WhiteHorse Finance, Inc. Announces First Quarter 2025 Earnings Results and Declares Quarterly Distribution of $0.385 Per Share
WhiteHorse Finance (WHF) reported its Q1 2025 financial results and declared a quarterly distribution of $0.385 per share, payable on July 3, 2025. The company's investment portfolio reached $651.0 million across 134 positions in 74 companies, with a weighted average yield of 12.1% on income-producing debt investments. Q1 performance showed challenges with total investment income declining 10.5% to $18.8 million, and net investment income falling 14.2% to $6.8 million ($0.294 per share). The portfolio primarily consists of first lien secured loans (79.4%) with variable interest rates. During Q1, WHF made investments in seven new portfolio companies totaling $40.8 million, while proceeds from sales and repayments were approximately $19.4 million.
WhiteHorse Finance (WHF) ha comunicato i risultati finanziari del primo trimestre 2025 e ha dichiarato una distribuzione trimestrale di 0,385$ per azione, pagabile il 3 luglio 2025. Il portafoglio investimenti della società ha raggiunto un valore di 651,0 milioni di dollari suddivisi in 134 posizioni in 74 aziende, con un rendimento medio ponderato del 12,1% su investimenti in debito a reddito. Le performance del primo trimestre hanno mostrato delle difficoltà, con un calo del reddito totale da investimenti del 10,5% a 18,8 milioni di dollari e una diminuzione del reddito netto da investimenti del 14,2% a 6,8 milioni di dollari (0,294$ per azione). Il portafoglio è composto principalmente da prestiti garantiti di primo grado (79,4%) con tassi di interesse variabili. Nel primo trimestre, WHF ha effettuato investimenti in sette nuove società del portafoglio per un totale di 40,8 milioni di dollari, mentre i proventi da vendite e rimborsi sono stati circa 19,4 milioni di dollari.
WhiteHorse Finance (WHF) informó sus resultados financieros del primer trimestre de 2025 y declaró una distribución trimestral de 0,385$ por acción, pagadera el 3 de julio de 2025. La cartera de inversiones de la compañía alcanzó 651,0 millones de dólares en 134 posiciones en 74 empresas, con un rendimiento promedio ponderado del 12,1% en inversiones de deuda generadoras de ingresos. El desempeño del primer trimestre mostró desafíos, con una disminución del ingreso total por inversiones del 10,5% a 18,8 millones de dólares, y una caída del ingreso neto por inversiones del 14,2% a 6,8 millones de dólares (0,294$ por acción). La cartera se compone principalmente de préstamos garantizados de primer grado (79,4%) con tasas de interés variables. Durante el primer trimestre, WHF realizó inversiones en siete nuevas compañías del portafolio por un total de 40,8 millones de dólares, mientras que los ingresos por ventas y reembolsos fueron aproximadamente 19,4 millones de dólares.
WhiteHorse Finance (WHF)는 2025년 1분기 재무 실적을 발표하고 분기별 배당금으로 주당 0.385달러를 선언했으며, 배당금 지급일은 2025년 7월 3일입니다. 회사의 투자 포트폴리오는 74개 기업에 걸쳐 134개 포지션으로 총 6억 5,100만 달러에 달하며, 수익 창출 부채 투자에 대한 가중 평균 수익률은 12.1%입니다. 1분기 실적은 도전 과제를 보였으며, 총 투자 수익은 10.5% 감소한 1,880만 달러, 순 투자 수익은 14.2% 감소한 680만 달러 (주당 0.294달러)를 기록했습니다. 포트폴리오는 주로 변동 금리의 1순위 담보 대출(79.4%)로 구성되어 있습니다. 1분기 동안 WHF는 7개의 신규 포트폴리오 기업에 총 4,080만 달러를 투자했으며, 매각 및 상환으로 인한 수익은 약 1,940만 달러였습니다.
WhiteHorse Finance (WHF) a publié ses résultats financiers du premier trimestre 2025 et a déclaré une distribution trimestrielle de 0,385$ par action, payable le 3 juillet 2025. Le portefeuille d'investissement de la société a atteint 651,0 millions de dollars répartis sur 134 positions dans 74 entreprises, avec un rendement moyen pondéré de 12,1 % sur les investissements en dette générant des revenus. La performance du premier trimestre a montré des difficultés, avec une baisse des revenus totaux d'investissement de 10,5 % à 18,8 millions de dollars, et une diminution du revenu net d'investissement de 14,2 % à 6,8 millions de dollars (0,294$ par action). Le portefeuille est principalement composé de prêts garantis de premier rang (79,4 %) avec des taux d'intérêt variables. Au cours du premier trimestre, WHF a investi dans sept nouvelles sociétés du portefeuille pour un total de 40,8 millions de dollars, tandis que les produits des ventes et remboursements s'élevaient à environ 19,4 millions de dollars.
