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FIDUS INVESTMENT CORPORATION (NASD: FDUS)
Last Trade
4:00 p.m. - 13.71
Change
 0.07 ( 0.51%)
Shares Traded
416
Day's Volume
63,096
Book Value
NA
Price/Book
NA
Beta
1.1173
Day's Range
13.50 - 13.735
Prev Close
13.64
Open
13.55
52 Wk Range
4.45 - 15.645
EPS
1.98
PE
6.92
Quarterly Div/Shr
0.30
Ex-Div
12/03/20
Yield
8.75%
Shares Out.
24.44M
Market Cap.
335.04M
  • 1 Year Stock Performance:

CAGR - Chart the growth of a $10K investment in FDUS

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Wed, 30 Dec 2020
16:38:33 +0000
3 Big Dividend Stocks Yielding Over 7%; Raymond James Says ‘Buy’
Wall Street’s investment firms are burning the midnight oil as we approach the end of 2020, publishing their year-end notes and their New Year prognostications, both for investors’ edification. There is the obvious point: we’re in a moment of rising markets, and investor sentiment is riding high now that the election is settled and COVID vaccines have emergency approval and are getting into the distribution networks.However, the lockdown policies put in place to combat the virus this winter are slowing down the economic recovery. Whether the economy will truly tank or not is yet to be seen.In the meantime, Raymond James strategist Tavis McCourt has published his take on the current situation, and his comments bear consideration. First, McCourt notes the investors are focused on the good news: “[The] equity market is more focused on vaccine deployment and complete re-openings of economies in 2021, and so far, negative data points have been largely brushed aside.”Looking ahead, McCourt writes of the next two years: “We believe the logical outcome of 2021 (and 2022 for that matter) is a likely "return to normalcy" with strong EPS growth offset by lower P/Es barring a change in the vaccine story. We expect cyclical sectors and smaller cap equities to continue to outperform, as is typical in early cycle markets…”The research analysts at Raymond James have been searching the markets for the ‘right’ buys, and their picks bear a closer look. They’ve been tapping high-yielding dividend payers as an investment play of choice.The TipRanks database sheds some additional light on three of JMP’s picks – stocks with dividends yielding 7% or better – and that the investment firm sees with 10% upside or better.New Residential Investment (NRZ)The real estate investment trust (REIT) segment has long been known for its high and reliable dividends, a feature promoted by tax regulations which stipulate that these companies must return a certain proportion of profits directly to investors. Based in New York City, New Residential Investment is typical of its sector. The company’s portfolio includes residential mortgages, mortgage loan servicing rights, and loan origination. NRZ focuses its operations on the residential housing sector.NRZ is a mid-cap company, with a market value of $4.13 billion and a portfolio worth $5.72 billion. The company’s revenues have been rising since the second quarter of 2020, after steep losses during the ‘corona recession’ of Q1. The third quarter earnings, however, came in at 19 cents per share, down from 54 cents in the year-ago quarter. But even with that loss, NRZ took care to maintain the dividend.In fact, it did more than that. The company raised the Q3 dividend, to 15 cents per common share, in a continuation of an interesting story. Back in Q1, the company pared back the common share dividend to 5 cents, in a move to preserve capital during the corona crisis. The company has since raised the dividend by 5 cents in each subsequent quarter, and the Q4 payment, announced in mid-December, is for 20 cents per common share. At that rate, the dividend annualizes to 80 cents and the yield exceeds 7.87%.In addition to raising the dividend, NRZ has also announced a share buyback program totaling $100 million. The repurchase is for preferred stock shares, and goes alongside the existing repurchase policy of common shares.Analyst Stephen Laws, in his coverage of NRZ for Raymond James, writes, “We expect strong origination volumes and attractive gain on sale margins to drive strong near-term results, and we continue to expect a dividend increase in 4Q [...] For 4Q20, we are increasing our core earnings estimate by $0.02 per share to $0.35 per share. For 2021, we are increasing our core earnings estimate by $0.08 per share to $1.31 per share."In line with these comments, Laws rates the stock an Outperform (i.e. Buy). His $11.50 target price implies a one-year upside of 16%. (To watch Laws’ track record, click here)It’s not often that the analysts all agree on a stock, so when it does happen, take note. NRZ’s Strong Buy consensus rating is based on a unanimous 8 Buys. The stock’s $11.36 average price target suggests a 14% and a change from the current share price of $9.93. (See NRZ stock analysis on TipRanks)Fidus Investment Corporation (FDUS)Next up is a business development corporation, Fidus Investment. This company is one of many in the mid-market business financing niche, offering debt solutions and capital access to smaller firms that may not be able to secure lending from the larger markets. Fidus’ portfolio focuses on senior secured debt and mezzanine debt for companies valued between $10 million and $150 million.Fidus has investments in 68 companies with an aggregate value of $697 million. The largest portion of that portfolio, 59%, is second-lien debt, with the rest divided mainly between subordinated debt, first-lien debt, and equity-related securities.The company has seen revenues gain through the second and third quarters of 2020, after negative results in Q1. The third quarter top line came in at ~$21 million, up an impressive 129% sequentially. Since the third quarter, Fidus has declared its dividend for Q4, at 30 cents per common share, the same as the previous two quarter, plus an extra 4-cent special dividend authorized by the Board of Directors. This brings the total payment for the quarter to 34 cents per common share, and puts the yield at 9.5%.Raymond James analyst Robert Dodd likes what he sees in Fidus, especially the dividend prospects. “We continue to see the risk / reward as attractive at current levels - with shares trading below book, solid forecasted base dividend coverage from NII… We project FDUS solidly over-earning its quarterly base dividend of $0.30 / share through our projection period. As a result, we do project modest supplementals…”Dodd puts an Outperform (i.e. Buy) rating on the stock, and sets a target price of $14. At current levels, that target indicates an upside of 10.5% in the next months. (To watch Dodd’s track record, click here)Wall Street is somewhat more divided on FDUS shares, a circumstance reflected in the Moderate Buy analyst consensus rating. That rating is based on 4 reviews, including 2 Buys and 2 Holds. Shares are priced at $12.66, and the $13.33 average price target suggests a modest 5% upside from