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Main Street Capital Corp (MAIN 0.23%)
Q2Â 2019 Earnings Call
Aug 9, 2019, 10:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Operator
Greetings, and welcome to the Main Street Capital Corporation Second Quarter 2019 Earnings Conference Call. [Operator Instructions]
It is now my pleasure to introduce your host, Zach Vaughan with Dennard Lascar, Investor Relations. Thank you, sir. You may begin.
Zach Vaughan -- Investor Relations
Thank you, operator, and good morning, everyone. Thank you for joining us for Main Street Capital Corporation's Second Quarter 2019 Earnings Conference Call. Main Street issued a press release yesterday afternoon that detailed the company's second quarter financial and operating results. This document is available on the Investor Relations section of the company's website at mainstcapital.com. We also advise you that this conference call is being broadcast live through the Internet and can be accessed on the company's home page. A telephonic and webcast replay of today's call will be available beginning an hour or so after the completion of the call. Information on how to access the replay features were included in yesterday's release. Please note that information reported on this call speaks only as of today, August 9, 2019, and therefore, you're advised that time-sensitive information may no longer be accurate at the time of replay listening or transcript reading.
Today's call will contain forward-looking statements. Many of these forward-looking statements can be identified by the use of words such as "anticipates, believes, expects, intends, will, should, may" or similar expressions. These statements are based on management's estimates, assumptions and projections as of the date of this call, and there are no guarantees of future performance. Actual results may differ materially from the results expressed or implied in these statements as a result of risks, uncertainties and other factors, including but not limited to, the factors set forth in the company's filings with the Securities and Exchange Commission, which can be found on the company's website or at sec.gov. Main Street assumes no obligation to update any of these statements unless required by law.
During today's call, management will discuss non-GAAP financial measures including distributable net investment income. Please refer to yesterday's press release for a reconciliation of these measures to the most directly comparable GAAP financial measures. Certain information discussed on this call, including information related to portfolio companies was derived from third-party sources and has not been independently verified.
And now I'll turn the call over to Main Street's CEO, Dwayne Hyzak. Dwayne?
Dwayne Hyzak -- Chief Executive Officer
Thanks, Zach. And thank you all for joining us today. Joining me for our call today with prepared comments are David Magdol, our President and Chief Investment Officer; and Brent Smith, our CFO. Also, joining us for the Q&A portion of our call are Vince Foster, our Executive Chairman; and Nick Meserve, our Managing Director and Head of our Middle Market Investment Group. On today's call, I will start by providing a recap of our overall performance in the second quarter, commenting on the performance of our investment portfolio, discussing our recent dividend announcement and a few other recent developments, and I will conclude by commenting on our investment activities and pipeline. Following my comments, David and Brent will provide additional comments on our financial results, our current liquidity position and certain key portfolio stats, after which we'll be happy to take your questions.
We were pleased with our operating results for the second quarter, a quarter during which the continued execution of our differentiated investment strategy and the leverage of our efficient low-cost operating structure facilitated continued favorable operating performance and financial results. As a result of our performance, we again generated distributable net investment income, or DNII per share, in excess of our regular monthly dividends, exceeding our regular monthly dividends by approximately 12%. We believe that the advantages of our differentiated investment strategy and efficient operating structure, combined with our conservative capital structure and significant liquidity position have us very well-positioned for continued future success.
Looking specifically at the performance of our investment portfolio in the second quarter, our lower middle market portfolio appreciated by over $11 million on a net basis with 21 of our investments appreciating and 15 depreciating. Our lower middle market companies collectively continued to exhibit very conservative credit profiles on a relative basis, which David will cover in his comments. Our middle markets and private loan portfolios collectively depreciated by approximately $12 million on a net basis, primarily due to the impact of depreciation from certain investments with specific credit issues that we have been working through in our middle market portfolio. Earlier this week, our Board declared our fourth quarter regular monthly dividends of $0.205 per share, payable on each of October, November and December. An amount that is unchanged from our monthly dividends for the third quarter and a 5.1% increase from the fourth quarter of prior year.
Consistent with our prior guidance and our previously announced plan for transitioning our semiannual supplemental dividends into our monthly dividends over several years, we currently expect to recommend that our Board declare a supplemental dividend payable in December of $0.24 per share, a reduction from our joint supplemental dividend rate of $0.25 per share. We continue to expect that this transition will take several years, and we will remain confident that by the end of the transition period, we will be successful with our long-term goal of delivering growth of our total annual dividends at a level consistent with the historical dividend growth we have delivered to our shareholders. We're pleased that during the second quarter, our asset management activities generated meaningful performance incentive fees for the first time, and we are excited about the potential benefit of these incentive fees in future quarters.
