Stellus Capital Investment Corp (SCM) 2025 Q2 法說會逐字稿

Good morning ladies and gentlemen and thank you for standing by. At this time, I would like to welcome everyone to Stella's Capital Investment Corporation's conference call to report financial results for its second fiscal quarter ended June 30, 2025.

女士們、先生們，早安，謝謝你們的支持。現在，我歡迎大家參加 Stella's Capital Investment Corporation 的電話會議，報告截至 2025 年 6 月 30 日的第二財季財務表現。

(Operator Instructions) As a reminder, this conference is being recorded today, August 7, 2025. It is now my pleasure to turn the floor over to Mr. Robert Ladd, Chief Executive Officer of Stella's Capital Investment Corporation. Mr. Ladd, you may begin your conference.

（操作員指示）提醒一下，本次會議將於今天（2025 年 8 月 7 日）進行錄製。現在我很高興將發言權交給 Stella's Capital Investment Corporation 執行長羅伯特拉德先生。拉德先生，您可以開始您的會議了。

Yeah, thank you, Ali. Good morning, everyone, and thank you for joining our call. Welcome to our conference call covering the quarter end of June 30, 2025. Joining me this morning is Todd Huskinson, our Chief Financial Officer, who will cover important information about forward-looking statements as well as an overview of our financial information.

是的，謝謝你，阿里。大家早安，感謝你們參加我們的電話會議。歡迎參加我們截至 2025 年 6 月 30 日季度末的電話會議。今天早上與我一起的是我們的財務長 Todd Huskinson，他將介紹前瞻性聲明的重要資訊以及我們的財務資訊概述。

Thank you, Rob. I'd like to remind everyone that today's call is being recorded. Please note that this call is the property of Stellus Capital Investment Corporation and that any unauthorized broadcast of this call in any form is strictly prohibited.

謝謝你，羅布。我想提醒大家，今天的通話正在錄音。請注意，本次通話屬於 Stellus Capital Investment Corporation 的財產，嚴禁以任何形式未經授權播放本次通話。

Audio replay of the call will be available by using the telephone number and pin provided in our press release announcing this call. I'd also like to turn your attention to the customary Safe Harbor disclosure in our press release regarding forward-looking information.

您可以使用我們宣布此通話的新聞稿中提供的電話號碼和密碼來收聽此通話的音訊回放。我還想提請您注意我們新聞稿中有關前瞻性資訊的常規安全港披露。

Today's conference call may also include forward-looking statements and projections, and we ask that you refer to our most recent filing with the SEC for important factors that could cause actual results to differ materially from these projections.

今天的電話會議可能還包括前瞻性陳述和預測，我們請您參考我們最近向美國證券交易委員會提交的文件，以了解可能導致實際結果與這些預測有重大差異的重要因素。

We will not update any forward-looking statements unless required by law to obtain copies of our latest SEC filings, please visit our website at www.stelluscapital.com under the Public Investors link or call us at 713-292-5400.

除非法律要求獲取我們最新的 SEC 文件的副本，否則我們不會更新任何前瞻性聲明，請訪問我們的網站 www.stelluscapital.com 下的公共投資者連結或致電 713-292-5400。

Now I'll cover operating results for the quarter, but I would like to start with our life-to-date activity. Since our IPO in November 2012, we've invested approximately $2.7 billion in over 210 companies and received approximately $1.7 billion of repayments while maintaining stable asset quality.

現在我將介紹本季的經營業績，但我想從我們迄今為止的活動開始。自 2012 年 11 月首次公開募股以來，我們已向 210 多家公司投資了約 27 億美元，並獲得了約 17 億美元的回報，同時保持了穩定的資產品質。

We've paid $306 million of dividends to our investors, which represents $17.35 per share to an investor in our IPO in November 2012, which was offered at $15 per share.

