Eagle Point Income Company Inc. (the “Company”) (NYSE: EIC,
EICA) today announced financial results for the quarter and full
year ended December 31, 2022, net asset value (“NAV”) as of
December 31, 2022 and certain additional activity through February
15, 2023, and declared distributions on shares of the Company’s
common and preferred stock.
FOURTH QUARTER 2022 HIGHLIGHTS
- Net investment income (“NII”) of $0.49 per weighted average
common share, net of $0.03 per weighted average common share of
non-recurring expenses.1, 2
- NAV per common share of $12.91 as of December 31, 2022,
compared to $13.05 as of September 30, 2022.
- GAAP net income (inclusive of unrealized mark-to-market gains)
of $6.4 million, or $0.88 per weighted average common share.
- Weighted average effective yield of the Company’s
collateralized loan obligation (“CLO”) debt and equity portfolio,
based on amortized cost, was 12.82% as of December 31, 2022.
Weighted average expected yield of the Company’s portfolio, based
on fair market value, was 19.39% as of December 31, 2022.3
- Received $5.0 million in recurring cash distributions4 from the
Company’s investment portfolio.
- Issued 0.9 million shares of common stock at a premium to NAV
pursuant to the Company’s “at-the-market” offering program for
total net proceeds of $12.4 million.
- Declared a 14% increase in our monthly common distributions to
$0.16 per share beginning with the distribution paid on January 31,
2023.
SUBSEQUENT EVENTS
- NAV per common share estimated to be between $13.67 and $13.77
as of January 31, 2023; at the midpoint, this reflects a 6.3%
increase from the Company’s year-end NAV.
- Received $5.6 million of recurring cash distributions from the
Company’s investment portfolio.
- Issued 0.5 million shares of common stock pursuant to the
Company’s “at-the-market” offering program and its committed equity
financing program for total net proceeds of approximately $6.8
million.
- As of February 15, 2023, the Company had approximately $25.7
million of cash and capacity on its revolving credit facility
available for investment.
SECOND QUARTER 2023 COMMON DISTRIBUTION
- The Company is pleased to declare three monthly distributions
of $0.16 per share for the second quarter of 2023.
“We closed 2022 with another great quarter of NII performance.
2022 was a fantastic year for EIC as we directly benefited from the
significant increase in interest rates,” said Thomas Majewski,
Chairman and Chief Executive Officer. “In the quarter, we generated
NII of $0.52 per weighted average common share, excluding
non-recurring expenses, which, once again, comfortably exceeded
common distributions paid. In addition, we were pleased to take
advantage of our ATM program in the quarter, raising additional
capital at a premium to NAV. Moving into 2023, we remain confident
in our investment portfolio and well positioned to generate
compelling risk-adjusted returns over the long term.”
FOURTH QUARTER 2022 RESULTS
The Company’s NII for the quarter ended December 31, 2022 was
$0.49 per weighted average common share, net of non-recurring
expenses. This compared to $0.40 of NII per weighted average common
share for the quarter ended September 30, 2022 and $0.14 of NII and
realized capital gains per weighted average common share for the
quarter ended December 31, 2021.
NII for the quarter ended December 31, 2022 is net of a
non-recurring expense for an estimated Federal excise tax of $0.03
per weighted average common share.
For the quarter ended December 31, 2022, the Company recorded
GAAP net income of $6.4 million, or $0.88 per weighted average
common share. Net income was comprised of total investment income
of $5.5 million and net unrealized depreciation on certain
liabilities held at fair value of $3.1 million, partially offset by
unrealized depreciation on investments of $0.3 million and total
expenses of $1.9 million.
For the quarter ended December 31, 2022, the Company recorded
other comprehensive loss of $5.2 million.5
NAV as of December 31, 2022 was $101.9 million, or $12.91 per
common share, which is $0.14 lower than the Company’s NAV per
common share as of September 30, 2022, and $3.85 lower than the
Company’s NAV per common share as of December 31, 2021.
During the quarter ended December 31, 2022, the Company received
$5.0 million of recurring cash distributions from its investment
portfolio, or $0.69 per weighted average common share, which is
above the Company’s aggregate distributions on its common stock and
operating costs for the quarter.
As of December 31, 2022, the weighted average effective yield on
the Company’s CLO debt and equity portfolio, based on amortized
cost, was 12.82%, compared to 12.77% as of September 30, 2022 and
10.77% as of December 31, 2021.
