Reviewing Walker & Dunlop (NYSE:WD) and Mogo Finance Technology (NYSE:MOGO)

Walker & Dunlop (NYSE:WD) and Mogo Finance Technology (NASDAQ:MOGO) are both small-cap finance companies, but which is the better …

Walker & Dunlop (NYSE:WD) and Mogo Finance Technology (NASDAQ:MOGO) are both small-cap finance companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Risk & Volatility

Walker & Dunlop has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.Comparatively, Mogo Finance Technology has a beta of 2.06, indicating that its stock price is 106% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Walker & Dunlop and Mogo Finance Technology, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Walker & Dunlop 0 0 4 0 3.00
Mogo Finance Technology 0 0 3 0 3.00

Walker & Dunlop presently has a consensus price target of $64.00, suggesting a potential upside of 23.48%. Mogo Finance Technology has a consensus price target of $7.00, suggesting a potential upside of 96.08%. Given Mogo Finance Technology’s higher probable upside, analysts clearly believe Mogo Finance Technology is more favorable than Walker & Dunlop.

Dividends

Walker & Dunlop pays an annual dividend of $1.20 per share and has a dividend yield of 2.3%. Mogo Finance Technology does not pay a dividend. Walker & Dunlop pays out 23.8% of its earnings in the form of a dividend.

Profitability

This table compares Walker & Dunlop and Mogo Finance Technology’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Walker & Dunlop 22.05% 18.67% 5.68%
Mogo Finance Technology -36.47% -1,609.72% -15.13%

Earnings and Valuation

This table compares Walker & Dunlop and Mogo Finance Technology’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Walker & Dunlop $725.25 million 2.20 $161.44 million $5.04 10.28
Mogo Finance Technology $47.28 million 1.79 -$16.99 million ($0.69) -5.17

Walker & Dunlop has higher revenue and earnings than Mogo Finance Technology. Mogo Finance Technology is trading at a lower price-to-earnings ratio than Walker & Dunlop, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

77.5% of Walker & Dunlop shares are held by institutional investors. Comparatively, 5.0% of Mogo Finance Technology shares are held by institutional investors. 10.4% of Walker & Dunlop shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Walker & Dunlop beats Mogo Finance Technology on 12 of the 15 factors compared between the two stocks.

About Walker & Dunlop

Walker & Dunlop logoWalker & Dunlop, Inc., through its subsidiaries, originates, sells, and services a range of multifamily and other commercial real estate loans for owners and developers of real estate in the United States. The company offers multifamily properties and commercial real estate finance products, such as first mortgage, second trust, supplemental, construction, mezzanine, preferred equity, small-balance, and bridge/interim loans. It provides multifamily finance for multifamily, manufactured housing communities, student housing, affordable housing, and senior housing properties under the Fannie Mae DUS program; and FHA finance, such as construction and permanent loans to developers and owners of multifamily housing, affordable housing, senior housing, and healthcare facilities. The company also acts as an intermediary in the placement of commercial real estate debt between institutional sources of capital, including life insurance companies, investment banks, commercial banks, pension funds, commercial mortgage backed securities (CMBS) issuers, and other institutional investors, as well as owners of various types of commercial real estate. In addition, it advises on capital structure; develops the financing package; facilitates negotiations between its client and institutional sources of capital; coordinates due diligence; and assists in closing the transaction, as well as offers interim loans and CMBS products, and investment sales brokerage services. Further, the company offers underwriting and risk management, servicing and asset management, and direct loan originators and correspondent network services. Walker & Dunlop, Inc. was founded in 1937 and is headquartered in Bethesda, Maryland.

About Mogo Finance Technology

Mogo Finance Technology logoMogo Finance Technology Inc. operates as a financial technology company in Canada. The company offers solutions that help consumers to manage and control their finances. It offers free credit score monitoring; MogoProtect, an identity fraud protection solution; MogoCard, a Mogo Visa Platinum Prepaid Card; MogoMortgage, a digital mortgage solution; MogoCrypto account; and MogoMoney that enables the buying and selling of bitcoin, as well as access to consumer credit products. Mogo Finance Technology Inc. was founded in 2003 and is headquartered in Vancouver, Canada.