We're also pleased that we recently expanded our executive management team with the addition of Jesse Morris, as our newly hired Executive Vice President and Chief Operating Officer, and are excited about integrating Jesse into our team over the next few months. Now turning to our investment activities in the quarter and our current investment pipeline. We completed lower middle market investments of approximately $32 million in the quarter. And as of today, I would characterize our lower middle market investment pipeline as average. Our second quarter activity and our current pipeline as a result of our maintenance of a disciplined and selective approach to new investment opportunities, and we remain confident in our future ability to continue to originate new investments consistent with our historical investment profile.
In our comments last quarter, we noted that we were experiencing increased third-party interest in several of our existing lower middle market portfolio companies and this interest has resulted in 2 attractive lower middle market exits, one in the second quarter and one at the beginning of the third quarter. And we believe that these ongoing activities could result in additional attractive portfolio company exits over the next 2 quarters. We also continued our success in focusing our non-lower middle market investment portfolio growth on our private loan portfolio, with this portfolio growing by approximately $54 million on a net basis in the quarter, coupled with a decrease of approximately $41 million in our middle market portfolio. As of today, I would characterize our private loan investment pipeline as above average. And in closing, our Director and officer group has continued to be regular purchasers of our shares, investing approximately $1.5 million during the quarter and owning Main Street shares valued at over $144 million at quarter-end.
With that, I'd like to turn the call over to David.
David Magdol -- Presiden,Chief Investment Officer and Senior Managing Director
Thanks, Dwayne, and good morning, everyone. We're pleased to report another quarter during which we grew our total investment income and distributable net investing income, while continuing to generate distributable net investment income in excess of our monthly dividends. We believe that our results illustrate significant benefits of our unique investment strategy in the lower middle market. This strategy when combined with our efficient operating structure, our complementary first-lien debt investment strategies and our asset management activities provided value propositions that positively differentiates Main Street among our BDC peers.
This has been demonstrated through our consistent ability to generate premium total returns for our shareholders through the growth in our dividends per share, our increased net asset value per share and our stock price appreciation. Primary driver of our long-term success continues to be our focus on the underserved lower middle market. We see significant benefits from investing in both the debt and the equity securities in this segment of our business. Our equity investments closely align our interests with our portfolio company management teams and allow us to share in the equity upside as our companies perform while our first-lien debt investments provide an attractive yield profile and significant downside protection.
By size and scope, our lower middle market investments are primary driver between both our historical NAV per share growth and our significant pre-tax net unrealized appreciation at June 30, contributing approximately $217 million or $3.46 per share. Our lower middle market investments also support growth in our total dividends paid to our shareholders through the dividend income we receive and the periodic realized gains upon exit from these equity investments. In addition, the unrealized appreciation and realized gains from these equity investments provide an offset against the inevitable credit losses that will be experienced when making investments in noninvestment-grade debt securities. Turning back to our most recent operating results, the contributions from our lower middle market portfolio continued to be well diversified with 40 of our 68 lower middle market companies with equity investments having unrealized appreciation at quarter-end. 57% of our companies that are passed through entities for tax purposes contributed to our dividend income in the last 12 months.
And our total dividend income received from our lower middle market investments was approximately $29 million during this period of time, representing a 22% compounded annual growth since the year ended 2017. We believe that diversity of our lower middle market portfolio is critical when analyzing the benefits from this strategy, and we believe that this diversity provides visibility to the recurring nature of these benefits in the future. As a result, at June 30, we had investments in 182 portfolio companies spanning across more than 50 industries. Our largest portfolio company represented approximately 2.6% of our total investment portfolio fair value at quarter-end and 3.7% of our total investment income for the last 12 months. The majority of our portfolio investments represented less than 1% of our assets and of our income. Additional details on our investment portfolio at quarter-end are included in the press release that we issued yesterday, but I'll note a few highlights.