我們已向投資者支付了 3.06 億美元的股息，相當於向 2012 年 11 月首次公開募股 (IPO) 中的一位投資者支付了每股 17.35 美元的股息，當時的發行價為每股 15 美元。

Turning now to the quarterly operating results in the second quarter, we generated $0.34 per share of GAAP net investment income and core net investment income is $0.35 per share, which excludes estimated excise taxes.

現在來看看第二季的季度經營業績，我們產生了每股 0.34 美元的 GAAP 淨投資收益，核心淨投資收益為每股 0.35 美元，其中不包括估計的消費稅。

Net asset value per share decreased $0.04 during the quarter due to the reduction spillover income. During the quarter, we issued approximately 300,000 shares for $3.9 million of proceeds under our ATM program. Year-to-date we've issued approximately 900,000 shares, $13.2 million and all issuances were above net asset value.

由於溢出收入減少，本季每股淨資產價值下降 0.04 美元。在本季度，我們根據 ATM 計劃發行了約 30 萬股股票，收益為 390 萬美元。今年迄今，我們已發行約 90 萬股，總價值 1,320 萬美元，所有發行額均高於淨資產價值。

Turning to portfolio and asset quality, we ended the quarter with an investment portfolio at fair value of $985.9 million across 112 portfolio companies, slightly down from $991 million across 110 companies as of March 31, 2025.

談到投資組合和資產質量，本季末，我們投資組合中的 112 家公司的公允價值為 9.859 億美元，略低於 2025 年 3 月 31 日 110 家公司的 9.91 億美元。

During the second quarter, we invested $15.4 million in three new portfolio companies and had $7.4 million in other investment activity a par. We also received two full repayments totalling $21.7 million.01 equity realization totalling $500,000 which resulted in a realized gain of $200,000 and we received $10.4 million of other repayments all on par.

第二季度，我們向三家新的投資組合公司投資了 1,540 萬美元，其他投資活動投資金額也達到 740 萬美元。我們還收到了兩筆全額還款，總額為 2,170 萬美元。 01 股權實現總額為 50 萬美元，實現了 20 萬美元的收益，並且我們收到了 1040 萬美元的其他還款，全部等值。

On June 30, 98% of our loans were secured and 91% were priced at floating rates. The average loan for a company is $9.2 million and the largest overall investment is $21.2 million both at fair value. All but one of our portfolio companies are backed by a private equity firm.

截至 6 月 30 日，我們的貸款中有 98% 是有擔保的，其中 91% 的貸款以浮動利率計價。一家公司的平均貸款額為 920 萬美元，最大總投資額為 2,120 萬美元，兩者均以公允價值計算。除一家外，我們投資組合中的所有公司均由私募股權公司支持。

Overall, our asset quality is slightly better than planned. At fair value, 84% of our portfolio is rated a one or a two or on or ahead of plan and 16% of the portfolio is marked at an investment category of three or below, meaning not meeting plan or expectations. We did not add any new loans to our non-accrual list during the quarter.

整體來看，我們的資產品質略優於預期。以公允價值計算，我們 84% 的投資組合被評為一或二，或達到或超過計劃，16% 的投資組合被評為三或以下的投資類別，這意味著未達到計劃或預期。本季我們沒有在非應計貸款清單中新增任何新貸款。

We did not add any new loans to our nonaccrual list during the quarter. Currently, we have loans to five portfolio companies on nonaccrual, which comprised 6.8% of the total cost and 3.8% of the fair value of the total loan portfolio, respectively, which represents a decrease from the prior quarter.

本季我們沒有在未提列貸款清單中新增任何新貸款。目前，我們向五家投資組合公司提供了非應計貸款，分別佔貸款組合總成本的 6.8% 和公允價值的 3.8%，較上一季下降。

With respect to capital, as a reminder, we've received a greenlight letter from the Small Business Administration for Stellus Capital SBIC III. This is an important step in the process, and we, therefore, expect to receive a license, although it's not guaranteed.

關於資本，需要提醒的是，我們已收到美國小型企業管理局對 Stellus Capital SBIC III 的批准函。這是流程中的重要一步，因此我們希望獲得許可，儘管這並不能保證。

In general, as our existing debentures are repaid, we intend to draw new leverage under the SBIC III license to continue funding qualifying portfolio company investments, and with that I'll turn it back over to Rob to discuss the overall outlook.

