Sep 30, 2023

Main Street Capital Q3 2023 Earnings Report

Reported strong third quarter results driven by the strength of its lower middle market and private loan portfolio companies and significant contributions from its asset management business.

Key Takeaways

Main Street Capital Corporation announced its Q3 2023 financial results, featuring a net investment income of $0.99 per share and distributable net investment income of $1.04 per share. The company's net asset value stood at $28.33 per share. The company's performance was highlighted by an 18% return on equity. The company also declared regular monthly dividends totaling $0.705 per share for the fourth quarter of 2023, representing a 6.8% increase from the regular monthly dividends paid in the fourth quarter of 2022.

Net investment income reached $82.2 million, or $0.99 per share.

Distributable net investment income was $86.2 million, or $1.04 per share.

Total investment income amounted to $123.2 million.

Net asset value per share increased to $28.33, a 2.3% increase compared to the previous quarter.

Total Revenue
$129M
Previous year: $98.4M
+31.4%
EPS
$1.04
Previous year: $0.83
+25.3%
Net Asset Value per Share
$17.9
Previous year: $25.9
-31.0%
Middle Market Fair Value
$291M
Previous year: $354M
-18.0%
Middle Market Portfolio Count
27
Previous year: 33
-18.2%
Cash and Equivalents
$77M
Previous year: $61.2M
+26.0%
Total Assets
$4.47B
Previous year: $4.13B
+8.0%

Main Street Capital

Main Street Capital

Main Street Capital Revenue by Segment

Forward Guidance

Based upon this strong performance, our distributable net investment income in the third quarter exceeded the monthly dividends paid to our shareholders by 51% and the total dividends paid to our shareholders by 8%. This performance allowed us to deliver significant value to our shareholders, while still conservatively retaining a meaningful portion of our income and growing our net asset value per share. In addition, our strong third quarter results and favorable outlook for the fourth quarter resulted in the declaration of an increase to our monthly dividends for the first quarter of 2024 and a $0.275 per share supplemental dividend to be paid in December 2023.

Positive Outlook

  • Distributable net investment income in the third quarter exceeded the monthly dividends paid to shareholders by 51%.
  • Total dividends paid to shareholders exceeded distributable net investment income by 8%.
  • The company was able to deliver significant value to its shareholders.
  • The company conservatively retained a meaningful portion of its income.
  • Net asset value per share grew.