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Triangle Capital Corporation Message Board

  • lurking_in_the_distance lurking_in_the_distance Nov 7, 2012 4:13 PM Flag

    Q3 NII was .58/share, beats expectations by .03/share

    Most likely, expect another dividend increase later this quarter.

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    • From the conference call "of the 24.3 million in total investment income, a little more than $700,000 or approximately $0.03 per share was related to a non-recurring dividend from a portfolio company.
      All BDCs have a variety of non-recurring events happening all the time - but they are lumpy. To have 100% of the excess 'coverage' due to a non-recurring event is enough news to put investors on pause. Or put another way - the market may not like the explanation for the earnings 'beat'. On the other hand - next to no-one listen to conference calls.

      And on the third hand - a non-recurring dividend is not a one time event. Some of us TCAP investors are also investors in ARCC - which paid a non-recurring bonus 5 cents a share dividend in Q3 and will do so again in Q4.

      Summation - non-recurring things happen, and a heck of a lot of them are bad. We do not get down in the dumps when we have a bad quarter due to a one time event. And we should not over-celebrate this one time good event that resulted in the NII beat. Remember [this is old news for most of you] that for BDCs, the market views NII as EPS. The "EPS' forecast that you see when you view analyst estimates are in fact NII projections.

      I am not expecting another div increase this quarter. But what do I know - I was wrong the last time I told this board not to expect an increase.

      • 2 Replies to factoids2002
      • Quarterly results are lumpy given one time events. The principal positive is that, at quarter end, TCAP had 300 million liquidity available via bond offerings, credit facility and SBA. After quarter end, they raised more money. As a percentage of book, I know of no other BDC that has this kind of liquidity or earnings power. That is the future.

      • I think that keeping NII other than non-recurring NII above the dividend level is a must for any BDC. If TCAP doesn't raise its dividend this quarter, I would be perfectly content, as the company has done such as good job boosting its dividend ever since I first bought it almost four years ago.

    • I'm trying to figure out why we are down pre-market. NAV was up by not as much in the past but it was still up. NII was up nicely. +10% is great.

    • Good Q produced by an excellent team. Agree that a dividend hike is likely with next distribution.

26.21-0.17(-0.64%)Sep 19 4:10 PMEDT

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