總體而言，隨著我們現有債券的償還，我們打算根據 SBIC III 許可證獲取新的槓桿，繼續為合格的投資組合公司投資提供資金，然後我將把話題轉回給 Rob 來討論整體前景。

Okay. Thank you, Todd. As we look ahead of the third quarter of 2025, I'll cover portfolio growth, equity realizations and dividends. Investment activity has picked up meaningfully over the past 30 days or so. We expect the second half of the year to be busy as evidenced by the $26 million of new fundings since June 30.

好的。謝謝你，托德。展望 2025 年第三季度，我將介紹投資組合成長、股權實現和股利。過去 30 天左右，投資活動明顯回升。我們預計下半年將會很繁忙，因為自 6 月 30 日以來的新融資額為 2,600 萬美元。

Our portfolio now stands at approximately $1 billion with 113 companies, now our largest number. And based on new fundings and repayments, we should end the quarter at about the same level. With M&A activity picking up, we expect to see more equity realizations over the next five months.

我們的投資組合目前約為 10 億美元，涵蓋 113 家公司，這是我們目前最大的投資組合。根據新的融資和償還情況，我們本季的業績應該會維持在同一水準。隨著併購活動的回升，我們預計未來五個月將看到更多的股權實現。

Our best estimate today is $12 million of proceeds and approximately $10 million of gains. Finally, regarding dividends, we declared the dividend for the third quarter of $0.40 per share payable monthly.

我們今天的最佳估計是收益 1200 萬美元，收益約 1000 萬美元。最後，關於股息，我們宣布第三季股息為每股 0.40 美元，每月支付。

We expect the fourth quarter to also be payable at this $0.40 per share rate for the quarter, again, payable monthly, of course, subject to Board approval. And with that, we'll open up for questions. And Ali, you may begin the question-and-answer session, please.

我們預計第四季也將以每股 0.40 美元的利率支付，同樣按月支付，當然，需經董事會批准。接下來，我們將開始回答問題。阿里，請您開始問答環節。

(Operator Instructions) Christopher Nolan, Landenburg Thalmann.

（操作員指示）克里斯多福諾蘭、蘭登堡塔爾曼。

Hey guys.

嘿，大家好。

Good morning, Chris.

早上好，克里斯。

The EPS is not covering the dividend for the last few quarters. Two questions. How much spillover is there left over? And what's the strategy in terms of increasing your leverage to cover the dividend?

過去幾季的每股收益尚未覆蓋股息。兩個問題。還剩下多少溢出？那麼，增加槓桿以支付股息的策略是什麼？

Yeah, Todd, why don't you cover this spill over and then I'll cover the question about leverage.

是的，托德，你為什麼不先討論一下這個溢出問題，然後我再討論一下有關槓桿的問題。

Okay. Yeah, sounds good, Rob. So, good morning, Chris with respect to spillover, so this year, we have just under $45 million of spillover that we are working off through the dividend. And then going into next year, for next year's amount, we expect it to be about $38 million, and we'll continue to kind of reduce it from there. So that's what we're working on with respect to the dividend.

好的。是的，聽起來不錯，羅布。早安，克里斯，關於溢出效應，今年，我們有近 4500 萬美元的溢出效應，我們正在透過股息來抵消。然後進入明年，我們預計明年的金額約為 3800 萬美元，並且我們將繼續在此基礎上減少金額。這就是我們在股息方面所做的工作。

And then, Chris, relative to use of leverage. So we're currently running at about 0.9times on a regulatory test and total leverage for GAAP of about 1.7times. Our target leverage, we've stated for a good while is about one to one on the regulatory test. So, we don't intend to change that in the near term. So, we have the capacity to move leverage up through the use of our bank facility.

