COLUMBUS, Ga., Nov. 9, 2021 /PRNewswire/ — Aflac Included (NYSE: AFL) announced currently that it will webcast its yearly Money Analysts Briefing on November 16, 2021 at 8:00 a.m. (ET). Aflac’s administration will focus on its operations in Japan and the United States, together with cash administration techniques and economic outlook, like with regard to the ongoing COVID-19 pandemic.
The displays will be out there by way of webcast, and you have to sign up below prior to the party. Presentation slides will be posted on investors.aflac.com soon after the sector closes on November 15, 2021, and an archive of the presentations will also be readily available on investors.aflac.com for two weeks pursuing the conclusion of the webcast.
ABOUT AFLAC Incorporated Aflac Incorporated (NYSE: AFL) is a Fortune 500 corporation supporting supply defense to more than 50 million men and women by way of its subsidiaries in Japan and the U.S., wherever it is a top supplemental insurer by paying out income rapid when policyholders get unwell or injured. For a lot more than 6 many years, insurance policies insurance policies of Aflac Incorporated’s subsidiaries have offered policyholders the chance to aim on recovery, not fiscal stress. Aflac Life Coverage Japan is the top supplier of health-related and cancer insurance plan in Japan exactly where it insures 1 in 4 homes. For 15 consecutive many years, Aflac Included has been acknowledged by Ethisphere as a person of the World’s Most Moral Businesses. In 2021, Fortune integrated Aflac Incorporated on its listing of World’s Most Admired Companies for the 20th time, and Bloomberg added Aflac Integrated to its Gender-Equality Index, which tracks the monetary effectiveness of general public companies committed to supporting gender equality as a result of plan improvement, illustration and transparency, for the second consecutive calendar year. To uncover out how to get assist with expenses health and fitness insurance policies would not address, get to know us at aflac.com. Traders might study additional about Aflac Incorporated and its commitment to ESG and social obligation at buyers.aflac.com and esg.aflac.com.
Ahead-Searching Details The Non-public Securities Litigation Reform Act of 1995 supplies a “safe and sound harbor” to really encourage organizations to present possible facts, so long as those informational statements are determined as forward-looking and are accompanied by significant cautionary statements identifying vital aspects that could induce precise results to differ materially from those people bundled in the forward-seeking statements. The business wants to choose gain of these provisions. This document contains cautionary statements identifying important aspects that could result in genuine outcomes to vary materially from those people projected herein, and in any other statements created by company officials in communications with the financial local community and contained in paperwork filed with the Securities and Exchange Fee (SEC). Ahead-hunting statements are not dependent on historic data and relate to future operations, methods, economical benefits or other developments. Moreover, ahead-seeking data is matter to numerous assumptions, pitfalls and uncertainties. In unique, statements containing words these types of as “assume,” “foresee,” “feel,” “goal,” “objective,” “may perhaps,” “need to,” “estimate,” “intends,” “assignments,” “will,” “assumes,” “possible,” “target,” “outlook” or very similar phrases as effectively as precise projections of upcoming effects, frequently qualify as ahead-seeking. Aflac undertakes no obligation to update this kind of forward-wanting statements.
The business cautions audience that the adhering to components, in addition to other components talked about from time to time, could trigger true benefits to vary materially from these contemplated by the forward-wanting statements:
tough situations in world money markets and the financial system, such as these brought on by COVID-19
defaults and credit score downgrades of investments
exposure to substantial curiosity level possibility
focus of business enterprise in Japan
minimal availability of satisfactory yen-denominated investments
foreign forex fluctuations in the yen/dollar trade price
differing judgments utilized to financial investment valuations
important valuation judgments in resolve of anticipated credit losses recorded on the Firm’s investments
decreases in the Company’s economic power or debt rankings
decline in creditworthiness of other money institutions
concentration of the Firm’s investments in any particular one-issuer or sector
the effects of COVID-19 and its variants (both of those regarded and emerging), and any resulting financial outcomes and govt interventions, on the Firm’s business and economic results
capability to draw in and keep competent product sales associates, brokers, staff members, and distribution companions
deviations in precise experience from pricing and reserving assumptions
means to carry on to establish and carry out enhancements in facts technologies methods
interruption in telecommunication, info technologies and other operational devices, or a failure to maintain the protection, confidentiality or privateness of delicate details residing on this kind of systems
subsidiaries’ capacity to fork out dividends to the Father or mother Organization
inherent restrictions to danger administration policies and techniques
the level of revenue of Aflac Japan items in the Japan Submit channel
tax charges relevant to the Company may possibly modify
failure to comply with constraints on policyholder privacy and details stability
comprehensive regulation and changes in law or regulation by governmental authorities
competitive natural environment and means to foresee and reply to market trends
catastrophic occasions, such as, but not minimal to, as a consequence of local weather modify, epidemics, pandemics (this sort of as the coronavirus COVID-19), tornadoes, hurricanes, earthquakes, tsunamis, war or other navy action, terrorism or other functions of violence, and hurt incidental to such functions
capability to safeguard the Aflac brand and the Firm’s name
skill to efficiently take care of essential executive succession
improvements in accounting specifications
amount and consequence of litigation
allegations or determinations of employee misclassification in the United States
(PRNewsfoto/Aflac Integrated)
Analyst and investor contact – David A. Younger, 706.596.3264 or 800.235.2667 or dyoung@aflac.com
Media get in touch with – Ines Gutzmer, 762.207.7601 or igutzmer@aflac.com
IGM Monetary Inc. (TSE:IGM) will shell out a dividend of CA$.56 on the 31st of January. This suggests the annual payment is 4.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the present stock selling price, which is previously mentioned the normal for the sector.