Our lower middle market portfolio included investments in 69 companies, representing approximately $1.2 billion of fair value, which is over 20% above our cost basis. At the lower middle market portfolio level, the portfolios' median net senior debt-to-EBITDA ratio was a conservative 3.3:1 or 3.7:1, including portfolio company debt, which is junior in priority to our debt position, and the total EBITDA to senior interest ratio was 2.7:1. In our middle market portfolio, we had investments in 51 companies representing approximately $520 million of fair value and our private loan portfolio we had investments in 62 companies, representing approximately $595 million of fair value. The total investment portfolio at fair value at quarter-end was approximately 109% of the related cost basis, and we had 7 investments on nonaccrual status, which comprise approximately 1.5% of the total investment portfolio at fair value and 4.4% at cost. In summary, Main Street's overall investment portfolio continues to perform at a high level and continues to deliver on our long-term goals.
With that, I'll turn the call over to Brent to cover our financial results, capital structure and liquidity position.
Brent Smith -- Chief Financial Officer and Treasurer
Thanks, David. We're pleased to report that our total investment income increased over the same period in 2018 to a total of $61.3 million, primarily driven by an increase in interest income and partially offset by a decrease in dividend and fee income. The change in total investment income includes a decrease from prior year of $3.5 million and elevated dividend income activity that is considered to be less consistent on a recurring basis or nonrecurring, and a decrease of $0.4 million related to lower levels of accelerated income for certain debt investments. Our operating expenses, excluding noncash share-based compensation expense, increased by $1.4 million over the same period of the prior year to a total of $19.3 million, primarily related to an increase in interest expense related to our $250 million investment-grade debt issuance in April.
The ratio of our total operating expenses, excluding interest expense, as a percentage of our average total assets, was 1.4% for the second quarter on an annualized basis and 1.3% for the trailing 12 months. The combination of our unique investment strategy and leverage of our efficient operating structure resulted in distributable net investment income of $42 million or $0.67 per share, which exceeded our monthly dividends paid for the quarter by approximately 12%. The activities of our external investment manager benefited our net investment income by approximately $3.6 million through the allocation of $1.7 million of operating expenses for services we provided to it and $1.9 million of dividend income. As Dwayne discussed, the increase in dividend income is primarily due to incentive fees earned. We recorded a net realized loss of $2.6 million during the quarter, primarily relating to the realized loss from the exit of a middle market investment, partially offset by a realized gain relating to the exit of a lower middle market investment. And as Dwayne discussed, we recorded net unrealized appreciation on the investment portfolio of $3.2 million, primarily resulting from a $11.5 million of net appreciation on our lower middle market portfolio and $3.8 million of appreciation relating to our external investment manager, partially offset by $11.4 million of net depreciation on our middle market portfolio and $0.8 million of net depreciation on our private loan portfolio.
Our operating results for the second quarter resulted in a net increase in net assets of $38.3 million or $0.61 per share. Our overall capitalization of liquidity remained strong as our total liquidity was in excess of $600 million at the end of the second quarter. As we previously discussed on our first quarter earnings conference call, our liquidity is elevated due to $250 million of investment-grade notes we should in April, as we use the net proceeds to repay a portion of the outstanding balance under our revolving credit facility, and we then expect to reborrow under the facility to repay the $175 million investment-grade notes that mature in December.
Due to our elevated liquidity, we were less active under our ATM equity issuance program during the second quarter, raising approximately $9 million in net proceeds with an average sale price of just under $39 per share. As we look forward to the third quarter of 2019, we expect that we would generate distributable net investment income of $0.63 to $0.65 per share during the quarter. This estimate is $0.015 to $0.035 per share or approximately 2% to 6% above our previously announced monthly dividends for the third quarter of $0.615 per share.
With that, I'll now turn the call back over to the operator, so we can take any questions.
Questions and Answers:
Operator
[Operator Instructions] Our first question comes from the line of Robert Dodd with Raymond James. Please proceed with your question.
Robert Dodd -- Raymond James -- Analyst
Hi guys. Congrats on the quarter. If I can ask you some kind of semi-macro questions, since you got a large diversified portfolio. If we look at the lower middle market -- if we can say, lower middle market for middle market and private, on the lower middle market side, I mean 21 appreciated, 15 depreciated. That's fairly even, i.e. what are the trends you've seen? Obviously, the ups were bigger than the downs, but what are the trends you're seeing in kind of revenue growth or EBITDA growth from those businesses? Is there any -- are there any determinable trends today versus, say, six months ago or anything like that?
