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TSLX Has Great Q2-15

|Includes: TPG Specialty Lending (TSLX)

the projections from Yahoo Finance:

Earnings Est Current Qtr.
Jun 15
Next Qtr.
Sep 15
Current Year
Dec 15
Next Year
Dec 16
Avg. Estimate 0.41 0.41 1.63 1.69
No. of Analysts 8.00 8.00 8.00 8.00
Low Estimate 0.40 0.39 1.60 1.65
High Estimate 0.42 0.42 1.64 1.71
Year Ago EPS 0.55 0.43 2.07 1.63
 
Revenue Est Current Qtr.
Jun 15
Next Qtr.
Sep 15
Current Year
Dec 15
Next Year
Dec 16
Avg. Estimate 39.31M 41.61M 158.43M 181.72M
No. of Analysts 4 4 5 5
Low Estimate 38.42M 40.36M 146.00M 172.42M
High Estimate 40.20M 43.44M 166.89M 188.17M

the actual numbers

  Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13 Q3-13 Q2-13

Total investment income 45.352 37.730 45.778 38.404 45.657 33.481 27.569 23.298 20.940
Net investment income 25.020 20.787 30.684 23.116 29.433 21.242 16.993 14.585 12.817
Investments @ fair value 1.398 1.331 1.264 1.233 1.129 1.196 1.016 0.889 0.787
Wt Av Share Count 53.988 53.902 53.798 53.493 53.120 41.539 36.844 34.818 34.270
TII/share $0.8400 $0.7000 $0.8509 $0.7179 $0.8595 $0.8060 $0.7483 $0.6691 $0.6110
NII/share $0.4634 $0.3856 $0.5704 $0.4321 $0.5543 $0.5114 $0.4612 $0.4189 $0.3740
NAV/share $15.84 $15.60 $15.53 $15.66 $15.70 $15.51 $15.52 $15.35 $15.29
Wt Av Yield @ cost 10.4% 10.3% 10.3% 10.5% 10.3% 10.2% 10.4% 10.4% 10.4%
NII/TII 55.2% 55.1% 67.0% 60.2% 64.5% 63.4% 61.6% 62.6% 61.2%

parsing TII 'the right way"

  Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13 Q3-13 Q2-13

Non-controlled interest 43.175 32.879 41.749 33.728 44.425 31.118 x 22.816 19.861
Non-controlled other 0.629 3.377 2.653 3.301 0.845 2.363 x 0.482 1.078
Controlled interest 1.493 1.417 1.313 1.312 0.369 0.000 x 0.000 0.000
Controlled other .055 .057 0.062 0.063 0.018 0.000 x 0.000 0.0
Total investment income 45.352 37.730 45.778 38.404 45.657 33.481 27.569 23.298 20.940

Total other 0.684 3.434 2.715 3.364 0.863 2.363 x 0.482 1.078

  Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13 Q3-13 Q2-13

Prepayment Fees 1.600 1.700 6.700 2.300 11.000 1.700 x 0.500 1.000
Accelerated Amortization 8.100 0.300 4.800 3.200 3.300 1.200 x 0.900 0.200
Total 'other' income 0.684 3.434 2.715 3.364 0.863 2.363 x 0.482 1.078
Sum 10.384 5.434 14.215 8.864 15.163 4.363 x 1.882 2.278
Total investment income 45.352 37.730 45.778 38.404 45.657 33.481 27.569 23.298 20.940
Other percent 22.9% 14.4% 31.1% 23.1% 33.2% 13.0% x 8.1% 10.9%

Why did TSLX significantly out perform the projections? Look at the guidance provided last quarter:

Based on our current asset level yields, and as we continue to lay into our target leverage ratio, supported by our pipeline of new investment opportunities, our target return on equity is 10.5% to 11.5% over the intermediate term. This corresponds to $1.53 to $1.79 per share on a net investment income basis, which compares to our annualized dividend of $1.56 per share.

Summation: TSLX did a lot better than guidance because 'recurring one time events" related to deal volume produced a good portion of income.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.