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New Mountain Finance Corporation Reports Q1/16

|Includes: New Mountain Finance (NMFC)

NMFC Reports NII of $0.3029/share compared to a Div of $0.34/share
New Mountain Finance Corporation reported for Q1-16 Total Investment Income of $40.976 million or $0.5754/share and 'adjusted' Net Investment Income of $21.567 million or $0.3029/diluted share. The Net Increase in Net Assets Resulting from Operations was $8.051 million or $0.1131/share. NMFC's net asset value per share was $12.87 compared to $13.08 last quarter - a fall of 1.6%. (NII was $0.34/basic share. When I see the de facto 'debt' cost of preferred shares subtracted from TII to calculate NII - then I calculate NII based on basic shares. I did not see a debt cost subtraction done by NMFC - so I calculated NII based on diluted shares.)

Consensus analyst projections from Yahoo Finance:

Earnings Est Current Qtr.
Mar 16
Next Qtr.
Jun 16
Current Year
Dec 16
Next Year
Dec 17
Avg. Estimate 0.35 0.35 1.39 1.40
No. of Analysts 6.00 6.00 6.00 5.00
Low Estimate 0.33 0.33 1.37 1.36
High Estimate 0.35 0.36 1.43 1.44
Year Ago EPS 0.34 0.35 1.39 1.39
Revenue Est Current Qtr.
Mar 16
Next Qtr.
Jun 16
Current Year
Dec 16
Next Year
Dec 17
Avg. Estimate 42.04M 42.70M 171.00M 180.00M
No. of Analysts 4 4 4 3
Low Estimate 40.60M 42.30M 169.80M 170.90M
High Estimate 43.24M 42.94M 173.10M 191.10M
Year Ago Sales 36.54M 37.90M 153.86M 171.00M

My historical context spreadsheets:

Q1-16 Q4-15 Q3-15 Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13 Q3-13 Q2-13 Q1-13

Realized & Unrealized Gains -13.516 -42.548 -10.855 0.011 3.852 -34.865 -13.389 6.373 7.390 3.119 6.664 -6.682 8.298
Realized & Unrealized Gains/share -0.19 -0.66 -0.18   0.07 -0.62 -0.26 0.12 0.16 0.07 0.17 -0.21 0.33

  Q1-16 Q4-15 Q3-15 Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13

Total investment income 40.976 41.967 37.447 37.905 36.536 36.748 34.706 33.708 30.439 26.783
Net investment income 21.567 22.521 20.487 20.253 19.062 25.919 20.800 17.289 16.058 14.826
Adjusted Net investment income 21.567 22.521 20.487 20.253 19.062 19.200 18.100 18.500 17.800 16.400
Investments @ fair value 1.520 1.542 1.478 1.309 1.435 1.455 1.354 1.311 1.180 1.116
Wt Av Share Count 71.211 66.968 66.002 65.313 65.218 57.998 59.290 54.293 47.968 42.933
TII/share $0.5754 $0.6267 $0.5674 $0.5804 $0.5602 $0.65 $0.67 $0.65 $0.65 $0.60
NII/share before incentive fees           $0.46 $0.40 $0.34 $0.34 $0.33
NII/share after incentive fees $0.3029 $0.3363 $0.3104 $0.3101 $0.2922 $0.34 $0.35 $0.36 $0.37 $0.35
NAV/share $12.87 $13.08 $13.73 $13.90 $13.89 $13.83 $14.33 $14.65 $14.53 $14.38
Wt Av Yield 10.4% 10.7% 10.4% 10.8% 10.6% 10.7% 10.7% 10.7% 10.9% 11.0%
Portfolio company Debt/EBITDA x 5.0x 5.0x 4.8x 4.5x 5.0x 4.7x 4.6x 4.8x  

Incentive fees subtracted from NII in the earnings release starting in Q1-15 - Q1 also the first Q with higher diluted shares

As of March 31, 2016, NMFC's NAV was approximately $821.8 million and its portfolio had a fair value of approximately $1,519.9 million in 74 portfolio companies, with a weighted average Yield to Maturity at Cost of approximately 10.4%.

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