Dwayne Hyzak -- Chief Executive Officer
Thanks, Robert. I would say that there is not a big change today compared to what it would have been in place six months ago. I think we continue to see bifurcation of companies that are performing really well and others that are either not performing as well, and I would say, when we see companies not performing as well, it is more of a company-specific issue than it is an overall broader industry issue. I think we've always pointed to these companies that we've in the lower middle market being mature companies that exhibit kind of lower growth. So I would say that the path that we see is consistent with what we see in the past, but nothing that's a material change or trend that we're seeing versus six months ago, and I'll let David add anything else that he'd have on his side.
David Magdol -- Presiden,Chief Investment Officer and Senior Managing Director
No. I think versus six months ago, I would agree with Dwayne that only trends we've seen in some of the companies, like restaurants and such have struggled and retail and other industries have picked up.
Robert Dodd -- Raymond James -- Analyst
Okay. Got it. And on the middle market side, Dwayne, you said depreciation with some specific credit issues. I mean you always question, is there any clustering at all in terms of the credit issues you're seeing in industries or just all over the place?
Dwayne Hyzak -- Chief Executive Officer
Yes, I would say consistent with what David just said, there are some retail restaurant-type situations where they face the headwinds that David was referring to, but outside of that, I would say that the issues have been more company-specific and spread across multiple industries as opposed to being one specific thing.
Robert Dodd -- Raymond James -- Analyst
I appreciate that color. And one more, if I can. On the asset management business, I mean, you talked about this last quarter in terms of expectations, but meaningful performance incentive fees. I mean, any color you can give us on -- I mean, was it the start of a partial incentive fee or was this quarter kind of full incentive fees? And we should expect it to remain steady-ish at that level or is that going to continue ramping up?
Dwayne Hyzak -- Chief Executive Officer
I would say that the incentive fees are always going to be very hard to predict because it's going to be related to specific performance in that quarter. I think for the second quarter, which is the first quarter that we earned and will be paid a meaningful incentive fee, we have had periods in 2018 where we also had quarters that would have generated enough earnings that would have justified the incentive fee. Where, just in the past, you had agreed with our -- the manager of that fund to waive those fees, whereas in the second quarter of this year, we are no longer waiving that fee, and we earned and recognized a significant incentive fee in the second quarter.
Robert Dodd -- Raymond James -- Analyst
Okay. I appreciate it. Thank you.
Operator
Thank you. Our next question comes from the line of Tim Hayes from B. Riley FBR. Please proceed with your question.
Tim Hayes -- B Riley FBR -- Analyst
Hey good morning guys. Just wanted to follow up on Robert's first question there. We continue to see unrealized depreciation and stable EBITDAs in the lower middle market portfolio, but unrealized depreciation and EBITDAs trailing downward in the broader middle market portfolio. Does this trend in the middle market portfolio primarily reflect underlying credit quality? I just want to make sure that there is -- when it relates to the depreciation, there were no technical factors involved or quotes or anything like that? And then how would you characterize the health of the borrowers in the lower middle market portfolio versus the middle market portfolio?
Dwayne Hyzak -- Chief Executive Officer
Sure. So I'll give some initial comments, and I'll let Nick Meserve -- he will add some additional comments on the middle market, but as I think we -- as we kind of address on the earlier comment, I think, when we look at the middle market depreciation we have added, it's really related to several specific names. I would say, if you look back over the last couple of quarters, going back to the fourth quarter of 2018, you did have some technical movement in the month of December that caused some movement from a fair value standpoint, but I would say that the issues we have had in Q1 and Q2 of this year were more specific credit issues in several specific names that we've been working through really in the first, second, and we'll continue to do in the third quarter.
So I would say it continues to be specific issues with individual companies as opposed to something that is more broad-based. I think we've covered in the lower middle market that we continue to be very pleased with the overall quality of the portfolio. The companies are performing well. The credit profiles are attractive, and we can see the benefits of the cash flow generation and the positive result from those company on our dividend income. So we continue to be very pleased with the overall performance of that portfolio. I'll let Nick add anything else he would add on the middle market side.
David Magdol -- Presiden,Chief Investment Officer and Senior Managing Director
I think Dwayne covered it fairly well there. And I would say it is a few specific instances and issuers that have really been the driver of that movement from fourth quarter to today. The good news is we mainly restructured most of those benefits at this point or will through the third quarter. And so if we look at kind of our names we're watching going forward, I think we will see more upside than downside in the names that we might have some issues in.