IGM Financial’s Earnings Quickly Cover the Distributions
Whilst it is good to have a solid dividend produce, we really should also contemplate whether the payment is sustainable. Primarily based on the previous payment, IGM Economic was pretty comfortably earning sufficient to cover the dividend. This means that a substantial portion of its earnings are being retained to improve the enterprise.
More than the following calendar year, EPS is forecast to broaden by 9.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. Assuming the dividend carries on together modern developments, we feel the payout ratio could be 53{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} by subsequent year, which is in a fairly sustainable assortment.
historic-dividend
IGM Fiscal Has A Stable Track Document
The organization has been spending a dividend for a very long time, and it has been pretty secure which provides us self-assurance in the upcoming dividend probable. Due to the fact 2011, the initial yearly payment was CA$2.05, compared to the most new total-12 months payment of CA$2.25. Dividend payments have been expanding, but extremely little by little more than the time period. Though the regularity in the dividend payments is amazing, we think the somewhat gradual price of advancement is considerably less eye-catching.
IGM Fiscal Could Improve Its Dividend
Investors could be attracted to the stock based on the high quality of its payment background. IGM Economic has witnessed EPS increasing for the final 5 decades, at 6.{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for every annum. Because earnings per share is rising at an suitable rate, and the payout plan is well balanced, we think the enterprise is positioning itself properly to increase earnings and dividends in the future.
IGM Fiscal Appears to be Like A Terrific Dividend Inventory
In general, we think that this is a great income expense, and we consider that maintaining the dividend this calendar year may have been a conservative choice. Earnings are conveniently covering distributions, and the business is generating a lot of hard cash. Getting this all into thing to consider, this appears like it could be a fantastic dividend chance.
It really is essential to be aware that organizations getting a constant dividend policy will make greater investor self confidence than individuals owning an erratic a single. Even so, there are other things to contemplate for buyers when analysing stock general performance. Earnings development typically bodes effectively for the upcoming price of enterprise dividend payments. See if the 7 IGM Economical analysts we observe are forecasting ongoing progress with our absolutely freereport on analyst estimates for the business. Wanting for more substantial-yielding dividend ideas? Test our curated list of robust dividend payers.
This article by Merely Wall St is common in character. We deliver commentary dependent on historical facts and analyst forecasts only utilizing an unbiased methodology and our articles are not meant to be money guidance. It does not constitute a recommendation to invest in or offer any inventory, and does not get account of your targets, or your financial problem. We purpose to bring you extended-phrase centered evaluation pushed by elementary data. Be aware that our investigation may possibly not issue in the most recent price tag-sensitive corporation bulletins or qualitative product. Simply Wall St has no situation in any stocks mentioned.
Have feedback on this report? Involved about the content material?Get in touch with us right. Alternatively, email editorial-group (at) simplywallst.com.
Problem: I have an difficulty of inadequate money administration, and I am trying to get some assistance if that is probable. I am searching forward to your reaction.
– Shawn
Money ADVISER: You have taken two really crucial measures in the procedure of setting up financial steadiness in your lifestyle: acknowledging that there is an problem of inadequate fiscal management and searching for tips on how to correct the dilemma.
I am not certain what brought you to the place of recognising the difficulty as there are many purple flags you could have noticed. I remember being questioned some time back by an employer to support some employees to strengthen their economic administration.
Management arrived to the summary that the workforce had been not managing their funds well due to the fact they had been inquiring often for income improvements, shelling out a sizeable portion of their earnings by income deduction to assistance loans or the two.
There are numerous other signs that show that you have a fiscal-administration dilemma. In this article are some illustrations:
• You are using an growing total of your money to repay personal debt
• You are depending on overdraft services to pay back recurring bills
• You are utilizing hard cash developments on your credit score card to pay back other charges
• You are likely to make only the minimum amount payments on your credit rating card
• You are borrowing to shell out fundamental expenses – utility costs, for instance
• You are shelling out payments late or not at all
• You are borrowing from Peter to fork out Paul
• You have regular dollars flow difficulties
• The personal debt collectors are contacting you
• Your surplus cash are not currently being applied efficiently to generate and
• You are taking too substantially possibility with your cash.