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Bank of America Corp DE Sells 315 Shares of UFP Technologies, Inc. (NASDAQ:UFPT)

Finally, Quantum Capital Management lifted its position in UFP Technologies by 10.4% during the 4th quarter. Quantum Capital Management now …

UFP Technologies logoBank of America Corp DE cut its holdings in shares of UFP Technologies, Inc. (NASDAQ:UFPT) by 6.7% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,414 shares of the industrial products company’s stock after selling 315 shares during the quarter. Bank of America Corp DE owned approximately 0.06% of UFP Technologies worth $133,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Ramsey Quantitative Systems lifted its position in UFP Technologies by 104.4% during the 4th quarter. Ramsey Quantitative Systems now owns 6,137 shares of the industrial products company’s stock worth $184,000 after buying an additional 3,135 shares in the last quarter. Cavalier Investments LLC bought a new stake in UFP Technologies during the 4th quarter worth about $210,000. Rhumbline Advisers lifted its position in UFP Technologies by 44.9% during the 4th quarter. Rhumbline Advisers now owns 9,049 shares of the industrial products company’s stock worth $272,000 after buying an additional 2,805 shares in the last quarter. Perritt Capital Management Inc. lifted its position in UFP Technologies by 78.2% during the 4th quarter. Perritt Capital Management Inc. now owns 18,000 shares of the industrial products company’s stock worth $541,000 after buying an additional 7,898 shares in the last quarter. Finally, Quantum Capital Management lifted its position in UFP Technologies by 10.4% during the 4th quarter. Quantum Capital Management now owns 47,354 shares of the industrial products company’s stock worth $1,423,000 after buying an additional 4,475 shares in the last quarter. 70.73% of the stock is currently owned by hedge funds and other institutional investors.

In related news, insider R Jeffrey Bailly sold 6,573 shares of the company’s stock in a transaction dated Wednesday, May 22nd. The shares were sold at an average price of $38.53, for a total value of $253,257.69. Following the transaction, the insider now owns 496,122 shares in the company, valued at approximately $19,115,580.66. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Over the last ninety days, insiders sold 16,219 shares of company stock worth $626,302. 11.00% of the stock is owned by insiders.

UFPT has been the topic of several analyst reports. Zacks Investment Research cut shares of UFP Technologies from a “hold” rating to a “strong sell” rating in a research report on Thursday, March 28th. BidaskClub raised shares of UFP Technologies from a “sell” rating to a “hold” rating in a report on Thursday, May 9th. Finally, ValuEngine raised shares of UFP Technologies from a “hold” rating to a “buy” rating in a report on Thursday, May 9th.

Shares of UFPT stock traded down $0.70 on Monday, reaching $41.29. The stock had a trading volume of 34,059 shares, compared to its average volume of 22,985. The company has a quick ratio of 1.88, a current ratio of 2.90 and a debt-to-equity ratio of 0.15. The stock’s 50-day moving average price is $38.15. The stock has a market capitalization of $306.54 million, a price-to-earnings ratio of 19.66 and a beta of 0.44. UFP Technologies, Inc. has a 12 month low of $27.80 and a 12 month high of $42.87.

UFP Technologies (NASDAQ:UFPT) last issued its earnings results on Tuesday, May 7th. The industrial products company reported $0.50 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.40 by $0.10. The company had revenue of $47.33 million for the quarter, compared to analysts’ expectations of $45.10 million. UFP Technologies had a net margin of 8.35% and a return on equity of 11.79%. Research analysts forecast that UFP Technologies, Inc. will post 2.22 earnings per share for the current year.

About UFP Technologies

UFP Technologies, Inc designs and converts foams, plastics, composites, and natural fiber materials for the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets in the United States. It offers single patient use surfaces, advanced wound care, infection prevention, and disposables for surgical procedures, endoscopic procedures, orthopedic implants, orthopedic appliances, biopharma drug manufacturing, etc.; molded components automotive, aerospace, and defense markets; recycled protective packaging for B2C brands; and reusable cases and custom inserts.