current levels. (See FDUS stock analysis on TipRanks)TPG RE Finance Trust (TRTX)Returning to the REIT sector, we look at TPG RE Finance Trust, the real estate financing arm of global asset firm TPG. This REIT, with an $820 million market cap, has built a portfolio of commercial mortgage loans worth an aggregate total of $5.5 billion. The company is a provider for original commercial mortgage loans starting at $50 million, mainly in US primary markets. The largest share of the company’s loans and properties are centered in the East.Like many finance companies, TPG RE Finance saw serious losses in Q1 due to the corona pandemic crisis – but has since recovered to a large extent. Revenues in Q3 hit $48 million, up 9% year-over-year. During the quarter, TPG received loan repayments totaling $199.6 million, a solid result, and when the quarter ended the company had on hand $225.6 million in cash or cash equivalents.The company was able to easily fund its dividend, of 20 cents per common share, in Q3. For Q4, the company has recently declared not just the 20-cent regular payment, but also an 18-cent non-recurring special cash dividend. Taken together, the dividends give a yield of 7.5%, almost 4x higher than the average found among S&P-listed companies.Returning to Raymond James’ REIT expert Stephen Laws, we find that he is bullish on TRTX, too. “TRTX has underperformed since reporting 3Q results, which we believe creates an attractive buying opportunity… We expect core earnings to continue benefiting from LIBOR floors in loans and expect new investments to resume in 1Q21. The company's portfolio has combined retail and hotel exposure of 14%, which is below the sector average of 19%...” To this end, Laws rates TRTX a Strong Buy and his $13 price target suggests ~22% upside in 2021. (To watch Laws’ track record, click here)This stock also holds a Strong Buy rating from the analyst consensus, based on 3 unanimous Buy reviews set in recent weeks. Shares are priced at $10.67 and the average target of $11.00 suggests a modest 3% upside from current levels. (See TRTX stock analysis on TipRanks)To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Wed, 16 Dec 2020
22:33:00 +0000
Fidus Investment Corporation Prices Offering of $125 Million of 4.75% Notes Due 2026
EVANSTON, Ill., Dec. 16, 2020 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”) today announced that it priced a public offering of $125 million aggregate principal amount of 4.75% notes due 2026 (the “Notes”) on December 16, 2020. The Notes will mature on January 31, 2026, and may be redeemed in whole or in part at any time or from time to time at the Company’s option at par plus a “make-whole” premium, if applicable. The Notes will bear interest at a rate of 4.75% per year payable semi-annually on January 31 and July 31 of each year, beginning July 31, 2021. Raymond James & Associates, Inc. is acting as sole book-running manager for this offering. B. Riley Securities, Inc., Janney Montgomery Scott LLC, Keefe, Bruyette & Woods, Inc., A Stifel Company, Ladenburg Thalmann & Co. Inc., National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (NASDAQ: NHLD), and Oppenheimer & Co. Inc. are acting as co-managers for the offering.The closing of the transaction is subject to customary closing conditions and the Notes are expected to be delivered on or about December 23, 2020.The Company intends to use the net proceeds from this offering to redeem all of its outstanding 5.875% notes due 2023, repay the amount outstanding under its credit facility and redeem a portion of its outstanding 6.000% notes due 2024 (callable on February 15, 2021). However, the Company may re-borrow under its credit facility and use such borrowings to invest in lower middle-market companies in accordance with its investment objective and strategies and for working capital and general corporate purposes. As of December 15, 2020, the Company had $50.0 million of outstanding indebtedness under its credit facility.Investors are advised to consider carefully the investment objective, risks and charges and expenses of the Company before investing. The preliminary prospectus supplement dated December 16, 2020 and the accompanying prospectus dated May 1, 2019, each of which has been filed with the Securities and Exchange Commission (the “SEC”), contain a description of these matters and other important information about the Company and should be read carefully before investing.This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of the Notes referred to in this press release, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction. A registration statement (File No. 333-223350) relating to the Notes was filed and has been declared effective by the SEC.This offering is being made solely by means of a written prospectus forming part of the effective registration statement and a related preliminary prospectus supplement, which may be obtained for free by visiting the SEC’s website at www.sec.gov or from Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, email: prospectus@raymondjames.com or by calling 800-248-8863. ABOUT FIDUS INVESTMENT CORPORATIONFidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007.FORWARD-LOOKING STATEMENTSStatements included herein contain certain “forward-looking statements” within the meaning of the federal securities laws, including statements with regard to the Company’s Notes offering and the anticipated use of the net proceeds of the offering. Forward-looking statements can be identified by the use of forward looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of future events and our future performance, taking into account all information currently available to us. These statements are not guarantees of future events, performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including but not limited to the impact of the COVID-19 pandemic and the pandemic's impact on the U.S. and global economy, as well as those described from time to time in our filings with the SEC. Any forward-looking statement speaks only as of the date on which it is made. Fidus Investment Corporation undertakes no duty to update any forward-looking statements made herein, whether as a result of new information, future developments or otherwise, except as required by law.   Company Contact:Investor Relations Contact: Shelby E. SherardJody Burfening Chief Financial OfficerLHA (847) 859-3938(212) 838-3777 ssherard@fidusinv.comjburfening@lhai.com
Tue, 01 Dec 2020
16:49:36 +0000
Here is What Hedge Funds Think About Fidus Investment Corp (FDUS)
At the end of February we announced the arrival of the first US recession since 2009 and we predicted that the market will decline by at least 20% in (Recession is Imminent: We Need A Travel Ban NOW). In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each […]
Fri, 30 Oct 2020
19:01:36 +0000
Fidus Investment Corporation (FDUS) Q3 2020 Earnings Call Transcript
FDUS earnings call for the period ending September 30, 2020.
