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The Parent Company Reports Fourth Quarter and Full Year 2021 Financial Results

The Parent Company Reports Fourth Quarter and Full Year 2021 Financial Results

Doubled Direct-to-Consumer revenue to 50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales in Q4 2021 compared with 24{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in Q1 2021

Expanded reach to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of California population with 11 retail stores, the second largest retail footprint in the state, 6 delivery depots and an immersive mobile shopping app

Appoints Tanisha Robinson as Chief Transformation Officer and Esther Song as Chief Marketing Officer

Conference Call to be Held, April 1, 2022, at 1:00 p.m. ET

SAN JOSE, Calif., March 31, 2022 /CNW/ – TPCO Holding Corp. (“The Parent Company” or the “Company”) (NEO: GRAM.U) (OTCQX: GRAMF), a leading consumer-focused California cannabis company, today announced its financial results for the fourth quarter (“Q4 2021”) and full year (“FY 2021”) ended December 31, 2021. All amounts are expressed in U.S. dollars.

The Parent Company (CNW Group/TPCO Holding Corp.)

The Parent Company (CNW Group/TPCO Holding Corp.)

Q4 2021 Financial Highlights

  • Net sales for Q4 2021 were $39.6 million

  • Gross profit for Q4 2021 was $2.3 million, or 6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales

  • Net (income) loss and comprehensive (income) loss for Q4 2021 was $50.6 million

  • Adjusted EBITDA loss for Q4 2021 was $27.5 million. Adjusted EBITDA removes the effects of changes in fair value of financial instruments, impairment charges and other non-cash items.

FY 2021 Financial Highlights

  • Net sales for FY 2021 were $173.4 million

  • DTC Revenue for FY 2021 was $54.2 million or 31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of sales

  • Wholesale revenue for FY 2021 was $119.2 million of 69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of sales

  • Gross profit for FY 2021 was $20.2 million or 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of net sales

  • Net (income) loss and comprehensive (income) loss for FY 2021 was $587 million

  • Adjusted EBITDA loss for FY 2021 was $62 million.

  • Unrestricted Cash and equivalents totaled $165.3 million as of December 31, 2021

Management Commentary

“2021 was a foundational year, as we developed an integrated omnichannel retail platform that provides us with direct access to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of California’s adult population, positioning us to execute on our goal of becoming the number one choice for consumers by providing for both ease of access and high-quality innovative cannabis products,” said Troy Datcher, Chief Executive Officer of The Parent Company. “We have added significant talent to our organization, including industry experts and seasoned professionals that provide us with the depth of knowledge and expertise we need to lead in this market. Talent is incredibly important, and we are extremely proud of the caliber of team we have assembled. I also want to thank our entire team for the work they have done over the last year, which was instrumental in strongly positioning us for 2022 and beyond.”

Mr. Datcher continued, “While the challenges in the California market remain, including low bulk wholesale flower and oil pricing, high taxes and persisting illicit market, we have successfully begun to pivot our focus to our higher margin direct to consumer revenue, doubling DTC revenue as a percentage of sales between the first and fourth quarters. Today more than ever, we believe we are well positioned to win by leveraging our high-quality indoor grown cannabis, strong consumer brands and direct retail insights to innovate, create, and launch new products directly into the market that today’s consumers demand.”

Mr. Datcher added, “With our consumer-first approach, state-wide DTC retail footprint, robust branded products portfolio, and focus on higher value revenue streams, our priority for the remainder of the year will be preserving our strong balance sheet by reducing our cash burn while utilizing our DTC focus to drive improved margin to generate long-term value for our shareholders. Given our progress in 2021 and subject to any opportunistic partnership or acquisition transactions, we have set a goal to maintain a minimum cash balance of approximately $100 million at 2022 year end, sufficient to sustain our business for a minimum of three years, and pivot to generating positive cash flow in fiscal year 2023.”

Mr. Datcher concluded, “I am proud of our commitment to social equity initiatives and thrilled with the initial success of our partners. I look forward to empowering more entrepreneurs of color, who continue to be disproportionately impacted by current cannabis policies, while bringing our customers high-quality products, experiences, and culturally relevant brands. With the investments we made in 2021, we are ready to execute on this mission in 2022.”

Leadership Team Appointments and Board Changes

The Company further announced today the appointments of Tanisha Robinson as Chief Transformation Officer and Esther Song as Chief Marketing Officer. Additionally, the Company announced that Troy Datcher, Chief Executive Officer of The Parent Company, will be proposed as a director nominee to stand for election to the Board of Directors as Carol Bartz and Jeffry Allen have advised their intention to retire from the Board at the Company’s upcoming 2022 Annual meeting.

Mr. Datcher commented, “I am thrilled to officially welcome Tanisha and Esther to the team. We are proactively building a solid foundation for long term success, and I look forward to leveraging Tanisha and Esther’s extensive industry expertise to further mature and scale our organization. I’m confident we have assembled the right combination of high-quality products, compelling consumer brands, and leadership team to achieve our goals.

Ms. Robinson founded W*nder (pronounced “Wonder”), a company focused on creating accessible, reliable, intuitive cannabis and plant-based beverages to enhance and improve how consumers experience the world. Prior to her role at W*nder, she worked as Chief Disruption Officer of BrewDog globally, and was the first CEO of BrewDog USA, leading the company from its initial startup phase to becoming one of the largest and fastest growing craft breweries in the United States. In addition to her experience at W*nder and BrewDog, Ms. Robinson has founded several successful companies such as Print Syndicate, a design, technology, and marketing company, and TicketFire, a mobile app that allows consumers to use, transfer and sell paper tickets by converting them to a mobile format. Robinson also served in the US Army as an Arabic linguist. Her studies in Arabic at Ohio State University provided her the opportunity to work on women’s and human rights in Damascus, Syria, for two years. She is a featured international speaker on entrepreneurship, conscious capitalism, innovation, disruption and leadership and serves on the board of The Columbus College of Art and Design (“CCAD”) and Mount Carmel Health System.

Ms. Song has established expertise in public relations and marketing from over 20 years of experience in building brand visibility through strategic communications and global marketing campaigns, prioritizing direct consumer relationship building through loyalty programs and authentic storytelling. Prior to joining TPCO, she held the position of Chief Marketing Officer for Pure Beauty, and prior to that, similar roles at Canndescent and MedMen. During her time at MedMen, Song successfully launched a multi-state loyalty program and an integrated system allowing delivery and curbside services. In addition to her experience at MedMen, Song also led global digital and VIP public relations at fashion brands, including Tory Burch, Tod’s and public relations agency, BPCM. Song is currently on the leadership team of Cannabis for Black Lives.

Q4 2021 Operational Highlights

  • Expanded the Company’s California retail footprint to over 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the population through definitive agreements to acquire Coastal Holding Company, LLC (“Coastal”), a retail dispensary license holder and operator with six retail licensed locations, five currently operating, and two delivery depots.

  • In preparation of potentially being permitted to list the Company’s common shares and warrants on the New York Stock Exchange or the Nasdaq Stock Market upon regulatory advancement, the Company’s filed its Form 10 registration statement with the United States Securities and Exchange Commission (the “SEC”), which became effective pursuant to the Securities Exchange Act of 1934, as amended on October 8, 2021.

  • Further strengthened the senior management team with the appointments of Kerry Arnold as Chief People Officer of the Company and Tiffany McBride as Managing Director of Social Equity Ventures.

  • Expanded suite of edible offerings with the launch of DELI Dimes, a new gummy cannabis product available in three flavors: Black Cherry, Fresh Watermelon and Red Berry.

Subsequent Events

  • On January 28th, Company insiders, including the entire Board of Directors, Troy Datcher, Chief Executive Officer, Mike Batesole, Chief Financial Officer and other members of the senior leadership team, voluntarily entered into a twelve-month extension of lock-up agreements with the Company (the “Lock-Up Agreements”) with respect to an aggregate of over 34 million shares of common stock (“Lock-up Shares”), or approximately 35 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total issued and outstanding shares of common stock of the Company as of July 28, 2021.

FY 2021 Financial Results

Net sales for FY 2021 were $173.4 million, of which $54.2 million was Direct to Consumer sales, and $119.2 million was Wholesale.

Gross profit for FY 2021 was $20.2 million, representing gross margin of 12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The Company continues to focus on increasing direct-to-consumer sales as a percentage of overall revenue, to shift its sales to higher margin product categories, which over time, is expected to drive gross profit improvements.

Operating expenses for FY 2021 were $184.4 million, cash expenses included general and administrative costs of $47.3 million, salaries and benefits of $36.9 million, and sales and marketing expenses of $42.6 million. Non-cash expenses included: sales and marketing $30.2 million, stock-based compensation of $20.5 million, allowance for bad debts of $4.7 million and depreciation & amortization of $27.6 million.

Net (income) loss and comprehensive (income) loss for FY 2021 was $587 million, which is primarily attributable to non-cash impairment charges of $654.3 million.

Adjusted EBITDA loss for FY 2021 was $62 million. The Adjusted EBITDA loss in 2021 was primarily attributable to the closing of the Qualifying Transaction and the integration initiatives undertaken since the closing.

Unrestricted Cash and cash equivalents totaled $165.3 million as of December 31, 2021. Since closing the Company’s qualifying transaction, the Company has invested $48.8 million in acquisitions and capital investments, $6.5 million to repurchase its own shares and $81.9 million or an average of $6.8 million of cash per month on operations as it integrates and scales its businesses.

