Eagle Point Credit Company Inc. is a closed-end investment fund established and overseen by Eagle Point Credit Management LLC. The company's investment ...
Eagle Point Credit Company Inc. is a closed-end management investment company formed on March 24, 2014, and headquartered at 600 Steamboat Road in Greenwich, Connecticut. The company is externally managed by Eagle Point Credit Management LLC, an investment manager founded by Thomas Philip Majewski in partnership with Stone Point Capital. ...Eagle Point Credit Company Inc. is a closed-end management investment company formed on March 24, 2014, and headquartered at 600 Steamboat Road in Greenwich, Connecticut. The company is externally managed by Eagle Point Credit Management LLC, an investment manager founded by Thomas Philip Majewski in partnership with Stone Point Capital. Majewski serves as the company’s chief executive and is the founder and managing partner of the investment manager. He has extensive experience in structured credit and collateralized loan obligation transactions.
The company’s primary investment objective is to generate high current income, with a secondary objective of achieving capital appreciation. Its portfolio is concentrated in the fixed-income and structured-credit markets, particularly the equity and junior debt tranches of collateralized loan obligations, commonly known as CLOs. These CLOs are generally backed by diversified pools of senior secured corporate loans, many of which carry below-investment-grade ratings. CLO equity can provide attractive income potential but is exposed to credit losses, loan defaults, refinancing conditions, interest-rate movements, portfolio deterioration, and changes in CLO liabilities.
Unlike a conventional operating company, Eagle Point Credit does not manufacture products, maintain inventory, or sell physical goods. Consequently, traditional cost-of-goods-sold and bill-of-materials analysis is not applicable. Its principal economic inputs are investment capital, financing, portfolio-management expertise, research, legal and compliance infrastructure, and operating expenses. Revenue is primarily derived from interest income, distributions from CLO investments, realized gains or losses, and changes in the fair value of portfolio holdings. The company’s expenses include management fees, incentive fees where applicable, interest expense, professional fees, administrative costs, and other expenses associated with operating as a regulated investment company.
The supplied market data identifies the company as part of the Financial Services sector and Asset Management industry. It reports a market capitalization of approximately $510.5 million, enterprise value of approximately $828.6 million, and a trailing dividend yield of roughly 35.1 percent at the indicated data point. Such a high distribution yield should be interpreted carefully because closed-end funds can experience variable income, portfolio valuation changes, leverage effects, and distributions that may not always represent recurring earnings. The company’s common stock is publicly traded on the New York Stock Exchange under the symbol ECC, while the requested ECCC symbol should be treated as the specified security or issuer reference rather than automatically assumed to be the common-stock ticker. Employee information was not disclosed in the supplied sources; because the investment manager provides operational functions, the issuer itself may have few or no directly reported full-time employees.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$116.1M
+0.1%
-298.9%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-134.4M
-267.4%
+147.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+59.1%
-29.8%
+60.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-75.3%
-202.1%
+69.9%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-115.8%
-267.2%
+76.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-21.4M
-120.7%
+19.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-18.5%
-120.7%
-160.3%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
36.8%
+26.7%
-22.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.38x
+7.5%
—
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day. You are current holding for the Eagle Point Credit Company call. We will be underway in approximately 2 minutes, and we thank you for your patience. And please continue to stand by. Greetings, and welcome to the Eagle Point Credit Company Second Quarter 26 Financial Results Call. At this time, participants are in a listen-only mode. A Q&A session will follow the formal presentation. If anyone should require operator assistance, please press *. As a reminder, this is now my pleasure to introduce Darren Daugherty with Prosek Partners. Please go ahead, sir.
Darren Daugherty: Thank you, operator, and good morning. Welcome to Eagle Point Credit Company's earnings conference call for the second quarter of 26. Speaking on the call today are Thomas Philip Majewski, Chief Executive Officer and Ken Inorio, Chief Financial Officer and Chief Operating Officer. Before we begin, I would like to remind everyone that the matters discussed on this call include forward-looking statements or project financial information that involves risks and uncertainties that may cause the company's actual results to differ materially from such projections. For further information on factors that could impact the company and the statements and projections contained herein, please refer to the company's filings with the Securities and Exchange Commission. Each forward-looking statement or projection of information made during this call is based on the information available to us as of the date of this call. We disclaim any obligation to update our forward-looking statements unless required by law. Earlier today, we filed our second quarter 20 financial statements and investor presentation with the Securities and Exchange Commission, These are also available in the Investor Relations section of the company's website, eaglepointcreditcompany.com. A replay of this call will also be made available later today. I will now turn the call over to Thomas Philip Majewski, Chief Executive Officer of Eagle Point Credit Company.
Thomas Philip Majewski: Thanks, Darren, and good morning, everyone. We appreciate your joining the Eagle Point earnings call this morning. I will start by providing some perspectives on the recent quarter. Let me begin with the headline results. Our net asset value for the quarter ended at $4.51 per share, and that is an increase of 8% from $4.17 at March 31. We generated a GAAP return on common equity of 12.7% for the second quarter. And during the quarter, we paid an aggregate of $0.18 per share in cash distributions to our common shareholders. The recovery at NAV was driven by a meaningful rebound in loan prices and CLO equity valuations following the volatility we experienced in the first quarter. Uncertainty surrounding the potential impact of artificial intelligence on software borrowers together with the geopolitical developments, had weighed on leveraged loan prices and CLO equity valuations earlier in the year. As market sentiment …
