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Jun 30, 2021

Prospect Capital Q4 2021 Earnings Report

Prospect Capital announced its Q4 2021 earnings, featuring a net investment income of $0.19 per share and a 5% increase in net asset value per common share. The company declared stable monthly cash distributions for common and preferred shareholders.

Key Takeaways

Prospect Capital Corporation reported a strong Q4 2021 with net investment income of $73.229 million, equating to $0.19 per common share. Net income attributable to common stockholders was $242.421 million, or $0.62 per share. The company's net asset value (NAV) per common share increased to $9.81. Distributions to common shareholders totaled $69.857 million, or $0.18 per share.

Net Investment Income (NII) for Q4 2021 was $73.229 million ($0.19 per share).

Net income attributable to common stockholders was $242.421 million ($0.62 per share).

Net Asset Value (NAV) per common share increased to $9.81.

The company declared monthly cash distributions of $0.06 per share for September and October 2021.

Total Revenue
$157M
Previous year: $145M
+8.3%
EPS
$0.19
Previous year: $0.16
+18.8%
NII per Share
$0.19
Previous year: $0.16
+18.8%
NAV per Share
$9.81
Previous year: $8.18
+19.9%
Net Debt to Equity Ratio
55.9%
Cash and Equivalents
$63.6M
Previous year: $44.6M
+42.7%
Total Assets
$6.3B
Previous year: $5.3B
+18.9%

Prospect Capital

Prospect Capital

Prospect Capital Revenue by Segment

Forward Guidance

Prospect Capital expects to declare November 2021, December 2021, and January 2022 distributions in November 2021.

Positive Outlook

  • Prospect plans to offer $1 billion targeted 5.50% perpetual preferred stock.
  • They recently issued $150 million 5.35% listed perpetual preferred stock.
  • They intend to increase utilization of their cost-efficient revolving credit facility.
  • They plan to retire higher cost liabilities through tender offers and repurchases.
  • They aim to issue lower cost notes with coupons of approximately 2.5% to 4.0%.

Challenges Ahead

  • Unspecified unknowable future events and conditions are highly likely to affect forward-looking statements.
  • Actual developments and results are highly likely to vary materially from any forward-looking statements.
  • The company is subject to regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations.
  • The company is required to comply with regulatory requirements under the 1940 Act.
  • The safe harbor for forward-looking statements does not apply to business development companies.