Fri, 30 Oct 2020
11:15:00 +0000
Fidus Investment Corp. to Host Earnings Call
NEW YORK, NY / ACCESSWIRE / October 30, 2020 / Fidus Investment Corp.
Thu, 29 Oct 2020
22:15:10 +0000
Fidus Investment (FDUS) Q3 Earnings and Revenues Top Estimates
Fidus Investment (FDUS) delivered earnings and revenue surprises of 17.65% and 5.59%, respectively, for the quarter ended September 2020. Do the numbers hold clues to what lies ahead for the stock?
Thu, 29 Oct 2020
21:23:51 +0000
Recap: Fidus Investment Q3 Earnings
Shares of Fidus Investment (NASDAQ:FDUS) fell 1.2% in after-market trading after the company reported Q3 results.Quarterly Results Earnings per share were up 14.29% year over year to $0.40, which beat the estimate of $0.34.Revenue of $21,077,000 higher by 9.77% year over year, which beat the estimate of $19,890,000.Looking Ahead Fidus Investment hasn't issued any earnings guidance for the time being.View more earnings on FDUSFidus Investment hasn't issued any revenue guidance for the time being.Technicals Company's 52-week high was at $16.1752-week low: $4.45Price action over last quarter: down 2.44%Company Overview Fidus Investment Corp is a closed end non-diversified management investment company. It provides customised debt and equity financing solutions to lower middle market companies. The firm's strategy is based on the principle that lower middle market companies require financing solutions from value added partners. It always looks for the opportunities to invest in lower middle market companies with proven business models, leading market position, high free cash flow and strong management teams and also mezzanine debt, senior secured debt and equity securities of lower middle market companies. Its portfolio constitutes a majority of the equities.See more from Benzinga * Click here for options trades from Benzinga * Ribbon Comms: Q3 Earnings Insights * Recap: Kearny Financial Q1 Earnings(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Thu, 29 Oct 2020
20:05:00 +0000
Fidus Investment Corporation Announces Third Quarter 2020 Financial Results
Regular Quarterly Dividend of $0.30 Per Share Declared for Fourth Quarter 2020 Board of Directors Declared Supplemental Cash Dividend of $0.04 Per ShareEVANSTON, Ill., Oct. 29, 2020 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the third quarter ended September 30, 2020.Third Quarter 2020 Financial Highlights * Total investment income of $21.1 million * Net investment income of $6.9 million, or $0.28 per share * Adjusted net investment income of $9.7 million, or $0.40 per share(1) * Net increase in net assets resulting from operations of $20.7 million, or $0.85 per share * Received proceeds from repayments and realizations of $33.8 million, recognizing $1.3 million in net realized gains * Paid regular quarterly dividend of $0.30 per share on September 25, 2020 * Net asset value (NAV) of $389.6 million, or $15.94 per share, as of September 30, 2020 * Estimated spillover income (or taxable income in excess of distributions) as of September 30, 2020 of $25.9 million, or $1.06 per shareManagement Commentary“Our third quarter results indicate that the overall health of Fidus’ portfolio continues to improve. We ended the quarter with NAV per share of $15.94, a 3.6% increase versus second quarter,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation. “As expected, originations were paused this quarter but, with deal flow recovering, our pipeline of opportunities is increasingly robust. We remain steadfast in our commitment to our underwriting discipline of selectively investing in lower middle market companies with defensive characteristics and strong cash flow profiles. We continue to manage the business with an abundance of caution, focused on maintaining a healthy liquidity position and preserving long-term capital during these uncertain times.”(1) Supplemental information regarding adjusted net investment income: On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.Third Quarter 2020 Financial ResultsThe following table provides a summary of our operating results for the three months ended September 30, 2020 as compared to the same period in 2019 (dollars in thousands, except per share data):  Three Months Ended September 30,               2020  2019  $ Change % Change Interest income $18,765 $16,133  $2,632  16.3% Payment-in-kind interest income  1,249  2,253   (1,004) (44.6%) Dividend income  471  (38)  509  NM Fee income  427  825   (398) (48.2%) Interest on idle funds and other income  165  28   137  489.3% Total investment income $21,077 $19,201  $1,876  9.8%           Net investment income $6,902 $7,362  $(460) (6.2%) Net investment income per share $0.28 $0.30  $(0.02) (6.7%)           Adjusted net investment income (1) $9,663 $8,669  $994  11.5% Adjusted net investment income per share (1) $0.40 $0.35  $0.05  14.3%           Net increase (decrease) in net assets resulting from operations $20,707 $13,895  $6,812  49.0% Net increase (decrease) in net assets resulting from operations per share $0.85 $0.57  $0.28  49.1%             The $1.9 million increase in total investment income for the three months ended September 30, 2020 as compared to the same period in 2019 was primarily attributable to (i) a $1.6 million increase in total interest income (which includes a $1.0 million decrease in payment-in-kind interest income) resulting from higher average debt investment balances outstanding, (ii) a $0.5 million increase in dividend income due to increased levels of distributions received from equity investments and tax true-ups related to the tax character of prior year distributions, and (iii) a $(0.4) million decrease in fee income resulting from a decrease in structuring fees due to a comparative decrease in new investments, partially offset by an increase in prepayment and amendment fees. For the three months ended September 30, 2020, total expenses, including income tax provision, were $14.2 million, an increase of $2.4 million, or 19.7%, from the $11.8 million of total expenses, including the income tax provision, for the three months ended September 30, 2019. The increase was primarily attributable to (i) a $1.5 million increase in capital gains incentive fee accrued, (ii) a $0.5 million increase in interest and financing expenses due to an increase in average borrowings outstanding (iii) a $0.2 increase in income incentive fee, and (iv) a $0.1 million increase in professional fees.Net investment income decreased by $(0.5) million, or (6.2)% to $6.9 million during the three months ended September 30, 2020 as compared to the same period in 2019, as a result of the $2.4 million increase in total expenses including income tax provision, partially offset by the $1.9 million increase in total investment income. Adjusted net investment income(1), which excludes