We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Rand Capital Corporation | NASDAQ:RAND | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 14.0445 | 13.50 | 14.52 | 207 | 21:02:00 |
Rand Capital Corporation (Nasdaq: RAND) (“Rand” or the “Company”), a business development company providing alternative financing for lower middle market companies, announced its results for the second quarter ended June 30, 2022.
Daniel P. Penberthy, President, and Chief Executive Officer of Rand, commented, “We delivered another solid quarter of total investment income growth, which reflected our focused investment strategy and significant debt portfolio expansion over the past year. During the recent quarter, we took a number of steps to position Rand for our next phase of growth. Most importantly, we added a new source of capital to support this strategy by securing a $25 million credit facility, which provides not only increased liquidity, but also greater flexibility. We also exited some of our publicly traded securities, which we in turn utilized to fund our follow-on debt investment in Seybert’s Billiard Corporation, making Seybert’s the largest Rand interest yielding debt holding with an approximately $5.6 million cost basis.”
Second Quarter Highlights
Portfolio and Investment Activity
As of June 30, 2022, Rand’s portfolio included investments with a fair value of $59.0 million across
29 portfolio businesses. This was down $3.4 million, or 6%, from March 31, 2022, due primarily to the change in ACV Auctions’ market value and stock sales, net of the follow-on Seybert’s investment. At
June 30, 2022, the portfolio was comprised of approximately 55% in debt investments, 35% in equity investments in private companies, and 10% in publicly traded equities consisting of other BDCs and ACV Auctions. The annualized weighted average yield of debt investments was 12.1%.
Second quarter 2022:
Liquidity and Capital Resources
Cash and cash equivalents at the end of the second quarter of 2022 were $1.2 million compared with $834,000 at 2021 year-end. As of June 30, 2022, the Company held approximately $4.0 million in public equities of other BDCs and $2.1 million of ACV Auctions shares, all of which are available for future liquidity requirements including both RIC dividends and new portfolio investments.
On June 27, 2022, Rand closed on a $25 million senior secured revolving credit facility with M&T Bank. The new facility provides for a 5-year term through 2027, at an interest rate calculated using SOFR plus 3.5%. There were no borrowings under the facility at quarter-end.
The Company did not repurchase any outstanding common stock during the second quarter of 2022.
Dividends
On July 28, 2022, Rand declared a quarterly cash dividend of $0.15 per share. The cash dividend will be distributed on or about September 15, 2022, to shareholders of record as of September 1, 2022.
Webcast and Conference Call
Rand will host a conference call and webcast on Monday, August 8, 2022, at 1:30 p.m. Eastern Time to review its financial results. The review will be accompanied by a slide presentation, which will be available on Rand’s website at www.randcapital.com in the “Investor Relations” section. Rand’s conference call can be accessed by calling (201) 689-8263. Alternatively, the webcast can be monitored on Rand’s website at www.randcapital.com under “Investor Relations” where the replay will also be available. A telephonic replay will be available from 4:30 p.m. ET on the day of the call through Monday, August 15, 2022. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13731266. A transcript of the call will also be posted once available.
ABOUT RAND CAPITAL
Rand Capital (Nasdaq: RAND) is an externally managed business development company (BDC). The Company’s investment objective is to maximize total return to its shareholders with current income and capital appreciation by focusing its debt and related equity investments in privately-held, lower middle market companies with committed and experienced managements in a broad variety of industries. Rand invests in early to later stage businesses that have sustainable, differentiated and market-proven products, revenue of more than $2 million and a path to free cash flow or up to $5 million in EBITDA. The Company’s investment activities are managed by its external investment adviser, Rand Capital Management, LLC. Additional information can be found at the Company’s website where it regularly posts information: https://www.randcapital.com/.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited to statements regarding the strategy of the Company and its outlook; and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “endeavor,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target” or other similar words or expressions. 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. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) evolving legal, regulatory and tax regimes; (2) changes in general economic and/or industry specific conditions; and (3) other risk factors as detailed from time to time in Rand ’s reports filed with the Securities and Exchange Commission (“SEC”), including Rand’s annual report on Form 10-K for the year ended December 31, 2021, quarterly reports on Form 10-Q, and other documents filed with the SEC. Consequently, such forward-looking statements should be regarded as Rand’s current plans, estimates and beliefs. Except as required by applicable law, Rand assumes no obligation to update the forward-looking information contained in this release.
