Delaware
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814-00802
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27-2114934
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(State or other jurisdiction
of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Section 2
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Financial Information
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Item 2.02
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Results of Operations and Financial Condition
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Section 9
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Financial Statements and Exhibits
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Item 9.01
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Financial Statements and Exhibits
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99.1
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Press release of the Company dated November 8, 2011.
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Date: November 8, 2011
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HORIZON TECHNOLOGY FINANCE CORPORATION
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By:
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/s/ Robert D. Pomeroy, Jr.
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Robert D. Pomeroy, Jr.
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Chief Executive Officer
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·
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Declared a third quarter dividend of $0.45 per share, a 12.5% increase from previous payout
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·
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Increase in net assets from operations was $2.8 million, or $0.36 per share
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·
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Net investment income was $3.0 million, or $0.39 per share
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·
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Net asset value equaled $132.4 million, or $17.36 per share
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·
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Ended the quarter with an investment portfolio of $180.2 million
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·
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Portfolio weighted average yield was 14.2%
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·
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Unfunded loan approvals and commitments (“Committed Backlog”) totaled $18.7 million
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·
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Completed $150 million accordion credit facility with initial $75 million commitment
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For the three months
ended September 30
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For the nine months
ended September 30
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||||||||||||
2011
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2010
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2011
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2010
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||||||||||
($ in thousands)
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($ in thousands)
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||||||||||||
Beginning portfolio
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$
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186,029
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$
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143,008
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$
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136,810
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$
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113,878
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|||||
New loan funding
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7,000
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15,000
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86,833
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75,517
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|||||||||
Less refinanced balances
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—
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—
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(8,677
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)
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(10,909
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)
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|||||||
Net new loan funding
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7,000
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15,000
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78,156
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64,608
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|||||||||
Principal and stock payments received on investments
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(8,559
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)
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(11,278
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)
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(22,666
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)
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(28,104
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)
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|||||
Early pay-offs
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(4,315
|
)
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(9,777
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)
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(9,908
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)
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(13,231
|
)
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|||||
Accretion of loan fees
|
527
|
451
|
1,356
|
934
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|||||||||
New loan fees
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(40
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)
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(134
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)
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(967
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)
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(651
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)
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|||||
New equity investments
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—
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79
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577
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79
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|||||||||
Net depreciation on investments
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(456
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)
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1,654
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(3,172
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)
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1,490
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|||||||
Ending portfolio
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$
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180,186
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$
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139,003
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$
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180,186
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$
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139,003
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|||||
September 30,
2011
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December 31,
2010
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|||||||
ASSETS
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||||||||
Non-affiliate investments at fair value (cost of $179,651 and $133,494, respectively)
