Fidus Investment Corp (FDUS) Reports Q3 2023 Earnings: Net Investment Income Rises by 31% YoY
Fidus Investment Corp (NASDAQ:FDUS) reported Q3 2023 net investment income of $16.7 million, a 31% increase from the same period in 2022.
The company's total investment income for the quarter was $34.2 million.
Adjusted net investment income rose by 46% YoY to $18.2 million.
The company's net asset value (NAV) stood at $548.6 million, or $19.28 per share, as of September 30, 2023.
On November 2, 2023, Fidus Investment Corp (NASDAQ:FDUS), a provider of customized debt and equity financing solutions primarily to lower middle-market companies in the United States, announced its financial results for the third quarter ended September 30, 2023.
Financial Highlights
FDUS reported a net investment income of $16.7 million, or $0.63 per share, for Q3 2023. This represents a 31% increase from the same period in 2022. The company's total investment income for the quarter was $34.2 million. Adjusted net investment income, which excludes the capital gains incentive fee accrual, was $0.68 per share, up from $0.51 per share in the prior year.
FDUS invested $56.7 million in debt and equity securities, including two new portfolio companies, and received proceeds from repayments and realizations of $69.9 million. The company's net asset value (NAV) stood at $548.6 million, or $19.28 per share, as of September 30, 2023.
Our portfolio delivered strong results for the third quarter, building on a strong first half of 2023. Income-producing assets generated a 46% increase in Adjusted NII compared to last year, well in excess of our base dividend, reflecting both higher loan balances and higher yields, and our equity portfolio produced realized gains totaling $9.8 million. As a result of our portfolios performance in 2023, the Board of Directors has declared an increase in the base dividend to $0.43 per share. Our strategy of managing the business for the long-term, with a steadfast focus on growing NAV over time, preserving capital and generating attractive risk-adjusted returns, continues to deliver value to our shareholders, said Edward Ross, Chairman and CEO of Fidus Investment Corporation.
Investment Activities and Portfolio Performance
As of September 30, 2023, the fair value of FDUS's investment portfolio totaled $926.9 million and consisted of 80 active portfolio companies. The total portfolio investments at fair value were approximately 103.5% of the related cost basis as of September 30, 2023. The weighted average yield on debt investments was 14.6% as of September 30, 2023.
Liquidity and Capital Resources
As of September 30, 2023, FDUS had $80.3 million in cash and cash equivalents and $100.0 million of available borrowings under its senior secured revolving credit facility. The weighted average interest rate on total debt outstanding was 4.3%.
Dividends Declared
On October 30, 2023, FDUS's board of directors declared a base dividend of $0.43 per share, a supplemental dividend of $0.27 per share, and a special dividend of $0.10 per share for the third quarter, payable on December 27, 2023, to stockholders of record as of December 20, 2023.
Explore the complete 8-K earnings release (here) from Fidus Investment Corp for further details.
This article first appeared on GuruFocus.
