 2017+2.2%+3.4%+0.1%
Q2 2017-0.4%+2.1%+0.2%
Q1 2017+0.7%-0.3%-3.7%
Q4 2016+0.2%-1.1%-0.6%
Q3 2016+1.0%+4.1%+10.5%
Q2 2016+1.7%+1.1%+1.8%
Q1 2016+1.0%
Q4 2015+3.3%
Q3 2015-1.3%
Q2 2015-2.4%
Q1 2015+1.1%
Q4 2014+0.1%
Q3 2014+2.2%
Q2 2014+2.9%
Q1 2014-2.6%
Q4 2013-0.7%
Q3 2013+1.0%
Q2 2013+0.9%
Q1 2013+2.6%
Q4 2012+2.9%
Q3 2012+2.4%
Q2 2012+1.7%
Q1 2012+0.7%
Q4 2011+1.5%
Q3 2011+0.9%
Q2 2011-9.4%
Q1 2011+4.3%
Q4 2010+2.3%
Q3 2010+5.1%
Q2 2010+2.1%
Q1 2010+8.1%

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