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Institutional Ownership by Quarter for UFP Technologies (NASDAQ:UFPT)

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SG Americas Securities LLC Takes Position in C&F Financial Corp (NASDAQ:CFFI)

The fund purchased 5,273 shares of the financial services provider’s stock, valued at approximately $267,000. SG Americas Securities LLC owned …

C&F Financial logoSG Americas Securities LLC purchased a new stake in C&F Financial Corp (NASDAQ:CFFI) during the first quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 5,273 shares of the financial services provider’s stock, valued at approximately $267,000. SG Americas Securities LLC owned 0.15% of C&F Financial as of its most recent filing with the SEC.

Other institutional investors also recently added to or reduced their stakes in the company. LSV Asset Management raised its stake in shares of C&F Financial by 3.3% in the 4th quarter. LSV Asset Management now owns 53,857 shares of the financial services provider’s stock valued at $2,865,000 after acquiring an additional 1,717 shares during the period. Context BH Capital Management LP grew its holdings in shares of C&F Financial by 5.4% in the fourth quarter. Context BH Capital Management LP now owns 43,276 shares of the financial services provider’s stock valued at $2,303,000 after purchasing an additional 2,219 shares in the last quarter. First Trust Advisors LP grew its holdings in shares of C&F Financial by 18.6% in the fourth quarter. First Trust Advisors LP now owns 5,869 shares of the financial services provider’s stock valued at $312,000 after purchasing an additional 921 shares in the last quarter. Rhumbline Advisers acquired a new position in shares of C&F Financial in the fourth quarter valued at approximately $253,000. Finally, BlackRock Inc. grew its holdings in shares of C&F Financial by 0.7% in the third quarter. BlackRock Inc. now owns 163,612 shares of the financial services provider’s stock valued at $9,612,000 after purchasing an additional 1,111 shares in the last quarter. 34.91% of the stock is currently owned by institutional investors and hedge funds.

Separately, ValuEngine cut shares of C&F Financial from a “hold” rating to a “sell” rating in a report on Tuesday, April 23rd.

Shares of CFFI stock traded up $1.20 during trading on Friday, reaching $52.00. The company’s stock had a trading volume of 8,358 shares, compared to its average volume of 4,473. The company has a debt-to-equity ratio of 0.93, a quick ratio of 0.97 and a current ratio of 1.00. C&F Financial Corp has a 1-year low of $45.77 and a 1-year high of $67.40. The stock has a market capitalization of $180.43 million, a P/E ratio of 10.16 and a beta of 0.52.

C&F Financial (NASDAQ:CFFI) last posted its quarterly earnings results on Tuesday, April 23rd. The financial services provider reported $1.08 EPS for the quarter. C&F Financial had a net margin of 15.02% and a return on equity of 11.87%. The company had revenue of $26.75 million during the quarter.

The business also recently announced a quarterly dividend, which will be paid on Monday, July 1st. Stockholders of record on Friday, June 14th will be issued a $0.37 dividend. This represents a $1.48 annualized dividend and a dividend yield of 2.85%. The ex-dividend date is Thursday, June 13th.

About C&F Financial

C&F Financial Corporation operates as a bank holding company for Citizens and Farmers Bank that provides banking services to individuals and businesses. The company’s Retail Banking offers various banking services, including checking and savings deposit accounts, as well as business, real estate, development, mortgage, home equity, and installment loans.

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Institutional Ownership by Quarter for C&F Financial (NASDAQ:CFFI)

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STAAR Surgical (STAA) Upgraded at Zacks Investment Research

Quantum Capital Management grew its stake in STAAR Surgical by 45.8% during the first quarter. Quantum Capital Management now owns 72,655 …

STAAR Surgical logoZacks Investment Research upgraded shares of STAAR Surgical (NASDAQ:STAA) from a hold rating to a strong-buy rating in a research note published on Tuesday morning, Zacks.com reports. The brokerage currently has $29.00 price target on the medical instruments supplier’s stock.

According to Zacks, “Staar Surgical Company has evolved to become a developer, manufacturer and global distributor of products used by ophthalmologists and other eye care professionals to improve or correct vision in patients suffering from refractive conditions, cataracts and glaucoma. “

Other equities analysts also recently issued reports about the stock. BidaskClub upgraded shares of STAAR Surgical from a hold rating to a buy rating in a research note on Wednesday, February 20th. Canaccord Genuity restated a buy rating and issued a $38.00 price target (down from $43.00) on shares of STAAR Surgical in a research note on Monday. Finally, ValuEngine upgraded shares of STAAR Surgical from a hold rating to a buy rating in a research note on Wednesday, May 1st. One research analyst has rated the stock with a hold rating, three have issued a buy rating and one has given a strong buy rating to the company’s stock. STAAR Surgical has a consensus rating of Buy and an average price target of $40.33.

