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Dec 31, 2021
Horizon Technology Q4 2021 Earnings Report
Horizon Technology's financial performance for Q4 2021, with a net investment income per share of $0.39 and a net asset value per share of $11.56.
Key Takeaways
Horizon Technology Finance Corporation reported a strong fourth quarter in 2021, marked by significant growth in total investment income and net investment income per share. The company's debt portfolio yield remained high, and it maintained a substantial committed backlog, positioning it well for continued growth in 2022.
Total investment income grew by 68% to $16.9 million compared to the same quarter in the previous year.
Net investment income was $8.1 million, or $0.39 per share, compared to $3.9 million, or $0.21 per share, for the same quarter in the previous year.
The company's debt portfolio had a weighted average credit rating of 3.2.
Net asset value was $11.56 per share, compared to $11.02 per share as of December 31, 2020.
Forward Guidance
Horizon Technology Finance is well positioned for continued growth in 2022, driven by strong demand for venture debt, an extensive committed backlog and pipeline, and recent balance sheet enhancements.
Positive Outlook
- Demand for venture debt remains at near-peak levels.
- The company has an extensive committed backlog and pipeline.
- The company recently strengthened its balance sheet and expanded its lending capacity.
- The company is well situated to continue to grow its portfolio.
- The company expects to deliver compelling returns to its shareholders.
Challenges Ahead
- There can be no assurance that any additional lenders will make any commitments under the Key Facility.
- The amendment to the senior secured debt facility extends the investment period to June 2023 and the maturity date to June 2028.
- Borrowings above $100 million will be priced at the three-year USD mid-market swap rate plus 3.00%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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