Tim Hayes -- B Riley FBR -- Analyst
Okay. That's helpful. Appreciate the comments there. And one of the credits I think that was put on nonaccrual last quarter was SiTV, and I think you talked about potentially restructuring that investment and looking to exit that soon. Can we get an update there? And maybe what the mark was since we don't have the SOI in front of us? And then I think another investment was that it's nonaccrual this quarter. So if you could just give some color on which one that was in and what happened there?
Dwayne Hyzak -- Chief Executive Officer
Yes. So SiTV, we restructured that during the quarter, and basically, we took a realized loss in our position. We restructured it around $0.25, I believe, which was -- where it is today. And going forward, that business is now run by the debt holders there, with a small tip toward existing equity. And the plan going forward is to, more than likely, monetize that asset through either an option or a sale process.
David Magdol -- Presiden,Chief Investment Officer and Senior Managing Director
And just a follow-up on the overall nonaccrual status at the end of the second quarter. So SiTV, as Nick just explained, came off of nonaccrual by June 30, and we added 2 new investments to nonaccrual, one being Guerdon and the other being Joerns. Guerdon is a lower middle market portfolio company and Joerns is a middle market portfolio company.
Tim Hayes -- B Riley FBR -- Analyst
And any comments around those 2 credits that are nonaccrual? And what led you guys putting them on or placing them on nonaccrual?
Dwayne Hyzak -- Chief Executive Officer
So with Guerdon we had a specific issue related to a customer that led to the company going on nonaccrual. We're working with the management team and other investors on trying to put the company in a better position for success, and those discussions are ongoing.
Brent Smith -- Chief Financial Officer and Treasurer
Joerns is, basically, liquidity squeeze based on tradition of business from a sale model more than rental business. And from a capital structure perspective, we need to equitize the debt. That company entered bankruptcy in the second quarter, and we expect to exit here in the next 15 to 30 days with a restructured balance sheet.
Tim Hayes -- B Riley FBR -- Analyst
Got it. Okay. Appreciate the comments and for taking my questions this morning.
Operator
Thank you. [Operator Instructions] Our next question comes from the line of Michael Ramirez of SunTrust. Please proceed with your question.
Michael Ramirez -- SunTrust Banks -- Senior Research Associate
Thanks. Good morning guys. Thanks for taking our questions.
Dwayne Hyzak -- Chief Executive Officer
Good morning.
Michael Ramirez -- SunTrust Banks -- Senior Research Associate
I guess, first on the asset management business. It seems to have -- recently maybe you passed on a few deals, but just wondering have you seen anything in the market that seems attracted to you? And additionally could you help us better understand your long-term strategy sort of thinking on M&A for this business? And frankly, may be possibly -- maybe incremental impact to your net investment income going forward?
Dwayne Hyzak -- Chief Executive Officer
So I would say it's hard to predict the last point because it would all be dependent upon what the opportunity was, but we're interested, as you heard us say in the past, in growing that business, and we are looking at opportunities to grow it both from an M&A standpoint but also we're looking to avenues to grow it from an organic standpoint. Where we sit today, I wouldn't say that there is anything that is imminent, particularly on the M&A side. We remain active when we see the opportunities as they come about in the industry, but there's nothing that's in place right now that we would say is actionable in the near term. But we'll continue to be active and look at opportunities as they come about because as we said before we do want to grow that business. We think it's something that is very significant for us from a benefit to the company, to the shareholders and want to find ways to continue to grow that business longer term.
Michael Ramirez -- SunTrust Banks -- Senior Research Associate
Okay. Great. Thanks for that. Maybe one more on your lower middle market strategy. May be how that sort of has changed in this environment? So recently, I guess, most BDC have been saying that we're getting close to end of cycle? And I know that's kind of repetitive. We've been hearing this for the last 4 or 6 quarters. But now coupled with like a lower interest rate environment and with a strong economy, are you seeing new investment lower middle market companies sort of asking to take on a greater portion of debt relative to equity? Or has your strategy, frankly, just remain the same regarding your initial equity position?
