PennantPark Floating Rate Capital (NYSE:PFLT) Q3 2022 Earnings Conference Call August 4, 2022 9:00 AM ET

Company Participants

Art Penn - Founder, Chairman and Chief Executive Officer

Richard Allorto - Chief Financial Officer

Conference Call Participants

Ryan Lynch - KBW

Kevin Fultz - JMP Securities

Operator

Good morning. And welcome to the PennantPark Floating Rate Capital's Third Fiscal Quarter 2022 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.

Art Penn

Thank you and good morning, everyone. I'd like to welcome you to PennantPark Floating Rate Capital's third fiscal quarter 2022 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. Audio replay of the call will be available by using telephone numbers and pin provided in our earnings press release, as well as 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 www.pennantpark.com 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.

Art Penn

Thanks, Rick. First, I'd like to welcome you as the new CFO of our BDCs. We're going to spend a few minutes discussing how we fared in the quarter ended June 30. How the portfolio is positioned for the upcoming quarters, our capital structure and liquidity, a detailed review of the financials, then open it up for Q&A.

For the quarter ended June 30th, our net investment income was $0.29 per share, which includes $0.01 of other non-recurring income, the credit quality of the portfolio remained solid and the largest non-accrual investment marketplace events has returned to full accrual status. Our GAAP NAV decreased by 3.2%, driven primarily by decrease in investment valuations. The decrease was largely attributed to mark-to-market adjustments resulting from the overall choppy market as opposed to specific credit driven items within the portfolio.