FINANCIAL TABLES FOLLOW.
Rand Capital Corporation and Subsidiaries
Consolidated Statements of Financial Position
June 30, 2022 (Unaudited)
December 31, 2021
ASSETS
Investments at fair value:
Affiliate investments (cost of $30,195,392 and $27,357,797, respectively)
$33,165,309
$30,279,873
Non-Control/Non-Affiliate investments (cost of $22,291,325 and $25,012,871, respectively)
25,833,464
33,788,589
Total investments, at fair value (cost of $52,486,717 and $52,370,668, respectively)
58,998,773
64,068,462
Cash
1,189,146
833,875
Interest receivable
193,807
128,047
Prepaid income taxes
6,360
252,010
Deferred tax asset
239,158
181,003
Other assets
360,091
181,457
Total assets
$60,987,335
$65,644,854
LIABILITIES AND STOCKHOLDERS’ EQUITY (NET ASSETS)
Liabilities:
Due to investment adviser
$230,781
$891,102
Accounts payable and accrued expenses
55,933
51,689
Capital gains incentive fees
2,645,000
3,547,760
Deferred revenue
391,437
408,887
Total liabilities
3,323,151
4,899,438
Stockholders’ equity (net assets):
Common stock, $0.10 par; shares authorized 100,000,000; shares issued: 2,648,916; shares outstanding: 2,581,021 at 6/30/22 and 12/31/21
264,892
264,892
Capital in excess of par value
51,679,809
51,679,809
Treasury stock, at cost: 67,895 shares at 6/30/22 and 12/31/21
(1,566,605)
(1,566,605)
Total distributable earnings
7,286,088
10,367,320
Total stockholders’ equity (net assets) (per share – 6/30/22: $22.34; 12/31/21: $23.54)
57,664,184
60,745,416
Total liabilities and stockholders’ equity (net assets)
$60,987,335
$65,644,854
Rand Capital Corporation and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Three months ended June 30, 2022
Three months ended June 30, 2021
Six months ended June 30, 2022
Six months ended June 30, 2021
Investment income:
Interest from portfolio companies:
Control investment
$-
$2,867
$-
$2,867
Affiliate investments
614,997
295,085
1,185,113
614,501
Non-Control/Non-Affiliate investments
389,835
344,254
731,858
735,600
Total interest from portfolio companies
1,004,832
642,206
1,916,971
1,352,968
Interest from other investments:
Non-Control/Non-Affiliate investments
1
243
1
12,870
Total interest from other investments
1
243
1
12,870
Dividend and other investment income:
Affiliate investments
202,785
13,125
246,510
108,051
Non-Control/Non-Affiliate investments
113,735
123,922
243,000
275,665
Total dividend and other investment income
316,520
137,047
489,510
383,716
Fee income:
Affiliate investments
22,515
24,562
52,820
63,918
Non-Control/Non-Affiliate investments
9,314
6,979
18,628
13,957
Total fee income
31,829
31,541
71,448
77,875
Total investment income
1,353,182
811,037
2,477,930
1,827,429
Expenses:
Base management fee
230,767
212,907
471,042
388,516
Capital gains incentive fees
(663,000)
1,060,000
(902,760)
3,660,000
Interest on SBA obligations
-
104,190
-
208,380
Professional fees
212,138
123,991
443,221
284,124
Stockholders and office operating
64,890
69,661
121,588
141,083
Directors' fees
44,883
38,900
89,983
75,400
Insurance
13,353
9,380
22,263
19,707
Corporate development
726
821
3,753
8,303
Other operating
45
108
90
108
Total expenses
(96,198)
1,619,958
249,180
4,785,621
Net investment income (loss) before income taxes
1,449,380
(808,921)
2,228,750
(2,958,192)
Income tax expense
31,243
1,966
38,610
19,723
Net investment income (loss)
1,418,137
(810,887)
2,190,140
(2,977,915)
Net realized gain on sales and dispositions of investments:
Affiliate investments
167,159
-
167,159
135,430
Non-Control/Non-Affiliate investments
1,372,984
1,817,350
521,513
1,992,675
Net realized gain on sales and dispositions of investments
1,540,143
1,817,350
688,672
2,128,105
Net change in unrealized appreciation/ depreciation on investments:
Affiliate investments
47,841
-
47,841
-
Non-Control/Non-Affiliate investments
(4,902,510)
3,495,322
(5,233,579)
13,382,354
Change in unrealized appreciation/ depreciation before income taxes
