AINV - Earnings call transcript Q1 2020 | MidCap Financial Investment Corporation

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Operator

Good afternoon and welcome to the Apollo Investment Corporation's Earnings Conference Call for the period ended June 30, 2019. At this time, all participants have been placed in a listen-only mode. The call will be opened for a question-and-answer session following the speakers' prepared remarks. [Operator Instructions]

I will now turn the call over to Elizabeth Besen, Investor Relations Manager for Apollo Investment Corporation.

Elizabeth Besen

thank for and us operator, you, you, joining everyone, today. Thank

Chief Widra, today's Investment Officer; Hunt, call on Chief Officer; Officer. are Greg Chief Speaking and Howard Executive President Tanner and Financial Powell,

recorded. this Corporation advise is everyone strictly any the call are they I'd to Information like any Please release. Apollo call your unauthorized audio about of that is press that customary like replay Investment to our note of form regarding that forward-looking and the in prohibited. I'd in today's to information. also webcast disclosure our call release being available and property attention in are earnings Harbor broadcast the Safe press

may forward-looking and call webcast conference Today's include statements.

to and to business statements results, our prospects future the statements as companies. and involve not Forward-looking risks prospects our our uncertainties, of portfolio including, limited but

shareholder our update of unless statements risks and law. copies may our adversely and You at affect our To please our www.apolloic.com. required do SEC should undertake website apply statement We business forward-looking reports or visit refer obtain projections to forward-looking make. statements not that for any by registration filings, that our we to

a I'd as Company's website, everyone remind like we financial the that performance. our financial also package information well on which posted about to information the contains supplemental portfolio, as

I'd this Howard to time, like At to turn over the Widra. call

Howard Widra

update followed I an by a brief strategy. of overview discuss of by results the our call the a begin business providing couple Elizabeth. today's quarter will highlights. then Thanks, I our financial execution will for additional investment on of

Greg then call then detail. quarter and in results our environment, the review on the our Tanner to We’ll also credit for remarks, financial update my Following discuss the activity market will provide questions. open will an quality. greater investment

fee Net for the result well to investment incentive net the reflects in investment impact impact Let total with quarter $XX return of the is down from results. portfolio, status, activity, $X.XX structure, per slight our our Net distribution incentive net impact as value in pay which the excess end net feature The as X.X% income share investment decrease accrual an offset investment quarter-over-quarter. partially which being as asset the as an on overview the by restored strong was share, loss no was in June, quarter. due the income me of the financial begin of stock of from for per fee well a buybacks. to at accretive

in was non-core to net the legacy portfolio attributable mostly our and The loss assets.

other in with importance million. compete of points We data scale is market a that New commitments as of totaled a with the a much to is AINV that wanted show which about often provide lender, market. quarter for able I of $XXX talk couple platform participants. the to particularly today's you broader part competitive major

Apollo million, quarter, platform investment than totaled end the more accounts. commitments activity the net over to of origination while strong XX Apollo quarter. of the across of billion a AINV X.XX small fundings was commitments, Net the lending The and the For $X.X vehicles and middle managed variety manages made billion currently direct new scale market in of allows in sizes. Net the platform relatively at increasing participate to during maintaining times $XXX larger quarter. hold leverage our commitments

the ratio we be to current leverage end Our expect net September. healthy, X.X pipeline and of is our by over currently times

asset of the portfolio our portfolio we lower highlight some how of metrics, our yielding we loans, following prudently requirement. demonstrate our now believe which adoption growing safer, will coverage lower I with are

corporate grew Our $XXX or million approximately portfolio XX% by lending quarter-over-quarter.

