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Capitala Finance Corp. (CPTA)

NasdaqGS - NasdaqGS Delayed Price. Currency in USD
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2.1700+0.0500 (+2.36%)
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Neutralpattern detected
Previous Close2.1200
Open2.1500
Bid2.1700 x 800
Ask2.1700 x 1400
Day's Range2.1200 - 2.1800
52 Week Range2.0200 - 9.2000
Volume60,073
Avg. Volume419,339
Market Cap35.298M
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-2.3270
Earnings DateNov 02, 2020 - Nov 06, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateMar 20, 2020
1y Target Est2.92
  • Capitala Finance (CPTA) Reports Q2 Loss, Misses Revenue Estimates
    Zacks

    Capitala Finance (CPTA) Reports Q2 Loss, Misses Revenue Estimates

    Capitala Finance (CPTA) delivered earnings and revenue surprises of -233.33% and -0.09%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?

  • GlobeNewswire

    Capitala Finance Corp. Reports Second Quarter 2020 Results

    CHARLOTTE, N.C., Aug. 04, 2020 (GLOBE NEWSWIRE) -- Capitala Finance Corp. (Nasdaq:CPTA) ("Capitala", the “Company”, “we”, “us”, or “our”) today announced its financial results for the second quarter of 2020. Second Quarter Highlights * Increase in NAV per share-$6.46 at June 30, 2020 compared to $6.27 at March 31, 2020 * Successful wind down of Capitala Senior Loan Fund II, LLC (“CSLF II”) * Reduced non-accrual balances * Liquidity from repayments will allow the Company to reduce leverage during the second half of 2020 and support existing and new portfolio investmentsManagement CommentaryIn describing the Company’s second quarter activities, Joseph B. Alala, III, Chairman and Chief Executive Officer, stated, “We are pleased to report a slight increase in NAV per share during the second quarter of 2020, while generating $51.1 million of liquidity through repayments and the wind down of CSLF II.  The $95.2 million of cash at quarter end will allow us to support our existing portfolio investments, evaluate new investment opportunities, reduce leverage by the repayment of scheduled maturities and the prepayment of other debt, and provide for general working capital needs.”Second Quarter 2020 Financial ResultsDuring the second quarter of 2020, the Company originated $12.5 million of new investments, and received $51.1 million of repayments.  Repayments included $13.1 million from the wind down of the Company’s investment in CSLF II, $17.8 million in full repayment of the first and second lien debt investments in Flavors Holdings, Inc., and $20.2 million in various other repayments.Total investment income was $7.0 million for the second quarter of 2020, compared to $11.6 million in the second quarter of 2019.  Interest and fee income were $4.0 million lower in second quarter of 2020 as compared to the second quarter of 2019, the result of lower average debt investments outstanding and the impact of repayments and non-accrual investments.  Payment-in-kind income and dividend income, collectively, declined by $0.6 million, primarily due the wind down of CSLF II during the second quarter of 2020.Total expenses for the second quarter of 2020 were $7.6 million, relatively unchanged from the comparable period in 2019.  During the second quarter of 2020, the Company recorded $1.1 million in one-time deferred financing charges related to the early termination of its senior secured credit facility.Net realized losses totaled $13.3 million for the second quarter of 2020, compared to $15.1 million of net realized losses for the second quarter of 2019.  Net realized losses had an immaterial impact to NAV per share during the second quarter of 2020, as realized amounts were generally in line with prior fair value amounts.Net unrealized appreciation totaled $17.0 million, or $1.04 per share, for the second quarter of 2020, compared to net unrealized depreciation of $17.4 million for the second quarter of 2019.The net increase in net assets resulting from operations was $3.1 million for the second quarter of 2020, or $0.19 per share, compared to a net decrease of $29.1 million, or $1.81 per share, for the same period in 2019.Investment PortfolioAs of June 30, 2020, our portfolio consisted of 37 companies with a fair market value of $287.3 million and a cost basis of $305.0 million. First lien debt investments represented 67.4% of the portfolio, second lien debt investments represented 13.3% of the portfolio, and equity/warrant investments represented 19.3% of the portfolio, based on fair values.At June 30, 2020, the Company had five debt investments on non-accrual status, totaling $34.5 million and $23.9 million, on a cost basis and fair value basis, respectively.Liquidity and Capital ResourcesAt June 30, 2020, the Company had $95.2 million in cash and cash equivalents.  In addition, the Company had SBA debentures outstanding totaling $150.0 million with an annual weighted average interest rate of 3.16%, $75.0 million of fixed rate notes bearing an interest rate of 6.00%, and $52.1 million of convertible notes bearing an interest rate of 5.75%.Subsequent EventsDuring July 2020, the Company received $2.4 million in principal repayments on its first lien debt investment in BigMouth, Inc.On July 30, 2020, the Company’s board of directors approved a one-for-six reverse stock split of the Company’s common stock which is expected to be effective as of 5:00 Eastern Standard Time on August 21, 2020 (the "Effective Time"). The Company's common stock is expected to begin trading on a split-adjusted basis at the market open on August 24, 2020. At the Effective Time, every six (6) issued and outstanding shares of the Company's common stock will be converted into one (1) share of the Company's common stock.On July 30, 2020, the Company’s board of directors approved a bond repurchase program which authorizes the Company to repurchase up to an aggregate of $10.0 million worth of the Company's outstanding 2022 Notes and/or 2022 Convertible Notes (the "Bond Repurchase Program"). The Bond Repurchase Program will terminate upon the earlier of (i) July 30, 2021 or (ii) the repurchase of an aggregate of $10.0 million worth of 2022 Notes and/or 2022 Convertible Notes.Second Quarter 2020 Financial Results Conference CallManagement will host a conference call to discuss the operating and financial results at 8:30 a.m. on Wednesday, August 5, 2020.  The call will be broadcast live in listen-only mode on the Company’s investor relations website at www.CapitalaGroup.com.  