WhiteHorse Finance (WHF) hat seine Finanzergebnisse für das erste Quartal 2025 veröffentlicht und eine vierteljährliche Ausschüttung von 0,385$ pro Aktie angekündigt, zahlbar am 3. Juli 2025. Das Anlageportfolio des Unternehmens erreichte einen Wert von 651,0 Millionen US-Dollar verteilt auf 134 Positionen in 74 Unternehmen, mit einer gewichteten durchschnittlichen Rendite von 12,1 % auf einkommensgenerierende Schuldtitel. Die Ergebnisse des ersten Quartals zeigten Herausforderungen, mit einem Rückgang der Gesamterträge aus Investitionen um 10,5 % auf 18,8 Millionen US-Dollar und einem Rückgang des Nettoinvestitionsertrags um 14,2 % auf 6,8 Millionen US-Dollar (0,294$ pro Aktie). Das Portfolio besteht hauptsächlich aus vorrangig besicherten Krediten (79,4 %) mit variablen Zinssätzen. Im ersten Quartal tätigte WHF Investitionen in sieben neue Portfoliounternehmen in Höhe von insgesamt 40,8 Millionen US-Dollar, während Erlöse aus Verkäufen und Rückzahlungen etwa 19,4 Millionen US-Dollar betrugen.
- Maintained consistent quarterly distribution of $0.385 per share for over 50 consecutive quarters
- Portfolio expansion with $40.8 million invested in seven new companies
- Strong portfolio diversification across 74 companies with 134 positions
- 79.4% of portfolio in first lien secured loans, indicating conservative risk management
- Almost all loans are variable rate, providing protection against interest rate changes
- 10.5% decline in total investment income to $18.8 million
- 14.2% decrease in net investment income to $6.8 million
- Net asset value per share decreased 1.6% to $12.11
- Current distribution of $0.385 exceeds quarterly earnings of $0.294 per share
- Pipeline showing fewer high-quality opportunities compared to previous year
Insights
WHF shows deteriorating earnings with distribution exceeding current EPS, raising dividend sustainability concerns despite portfolio growth.
WhiteHorse Finance's Q1 2025 results reveal concerning fundamentals beneath the maintained dividend. The most striking issue is the
The quarter showed broad-based deterioration with
Portfolio credit quality issues are evident in management's acknowledgment of "company-specific challenges" and "underperforming investments" requiring restructuring team intervention. The
On the positive side, the portfolio grew modestly to
The negative
Stuart Aronson, WhiteHorse Finance's Chief Executive Officer, commented, "Our first-quarter results continued to reflect company-specific challenges that obscure the underlying stability of our broader portfolio. While the BDC's earnings power has moderated relative to a year ago, we are actively addressing underperforming investments by leveraging the expertise of our dedicated restructuring team. Our deal pipeline is consistent with seasonal norms in terms of volume, though we are seeing fewer high-quality opportunities compared to this time last year. We continue to be active in the non-sponsor market and have expanded our origination capabilities to a 13th region. By maintaining our focus on credits with solid fundamentals, we believe we are well-positioned to navigate the current environment and support long-term value creation for our shareholders."