June, at XX% of Merx. end lending XX% of includes and Our the landing core the portfolio, in and positions portfolio which corporate corporate represented in XX% Merx total

year a of last XX% in the investments, portfolio to investments. lending in quarter debt of first lien from XX% lending up book the XX% corporate and ago. rate floating corporate is is XX% compared

the spreads asset continued to attachment leverage net average improve. point for and declined, portfolio’s weighted the quarter Although

We managed by to larger typically which continue in us our participate also to Apollo, take entities are funds with and advantage deals, which allows co-invest ability less of to competitive. other

to pursuant June, corporate made from to year our order increased quarter Investments last of XX% co-investment the at XX% XX% end a to ago. portfolio lending compared of the up and

has XX.X% life lending to based with sciences, last finance, entry the mid continue We barriers at cap deploy three capital a in now significant and X.X% the to portfolio represent niches quarter end areas ago. June, year XX.X% up lender financial asset from and expertise. which These and of in of

proactively concentration size to continue also manage and position We risk.

our Regarding portfolio. total calls, the to exposure Merx, in of our reducing as previous XX% discussed includes XX% to strategy on Merx

to During Merx net XX.X% exposure. reducing further $XX to million within portfolio to AINV XXX XXX Merx AINV’s from expect continue basis, to on in investment the our quarter, and range, or approximately of target we total XX.X% reduce repaid from million a the our million,

reducing assets. make and continue Additionally, progress exposure to our non-core we legacy to

the investments. focused and and March. Pelican the non-core remain During our positions. end at legacy represented portfolio assets on we XX% small at pay down June, from XX% gas We two oil received exiting of down prudently quarter, both of Non-core of the glacier, end from of a remaining the and our

NAV and generally to repurchase shareholders. open window stock. did we was buybacks periods. repurchase during during to to XXbX plan our value our present equity authorization an We our Moving repurchase blackout stock a of a plan, be typically We which allows what us as a believe both shares market portion allocate stock to our attractive opportunity component we below to to consider to of deliver on, the periods

discount have $X.XX end repurchase program end have our it outstanding, quarter, $XX.X of million to million The shares trade meaningful continue stock, through the share. Since approximately repurchased continue $XXX of currently to We inception XX.X% available we to approximately NAV. intend Since repurchase June company for per under repurchase should and initial the to stock. purchase or to of share continued the has the at a has authorization. our NAV June, current which added of the stock we in

share $X.XX to record XXXX. board per Turning of approved to of our XX, distribution distribution, September the a shareholders has as

Lastly, of the greatly support our earlier meeting annual shareholders its shareholders. today. We company appreciate held the

With market and will call to the I the our activity turn discuss environment the for quarter. investment that, to over Tanner

Tanner Powell

significant amount was capital. quarter, the still Howard. of solutions, Beginning deal borrowers private debt and Thanks, but debt the a more activity of market syndicated with the ‘XX the pickup much XXXX particularly first of environment, historical impacted by at loan for during half private consequently, the sought The end market some first given compared volatility issuance the slow to flow in saw of quarter standards.

the capital. direct environment always, competitive, continue As funds remains lending as to raise

rate to secondary the funds In loan continue about interest market, outflows the expectations to due cuts. experience

our investment on quarter, the sourced first activity floating direct corporate lien loans rate by the During focused platform. origination Apollo

respectively. New million fundings and XXX million investment were XXX and commitments

lien New of first rate were entirely comprised almost commitments floating loans.

range companies X.X weighted average times. These commitment The assets. our times, of target new XXX spread XXX range LIBOR were within across size over average for basis to to X.X X commitments incremental commitments net new points, for of million. was within The points XX was basis an average weighted new commitments our of leverage for $XX target XXX of

funded total our pursuant and XXX million resulting order. commitments exits new in Sales XX net activity activity. million Merx were million, repayments investment million, totaled XX totaled co-investment of and excluding to made revolver of of XX% for Lastly, XX

XXX,XXX As from and repayments Howard a from and including repayment Gas Glacier a million mentioned, a [indiscernible], million few investments, $X Pelican $X we received and a Oil legacy non-core from modest from repayment Energy. repayment

of XX In addition, net fundings and on fundings a totaled from net million revolver Merx. Net totaled XXX including XX and million, activity. million revolvers we Merx repayment received