the capital gains incentive fee accrual, increased by $1.0 million, or 11.5%, to $9.7 million.For the three months ended September 30, 2020, the total net realized gain on investments, net of income tax provision on realized gains, was $1.3 million, as compared to total net realized gain on investments, net of income tax provision on realized gains, of $10.6 million for the same period in 2019.Portfolio and Investment ActivitiesAs of September 30, 2020, the fair value of our investment portfolio totaled $715.4 million and consisted of 63 active portfolio companies and three portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 99.9% of the related cost basis as of September 30, 2020. As of September 30, 2020, 19 portfolio company’s debt investments bore interest at a variable rate, which represented $203.0 million, or 32.4%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of September 30, 2020, our average active portfolio company investment at amortized cost was $11.3 million, which excludes investments in the three portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 12.1% as of September 30, 2020. The weighted average yield was computed using the effective interest rates for debt investments at cost as of September 30, 2020, including the accretion of OID and loan origination fees, but excluding investments on non-accrual status, if any.As of September 30, 2020, we had debt investments in one portfolio company on non-accrual status, which had an aggregate cost and fair value of $35.3 million and $5.3 million, respectively.Liquidity and Capital ResourcesAs of September 30, 2020, we had $24.7 million in cash and cash equivalents and $77.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). As of September 30, 2020, we had SBA debentures outstanding of $147.0 million, $50.0 million outstanding of our 5.875% notes due 2023 (the “2023 Notes”), $69.0 million outstanding of our 6.000% notes due 2024, $63.3 million outstanding of our 5.375% notes due 2024 (the “November 2024 Notes” and collectively with the 2023 Notes and February 2024 Notes, the “Public Notes”), and $23.0 million outstanding under our Credit Facility. As of September 30, 2020, the weighted average interest rate on total debt outstanding was 4.6%.Subsequent EventsOn October 1, 2020, we exited our debt and equity investments in Pugh Lubricants, LLC. We received payment in full of $26.6 million on our subordinated debt investment, which includes a prepayment fee. We received a distribution on our common equity investment for a realized gain of approximately $0.5 million.On October 28, 2020, we invested $6.0 million in second lien debt, which was a partial funding of a $12.0 million note commitment, and $1.5 million common equity in a leading regional distributor of pool equipment and supplies.Fourth Quarter 2020 Dividend of $0.30 Per Share and Supplemental Dividend of $0.04 Per Share DeclaredOn October 26, 2020, our board of directors declared a regular quarterly dividend of $0.30 per share payable on December 18, 2020 to stockholders of record as of December 4, 2020.   In addition, our Board of Directors declared a supplemental dividend of $0.04 per share payable December 18, 2020 to stockholders of record as of December 4, 2020.When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2020 taxable income, as well as the tax attributes for 2020 dividends, will be made after the close of the 2020 tax year. The final tax attributes for 2020 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.Third Quarter 2020 Financial Results Conference CallManagement will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, October 30, 2020. To participate in the conference call, please dial (877) 810-3368 approximately 10 minutes prior to the call. International callers should dial (914) 495-8561. Please reference conference ID 7287532.A live webcast of the conference call will be available at http://investor.fdus.com/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software.A telephone replay of the conference call will be available from 12:00pm ET on October 30, 2020 until 11:59pm ET on November 7, 2020 and may be accessed by calling (855) 859-2056 (domestic dial-in) or (404) 537-3406 (international dial-in) and reference conference ID 7287532. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.ABOUT FIDUS INVESTMENT CORPORATIONFidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007.FORWARD-LOOKING STATEMENTSThis press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control and including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law. FIDUS INVESTMENT CORPORATION Consolidated Statements of Assets and Liabilities (in thousands, except shares and per share data)  September 30, 2020   December 31,     (unaudited) 2019  ASSETS         Investments, at fair value:         Control investments (cost: $31,044 and $27,718, respectively)  $23,989 $21,820  Affiliate investments (cost: $40,920 and $56,328, respectively)   77,852  121,555  Non-control/non-affiliate investments (cost: $644,455 and $620,453, respectively)   613,564  623,544  Total investments, at fair value (cost: $716,419 and $704,499, respectively)   715,405  766,919  Cash and cash equivalents   24,682  15,012  Interest receivable   7,071  6,331  Prepaid expenses and other assets   1,143  1,177  Total assets  $748,301 $789,439  LIABILITIES         SBA debentures, net of deferred financing costs  $143,871 $153,802  Public Notes, net of deferred financing costs   177,883  176,901  Borrowings under Credit Facility, net of deferred financing costs   21,837  23,899  Accrued interest and fees payable   2,122  3,505  Base management fee payable – due to affiliate   3,224  3,334  Income incentive fee payable, net of incentive fee waiver – due to affiliate  2,374  1,497  Capital gains incentive fee payable – due to affiliate  6,335  12,715  Administration fee payable and other, net – due to affiliate   554  487  Taxes payable   123  547  Accounts payable and other liabilities   426  442  Total liabilities   358,749  377,129  Commitments and contingencies         NET ASSETS         Common stock, $0.001 par value (100,000,000 shares authorized, 24,437,400 and 24,463,119 shares          issued and outstanding at September 30, 2020 and December 31, 2019, respectively)  24  24  Additional paid-in capital   365,793  366,061  Total distributable earnings   23,735  46,225  Total net assets   389,552  412,310  Total liabilities and net assets  $748,301 $789,439  Net asset value per common share  $15.94 $16.85   FIDUS INVESTMENT CORPORATION Consolidated Statements of Operations (unaudited) (in thousands, except shares and per share data)      Three Months Ended  Nine Months Ended     September 30, September 30,       2020  2019   2020  2019 Investment Income:                Interest income                 