BlackRock Capital punished after earnings miss, NAV falls

• Q1 net investment income of $17.5M or $0.24 per share fell from $21.7M and $0.29 in Q4, and missed estimates for $0.27. DIstribution is $0.21.
• Net asset value slipped to $9.46 per share from $10.17. A year ago it was $10.58. The current price is $8.80. The decline in NAV plus putting money to work led to a rise in the net leverage ratio to 0.63x from 0.47x. A year ago, it was 0.53x.
• Since BlackRock began managing the company about one year ago, about $323M has been put to work, representing nearly 30% of total investments, and the company expects to add staff in near term, while looking for spots to get out of legacy investments.
• CEO Steven Sterling notes his disappointment with a number of legacy investments that will likely soon need restructuring and were responsible for the decline in NAV (three were placed on non-accrual during Q).
• BKCC -7.4%
• Previously: BlackRock Kelso Capital misses by $0.03, misses on total investment income (April 27)