Crescent Capital BDC (CCAP) Q2 2024 earnings summary

Executive summary

• Net investment income for Q2 2024 was $21.7 million ($0.59 per share), up from $20.6 million ($0.56 per share) in Q2 2023, driven by higher interest income from rising benchmark rates.

• Net asset value per share rose to $20.30 at June 30, 2024, the highest since June 2022, up from $20.04 at year-end.

• Portfolio fair value reached $1.61 billion, diversified across 183 companies in 20 industries, with 90% in first lien or unitranche first lien investments.

• Regular dividend of $0.42 per share and a supplemental dividend of $0.09 per share declared for Q2 2024; Q3 2024 regular dividend also declared.

• Portfolio remains defensively positioned with strong credit performance and stable NAV profile.

Financial highlights

• Total investment income for Q2 2024 was $49 million, down from $50.4 million in the prior quarter but up year-over-year; net investment income per share decreased sequentially from $0.63 to $0.59.

• GAAP/net income per share for Q2 2024 was $0.55, reflecting net investment income outpacing dividends, offset by net losses.

• Net realized and unrealized losses on investments per share totaled ($0.04) in Q2 2024.

• Stockholders' equity/net assets rose modestly to $752 million.

• Total assets increased to $1.67 billion; debt-to-equity ratio at 1.18x.

Outlook and guidance

• Confident in continued strong portfolio performance and ability to deliver attractive risk-adjusted returns for the remainder of 2024.

• Plan to continue regular and supplemental dividends, with strong coverage and asset coverage ratio at 184%.

• Management continues to focus on disciplined portfolio construction and conservative investment strategy.