Pursuant to the Company’s “at-the-market” offering, the Company
sold 0.9 million shares of common stock at a premium to NAV during
the fourth quarter for total net proceeds of approximately $12.4
million. The common stock issuance resulted in $0.11 per share of
NAV accretion for the quarter ended December 31, 2022.
FULL YEAR 2022 HIGHLIGHTS AND PORTFOLIO STATUS
For the fiscal year ended December 31, 2022, the Company
recorded a GAAP net loss of $15.9 million. Fiscal year net loss was
comprised of total investment income of $19.0 million, net
unrealized depreciation on certain liabilities held at fair value
of $3.7 million and de minimis net realized capital gains on
investments, offset by total net unrealized depreciation on
investments of $31.3 million, and net expenses of $7.4 million.
For the fiscal year ended December 31, 2022, the Company
received $21.0 million of recurring cash distributions from its
investment portfolio, or $2.97 per weighted average common
share.
As of December 31, 2022, on a look-through basis, and based on
the most recent CLO trustee reports received by such date, the
Company had indirect exposure to 1,455 unique corporate obligors.
The largest look-through obligor represented 0.9% of the Company’s
CLO debt and equity portfolio. The ten largest look-through
obligors together represented 6.2% of the Company’s CLO debt and
equity portfolio.
As of December 31, 2022, the Company had outstanding borrowings
from the revolving credit facility and the Company’s 5.00% Series A
Term Preferred Stock due 2026 (the “Series A Term Preferred Stock”)
which totaled approximately 32% of total assets (less current
liabilities). Over the long term, management expects the Company to
operate under normal market conditions generally with leverage
between 25% and 35% of total assets (less current liabilities).
Based on applicable market conditions at any given time, or should
significant opportunities present themselves, the Company may incur
leverage in excess of this amount, subject to applicable regulatory
and contractual limits.
FIRST QUARTER 2023 PORTFOLIO ACTIVITY THROUGH FEBRUARY 15,
2023 AND OTHER UPDATES
The Company received $5.6 million of recurring cash
distributions from its investment portfolio for the period from
January 1, 2023 through February 15, 2023. As of February 15, 2023,
some of the Company’s investments had not yet reached their payment
date for the quarter.
As of February 15, 2023, the Company had $25.7 million of cash
and capacity on its revolving credit facility available for
investment.
Pursuant to the Company’s “at-the-market” program and its
committed equity financing program, the Company issued 0.5 million
shares of common stock at a premium to NAV during the period from
January 1, 2023 to February 15, 2023, for total net proceeds to the
Company of approximately $6.8 million.
As previously published on the Company’s website, management’s
estimate of the Company’s range of NAV per common share as of
January 31, 2023 was $13.67 to $13.77.
FIRST QUARTER 2023 DISTRIBUTIONS
The Company paid a monthly distribution of $0.16 per common
share on January 31, 2023 to stockholders of record as of January
11, 2023. Additionally, and as previously announced, the Company
declared distributions of $0.16 per share of common stock payable
on February 28, 2023 and March 31, 2023 to stockholders of record
as of February 8, 2023 and March 13, 2023, respectively.
The Company paid a monthly distribution of $0.104167 per share
of the Company’s Series A Term Preferred Stock on January 31, 2023
to stockholders of record as of January 11, 2023. The distribution
represented a 5.00% annualized rate, based on the $25 liquidation
preference per share for the Series A Term Preferred Stock.
Additionally, and as previously announced, the Company declared
distributions of $0.104167 per share on its Series A Term Preferred
Stock on February 28, 2023 and March 31, 2023 to stockholders of
record as of February 8, 2023 and March 13, 2023, respectively.
Distributions on stock are generally paid from net investment
income (regular interest and dividends) and may also include
capital gains and/or a return of capital. The specific tax
characteristics of the distributions will be reported to the
Company’s stockholders on Form 1099 after the end of the calendar
year.
SECOND QUARTER 2023 DISTRIBUTIONS
The Company is pleased to announce the declaration of three
separate distributions of $0.16 per share on its common stock
payable on each of April 28, 2023, May 31, 2023 and June 30, 2023
to stockholders of record as of April 10, 2023, May 11, 2023 and
June 12, 2023, respectively.