Control investments $ 467  $ 70   $1,348  $420    Affiliate investments    849    1,192    2,663   4,126    Non-control/non-affiliate investments    17,449    14,871    51,060   40,686     Total interest income    18,765    16,133    55,071   45,232   Payment-in-kind interest income                 Control investments    453    191    1,323   1,611    Affiliate investments    106    86    175   254    Non-control/non-affiliate investments    690    1,976    2,013   5,973     Total payment-in-kind interest income    1,249    2,253    3,511   7,838   Dividend income                 Control investments    —    —    —   —    Affiliate investments    357    1    465   942    Non-control/non-affiliate investments    114    (39)   160   (54)    Total dividend income    471    (38)   625   888   Fee income                 Control investments    —    —    —   349    Affiliate investments    6    4    72   26    Non-control/non-affiliate investments    421    821    1,878   3,150     Total fee income    427    825    1,950   3,525   Interest on idle funds and other income    165    28    336   116  Total investment income    21,077    19,201    61,493   57,599  Expenses:                Interest and financing expenses    4,878    4,421    14,701   12,197   Base management fee    3,223    3,179    9,688   9,066   Incentive fee - income    2,374    2,163    6,342   5,947   Incentive fee - capital gains   2,761    1,307    (6,380)  373   Administrative service expenses    412    422    1,242   1,199   Professional fees    301    217    1,508   1,213   Other general and administrative expenses    224    210    1,059   1,025  Total expenses before income incentive fee waiver    14,173    11,919    28,160   31,020   Incentive fee waiver - income    -    -    (423)  -  Total expenses, net of income incentive fee waiver    14,173    11,919    27,737   31,020  Net investment income before income taxes    6,904    7,282    33,756   26,579   Income tax provision (benefit)    2    (80)   146   (25) Net investment income    6,902    7,362    33,610   26,604  Net realized and unrealized gains (losses) on investments:                Net realized gains (losses):                Control investments    —    —    —   (1,268)   Affiliate investments    (65)   26    24,354   (73)   Non-control/non-affiliate investments    1,380    10,507    8,543   10,172   Total net realized gain (loss) on investments   1,315    10,533    32,897   8,831   Income tax (provision) benefit from realized gains on investments    —    32    (1,065)  (261)  Net change in unrealized appreciation (depreciation):                Control investments    607    (9,843)   (1,157)  (8,270)   Affiliate investments    7,158    (1,701)   (28,295)  3,585    Non-control/non-affiliate investments    4,899    7,722    (33,982)  (1,621)  Total net change in unrealized appreciation (depreciation) on investments   12,664    (3,822)   (63,434)  (6,306) Net gain (loss) on investments    13,979    6,743    (31,602)  2,264  Realized losses on extinguishment of debt   (174)   (210)   (299)  (399) Net increase in net assets resulting from operations  $ 20,707  $ 13,895   $1,709  $28,469  Per common share data:               Net investment income per share-basic and diluted  $ 0.28  $ 0.30   $1.37  $1.09  Net increase in net assets resulting from operations per share — basic and diluted     $ 0.85  $ 0.57   $0.07  $1.16  Dividends declared per share  $ 0.30  $ 0.39   $0.99  $1.17  Weighted average number of shares outstanding — basic and diluted    24,437,400    24,463,119    24,444,120   24,463,119                     Schedule 1Supplemental Information Regarding Adjusted Net Investment IncomeOn a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three and nine months ended September 30, 2020 and 2019.     ($ in thousands)  ($ in thousands)      Three Months Ended  Nine Months Ended       September 30,  September 30,     (unaudited) (unaudited)       2020  2019   2020  2019  Net investment income  $ 6,902  $ 7,362   $33,610  $26,604  Capital gains incentive fee expense (reversal)   2,761    1,307    (6,380)  373  Adjusted net investment income (1)  $ 9,663  $ 8,669   $27,230  $26,977                                           (Per share)  (Per share)      Three Months Ended  Nine Months Ended       September 30,  September 30,     (unaudited) (unaudited)       2020  2019   2020  2019  Net investment income  $ 0.28  $ 0.30   $1.37  $1.09  Capital gains incentive fee expense (reversal)   0.11    0.05    (0.26)  0.02  Adjusted net investment income (1)  $ 0.40  $ 0.35   $1.11  $1.10                    (1) Adjusted net investment income per share amounts are calculated as adjusted net investment income dividend by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here. Company Contact:Investor Relations Contact: Shelby E. SherardJody Burfening Chief Financial OfficerLHA (847) 859-3940(212) 838-3777 ssherard@fidusinv.comjburfening@lhai.com
Thu, 22 Oct 2020
16:33:04 +0000
Fidus Investment (FDUS) Earnings Expected to Grow: Should You Buy?
Fidus Investment (FDUS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Mon, 19 Oct 2020
12:30:00 +0000
Fidus Investment Corporation Schedules Third Quarter 2020 Earnings Release and Conference Call
EVANSTON, Ill., Oct. 19, 2020 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ: FDUS) (“Fidus” or the “Company”) today announced that it will report its third quarter 2020 financial results on Thursday, October 29, 2020 after the close of the financial markets. Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, October 30, 2020. To participate in the conference call, please dial (877) 810-3368 approximately 10 minutes prior to the call. International callers should dial (914) 495-8561. Please reference conference ID 7287532.A live webcast of the conference call will be available at http://investor.fdus.com/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software.A telephone replay of the conference call will be available from 12:00pm ET on October 30, 2020 until 11:59pm ET on November 7, 2020 and may be accessed by calling (855) 859-2056 (domestic dial-in) or (404) 537-3406 (international dial-in) and reference conference ID 7287532. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.ABOUT FIDUS INVESTMENT CORPORATIONFidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007.FORWARD-LOOKING STATEMENTSThis press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control and including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.Company Contact: Investor Relations Contact: Shelby E. Sherard LHA Investor Relations Chief Financial Officer Jody Burfening Fidus Investment Corporation (212) 838-3777 (847) 859-3938 JBurfening@lhai.com SSherard@fidusinv.com
Fri, 11 Sep 2020
12:33:12 +0000
Can Fidus (FDUS) Run Higher on Strong Earnings Estimate Revisions?
