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Horizon Technology Finance Q1 2020 Earnings Report Analysis

Posted on April 30, 2020

Horizon Technology Finance announced its Q1 2020 results. The big highlights were:

  • Net Investment Income per Share of $0.26; NAV per Share of $11.48
  • Maintained Regular Monthly Distributions Totaling $0.30 per Share through September
  • Recognized Realized Gains of $4.3 Million from Three Portfolio Companies

 
Compared to Q4 2020, there is a modest increase in the AUM and also in the number of Investments. As of Q1 2020, the Assets under management (AUM) of Horizon was valued at 336.5 Million USD compared to 330.5 Million USD as of Q4 2019.
 

Portfolio Highlights

  • Funded six loans totaling $50.5 million during the quarter
  • Experienced liquidity events from five portfolio companies
  • One New Non-Accrual was added
  • 2.8% of the total portfolio (12.8 Million USD at Cost) is in Non-Accrual

 

New Investments

  1. Bardy Diagnostics Inc.
  2. Castle Creek Pharmaceuticals Hldg Inc.
  3. Keypath Education Inc.

 

Non-Accruals

  1. Audacy Corp.
  2. IgnitionOne Inc
  3. Signix Inc.

 

Exits (Including Partial Exits)

  1. Sys-Tech Solutions, Inc.
  2. Palatin Technologies, Inc
  3. Revance Therapeutics Inc.
  4. Bridge2 Solutions, LLC
  5. Verve Wireless, Inc.

 

What can be expected?

Below is what Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of Horizon said:

“Our first quarter results began to be impacted by the progression of COVID-19 in March, and we expect that prepayment activity will be reduced for the foreseeable future. Unfortunately, the impact of the pandemic, the global shut-down of the economy and uncertainty in the capital markets have had a negative impact on the fair value of our investments.  While our outlook is cautious, we are maintaining our current monthly distribution level of $0.10 per share based upon our outlook and our spillover income.  Looking ahead, we will continue to closely monitor the environment, our portfolio companies and our credit quality, while we selectively invest in opportunities that meet our underwriting criteria, in order to continue to deliver value to our shareholders.”


Sources:

1.     Horizon Technology Finance:
https://ir.horizontechfinance.com/news-releases/news-release-details/horizon-technology-finance-announces-first-quarter-2020

2.     AdvantageData Inc
Analysis by Sourav Srimal, Global Head of Operations, Advantage Data


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