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Rand Capital(RAND) - 2023 Q3 - Earnings Call Transcript
RANDRand Capital(RAND)2023-11-06 20:08
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Financial Data and Key Metrics Changes - Total investment income increased by 12% for the quarter, driven by sustained growth in interest income from portfolio companies [5][21] - Net investment income per share was 0.31,downfrom0.31, down from 0.39 year-over-year, primarily due to higher expenses related to debt financing [5][26] - Net asset value per share was 23.77,relativelyflatforthequarterbutup623.77, relatively flat for the quarter but up 6% since year-end 2022 [5][28] Business Line Data and Key Metrics Changes - The portfolio consisted of investments with a fair value of nearly 75 million across 30 portfolio businesses, reflecting two new investments totaling 7.8million[11][12]−Theportfoliocomprisedapproximately637.8 million [11][12] - The portfolio comprised approximately 63% in fixed-rate debt investments, with an annualized weighted average yield of 13.45% [12] - Professional services increased to 40% of the total portfolio, while manufacturing and consumer products saw declines [18][19] Market Data and Key Metrics Changes - The company completed two new investments during the quarter, including a 4 million investment in All About People and a 3.8millioninvestmentinFirstCoastMulch[14][15][16]−Thecompanyheldalmost195,000sharesofACV,valuedat3.8 million investment in First Coast Mulch [14][15][16] - The company held almost 195,000 shares of ACV, valued at 15.18 at quarter end, representing approximately 4% of the portfolio's total fair value [13] Company Strategy and Development Direction - The company continues to focus on high-quality debt investments as a cornerstone of its strategy to drive earnings potential and support growing dividends [31] - The management expressed confidence in the deal flow and unique market position to support future dividends [10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the strength and execution of the company's strategy, indicating a positive outlook for future investments [4][34] - The company maintains a strong balance sheet and significant liquidity, with approximately 22millionavailableforfutureinvestments[29]OtherImportantInformation−Totalexpensesforthequarterwereapproximately22 million available for future investments [29] Other Important Information - Total expenses for the quarter were approximately 810,000, up from 499,000intheprioryear,largelyduetoincreasedinterestexpenses[23]−Thecompanypaidaquarterlycashdividendof499,000 in the prior year, largely due to increased interest expenses [23] - The company paid a quarterly cash dividend of 0.25 per share during the third quarter [10] Q&A Session Summary - No specific questions or answers were documented in the provided content [35][36]