Fidus (FDUS) is seeing positive earnings estimate revisions, suggesting that it could be a solid choice for investors.
Wed, 12 Aug 2020
11:54:11 +0000
Top Ranked Income Stocks to Buy for August 12th
Top Ranked Income Stocks to Buy for August 12th
Thu, 06 Aug 2020
20:05:00 +0000
Fidus Investment Corporation Announces Second Quarter 2020 Financial Results
Regular Quarterly Dividend of $0.30 Per Share Declared for Third Quarter 2020EVANSTON, Ill., Aug. 06, 2020 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the second quarter ended June 30, 2020. Second Quarter 2020 Financial Highlights * Total investment income of $20.4 million * Net investment income of $9.3 million, or $0.38 per share * Adjusted net investment income of $9.0 million, or $0.37 per share(1) * Net increase in net assets resulting from operations of $8.0 million, or $0.33 per share * Invested $16.9 million in debt and equity securities, including two new portfolio companies * Received proceeds from repayments and realizations of $2.5 million, recognizing $0.2 million in net realized gains * Paid regular quarterly dividend of $0.30 per share on June 26, 2020 * Net asset value (NAV) of $376.2 million, or $15.39 per share, as of June 30, 2020 * Estimated spillover income (or taxable income in excess of distributions) as of June 30, 2020 of $27.4 million, or $1.12 per shareManagement Commentary“Our second quarter performance reflects the strength of our strategy of selectively investing in lower middle market businesses that possess resilient business models and generate excess cash for debt service.  Despite ongoing business disruptions and uncertainties associated with the COVID-19 pandemic, our portfolio generated adjusted net investment income of $0.37 with many investments performing materially better than we had expected last quarter, and we were able to remove two of them from non-accrual status,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation.  “Overall, the fair value of the portfolio has stabilized after an approximately 5.7% write-down last quarter and we ended the quarter with NAV per share of $15.39.  During this period of challenging economic conditions, we will continue to manage our business conservatively focused on maintaining liquidity and on long-term capital preservation.” Supplemental information regarding adjusted net investment income:On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure.  This measure is provided in addition to, but not as a substitute for, net investment income.  Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses.  The management agreement with our advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses.  In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate.  As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.Second Quarter 2020 Financial ResultsThe following table provides a summary of our operating results for the three months ended June 30, 2020 as compared to the same period in 2019 (dollars in thousands, except per share data):  Three Months Ended June 30,               2020  2019 $ Change % Change Interest income $  18,839 $  13,847 $  4,992  36.1% Payment-in-kind interest income    1,181    2,955    (1,774) (60.0%) Dividend income    18    631    (613) (97.1%) Fee income    241    601    (360) (59.9%) Interest on idle funds and other income    154    34    120  352.9% Total investment income $  20,433 $  18,068 $  2,365  13.1%           Net investment income $  9,291 $  9,643 $  (352) (3.7%) Net investment income per share $  0.38 $  0.39 $  (0.01) (2.6%)           Adjusted net investment income (1) $  9,028 $  8,354 $  674  8.1% Adjusted net investment income per share (1) $  0.37 $  0.34 $  0.03  8.8%           Net increase (decrease) in net assets resulting from operations $  7,973 $  3,202 $  4,771  149.0% Net increase (decrease) in net assets resulting from operations per share $  0.33 $  0.13 $  0.20  153.8% The $2.4 million increase in total investment income for the three months ended June 30, 2020 as compared to the same period in 2019 was primarily attributable to (i) a $3.2 million increase in total interest income (which includes a $1.8 million decrease in payment-in-kind interest income) resulting from higher average debt investment balances outstanding, (ii) a $(0.4) million decrease in fee income resulting from a decrease in structuring fees due to a comparative decrease in new investments, a decrease in prepayment fee income, partially offset by an increase in amendment fees, and (iii)  a $(0.6) million decrease in dividend income. For the three months ended June 30, 2020, total expenses, including the incentive fee waiver and income tax provision, were $11.1 million, an increase of $2.7 million, or 32.2%, from the $8.4 million of total expenses, including the incentive fee waiver and income tax provision, for the three months ended June 30, 2019. The increase was primarily attributable to (i) a $1.0 million increase in capital gains incentive fee accrued, (ii) a $0.8 million increase in interest and financing expenses due to an increase in average borrowings outstanding (iii) a $0.4 increase in income incentive fee net of a one-time incentive fee waiver, (iv) a $0.2 million increase in the base management fee due to higher average total assets, and (v) a $0.2 million increase in professional fees.Net investment income decreased by $(0.3) million, or (3.7)% to $9.3 million during the three months ended June 30, 2020 as compared to the same period in 2019, as a result of the $2.7 million increase in total expenses including incentive fee waiver and income tax provision, partially offset by the $2.4 million increase in total investment income. Adjusted net investment income(1), which excludes the capital gains incentive fee accrual, increased by $0.7 million, or 8.1%, to $9.0 million.For the three months ended June 30, 2020, the total net realized gain on investments, net of income tax provision on realized gains, was $0.2 million, as compared to total net realized loss on investments, net of income tax provision on realized losses, of $(0.4) million for the same period in 2019.Portfolio and Investment ActivitiesAs of June 30, 2020, the fair value of our investment portfolio totaled $732.6 million and consisted of 64 active portfolio companies and three portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 98.2% of the related cost basis as of June 30, 2020. As of June 30, 2020, 20 portfolio companies' debt investments bore interest at a variable rate, which represented $210.3 million, or 32.0%, of our debt investment portfolio on a fair value basis, and the remainder of our debt investment portfolio was comprised of fixed rate investments. As of June 30, 2020, our average active portfolio company investment at amortized cost was $11.6 million, which excludes investments in the three portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 12.0% as of June 30, 2020. The weighted average yield was computed using the