Some may perhaps argue that personalized economical problems are because of to individuals not earning enough – even that they are underpaid. The truth of the matter, nevertheless, is that there has to be a harmony concerning money and expenditure irrespective of the circumstance. If there is a deficit, in particular if it retains recurring, there is a dollars-management challenge.
If there is this sort of a difficulty, priority issues like saving, investing, and the schooling of the small children may possibly be neglected. The constant worrying that this scenario often leads to could lead to overall health issues, bad overall performance at do the job, poor inter-particular relationships and severe household pressure, possibly even the split-up of people.
I can only be normal in my response to you, not figuring out the exact nature of your problem and what has brought on it, but hope that the options you seek out will emerge from my reaction.
The traditional reaction is to say make a price range – a realistic one particular that aligns shelling out with present-day earnings. This is important, for a lot of make a finances, but it does not replicate meaningfully how they receive and commit dollars.
Others make a budget but do not adhere to it. It is just a meaningless work out due to the fact they do not keep track of their shelling out, they do not create their priorities, they invest in impulsively, and they borrow over and above their capacity to pay out, for illustration.
A spending budget is a expending system that need to demonstrate how revenue is attained and used, having into account expenses that are periodic, not just common, and it can make it less difficult to workout regulate.
The finances need to stability from the starting, that is, when it is designed. Or else, it is a squander of time. Hold it in line by monitoring your spending, and be individual. Steer clear of rushing to acquire much too a lot way too quickly. What you can afford to pay for is what you can afford to pay for.
In some cases there is the argument that revenue complications occur thanks to emergencies. Each and every effort must be manufactured to build up a fund for emergencies, and this can be hard for some offered the degree of their cash flow.
If you are in personal debt, achieve out to your lenders and see if they are eager to access an lodging with you about how you can honour your debt. Investigate the likelihood of debt consolidation, which might allow for you to have just one personal debt above a longer time.
Place away your credit rating card if you have just one and it is contributing to your dilemma. As credit card credit card debt is extremely highly-priced, make it your precedence to do away with it. If you have to make severe adjustments to how you live, so be it.
If you have an asset, such as a vehicle, which you can’t afford, promote it. In actuality, it could make feeling to sell belongings to lower personal debt if need to have be.
Very good monetary administration involves that you use your money resources sensibly. So, set your money in risk-free establishments, use your surplus cash to generate, commit properly, diversify, get assets that are of great quality and keep them well.
Your initially workout is this: document your money, all your fees, your money owed and commitments. Set up your priorities and develop a prepared prepare to repair service your economical problem step-by-move, and adhere to it slavishly.
All the very best.
– Oran A. Corridor, writer of ‘Understanding Investments’ and principal creator of ‘The Handbook of Particular Monetary Planning’, delivers own economical organizing assistance and counsel.finviser.jm@gmail.com
FRANKFORT, Ky. (AP) — A report by Kentucky’s Council on Postsecondary Training has observed that weak fiscal management by Kentucky Point out University leadership in new years has resulted in major economical losses, Gov. Andy Beshear explained Friday.
The report also recommended that the institution receive $23 million in exclusive appropriations from the state spending budget to include current spending plan shortfalls.
The Democratic governor ordered the evaluation of Kentucky’s only general public historically Black college right after the university’s president resigned in August. The college is presently below point out oversight.
“When I read about KSU’s money predicament, I requested for a entire, unbiased and clear accounting of the university’s funds, and nowadays we are releasing the findings of that evaluation,” Beshear reported in a assertion. “We are dedicated to KSU and, as a single of two Historically Black Schools and Universities in Kentucky, KSU ought to be set on a path to balance so it is equipped to go on supplying a large-high-quality education for generations to appear.”
The report, which contains an advancement strategy, was demanded by the governor’s executive buy for the university to be regarded for further funding.
KSU officers informed a legislative committee in September that the college will need to have crisis funding to continue to be open up via the conclusion of the academic year. They also documented that the faculty has a shortfall that consists of $15.5 million from past year’s spending plan, as very well as a $7 million shortfall for this year’s spending plan.
“We are self-confident we’re likely to be capable to make it to January. We think we can make it by means of April,” KSU’s vice president for finance, Gregory Hurry, informed lawmakers.
While KSU documented previously this yr that it been given beneficial final results from its annual unbiased monetary audit, the councils’ report uncovered proof of very poor fiscal management by college leadership resulting in economic losses starting in 2018-19.
For occasion, hard cash move as reported on the audited economical statements was fairly stable in 2016 and 2017, at $19.9 and $18.7 million, respectively, right before declining to $14. million in fiscal yr 2018. Then, in fiscal years 2019 and 2020, funds flows declined to around $2 million.
“The decline in income reserves among 2016 and 2020 resulted from working deficits totaling $35 million above the similar period,” the report reported.
