DailyBubble News
DailyBubble News

Silver Spike Investment Corp. (NASDAQ:SSIC) Q1 2024 Earnings Call Transcript

Silver Spike Investment Corp. (NASDAQ:SSIC) held its Q1 2024 Earnings Call on May 10, 2024. Despite not being one of the 30 most popular stocks among hedge funds at the end of the third quarter, the company remains focused on delivering strong financial results.

During the call, Umesh Mahajan, the Chief Financial Officer of Silver Spike Investment Corp, and Scott Gordon, the CEO, discussed the financial results for the first quarter ended March 31, 2024. The company’s financial statements for this period were released the day before the call and are accessible on their website.

Mahajan highlighted the forward-looking statements made during the call and encouraged participants to refer to the company’s SEC filings for information on potential risk factors. He also emphasized that the information presented during the call was accurate as of May 10, 2024.

One significant announcement during the call was the company’s agreement to purchase a loan portfolio from Chicago Atlantic Loan Portfolio, LLC. This transaction, subject to certain conditions, is expected to close in mid-2024. The company also filed a registration statement with the SEC in connection with this acquisition.

Financial highlights for the first quarter of 2024 were discussed, including gross investment income of $2.8 million and net investment income of negative $0.1 million. Transaction-related expenses of $2.1 million impacted the results for the quarter.

The company declared a regular quarterly cash dividend of $0.25 per share, payable on June 28th to stockholders of record on June 20th. The net asset value at the end of the period was $13.60 per share.

Silver Spike Investment Corp also provided an update on its origination efforts and deal pipeline, with an active pipeline of over $425 million. The company remains focused on working with industry operators to support their growth and expansion plans.

Overall, the call provided insights into Silver Spike Investment Corp’s financial performance and strategic initiatives for the future. The company continues to navigate the competitive landscape and drive value for its shareholders. More than 90% of our invested portfolio consists of floating-rate loans, leading to a gross portfolio yield of 18%, which is quite favorable compared to the broader listed BDC universe. Now, let me hand it over to Scott Gordon for some additional insights.

Scott Gordon: Thank you, Umesh. I’d like to take a moment to discuss the recent industry news regarding the DEA’s apparent approval of the HHS’s recommendation to reschedule cannabis. This move has been highly anticipated since the HHS announcement last year. While the timeline for the process is uncertain and could take several years due to potential challenges, the rescheduling could have a significant impact on company cash flows by eliminating the 280E tax effect. However, the devil is in the details, especially when it comes to timing and implementation. Despite the positive outlook, the current capital constraints in the industry are unlikely to change significantly.

We are cautious about making further predictions on the regulatory front as the rescheduling process unfolds. The SAFER Act and other reform initiatives are expected to face the same challenges and uncertainties that have been present for some time. While we are cautiously optimistic about the news, we acknowledge that the road ahead may not be smooth. Overall, it is a step in the right direction. Now, back to Umesh.

Umesh Mahajan: Thank you, Scott. Those were our prepared remarks. We are now open to questions. Any queries, Gigi?

0 0 votes
Article Rating
Notify of
Inline Feedbacks
View all comments
Would love your thoughts, please comment.x