Now few a spend credit let quality. discussing me overall minutes

petrochemical restored primarily accrual is lien downstream this status a liquid Gulf the US under businesses is the during sold and mentioned, of midstream its Industrial Sprint business earlier contract sale The tanks and industrial process to and along two provider remaining customers and Sprint one and and was safety previously solid As quarter. year rental customers. the Sprint company to recently commenced in to second the equipment sell storage this serves of our investment Coast. quarter. refinery,

As on of and to a process, sale interest receive a result investments. principal expect of we the our full recovery

lien first to quarter. KL on recreational paddle is and fishing boats, status Outdoor a manufacturer paddle the The kayaks, costs. fishing demand, designer lower and placed Outdoor boats, were during in of consolidation our and nonaccrual underperformed boards investments on, Moving due blinds. KL canoes, has outdoor challenges debt higher products, including company customer

portfolio nonaccrual represented at status X.X% end of X.X% the fair from investments X.X% and X.X% At last value, of last quarter. quarter from cost, down at down on the June,

to for for times a new X.X of We basis down view quality XXX X.X credit lending weighted from points the trade The X.XX attachment cycle. average times. and average the point weighted to average asset from decreased our weighted portfolio our X.X our last on points quarter, credit interest from X.XX in net X.XX the compared times. of The to to remained times positive and declined decreased the leverage this X.X metrics, new on portfolio for of the at point investments coverage off commitments yield X.XX, times average to at as XX this commitments. Moving credit basis corporate times to compared spread

the will over who performance will discuss With to quarter. the call Greg turn for that, I the financial now

Greg Hunt

to for investment income accrual higher was quarter, income million, Thank an partially recurring status increase of growth. income from dividend to March you, Tanner. X.X%. Interest due million million interest to and million X.X income, portfolio the Beginning quarter-over-quarter the the due income income restored or total XX.X in investment due and was prepayment being with income. XX.X The statement, up increase fee lower Industrial rose Sprint and higher to offset interest by X.X our

Interest the quarter quarter, the the X.XX March portfolio. return interest income million, growth higher the March were in to was share and to were the for during XX structure. share Expenses of quarter management of per income the leverage times from March. fees, interest given includes compared the Net provision per the $X.XX No for catchup in our fees of times for million incentive at quarter, compared the Net end XX.X at the $X.XX given total fee X.XX million from up was accrued end expense quarter. prior X.X due Sprint. in

loss oil totaled on to quarter. times the loss free our non-core shipping net portfolio including quarter leverage our Average from was million of legacy the net investment, for the during share. our and legacy per quarter assets, The was X.XX names. chemicals March or gas, primarily XX.X one times, the and and $X.XX X.XX The up attributable during carbon

in Positive contributors included Sprint, our SquareTwo. Merx and investment

with occurred in which quarter, Financial, in escrowed million received During SquareTwo of the the XXXX. funds we sale associated $X our investment of

corporate decrease $X.XX was $XX NAV to loss per $X.XX to distribution $X.XX impact $XX.XX average in was The June, net spread, share by to income LIBOR. due quarter. The was yield lending as the in at well end $X.XX portfolio the given attributable a quarterly the offset X.X%, of on the portfolio, spread as points The loan investment of decrease the stock our yielded quarter was compared during buybacks new of end basis down the the from XX combination a lower the a the investments average than and at on of quarter accretive for greater decline change March. quarter-over-quarter. for the -- a

at balance sheet, we side of billion end quarter. had debt liability of the the outstanding of our $X.XX On the

announced funding the with sources. various our we of redeeming funding, on all XXXX our million, quarter in September will to In X.X of recognized due our debt we unsecured capital emphasis million of $XXX due to sources extinguishment alternative unamortized X.XXX% of loss a issuance approximately the of Regarding a continue we costs. in associated diversifying the evaluate We July, particular the notes be these notes acceleration mid-August. in on

initially notes We revolving these a credit will facility. replace using

result to is issue payback our the market savings. debt year given in lower of these The an of term. long notes conditions. timing notes these replace that one We it will subject any estimate to future interest However, be that approximately is intention current redemption will issuance unsecured there expense to period, debt currently cost

the down X.XX%, X.XX% was Our average weighted quarter. last on average debt rate quarter for interest our from