The Company’s consolidated financial statements, as well as its accompanying management discussion and analysis of financial condition and results of operations (“MD&A”) have been included in its Annual Report on Form 10-K filed on EDGAR (www.sec.gov) as well as SEDAR (www.sedar.com). Please refer to The Parent Company’s MD&A for additional detail and discussion on the Company’s results from operations.

Conference Call

The Parent Company will host a conference call tomorrow, to discuss these results. Troy Datcher, Chief Executive Officer, and Mike Batesole, Chief Financial Officer will host the call starting at 1:00 p.m. Eastern time. A question-and-answer session will follow management’s prepared remarks.

DATE:

Friday, April 1st, 2022

TIME:

1:00 p.m. Eastern Time

WEBCAST:

Click Here

DIAL-IN NUMBER:

(888) 254-3590 or (647) 794-4605

CONFERENCE ID:

2151082

REPLAY:

1 (888) 203-1112 or 1 (647)-436-0148
Available until 12:00 midnight Eastern Time Friday, April 8, 2022

Replay Code: 2151082

Financial results and analyses are available on the Company’s website (ir.theparent.co), EDGAR (www.sec.gov) and SEDAR (www.sedar.com).

About The Parent Company

Formed in January 2021, The Parent Company is a leading consumer-focused California cannabis company. The company’s three manufacturing facilities provide unparalleled access to high-quality, low-cost cannabis, while its vast wholesale distribution network of more than 450 California dispensaries, a direct-to-consumer omnichannel platform, six consumer delivery hubs and eleven omni-channel retail locations, currently service approximately 80{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the largest legal cannabis market in the country. The Company’s curated product portfolio includes eight valuable and scalable brands, including Monogram by Shawn “JAY-Z” Carter, Caliva, Deli, Fun Uncle, and Mirayo, which sets the tone for The Parent Company’s industry leadership in California and beyond.

In addition to its vast manufacturing infrastructure, consumer reach and cultural influence, The Parent Company is committed to using its resources and status to play a significant role in molding a more equitable cannabis industry. Its social equity ventures initiative, established by Chief Visionary Officer Shawn “JAY-Z” Carter, was created to break down the systematic barriers Black and other minority entrepreneurs face as they endeavor to secure meaningful participation, growth and leadership in the multibillion-dollar legal cannabis industry.

Shares of The Parent Company common stock are traded on NEO Exchange under the ticker symbol “GRAM.U” and on the OTCQX under the ticker symbol “GRAMF”.

For the latest news, activities, and media coverage, please visit www.theparent.co or connect with us on Instagram, LinkedIn, and Twitter.

Forward Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation which reflects The Parent Company’s current expectations regarding future events. The words “will”, “expects”, “intends”, “believes” and similar expressions are often intended to identify forward looking information, although not all forward-looking information contains these identifying words.

Specific forward-looking information contained in this press release includes, but is not limited to, statements concerning (i) the Company’s future financial performance (ii) ability of The Parent Company to execute on its growth strategy; (iii) expectations regarding future corporate development activities; (iv) expectation regarding U.S. listing and regulatory landscape; and (v) expansion of the Company’s direct-to-consumer line of its business. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond The Parent Company’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward looking information. Such risks and uncertainties include, but are not limited to: changes in general economic, business and political conditions, changes in applicable laws, the U.S. and Canadian regulatory landscapes and enforcement related to cannabis, changes in public opinion and perception of the cannabis industry, reliance on the expertise and judgment of senior management, as well as the factors discussed under the heading “Risk Factors” in The Parent Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022, which is available on the SEC’s website at www.sec.gov and on SEDAR at www.sedar.com. The Parent Company undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Non-GAAP Financial Measures

This news release contains the non-GAAP financial measure “Adjusted EBITDA,” which is not recognized under GAAP and does not have a standardized meaning prescribed by GAAP. As a result, this measure may not be comparable to similar measures presented by other companies. For a reconciliation of “Adjusted EBITDA” to the most directly comparable financial information presented in the Financial Statements in accordance with GAAP, see the section entitled “Reconciliation of Non-GAAP Measures” below.

Adjusted EBITDA

We believe Adjusted EBITDA is a useful measure to assess the performance of the Company as it provides more meaningful operating results by excluding the effects of expenses that are not reflective of our underlying business performance and other one-time or non-recurring expenses. We define Adjusted EBITDA as net income (loss) before (i) depreciation and amortization; (ii) income taxes; and (iii) interest expense and debt amortization, adjusted to exclude extraordinary items, non-recurring items and, other non-cash items, including, but not limited to (i) stock-based compensation expense, (ii) fair value change in contingent consideration and investments measured at Fair Value Through Profit and Loss (” FVTPL”), (iii) non-recurring legal and professional fees, human-resources, inventory and collections-related expenses, (iv) extra ordinary expenses related to COVID-19, (v) intangible and goodwill impairments and loss on disposal of assets, (vi) transaction costs related to merger and acquisition activities, and (vii) non-cash sales and marketing expenses.

Reconciliation of Non-GAAP Measures

Three Months

Year-ended

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

Net loss and comprehensive loss

$

(50,568,037)

(7,913,227)

$

(587,032,334)

$

(6,463,606)

Income taxes

5,645,521

–

(2,372,552)

–

Depreciation and amortization

8,790,536

–

27,615,762

–

Interest expense

1,455,241

–

5,183,817

–

EBITDA

(34,676,739)

(7,913,227)

(556,605,307)

(6,463,606)

Adjustments:

–

Share based compensation expense

3,005,477

–

20,456,297

–

Other non-recurring items:

–

Fair value change of contingent consideration

(8,821,983)

–

(229,819,070)

–

Loss on disposal of assets

(1,208,722)

–

2,447,985

–

Change in fair value of investments at FVTPL

832,172

–

1,250,990

–

Impairment loss

9,118,146

–

654,317,300

–

Provision for notes receivable

2,660,943

–

2,660,943

–

Write-off of prepaid inventory

1,620,891

–

1,620,891

–

Other taxes

–

–

2,243,441

–

De-SPAC costs

–

–

5,341,154

–

Restructuring costs

–

–

3,878,782

–

Sales and marketing expense

15,520

–

30,166,667

–

Adjusted EBITDA

$

(27,454,295)

(7,913,227)

$

(62,039,927)

$

(6,463,606)

Caution Regarding Cannabis Operations in the United States

Investors should note that there are significant legal restrictions and regulations that govern the cannabis industry in the United States. Cannabis remains a Schedule I drug under the U.S. Controlled Substances Act, making it illegal under federal law in the United States to, among other things, cultivate, distribute, or possess cannabis in the United States. Financial transactions involving proceeds generated by, or intended to promote, cannabis-related business activities in the United States may form the basis for prosecution under applicable U.S. federal money laundering legislation.

While the approach to enforcement of such laws by the federal government in the United States has trended toward non-enforcement against individuals and businesses that comply with medical or adult-use cannabis programs in states where such programs are legal, strict compliance with state laws with respect to cannabis will neither absolve The Parent Company of liability under U.S. federal law, nor will it provide a defense to any federal proceeding which may be brought against the Company. The enforcement of federal laws in the United States is a significant risk to the business of The Parent Company and any proceedings brought against the Company thereunder may adversely affect the Company’s operations and financial performance.

SOURCE TPCO Holding Corp.

Cision

Cision

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CSUF Finance Students Win Investment Research Competition Third Year in a Row

CSUF Finance Students Win Investment Research Competition Third Year in a Row
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By Daniel Coats ’15, ’18

The high caliber of Cal State Fullerton finance students was on display as undergrads affiliated with Titan Funds Administration (TCM), the true-cash stock and bond portfolio at CSUF, took best honors in the Chartered Financial Analyst Los Angeles location chapter’s Financial investment Analysis Opposition in February.

The level of competition problems learners to investigation, evaluate and worth a publicly traded organization, and they present their results to a panel of judges, who are field professionals. Learners are evaluated on their report composing, presentation techniques and the excellent of their study.

This is the third consecutive victory for Titan investment decision college students, tying the history for consecutive initially-spot finishes set by Cal Poly San Luis Obispo from 2014 to 2016.

Four Finance Pupils Sweep to Best Place

Finance seniors Alexandra Mendoza ’22, John Gomez ’22, Connor Joe ’22 and Eira Tobrand ’22 comprised the profitable workforce, though Titan Funds Management Fairness Director Kelly Ko served as college advisor, and Poplar Forest Capital companion Derek Derman was a specialist mentor.

The Titan workforce surpassed graduate-degree groups from Pepperdine College, UCLA and Claremont Graduate College, as well as undergrad cohorts from Loyola Marymount University, Cal State Northridge and Cal Condition Dominguez Hills.

Subsequent prevent for the Titan expense team: The West subregional spherical, scheduled for April 7-8, 2022. Need to the college students continue on their successful streak, the Americas World Last on April 28 will be the subsequent competition ahead of a last World wide Remaining on May well 16.

The TCM Variation

Whilst applied expense programs are turning into far more prevalent at universities in the 2020s, the practical experience and range of faculty and TCM’s substantial professional community established the CSUF application aside.

“TCM and the Student Managed Financial commitment Program supply substantial price to students in getting ready them for careers in the financial investment-management marketplace. Pupils master and take part in best tactics, these types of as running serious property, becoming accountable for presenting and reporting to a board, investigating corporations and industries, and producing analysis tips,” describes Ko.

“Few universities have utilized financial commitment courses that are operate by fingers-on school – with practitioner knowledge in the field – and by a assorted board of practitioners in fairness, fastened profits and other areas, who have interaction with and mentor pupils.”

Managing Director Marcia Lucas notes that the just one-device Pupil Managed Financial commitment Method (SMIF) study course – which is typically where by TCM learners get started off – also serves as a bridge for learners from underrepresented groups to grow to be nicely-versed in the entire world of company and particular finance.

