Due to its exposure in energy loans, bad things were projected for PennantPark Investment Corporation. The fall in NAV was not as bad as might be expected. NII still coverage the dividend. but non-accruals are high and growing.
PNNT Reports NII of $0.2909/share compared to a dividend of $0.28
What They Earned PennantPark Investment Corporation reported calendar Q1-16 total investment income of $39.108 million ($0.5461/share). Net investment income was $20.832 million ($0.2909/share). The net increase in net assets from operations was $3.950 million ($0.0551/share) due to $16.882 million in realized and unrealized losses. Net asset value per share was $8.83 compared to $9.02 at the end of Q1-16. "Oil and gas" investments have declined to 5% of the portfolio from 6% in Q4-15. "Energy and utilities" have had an identical decline. (The high point of the combined energy weighting was 16%.) During the three months ended March 31, 2016, PNNT repurchased 0.7 shares of common stock in open market transactions for an aggregate cost (including transaction costs) of $3.7 million - which had a + $0.08/share effect on NAV. "Energy and Utilities" loans were 5% of assets while "Oil and Gas" loans were 4% of assets.
What They Own As of March 31, 2016, PNNT had four companies on non-accrual, representing 7.2% and 2.3% of our overall portfolio on a cost and fair value basis, respectively. Overall, the portfolio had net unrealized depreciation of $181.1 million as of March 31, 2016. PNNT's overall portfolio consisted of 61 companies with an average investment size of $20.2 million, had a weighted average yield on interest bearing debt investments of 11.9% and was invested 37% in senior secured debt, 39% in second lien secured debt, 14% in subordinated debt and 10% in preferred and common equities. As of December 31, 2015, PNNT had three companies on nonaccrual representing 5.4% of the overall portfolil at cost and 1.2% at fair value.
The Yahoo Finance consensus analyst projections:
Earnings Est | Current Qtr. Mar 16 | Next Qtr. Jun 16 | Current Year Sep 16 | Next Year Sep 17 |
---|---|---|---|---|
Avg. Estimate | 0.29 | 0.25 | 1.05 | 1.00 |
No. of Analysts | 10.00 | 10.00 | 10.00 | 8.00 |
Low Estimate | 0.25 | 0.21 | 0.98 | 0.93 |
High Estimate | 0.32 | 0.27 | 1.10 | 1.04 |
Year Ago EPS | 0.29 | 0.28 | 1.10 | 1.05 |
Revenue Est | Current Qtr. Mar 16 | Next Qtr. Jun 16 | Current Year Sep 16 | Next Year Sep 17 |
---|---|---|---|---|
Avg. Estimate | 38.54M | 35.23M | 144.55M | 148.49M |
No. of Analysts | 9 | 9 | 9 | 7 |
Low Estimate | 35.70M | 32.27M | 138.90M | 143.40M |
High Estimate | 41.00M | 36.80M | 148.14M | 156.00M |
Year Ago Sales | 42.66M | 40.64M | 161.63M | 144.55M |
My historical context spreadsheets:
Q1-2016 | Q4-2015 | Q3-2015 | Q2-15 | Q1-15 | Q4-14 | Q3-14 | Q2-14 | Q1-14 | Q4-13 | Q3-13 | Q2-13 | Q1-13 | |
Realized & Unrealized Gains | -16.882 | -57.587 | -18.646 | -15.718 | -14.717 | -43.423 | -21.250 | 18.753 | 20.652 | 21.500 | 5.379 | -3.869 | 12.910 |
Realized & Unrealized Gains/share | -.2357 | -.7917 | -.2483 | -.2102 | -.1960 | -.5783 | -.2830 | .2817 | .3102 | .3230 | .0808 | -.2936 | .2216 |
Q1-2016 | Q4-2015 | Q3-2015 | Q2-15 | Q1-15 | Q4-14 | Q3-14 | Q2-14 | Q1-14 | Q4-13 | |
Total investment income | 39.108 | 35.264 | 39.122 | 40.641 | 42.661 | 39.205 | 40.144 | 35.475 | 37.879 | 34.439 |
Net investment income | 20.832 | 16.831 | 20.031 | 20.654 | 22.096 | 19.477 | 20.148 | 13.196 * | 20.029 | 17.955 |
Investments @ fair value | 1.213 | 1.262 | 1.299 | 1.294 | 1.300 | 1.341 | 1.318 | 1.198 | 1.257 | 1.209 |
Wt Av Share Count | 71.618 | 72.741 | 75.093 | 74.780 | 75.093 | 75.093 | 75.093 | 66.569 | 66.569 | 66.547 |
TII/share | $0.5461 | $0.4848 | $0.5210 | $0.5435 | $0.5681 | $0.5221 | $0.5346 | $0.5329 | $0.5690 | $0.5175 |
NII/share | $0.2909 | $0.2314 | $0.2667 | $0.2762 | $0.2942 | $0.2594 | $0.2683 | $0.1982 * | $0.3009 | $0.2704 |
NAV/share | $8.83 | $9.02 | $9.82 | $10.04 | $10.25 | $10.43 | $11.03 | $11.33 | $11.13 | $10.80 |
Weighted Average Yield | 11.9% | 12.2% | 12.1% | 12.4% | 12.4% | 12.5% | 12.5% | 12.3% | 12.7% | 13.2% |
PNNT had $3.85 million ($0.0578/share) in debt issuance costs in Q2-14 |