effective interest rates for debt investments at cost as of June 30, 2020, including the accretion of OID and loan origination fees, but excluding investments on non-accrual status, if any.Second quarter 2020 investment activity included the following new portfolio company investments: * ECM Industries, LLC a global manufacturer and supplier of electrical products through a wide range of premium brands. Fidus invested $12.5 million in subordinated debt and common equity. * Ipro Tech, LLC a provider of end-to-end eDiscovery and information governance software to top law firms, corporations, and specialty service providers. Fidus invested $2.5 million in first lien debt.As of June 30, 2020, we had debt investments in one portfolio company on non-accrual status and a debt investment in one portfolio company on PIK-only non-accrual status, which had an aggregate cost and fair value of $41.6 million and $21.4 million, respectively.Liquidity and Capital ResourcesAs of June 30, 2020, we had $19.3 million in cash and cash equivalents and $57.0 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). As of June 30, 2020, we had SBA debentures outstanding of $156.5 million, $50.0 million outstanding of our 5.875% notes due 2023 (the “2023 Notes”), $69.0 million outstanding of our 6.000% notes due 2024, $63.3 million outstanding of our 5.375% notes due 2024 (the “November 2024 Notes” and collectively with the 2023 Notes and February 2024 Notes, the “Public Notes”), and $43.0 million outstanding under our Credit Facility. As of June 30, 2020, the weighted average interest rate on total debt outstanding was 4.5%.Subsequent EventsOn July 2, 2020, the Company exited its debt investment in Hoonuit, LLC. The Company received payment in full of $7.3 million on its first lien debt, which includes a prepayment penalty.On July 24, 2020, we exited our debt and equity investments in Microbiology Research Associates, Inc.  We received payment in full of $9.0 million on our subordinated debt investment.  We sold our common equity investment for a realized gain of approximately $1.4 million.Third Quarter 2020 Dividend of $0.30 Per Share DeclaredOn August 3, 2020 our board of directors declared a regular quarterly dividend of $0.30 per share payable on September 25, 2020 to stockholders of record as of September 11, 2020.When declaring dividends, our board of directors reviews estimates of taxable income available for distribution, which differs from consolidated income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2020 taxable income, as well as the tax attributes for 2020 dividends, will be made after the close of the 2020 tax year.  The final tax attributes for 2020 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.Second Quarter 2020 Financial Results Conference CallManagement will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, August 7, 2020.  To participate in the conference call, please dial (877) 810-3368 approximately 10 minutes prior to the call. International callers should dial (914) 495-8561.  Please reference conference ID 1686206. A live webcast of the conference call will be available at http://investor.fdus.com/events-presentations.  Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software.A telephone replay of the conference call will be available from 12:00pm ET on August 7, 2020 until 11:59pm ET on August 15, 2020 and may be accessed by calling (855) 859-2056 (domestic dial-in) or (404) 537-3406 (international dial-in) and reference conference ID 1686206.  An archived replay of the conference call will also be available in the investor relations section of the Company’s website.ABOUT FIDUS INVESTMENT CORPORATIONFidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007.FORWARD-LOOKING STATEMENTSThis press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control and including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.FIDUS INVESTMENT CORPORATION Consolidated Statements of Assets and Liabilities (in thousands, except shares and per share data)  June 30, 2020       December 31,   (unaudited) 2019 ASSETS       Investments, at fair value:         Control investments (cost: $29,591 and $27,718, respectively) $  21,929 $  21,820   Affiliate investments (cost: $40,792 and $56,328, respectively)    70,566    121,555   Non-control/non-affiliate investments (cost: $675,915 and $620,453, respectively)    640,125    623,544 Total investments, at fair value (cost: $746,298 and $704,499, respectively)    732,620    766,919 Cash and cash equivalents    19,268    15,012 Interest receivable    8,208    6,331 Prepaid expenses and other assets    1,348    1,177 Total assets $  761,444 $  789,439 LIABILITIES       SBA debentures, net of deferred financing costs $  153,061 $  153,802 Public Notes, net of deferred financing costs    177,553    176,901 Borrowings under Credit Facility, net of deferred financing costs    41,715    23,899 Accrued interest and fees payable    3,411    3,505 Base management fee payable – due to affiliate    3,193    3,334 Income incentive fee payable, net of incentive fee waiver – due to affiliate    1,690    1,497 Capital gains incentive fee payable – due to affiliate    3,574    12,715 Administration fee payable and other, net – due to affiliate    415    487 Taxes payable    123    547 Accounts payable and other liabilities    533    442 Total liabilities    385,268    377,129 Commitments and contingencies       NET ASSETS       Common stock, $0.001 par value (100,000,000 shares authorized, 24,437,400 and 24,463,119 shares        issued and outstanding at June 30, 2020 and December 31, 2019, respectively)    24    24 Additional paid-in capital    365,793    366,061 Total distributable earnings    10,359    46,225 Total net assets    376,176    412,310 Total liabilities and net assets $  761,444 $  789,439 Net asset value per common share $  15.39 $  16.85   FIDUS INVESTMENT CORPORATION Consolidated Statements of Operations (unaudited) (in thousands, except shares and per share data)     Three Months Ended  Six Months Ended     June 30, June 30,      2020  2019   2020  2019  Investment Income:               Interest income                Control investments $  449  $  68   $  881  $  350    Affiliate investments    831     1,414      1,814     2,934    Non-control/non-affiliate investments    17,559     12,365      33,611     25,815     Total interest income    18,839     13,847      36,306     29,099   Payment-in-kind interest income                Control investments    445     183      870     1,420    Affiliate investments    29     85      69     168    Non-control/non-affiliate investments    707     2,687      1,323     3,997     Total payment-in-kind interest income     1,181     2,955      2,262     5,585   Dividend income                Control investments    —      —       —      —     Affiliate investments    1     573      108     941    Non-control/non-affiliate investments    17     58      46     (15)    Total dividend income    18     