“SMIF can change a student’s full perspective on the prospects obtainable to them. For the reason that the system has number of conditions and can be repeated up to three periods, learners usually development from being aware of incredibly small about economic marketplaces to becoming leaders and coaches to peers who are new to investing,” says Lucas. “The self-control taught in the TCM packages can be used to all aspects of a student’s lifetime, benefiting their families and communities, and giving a solid basis for long run professions in finance.”

Mendoza, who was introduced to TCM by means of her mentor in the Executive in Home method, Scott Coler ’85, notes the particular and professional expansion that comes from involvement in TCM: “You have true responsibilities and manage serious revenue. The application is a large step up from the typical classroom practical experience.”

She notes the importance of remaining open up-minded to prosper in this setting.

“We are handling the school’s revenue this is not a drill. The board of directors are sector practitioners, and they will give you feed-back that is built to enable you improve. The only way you development in the software is to understand to fully grasp and enhance at a significant stage. This concept is a little something that applies to anything in everyday living. You will not adapt and get over hardships unless of course you are open up and inclined.”

Jeff Van Harte ’80, CSUF alumnus and donor and supporter of the TCM method, says pupils “are getting a refined solution to analyzing organizations and marketplaces, attaining the conversation competencies to existing their assessment in prepared and oral variety, and graduating with a awareness foundation that sets them apart from other undergraduate small business majors this allows them to compete for a greater paying occupation.”

Van Harte sees the applied expertise of producing authentic cash decisions as a distinct of the system. “This is not a ‘just-for-fun’ paper portfolio,” he suggests. “TCM manages $3 million of real property with the mandate of providing again to the university to assist the system. There is genuine fiduciary duty listed here, not like quite a few other applications that don’t have true cash to commit.”

For Extra on Titan Cash Administration

Cal Condition Fullerton’s Titan Money Management programs enable finance learners and other Titans interested in stock current market occupations to manage precise financial commitment portfolios in consultation with the Orange County chapter of the Chartered Economic Analyst organization.

From researching investments during the ups and downs of equity marketplaces to presenting success at competitions, conferences and functions, CSUF expense pupils attain useful working experience as portfolio administrators, economical analysts, brokers and traders.

For extra facts, reach out to TCM@fullerton.edu or simply call 657-278-8179. Or read additional of our articles or blog posts on CSUF expenditure training.

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Portman Ridge Finance Corporation Announces Full Year 2021

Portman Ridge Finance Corporation Announces Full Year 2021

NEW YORK, March 10, 2022 (GLOBE NEWSWIRE) — Portman Ridge Finance Corporation (Nasdaq: PTMN) (the “Company” or “Portman Ridge”) announced today its financial results for the full year ended December 31, 2021.

The Company also declared a quarterly stockholder distribution of $0.63 per share for the first quarter of 2022, payable on March 30, 2022 to stockholders of record at the close of business on March 21, 2022. This is an increase of $0.01 per share from $0.62 per share distributed in the fourth quarter of 2021 and $0.60 per share distributed in preceding quarters.

Full Year 2021 Highlights1

  • Net asset value (“NAV”) for full year 2021 increased to $280.1 million ($28.88 per share) from $216.3 million ($28.77 per share) year-over-year, reflecting broad-based improvements in the debt portfolio investments and joint ventures.
  • Total investment income for full year 2021 increased to $80.1 million, of which $63.8 million was attributable to interest income from the debt securities portfolio. This compares to total investment income of $42.8 million in 2020, of which $31.4 million was attributable to interest income from the debt securities portfolio.
  • Excluding the impact of purchase price accounting, core investment income2 for the full year 2021 was $63.4 million, an increase of $24.3 million as compared to core investment income of $39.1 million in 2020
  • Net investment income (“NII”) for full year 2021 increased to $42.0 million ($4.92 per share) as compared to $17.0 million ($3.40 per share) a year ago.
  • Core NII3 for full year 2021 increased to $25.4 million ($2.97 per share) as compared to $13.3 million ($2.67 per share)1 a year ago.
  • Total investments at fair value (excluding derivatives) at December 31, 2021 was $550.0 million; when excluding CLO funds and Joint Ventures, these investments are spread across 30 different industries and 113 different entities, with an average par balance per investment of approximately $3.3 million. This compares to $487.7 million as of December 31, 2020, comprised of investments in 121 entities.
  • As of December 31, 2021, par value of outstanding borrowings was $352.4 million with an asset coverage ratio of total assets to total borrowings of 178{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. On a net basis, leverage as of December 31, 2021 was 1.01x.4
  • During the year, the Company redeemed in full the aggregate $77.4 million in principal outstanding of the 6.125{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Notes due 2022 on May 30, 2021; the aggregate principal amount outstanding of $28.75 million of HCAP’s 6.125{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Notes due 2022 were redeemed in full on July 23, 2021.
  • In the fourth quarter of 2021, the Company’s previously announced purchase of $18.1 million of portfolio of CLO assets in exchange for $1.4 million in cash and 556,852 shares of common stock issued at NAV closed in the fourth quarter of 2021.
  • During the year, the Company repurchased 75,377 shares, under its $10 million Stock Repurchase Program in open market transactions at an aggregate cost of approximately $1.8 million.
  • A 1-for-10 reverse stock split of the Company’s common stock was completed effective August 26, 2021.

Management Commentary

Ted Goldthorpe, Chief Executive Officer of Portman Ridge, stated, “We are pleased with our year end results and believe we are well-positioned as we look ahead to the new year. The year-over-year increase in net assets per share is a reflection of the strength of our portfolio. Our solid performance has allowed us to increase our quarterly distribution for a second quarter in a row to $0.63 per share. Overall, we have had a successful year and our goal is to continue to improve our portfolio performance, lower our cost of capital, and reduce expenses relative to our asset base. Furthermore, the expected speed and extent in the rise of interest rates should improve our gross investment income in the coming quarters, as the majority of our portfolio has a floating rate. We also expect future portfolio investments to predominately be floating rate investments.”

Select Financial Highlights

    For the Year Ended December 31,   For the Year Ended December 31,
($ in thousands)     2021       2020  
Total investment income     80,086       42,764  
Net Expenses     38,082       25,764  
Net Investment Income     42,004       17,000  
           
Net realized and unrealized (loss) gain on investments     (12,701 )     14,418  
Tax (provision) benefit on realized and unrealized (gains) losses on investments     (1,442 )     —  
Realized (losses) gains on extinguishments of Debt     (1,835 )     155  
Net Increase (Decrease) In Net Assets Resulting From Operations   $ 26,026     $ 31,573  
Net Increase (Decrease) In Stockholders’ Equity Resulting from Operations per Common Share—Basic and Diluted(1)   $ 3.05     $ 6.32  
Net Investment Income Per Common Share—Basic and Diluted(1)   $ 4.92     $ 3.40  
Weighted Average Shares of Common Stock Outstanding—Basic and Diluted(1)     8,536,079       4,998,759  
Distribution per share(1)   $ 0.63     $ 0.60  
           

(1)   The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021. As a result, common shares and net asset value per common share information has been adjusted retroactively to reflect the split for periods prior to August 26, 2021.

       
    For the Year Ended
December 31, 2021		  
($ in thousands)    
Interest from investments in debt excluding accretion   $ 42,787    
Purchase discount accounting     16,644    
PIK Investment Income     4,345    
CLO Income     4,754    
JV Income     9,178    
Service Fees     2,378    
Total Investment Income     80,086    
Less: Purchase discount accounting     (16,644 )  
Core Investment Income     63,442    

Investment income for the years ended December 31, 2021 increased to $80.1 million, as compared to $42.8 million in 2020.

Interest income from investments in debt securities for the year ended December 31, 2021 increased to $63.8 million as compared to $31.4 million in the prior year. The increase in interest income was primarily driven by additions to the Debt Securities Portfolio through merger transactions, as well as an increase in the contractual interest rates on loans.

At December 31, 2021 and December 31, 2020, the weighted average contractual interest rate on our interest earning debt securities was approximately 8.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 7.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively.

Investment Portfolio Activity

The composition of our investment portfolio at December 31, 2021 and December 31, 2020 at cost and fair value was as follows:

($ in thousands)   December 31, 2021   December 31, 2020
Security Type   Cost/Amortized
Cost		   Fair Value   {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}(¹)   Cost/Amortized
Cost		   Fair Value   {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}(¹)
Senior Secured Loan   $361,556   $364,701     66     $304,539   $328,846     68  
Junior Secured Loan     82,996     70,549     13       87,977     75,807     16  
Senior Unsecured Bond     416     43     0       416     208     0  
CLO Fund Securities     51,561     31,632     6       45,728     19,583     4  
Equity Securities     26,680     22,586     4       24,594     13,945     3  
Asset Manager Affiliates(2)   17,791     —     —       17,791     —     —  
Joint Ventures     64,365     60,474     11       54,932     49,349     10  
Derivatives     31     (2,412 )   —       31     (1,109 )   —  
Total   $605,396   $547,573     100 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}   $536,008   $486,629     100 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

¹        Represents percentage of total portfolio at fair value.
²        Represents the equity investment in the Asset Manager Affiliates.

As of December 31, 2021, seven of the Company’s debt investments were on non-accrual status. As of September 30, 2021, six of the Company’s investments were on non-accrual status. Investments on non-accrual status were 0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 2.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the Company’s investment portfolio at fair value and amortized cost as of December 31, 2021, respectively, compared to 0.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 2.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} as of September 30, 2021.