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$
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180,186
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$
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136,810
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||||
Cash and cash equivalents
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32,598
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76,793
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||||||
Interest receivable
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2,477
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1,938
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||||||
Other assets
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1,610
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664
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||||||
Total assets
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$
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216,871
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$
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216,205
|
||||
LIABILITIES
|
||||||||
Borrowings
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$
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81,885
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$
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87,425
|
||||
Base management fee payable
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362
|
360
|
||||||
Incentive fee payable
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1,453
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414
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||||||
Other accrued expenses
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792
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811
|
||||||
Total liabilities
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84,492
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89,010
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||||||
Net assets
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||||||||
Common stock, par value $0.001 per share, 100,000,000 shares authorized, 7,626,718 shares outstanding as of September 30, 2011 and 7,593,421 shares outstanding as of December 31, 2010
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8
|
8
|
||||||
Paid-in capital in excess of par
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124,361
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123,836
|
||||||
Accumulated undistributed (distribution in excess of) net investment income
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1,507
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(143
|
)
|
|||||
Net unrealized appreciation on investments
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508
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3,043
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||||||
Net realized gains on investments
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5,995
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451
|
||||||
Total net assets
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132,379
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127,195
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||||||
Total liabilities and net assets
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$
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216,871
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$
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216,205
|
||||
Net asset value per common share
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$
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17.36
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$
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16.75
|
||||
Three months ended
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Three months ended
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Nine months ended
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Nine months ended
|
|||||||||||||||
September 30, 2011(1)
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September 30, 2010(1)
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September 30, 2011(1)
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September 30, 2010(1)
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|||||||||||||||
Investment income
|
||||||||||||||||||
Interest income on non-affiliate investments
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$
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6,129
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$
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4,955
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$
|
16,911
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$
|
12,852
|
||||||||||
Interest income on cash and cash equivalents
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2
|
25
|
90
|
53
|
||||||||||||||
Fee income on non-affiliate investments
|
310
|
209
|
870
|
345
|
||||||||||||||
Total investment income
|
6,441
|
5,189
|
17,871
|
13,250
|
||||||||||||||
Expenses
|
||||||||||||||||||
Interest expense
|
725
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1,189
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2,093
|
3,282
|
||||||||||||||
Base management fee
|
1,091
|
675
|
3,229
|
1,816
|
||||||||||||||
Performance based incentive fee
|
561
|
—
|
2,701
|
—
|
||||||||||||||
Administrative fee
|
355
|
—
|
873
|
—
|
||||||||||||||
Professional fees
|
489
|
7
|
1,034
|
110
|
||||||||||||||
General and administrative
|
227
|
61
|
740
|
164
|
||||||||||||||
Total expenses
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3,448
|
1,932
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10,670
|
5,372
|
||||||||||||||
Net investment income
|
2,993
|
3,257
|
7,201
|
7,878
|
||||||||||||||
Credit for loan losses
|
—
|
320
|
—
|
739
|
||||||||||||||
Net realized and unrealized gain on investments
|
||||||||||||||||||
Net realized (loss) gain on investments
|
(17)
|
—
|
5,544
|
(2
|
)
|
|||||||||||||
Net change in unrealized (depreciation) appreciation on investments
|
(217)
|
1,711
|
(2,535
|
)
|
1,549
|
|||||||||||||
Net realized and unrealized (loss) gain on investments
|
(234)
|
1,711
|
3,009
|
1,547
|
||||||||||||||
Net increase in net assets resulting from operations
|
$
|
2,759
|
$
|
5,288
|
$
|
10,210
|
$
|
10,164
|
||||||||||
Net investment income per common share (2)
|
$
|
0.39
|
$
|
N/A
|
$
|
0. 95
|
$
|
N/A
|
||||||||||
Change in net assets per common share (2)
|
$
|
0.36
|
$
|
N/A
|
$
|
1.34
|
$
|
N/A
|
||||||||||
Weighted average shares outstanding (2)
|
7,617,972
|
N/A
|
7, 604,345
|
N/A
|
||||||||||||||
(1) The results of operations for the third quarter and nine months ended September 30, 2011 reflect Horizon’s qualification to be treated as a Business Development Company (BDC) under the 1940 Act immediately following the Company’s initial public offering (IPO), which was effective on October 28, 2010, whereas the operating results for the third quarter and nine months ended September 30, 2010 reflect the Company’s results prior to operating as a BDC under the 1940 Act. Accounting principles used in the preparation of these two periods are different, primarily as it relates to the carrying value of loan investments and classification of hedging activity. Therefore, the results of operations and financial position for the third quarter and nine months ended September 30, 2011, and third quarter and nine months ended September 30, 2010, are not directly comparable.
(2) For the third quarter and nine months ended September 30, 2010, the Company did not have common shares outstanding or an equivalent and, therefore, earnings per share and weighted average shares outstanding information for this period is not provided.
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Contacts:
Horizon Technology Finance Corporation
Christopher M. Mathieu
Chief Financial Officer
(860) 676-8653
chris@horizontechfinance.com
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Investor Relations and Media Contacts:
The IGB Group
Leon Berman / Michael Cimini
(212) 477-8438 / (212) 477-8261
lberman@igbir.com / mcimini@igbir.com
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