(4,854,669)
3,495,322
(5,185,738)
13,382,354
Deferred income tax expense
-
951
-
951
Net change in unrealized appreciation/ depreciation on investments
(4,854,669)
3,494,371
(5,185,738)
13,381,403
Net realized and unrealized (loss) gain on investments
(3,314,526)
5,311,721
(4,497,066)
15,509,508
Net (decrease) increase in net assets from operations
($1,896,389)
$4,500,834
($2,306,926)
$12,531,593
Weighted average shares outstanding
2,581,021
2,582,169
2,581,021
2,582,169
Basic and diluted net (decrease) increase in net assets from operations per share
($0.73)
$1.74
($0.89)
$4.85
Rand Capital Corporation and Subsidiaries
Consolidated Statements of Changes in Net Assets
(Unaudited)
Three months ended June 30, 2022
Three months ended June 30, 2021
Six months ended June 30, 2022
Six months ended June 30, 2021
Net assets at beginning of period
$59,947,726
$53,877,204
$60,745,416
$46,104,830
Net investment income (loss)
1,418,137
(810,887)
2,190,140
(2,977,915)
Net realized gain on sales and dispositions of investments
1,540,143
1,817,350
688,672
2,128,105
Net change in unrealized appreciation/ depreciation on investments
(4,854,669)
3,494,371
(5,185,738)
13,381,403
Net (decrease) increase in net assets from operations
(1,896,389)
4,500,834
(2,306,926)
12,531,593
Declaration of dividend
(387,153)
(258,217)
(774,306)
(516,602)
Net assets at end of period
$57,664,184
$58,119,821
$57,664,184
$58,119,821
Rand Capital Corporation and Subsidiaries Reconciliation of Non-GAAP Adjusted Expenses to GAAP Total (Credits)/Expense (Unaudited)
In addition to reporting total expenses, which is a U.S. generally accepted accounting principle (“GAAP”) financial measure, Rand presents adjusted expenses, which is a non-GAAP financial measure. Adjusted expenses is defined as GAAP total (credits)/expenses removing the effect of any expenses/(credits) for capital gains incentive fees. GAAP total (credits)/expenses is the most directly comparable GAAP financial measure. Rand believes that adjusted expenses provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
Three months ended June 30, 2022
Three months ended June 30, 2021
Total (credits)/expenses
$
(96,198
)
$
1,619,958
Exclude (credits)/expenses for capital gains incentive fees
(663,000
)
1,060,000
Adjusted expenses
$
566,802
$
559,958
Reconciliation of Adjusted Net Investment Income per Share to GAAP Net Investment Income (Loss) per Share (Unaudited)
In addition to reporting Net Investment Income (Loss) per Share, which is a U.S. generally accepted accounting principle (“GAAP”) financial measure, the Company presents Adjusted Net Investment Income per Share, which is a non-GAAP financial measure. Adjusted Net Investment Income per Share is defined as GAAP Net Investment Income (Loss) per Share removing the effect of any expenses/ (credits) for capital gains incentive fees. GAAP Net Investment Income (Loss) per Share is the most directly comparable GAAP financial measure. Rand believes that Adjusted Net Investment Income per Share provides useful information to investors regarding financial performance because it is a method the Company uses to measure its financial and business trends related to its results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
Three months ended June 30, 2022
Three months ended June 30, 2021
Net investment income (loss) per share
$
0.55
$
(0.31
)
Exclude (credits)/expenses for capital gains incentive fees per share
(0.26
)
0.41
Adjusted net investment income per share
$
0.29
$
0.10
View source version on businesswire.com: https://www.businesswire.com/news/home/20220808005074/en/
Company: Daniel P. Penberthy President and CEO Phone: 716.853.0802 Email: dpenberthy@randcapital.com Investors: Deborah K. Pawlowski Kei Advisors LLC Phone: 716.843.3908 Email: dpawlowski@keiadvisors.com
1 Year Rand Capital Chart |
1 Month Rand Capital Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions