Prospect Capital Corporation (NASDAQ:PSEC) Q4 2022 Results Conference Call August 30, 2022 11:00 AM ET

Company Participants

John Barry - Chairman and CEO

Grier Eliasek - President and COO

Kristin Van Dask - CFO

Conference Call Participants

Finian O’Shea - Wells Fargo

Robert Dodd - Raymond James

Operator

Good day. and welcome to the Prospect Capital Corporation Fiscal Year End and Fourth Quarter Earnings Release and Conference Call. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to John Barry, Chairman and CEO. Please go ahead.

John Barry

Thank you, Sarah. Joining me on the call today, as usual, are Grier Eliasek, our President and Chief Operating Officer; and Kristin Van Dask, our Chief Financial Officer. Kristin?

Kristin Van Dask

Thanks, John. This call is the property of Prospect. Unauthorized use is prohibited. This call contains forward-looking statements that are intended to be subject to safe harbor protection. Actual developments and results are highly likely to vary materially, and we do not undertake to update our forward-looking statements unless required by law.

For additional disclosure, please see our earnings press release filed previously and available on our website, prospectstreet.com. As we disclosed, we expect to file our 10-K in the next several days for the reasons set forth in those disclosures.

Now I’ll turn the call back over to John.

John Barry

Thank you, Kristin. In the June quarter, our net investment income, or NII, was $90 million or $0.23 per common share, exceeding our distribution rate per common share by $0.05 and by 28%. Our basic net income applicable to common shareholders was minus $56.6 million or $0.14 per common share, largely due to unrealized mark-to-market depreciation resulting from macro conditions.

In the June 2022 fiscal year, we achieved basic net income applicable to common stockholders of $556.6 million or $1.43 per common share, representing a 7% return compared to starting net asset value per common share. Our net asset value stood at $10.48 per common share in June, down $0.33 and 3% from the prior quarter, largely due to unrealized mark-to-market depreciation again from macro conditions.

Over the 9 quarters, from the pre-pandemic December 2019 quarter to the March 2022 quarter, Prospect has delivered the highest growth in the business development company industry and net asset value per common share, with NAV per common share increasing by 25% over that time period.