NYSE$MAIN

Main Street Capital Corp. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong third quarter results driven by the strength of its lower middle market and private loan portfolio companies and significant contributions from its asset management business.

Main Street Capital Corporation announced its Q3 2023 financial results, featuring a net investment income of $0.99 per share and distributable net investment income of $1.04 per share. The company's net asset value stood at $28.33 per share. The company's performance was highlighted by an 18% return on equity. The company also declared regular monthly dividends totaling $0.705 per share for the fourth quarter of 2023, representing a 6.8% increase from the regular monthly dividends paid in the fourth quarter of 2022.

  • Net investment income reached $82.2 million, or $0.99 per share.
  • Distributable net investment income was $86.2 million, or $1.04 per share.
  • Total investment income amounted to $123.2 million.
  • Net asset value per share increased to $28.33, a 2.3% increase compared to the previous quarter.

Headline financials

Total Revenue

$85.5M

Previous: $67.5M+26.7%
EPS (adj)

$1.04

Previous: $0.83+25.3%
Return on Equity

17.9%

Previous: 25.9%-31.0%
LMM Portfolio Companies

79

Previous: 75+5.3%
LMM Portfolio Fair Value

$2.19B

Previous: $1.91B+14.6%
Private Loan Portfolio Companies

89

Previous: 87+2.3%
Private Loan Portfolio Fair Value

$1.54B

Previous: $1.48B+4.5%
Middle Market Portfolio Companies

27

Previous: 33-18.2%
Middle Market Portfolio Fair Value

$291M

Previous: $354M-18.0%
Free Cash Flow

$103M

Previous: $55.3M+86.6%
Net Income

$103M

Previous: $55.3M+86.6%
Operating Income

$81.2M

Previous: $63.5M+27.9%
Gross Profit

$85.5M

Previous: $67.5M+26.7%
Cash & Equivalents

$77M

Previous: $61.2M+26.0%
Total Assets

$4.47B

Previous: $4.13B+8.0%
Stock-Based Comp

$4.16M

Previous: $3.62M+15.1%

Revenue & EPS history

Main Street Capital · Revenue · Quarterly

$85.5M

Q3 2023+26.7%vs Q3 2022
Beat estimate in 2 of 14 quarters(14%)
ActualEstimate

Revenue by segment

Main Street Capital · $123M total across 3 segments · Q3 2023

  • Interest Income
    $99.4M+32.5%
  • Dividend Income
    $21.2M+9.1%
  • Fee Income
    $2.66M-32.4%

Forward guidance

Based upon this strong performance, our distributable net investment income in the third quarter exceeded the monthly dividends paid to our shareholders by 51% and the total dividends paid to our shareholders by 8%. This performance allowed us to deliver significant value to our shareholders, while still conservatively retaining a meaningful portion of our income and growing our net asset value per share. In addition, our strong third quarter results and favorable outlook for the fourth quarter resulted in the declaration of an increase to our monthly dividends for the first quarter of 2024 and a $0.275 per share supplemental dividend to be paid in December 2023.

Tailwinds

  • Distributable net investment income in the third quarter exceeded the monthly dividends paid to shareholders by 51%.
  • Total dividends paid to shareholders exceeded distributable net investment income by 8%.
  • The company was able to deliver significant value to its shareholders.
  • The company conservatively retained a meaningful portion of its income.
  • Net asset value per share grew.

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 Q3 2023

Historical avgQ3 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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