然後，克里斯，關於槓桿的使用。因此，我們目前的監管測試槓桿率約為0.9倍，而以美國通用會計準則（GAAP）計算的總槓桿率約為1.7倍。我們先前一直強調的目標槓桿率，在監管測試中約為1:1。因此，我們不打算在短期內改變這一點。因此，我們有能力利用銀行工具來提高槓桿率。

We expect that we have the capital base to really take the portfolio what is currently about $1 billion, up $50 million to $75 million higher over time. Is that helpful?

我們預計，我們擁有足夠的資本基礎，使投資組合從目前的約 10 億美元，隨著時間的推移增加 5,000 萬美元至 7,500 萬美元。這樣有幫助嗎？

Yes, it is. And just as a quick follow up for the SBIC III lights, how much of your deal flow is eligible for the SBIC and how quickly do you think you can fill that?

是的。作為 SBIC III 燈號的快速跟進，您的交易流程中有多少符合 SBIC 的資格，您認為您多快可以滿足這些要求？

Yes, interestingly, historically, roughly half of what we look at qualifies, so it's a meaningful part of our of our deal flow and an important aspect of the company.

是的，有趣的是，從歷史上看，我們所關注的大約有一半符合條件，因此這是我們交易流程中一個有意義的一部分，也是公司的重要方面。

So you can wrap that up pretty quick order, I'd imagine.

所以我想你可以很快完成訂單。

Yes, so this is helpful for us, and you know we anticipate we'll be able to get it approved as Todd indicated.

是的，這對我們有幫助，而且您知道我們預計我們能夠獲得批准，正如托德所說的那樣。

Great, that's it for me thank you.

太好了，對我來說就這樣了，謝謝。

Okay, thanks Chris.

好的，謝謝克里斯。

Eric Zwick, Lucid Capital Markets.

Eric Zwick，Lucid Capital Markets。

Good morning, Eric.

早安，埃里克。

Hey, good morning, this is [Justin] I'm for Eric today. Rob, just going off your comments, obviously good momentum to start the quarter with some sizable new investments, just curious how the pipeline's looking for the remainder of the year and where you're seeing opportunities, whether that's new or add on investments.

嘿，早安，我是 [Justin]，今天我來為 Eric 服務。羅布，根據您的評論，本季開始時顯然勢頭良好，有一些相當大的新投資，只是好奇今年剩餘時間的渠道情況如何，以及您在哪裡看到機會，無論是新的還是附加的投資。

Yes. So again, as I indicated, quite a pickup in M&A activity. It looked like it started to happen after July 4. The -- I guess, the noise around the tariffs has quieted some, although there's more in the news in the last couple of days. But I think that certainly, private equity firms with whom we work exclusively are much more active in the marketplace looking at opportunities.

是的。因此，正如我所指出的，併購活動大幅增加。看起來這件事是在 7 月 4 日之後開始發生的。我想，圍繞關稅的喧囂已經平息了一些，儘管最近幾天有更多新聞報導。但我認為，與我們獨家合作的私募股權公司在市場上更積極尋找機會。

So, things have picked up meaningfully. So again, we would expect, and our pipeline runs typically, I'd say, 10 opportunities at a time that are very actionable, and we see five to seven new opportunities a week. So, we're very busy, but also very selective. So, I do think we've got the ability to continue to grow here. And as indicated, we have the capital to grow as well.

所以，事情已經明顯好轉。因此，我們再次期望，我們的管道通常每次都會有 10 個非常可行的機會，而且我們每週都會看到 5 到 7 個新的機會。所以，我們非常忙，但也非常挑剔。所以，我確實認為我們有能力在這裡繼續發展。如圖所示，我們也擁有發展的資本。

As part of that, though, of course, we would expect repayments to speed up, which have been slower this year. But we think, notwithstanding the repayments expected, we'll be able to grow the portfolio between now and the end of the calendar year.

當然，作為其中的一部分，我們預計還款速度會加快，但今年的還款速度較慢。但我們認為，儘管需要償還貸款，但從現在到年底，我們仍能擴大投資組合。

Okay. That's great. And then just a follow-up on credit quality. I know you guys can't disclose much given the private aspect of all your portfolio companies. But any insight into any potential resolutions or progress that's being made with the current nonaccrual list?

