Going through the numbers this morning. Overall good but I have a few slighty concerns. Still a "Buy" to me.
NII: $0.52. (+$0.02 Q1 but -$0.05 Y/Y) For the year we are on track for $2.05 - $2.09. 2011 was $2.06 so per share TCAP is not growing (yet). However they still have lots of secondary money left. They had quite a deal of prepayment of loans this quarter and
Cash on hand: How much money do they have ready for more investments and how much secondary offering cash needs to be Q1 2012: $142.5 million Q2 2012: $93.7 million Interesting comment they made is that they might tap their debt later ths year for cash. Perhaps no other secondaries this year.
Investments: Last quarter 7 new ones. In July alone they had 3 so they are on pace to catch up with their slowing growth
Efficiency Ratio: Dropped this quarter. 17.2% vs 18.9% Q1. To be honest I have no idea what the efficiency ratio is lol. But whenever I am bullish on a stock I try to find reasons where I am wrong. Anyone know what efficiency ratio is?
NAV: A little concerned that the growth is slowing but again, they have a lot of cash on the sidelines not being used. I'd rather them go slow and do smart investments then rush things and get sloppy. Q4 2011: $14.68 Q1 2012: $15.12 Q2 2012: $15.21
Its going to take time for those new investments to start making money that occured in Q2 and did not have a full quarter to contribute to NII. Also we have 3 investments so far in Q3. I could see $0.54 - $0.56 NII next quarter.
Missed an important number... In Q1 they raised $77.2 million in the secondary. They still have $93.7 million in cash to be used. For all intents and purposes none of the secondary money has been used yet they did get some growth still.
THATS the type of management I want to be invested in! The second half of the year should see some really nice growth.
"Another very significant operating metric is our efficiency ratio which we calculate as as a percentage of total investment income. For the quarter ended June 30, 2012, our efficiency ratio was 17.2%. TCAP continues to have one of the very best efficiency ratios in the BDC industry. As internally managed BDC, we have demonstrated that as our company grows, a greater percentage of each incremental dollar of revenue can fall to the bottom line as dividends....In addition, our low efficiency ratio demonstrates our commitment to operating in the most cost effective manner possible."