Horizon Technology Finance (HRZN) Tops Q1 EPS by 3c

Horizon Technology Finance (NASDAQ: HRZN) reported Q1 EPS of $0.31, $0.03 better than the analyst estimate of $0.28.

• Net investment income ("NII") of $6.0 million, or $0.31 per share, compared to $4.3 million, or $0.26 per share for the prior-year period
• Total investment portfolio of $380.0 million as of March 31, 2021
• Net asset value of $217.7 million, or $11.07 per share, as of March 31, 2021
• Annualized portfolio yield on debt investments of 15.2% for the quarter
• Horizon funded eight loans totaling $51.0 million for a total of $69.5 million of loans funded through the Horizon Technology Finance Management ("HTFM") platform
• Raised total net proceeds of approximately $4.9 million with "at-the-market" ("ATM") offering program
• Experienced liquidity events from three portfolio companies
• Cash of $80.6 million and credit facility capacity of $174.3 million as of March 31, 2021
• Held portfolio of warrant and equity positions in 67 companies as of March 31, 2021
• Undistributed spillover income of $0.33 per share as of March 31, 2021
• Subsequent to quarter end, declared distributions of $0.10 per share payable in July, August and September 2021
• Issued $57.5 million of 4.875% 2026 Notes on March 30, 2021, and redeemed $37.4 million of 6.250% 2022 Notes on April 24, 2021

"We delivered a solid first quarter performance in all facets, growing our portfolio and generating net investment income of $0.31, in excess of our first quarter distributions to shareholders," said Robert D. Pomeroy, Jr., Chairman and Chief Executive Officer of Horizon. "During the quarter, the Company originated $51.0 million of new venture loans alongside $18.5 million in investments by HTFM's new investment vehicle, achieving growth and diversity for Horizon. Additionally, our predictive pricing strategy continued to be validated with three portfolio exits helping to produce an overall debt portfolio yield above 15%."

"We were also pleased to significantly improve our portfolio credit profile, ending the quarter with no 1-rated loans and no loans on non-accrual," continued Mr. Pomeroy. "As we look ahead, we expect HTFM's recent platform expansion will further enable Horizon to take advantage of the dynamic venture debt environment, and diversify its investment opportunities. With its strong balance sheet, a sizable committed backlog and a growing pipeline of opportunities, Horizon is well positioned to continue building its portfolio and deliver attractive returns to its shareholders."

For earnings history and earnings-related data on Horizon Technology Finance (HRZN) click here.

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