Shares of STAA traded down $1.30 during trading hours on Tuesday, hitting $25.96. The company had a trading volume of 27,435 shares, compared to its average volume of 447,169. The firm has a market capitalization of $1.21 billion, a PE ratio of 91.82 and a beta of 2.02. STAAR Surgical has a 12 month low of $21.70 and a 12 month high of $54.00. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.41 and a quick ratio of 4.83.

STAAR Surgical (NASDAQ:STAA) last issued its quarterly earnings data on Wednesday, May 1st. The medical instruments supplier reported $0.10 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.04 by $0.06. The company had revenue of $32.58 million for the quarter, compared to analyst estimates of $32.40 million. STAAR Surgical had a net margin of 4.44% and a return on equity of 13.22%. During the same period in the prior year, the firm earned $0.01 earnings per share. Analysts predict that STAAR Surgical will post 0.33 earnings per share for the current fiscal year.

In other STAAR Surgical news, CTO Keith Holliday sold 2,084 shares of the stock in a transaction dated Tuesday, March 19th. The shares were sold at an average price of $36.22, for a total transaction of $75,482.48. Following the sale, the chief technology officer now directly owns 40,239 shares in the company, valued at $1,457,456.58. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Broadwood Partners, L.P. acquired 100,000 shares of STAAR Surgical stock in a transaction on Friday, May 3rd. The shares were purchased at an average price of $22.23 per share, for a total transaction of $2,223,000.00. The disclosure for this purchase can be found here. Insiders sold 17,730 shares of company stock worth $655,538 over the last 90 days. 3.90% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently made changes to their positions in the business. Great West Life Assurance Co. Can grew its stake in STAAR Surgical by 46.8% during the first quarter. Great West Life Assurance Co. Can now owns 5,172 shares of the medical instruments supplier’s stock worth $176,000 after buying an additional 1,649 shares in the last quarter. Cadence Capital Management LLC grew its stake in STAAR Surgical by 66.7% during the first quarter. Cadence Capital Management LLC now owns 113,410 shares of the medical instruments supplier’s stock worth $3,877,000 after buying an additional 45,387 shares in the last quarter. Quantum Capital Management grew its stake in STAAR Surgical by 45.8% during the first quarter. Quantum Capital Management now owns 72,655 shares of the medical instruments supplier’s stock worth $2,484,000 after buying an additional 22,809 shares in the last quarter. Victory Capital Management Inc. acquired a new stake in STAAR Surgical during the first quarter worth about $186,000. Finally, Comerica Bank grew its stake in STAAR Surgical by 7.5% during the first quarter. Comerica Bank now owns 37,197 shares of the medical instruments supplier’s stock worth $1,377,000 after buying an additional 2,600 shares in the last quarter. Hedge funds and other institutional investors own 90.99% of the company’s stock.

STAAR Surgical Company Profile

STAAR Surgical Company, together with its subsidiaries, designs, develops, manufactures, markets, and sells implantable lenses for the eye, and delivery systems to deliver the lenses into the eye. The company provides Visian implantable collamer lenses (ICLs) to treat visual disorders, such as myopia, hyperopia, astigmatism, and presbyopia; and Hyperopic ICL, which treats far-sightedness.

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Portman Ridge Finance Corporation Announces First Quarter 2019 Financial Results

As previously announced, the Company entered into a stock purchase and transaction agreement (the “Externalization Agreement”) with BC Partners …

NEW YORK, May 10, 2019 (GLOBE NEWSWIRE) — Portman Ridge Finance Corporation (Nasdaq: PTMN) (the “Company”) announces its first quarter 2019 financial results.

Recent Developments

As previously announced, the Company entered into a stock purchase and transaction agreement (the “Externalization Agreement”) with BC Partners Advisors, LP, an affiliate of BC Partners LLP, pursuant to which the Company’s management function would be externalized (the “Externalization”). At a special meeting of the Company’s stockholders held on February 19, 2019, the Company’s stockholders approved the investment advisory agreement between the Company and Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors, LP, (the “Adviser”). The transactions contemplated by the Externalization Agreement closed on April 1, 2019, and the Company commenced operations as an externally managed BDC managed by the Adviser on that date.