The council’s report also outlines “several inappropriate techniques” employed by college leadership to make payroll obligations. KSU unsuccessful to fork out distributors in a well timed fashion and obtain pupil personal debt owed to the college. Employees also indicated that they were being advised to “not remedy their phones” when distributors called, and “that they ended up threatened with termination if they disclosed that the university did not have ample funds for its obligations.”
In addition to the $23 million to go over the fiscal calendar year 2021-22, the university also requests $1 million for every 12 months till 2024. At a council assembly Friday, President Aaron Thompson said the cash will support stabilize KSU into the upcoming.
“Kentucky Point out University is vitally vital to the landscape of bigger education in Kentucky, and to our pupils, our workforce and our economic climate. This appropriation request supports the Council’s motivation and our operate that it not only survives, but thrives,” he stated.
Kentucky’s Standard Assembly will look at the condition budget in the upcoming typical legislative session, which begins in January.
___
Hudspeth Blackburn is a corps member for the Affiliated Push/Report for The united states Statehouse Information Initiative. Report for The usa is a nonprofit national company application that spots journalists in community newsrooms to report on undercovered challenges.
New integration empowers CommunityAmerica’s 280,000+ credit union members with obtain to FusionIQ’s digital investing system through a solitary on the net banking portal
LENEXA, Kan., Nov. 4, 2021 /PRNewswire/ — Copper Economic, the credit rating union service business (CUSO) furnishing financial and operational options for CommunityAmerica Credit Union and other credit union companions, announces right now that it has entered into a partnership with FusionIQ, an innovative fintech business presenting a digital expenditure platform.
This integration carefully follows Copper Financial’s announcement previously this year that they have partnered with Apex Fintech Solutions LLC (Apex) to present a additional robust and extensive investing expertise for advisors and credit rating union customers.
By leveraging FusionIQ’s unified system in conjunction with Apex’s premier electronic clearing and custody capabilities, Copper Economic will empower its credit union companions with the skill to give electronic account opening and streamlined investing choices to all members, accessible correct from their online banking portal.
“Our credit rating union partners are observing a considerable increase in the quantity of outgoing ACH transactions to fintech organizations as the pandemic has brought on members to count on digital choices,” spelled out Justin Steitz, Copper Financial’s Chief Working Officer. “It is more significant than at any time for credit score unions to prioritize member retention by offering entry to digital investing.”
In FusionIQ, Copper Money saw a reflection of its personal mission to provide the underserved and democratize investing for everyone, as properly as a legitimate revolutionary in the wealth management place.
“No a single else is executing what FusionIQ is performing,” mentioned Steitz. “The twin route they’ve developed makes it possible for traders to embark on an advisor guided or self-directed investment decision journey, which empowers CommunityAmerica and our credit history union associates to compete with both equally robo advisors and cellular buying and selling applications. We see it as the up coming move in offering investors the equipment and the autonomy they want to manage their own economic life, but with the selection for expert assistance.”
Credit union members will be able to access custom made, professionally managed designs furthermore countless numbers of FusionIQ’s expenditure choices including stocks, ETFs and mutual funds, as well as Copper Financial’s ESG approaches.
Coupled with presently-built-in Apex capabilities, the freshly shaped partnership will supply a completely electronic, finish-to-conclusion approach for onboarding, account opening, funding and investing by means of solitary signal-on from a credit union’s online banking portal to FusionIQ’s system.
When the integration is finalized, FusionIQ’s revolutionary, barrier-cost-free approach to investing will come to be offered to CommunityAmerica’s 280,000+ associates.
“We are thrilled about the possibility to perform with Copper Economical,” claimed Mark Healy, FusionIQ’s Chief Government Officer. “This partnership represents a powerful new channel for FusionIQ to continue our mission of providing all investors with the friction-totally free digital engineering they need to have to obtain the markets and accumulate prosperity. Copper Financial’s financial investment in credit score unions and their users aligns perfectly with our very own determination to making the solutions advisors and investors want to prosper.”
About Copper Monetary Copper Economic (“CuFi”) is an SEC registered financial commitment advisor, FINRA registered Broker-Dealer and state registered insurance company supplying a breadth of financial investment and money setting up expert services to credit union associates throughout the place. As a wholly-owned subsidiary of CommunityAmerica Credit score Union, we understand the relevance of conference your members’ unique demands wherever they are in their economic journey. Our fully digital experience and most effective-in-class technological innovation system permits members obtain to their accounts from any where at any time, and guarantees the advisor and member have a lot more time to aim on what matters – the path to financial peace of mind. Also, we are the only credit rating union-owned Broker-Seller that gives specific desires scheduling for families, even further assisting credit score unions in their mission of serving all their members’ needs. To discover a lot more about CuFi, check out cu.economical.