Summary Information as of March 31, 2025 and December 31, 2024 (unaudited):
Three Months Ended | Three Months Ended | Change | |||||||||
($ in thousands except per share data) | March 31, 2025 | December 31, 2024 | $ | % | |||||||
Total investment income | $ | 18,801 | $ | 21,009 | (2,208) | (10.5) | |||||
Total expenses, including excise tax | 11,958 | 13,032 | (1,074) | (8.2) | |||||||
Net investment income and core net investment income(1) | 6,843 | 7,977 | (1,134) | (14.2) | |||||||
Net investment income and core net investment income(1) per share | 0.294 | 0.343 | (0.049) | (14.3) | |||||||
Distributions per share | 0.385 | 0.385 | — | — | |||||||
Special distributions per share | — | 0.245 | (0.245) | NM | |||||||
Net realized gains (losses) | (402) | (12,293) | 11,891 | NM | |||||||
Net unrealized appreciation (depreciation) | (2,177) | 8,217 | (10,394) | NM | |||||||
Net increase (decrease) in net assets resulting from operations | 4,264 | 3,901 | 363 | 9.3 | |||||||
($ in thousands except per share data) | As of March 31, 2025 | As of December 31, 2024 | $ | % | |||||||
Total investments, at fair value(2) | $ | 650,999 | $ | 642,213 | 8,786 | 1.4 | |||||
STRS JV total investments, at fair value | 310,160 | 294,957 | 15,203 | 5.2 | |||||||
Net asset value per share | 12.11 | 12.31 | (0.20) | (1.6) | |||||||
Portfolio and Investment Activity
As of March 31, 2025, the fair value of WhiteHorse Finance's investment portfolio was
During the three months ended March 31, 2025, WhiteHorse Finance made investments in seven new portfolio companies for a total of
In addition to the transactions discussed above, during the three months ended March 31, 2025, WhiteHorse Finance transferred assets comprised of three new and one existing portfolio companies, totaling
Distributions
The Company's board of directors has declared a distribution of
On March 7, 2025, the Company declared a distribution of
Distributions are paid from taxable earnings and may include return of capital and/or capital gains. The specific tax characteristics of the distributions will be reported to stockholders on Form 1099-DIV after the end of the calendar year and in the Company's periodic reports filed with the Securities and Exchange Commission
Conference Call
WhiteHorse Finance will host a conference call to discuss its first quarter results for the period ended March 31, 2025, at 4:30 p.m. ET on Tuesday, May 13, 2025. To access the teleconference, please dial 800-267-6316 (domestic) or +1 203-518-9783 (international) approximately 10 minutes before the teleconference's scheduled start time and reference ID #WHFQ125. Investors may also access the call on the investor relations portion of the Company's website www.whitehorsefinance.com.
If you are unable to access the live teleconference, a replay will be available beginning approximately two hours after the call's completion through May 20, 2025. The teleconference replay can be accessed by dialing 800-839-1246 or +1 402-220-0464 for international callers. A webcast replay will also be available on the investor relations portion of the Company's website at www.whitehorsefinance.com.
About WhiteHorse Finance, Inc.
WhiteHorse Finance is a business development company that originates and invests in loans to privately held, lower middle market companies across a broad range of industries. The Company's investment activities are managed by H.I.G. WhiteHorse Advisers, LLC, an affiliate of H.I.G. Capital, LLC, ("H.I.G. Capital"). H.I.G. Capital is a leading global alternative asset manager with
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 from time to time in filings with the Securities and Exchange Commission. 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) "Core net investment income" is a non-GAAP financial measure. The Company believes that core net investment income provides useful information to investors and management because it reflects the Company's financial performance excluding (i) the net impact of costs associated with the refinancing of the Company's indebtedness, (ii) the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and (iii) excise and other income taxes related to such net realized gains and losses (net of incentive fees). 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. Additional information on core net investment income and a reconciliation of core net investment income to its most directly comparable GAAP financial measure, net investment income, are set forth in Schedule 1 hereto.
(2) Includes investments in WHF STRS Ohio Senior Loan Fund LLC ("STRS JV"), an unconsolidated joint venture, totaling
(3) Based on total capital raised by H.I.G. Capital and affiliates.
SCHEDULE 1
As a supplement to GAAP financial measures, the Company has provided information relating to core 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 determined in accordance with GAAP. The Company's non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted to exclude the net impact of costs associated with the refinancing of the Company's indebtedness, the accrual of the capital gains incentive fee attributable to net realized and unrealized gains and losses, and excise or other income taxes related to such net realized gains and losses (net of incentive fees). There were no excise or other income taxes related to net realized gains and losses for the quarters ended March 31, 2025 and March 31, 2024.
The following table provides a reconciliation of net investment income to core net investment income for the three months ended March 31, 2025 and March 31, 2024 (in thousands, except per share data):
March 31, 2025 | March 31, 2024 | ||||||||||||||
Amount | Per Share | Amount | Per Share | ||||||||||||
Amounts | Amounts | ||||||||||||||
Net investment income | $ | 6,843 | $ | 0.294 | $ | 10,815 | $ | 0.465 | |||||||
Net impact of costs associated with refinancing of indebtedness | - | - | - | - | |||||||||||
Accrual for capital gains incentive fee | - | - | - | - | |||||||||||
Net impact of excise tax expense related to net realized gains and losses | - | - | - | - | |||||||||||
Core net investment income | $ | 6,843 | $ | 0.294 | $ | 10,815 | $ | 0.465 | |||||||
Contacts
Stuart Aronson
WhiteHorse Finance, Inc.
212-506-0500
saronson@higwhitehorse.com
or
Joyson Thomas
WhiteHorse Finance, Inc.
305-379-2322
jthomas@higwhitehorse.com
or
Robert Brinberg
Rose & Company
212-257-5932
whitehorse@roseandco.com
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SOURCE WhiteHorse Finance, Inc.
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