Financial Highlights

— Stockholders received a cash payment of $0.66972 per share upon closing of the Externalization on April 1, 2019. — Portman Ridge Finance Corporation declared a first quarter stockholder distribution of $0.10 per share. — Net investment loss for the first quarter ended March 31, 2019 was approximately $(2.2) million, or $ (0.06) per basic share, compared with net investment income of approximately $2.5 million, or $0.07 per basic share in the quarter ended March 31, 2018. — Expenses associated with the Externalization totaled approximately $3.4 million or $0.09 per share during the first quarter of 2019. — At March 31, 2019, the fair value of the Company’s investments totaled approximately $282 million. — Net asset value per share as of March 31, 2019 was $3.85.

Ted Goldthorpe, Chief Executive Officer of Portman Ridge Finance Corporation, noted, “We are pleased to have successfully closed the Externalization on April 1st, which provided stockholders with a cash payment of approximately $0.67 per share. We are actively repositioning the portfolio in the short-term and believe that the benefits associated with being externally managed and part of the broader BC Credit platform will enhance long-term value for stockholders.”

Operating Results

For the three months ended March 31, 2019, the Company reported total investment income of approximately $5.8 million as compared to approximately $6.8 million in the same period last year. Investment income from debt securities decreased 22% to approximately $2.9 million from approximately $3.8 million in the first quarter 2018. Changes in portfolio mix as well as an increase in non-accrual investments in the first quarter of 2019 were the primary contributors to this decline. Investment income on CLO fund securities in the first quarter of 2019 decreased slightly, to approximately $1.8 million from $1.9 million in the first quarter of 2018.

For the three months ended March 31, 2019, total expenses were approximately $8.0 million, including approximately $3.4 million in expenses associated with the Externalization. Interest expense and amortization on debt issuance costs for the period were approximately $1.8 million, compared with $1.9 million for the same period 2018. Net investment loss for the first quarter of 2019 was approximately $(2.2) million, or $(0.06) per basic share, versus net investment income of approximately $2.5 million, or $0.07 per basic share, during the first quarter of 2018. Net realized and unrealized depreciation on investments for the three months ended March 31, 2019 was approximately $8.7 million, as compared to net realized and unrealized appreciation of approximately $318,000 for the same period in 2018.

Portfolio and Investment Activity

The fair value of our portfolio was approximately $282 million as of March 31, 2019. The composition of our investment portfolio at March 31, 2019 and December 31, 2018 at cost and fair value was as follows:

March 31, 2019 (unaudited) December 31, 2018 Security Type Cost/Amortized Fair Value %¹ Cost/Amortized Fair Value %¹ Cost Cost ————- ————- —– ————- ————- —– Short-term investments² $ 44,120,648 $ 44,120,648 16 $ 44,756,478 $ 44,756,478 17 Senior Secured Loan 75,534,527 73,489,758 26 86,040,921 77,616,209 28 Junior Secured Loan 88,707,755 78,249,650 28 76,223,561 70,245,535 26 Senior Unsecured Bond 456,974 456,974 – — — CLO Fund Securities 54,299,958 45,605,015 16 55,480,626 44,325,000 16 Equity Securities 29,326,114 16,835,340 6 21,944,430 14,504,687 5 Asset Manager Affiliates³ 17,791,230 — — 17,791,230 3,470,000 1 Joint Venture 24,914,858 23,707,969 8 24,914,858 18,390,440 7 – ———– – ———– — – – ———– – ———– — – Total $ 335,152,064 $ 282,465,354 100 % $ 327,152,104 $ 273,308,349 100 % ————————- – ———– – ———– — – – ———– – ———– — – ¹ Represents percentage of total portfolio at fair value. ² Includes money market accounts and U.S. treasury bills. ³ Represents the equity investment in the Asset Manager Affiliates.