About FusionIQ FusionIQ is a preeminent software–as-a-service (SaaS) firm, that delivers an ecommerce workstation to empower financial institutions, credit unions, RIAs, broker dealers, and wealth managers of all measurements with almost everything they will need to make a revolutionary digital prosperity investing working experience for their stop retail clients. Via possibly a white label instance with a headless API infrastructure or a absolutely custom made option, FusionIQ presents money providers firms with exclusive organization-grade operation that combines company, technological innovation, and compliance logic in every single deployment. Some of the premier worldwide money services manufacturers lover with FusionIQ as their reliable, progressive, and participating electronic wealth system solution. For additional info, be sure to pay a visit to fusioniq.io.
Media Contacts:
Amanda Turk for CommunityAmerica aturk@cacu.com 913.905.8254
Kelly Waltrich for FusionIQ kelly@growintentionally.com 610.304.6538
Reports Net Investment Income of $0.31 per Share, Exceeding Previous Guidance
Announces a Permanent Decrease in the Base Management Fee from 1.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 1.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}
Extends Previously Announced Dividend Protection Program
NEW YORK, November 03, 2021–(BUSINESS WIRE)–New Mountain Finance Corporation (NASDAQ: NMFC) (the “Company”, “we”, “us” or “our”) today announced its financial results for the quarter ended September 30, 2021 and reported third quarter net investment income of $0.31 per weighted average share. At September 30, 2021, net asset value (“NAV”) per share was $13.26, compared to $13.33 at June 30, 2021. The Company also announced that its board of directors declared a fourth quarter distribution of $0.30 per share, which will be payable on December 30, 2021 to holders of record as of December 16, 2021. For additional details related to the quarter ended September 30, 2021, please refer to the New Mountain Finance Corporation Form 10-Q filed with the SEC and the supplemental investor presentation which can be found on the Company’s website at http://www.newmountainfinance.com.
(1) Includes collateral for securities purchased under collateralized agreements to resell. (2) Excludes non-controlling interest in New Mountain Net Lease Corporation (“NMNLC”). (3) Excludes the Company’s United States (“U.S.”) Small Business Administration (“SBA”)-guaranteed debentures. Includes premium received on additional convertible notes issued in June 2019. (4) Includes investments held in NMNLC.
We believe that the strength of the Company’s unique investment strategy – which focuses on middle market defensive growth companies that are well researched by New Mountain Capital, L.L.C. (“New Mountain”), a leading alternative investment firm, is underscored by continued stable credit performance. The Company has had only twelve portfolio companies, representing approximately $276 million of the cost of all investments made since inception in October 2008, or approximately 3.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of $8.8 billion, go on non-accrual.
“We believe New Mountain’s strategy of focusing on ‘defensive growth’ industries and on companies that we know well continues to prove to be a successful strategy”, added Steven B. Klinsky, NMFC Chairman. “We believe one of our keys to success is the strength of the team, which we continue to build over time, now at approximately 190 employees.”
Robert A. Hamwee, CEO, commented: “The third quarter represented another solid quarter of performance for NMFC, which was highlighted by our $430 million in originations. With the launch of our at-the-market (“ATM”) program, we will continue to focus our efforts on investing in high-quality, defensive growth companies, which we believe is a major factor in being able to maintain a stable book value”.
John R. Kline, President and COO, commented: “We are pleased to announce a fourth quarter distribution of $0.30 per share based on our expectation that Q4 Net Investment Income will be at least $0.30 per share, prior to any fee waivers. Given our outlook for consistent operating performance and continued support, if needed, from our investment advisor, we remain confident that our Net Investment Income will continue to cover our quarterly dividend for the foreseeable future.”
Portfolio and Investment Activity1
As of September 30, 2021, the Company’s NAV was approximately $1,284.9 million and its portfolio had a fair value of approximately $3,033.1 million in 106 portfolio companies, with a weighted average YTM at Cost2 of approximately 8.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. For the three months ended September 30, 2021, the Company generated approximately $314.8 million of originations in fifteen new portfolio companies and approximately $114.1 million of originations, including commitments3 for follow-on investments in thirteen portfolio companies held as of June 30, 2021. For the three months ended September 30, 2021, the Company had $43.9 million of asset sales and cash repayments3 of approximately $446.9 million.
Consolidated Results of Operations4
The Company’s total investment income for the three months ended September 30, 2021 and 2020 was approximately $68.2 million and $65.3 million, respectively.