The following schedule applies to the distributions:
Record Date
Payable Date
Amount per common share
April 10, 2023
April 28, 2023
$0.16
May 11, 2023
May 31, 2023
$0.16
June 12, 2023
June 30, 2023
$0.16
The Company is also pleased to announce the declaration of
distributions on shares of the Company’s Series A Term Preferred
Stock. The Company has declared a distribution of $0.104167 per
share on its Series A Term Preferred Stock payable on each of April
28, 2023, May 31, 2023 and June 30, 2023. The following schedule
applies to the distributions:
Record Date
Payable Date
Amount per share of Series A Term
Preferred Stock
April 10, 2023
April 28, 2023
$0.104167
May 11, 2023
May 31, 2023
$0.104167
June 12, 2023
June 30, 2023
$0.104167
The distributions on the Series A Term Preferred Stock reflect
an annual distribution rate of 5.00% of the $25 liquidation
preference per share of the Series A Term Preferred Stock.
CONFERENCE CALL
The Company will host a conference call at 11:30 a.m. (Eastern
Time) today to discuss the Company’s financial results for the
quarter and full year ended December 31, 2022, as well as a
portfolio update.
All interested parties may participate in the conference call by
dialing (877) 704-4453 (domestic) or (201) 389-0920
(international). Please reference Conference ID 13734984 when
calling and you are invited to dial in approximately 10 to 15
minutes prior to the start of the call.
A live webcast will also be available on the Company’s website
(www.eaglepointincome.com). Please go
to the Investor Relations section at least 15 minutes prior to the
call to register, download and install any necessary audio
software.
An archived replay of the call will be available shortly
afterwards until March 22, 2023. To hear the replay, please dial
(844) 512-2921 (toll-free) or (412) 317-6671 (international). For
the replay, enter Conference ID 13734984.
ADDITIONAL INFORMATION
The Company has made available on the investor relations section
of its website, www.eaglepointincome.com (in the financial
statements and reports section), its 2022 Annual Report, which
includes the Company’s audited consolidated financial statements as
of and for the period ended December 31, 2022. The Company also
published on its website (in the presentations and events section)
an investor presentation, which contains additional information
about the Company and its portfolio as of and for the quarter and
year ended December 31, 2022. The Company has filed these reports
with the Securities and Exchange Commission.
ABOUT EAGLE POINT INCOME COMPANY
The Company is a diversified, closed-end management investment
company. The Company’s primary investment objective is to generate
high current income, with a secondary objective to generate capital
appreciation, by investing primarily in junior debt tranches of
CLOs. In addition, the Company may invest up to 35% of its total
assets (at the time of investment) in CLO equity securities. The
Company is externally managed and advised by Eagle Point Income
Management LLC.
The Company makes certain unaudited portfolio information
available each month on its website in addition to making certain
other unaudited financial information available on its website
(www.eaglepointincome.com). This information includes (1) an
estimated range of the Company’s net investment income (“NII”) and
realized capital gains or losses per share of common stock for each
calendar quarter end, generally made available within the first
fifteen days after the applicable calendar month end, (2) an
estimated range of the Company’s net asset value (“NAV”) per share
of common stock for the prior month end and certain additional
portfolio-level information, generally made available within the
first fifteen days after the applicable calendar month end, and (3)
during the latter part of each month, an updated estimate of NAV,
if applicable, and, with respect to each calendar quarter end, an
updated estimate of the Company’s NII and realized capital gains or
losses per share for the applicable quarter, if available.
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act
of 1995. Statements other than statements of historical facts
included in this press release may constitute forward-looking
statements and are not guarantees of future performance 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 those described in the
prospectus and the Company’s other filings with the SEC. The
Company undertakes no duty to update any forward-looking statement
made herein. All forward-looking statements speak only as of the
date of this press release.
1 “Per weighted average common share” is based on the average
daily number of shares of common stock outstanding for the period
and “per share” refers to per share of the Company’s common
stock.
2 Non-recurring expense of $0.03 per weighted average common
share relates to a Federal excise tax on 2022 spillover income.
3 Weighted average effective yield is based on an investment’s
amortized cost whereas weighted average expected yield is based on
an investment’s fair market value as of the applicable period end
as disclosed in the Company’s financial statements, both of which
are subject to change from period to period. Please refer to the
Company’s audited financial statements for additional
disclosures.
4 “Recurring cash distributions” refers to the quarterly
distributions received by the Company from its CLO debt and equity
investments.
5 For the year ended December 31, 2022, the Company revised the
base market rate to determine the change in fair value on
liabilities attributable to market risk to a US Treasury Index from
a Markit CDX North America Investment Grade Index.
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version on businesswire.com: https://www.businesswire.com/news/home/20230222005444/en/
Investor and Media Relations: ICR 203-340-8510
IR@EaglePointIncome.com www.eaglepointincome.com
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