Dwayne Hyzak -- Chief Executive Officer
Yes. I wouldn't say that there is a significant change there. We continue to want to be in position to provide very, very customized solutions to each opportunity. So the proposals in the structure that we pursue in the lower middle market are going to be very specific to the opportunities that we see. And I would say that's always been the case and continues to be the case today. When we look at our most recent investments and the new opportunities we see in the pipeline, we continue to see opportunities that are consistent with the historical structure and profile that we pursued. We just need to find the right opportunities that you find our solution attractive and that we can end up getting into the execution phase on. And I will let David add anything else that he'd want to cover there.
David Magdol -- Presiden,Chief Investment Officer and Senior Managing Director
Nothing else to add.
Michael Ramirez -- SunTrust Banks -- Senior Research Associate
Okay. Great. Thank you guys.
Operator
Thank you. Our next question comes from the line of Bryce Rowe with Robert W. Baird. Please proceed with your question.
Bryce Rowe -- Robert W. Baird
Good morning. I'm actually now affiliated with National Security. Dwayne and David, I was hoping maybe you could speak to the recent exits in the lower middle market portfolio and where the exit values compare to marks may be 2 or 4 quarters ago. And then if you could also comment on third-party interests in some of your existing lower middle market companies? And how that, I guess, interest is stacking up relative to marks you would have seen 2 or 4 quarters ago?
Brent Smith -- Chief Financial Officer and Treasurer
Thanks, Bryce. So the exits we had in the -- that we mentioned in our comments, there were 2, one was in the second quarter that was a portfolio company by the name of Earth Solutions. It is a company that we have been in for a long time and have actually kind of had partial exits on a number of prior occasions. So this was our third exit transaction and consistent with what you heard us say in the past, the fair value marks we had on that investment prior to them going through that process would have been conservative in comparison to the actual realized results. So the transaction we had was not material transaction for us, which is why you would not have seen us put out a press release because our residual interest in the company was fairly small, but it was a gain of $2.3 million in the second quarter.
And if you compare that to our mark from 2 quarters prior to that, it would have been about $1 million difference between the actual exit and the fair value. The second exit we had, which was in the beginning of the third quarter, was Lamb's Tire and Automotive, and it was also a company we have been in for a long time. It was $6 million exit. That exit activity had been ongoing for longer period of time. So I would say, you wouldn't have as large of a delta between the exit value and the fair value, but it was also a transaction that we found very attractive from a overall valuation standpoint but also just from the standpoint of comparison of the exit value versus our fair value. And I'll let David give some color on the other activities we're seeing kind of on an ongoing basis from an exit standpoint.
David Magdol -- Presiden,Chief Investment Officer and Senior Managing Director
So on the income and call question, Bryce, we continue to feel a lot of incoming calls from strategic acquirers on our portfolio of companies. I'd characterize the activity as consistent with recent past, but more than historical in a market where we got a lot of credit availability and such. But certainly, where we're benefiting from a native basis from the market that we're currently in.
Bryce Rowe -- Robert W. Baird
And I assume just kind of consistent with your previous strategy that the preference would be to hold these lower middle market companies that are performing well for as long as you can, but clearly you've got calls coming in and decisions being made from the management teams and with you all to monetize where it makes sense.
Brent Smith -- Chief Financial Officer and Treasurer
One specific example, we had a call come in about 3 weeks ago on a company that we've not -- had no intentions of selling. We entered in those discussions with management, and when we can see an evaluation that we think is just far exceeds what we think we could get if we were to stand the investment for a significant period of time, we have to have real thoughtful discussion about whether we should exist or not. But certainly, our belief and the reason we get to these investments is our long-term hold is unmatched in the market and our inability to get benefit from the dividend income and the interest income over an extended period of time is our preference, but we have to look to our partners and take these incoming calls very seriously.
Excellent. Thank you all for the comments appreciate it.
Operator
Thank you. We have no further questions at this time. I would now like to turn the floor back over to management for closing comments.
Dwayne Hyzak -- Chief Executive Officer
Thank you to everyone again for joining us this quarter, and we will look forward to talking to you again in a few months.
Operator
[Operator Closing Remarks]
Duration: 34 minutes
Call participants:
Zach Vaughan -- Investor Relations
Dwayne Hyzak -- Chief Executive Officer
David Magdol -- Presiden,Chief Investment Officer and Senior Managing Director
Brent Smith -- Chief Financial Officer and Treasurer
Robert Dodd -- Raymond James -- Analyst
Tim Hayes -- B Riley FBR -- Analyst
Michael Ramirez -- SunTrust Banks -- Senior Research Associate
Bryce Rowe -- Robert W. Baird
