Post Earnings Coverage as Fifth Street Senior Floating Rate’s Q3 Topline Outperformed Market Expectations

Upcoming AWS Coverage on Eaton Vance Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 22, 2016 / Active Wall St. announces its post-earnings coverage on Fifth Street Senior Floating Rate Corp. (NASDAQ: FSFR) (“Fifth Street”). The Company reported its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on December 14, 2016. The Greenwich, Connecticut-based Company’s quarterly total investment income was down 6.2% y-o-y; however it still outperformed market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Fifth Street’s competitors within the Asset Management space, Eaton Vance Corp (NYSE: EV), report on November 22, 2016, results for the three months and fiscal year ended October 31, 2016. AWS will be initiating a research report on Eaton Vance in the coming days.

Today, AWS is promoting its earnings coverage on FSFR; touching on EV. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=FSFR

http://www.activewallst.com/registration-3/?symbol=EV

Earnings Reviewed

In Q4 FY16, Fifth Street’s quarterly total investment income came in at $13.20 million, lower than $14.07 million reported in the year-ago same quarter. However, total investment income numbers for the reported quarter beat Wall Street estimates by $0.51 million. During the reported quarter, the Company’s total interest income was $12.23 million versus $11.70 million in Q4 FY15. Fifth Street’s total fee income declined during Q4 FY16 to $209.55 thousand from $1.71 million in Q4 FY15. Additionally, the Company’s total dividend and other income stood at $700.00 million compared to $656.25 million in previous year’s same period.

For the quarter ended September 30, 2016, the Company reported net investment income of $6.34 million, or $0.22 per common diluted share, compared to $7.40 million, or $0.25 per common diluted share. The Company’s net investment income missed market consensus estimates of $0.23 per common share. Furthermore, earnings surged to $0.29 per common diluted share in Q4 FY16 from $0.01 per common diluted share in prior year’s same quarter.

During FY16, the Company’s total investment income stood at $53.43 million compared to $51.47 million in FY15. Fifth Street’s net investment income for FY16 was $25.29 million, or $0.86 per common diluted share, versus $28.28 million, or $0.96 per common diluted share in the last year corresponding period. Additionally, the Company reported loss of $0.15 per common diluted share for FY16 compared to earnings of $0.54 per common diluted share in FY15.

Operating Metrics

The Company’s net asset value as on September 30, 2016, stood at $11.06 per common share, compared to $12.11 per common share as on September 30, 2015. At the close of reported quarter, weighted average yield on debt investments, including the return on Fifth Street Glick JV, was 8.6%, and included a cash component of 8.3%. Additionally, the Company’s average portfolio EBITDA came in at $55.7 million as on September 30, 2016

Portfolio Standings and Liquidity

At the end of September quarter of FY16, the Company’s portfolio consisted 87.6% of senior secured floating-rate loans, 11% of investments in the subordinated notes and equity interests in Fifth Street Glick JV and 1.4% in equity investments.

Fifth Street’s total assets as on September 30, 2016, totaled $624.93 million compared to $697.71 million at September 30, 2015. The Company’s Board of Directors stated the fair value of the investment portfolio to be $573.60 million as on September 30, 2016, versus $623.65 million at September 30, 2015. Average portfolio of the Company’s debt investment size at fair value stood at $8.9 million as on September 30, 2016, versus $9.7 million at September 30, 2015.

As of September 30, 2016, FIFTH STREET Investments, cash and cash equivalents, including restricted cash aggregated to $28.8 million, were down from $52.7 million as on September 30, 2015. Furthermore, the Company’s regulatory debt-to-equity leverage ratio was 0.90x as September 30, 2016, compared to 0.91x as on September 30, 2015.

Dividend

In a separate press release on October 24, 2016, Fifth Street informed Wall Street that its Board of Directors on October 19, 2016, declared consistent monthly dividend of $0.075 per share for December 2016 through February 2017. The upcoming dividend payment is on December 30, 2016, with record date of December 15, 2016. The following monthly dividend will be payble on January 31, 2017 to shareholders on record as of January 13, 2017. Additionaly, the dividend for the month of February will paid on February 28, 2017, with record date of February 15, 2017.

Stock Performance

On Wednesday, the stock closed the trading session at $8.83, slipping 0.67% from its previous closing price of $8.89. A total volume of 140.03 thousand shares have exchanged hands, which was higher than the 3-month average volume of 136.56 thousand shares. Fifth Street’s stock price advanced 4.72% in the past three months, 15.29% in the last six months, and 21.33% in the previous twelve months. Furthermore, since the start of the year, shares of the company have surged 13.94%. The stock has a dividend yield of 10.19% and currently has a market capitalization of $260.19 million.

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