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SUNS Reports OK Q1/17

|Includes: Solar Senior Capital (SUNS)

Solar Senior Capital Ltd. (NASDAQ:SUNS) sells at a 7.8% yield - has dividend coverage - has a PWAY of 8.0%. Solar Capital Ltd. (NASDAQ:SLRC) sells at a 7.0% yield - lacks dividend coverage - has a PWAY of 10.2%. Those are a pair of messed up valuations. One too high. One too low.

Earnings Estimates from Yahoo Finance:

  Current Qtr. (Mar 2017) Next Qtr. (Jun 2017) Current Year Next Year
No. of Analysts 5 5 5 3
Avg. Estimate 0.35 0.35 1.42 1.46
Low Estimate 0.35 0.35 1.40 1.43
High Estimate 0.36 0.35 1.43 1.51
Year Ago EPS 0.35 0.36 1.42 1.42
Revenue Estimate Current Qtr. (Mar 2017) Next Qtr. (Jun 2017) Current Year Next Year
No. of Analysts 4 4 4 2
Avg. Estimate 7.82M 8.37M 34.60M 45.25M
Low Estimate 7.27M 7.69M 31.62M 40.50M
High Estimate 8.10M 8.75M 37.00M 50.00M
Year Ago Sales 6.35M 6.68M 27.2M 34.6M

My spreadsheets:

  Q1-17 Q4-16 Q3-16 Q2-16 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 in millions 0.262 0.346 0.633 0.608 4.349 -8.497 -5.580 -0.450 0.201 -0.002 -1.782 -0.475 0.135   -0.684 -1.843 -0.245
Realized & Unrealized Gains/share 0.0163 0.0216 0.0512 0.0527 0.3771 -0.7368 -0.4838 -0.0390 .0177 -.0002 -.1545 -.0414 .0117   -.0593 -.1598 -.0212
  Q1-17 Q4-16 Q3-16 Q2-16 Q1-16 Q4-15 Q3-15 Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13
Total investment income 7.496 7.165 7.001 6.681 6.349 6.148 6.520 6.655 6.143 5.912 5.322 5.134 5.736 5.654
Net investment income 5.649 5.649 4.536 4.066 4.065 4.066 4.085 3.3462 3.876 4.018 3.528 2.4151 3.853 3.644
Investments @ fair value 0.373 0.365 0.328 0.326 0.312 0.306 0.340 0.347 0.345 0.341 0.278 0.266 0.275 0.268
Wt Av Share Count 16.028 16.025 12.359 11.533 11.533 11.533 11.533 11.533 11.533 11.533 11.533 11.533 11.532 11.532
TII/share $0.4677 $0.4471 $0.5665 $0.5793 $0.5505 $0.5331 $0.5653 $0.5770 $0.5326 $0.5126 $0.4615 $0.4452 $0.4974 $0.4902
NII/share $0.3524 $0.3525 $0.3670 $0.3525 $0.3525 $0.3525 $0.3542 $0.29012 $0.3361 $0.3484 $0.3059 $0.20941 $0.3341 $0.3160
NAV/share $16.81 $16.80 $16.78 $16.76 $16.70 $16.33 $17.06 $17.55 $17.65 $17.65 $17.65 $17.85 $18.04 $18.04
Wt Av Yield 8.0% 7.8% 8.2% 8.2% 7.9% 7.9% 7.2% 7.0% 6.9% 7.0% 7.2% 7.4% 7.7% 7.5%
NII/TII ratio 75.4% 78.8% 64.8% 60.9% 64.0% 66.1% 62.6% 51.0% 63.1% 68.0% 66.3% 47.0% 67.2% 64.4%
1 Q2-14 contained a $1 million one time fee for an amendment and extension of the credit facility
2 Q2-15 contained a $0.8 million one time fee for an amendment and extension of the credit facility
  Q1-17 Q4-16 Q3-16 Q2-16 Q1-16 Q4-15 Q3-15 Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14
Debt 86.800 98,300 43,000 141,600 129,100 116,200 146,800 143,400 140,900 143,200 76,400 20,700 56,600
Debt/share 5.4155 6.1342 3.4792 12.2778 11.1940 10.0754 12.7287 12.4339 12.2171 12.4765 6.6245 1.7950 4.9081
Debt/share to NAV 32.22% 36.51% 20.73% 73.26% 67.03% 61.70% 74.61% 70.85% 69.22% 70.35% 37.72% 9.95% 27.11%
Interest expense 844 647 870 913 851 1,314 895 1,160 832 747 556 1,400 437
Interest expense/share 0.0526 0.0404 0.0704 0.0792 0.0738 0.1139 0.0776 0.1006 0.0721 0.0648 0.0482 0.1214 0.0379
Interest expense/TII 11.25% 9.03% 12.43% 13.65% 13.40% 21.37% 13.73% 17.43% 13.54% 12.64% 10.83% 24.40% 7.73%
Annualized Int exp/Debt 3.89% 2.63% 8.09% 2.58% 2.64% 4.52% 2.44% 3.24% 2.36% 2.09% 2.91% 27.05% 3.09%
PWAY - Int exp/Debt 441 bps 517 bps 11 bps 562 bps 526 bps 338 bps 476 bps 376 bps 454 bps 491 bps 429 bps N/A 441 bps
BDCs report debt at the end of the quarter and not a weighted average debt amount - which could vary significantly from the average amount
Q2-14 contained "approximately $1.0 million of non-recurring expenses related to the amendment and extension of our credit facility" till 2019
Q2-15 contained "approximately $0.8 million of non-recurring expenses related to the amendment and extension of our credit facility" till 2020
10-Q: average annualized interest cost for all borrowings for the 6 months ended Q2-16 was 2.54% and the year 2015 was 2.25% exclusive of unused fees
Debt is an ending number - not an average number. The interest expense level sometimes correlates to the ending debt level of the prior quarter

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