Excluding the cost annualized XXXX be interest notes, approximately average X.X% would the period. for weighted the

new billion. lender during a Regarding for quarter facility, $X.X facility, our increasing total to million the $XX our commitments committed credit

Kroll Agency to rating. credit We are recently our Bond also that investment affirmed Rating grade announce pleased

the for cost during of buybacks, XXX,XXX shares of during a share shares XX yesterday, now repurchased stock availability of the of quarter total quarter, $XX.XX XXX,XXX million. our or million. approximately end The outstanding an total the $XX.XX price price program, company we regarding we cost and we shares average a an Since $XXX for million through repurchase Lastly, XXXX, repurchased repurchased which repurchases. of since for And shares for at million $XX have X.X cost of inception of at the average XX% of total has began $XX an stock additional in million quarter.

concludes This operator. our prepared remarks,

questions. the So, please call for open

Operator

And Terry of your first Instructions] Ma question [Operator from with line Barclays. comes the

Terry Ma

On the by much corporate you this yields, versus kind LIBOR driven portfolio, in the of lending of decrease was bps your how disaggregate other can XX pieces?

Howard Widra

it about growth I about in was especially the there was so Yeah, lien. third mean, portfolio two-thirds a LIBOR, mix, the much of first because

Terry Ma

sensitivity bps? decline show Thank X% income you more least about, at rate a tables the one more the given there's in think your like dividend baked I couple XXX for it. And I coverage do you. for a go maybe how something Got down in, think cut line? guess, forward,

Howard Widra

Yeah.

with I is income So, basis range, XX, cut income X.X could cut cover annually of point at some XX that our cycle. leverage net or the I assuming point, our X.X leverage comfortable Obviously, But, be dividend, X.X levels million feel mean, to our X.X. net of rate normal point, enough. ability right, per also sort right. $X decent at X% some of we to in a mean, leverage, at our

know So, XX% of -- where yield but we and if our dividend X.X hit we dividend. sort at to and like our leverage have or X.XX, between you sort exactly continually hard cover articulated over and it's of it, that a we

-- enough over absorb X.X X.XX XX.X mix right X.X to saw of our sort the our to LIBOR, any rates. now, of what, of even fall because movements of room portfolio up there's significant right portfolio, below interest because XX, we either obviously As to near of that X.XX. to term But moves

Terry Ma

Merx, how that in And Okay, that's and dividend what this forward? should decrease the think just we on then the drove quarter about going helpful.

Howard Widra

to Yeah, our or was due there in leave investments, businesses, in there shipping in shipping, I of expenses decided we think, down certain of also some dock on using those within recycling their for Merx that both and capital. was the capital that to instance, for dry assets

Terry Ma

about should think the And purposes, then modeling for in how Okay. we dividend future quarters.

Howard Widra

historically been million we've X and think million. I between X.X

As it size we Merx, bring over on I reduce our investment down would time.

that's We on there. are pulling note XX% out the

decline upon Merx, to within So, I we think side. in X.X, in model X longer the time, over but sales at depending asset it may

Tanner Powell

on now it over historically, just X the count is the sort But to on yields look about of on X.X, $X if right equity which that's debt. at it million to you XX%, $X our million what is the both a equity year and

debt And little so side it’s side. the on a than the equity lumpier just

how XX%, So around is like, about across we generally whole the think it. investment

Operator

with question JP next Shane from Your is Morgan. Rick

Rick Shane

then XXX XX, on Greg's one points. it's X sensitivity comments Curious interest rate in basis by intrigued you -- about said, XX further floor, Greg, more interesting excuse to the to really spot page really this pressure $X I next rate look what ones that pressure it's that some is down to But down we starts sort to points. chart interest looks how important. your like this basis it or seen expect is in we the million, in be XX starts to place. points, it's abate at for to me, for sure that the that, has guys and curious of -- When off the after sensitivity. that And make XX, sort $X.X understanding would move because see that basis to past really we I understand that million going with sweet you of as or, assume that, be do flattened points, me floors about to million I'm down then of of would caps have the linear very that I've suggest basis and XXX going that, the

