Crescent Capital BDC (CCAP) Financials

The recent financial data for Crescent Capital BDC (NASDAQ: CCAP) across the last several quarters and years reflect several key trends that retail investors should note. Here is an analysis highlighting the main positive, neutral, and negative aspects based on income statements, cash flow, and balance sheets from 2022 through the end of 2024.

• Despite a net loss reported in Q4 2024 income statement (-$16.9 million), the cash flow statements for the same period show positive consolidated net income of $9.99 million, indicating non-cash charges significantly affecting earnings but healthy cash generation.
• Consistent positive net cash from continuing operating activities in most quarters of 2023 and early 2024, including $46.9 million in Q3 2024 and $39.5 million in Q1 2024, underlines robust operating cash flows.
• The company regularly raises debt as a financing source, with incremental issuances of $60M-$110M in recent quarters helping maintain liquidity and funding.
• Dividends payments remain steady across quarters, demonstrating commitment to shareholder returns, with around $18-19 million paid out quarterly in 2024.
• Total assets have remained relatively stable around $1.6 billion from 2022 through 2024, reflecting a solid asset base.
• Net interest income / expense and interest income remain at zero in the latest filings, reflecting the company's specific business model (likely focusing on capital gains and non-interest income).
• Weighted average shares outstanding have stayed consistent at about 37 million shares, indicating no recent dilution or repurchase impact on share count.
• The income statement for Q4 2024 indicates a significant net realized and unrealized capital loss (-$6.4 million) negatively affecting total revenue and pre-tax income.
• Long-term debt remains high, exceeding $850 million at Q3 2024, which represents more than half of the company’s liabilities and may suggest leverage risk.
• Retained earnings are negative and have declined further from around -$69 million in early 2023 to approximately -$217 million by Q3 2024, signaling accumulated losses over time.

Summary:

Crescent Capital BDC shows strong operating cash flow generation and a steady asset base but faces challenges from volatility in capital gains and unrealized investment losses, as seen in recent quarters. The company carries substantial long-term debt and has accumulated retained earnings deficits, which represent risks to watch. However, stable dividend payouts and consistent financing activities suggest management’s confidence and efforts to support ongoing operations and investor returns. Investors should monitor future investment performance and leverage management closely for potential impacts on earnings and balance sheet strength.