Main Street Capital Q4 Loss Widens - Update

(RTTNews) - Specialty investment company Main Street Capital Corp. (MAIN: News ) reported a net realized loss for the fourth quarter that widened from the year-ago period, hurt by a wider net realized loss from investments and a 7% decline in investment income.

The Houston, Texas-based company's net realized loss for the fourth quarter was $6.78 million or $0.63 per share, wider than loss of $0.94 million or $0.10 per share in the previous-year quarter.

The results for the latest quarter include net realized loss from investments of $9.28 million compared to net realized loss from investments of $3.63 million in the same period last year.

Excluding share-based compensation expense and net realized loss from investments, distributable net realized loss for the latest quarter widened to $6.48 million or $0.60 per share from $0.74 million or $0.08 per share in the year-ago period. On average, four analysts polled by Thomson Reuters expected the company to report earnings for the quarter of $0.21 per share. Analysts' estimates typically exclude special items.

Total investment income for the quarter decreased 7% to $4.31 million from $4.63 million in the prior-year quarter, but topped analysts' consensus revenue estimate for the quarter of $4.15 million.

Total expenses for the quarter declined to $1.81million from $1.94 million a year ago.

Net investment income for the fourth quarter declined to $2.49 million or $0.23 per share from $2.69 million or $0.29 per share in the prior-year period.

For fiscal year 2009, net realized income fell to $1.42 million or $0.14 per share from $11.71 million or $1.29 per share in the prior year.

Distributable net realized income fell to $2.49 million or $0.25 per share from $12.22 million or $1.34 per share in the previous year. Analysts expected the company to report earnings of $0.90 per share for the year.

The decrease in distributable net realized income was primarily attributable to the a net realized loss on investments during the year and a decrease in distributable net investment income. Total net realized loss from investments for the year was $7.80 million compared to net realized gain from investments of $1.40 million in the prior year. Investment income for the year declined 8% to $16.00 million from $17.30 million in the prior year, but topped analysts consensus revenue estimate of $15.85 million.

The decline in investment income for the year reflects a $1.4 million reduction in dividend income due to certain portfolio companies retaining their excess cash flow as additional cushion on account of the reduced economic visibility in the year. In addition, the decline in investment income also reflects a $1.3 million reduction in fee income on account of reduce portfolio exit activity and lower new investment originations.

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