Howard Widra

the leaving able to middle keep able that things I been And have started well, to one the we as feature agreements. assessment market to think the as we've within syndicated floors market within hold origination as think been fair. is our your of on I that a have

And basis of detriment past your And it's broadly existence that that correct. points. so is moderates floors XXX the characterization that

Rick Shane

And bps floors that had majority their based Greg XX what to it down from plus said here. the looks this are me of about on probably

Howard Widra

The in higher even majority some depends. of at so the floors it would them and X%. that. of than be, have are X.X Most But are we of that number names cases a

speaking, broadly So correct.

Operator

question with next from is Kyle Your Jefferies. Joseph

Kyle Joseph

Following up funds of sense term? anticipate outlook funds? high eventually, about of for give conditions, relatively a know out over you you how of Can for you retiring talked market the of a your rates terming on guys piece I on and the Rick's just but trending cost us debt cost depending you cost here talking debt. near about your impact some

Howard Widra

I just the, mean, taking the down pro I we're focused that said, And about given where think, down I across at think we're barometer without funds, to this based a taking given adjustment, LIBOR the rates are good where that that's the X.XXX, on interest upon what so we're I out X.X%. if are, we headed, I you where, point. obviously think think, we the and that's forma

Kyle Joseph

it one quarter. ticked related And income up the time I like looks or it, Was apologies missed in if anything PIC there? to that but Sprint

Howard Widra

No, it's just of end. to that post quarter collected Sprint. majority And we related the

Kyle Joseph

what's back competitive few give the environment space, what's with BDC with changes little stepping in you on to seen can on going you've the past given then months? going bit, And rate environment, a the the over leverage any us

Howard Widra

and are capital trends formation. the reasonable I say wouldn't to same. the over There past the much I so I of a been has be months. continues few mean, amount think,

competition, deals. premium there sort they continues be people be they of themes of So to the relationships have both existing beating of all some there because been have seems because do And also which have competitive available, product to we those diversity, to for they have origination, And then sort the bigger amount also continues are a there advantage available time. a to can be scale, who good grow from. more of

different, that that, and competitive. anything there's I wouldn't we seen it say -- see have quite of nothing markedly remains And sort alleviates that. we So so

Operator

with is Your question Wells Finian from O'Shea Fargo next securities.

Finian O'Shea

guys. afternoon. Good Hi,

that, little a for the wait meaning little you'd First you question to XXXX opportune right through having color now, I some through holding call on of for time a them, it's criticism on you've the for probably on carry know, a noted not given but, Greg think more over? turning it attractive unsecured gone us after give that, you the the to as it, they seem Could notes. best, ever, more they'll taken more with than those recession. replace and years why I

answer you of claims if with -- how those expand that just you So, take on would said, out now? those and why all kind

Howard Widra

we're comfortable very all, looking one feel forward. the to reason, look our the sheet, I Well, it look at what been we a where I so we're number that's going if road, I financings down upsized think indicated, our facility, look as there in and base, think, finance from and has but at market of unsecured at first not going I out, forward, of at all, credit taking our at year, potentially look shut our on more look asset funding you unsecured out continue putting are last think of to our balance we're and the beyond going substantially you if facility, ways which you cost those, credit also some at out to that secured we're at of our with putting even both just funds, at and debt look

our up, structure, capital. So cost capital we're up able de-leveraging favorable the on to of and very building be comfortable, accessing of ourselves times kind of markets appropriate the portfolio a to, X.X portfolio to very our with when

Finian O'Shea

color they on are another or Howard give for can you a now, clear to investors today an moving clear, of that just are anybody, of to to sell, the Sure, challenge hard these? Are component your the those as shipping the are you hard underlining of large prices challenge specific the color. shifts to then for overview non-core shipping And like the assets, any -- there Tanner, other thanks or don't kind assets? don't of those want with