Liquidity and Capital Resources

As of December 31, 2021, we had $352.4 million (par value) of borrowings outstanding ($347.2 million net of capitalized costs) with a weighted average interest rate of 3.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. This balance was comprised of $79.8 million of outstanding borrowings under the Senior Secured Revolving Credit Facility, $162.5 million of 2018-2 Secured Notes due 2029, and $104.9 million of 4.875{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Notes due 2026.

As of December 31, 2021, the Company had unrestricted cash of $28.9 million, restricted cash of $39.4 million, $34.4 million of available borrowing capacity under the Senior Secured Revolving Credit Facility, and $25.0 million of borrowing capacity under the 2018-2 Revolving Credit Facility. Total assets and stockholders’ equity at December 31, 2021 were $648.3 million and $280.1 million, respectively. Aggregate unfunded commitments stood at $47.9 million as of December 31, 2021.

As of December 31, 2021 and December 31, 2020 the fair value of investments and cash were as follows:

Security Type   December 31, 2021   December 31, 2020
Cash and cash equivalents   $ 28,919     $ 6,990  
Restricted Cash     39,421       75,913  
Senior Secured Loan     364,701       328,846  
Junior Secured Loan     70,549       75,807  
Senior Unsecured Bond     43       208  
CLO Fund Securities     31,632       19,583  
Equity Securities     22,586       13,945  
Joint Ventures     60,474       49,349  
Derivatives     (2,412 )     (1,109 )
Total   $ 615,914     $ 569,532  

Interest Rate Volatility

The Company’s investment income is affected by fluctuations in various interest rates, including LIBOR and prime rates.

As of December 31, 2021, approximately 84{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the Company’s Debt Securities Portfolio were either floating rate with a spread to an interest rate index such as LIBOR or the prime rate. 75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of these floating rate loans contain LIBOR floors ranging between 0.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 2.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

As of December 31, 2021, Portman Ridge had approximately $352.4 million (par value) of borrowings outstanding, of which approximately 31{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} had a fixed rate and 69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} had a floating rate. Portman Ridge expects future portfolio investments to predominately be floating rate investments.

In periods of rising or lowering interest rates, the cost of the portion of debt associated with the 4.875{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Notes Due 2026 would remain the same5, given that this debt is at a fixed rate, while the interest rate on borrowings under the Revolving Credit Facility would fluctuate with changes in interest rates.

Generally, an increase in the base rate index for floating rate investment assets would increase gross investment income and a decrease in the base rate index for such assets would decrease gross investment income (in either case, such increase/decrease may be limited by interest rate floors/minimums for certain investment assets).

    Impact on net investment income from
a change in interest rates at:		  
    ($ in thousands)  
    1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}       2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}       3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}    
Increase in interest rate     $ (1,153 )       $ 217         $ 1,671    
Decrease in interest rate     $ 256         $ 256         $ 256    

Conference Call and Webcast

We will hold a conference call on Friday March 11, 2022 at 9:00 am Eastern Time to discuss our fourth quarter and full year 2021 financial results. To access the call, stockholders, prospective stockholders and analysts should dial (866) 757-5630 approximately 10 minutes prior to the start of the conference call and use the conference ID 1949597.

A replay of this conference call will be available from approximately 12:00 p.m. Eastern Time on March 11 through March 18. The dial in number for the replay is (855) 859-2056 and the conference ID is 1949597.

A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis on the Company’s website www.portmanridge.com in the Investor Relations section under Events and Presentations. The webcast can also be accessed by clicking the following link: Portman Ridge Fourth Quarter and Full Year 2021 Conference Call. The online archive of the webcast will be available on the Company’s website shortly after the call.

About Portman Ridge Finance Corporation

Portman Ridge Finance Corporation (Nasdaq: PTMN) is a publicly traded, externally managed investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Portman Ridge’s middle market investment business originates, structures, finances and manages a portfolio of term loans, mezzanine investments and selected equity securities in middle market companies. Portman Ridge’s investment activities are managed by its investment adviser, Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors, LP.

Portman Ridge’s filings with the Securities and Exchange Commission (the “SEC”), earnings releases, press releases and other financial, operational and governance information are available on the Company’s website at www.portmanridge.com.

About BC Partners Advisors L.P. and BC Partners Credit

BC Partners is a leading international investment firm with over $40 billion of assets under management in private equity, private credit and real estate strategies. Established in 1986, BC Partners has played an active role in developing the European buyout market for three decades. Today, BC Partners executives operate across markets as an integrated team through the firm’s offices in North America and Europe. Since inception, BC Partners has completed 117 private equity investments in companies with a total enterprise value of €149 billion and is currently investing its eleventh private equity fund. For more information, please visit www.bcpartners.com.

BC Partners Credit was launched in February 2017 and has pursued a strategy focused on identifying attractive credit opportunities in any market environment and across sectors, leveraging the deal sourcing and infrastructure made available from BC Partners.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements. The matters discussed in this press release, as well as in future oral and written statements by management of Portman Ridge Finance Corporation, that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements.

Forward-looking statements relate to future events or our future financial performance and include, but are not limited to, projected financial performance, expected development of the business, plans and expectations about future investments and the future liquidity of the Company. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “outlook”, “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar words. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements.

Important assumptions include our ability to originate new investments, and achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this press release should not be regarded as a representation that such plans, estimates, expectations or objectives will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) uncertainty of the expected financial performance of the Company; (2) expected synergies and savings associated with . merger transaction effectuated by  the Company; (3) the ability of the Company and/or its adviser to implement its business strategy; (4) evolving legal, regulatory and tax regimes; (5) changes in general economic and/or industry specific conditions; (6) the impact of increased competition; (7) business prospects and the prospects of the Company’s portfolio companies; (8) contractual arrangements with third parties; (9) any future financings by the Company; (10) the ability of Sierra Crest Investment Management LLC to attract and retain highly talented professionals; (11) the Company ability to fund any unfunded commitments; (12) any future distributions by the Company; (13) changes in regional or national economic conditions, including but not limited to the impact of the COVID-19 pandemic, and their impact on the industries in which we invest; and (14) other changes in the conditions of the industries in which we invest and other factors enumerated in our filings with the SEC. The forward-looking statements should be read in conjunction with the risks and uncertainties discussed in the Company’s filings with the SEC, including the Company’s most recent Form 10-K and other SEC filings. We do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required to be reported under the rules and regulations of the SEC.

Contacts:
Portman Ridge Finance Corporation
650 Madison Avenue, 23rd floor
New York, NY 10022
info@portmanridge.com

Jason Roos
Jason.Roos@bcpartners.com
(212) 891-2880

Lena Cati
The Equity Group Inc.
lcati@equityny.com
(212) 836-9611

Serena Liegey
The Equity Group Inc.
sliegey@equityny.com
(212) 836-9630

PORTMAN RIDGE FINANCE CORPORATION
CONSOLIDATED BALANCE SHEETS

    December 31,
2021		     December 31,
2020		  
($ in thousands, except share and per share amounts)            
ASSETS            
Investments at fair value:            
Non-controlled/non-affiliated investments (amortized cost: 2021 – $479,153; 2020 – $445,901)   $ 452,482     $ 427,277  
Non-controlled affiliated investments (amortized cost: 2021 – $74,082; 2020 – $40,726)     74,142       40,503  
Controlled affiliated investments (cost: 2021 – $52,130; 2020 – $49,350)     23,361       19,957  
Total Investments at Fair Value, excluding derivatives (cost: 2021 – $605,365; 2020 – $535,978)     549,985       487,737  
Cash and cash equivalents     28,919       6,990  
Restricted cash     39,421       75,913  
Interest receivable     5,514       2,973  
Receivable for unsettled trades     20,193       25,108  
Due from affiliates     507       357  
Other assets     3,762       1,100  
Total Assets   $ 648,301     $ 600,178  
LIABILITIES            
2018-2 Secured Notes (net of discount of: 2021 – $1,403; 2020 – $2,445)   $ 162,460     $ 249,418  
4.875{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Notes Due 2026 (net of discount of: 2021 – $2,157; net of deferred financing costs of: 2021 – $951)     104,892       —  
Great Lakes Portman Ridge Funding LLC Revolving Credit Facility (net of deferred financing costs of: 2021 – $732; 2020 – $1,098)     79,839       48,223  
6.125{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Notes Due 2022 (net of deferred financing costs of: 2020 – $1,058)     —       75,668  
Derivative liabilities (cost: 2021 – $31; 2020 – $31)     2,412       1,109  
Payable for unsettled trades     5,397       —  
Accounts payable, accrued expenses and other liabilities     4,819       1,789  
Accrued interest payable     2,020       1,089  
Due to affiliates     1,799       1,375  
Management and incentive fees payable     4,541       5,244  
Total Liabilities     368,179       383,915  
COMMITMENTS AND CONTINGENCIES            
NET ASSETS            
Common stock, par value $0.01 per share, 20,000,000 common shares authorized; 9,867,998 issued, and 9,699,695 outstanding at December 31, 2021, and 7,609,349 issued, and 7,516,423 outstanding at December 31, 2020     97       75  
Capital in excess of par value     733,095       639,136  
Total distributable (loss) earnings     (453,069 )     (422,947 )
Total Net Assets     280,122       216,264  
Total Liabilities and Stockholders’ Equity   $ 648,301     $ 600,178  
NET ASSET VALUE PER COMMON SHARE (1)   $ 28.88     $ 28.77  

(1)   The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the common shares and net asset value per common share have been adjusted retroactively to reflect the split for all periods presented.