To participate in the conference call, please dial 1-877-312-5507 approximately 10 minutes prior to the call.About Capitala Finance Corp.Capitala Finance Corp. is a business development company that invests primarily in first lien loans, and, to a lesser extent, second lien loans and equity securities issued by lower and traditional middle market companies.  The Company is managed by Capitala Investment Advisors, LLC.  For more information on Capitala, or to automatically receive email notifications of Company financial information, press releases, stock alerts, or other corporate filings, please visit the Investor Relations section of our website.About Capitala GroupCapitala Group is a $3.0 billion asset management firm that has been providing capital to lower middle market companies through its credit, growth, and equity investment strategies throughout North America for over twenty years. Since its inception in 1998, Capitala Group has invested in over 160 companies and seeks to partner with strong management teams to create value and generate superior risk-adjusted returns for its individual and institutional investors. For more information, definition and details visit Capitala Group’s website at www.capitalagroup.com.Forward-Looking StatementsThis press release contains certain forward-looking statements. Words such as “believes,” “intends,” “expects,” “projects,” “anticipates,” and “future” or similar expressions are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant volatility on our business, our portfolio companies, our industry and the global economy.  Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission.  The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.SOURCE: Capitala Finance Corp.Capitala Finance Corp. Stephen Arnall, Chief Financial Officer 704-376-5502 sarnall@capitalagroup.com  Capitala Finance Corp.        Consolidated Statements of Assets and Liabilities (in thousands, except share and per share data)           As of    June 30, 2020 December 31, 2019    (unaudited)   ASSETS     Investments at fair value:      Non-control/non-affiliate investments (amortized cost of $211,569 and $250,433, respectively) $190,650  $241,046   Affiliate investments (amortized cost of $84,403 and $80,756, respectively)  87,679   98,763   Control investments (amortized cost of $9,044 and $22,692, respectively)  8,937   22,723   Total investments at fair value (amortized cost of $305,016 and $353,881, respectively)  287,266   362,532  Cash and cash equivalents  95,226   62,321  Interest and dividend receivable  2,078   1,745  Prepaid expenses  640   624  Deferred tax asset, net  -   -  Other assets  301   115   Total assets $385,511  $427,337         LIABILITIES     SBA Debentures (net of deferred financing costs of $758 and $1,006, respectively) $149,242  $148,994  2022 Notes (net of deferred financing costs of $1,164 and $1,447, respectively)  73,836   73,553  2022 Convertible Notes (net of deferred financing costs of $736 and $916, respectively)  51,352   51,172  Credit Facility (net of deferred financing costs of $0 and $1,165, respectively)  -   (1,165) Management and incentive fees payable  3,586   3,713  Interest and financing fees payable  2,429   2,439  Accounts payable and accrued expenses  11   518   Total liabilities $280,456  $279,224                NET ASSETS     Common stock, par value $0.01, 100,000,000 common shares authorized, 16,266,484 and 16,203,769 common shares issued and outstanding, respectively $163  $162  Additional paid in capital  238,220   237,886  Total distributable loss  (133,328)  (89,935)  Total net assets $105,055  $148,113  Total liabilities and net assets $385,511  $427,337         Net asset value per share $6.46  $9.14           Capitala Finance Corp.       Consolidated Statements of Operations (in thousands, except share and per share data) (unaudited)    For the Three Months Ended June 30, For the Six Months Ended June 30,    2020 2019 2020 2019 INVESTMENT INCOME         Interest and fee income:          Non-control/non-affiliate investments $4,693  $7,541  $9,400  $14,826   Affiliate investments  1,632   2,281   3,311   4,680   Control investments  103   582   206   1,306   Total interest and fee income  6,428   10,404   12,917   20,812  Payment-in-kind interest and dividend income:          Non-control/non-affiliate investments  378   453   714   895   Affiliate investments  188   227   368   376   Control investments  -   44   -   372   Total payment-in-kind interest and dividend income  566   724   1,082   1,643  Dividend income:          Non-control/non-affiliate investments  -   -   -   1,281   Affiliate investments  -   -   25   -   Control investments  -   425   -   450   Total dividend income  -   425   25   1,731  Interest income from cash and cash equivalents  5   37   49   88   Total investment income  6,999   11,590   14,073   24,274             EXPENSES         Interest and financing expenses  4,885   4,228   8,711   8,641  Base management fee  1,666   2,020   3,423   4,138  Incentive fees  -   463   -   1,497  General and administrative expenses  1,057   1,145   2,561   2,129   Expenses before incentive fee waiver  7,608   7,856   14,695   16,405   Incentive fee waiver  -   (288)  -   (288)  Total expenses  7,608   7,568   14,695   16,117              NET INVESTMENT INCOME (LOSS)  (609)  4,022   (622)  8,157             REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS         Net realized gain (loss) on investments:          Non-control/non-affiliate investments  (14,142)  365   (13,174)  (3,544)  Affiliate investments  1,341   2,387   1,341   2,276   Control investments  (484)  (17,829)  (484)  (19,656)  Net realized loss on investments  (13,285)  (15,077)  (12,317)  (20,924) Net unrealized appreciation (depreciation) on investments:          Non-control/non-affiliate investments  16,993   (3,018)  (11,532)  3,021   Affiliate investments  (1,003)  (4,669)  (14,731)  (4,937)  Control investments  1,004   (9,708)  (138)  (13,984)  Net unrealized appreciation (depreciation) on investments  16,994   (17,395)  (26,401)  (15,900)  Net realized and unrealized gain (loss) on investments  3,709   (32,472)  (38,718)  (36,824) Tax provision  -   (694)  -   (628)  Total net realized and unrealized gain (loss) on investments, net of taxes  3,709   (33,166)  (38,718)  (37,452)            NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $3,100  $(29,144) $(39,340) $(29,295)            NET INCREASE (DECREASE) IN NET ASSETS PER SHARE RESULTING FROM OPERATIONS – BASIC AND DILUTED $0.19  $(1.81) $(2.42) $(1.82)            WEIGHTED AVERAGE COMMON STOCK OUTSTANDING – BASIC AND DILUTED  16,266,484   16,096,678   16,243,538   16,079,885             DISTRIBUTIONS PAID PER SHARE $-  $0.25  $0.25  $0.50