Howard Widra

illiquid they're Sure, assets. I mean,

would where they're them of to of And, So, a -- on sort as right, are they're sense just happy portfolio they're basis them -- be expect sort unique. prices sale, but, would transact opposed whole soon. now, prices value be said, of we that of our fleet That clear in And that and with, able to our to be some because expect to bring of we sort available think to transact there's larger are the of so able would sort with be the opportunities are the to we in the also sort strategic whole piecemeal platforms. of other hard just we the of soon, it'll regardless, meeting some with a now. for pretty to ballpark together

you're been bit, to a ability hit to value pay now think the where these been real has shifts, we've these it point So, there right, then of consistent we on, sort to actually and move, changes for illiquid transact. ability it's little some pretty the assets market’s is of but hard

Finian O'Shea

the And BDC any receive to advisor one before Apollo funds? of the the and upfront does more, other allocating economics for

Howard Widra

No.

Operator

Your KBW. next with question is Ryan from Lynch

Ryan Lynch

Hey, afternoon. good

lumpy to four anywhere the million. be over from guys question, XXX of but quarter-to-quarter, originating can I know you were First originations million quarters, kind previous XXX

really just that XXX what so can drove about talk quarter? quarter, you bumped spike the big This to up this million,

Greg Hunt

our the XXX widened, made because of our of originated the that past assets will, occurred, leverage go fit over between to our if quarters or X mean, when, we mean, full But talk the some two Yeah, X ability April array XXX. up, in funnel above and we in is detail. I the I as you market can sense that three really, for sort to us

level past origination. think of around have year, we of, I of so, And said, expect would the we this over sort sort

So low. this run a high may little little a be is bit and off bit

I of net a have million but would said of think, platform were this fundings of which it's just growth, so about some of and of, think little our we XXX given much guidance the So XXX be indicative sort XXX little that. million we're higher, bit origination. a where saying. to And, million is higher I bit how was than flow we But

Ryan Lynch

a And had X.X operating to fee, million, then about $X added I up guys I million, no the into I factors to earnings kind for to incentive of and look core kind of take or wanted had those catch a you quarter’s earnings which around on ask is this share that quarter. $X.XX from $XX account of question be If this at dividend. Sprint, so. your guys about then If $X.XX, per one-time about you million two

So been times if X.XX out, those leverage. ex you earnings around would running have at $X.XX,

one that in any there kind through, quarter’s time get items were with lower kind the that me kind time confidence -- in this to up back the So, of earnings earnings your earnings dividend? and and just they can walk ability of line your of kind one you hurt of

Howard Widra

this but few related from had discussed was we into then, Yeah, slight exact no we're I million, other the that, so us minor that million low-XXs. past there portfolio takes below normal the fees that was one-time us mean, comfortable. Merx growth course, items, a is eight the well. between And over numbers, takes that one to a and little quarters to which up as shifts, but expense is bit irrelevant. the $X.X little not to the higher been and number, the level six There has in in a the $X there level, our dividend average which quarter other And each the was quarter before. income -- then

And up. add those all of so things

Merx if off look the long look dividends shifts, and a sort, So through around and we XX% fees of yielding cover you portfolio, at if dividend. and term you you X.XX levered times of model, averages our the with

that quarter being these we few we're on so paid back kicks but X.XX And That has closed to dividend the leverage getting last hasn't -- X.XX X.XX. is -- been focused the that. the X.XX incentive incentive will with relevant, the X.XX from in, bridge that fee as incentive We fee paid. to But fee quarters. that's the cover the

Tanner Powell

above note Howard's X%, to X it's coverage And X from in also helps our which to goes asset guidance then I'd X.X% target leverage. give relates fee at it management embedded it as also that and in the to

Howard Widra

Right. of I'm And as it's I using said, sort but it's shorthand accurate, shorthand. math, obviously,

if an to opposed XX, like, means said it X.XX. earlier X.X, as I is yield to as So leverage question that to opposed X.X as

And until variations about answer the there. you quarter, accurate is, during sort kick what of But, of looking because items. you're the which really in so, happened there's -- some the is But, those other this some the quarter, one-time bridges gap. mean, the portfolio, said I in there the of it doesn't sort were significant one-time combined with growth way the course items