PORTMAN RIDGE FINANCE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS

    For the Year Ended December 31,
($ in thousands, except share and per share amounts)      2021       2020       2019  
Investment income:            
Income from non-controlled/non-affiliated investments   $                3,591     $ 27,553     $ 12,205  
Income from non-controlled affiliated investments     8,947       10,065       10,324  
Income from controlled affiliated investments     5,170       4,263       3,750  
Interest from cash and time deposits     —       15       79  
Fees and other income     2,378       868       137  
Total investment income     80,086       42,764       26,495  
Expenses:            
Management fees     7,916       4,579       3,129  
Performance-based incentive fees     7,075       4,858       —  
Interest and amortization of debt issuance costs     13,644       10,284       8,261  
Compensation     —       —       3,689  
Professional fees     3,660       2,836       3,467  
Administrative services expense     3,219       1,941       1,244  
Other general and administrative expenses     2,568       1,823       2,201  
Lease termination costs     —       —       1,431  
Total expenses     38,082       26,321       23,421  
Management and performance-based incentive fees waived     —       (557 )     —  
Net Expenses     38,082       25,764       23,421  
Net Investment Income     42,004       17,000       3,074  
Realized And Unrealized Gains (Losses) On Investments:            
Net realized gains (losses) from investment transactions            
Non-controlled/non-affiliated investments     (4,397 )     7,120       (10,972 )
Non-Controlled affiliated investments     139       485       (12 )
Controlled affiliated investments     —       —       (4,635 )
Net realized gain (loss) on investments     (4,258 )     7,605       (15,619 )
Net change in unrealized appreciation (depreciation) on:            
Non-controlled/non-affiliated investments     (8,047 )     21,366       9,756  
Non-Controlled affiliated investments     282       (11,723 )     (6,208 )
Controlled affiliated investments     625       (1,755 )     (2,363 )
Derivatives     (1,303 )     (1,075 )     (64 )
Net unrealized gain (loss) on investments     (8,443 )     6,813       1,121  
Tax (provision) benefit on realized and unrealized (gains) losses on investments     (1,442 )     —       —  
Net realized and unrealized appreciation (depreciation) on investments, net of taxes     (14,143 )     14,418       (14,498 )
Realized gains (losses) on extinguishments of Debt     (1,835 )     155       (1,076 )
Net Increase (Decrease) In Net Assets Resulting From Operations   $ 26,026     $ 31,573     $ (12,500 )
Net Increase (Decrease) In Stockholders’ Equity Resulting from Operations per Common Share (1):            
Basic:   $                   3.05     $ 6.32     $ (3.32 )
Diluted:   $ 3.05     $ 6.32     $ (3.32 )
Net Investment Income Per Common Share (1):            
Basic:   $ 4.92     $ 3.40     $ 0.82  
Diluted:   $ 4.92     $ 3.40     $ 0.82  
Weighted Average Shares of Common Stock Outstanding—Basic and Diluted (1)     8,536,079       4,998,759       3,764,165  

(1)   The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021, the common shares and net asset value per common share have been adjusted retroactively to reflect the split for all periods presented.

_______________________________________

1 The Company completed a Reverse Stock Split of 10 to 1 effective August 26, 2021. As a result, the share and per share amounts have been adjusted retroactively to reflect the split for all periods prior to August 26, 2021.
2 Core investment income represents reported total investment income as determined in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, less the impact of purchase price discount accounting in connection with the Garrison Capital Inc. (“GARS”) and Harvest Capital Credit Corporation (“HCAP”) mergers. Portman Ridge believes presenting core investment income and the related per share amount is useful and appropriate supplemental disclosure for analyzing its financial performance due to the unique circumstance giving rise to the purchase accounting adjustment. However, core investment income is a non-U.S. GAAP measure and should not be considered as a replacement for total investment income and other earnings measures presented in accordance with U.S. GAAP. Instead, core investment income should be reviewed only in connection with such U.S. GAAP measures in analyzing Portman Ridge’s financial performance.
3 Core NII, or core net investment income, represents reported net investment income in accordance with U.S. GAAP, less the impact of purchase price discount accounting in connection with the GARS and HCAP mergers.  Portman Ridge believes presenting Core NII and the related per share amount is useful and appropriate supplemental disclosure for analyzing its financial performance due to the unique circumstance giving rise to the purchase accounting adjustment. However, Core NII is a non-U.S. GAAP measure and should not be considered as a replacement for net investment income and other earnings measures presented in accordance with U.S. GAAP.  Instead, Core NII should be reviewed only in connection with such U.S. GAAP measures in analyzing Portman Ridge’s financial performance.
4 Net leverage is calculated as the ratio between (A) debt, excluding unamortized debt issuance costs, less available cash and cash equivalents, and restricted cash and (B) NAV. Portman Ridge believes presenting a net leverage ratio is useful and appropriate supplemental disclosure because it reflects the Company’s financial condition net of $68.3 million of cash and cash equivalents. However, the net leverage ratio is a non-U.S. GAAP measure and should not be considered as a replacement for the regulatory asset coverage ratio and other similar information presented in accordance with U.S. GAAP. Instead, the net leverage ratio should be reviewed only in connection with such U.S. GAAP measures in analyzing Portman Ridge’s financial condition.
5 See comment above about describing the terms and amount of the 4.875{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} Notes issuance.

Posted on

Horizon Technology Finance Announces Fourth Quarter and Full Year 2021 Financial Results

Horizon Technology Finance Announces Fourth Quarter and Full Year 2021 Financial Results

FARMINGTON, Conn., March 1, 2022 /PRNewswire/ — Horizon Technology Finance Corporation (NASDAQ: HRZN) (“HRZN”, “Horizon” or the “Company”), a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries, today announced its financial results for the fourth quarter and full year ended December 31, 2021.

Fourth Quarter 2021 Highlights

  • Net investment income (“NII”) of $8.1 million, or $0.39 per share, compared to $3.9 million, or $0.21 per share for the prior-year period
  • Total investment portfolio of $458.1 million as of December 31, 2021
  • Net asset value of $245.3 million, or $11.56 per share, as of December 31, 2021
  • Annualized portfolio yield on debt investments of 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for the quarter
  • HRZN funded 17 loans totaling $79.9 million
  • HRZN’s investment adviser, Horizon Technology Finance Management LLC (“HTFM”), originated $118.2 million through its lending platform (“Horizon Platform”), inclusive of the HRZN loans
  • Raised total net proceeds of approximately $12.8 million with “at-the-market” (“ATM”) offering program
  • Experienced liquidity events from seven portfolio companies
  • Cash of $45.9 million and credit facility capacity of $92.8 million as of December 31, 2021
  • Held portfolio of warrant and equity positions in 76 companies as of December 31, 2021
  • Undistributed spillover income of $0.51 per share as of December 31, 2021
  • Subsequent to quarter end, declared distributions of $0.10 per share payable in April, May and June 2022

Full Year 2021 Highlights

  • Net investment income of $28.2 million, or $1.41 per share for 2021, compared to $20.7 million, or $1.18 per share, for the prior year
  • Achieved portfolio yield on debt investments of 15.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} for 2021
  • HRZN funded 49 loans totaling $297.1 million; experienced liquidity events from 20 portfolio companies

“The fourth quarter capped off a landmark year for Horizon and the Horizon Platform, including a record investment portfolio at year-end of over $450 million, and we are proud of our entire team’s efforts,” said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of Horizon.  “We generated NII of $0.39 per share, above our distribution level, while we continued growing our portfolio.  Once again, we successfully harnessed the increasing power of the ‘Horizon’ brand to drive strong loan originations in the quarter, while maintaining an impressive committed backlog and pipeline of venture debt opportunities.  In addition, HTFM’s predictive pricing strategy continued to prosper, as we completed seven portfolio exits, once again leading to a debt portfolio yield of over 16{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, among the top of the industry.”

“Along with HRZN’s excellent growth, we finished the year with nearly 98{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of its portfolio 3-rated or better,” continued Mr. Pomeroy.  “We also recently further strengthened HRZN’s balance sheet and expanded its lending capacity, which should enable us to further grow the portfolio in 2022.  With demand for venture debt remaining at near-peak levels, and with an extensive committed backlog and pipeline, we believe HRZN is well situated in 2022 to continue to grow its portfolio and deliver compelling returns to its shareholders.”

Fourth Quarter 2021 Operating Results

Total investment income for the quarter ended December 31, 2021 grew 68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to $16.9 million, compared to $10.1 million for the quarter ended December 31, 2020, primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio, as well as higher fee income.

The Company’s dollar-weighted annualized yield on average debt investments for the quarter ended December 31, 2021 and 2020 was 16.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 13.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively.  The Company calculates the dollar-weighted annualized yield on average debt investments for any period measured as (1) total investment income (excluding dividend income) during the period divided by (2) the average of the fair value of debt investments outstanding on (a) the last day of the calendar month immediately preceding the first day of the period and (b) the last day of each calendar month during the period. The dollar-weighted annualized yield on average debt investments is higher than what investors will realize because it does not reflect expenses or any sales load paid by investors.

Total expenses for the quarter ended December 31, 2021 were $8.7 million, compared to $5.9 million for the quarter ended December 31, 2020.  The increase was primarily due to a $0.9 million increase in interest expense, a $0.4 million increase in the base management fee and a $1.0 million increase in the performance-based incentive fee.

Net investment income for the quarter ended December 31, 2021 was $8.1 million, or $0.39 per share, compared to $3.9 million, or $0.21 per share, for the quarter ended December 31, 2020.

For the quarter ended December 31, 2021, net realized loss on investments was $0.9 million, or $0.04 per share, compared to net realized loss on investments of $18.6 million, or $0.99 per share, for the quarter ended December 31, 2020.