631      154     926   Fee income                Control investments    —      —       —      349    Affiliate investments    66     —       66     22    Non-control/non-affiliate investments    175     601      1,457     2,329     Total fee income     241     601      1,523     2,700   Interest on idle funds and other income    154     34      171     88  Total investment income    20,433     18,068      40,416     38,398  Expenses:               Interest and financing expenses    4,863     4,052      9,823     7,776   Base management fee    3,193     3,016      6,465     5,887   Incentive fee - income    2,113     1,299      3,968     3,784   Incentive fee - capital gains    (263)    (1,289)     (9,141)    (934)  Administrative service expenses    364     378      830     777   Professional fees    654     406      1,207     996   Other general and administrative expenses    500     510      835     815  Total expenses before income incentive fee waiver    11,424     8,372      13,987     19,101   Incentive fee waiver - income    (423)    -       (423)    -   Total expenses, net of income incentive fee waiver    11,001     8,372      13,564     19,101  Net investment income before income taxes    9,432     9,696      26,852     19,297   Income tax provision (benefit)    141     53      144     55  Net investment income    9,291     9,643      26,708     19,242  Net realized and unrealized gains (losses) on investments:               Net realized gains (losses):                Control investments    —      —       —      (1,268)   Affiliate investments    87     (134)     24,419     (99)   Non-control/non-affiliate investments    117     23      7,163     (335)  Total net realized gain (loss) on investments    204     (111)     31,582     (1,702)  Income tax (provision) benefit from realized gains on investments    (14)     (301)     (1,065)    (293)  Net change in unrealized appreciation (depreciation):                Control investments    (68)    (64)     (1,764)    1,573    Affiliate investments    3,797     2,527      (35,453)    5,286    Non-control/non-affiliate investments    (5,237)    (8,492)     (38,881)    (9,343)  Total net change in unrealized appreciation (depreciation) on investments    (1,508)    (6,029)     (76,098)    (2,484) Net gain (loss) on investments    (1,318)    (6,441)     (45,581)    (4,479) Realized losses on extinguishment of debt    —      —       (125)    (189) Net increase (decrease) in net assets resulting from operations $  7,973  $  3,202   $  (18,998) $  14,574  Per common share data:              Net investment income per share-basic and diluted $  0.38  $  0.39   $  1.09  $  0.79  Net increase (decrease) in net assets resulting from operations per share — basic and diluted $  0.33  $  0.13   $  (0.78) $  0.60  Dividends declared per share $  0.30  $  0.39   $  0.69  $  0.78  Weighted average number of shares outstanding — basic and diluted    24,437,400     24,463,119      24,447,517     24,463,119  Schedule 1Supplemental Information Regarding Adjusted Net Investment IncomeOn a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure.  This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses.  The management agreement with our advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years.  In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate.  As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three and six months ended June 30, 2020 and 2019.     ($ in thousands)  ($ in thousands)      Three Months Ended  Six Months Ended      June 30,  June 30,     (unaudited) (unaudited)      2020  2019   2020  2019  Net investment income $  9,291  $  9,643   $  26,708  $  19,242  Capital gains incentive fee expense (reversal)    (263)    (1,289)     (9,141)    (934) Adjusted net investment income (1) $  9,028  $  8,354   $  17,567  $  18,308                                           (Per share)  (Per share)      Three Months Ended  Six Months Ended      June 30,  June 30,     (unaudited) (unaudited)      2020  2019   2020  2019  Net investment income $  0.38  $  0.39   $  1.09  $  0.79  Capital gains incentive fee expense (reversal)    (0.01)    (0.05)     (0.37)    (0.04) Adjusted net investment income (1) $  0.37  $  0.34   $  0.72  $  0.75  (1) Adjusted net investment income per share amounts are calculated as adjusted net investment income dividend by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here. Company Contact: Investor Relations Contact: Shelby E. Sherard Jody Burfening Chief Financial Officer LHA (847) 859-3940 (212) 838-3777 ssherard@fidusinv.com jburfening@lhai.com
Thu, 30 Jul 2020
16:33:04 +0000
Earnings Preview: Fidus Investment (FDUS) Q2 Earnings Expected to Decline
Fidus Investment (FDUS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Fri, 24 Jul 2020
12:00:00 +0000
Fidus Investment Corporation Schedules Second Quarter 2020 Earnings Release and Conference Call
EVANSTON, Ill., July 24, 2020 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ: FDUS) (“Fidus” or the “Company”) today announced that it will report its second quarter 2020 financial results on Thursday, August 6, 2020 after the close of the financial markets.  Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, August 7, 2020.  To participate in the conference call, please dial (877) 810-3368 approximately 10 minutes prior to the call. International callers should dial (914) 495-8561.  Please reference conference ID 1686206. A live webcast of the conference call will be available at http://investor.fdus.com/events-presentations.  Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software.A telephone replay of the conference call will be available from 12:00pm ET on August 7, 2020 until 11:59pm ET on August 15, 2020 and may be accessed by calling (855) 859-2056 (domestic dial-in) or (404) 537-3406 (international dial-in) and reference conference ID 1686206.  An archived replay of the conference call will also be available in the investor relations section of the Company’s website.ABOUT FIDUS INVESTMENT CORPORATIONFidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007.FORWARD-LOOKING STATEMENTSThis press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control and including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.Company Contact: Shelby E. Sherard Chief Financial Officer Fidus Investment Corporation (847) 859-3938 SSherard@fidusinv.comInvestor Relations Contact: LHA Investor Relations Jody Burfening (212) 838-3777 JBurfening@lhai.com
Fri, 26 Jun 2020
14:46:02 +0000
Should Value Investors Choose Fidus Investment (FDUS) Stock?
Let's see if Fidus Investment (FDUS) stock is a good choice for value-oriented investors right now from multiple angles.
Mon, 22 Jun 2020
18:18:16 +0000
Hedge Funds Getting Bullish On Fidus Investment Corp (FDUS)
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 821 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. […]

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Fidus Investment Corporation (FDUS)