The Company’s total net expenses, after income tax expense, for the three months ended September 30, 2021 and 2020 were approximately $37.8 million and $36.5 million, respectively. Total net expenses, after income tax expense, for the three months ended September 30, 2021 and 2020 consisted of approximately $17.6 million and $18.1 million, respectively, of costs associated with the Company’s borrowings and approximately $17.7 million and $16.7 million, respectively, in net management and incentive fees. Since the Company’s initial public offering (“IPO”), the base management fee calculation has deducted the borrowings under the New Mountain Finance SPV Funding, L.L.C. credit facility (the “SLF Credit Facility”). The SLF Credit Facility had historically consisted of primarily lower yielding assets at higher advance rates. As part of an amendment to the Company’s existing credit facilities with Wells Fargo Bank, National Association, the SLF Credit Facility merged with and into the New Mountain Finance Holdings, L.L.C. credit facility (the “Holdings Credit Facility”) on December 18, 2014. Post credit facility merger and to be consistent with the methodology since the IPO, New Mountain Finance Advisers BDC, L.L.C. (the “Investment Adviser”) will continue to waive management fees on the leverage associated with those assets held under revolving credit facilities that share the same underlying yield characteristics with investments that were leveraged under the legacy SLF Credit Facility. Effective as of and for the quarter ended March 31, 2021 through the quarter ending December 31, 2022, the Investment Adviser has entered into a fee waiver agreement pursuant to which the Investment Adviser will waive base management fees in order to reach a target base management fee of 1.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on gross assets (the “Reduced Base Management Fee”) as opposed to the Company’s current base management fee of 1.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on gross assets less the borrowings under the SLF Credit Facility and less cash and cash equivalents (the “Base Management Fee”). If, for any quarterly period during the term of the fee waiver agreement, the Reduced Base Management Fee would be greater than the Base Management Fee calculated under the terms of the Investment Management Agreement, the Investment Adviser shall only be entitled to the lesser of those two amounts. The Investment Adviser cannot recoup management fees and incentive fees that the Investment Adviser has previously waived. For the three months ended September 30, 2021 and 2020 management fees waived were approximately $3.8 million and $2.8 million, respectively. For the three months ended September 30, 2021 and 2020 incentive fees waived were approximately $0 and $0.5 million, respectively. The Company’s net direct and indirect professional, administrative, other general and administrative and income tax expenses for the three months ended September 30, 2021 and 2020 were approximately $2.5 million and $1.7 million, respectively.
For the three months ended September 30, 2021 and 2020, the Company recorded approximately ($8.5) million and $59.4 million, respectively, of net realized and unrealized (losses) gains.
Liquidity and Capital Resources
As of September 30, 2021, the Company had cash and cash equivalents of approximately $83.4 million and total statutory debt outstanding of approximately $1,529.8 million5, which consisted of approximately $493.3 million of the $730.0 million of total availability on the Holdings Credit Facility, $150.0 million of the $188.5 million of total availability on the Company’s senior secured revolving credit facility (the “NMFC Credit Facility”), $167.8 million of the $280.0 million of total availability on the Company’s secured revolving credit facility (the “DB Credit Facility”), $0 of the $50.0 million of total availability on the uncommitted revolving loan agreement (the “Unsecured Management Company Revolver”), $5.8 million of the $10.0 million of total availability on the senior secured revolving credit facility (the “NMNLC Credit Facility II”), $201.4 million6 of convertible notes outstanding and $511.5 million of unsecured notes outstanding. Additionally, the Company had $300.0 million of SBA-guaranteed debentures outstanding as of September 30, 2021.
Portfolio and Asset Quality1
The Company puts its largest emphasis on risk control and credit performance. On a quarterly basis, or more frequently if deemed necessary, the Company formally rates each portfolio investment on a scale of one to four. Each investment is assigned an initial rating of a “2” under the assumption that the investment is performing materially in-line with expectations. Any investment performing materially below our expectations, where the risk of loss has materially increased since the original investment, would be downgraded from the “2” rating to a “3” or a “4” rating, based on the deterioration of the investment. An investment rating of a “4” could be moved to non-accrual status and the final development could be an actual realization of a loss through a restructuring or impaired sale.
As of September 30, 2021, seven portfolio companies had an investment rating of “3” and seven portfolio companies had an investment rating of “4”. The Company’s investments in the portfolio companies with an investment rating of “3” had an aggregate cost basis of approximately $168.4 million and an aggregate fair value of approximately $122.5 million. The Company’s investment in portfolio companies with an investment rating of “4” had an aggregate cost basis of approximately $138.7 million and an aggregate fair value of approximately $52.9 million.
Recent Developments
On October 27, 2021, the Company’s board of directors declared a fourth quarter 2021 distribution of $0.30 per share payable on December 30, 2021 to holders of record as of December 16, 2021.
On November 1, 2021, the Company entered into Amendment No. 1 to the Investment Management Agreement, pursuant to which the Base Management Fee will be reduced from 1.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the Company’s gross assets to 1.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the Company’s gross assets.
On November 2, 2021, the Investment Adviser extended the term of the Fee Waiver Agreement to be effective through the quarter ended December 31, 2023, rather than the quarter ended December 31, 2022. Under the Fee Waiver Agreement, the Investment Adviser will continue to waive base management fees in order to reach a target base management fee of 1.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on gross assets.