Liquidity and Capital Resources

At March 31, 2019, we had unrestricted cash and money market balances of approximately $47.4 million, total assets of approximately $293 million and stockholders’ equity of approximately $144 million. Our net asset value per common share was $3.85. As of March 31, 2019, we had approximately $121.3 million (par value) of borrowings outstanding ($117.9 million net of capitalized costs) with a weighted average interest rate of approximately 6.0%. Our asset coverage ratio stood at 216% as of March 31, 2019.

Subject to prevailing market conditions, we intend to grow our portfolio of assets by raising additional capital, including through the prudent use of leverage available to us. As a result, we may seek to enter into new agreements with other lenders or into other financing arrangements as market conditions permit. Such financing arrangements may include a new secured and/or unsecured credit facility or the issuance of unsecured debt or preferred stock.

Conference Call and Webcast

We will hold a conference call on Friday, May 10, 2019 at 9:00 am Eastern Time to discuss our first quarter 2019 financial results. Stockholders, prospective stockholders and analysts are welcome to listen to the call or attend the webcast.

To access the call please dial (866) 757-5630 approximately 10 minutes prior to the start of the conference call. No password is required. A live audio webcast of the conference call can be accessed via the Internet, on a listen-only basis on our Company’s website www.portmanridge.com in the Investor Relations section under Events. The online archive of the webcast will be available after 7pm Eastern Time for approximately 90 days.

A replay of this conference call will be available from 12:00 p.m. on May 10, 2019 until 11:59 p.m. on May 18, 2019. The dial in number for the replay is (855) 859-2056 and the conference ID is 2309217.

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 Finance Corporation’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. PTMN’s investment activities are managed by its investment adviser, Sierra Crest Investment Management LLC, an affiliate of BC Partners Advisors, LP.

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

The Portman Ridge Finance Corporation logo is available at https://ml.globenewswire.com/Resource/Download/39c70ff2-a155-44fc-872b-f68105f0d5ad?size=0

Cautionary Statement Regarding Forward-Looking Statements

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. 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) failure to realize the anticipated benefits of the Externalization; (3) the ability of the Company and/or BC Partners to implement its business strategy; (4) the risk that stockholder litigation in connection with the Externalization may result in significant costs of defense, indemnification and liability; (5) evolving legal, regulatory and tax regimes; (6) changes in general economic and/or industry specific conditions; (7) the impact of increased competition; (8) business prospects and the prospects of the Company’s portfolio companies; (9) contractual arrangements with third parties; (10) any future financings by the Company; (11) the ability of the Advisor to attract and retain highly talented professionals; and (12) the Company’s ability to fund any unfunded commitments. Further information about factors that could affect our financial and other results is included in our filings with the Securities and Exchange Commission. 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 Securities and Exchange Commission.

ContactTed Gilpin

Ted.Gilpin@bcpartners.com

(212) 891-5007

Portman Ridge Finance Corporation650 Madison Avenue, 23rd floorNew York, NY 10022 info@portmanridge.com

