Operating as a closed-end investment vehicle, Eagle Point Credit Company, Inc. aims to produce both substantial current income and capital growth. This ...
Eagle Point Credit Company Inc. (NYSE: ECCV) is a non-diversified, externally managed closed-end investment company registered under the Investment Company Act of 1940. Founded on March 24, 2014, and headquartered in Greenwich, Connecticut, the company aims to provide substantial current income and capital growth by investing primarily in the equity ...Eagle Point Credit Company Inc. (NYSE: ECCV) is a non-diversified, externally managed closed-end investment company registered under the Investment Company Act of 1940. Founded on March 24, 2014, and headquartered in Greenwich, Connecticut, the company aims to provide substantial current income and capital growth by investing primarily in the equity and junior debt segments of Collateralized Loan Obligations (CLOs). CLO equity tranches offer high yield potential but carry significant risk, as they are the first to absorb losses in the underlying loan portfolio. The company is managed by Eagle Point Credit Management LLC, a specialist investment manager founded by Thomas Majewski in partnership with Stone Point Capital, which oversees $14 billion in assets. The investment team, including Senior Principals and Portfolio Managers Daniel Ko and Daniel Spinner, brings extensive experience in structured credit, having been involved in over 100 CLO transactions. As of the latest data, the company has only three full-time employees, reflecting its external management structure and reliance on the manager's expertise. Financially, the company has a market capitalization of approximately $506 million and trades on the New York Stock Exchange under the symbol ECCV. It offers a high dividend yield, recently around 35%, and pays monthly distributions to shareholders. However, the company has reported negative net income margins in recent periods, consistent with the volatile nature of CLO equity investments. The balance sheet includes $527 million in total assets, with a debt-to-equity ratio of 0.42. The company's investment strategy generates income from the excess cash flows of CLO structures, and its performance is closely tied to credit markets and economic conditions. Overall, Eagle Point Credit Company provides investors with access to a niche, income-oriented asset class that is typically difficult to access directly.
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%
+1.6%
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 …