On November 3, 2021, the Company entered into an equity distribution agreement (the “Distribution Agreement“) with B. Riley Securities, Inc. and Raymond James & Associates, Inc. Under the Distribution Agreement, the Company may offer for sale, from time to time, and sell, by means of “at the market” offerings, up to $250,000,000 in aggregate amount of shares of its common stock. Subject to the terms and conditions of the Equity Distribution Agreement, sales of common stock, if any, may be made in transactions that are deemed to be an “at the market” offering as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended.
_________________________________
1 Includes collateral for securities purchased under collateralized agreements to resell. 2 References to “YTM at Cost” assume the accruing investments, including secured collateralized agreements, in our portfolio as of a certain date, the ‘‘Portfolio Date’’, are purchased at cost on that date and held until their respective maturities with no prepayments or losses and are exited at par at maturity. This calculation excludes the impact of existing leverage. YTM at Cost uses the LIBOR curves at each quarter’s respective end date. The actual yield to maturity may be higher or lower due to the future selection of LIBOR contracts by the individual companies in the Company’s portfolio or other factors. 3 Originations exclude payment-in-kind (“PIK”); originations, repayments, and sales excludes revolvers, unfunded commitments, bridges, return of capital, and realized gains / losses. 4 Excludes net income related to non-controlling interests in NMNLC. For the quarter ended September 30, 2021, $0.2 million of dividend income is excluded from investment income and $0.8 million of unrealized gains is excluded from net realized and unrealized gains. For the quarter ended September 30, 2020, $0.3 million of dividend income is excluded from investment income and $1.1 million of unrealized gains is excluded from net realized and unrealized gains. 5 Excludes the Company’s United States (“U.S.”) Small Business Administration (“SBA”)-guaranteed debentures. 6 Includes premium received on additional convertible notes issued in June 2019.
Conference Call
New Mountain Finance Corporation will host a conference call at 10 a.m. Eastern Time on Thursday, November 4, 2021, to discuss its third quarter 2021 financial results. All interested parties may participate in the conference call by dialing +1 (877) 443-9109 approximately 15 minutes prior to the call. International callers should dial +1 (412) 317-1082. This conference call will also be broadcast live over the Internet and can be accessed by all interested parties through the Company’s website, http://ir.newmountainfinance.com. To listen to the live call, please go to the Company’s website at least 15 minutes prior to the start of the call to register and download any necessary audio software. Following the call, you may access a replay of the event via audio webcast on our website. We will be utilizing a presentation during the conference call and we have posted the presentation to the investor relations section of our website.
New Mountain Finance Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except shares and per share data)
(unaudited)
September 30, 2021
December 31, 2020
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,260,975 and $2,281,184 respectively)
$
2,206,300
$
2,249,615
Non-controlled/affiliated investments (cost of $79,591 and $115,543, respectively)
111,605
103,012
Controlled investments (cost of $663,216 and $600,942, respectively)
693,749
600,875
Total investments at fair value (cost of $3,003,782 and $2,997,669, respectively)
3,011,654
2,953,502
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)
21,422
21,422
Cash and cash equivalents
83,357
78,966
Interest and dividend receivable
32,773
28,411
Receivable from unsettled securities sold
8,990
9,019
Receivable from affiliates
–
117
Deferred tax asset
–
101
Other assets
9,915
5,981
Total assets
$
3,168,111
$
3,097,519
Liabilities
Borrowings
Unsecured Notes
$
511,500
$
453,250
Holdings Credit Facility
493,263
450,163
SBA-guaranteed debentures
300,000
300,000
Convertible Notes
201,443
201,520
DB Credit Facility
167,800
244,000
NMFC Credit Facility
149,977
165,500
NMNLC Credit Facility II
5,845
–
Deferred financing costs (net of accumulated amortization of $38,985 and $33,325, respectively)
(21,337)
(16,839)
Net borrowings
1,808,491
1,797,594
Payable for unsettled securities purchased
24,658
26,842
Management fee payable
9,988
10,419
Interest payable
9,528
15,587
Incentive fee payable
7,661
7,354
Payable to affiliates
316
867
Deferred tax liability
13
–
Other liabilities
2,498
1,967
Total liabilities
1,863,153
1,860,630
Commitments and contingencies
Net Assets
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued
–
–
Common stock, par value $0.01 per share, 200,000,000 shares authorized, and 96,906,988 and 96,827,342 shares issued and outstanding, respectively
Total net assets of New Mountain Finance Corporation
$
1,284,905
$
1,221,875
Non-controlling interest in New Mountain Net Lease Corporation
20,053
15,014
Total net assets
$
1,304,958
$
1,236,889
Total liabilities and net assets
$
3,168,111
$
3,097,519
