PennantPark Floating Rate Capital (NYSE:PFLT) Q2 2023 Earnings Conference Call May 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

Kevin Fultz - JMP Securities

Mickey Schleien - Ladenburg Thalmann

Mark Hughes - Truist

Operator

Good morning, and welcome to the PennantPark Floating Rate Capital Second 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 Second 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 a 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 how we fared in the quarter ended March 31, how the portfolio is positioned for the upcoming quarters, a detailed review of the financials and then open it up for Q&A.

For the quarter ended March 31, our net investment income was $0.35 per share. Core NII was $0.34 per share, which excludes $0.01 per share for onetime interest income. GAAP NAV decreased slightly to $11.15 per share or 1.3%, which was due primarily to market-driven valuation adjustments on equity co-investments, partially offset by net investment income in excess of the dividend. With this backdrop of consistent earnings and a stable portfolio, the Board of Directors has improved an increase in the monthly distribution to $0.1025 per share, beginning with the July distribution. This represents a 2.5% increase in the monthly distribution and an 8% increase from a year ago.