  • GlobeNewswire

    Capitala Group Announces New Hires as it Expands its Underwriting and Investor Relations Teams

    CHARLOTTE, N.C., July 30, 2020 (GLOBE NEWSWIRE) -- Capitala Group (“Capitala”), a leading provider of capital to lower middle market companies, announced today it has expanded its underwriting and investor relations teams. Stuart McGoogan is joining as Investor Relations Associate, while Nico Mancuso and Kevin Mansfield will serve on the underwriting team as Associate and Analyst respectively. “We are playing a vital role in assisting the middle-market companies of which we’ve invested best navigate the market uncertainty, and I am extremely proud of the hard work Capitala has done in this regard,” said Joe Alala, Chairman and Chief Executive Officer of Capitala. “To that end, we continue to expand our team and services across our entire organization.”Stuart McGoogan previously held various client service roles at Barings (fka Babson Capital Management) and Vanguard.  Mr. McGoogan graduated with a B.A. degree in Finance from Wofford College.Nico Mancuso served on the Syndicate Desk at SunTrust Robinson Humphrey in the Leveraged Finance group where he executed debt financings and provided advisory services across various industries. Mr. Mancuso graduated from the University of North Carolina at Wilmington with a B.S. in Business Administration with concentrations in Finance and Economics.Kevin Mansfield was a Senior Analyst in Ernst and Young’s Transaction Advisory Services practice and a staff accountant in the Assurance practice. Mr. Mansfield graduated cum laude from the University of South Carolina, where he received a B.S. in Business Administration with a degree in both Accounting and Finance. Mr. Mansfield is a Certified Public Accountant.About Capitala GroupCapitala Group is a $3.0 billion asset management firm that has been providing capital to lower middle market companies throughout North America for twenty years. Since our inception in 1998, Capitala has invested in over 160 companies and seeks to partner with strong management teams to create value and generate superior risk-adjusted returns for our individual and institutional investors. For more information, definitions and details visit our website at www.CapitalaGroup.com.Contacts: Steve Arnall COO | CFO  sarnall@capitalagroup.comKatina Cole Jakubowski Director of Marketing   kjakubowski@capitalagroup.com