Number of shares outstanding
96,906,988
96,827,342
Net asset value per share of New Mountain Finance Corporation
$
13.26
$
12.62
New Mountain Finance Corporation
Consolidated Statements of Operations
(in thousands, except shares and per share data)
(unaudited)
Three Months Ended
Nine Months Ended
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income)
$
40,540
$
41,854
$
119,919
$
144,383
PIK interest income
1,903
2,547
6,501
6,464
Dividend income
867
–
867
–
Non-cash dividend income
1,956
2,274
7,324
6,898
Other income
5,249
1,497
9,651
4,085
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)
296
781
1,322
1,963
PIK interest income
182
217
182
(1,131)
Dividend income
288
687
288
2,096
Non-cash dividend income
831
–
3,881
(3,418)
Other income
79
427
284
1,002
From controlled investments:
Interest income (excluding PIK interest income)
1,253
2,011
3,570
4,581
PIK interest income
3,614
2,244
10,384
6,393
Dividend income
9,686
8,107
31,278
24,061
Non-cash dividend income
918
1,576
3,533
5,716
Other income
812
1,299
3,759
2,479
Total investment income
68,474
65,521
202,743
205,572
Expenses
Incentive fee
7,661
7,135
22,207
21,857
Management fee
13,740
12,877
40,885
39,869
Interest and other financing expenses
17,693
18,077
54,949
59,500
Administrative expenses
1,082
1,024
3,240
3,303
Professional fees
923
731
2,413
2,605
Other general and administrative expenses
490
442
1,398
1,383
Total expenses
41,589
40,286
125,092
128,517
Less: management fees waived
(3,752)
(3,341)
(11,193)
(10,067)
Less: expenses waived and reimbursed
–
(589)
–
(924)
Net expenses
37,837
36,356
113,899
117,526
Net investment income before income taxes
30,637
29,165
88,844
88,046
Income tax (benefit) expense
(8)
123
15
116
Net investment income
30,645
29,042
88,829
87,930
Net realized gains (losses):
Non-controlled/non-affiliated investments
2,459
30
2,797
(4,431)
Non-controlled/affiliated investments
20,549
12
8,338
12
Controlled investments
–
5
1,557
12
New Mountain Net Lease Corporation
–
–
–
812
Net change in unrealized (depreciation) appreciation:
Non-controlled/non-affiliated investments
(19,951)
21,410
(22,601)
(67,407)
Non-controlled/affiliated investments
(20,469)
(1,111)
44,545
(14,718)
Controlled investments
9,684
39,943
30,600
(8,278)
New Mountain Net Lease Corporation
–
–
–
(812)
Foreign Currency
(13)
–
(13)
–
Benefit (provision) for taxes
1
257
(114)
778
Net realized and unrealized (losses) gains
(7,740)
60,546
65,109
(94,032)
Net increase (decrease) in net assets resulting from operations
22,905
89,588
153,938
(6,102)
Less: Net increase in net assets resulting from operations related to non-controlling interests in New Mountain Net Lease Corporation
(1,058)
(1,398)
(4,789)
(1,584)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation
$
21,847
$
88,190
$
149,149
$
(7,686)
Basic earnings (loss) per share
$
0.23
$
0.91
$
1.54
$
(0.08)
Weighted average shares of common stock outstanding-basic
96,906,988
96,827,342
96,854,474
96,827,342
Diluted earnings (loss) per share
$
0.22
$
0.82
$
1.42
$
(0.08)
Weighted average shares of common stock outstanding-diluted
110,164,573
110,084,927
110,112,059
110,084,927
Distributions declared and paid per share
$
0.30
$
0.30
$
0.90
$
0.94
ABOUT NEW MOUNTAIN FINANCE CORPORATION
New Mountain Finance Corporation is a closed-end, non-diversified and externally managed investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. The Company’s first lien debt may include traditional first lien senior secured loans or unitranche loans. Unitranche loans combine characteristics of traditional first lien senior secured loans as well as second lien and subordinated loans. Unitranche loans will expose the Company to the risks associated with second lien and subordinated loans to the extent it invests in the “last out” tranche. In some cases, the investments may also include small equity interests. The Company’s investment activities are managed by its Investment Adviser, New Mountain Finance Advisers BDC, L.L.C., which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. More information about New Mountain Finance Corporation can be found on the Company’s website at http://www.newmountainfinance.com.
ABOUT NEW MOUNTAIN CAPITAL
New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, credit and net lease investment strategies with over $35 billion in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit http://www.newmountaincapital.com.
FORWARD-LOOKING STATEMENTS
Statements included herein may contain “forward-looking statements”, which relate to our future operations, future performance or our financial condition. Forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant volatility on our business, portfolio companies, our industry and the global economy. Actual results and outcomes may differ materially from those anticipated in the forward-looking statements as a result of a variety of factors, including those described from time to time in our filings with the Securities and Exchange Commission or factors that are beyond our control. New Mountain Finance Corporation undertakes no obligation to publicly update or revise any forward-looking statements made herein, except as may be required by law. All forward-looking statements speak only as of the time of this press release.
