MidCap Financial Investment (MFIC) Q1 2025 Earnings Call May 13, 2025 08:30 AM ET Speaker0 morning and welcome to the Earnings Conference Call for the period ended 03/31/2025 for MidCap Financial Investment Corporation. At this time, all participants have been placed in a listen only mode. The call will be opened for a question and answer session following the speakers' prepared remarks. I will now turn the call over to Elizabeth Beeson, Investor Relations Manager for MidCap Financial Investment Corporation ...

For the quarter ended March 2025, MidCap Financial Investment (MFIC) reported revenue of $78.7 million, up 15.2% over the same period last year. EPS came in at $0.37, compared to $0.44 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $82.29 million, representing a surprise of -4.37%. The company delivered an EPS surprise of -5.13%, with the consensus EPS estimate being $0.39.While investors scrutinize revenue and earnings changes year-over-year and how they compare wi ...

Unless otherwise noted, information as of March 31, 2025. Confidential and Proprietary - Not for distribution, in whole or in part, without the express written consent of Apollo Global Management, Inc. It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this document. Financial Results for the Quarter Ended March 31, 2025 MidCap Financial Investment Corporation May 12, 2025 Disclaimers, Definitions and Important Notes Forw ...

On May 7, 2025, the Board declared a dividend of $0.38 per share payable on June 26, 2025 to stockholders of record as of June 10, 2025. Mr. Tanner Powell, the Company's Chief Executive Officer stated, "We reported solid first quarter results including a healthy level of earnings, a reduction in non-accruals, and strong portfolio growth. We continued to deploy the investment capacity generated from our recent mergers into assets originated by MidCap Financial, although this was partially offset by ongoing s ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-00646 MIDCAP FINANCIAL INVESTMENT CORPORATION (Exact name of Registrant as specified in its charter) Maryland 52-2439556 (State or other jurisdiction of i ...

Results for the Quarter Ended March 31, 2025 and Other Recent Highlights: Net investment income per share for the quarter was $0.37Net asset value per share as of the end of the quarter was $14.93, compared to $14.98 as of December 31, 2024, a decrease of 0.3%New investment commitments made during the quarter totaled $376 million(1)Gross fundings, excluding revolver fundings(2), totaled $357 million for the quarterNet fundings, including revolvers(2), totaled $170 million for the quarterNet leverage(3) was ...

Company Overview - MidCap Financial Investment (MFIC) shares increased by 11.8% to close at $11.70, following a notable trading volume compared to typical sessions, despite a 15.7% loss over the past four weeks [1] - The company benefits from a strong brand reputation, diversified product portfolio, and established customer relationships, which support premium pricing and customer loyalty [2] Financial Performance - MidCap Financial is expected to report quarterly earnings of $0.39 per share, reflecting an 11.4% decrease year-over-year, while revenues are projected to be $84.27 million, representing a 23.3% increase from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - MidCap Financial is part of the Zacks Financial - Miscellaneous Services industry, where Atlanticus Holdings Corporation (ATLC) also operates, having seen a 13.2% increase in its stock price recently [4] - Atlanticus has a consensus EPS estimate that has increased by 20% over the past month, indicating a positive outlook compared to the previous year [5]

NEW YORK, April 03, 2025 (GLOBE NEWSWIRE) -- MidCap Financial Investment Corporation (NASDAQ: MFIC) (the “Company”) announced today that it will report results for the quarter ended March 31, 2025, after the closing of the Nasdaq Global Select Market on Monday, May 12, 2025. The Company will also host a conference call on Tuesday, May 13, 2025, at 8:30 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (800) 225-9448 approximately 5-10 minutes prior to the ...

Core Viewpoint - MidCap Financial Investment Corporation (NASDAQ: MFIC) reported results that align with expectations for the December quarter, exceeding the paid dividend while maintaining a low leverage ratio of 1.18 [1]. Financial Performance - The company’s results for the December quarter were in line with market expectations, indicating stable financial performance [1]. - The leverage ratio of 1.18 suggests a conservative approach to debt management, which may enhance financial stability [1]. Dividend Safety - During the conference call, concerns regarding the safety of the dividend payout were addressed, indicating that the current earnings are sufficient to cover the dividend [1].

Financial Data and Key Metrics Changes - Net investment income (NII) per share for Q4 2024 was $0.40, with a full-year NII of $1.71, reflecting an annualized return on equity (ROE) of 10.5% for the quarter and 11.2% for the year [8][9] - GAAP net income per share was $0.26 for Q4 and $1.27 for the full year, with NAV per share at $14.98, down $0.12 or approximately 0.8% [9][10] - Total investment income for December was approximately $82.2 million, flat compared to the prior quarter, with net expenses increasing to $45.1 million [44][45] Business Line Data and Key Metrics Changes - New commitments in Q4 totaled $255 million, with a full-year total of approximately $1.06 billion [10][26] - The weighted average spread on new commitments was 546 basis points, up 13 basis points from the previous quarter, while net leverage on new commitments decreased to 4.3 times [28] - Direct origination represented 90% of the total portfolio, up from 88% last quarter, with 98% of the direct origination portfolio being first lien [31][32] Market Data and Key Metrics Changes - MidCap Financial closed approximately $6.6 billion of new commitments during Q4, contributing to a total of $21.3 billion for the year [13][14] - The overall credit quality of the direct origination portfolio remains stable, with a weighted average interest coverage ratio improving to 2.1 times [37][39] - The probability of a recession has declined significantly, with encouraging signs for an increase in sponsor-related M&A activity [22] Company Strategy and Development Direction - The company aims to gradually grow the portfolio and reach a target leverage of approximately 1.4 times in the next couple of quarters [11][50] - The strategy includes reducing investment in the aircraft leasing and servicing business, with a focus on selling assets acquired through mergers [16][20] - The company plans to leverage its affiliation with MidCap Financial to enhance deal sourcing and capitalize on attractive investment opportunities in the middle market [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic backdrop, citing strong consumer spending and capital goods investment, while acknowledging potential near-term impacts from tariffs and government layoffs [21][22] - The company is optimistic about the stabilization of interest rates and the potential for increased M&A activity in the direct lending market [22][23] - Management remains comfortable with the sustainability of the dividend, considering the leverage profile and expected origination pace [88][89] Other Important Information - The company reported a net loss of approximately $13 million for the quarter, with 60% of that loss attributed to positions on non-accrual status at the beginning of the quarter [49] - The company completed a $529 million CLO, which is expected to be an important source of debt financing going forward [51][52] Q&A Session Summary Question: Impact of post-quarter insurance recovery for Merx - Management indicated that recoveries are approximately in line with valuations, leading to a positive outlook for resolution of claims [57] Question: Potential for better recoveries if conditions in Russia and Ukraine improve - Management clarified that recoveries are locked in and are primarily tied to the insurance process, independent of geopolitical conditions [65][66] Question: Increase in spreads and leverage dynamics - Management noted that the increase in spreads was due to commitments to existing borrowers, rather than a general widening of spreads in the market [68][69] Question: Update on non-accrual positions - Management confirmed that there are four non-accruals remaining from the legacy CEF portfolio, with ongoing restructuring efforts [81] Question: Sustainability of the current dividend - Management expressed confidence in the sustainability of the dividend, supported by the current leverage profile and expected origination pace [88][89]