Hercules Technology Growth Capital, Inc. (NYSE: HTGC) (“Hercules”), the leading specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science, and cleantech industries, at all stages of development, announced today its financial results for the third quarter ended September 30, 2012.
Third Quarter 2012 Highlights:
- Record high total investment income of $23.9 million, an increase of 27.8%, in the third quarter of 2012, compared to $18.7 million for the third quarter of 2011.
- Increased NII during the quarter by 32.6% to approximately $11.4 million, as compared to $8.6 million in the third quarter of 2011. NII per share was $0.23, up 15.0%, on 48.8 million outstanding shares for the third quarter of 2012, compared to $0.20 per share on 43.1 million outstanding shares in the third quarter of 2011.
- Increased DNOI by approximately 31.6% to $12.5 million compared to $9.5 million in the third quarter of 2011. DNOI per share was $0.26, up 18.2%, on 48.8 million outstanding shares for the third quarter of 2012, compared to $0.22 per share on 43.1 million outstanding shares in the third quarter of 2011.
- Record high total investment assets increased 34.3% year over year to approximately $774.5 million as of September 30, 2012, compared to $ 576.5 million as of September 30, 2011.
- Originated approximately $136.4 million in total debt and equity commitments to new and existing portfolio companies.
- Funded approximately $91.4 million of debt and equity investments during the third quarter.
- Received approximately $38.4 million in principal repayments, including $7.8 million of early principal repayments and $30.6 million in scheduled principal payments.
- Ended the third quarter with approximately $261.8 million in available liquidity, including $107.1 million in cash, $24.7 million in available SBA borrowing capacity and $130.0 million in bank credit facility availability.
- Declared a quarterly dividend of $0.24 per share payable on November 21, 2012, to shareholders of record as of November 14, 2012; the twenty-ninth consecutive dividend since inception bringing total dividends declared since inception to $7.64 per share.
“Our third quarter results reflect significant growth of our investment portfolio as we reported record investment income and record investment assets for the third consecutive quarter," said Manuel A. Henriquez, Hercules co-founder, chairman and chief executive officer. “We continued to see strong demand for venture debt during the quarter, despite continued global economic uncertainty and the upcoming U.S. elections. As a result, we delivered better than expected originations for the quarter and have hired a number of senior professionals, five of which are in the technology group, focused on accelerating our growth and capitalizing on the many opportunities we see in the market. At the same time, we have bolstered and strengthened our balance sheet, adding well over $100 million in additional diversified sources of liquidity in September and October, to support portfolio growth for the fourth quarter of 2012 and beyond."