On November 2, 2023, New Mountain Finance Corp (NMFC, Financial) announced its financial results for the quarter ended September 30, 2023. The company reported a net investment income (NII) of $0.40 per weighted average share, marking a 25% increase YoY. The net asset value (NAV) per share stood at $13.06. The board of directors declared a Q4 regular distribution of $0.32 per share and a supplemental distribution of $0.04 per share, payable on December 29, 2023.
Financial Highlights
As of September 30, 2023, NMFC's investment portfolio was valued at $3,128,403 thousand, with total assets amounting to $3,279,586 thousand. The total statutory debt was $1,602,672 thousand, and the NAV was $1,325,018 thousand. The company's statutory debt to equity ratio was 1.21x.
Management Commentary
“Our third quarter results reflect another successful quarter for 2023 with year-over-year net investment income per share growth of approximately 25%. We believe our credit performance remains strong even in a more difficult market environment,” said Steven B. Klinsky, NMFC Chairman.
Portfolio and Investment Activity
As of September 30, 2023, the company's NAV was $1,325.0 million and its portfolio had a fair value of $3,128.4 million in 110 portfolio companies, with a weighted average YTM at Cost of approximately 11.8%. For the three months ended September 30, 2023, the company generated $15.6 million of originations and cash repayments of $75.4 million.
Consolidated Results of Operations
The company's total investment income for the three months ended September 30, 2023 and 2022 was $94.1 million and $78.1 million, respectively. The company's total net expenses, after income tax expense, for the three months ended September 30, 2023 and 2022 were $53.7 million and $45.6 million, respectively. The company's NII for the three months ended September 30, 2023 and 2022 was $40.4 million and $32.5 million, respectively.
Liquidity and Capital Resources
As of September 30, 2023, the company had cash and cash equivalents of $83.3 million and total statutory debt outstanding of $1,602.7 million. The company's statutory debt to equity was 1.21x as of September 30, 2023.
Portfolio and Asset Quality
The company monitors the performance and financial trends of its portfolio companies on a quarterly basis. As of September 30, 2023, all investments in the company’s portfolio had a Green Risk Rating, with the exception of eight portfolio companies that had a Yellow Risk Rating, six portfolio companies that had an Orange Risk Rating and three portfolio companies that had a Red Risk Rating.
Recent Developments
On October 24, 2023, the company’s board of directors declared a regular fourth quarter 2023 distribution of $0.32 per share and a supplemental distribution related to third quarter earnings of $0.04 per share, each payable on December 29, 2023 to holders of record as of December 15, 2023.
Explore the complete 8-K earnings release (here) from New Mountain Finance Corp for further details.