好的。那太棒了。然後只是對信用品質的跟進。我知道，考慮到你們所有投資組合公司的私密性，你們不能透露太多資訊。但是，對於目前不累積清單可能帶來的任何解決方案或進展，您有什麼見解嗎？

Yeah, the -- and thanks for noting the privacy aspect continue to work through them. I'll have private equity firms associated with them, backing them, so we'll need more time, but fortunately this quarter, Todd noted we had no new non-accruals.

是的，感謝您注意到隱私問題將繼續解決。我會讓他們與私募股權公司合作，為他們提供支持，因此我們需要更多時間，但幸運的是，本季度，托德指出我們沒有新的非應計專案。

So, I think they'll all take more time, but I think generally in a good spot and where necessary, we'll get more involved in the situation to make sure the company continues, but our experience has been good private equity firms that we deal with typically put money and new money in a couple of times to support their businesses. So these are ones working through that system, if you will.

所以，我認為它們都需要更多時間，但我認為一般來說，在良好的情況下和必要時，我們會更多地參與其中，以確保公司繼續發展，但我們的經驗是，我們打交道的優秀私募股權公司通常會投入資金和新資金幾次來支持他們的業務。所以如果你願意的話，這些都是透過這個系統工作的。

Okay, great, that's all for me because I thanks for taking my questions.

好的，太好了，我說的就這些，感謝您回答我的問題。

Yeah, thank you, Justin.

是的，謝謝你，賈斯汀。

Robert Dodd, Raymond James.

羅伯特多德、雷蒙德詹姆斯。

Hi guys.

嗨，大家好。

Good morning, Robert.

早上好，羅伯特。

On good morning how you doing? On the potential equity realizations, that I think you mentioned, maybe $12 million in proceeds, $10 million in gains in the second half of the year. What's the level of confidence on that because I mean it does, if the market activity is picked up, but --

早安，你好嗎？關於您提到的潛在股權實現，可能是 1200 萬美元的收益，下半年的收益為 1000 萬美元。對此的信心程度如何？我的意思是，如果市場活動回升，那麼--

Who knows, like, I mean, how high is the confidence level on realizing them this year? I mean, if they don't get realized this year, then it just happens later, but, what, what's kind of how -- how's you’re feeling on the certainty of those things actually happening this year.

誰知道，例如，我的意思是，今年實現這些目標的信心程度有多高？我的意思是，如果這些事情今年沒有實現，那麼以後就會發生，但是，你對這些事情今年實際發生的確定性感覺如何。

Sure. Sure, Robert. Yes, it's a great question. So when we indicate and forecast, again, things can change. Those are businesses that are in the market being marketed, some further along than others, but all are being actively marketed by a banker or by a company.

當然。當然，羅伯特。是的，這是一個很好的問題。因此，當我們再次指出和預測時，事情可能會發生變化。這些是市場上正在進行行銷的企業，有些企業比其他企業走得更遠，但所有企業都在由銀行家或公司積極行銷。

So we would -- and all are well-performing businesses. So we think the likelihood would be high.

所以我們會——而且所有企業都是表現良好的企業。因此我們認為可能性很高。

And sometimes things don't happen. But -- and also, there could be things that we're not aware of, especially if we're just in an equity-only position, don't have the debt instrument anymore. But we say fairly high, again, based on active marketing by the companies.

但有時事情並不會真正發生。但是——而且，可能還有一些我們沒有意識到的事情，特別是如果我們只是處於股權狀態，不再擁有債務工具。但我們再次強調，這是基於公司積極的行銷。

Got it. Got it. And then if I can go to the -- not so much the nonaccrual side, but the 15% of the portfolio is rated three or lower, i.e., not meeting plan. I mean if we exclude the nonaccruals because those have obviously already are having their issues currently, what -- how much of the remainder of that are you seriously nervous about versus -- yes, it's not meeting plan, but we're not that worried kind of thing?