For the quarter ended December 31, 2021, net unrealized depreciation on investments was $4.9 million, or $0.24 per share, compared to net unrealized appreciation on investments of $17.1 million, or $0.91 per share, for the prior-year period.

Full Year 2021 Operating Results

Total investment income for the year ended December 31, 2021 was $60.0 million, an increase of 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} compared to $46.0 million for the year ended December 31, 2020.

Horizon’s dollar-weighted annualized yield on average debt investments for the year ended December 31, 2021 and 2020 was 15.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} and 14.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, respectively.

For the full year ended December 31, 2021, net investment income was $28.2 million, or $1.41 per share, compared to net investment income of $20.7 million, or $1.18 per share, in the prior year.

For the full year ended December 31, 2021, net realized loss on investments was $3.2 million, or $0.16 per share, compared to net realized loss on investments of $14.7 million, or $0.84 per share, for the full year ended December 31, 2020.

For the full year ended December 31, 2021, net unrealized appreciation on investments was $3.2 million, or $0.16 per share, compared to net unrealized appreciation on investments of $0.3 million, or $0.02 per share, for the full year ended December 31, 2020.

Portfolio Summary and Investment Activity

As of December 31, 2021, the Company’s debt portfolio consisted of 45 secured loans with an aggregate fair value of $437.3 million. In addition, the Company’s total warrant, equity and other investments in 78 portfolio companies had an aggregate fair value of $20.8 million.  Total portfolio investment activity for the three months and full year ended December 31, 2021 and 2020 was as follows:

($ in thousands)

For the Three Months Ended 
December 31,

For the Full Year Ended
December 31,

2021

2020

2021

2020

Beginning portfolio

$              452,346

$              311,750

$        352,545

$        319,551





New debt investments

88,693

76,913

344,445

198,561





Principal payments received on investments

(2,171)

(4,485)

(13,474)

(24,829)





Early pay-offs

(66,579)

(30,644)

(174,536)

(121,429)





Accretion of debt investment fees

1,370

815

4,556

3,895





New debt investment fees

(930)

(938)

(3,261)

(2,353)





Warrants received in settlement of fee income

—

—

—

978





Proceeds from sale of investments

(9,169)

(134)

(52,954)

(8,335)





Dividend income from controlled affiliate investment

—

—

—

118





Net realized loss on investments

(568)

(17,672)

(2,451)

(13,727)





Net unrealized (depreciation) appreciation on investments

(4,917)

17,139

3,205

313





Other

—

(199)

—

(198)





Ending portfolio

$              458,075

$              352,545

$       458,075

$       352,545

Portfolio Asset Quality

The following table shows the classification of Horizon’s loan portfolio at fair value by internal credit rating as of December 31, 2021, September 30, 2021 and December 31, 2020:

($ in thousands)

December 31, 2021

 

September 30, 2021

 

December 31, 2020

Number of Investments

Debt Investments at Fair Value

Percentage of Debt Investments

Number of Investments

Debt Investments at Fair Value

Percentage of Debt Investments

Number of Investments

Debt Investments at Fair Value

Percentage of Debt Investments

Credit Rating










4

9

$      104,863

24.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

5

$       56,337

13.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

6

$       77,950

23.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

3

34

322,084

73.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

35

359,658

83.7{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

24

240,933

72.2{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

2

1

3,470

0.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

2

11,141

2.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

3

12,875

3.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

1

1

6,900

1.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

1

2,800

0.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

1

1,737

0.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Total

45

$     437,317

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

43

$     429,936

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

34

$     333,495

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

As of December 31, 2021, Horizon’s loan portfolio had a weighted average credit rating of 3.2, compared to 3.1 as of September 30, 2021 and 3.2 as of December 31, 2020, respectively, with 4 being the highest credit quality rating and 3 being the rating for a standard level of risk.  A rating of 2 represents an increased level of risk and, while no loss is currently anticipated for a 2-rated loan, there is potential for future loss of principal.  A rating of 1 represents deteriorating credit quality and high degree of risk of loss of principal.

As of December 31, 2021, there was one debt investment with an internal credit rating of 1, with a cost of $11.5 million and a fair value of $6.9 million.  As of September 30, 2021, there was one debt investment with an internal credit rating of 1, with a cost of $3.0 million and a fair value of $2.8 million.  As of December 31, 2020, there was one debt investment with an internal credit rating of 1, with a cost of $6.8 million and a fair value of $1.7 million.

Liquidity and Capital Resources

As of December 31, 2021, the Company had $71.4 million in available liquidity, consisting of $45.9 million in cash and money market funds, and $25.5 million in funds available under existing credit facility commitments.

As of December 31, 2021, there was $53.5 million in outstanding principal balance under our $125.0 million revolving credit facility (“Key Facility”).  The Key Facility allows for an increase in the total loan commitment up to an aggregate commitment of $150.0 million. There can be no assurance that any additional lenders will make any commitments under the Key Facility.

Additionally, as of December 31, 2021, there was $78.8 million in outstanding principal balance under our $100 million senior secured debt facility with a large U.S.-based insurance company at an interest rate of 4.62{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.  Subsequent to year-end 2021, the Company amended its senior secured debt facility, increasing the commitment by $100 million to enable its wholly-owned subsidiary to issue up to $200 million of secured notes.  The amendment to the facility extends the investment period to June 2023 and the maturity date to June 2028. In addition, the amendment, among other things, reduces the applicable margin used to calculate the credit facility’s interest rate on the Company’s borrowings above $100 million. Such borrowings will be priced at the three-year USD mid-market swap rate plus 3.00{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The facility is collateralized by certain of the Company’s assets.

Horizon Funding Trust 2019-1, a wholly-owned subsidiary of HRZN, previously issued $100.0 million of Asset-Backed Notes (the “Notes”) rated A+(sf) by Morningstar Credit Ratings, LLC.  The Notes bear interest at a fixed interest rate of 4.21{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} per annum and have a stated maturity date of September 15, 2027.   The reinvestment period of the Notes ended July 15, 2021 and the maturity is September 15, 2027. As of December 31, 2021, the Notes had an outstanding principal balance of $70.5 million.

During the three months ended December 31, 2021, the Company sold 784,718 shares of common stock under its ATM offering program with Goldman Sachs & Co. LLC and B. Riley FBR, Inc.  For the same period, the Company received total accumulated net proceeds of approximately $12.8 million, including $0.3 million of offering expenses, from these sales.

As of December 31, 2021, the Company’s debt to equity leverage ratio was 106{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}, within the Company’s 80-120{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} targeted leverage range.  The asset coverage ratio for borrowed amounts was 194{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}.

Liquidity Events

During the quarter ended December 31, 2021, Horizon experienced liquidity events from seven portfolio companies. Liquidity events for Horizon may consist of the sale of warrants or equity in portfolio companies, loan prepayments, sale of owned assets or receipt of success fees.

In October, Getaround, Inc. prepaid its outstanding principal balance of $25.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee.  HRZN continues to hold warrants in the company.

In October, Topia Mobility, Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee.  HRZN continues to hold warrants in the company.

In October, HRZN received warrant proceeds of $0.1 million from its investment in Education Elements, Inc.

In November, CVRx, Inc. prepaid its outstanding principal balance of $20.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee.  HRZN continues to hold warrants in the company.

In November, MVI (ABC), LLC (assignee of Stereovision Inc.) paid its outstanding principal balance of $3.5 million on its venture loan, plus interest. 

In December, HRZN received $7.0 million from the sale of its debt investment in Betabrand Corporation. 

In December, HRZN received cash proceeds of $0.3 million from the sale of shares in Qualtrics International Inc., which HRZN received in connection with the sale of Clarabridge, Inc.

Net Asset Value

At December 31, 2021, the Company’s net assets were $245.3 million, or $11.56 per share, compared to $212.6 million, or $11.02 per share, as of December 31, 2020. 

For the quarter ended December 31, 2021, net increase in net assets resulting from operations was $2.3 million, or $0.11 per share, compared to a net increase in net assets resulting from operations of $2.4 million, or $0.13 per share, for the quarter ended December 31, 2020.

Stock Repurchase Program

During the quarter ended December 31, 2021, the Company did not repurchase any shares of its common stock. From the inception of the stock repurchase program through December 31, 2021, the Company has repurchased 167,465 shares of its common stock at an average price of $11.22 on the open market at a total cost of $1.9 million.

Recent Developments

On January 7, 2022, the Company funded a $1.3 million debt investment to an existing portfolio company, Unagi Inc.

On January 21, 2022, the Company funded a $7.5 million debt investment to a new portfolio company, a developer of prescription digital diagnostic and therapeutic products focused on pediatric behavioral health conditions.

On January 26, 2022, the Company funded a $5.0 million debt investment to an existing portfolio company, Castle Creek Biosciences, Inc.

On January 28, 2022, the Company funded a $1.0 million debt investment to an existing portfolio company, Alula Holdings, Inc.

On February 1, 2022, the Company funded a $2.5 million debt investment to an existing portfolio company, Dropoff, Inc.

On February 7, 2022, the Company funded a $5.0 million debt investment to an existing portfolio company, Canary Medical Inc.

On February 10, 2022, the Company funded a $7.5 million debt investment to a new portfolio company, a software-enabled services provider focused on planning, migration, operation and automation of SAP in the cloud.

On February 11, 2022, Quip NYC Inc. prepaid its outstanding principal balance of $10.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in Quip NYC Inc.

On February 23, 2022, the Company funded a $2.5 million debt investment to an existing portfolio company, NextCar Holding Company, Inc.

