PennantPark Floating Rate Capital (NYSE:PFLT) Q3 2023 Earnings Conference Call August 10, 2023 9:00 AM ET

Company Participants

Arthur Penn - Founder, Chairman & Chief Executive Officer

Richard Allorto - Chief Financial Officer

Conference Call Participants

Paul Johnson - KBW

Vilas Abraham - UBS

Mark Hughes - Truist

Operator

Good morning, and welcome to the PennantPark Floating Rate Capital's Third Fiscal Quarter 2023 Earnings Conference Call. Today's conference is being recorded. [Operator Instructions]

It is now my pleasure to turn the call over to Mr. Art Penn, Chairman and Chief Executive Officer of PennantPark Floating Rate Capital. Mr. Penn, you may begin your conference.

Arthur Penn

Thank you, and good morning, everyone. I'd like to welcome you to PennantPark Floating Rate Capital's third fiscal quarter 2023 earnings conference call. I'm joined today by Rick Allorto, our Chief Financial Officer. Rick, please start off by disclosing some general conference call information and include a discussion about forward-looking statements.

Richard Allorto

Thank you, Art. I'd like to remind everyone that today's call is being recorded. Please note that this call is the property of PennantPark Floating Rate Capital and that any unauthorized broadcast of this call in any form is strictly prohibited. An audio replay of the call will be available on our website.

I'd also like to call your attention to the customary safe harbor disclosure in our press release regarding forward-looking information. Today's conference call may also include forward-looking statements and projections, and we ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from these projections. We do not undertake to update our forward-looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our website at pennantpark.com or call us at 212-905-1000.

At this time, I'd like to turn the call back to our Chairman and Chief Executive Officer, Art Penn.

Arthur Penn

Thanks, Rick. We're going to spend a few minutes discussing the current market environment for middle market lending, how we fared in the quarter ended June 30, how the portfolio is positioned for upcoming quarters, the detailed review of the financials, and then open it up for Q&A.

For the quarter ended June 30, our net investment income was $0.36 per share. Core NII was $0.31 per share and that excludes $0.05 per share for a one-time dividend income related to our equity investment and Dominion Voting. Adjusted NAV, excluding the mark-to-market adjustments on our liabilities, decreased slightly to $11 per share or 0.9%. GAAP NAV decreased to $10.96 per share or 1.7%. This was due primarily to valuation adjustments on a nonaccrual investment and certain equity co-investments partially offset by net investment income in excess of the dividend.