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Jun 30, 2020

PennantPark Q3 2020 Earnings Report

Announced financial results for the third fiscal quarter ended June 30, 2020.

Key Takeaways

PennantPark Investment Corporation reported a 7% increase in adjusted NAV, reduced leverage, and increased liquidity. They also announced the formation of PSLF, a joint venture with Pantheon.

Portfolio totaled $1,333.3 million as of June 30, 2020.

Invested $11.7 million in one new and 12 existing portfolio companies with a weighted average yield on debt investments of 6.8% for the three months ended June 30, 2020.

Investment income for the three months ended June 30, 2020 was $25.4 million.

Net investment income totaled $11.0 million, or $0.16 per share, for the three months ended June 30, 2020.

Total Revenue
$25.4M
Previous year: $28.1M
-9.6%
EPS
$0.16
Previous year: $0.17
-5.9%
Weighted average yield
8.7%
Cash and Equivalents
$51.6M

PennantPark

PennantPark

PennantPark Revenue by Segment

Forward Guidance

The COVID-19 pandemic is expected to continue to have a material adverse impact on future net investment income, the fair value of portfolio investments, and the results of operations and financial condition of portfolio companies.

Challenges Ahead

  • COVID-19 pandemic will continue to have a material adverse impact on future net investment income.
  • COVID-19 pandemic will continue to have a material adverse impact on the fair value of our portfolio investments.
  • COVID-19 pandemic will continue to have a material adverse impact on the results of operations of our portfolio companies.
  • COVID-19 pandemic will continue to have a material adverse impact on the financial condition of our portfolio companies.
  • Significant reduction of our net asset value as of June 30, 2020 as compared to our net asset value as of September 30, 2019.