Reports Strong Results with Net Investment Income of $0.35 Per Share, Compared to $0.22 Per Share in the Previous Quarter; Net Asset Value Increased to $33.71 Per Share from $33.34 Per Share in the Previous Quarter Declared a Distribution of $0.33 Per Share for the Second Quarter of 2024, an Increase of 3% Compared to the First Quarter of 2024; Fifth Consecutive Quarterly Distribution Increase Continued Repurchasing Shares Under its Share Repurchase Program NEW YORK, May 08, 2024 (GLOBE NEWSWIRE) -- Logan Ridge Finance Corporation ("Logan Ridge", "Logan", "LRFC", "Company", "we", "us" or "our") (NASDAQ:LRFC) announced today its financial results for the first quarter ended March 31, 2024. First Quarter 2024 Highlights Net Investment Income ("NII") increased to $0.9 million or $0.35 per share, as of March 31, 2024, from $0.6 million or $0.22 per share as of December 31, 2023. Net asset value increased to $33.71 per share as of March 31, 2024, from $33.34 per share as of December 31, 2023. Made approximately $9.8 million of investments and had approximately $0.9 million in repayments and sales of investments, resulting in net deployment of approximately $8.9 million during the quarter ended March 31, 2024. Repurchased 20,867 of its outstanding shares of common stock during the quarter ended March 31, 2024, for an aggregate cost of approximately $0.5 million under the share repurchase program which resulted in $0.08 per share of NAV accretion. Subsequent Events On May 7, 2024, the Company's Board of Directors approved a second quarter distribution of $0.33 per share payable on May 31, 2024, to stockholders of record as of May 21, 2024. This represents an increase of 3% as compared to $0.32 per share distributed for the first quarter of 2024. Management CommentaryTed Goldthorpe, Chief Executive Officer and President of LRFC, said, "During the first quarter of 2024, we continued to build upon the record financial results we generated in 2023. The first quarter results are highlighted by quarter-over-quarter increases in net investment income and net asset value of 63% and 1%, respectively. Following the strong earnings we saw in 2023, Logan Ridge is off to solid start in 2024 ending the first quarter with net deployment of $8.9 million and a robust pipeline. Further, the strength of the Company's financial position has allowed the Board of Directors to approve a dividend of $0.33 per share for the second quarter of 2024, which represents a 3% increase compared to the $0.32 per share distribution declared for the first quarter of 2024. Looking forward to the rest of 2024, we remain focused on increasing shareholder returns by leveraging the Company's strong balance sheet, and the continued diligent deployment of capital by taking advantage of new attractive investment opportunities that we see throughout the market." Selected Financial Information Total investment income for the quarter ended March 31, 2024, decreased by $0.3 million, to $5.0 million, compared to $5.3 million for the first quarter of 2023. Total operating expenses for the quarter ended March 31, 2024, decreased by $0.1 million, to $4.1 million, compared to $4.2 million for the first quarter of 2023. Net investment income for the quarter ended March 31, 2024, was $0.9 million, or $0.35 per share, compared to $1.1 million, or $0.40 per share, for the first quarter of 2023. Net asset value as of March 31, 2024, was $90.2 million, or $33.71 per share, compared to $89.2 million, or $33.34 per share, as of December 31, 2023. Cash and cash equivalents as of March 31, 2024, were $8.3 million compared to $3.9 million as of December 31, 2023. The investment portfolio as of March 31, 2024, consisted of investments in 62 portfolio companies with a fair value of approximately $200.1 million. This compares to 60 portfolio companies with a fair value of approximately $189.7 million as of December 31, 2023. Deployment remained strong. During the first quarter, the Company made approximately $9.8 million in investments and $0.9 million in repayments and sales of investments, resulting in net deployment of approximately $8.9 million for the quarter. The debt investment portfolio as of March 31, 2024, represented 80.8% of the fair value of the total portfolio, with a weighted average annualized yield of approximately 11.4% (excluding income from non-accruals and collateralized loan obligations), compared to a debt investment portfolio of approximately 82.0% with a weighted average annualized yield of approximately 11.1% (excluding income from non-accruals and collateralized loan obligations) as of December 31, 2023. As of March 31, 2024, 11.5% of the fair value of the debt investment portfolio was bearing a fixed rate of interest, compared to 13.6% of the fair value of the debt investment portfolio as of December 31, 2023. Non-Accruals: As of March 31, 2024, the Company had debt investments in three portfolio companies on non-accrual status with an amortized cost and fair value of $17.2 million and $10.6 million, respectively, representing 8.3% and 5.3% of the investment portfolio's amortized cost and fair value, respectively. This compares to debt investments in three portfolio companies on non-accrual status with an aggregate amortized cost and fair value of $17.2 million and $12.8 million, respectively, representing 8.7% and 6.9% of the investment portfolio's amortized cost and fair value, respectively, at December 31, 2023. Asset coverage ratio as of December 31, 2023 was 176%. Results of OperationsOur operating results for the quarters ended March 31, 2024 and March 31, 2023 were as follows (dollars in thousands):     For the Three Months Ended March 31,       2024     2023   Total investment income   $ 5,003     $ 5,256   Total expenses     4,056       4,183   Net investment income     947       1,073   Net realized gain (loss) on investments     287       (1,506 ) Net change in unrealized appreciation (depreciation) on investments     675       (217 ) Net realized loss on extinguishment of debt     (58 )     —   Net increase (decrease) in net assets resulting from operations   $ 1,851     $ (650 ) Investment income The composition of our investment income for the quarters ended March 31, 2024 and March 31, 2023 was as follows (dollars in thousands):     For the Three Months Ended March 31,       2024     2023   Interest income   $ 4,633     $ 4,768   Payment-in-kind interest     353       464   Dividend income     17       14   Other income     —       10   Total investment income   $ 5,003     $ 5,256   Fair Value of InvestmentsThe composition of our investments as of March 31, 2024, and December 31, 2023 at amortized cost and the fair value of investments was as follows (dollars in thousands): March 31, 2024   Investments atAmortized Cost     Amortized CostPercentage ofTotal Portfolio     Investments atFair Value     Fair ValuePercentage ofTotal Portfolio   First Lien Debt   $ 137,088       66.5 %   $ 130,377       65.2 % Second Lien Debt     9,155       4.4 %     8,308       4.2 % Subordinated Debt     26,573       12.9 %     22,910       11.4 % Collateralized Loan Obligations     1,701       0.8 %     1,648       0.8 % Joint Venture     386       0.2 %     396       0.2 % Equity     31,404       15.2 %     36,483       18.2 % Total   $ 206,307       100.0 %   $ 200,122       100.0 % December 31, 2023   Investments atAmortized Cost