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Of the 25 BDCs that I follow, 9 reported results last week and this article covers some of the highlights for each including earnings, changes to dividends, net asset values, investment class mixes, debt to equity ratios, analyst recommendations, EPS projections, and pricing multiples.

(click to enlarge)

BDCs that reported last week:

  • American Capital (NASDAQ:ACAS)
  • MCG Capital (NASDAQ:MCGC)
  • Solar Capital (NASDAQ:SLRC)
  • Solar Senior Capital (NASDAQ:SUNS)
  • Gladstone Capital (NASDAQ:GLAD)
  • Medley Capital (NYSE:MCC)
  • Fidus Investment (NASDAQ:FDUS)
  • BlackRock Kelso Capital (NASDAQ:BKCC)
  • Hercules Technology Growth Capital (NYSE:HTGC)

Earnings

  • Beat: HTGC, GLAD
  • In-Line: MCC, MCGC, BKCC
  • Missed: ACAS, SLRC, SUNS, FDUS

Dividend coverage

  • Covered dividends (or almost): MCC, FDUS, HTGC, GLAD, BKCC
  • Did not cover dividends: SLRC, SUNS, and MCGC
  • MCC and HTGC raised dividends. SLRC reduced dividends

Net asset value per share:

  • Increased: FDUS by 4%, ACAS by 1%, HTGC by 1%
  • Same: MCGC
  • Decreased: GLAD by 3%, SLRC by 3%, BKCC by 1%, MCC by 1%, SUNS by 1%

Investment classes:

  • Safer investment mix: MCGC
  • Similar investment mix: FDUS, MCC, GLAD, HTGC, SLRC, SUNS
  • Riskier investment mix: ACAS, BKCC

Debt to equity and interest coverage:

  • Improved: BKCC had static debt levels but improved interest coverage from income, FDUS had slightly better debt levels and interest coverage from income, GLAD had higher debt levels but improved coverage from income
  • Same: HTGC
  • Worse: ACAS reduced debt levels but interest coverage from income was also reduced, SLRC had higher debt levels and less interest coverage from income, MCC had similar debt levels but less interest coverage from income, MCGC had similar debt levels but reduced interest coverage from income, SUNS had higher debt levels but adequate interest coverage from income

Analyst recommendations:

  • Upgraded: none
  • Same: FDUS, MCC HTGC, GLAD, MCGC, and SUNS
  • Downgraded: SLRC, ACAS, and BKCC

EPS projections:

  • Increased: MCC, HTGC, GLAD,
  • Same: FDUS, BKCC, MCGC
  • Decreased: ACAS, SLRC, SUNS

Risk levels:

Decreased:

  • FDUS due to adequate dividend coverage, 4% increase in NAV per share, improved debt levels and interest coverage from income
  • BKCC due to in-line EPS, adequate dividend coverage, and increased interest expense coverage from income.
  • HTGC due to beating EPS projections, adequate dividend coverage, increased NAV per share, and increased EPS projections.
  • GLAD due to beating EPS projections, adequate dividend coverage, increased interest coverage from income, and increased EPS projections.
  • MCGC due to safer investment class mix.

Same:

  • MCC due to in-line EPS, adequate dividend coverage, and static investment class mix.
  • SUNS

Increased:

  • ACAS due to missed earnings, slower NAV per share growth, riskier investment mix, reduced interest coverage from income, reduced analyst ratings and EPS projections.
  • SLRC due to missed earnings, inadequate coverage of dividends from income, decrease in NAV per share, has higher debt levels and less interest coverage from income, reduced analyst ratings and EPS projections.

Investors should only use this information as a starting point for due diligence. See the following for more information:

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Source: BDC Earnings Summary Q2 2013: Part 1