Ryan Lynch

I then going they're may announced think And that file you bankruptcy or to for just that guys’ bankruptcy. for about Bumblebee, filed in company have been investment has

mark it know, about XX% does to your have of cost? fair Is the wanted Just mark that value guys run XXX stage marked inclusive about, through as bankruptcy? of to

Howard Widra

Yes.

say historical price also that valuations fixing but -- and has our to LCD with experienced issues is came So point a or not had company to consequent has the article this only tariffs, expenses. yesterday, time, is related today what issues -- related are a litigation I’d out that there that in

is issues deal We things facility participant to time of broader evaluation a available are borrower as and time a with move the specifics, forward. your the and with But information in are point to at of in quarter end. in the us working the with the terms a

Ryan Lynch

the been the I sort update one in SEC next the guys has then guys, And last stands on that several could to AFSC that over corrected. on forefront And bill expect of where the you platform the Okay. hoping us before you of get go? the with process. you an working outlook to power months any give one, just meaning was that

Howard Widra

there's been on been quarter, with them and filing the last SEC, dialog, we based with continued there’s approach. letter our dialog are Since amended

I been I relative positive and near there's good to are appropriately. think think future. questions the asking very they responding don't wouldn't-- But but we’re going correspondence, I to good it, they've transact anything's in

Operator

[Operator comes Raymond with Dodd next James. Robert Instructions] Your question from

Robert Dodd

me Some I one? And didn't nitty-gritty then Greg, quarter? the against next tell get you ones. extinguishment cost debt could that the

Greg Hunt

X.X million approximately.

Robert Dodd

should if mentioned changed two was income, lower X.X. since of portfolios, mean, where volatile anything a, you across a Is other off mean, we've be it quarter, is the I that then going obviously, in income contribution structurally all it's I XXX,XXX mean, that Thank a at other And resulted is it's we Howard, it systematically lower kind set of years it quarter just going lower? to factors but fees. this portfolio I you. to is Or one Or this expect looking, quarter? there in low. kind seen I look just of that's number the been forward? a

Greg Hunt

of one-off mostly factors, related mean, run-off. that I to not know, set You much

Robert Dodd

in one-time to the if a them us question not the if you Can is dividend. obvious probably Merx, in can, term, money lost related they're costs, the if, I or rotating to obviously, that their losing where going near portfolio position, to they’re tell was back a that Going is, pay quarter. in money, so they’re the

that return that -- point Is while run it a capital process? can come term should XX% or some a point? it So get Merx, kind be is rate at should to on up that going appreciate expect your you of the quarter happen next we longer to to I

Greg Hunt

of earnings. first Merx So retained has all,

Okay.

for the the So quarter answer it GAAP up, be can earnings, on specific okay, the this basis. their is dividend quarter, retained

you're course. based to during related we quarter. the costs took And -- So that were and some normal nothing our put securitization not the that's legal and reporting. had ran that's debt reserve what also the on expense some had through we what occurred again policy of so We that outside reserving also we But bad additional that the on capitalized. really

Operator

is Point. Your Casey next with from question Alexander Compass

Casey Alexander

Hi, good afternoon.

will much? can quarter, the reduction if be the there resulted you how upon incentive if that so, next And you this quarter? net could losses estimate any educate Just me, based in in fee

Greg Hunt

We've period. essentially the up back with caught look

Operator

Your next Morgan. with from Rick question JP is Shane

Rick Shane

to my that look quarter, well. back quarter September the the the you sort on I assume December Actually, guys. would was if normal out, given quarter. year. the lap of this in in sounds It trying like Hey, as December question figure the fee starting in should was loss we incentive a

Greg Hunt

Yes.

Operator

no there this closing to And questions any remarks. back are turn management for further time. We'll at

Howard Widra

feel free evening. call behalf your your any On of with time team, a of Have support. to you. for thank want you today questions. to Please Thank our good any us and continued we

Operator

you. this conclude Thank does And today's call. conference

now may You disconnect.

MidCap Financial Investment (MFIC) 6 Aug 192020 Q1 Earnings call transcript