知道了。知道了。然後，如果我可以轉到 - 不是非應計方面，而是投資組合的 15％ 評級為三或更低，即不符合計劃。我的意思是，如果我們排除不提列項目，因為這些項目目前顯然已經存在問題，那麼剩下的項目有多少讓您感到嚴重緊張？是的，它沒有達到計劃，但我們並不擔心這種事情？

Given its category of being a three, by definition, it means that we expect to receive all of our principal and all of the associated income to be a four, it would be we don't expect to receive the income and five to be we don't expect the income or all of the principal. So our current thinking is, by definition, we expect to receive all principal and income. That would be the best way to characterize it, I think, Robert.

鑑於其類別為三，根據定義，這意味著我們預計將收到所有本金和所有相關收入；類別為四，則表示我們預計不會收到收入；類別為五，則表示我們預計不會收到收入或所有本金。因此，我們目前的想法是，根據定義，我們希望收到所有本金和收入。我認為，這是描述它的最佳方式，羅伯特。

Okay, I appreciate that. And then if I can, one more just on that -- just kind of -- like you said, and your kind of partly addressed it, activity picked up after July 4, and meaningfully over the last 30 days. I mean, on the time frame because obviously some businesses take longer to do diligence than others. What, you said -- you expect to still grow the portfolio by year end?

好的，我很感激。然後，如果可以的話，我再就此再說一點 — — 就像你說的，你也部分提到了這一點，活動在 7 月 4 日之後開始回升，並且在過去 30 天裡顯著增加。我的意思是，在時間框架上，因為顯然有些企業比其他企業需要更長的時間來進行盡職調查。您說的是－您預計到年底投資組合還會成長嗎？

But how much uncertainty is in that given the pipeline and kind of, the timing of where we are with four months left in the year and these processes ramping up now and I'm not talking about the echo, it's just been kind of the pipeline?

但是考慮到管道的情況和時間安排，其中存在多少不確定性，今年還剩四個月，這些流程正在加速進行，我不是說迴聲，這只是管道的一種？

Sure, sure. So the pipeline, as indicated earlier, is quite robust. So a number of opportunities that are in what we would describe as a 75% or higher probability. So a lot in that bucket. And then a lot of things that we're looking at that given that we're here in August, all of which have a good chance if they move forward, and we're selected to certainly close by the fourth quarter.

當然，當然。因此，如前所述，該管道非常堅固。因此，我們所說的許多機會的機率為 75% 或更高。桶裡有很多東西。考慮到現在是八月份，我們正在考慮很多事情，如果這些事情能夠順利推進，那麼它們都有很好的機會，而且我們選擇在第四季度完成這些事情。

So again, it's hard to predict these things on both ends. We have found that repayments sometimes happen more quickly than new fundings, but we expect we'll have both and can grow the portfolio the balance of the year.

所以，再次強調，從兩端來看，預測這些事情都很困難。我們發現還款有時比新融資更快，但我們預期兩者兼得，並能在今年餘下時間增加投資組合。

Thank you.

謝謝。

Yeah, thank you, Robert.

是的，謝謝你，羅伯特。

Thank you. As we currently have no further questions on the lines at this time, I would like to hand the call back over to Mr. Ladd for any closing remarks.

謝謝。由於我們目前沒有其他問題，我想將電話交還給拉德先生，請他做最後發言。

Okay, thank you very much and thank you everyone for being on the call today and your support of our company, and we look forward to providing the update on our third quarter results, which will be in early November. Take care.

好的，非常感謝，也感謝大家今天的電話會議和對我們公司的支持，我們期待在 11 月初提供有關第三季度業績的最新消息。小心。

Thank you, ladies and gentlemen. This does conclude today's call. You may disconnect your lines at this time and have a wonderful day, and we thank you for your participation.

謝謝各位，女士們、先生們。今天的電話會議到此結束。此時您可以斷開線路並享受美好的一天，我們感謝您的參與。