Source: Portman Ridge Finance Corporation. News Provided by Acquire Media

PORTMAN RIDGE FINANCE CORPORATION CONSOLIDATED BALANCE SHEETS As of As of March 31, 2019 December 31, 2018 —————- —————- (unaudited) ASSETS Investments at fair value: Short-term investments (cost: 2019 – $44,120,648; 2018 – $44,756,478) $ 44,120,648 $ 44,756,478 Debt securities (amortized cost: 2019 – $164,699,256; 2018 – $162,264,482) 152,196,382 147,861,744 CLO Fund Securities managed by affiliates (amortized cost: 2019 – 4,400,213 4,473,840 $4,416,048; 2018 – $4,407,106) CLO Fund Securities managed by non-affiliates (amortized cost: 2019 – 41,204,802 39,851,160 $49,883,910; 2018 – $51,073,520) Equity securities (cost: 2019 – $29,326,114; 2018 – $21,944,430) 16,835,340 14,504,687 Asset Manager Affiliates (cost: 2019 – $17,791,230; 2018 – $17,791,230) — 3,470,000 Joint Venture (cost: 2019 – $24,914,858; 2018 – $24,914,858) 23,707,969 18,390,440 – ———— – – ———— – Total Investments at Fair Value (cost: 2019 – $335,152,064; 2018 – 282,465,354 273,308,349 $327,152,104) Cash 3,288,010 5,417,125 Restricted cash 1,466,002 3,907,341 Interest receivable 877,156 1,342,970 Due from affiliates 928,098 1,007,631 Operating lease right-of-use asset 3,181,469 — Other assets 570,370 481,265 – ———— – – ———— – Total Assets $ 292,776,459 $ 285,464,681 – ———— – – ———— – LIABILITIES 6.125% Notes Due 2022 (net of offering costs of: 2019-$2,071,220; 2018 – $ 75,335,980 $ 75,199,858 $2,207,342) Great Lakes KCAP Funding I, LLC Revolving Credit Facility (net of offering 42,543,122 25,200,331 costs of: 2019-$1,327,960; 2018 – $1,155,754) Operating lease liability 3,553,359 — Payable for open trades 23,624,746 23,204,564 Accounts payable and accrued expenses 3,898,900 3,591,910 Accrued interest payable 134,324 131,182 Due to affiliates — 115,825 Total Liabilities 149,090,431 127,443,670 STOCKHOLDERS’ EQUITY Common stock, par value $0.01 per share, 100,000,000 common shares authorized; 37,526,568 issued, and 37,331,709 outstanding at March 31, 373,317 373,268 2019, and 37,521,705 issued, and 37,326,846 outstanding at December 31, 2018 Capital in excess of par value 307,099,763 306,784,387 Total distributable (loss) earnings (163,787,052 ) (149,136,644 ) – ———— – – ———— – Total Stockholders’ Equity 143,686,028 158,021,011 – ———— – – ———— – Total Liabilities and Stockholders’ Equity $ 292,776,459 $ 285,464,681 – ———— – – ———— – NET ASSET VALUE PER COMMON SHARE $ 3.85 $ 4.23 – ———— – – ———— –

PORTMAN RIDGE FINANCE CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended March 31, ——————————- 2019 2018 ————— ————– Investment Income: Interest from investments in debt securities $ 2,936,796 $ 3,398,197 Payment-in-kind investment income 2,022 362,937 Interest from cash and time deposits 35,669 49,205 Investment income on CLO Fund Securities managed by affiliates 132,446 1,833,667 Investment income on CLO Fund Securities managed by non-affiliates 1,681,274 99,361 Dividends from Asset Manager Affiliates — 320,000 Investment income – Joint Venture 950,000 700,000 Capital structuring service fees 61,203 63,110 – ———– – – ———- – Total investment income 5,799,410 6,826,477 Expenses: Interest and amortization of debt issuance costs 1,800,926 1,863,848 Compensation 3,688,578 1,207,337 Professional fees 1,668,122 714,410 Insurance 88,651 78,022 Administrative and other 748,320 502,118 – ———– – – ———- – Total expenses 7,994,597 4,365,735 – ———– – – ———- – Net Investment (Loss) Income (2,195,187 ) 2,460,742 Realized And Unrealized (Losses) Gains On Investments: Net realized (losses) gains from investment transactions (13,349,430 ) 3,101 Net change in unrealized (depreciation) appreciation on: Debt securities 1,899,864 (442,884 ) Equity securities (5,051,031 ) 63,596 CLO Fund Securities managed by affiliates (82,569 ) (220,819 ) CLO Fund Securities managed by non-affiliates 2,543,252 349,355 Asset Manager Affiliates investments — 314,000 Joint Venture Investment 5,317,529 251,376 – ———– – – ———- – Total net change in unrealized appreciation 4,627,045 314,624 – ———– – – ———- – Net realized and unrealized (depreciation) appreciation on investments (8,722,385 ) 317,725 – ———– – – ———- – Realized losses on extinguishments of Debt — (169,074 ) – ———– – – ———- – Net (Decrease) Increase In Stockholders’ Equity Resulting From Operations $ (10,917,572 ) $ 2,609,393 – ———– – – ———- – Net (Decrease) Increase In Stockholders’ Equity Resulting from Operations per Common Share: Basic: $ (0.29 ) $ 0.07 Diluted: $ (0.29 ) $ 0.07 Net Investment (Loss) Income Per Common Share: Basic: $ (0.06 ) $ 0.07 Diluted: $ (0.06 ) $ 0.07 Weighted Average Shares of Common Stock Outstanding—Basic 37,335,094 37,350,411 Weighted Average Shares of Common Stock Outstanding—Diluted 37,335,094 37,350,411

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