On February 24, 2022, LiquiGlide, Inc. prepaid its outstanding principal balance of $2.0 million on its venture loan, plus interest, end-of-term payment and prepayment fee. The Company continues to hold warrants in LiquiGlide, Inc.

Monthly Distributions Declared in First Quarter 2022

On February 25, 2022, the Company’s board of directors declared monthly distributions of $0.10 per share payable in each of April, May and June 2022.  The following table shows these monthly distributions, which total $0.30 per share:

Monthly Distributions

Ex-Dividend Date

Record Date

Payment Date

Amount per Share

March 17, 2022

March 18, 2022

April 14, 2022

$0.10

April 18, 2022

April 19, 2022

May 16, 2022

$0.10

May 17, 2022

May 18, 2022

June 15, 2022

$0.10


Total:

$0.30

After paying distributions of $1.25 per share deemed paid for tax purposes in 2021, declaring on October 22, 2021 a distribution of $0.10 per share payable January 14, 2022, and generating taxable earnings of $1.48 per share in 2021, the Company’s undistributed spillover income as of December 31, 2021 was $0.51 per share. Spillover income includes any ordinary income and net capital gains from the preceding tax years that were not distributed during such tax years.

When declaring distributions, the Horizon board of directors reviews estimates of taxable income available for distribution, which may differ from consolidated net income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of spillover income carried over from a given year for distribution in the following year. The final determination of taxable income for each tax year, as well as the tax attributes for distributions in such tax year, will be made after the close of the tax year.

Conference Call

The Company will host a conference call on Wednesday, March 2, 2022, at 9:00 a.m. ET to discuss its latest corporate developments and financial results. To participate in the call, please dial (877) 407-9716 (domestic) or (201) 493-6779 (international). The access code for all callers is 13726805.  The Company recommends joining the call at least 10 minutes in advance.  In addition, a live webcast will be available on the Company’s website at www.horizontechfinance.com. 

A webcast replay will be available on the Company’s website for 30 days following the call.

About Horizon Technology Finance

Horizon Technology Finance Corporation (NASDAQ: HRZN) is a leading specialty finance company that provides capital in the form of secured loans to venture capital backed companies in the technology, life science, healthcare information and services, and sustainability industries. The investment objective of HRZN is to maximize its investment portfolio’s return by generating current income from the debt investments it makes and capital appreciation from the warrants it receives when making such debt investments. Horizon Technology Finance Management LLC is headquartered in Farmington, Connecticut, with a regional office in Pleasanton, California, and investment professionals located in Portland, Maine, Austin, Texas, and Reston, Virginia. To learn more, please visit www.horizontechfinance.com.

Forward-Looking Statements

Statements included herein may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in HRZN’s filings with the Securities and Exchange Commission. HRZN undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

Contacts:

Investor Relations:
ICR
Garrett Edson
[email protected] 
(860) 284-6450

Media Relations:
ICR
Chris Gillick
[email protected] 
(646) 677-1819

Horizon Technology Finance Corporation and Subsidiaries
Consolidated Statements of Assets and Liabilities
(Dollars in thousands, except share and per share data)


December 31,

December 31,

2021

2020





Assets



Non-affiliate investments at fair value (cost of $452,387 and $343,158, respectively)

$       458,075

$     343,498

Non-controlled affiliate investments at fair value (cost of $0 and $6,854, respectively)

—

7,547

Controlled affiliate investments at fair value (cost of $1,450 and $1,500, respectively)

—

1,500

Total investments at fair value (cost of $453,837 and $351,512, respectively)

458,075

352,545

Cash

38,054

19,502

Investments in money market funds

7,868

27,199

Restricted investments in money market funds

1,359

1,057

Interest receivable

6,154

4,946

Other assets

2,450

1,908

Total assets

$       513,960

$     407,157





Liabilities



Borrowings

$       257,613

$     185,819

Distributions payable

6,365

5,786

Base management fee payable

706

563

Incentive fee payable

2,015

975

Other accrued expenses

1,926

1,417

Total liabilities

268,625

194,560





Commitments and contingencies








Net assets



Preferred stock, par value $0.001 per share, 1,000,000 shares authorized, zero shares issued and outstanding as of December 31, 2021 and December 31, 2020

—

—

Common stock, par value $0.001 per share, 100,000,000 shares authorized, 21,384,925 and 19,453,821 shares issued and 21,217,460 and 19,286,356 shares outstanding as of December 31, 2021 and December 31, 2020, respectively

22

19

Paid-in capital in excess of par

301,359

271,287

Distributable earnings

(56,046)

(58,709)

Total net assets

245,335

212,597

Total liabilities and net assets

$       513,960

$    407,157

Net asset value per common share

$           11.56

$        11.02






Horizon Technology Finance Corporation and Subsidiaries
Consolidated Statements of Operations
(Dollars in thousands, except share and per share data)


For the Three Months Ended

For the Year Ended

December 31,

December 31,

2021

2020

2021

2020

Investment income







Interest income on investments







Interest income on non-affiliate investments

$        15,194

$          9,217

$         54,159

$        41,503

Interest income on affiliate investments

39

157

252

689

Total interest income on investments

15,233

9,374

54,411

42,192

Fee income







Prepayment fee income on non-affiliate investments

1,651

434

4,111

2,345

Fee income on non-affiliate investments

61

223

1,481

1,335

Fee income on affiliate investments

—

35

12

45

Total fee income

1,712

692

5,604

3,725

Dividend income







Dividend income on controlled affiliate investments

—

—

—

118

Total dividend income

—

—

—

118

Total investment income

16,945

10,066

60,015

46,035

Expenses







Interest expense

3,253

2,342

12,034

9,673

Base management fee

2,022

1,593

7,617

6,458

Performance based incentive fee

2,015

975

7,055

5,187

Administrative fee

456

276

1,285

1,016

Professional fees

544

445

1,892

1,540

General and administrative

369

312

1,511

1,190

Total expenses

8,659

5,943

31,394

25,064

Net investment income before excise tax

8,286

4,123

28,621

20,971

Provision for excise tax

227

222

401

222

Net investment income

8,059

3,901

28,220

20,749









Net realized and unrealized loss on investments







Net realized loss on non-affiliate investments

(486)

(18,644)

(2,858)

(14,686)

Net realized loss on non-controlled affiliate investments

(390)

—

(390)

—

Net realized loss on controlled affiliate investments

—

—

—

(12)

Net realized loss on investments

(876)

(18,644)

(3,248)

(14,698)

Net realized loss on extinguishment of debt

—

—

(395)

—

Net realized loss

(876)

(18,644)

(3,643)

(14,698)

Net unrealized (depreciation) appreciation on non-affiliate investments

(4,811)

17,020

5,503

1,585

Net unrealized appreciation (depreciation) on non-controlled affiliate investments

1,019

120

(848)

(1,014)









Net unrealized depreciation on controlled affiliate investments

(1,125)

—

(1,450)

(258)

Net unrealized (depreciation) appreciation on investments

(4,917)

17,140

3,205

313

Net realized and unrealized loss

(5,793)

(1,504)

(438)

(14,385)









Net increase in net assets resulting from operations

$            2,266

$            2,397

$         27,782

$          6,364

Net investment income per common share

$              0.39

$              0.21

$             1.41

$            1.18

Net increase in net assets per common share

$              0.11

$              0.13

$             1.39

$            0.36

Distributions declared per share

$              0.35

$              0.30

$             1.25

$            1.25

Weighted average shares outstanding

20,622,770

18,794,836

20,027,420

17,534,528

SOURCE Horizon Technology Finance Corporation

Posted on

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Strategists on Wall Street have noted that numerous of the new put alternatives have been bought and marketed on the similar day, indicating traders are not basically attempting to hedge them selves from a sell-off. Rather, it indicators they are attempting to earnings from intraday swings in solutions price ranges.

Preston Seo, a US-based YouTube influencer, not too long ago surveyed his followers and said most of them declare to be looking for bargains, but that they are flooding his inbox with messages inquiring for direction.

“Lots of these young buyers on the surface might seem to be assured in ‘buying the dip’. But at the rear of closed doorways, they are obtaining anxious because they very likely haven’t faced a downturn like this before,” Search engine optimization reported.

The danger of larger interest fees has served gasoline that anxiousness. The Fed this 7 days indicated it would in March elevate fees for the first time since 2018, with chair Jay Powell leaving the door open to even more aggressive motion to tame inflation and amazing a rapid-increasing financial system.

“People who place all the things in there will discover out there’s no shortcut to riches . . . this variety of speculative fervour ultimately unwinds,” reported Randy Frederick, controlling director of investing and derivatives at Charles Schwab. “The superior issue is it hasn’t taken out the complete sector.”

Frederick extra that the recent reversal would offer a severe lesson for any new traders who centered their investments in a smaller range of assets.

“Every technology has to master those faults on their possess, no make any difference how significantly individuals of us who’ve been all over a while will check out to alert them,” he mentioned. “It’s a somewhat diverse recreation each and every time but the close is constantly the very same. The difficult issue is pinpointing when it is likely to happen.”

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Professional Financial Advisors, LLC Buys iShares 20+ Year Treasury Bond ETF, Vanguard Total …

Investment company Professional Financial Advisors, LLC (Current Portfolio) buys iShares 20+ Year Treasury Bond ETF, Vanguard Total World Bond ETF, Vanguard Intermediate-Term Bond ETF, Western Asset Total Return ETF, iShares 7-10 Year Treasury Bond ETF, sells Dollar Tree Inc, SPDR Gold Shares ETF, Invesco Preferred ETF, Calamos Dynamic Convertible and Income Fund, Barclays Bank PLC ZC SP REDEEM 12/06/2036 USD 50 during the 3-months ended 2021Q4, according to the most recent filings of the investment company, Professional Financial Advisors, LLC. As of 2021Q4, Professional Financial Advisors, LLC owns 480 stocks with a total value of $231 million. These are the details of the buys and sells.

  • New Purchases: TLT, BNDW, BIV, WBND, IEF, BND, FBND, SHY, MEAR, SPAB, CWB, MUB, FMB, IAGG, HYD, TEAM, RWK, AGG, RIGS, GOVT, SPTL, AGGY, VMW, VGSH, LQD, USFR, SCHJ, SPIB, HYLB, CP, IGLB, NEAR, WFHY, MBB, MTGP, STIP, SPTS, SPTI, SFIG, SPIP, SHYG, FFTI, IAC, AMR, FREY, AGZ, IGIB, TDG, DFAX, GE, FLOT, FALN, GILD, VGIT, LBRDK, SRLN, STOR, FNF, PHUN, SPSB, CMCSA, NYC, NYC, SPHY, VMEO, ME, BOND, SCHI, CURE, PFIG, MUNI, EBND, ELD, EMB, EMXC,

  • Added Positions: DGRO, AMZN, SPTM, VXUS, SNOW, MTUM, VGK, VIGI, ROKU, IQLT, VNQ, SPY, IMTM, QQQ, PYPL, VEU, XSOE, V, SMMV, IVV, EFG, VBK, GAA, DGRE, SQ, XLSR, FFTG, AOR, SMAR, VOE, SPEM, CHTR, MELI, XLE, NTSX, SYLD, IEMG, VIOV, SCHX, COMT, BKE, F, SPOK, ET, TSLA, PSX, FSK, ACWF, SCHE, EMGF, ESGU, EWX, GWX, IRBO, ITOT, IYLD, RODM,

  • Reduced Positions: VOO, DLTR, GLD, PGX, CCD, GSP, MA, DBC, VTI, MSFT, NOW, KKR, VT, GOOG, ACWV, KMX, IJR, SCHW, SCZ, SPDW, VWO, SPLG, SPSM, ACIM, SE, ARGX, GOOGL, ISRG, DIS, SPVU, SPMD, VYMI, VUG, RWO, BNSO, TCTL, KOIN, FYC, FTEC, EEM, IGSB, BLOK, ARKK, UAL, TRMB, LUV, SNBR, CRM, NFLX, DISH, KO,

  • Sold Out: IWM, KSU, ENBL, KRNT, NKLA, IMOM, FATE, BLPH, HWM, TWST, PTON, BTEC, EWJ, XPH,

For the details of Professional Financial Advisors, LLC’s stock buys and sells,
go to https://www.gurufocus.com/guru/professional+financial+advisors{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}2C+llc/current-portfolio/portfolio

These are the top 5 holdings of Professional Financial Advisors, LLC

  1. SPDR Portfolio S&P 1500 Composite Stock Market ETF (SPTM) – 883,327 shares, 22.32{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total portfolio. Shares added by 1.58{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

  2. Vanguard Total Stock Market ETF (VTI) – 62,201 shares, 6.49{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total portfolio. Shares reduced by 1.32{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

  3. Vanguard S&P 500 ETF (VOO) – 32,704 shares, 6.17{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total portfolio. Shares reduced by 11.99{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

  4. iShares 20+ Year Treasury Bond ETF (TLT) – 69,272 shares, 4.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total portfolio. New Position

  5. iShares Core Dividend Growth ETF (DGRO) – 153,774 shares, 3.69{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total portfolio. Shares added by 26.56{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

New Purchase: iShares 20+ Year Treasury Bond ETF (TLT)

Professional Financial Advisors, LLC initiated holding in iShares 20+ Year Treasury Bond ETF. The purchase prices were between $141.01 and $154.18, with an estimated average price of $147.11. The stock is now traded at around $140.100000. The impact to a portfolio due to this purchase was 4.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 69,272 shares as of 2021-12-31.

New Purchase: Vanguard Total World Bond ETF (BNDW)

Professional Financial Advisors, LLC initiated holding in Vanguard Total World Bond ETF. The purchase prices were between $77.99 and $79.21, with an estimated average price of $78.59. The stock is now traded at around $77.115000. The impact to a portfolio due to this purchase was 3.44{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 101,328 shares as of 2021-12-31.

New Purchase: Vanguard Intermediate-Term Bond ETF (BIV)

Professional Financial Advisors, LLC initiated holding in Vanguard Intermediate-Term Bond ETF. The purchase prices were between $86.61 and $88.24, with an estimated average price of $87.57. The stock is now traded at around $85.500000. The impact to a portfolio due to this purchase was 2.02{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 53,441 shares as of 2021-12-31.

New Purchase: Western Asset Total Return ETF (WBND)

Professional Financial Advisors, LLC initiated holding in Western Asset Total Return ETF. The purchase prices were between $25.98 and $26.65, with an estimated average price of $26.32. The stock is now traded at around $25.568200. The impact to a portfolio due to this purchase was 1.77{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 156,127 shares as of 2021-12-31.

New Purchase: iShares 7-10 Year Treasury Bond ETF (IEF)

Professional Financial Advisors, LLC initiated holding in iShares 7-10 Year Treasury Bond ETF. The purchase prices were between $113.36 and $116.25, with an estimated average price of $114.77. The stock is now traded at around $111.730000. The impact to a portfolio due to this purchase was 1.53{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 30,832 shares as of 2021-12-31.

New Purchase: Vanguard Total Bond Market ETF (BND)

Professional Financial Advisors, LLC initiated holding in Vanguard Total Bond Market ETF. The purchase prices were between $84.07 and $85.48, with an estimated average price of $84.79. The stock is now traded at around $82.790000. The impact to a portfolio due to this purchase was 0.9{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 24,661 shares as of 2021-12-31.

Added: iShares Core Dividend Growth ETF (DGRO)

Professional Financial Advisors, LLC added to a holding in iShares Core Dividend Growth ETF by 26.56{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The purchase prices were between $50.15 and $55.68, with an estimated average price of $53.18. The stock is now traded at around $54.450000. The impact to a portfolio due to this purchase was 0.77{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 153,774 shares as of 2021-12-31.

Added: Amazon.com Inc (AMZN)

Professional Financial Advisors, LLC added to a holding in Amazon.com Inc by 113.50{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The purchase prices were between $3189.78 and $3696.06, with an estimated average price of $3427.48. The stock is now traded at around $3178.350000. The impact to a portfolio due to this purchase was 0.39{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 506 shares as of 2021-12-31.

Added: Vanguard Total International Stock (VXUS)

Professional Financial Advisors, LLC added to a holding in Vanguard Total International Stock by 20.28{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The purchase prices were between $61.08 and $65.1, with an estimated average price of $63.41. The stock is now traded at around $63.130000. The impact to a portfolio due to this purchase was 0.14{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 31,044 shares as of 2021-12-31.

Added: Snowflake Inc (SNOW)

Professional Financial Advisors, LLC added to a holding in Snowflake Inc by 2403.13{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The purchase prices were between $294.68 and $401.89, with an estimated average price of $349.27. The stock is now traded at around $287.680000. The impact to a portfolio due to this purchase was 0.12{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 801 shares as of 2021-12-31.

Added: Vanguard FTSE Europe ETF (VGK)

Professional Financial Advisors, LLC added to a holding in Vanguard FTSE Europe ETF by 51.68{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The purchase prices were between $64.49 and $69.3, with an estimated average price of $67.12. The stock is now traded at around $67.310000. The impact to a portfolio due to this purchase was 0.09{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 9,031 shares as of 2021-12-31.

Added: Vanguard Real Estate Index Fund ETF (VNQ)

Professional Financial Advisors, LLC added to a holding in Vanguard Real Estate Index Fund ETF by 31.36{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The purchase prices were between $101.58 and $116.01, with an estimated average price of $108.38. The stock is now traded at around $108.320000. The impact to a portfolio due to this purchase was 0.07{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. The holding were 5,605 shares as of 2021-12-31.

Sold Out: iShares Russell 2000 ETF (IWM)

Professional Financial Advisors, LLC sold out a holding in iShares Russell 2000 ETF. The sale prices were between $212.12 and $241.83, with an estimated average price of $225.48.

Sold Out: (KSU)

Professional Financial Advisors, LLC sold out a holding in . The sale prices were between $276.49 and $311.4, with an estimated average price of $299.1.

Sold Out: Alpha Architect International Quantitative Momentu (IMOM)

Professional Financial Advisors, LLC sold out a holding in Alpha Architect International Quantitative Momentu. The sale prices were between $32.64 and $35.34, with an estimated average price of $34.02.

Sold Out: (ENBL)

Professional Financial Advisors, LLC sold out a holding in . The sale prices were between $6.95 and $8.68, with an estimated average price of $8.06.

Sold Out: Nikola Corp (NKLA)

Professional Financial Advisors, LLC sold out a holding in Nikola Corp. The sale prices were between $9.25 and $15.44, with an estimated average price of $11.12.

Sold Out: Kornit Digital Ltd (KRNT)

Professional Financial Advisors, LLC sold out a holding in Kornit Digital Ltd. The sale prices were between $129.77 and $176.4, with an estimated average price of $153.98.

Here is the complete portfolio of Professional Financial Advisors, LLC. Also check out:

1. Professional Financial Advisors, LLC’s Undervalued Stocks

2. Professional Financial Advisors, LLC’s Top Growth Companies, and

3. Professional Financial Advisors, LLC’s High Yield stocks

4. Stocks that Professional Financial Advisors, LLC keeps buyingThis article first appeared on GuruFocus.