Main Street Capital Fixed Income Presentation Deck
Non-GAAP Information
Distributable net investment income is net investment income as
determined in accordance with U.S. Generally Accepted Accounting Principles,
or U.S. GAAP, excluding the impacts of non-cash compensation expenses (as
defined below). MAIN believes presenting distributable net investment income
and the related per share amounts is useful and appropriate supplemental
disclosure for analyzing our financial performance since non-cash
compensation expenses do not result in a net cash impact to Main Street upon
settlement. However, distributable net investment income is a non-U.S. GAAP
measure and should not be considered as a replacement for net investment
income or other earnings measures presented in accordance with U.S. GAAP
and should be reviewed only in connection with such U.S. GAAP measures in
analyzing MAIN's financial performance.
Non-cash compensation expenses consist of (i) share-based compensation
and (ii) deferred compensation expense or benefit, both of which are non-cash
in nature. Share-based compensation does not require settlement in cash.
Deferred compensation expense or benefit does not result in a net cash impact
to Main Street upon settlement. The appreciation (depreciation) in the fair
value of deferred compensation plan assets is reflected in Main Street's
Consolidated Statements of Operations as unrealized appreciation
(depreciation) and an increase (decrease) in compensation expenses,
respectively. Main Street believes presenting non-cash compensation
expenses is useful and appropriate supplemental disclosure for analyzing its
financial performance since non-cash compensation expenses do not result in
a net cash impact to Main Street upon settlement. However, non-cash
compensation expenses are non-U.S. GAAP measures and should not be
considered as a replacement for compensation expenses, total expenses or
other earnings measures presented in accordance with U.S. GAAP and should
be reviewed only in connection with such U.S. GAAP measures in analyzing
Main Street's financial performance.
Main Street Capital Corporation
MAIN ST
CAPITAL CORPORATION
Net Debt to NAV Ratio is calculated as the Debt to NAV Ratio as
determined in accordance with U.S. GAAP, except that total debt is reduced
by cash and cash equivalents. The Non-SBIC Debt to NAV Ratio is
calculated in the same manner as the Debt to NAV Ratio, except that
outstanding SBIC debentures are excluded from the debt pursuant to an
exemptive order MAIN received from the Securities and Exchange
Commission. MAIN believes presenting the Net Debt to NAV Ratio is useful
and appropriate supplemental disclosure for analyzing its financial position
and leverage. MAIN believes presenting the Non-SBIC Debt to NAV Ratio is
useful and appropriate supplemental disclosure because Main Street, a
business development company, is permitted to exclude such borrowings
from its regulatory asset coverage ratio calculation pursuant to an exemptive
order received from the Securities and Exchange Commission. However, the
Net Debt to NAV Ratio and the Non-SBIC Debt to NAV Ratio are non-U.S.
GAAP measures and should not be considered as replacements for the
Debt to NAV Ratio and other financial measures presented in accordance
with U.S. GAAP. Instead, the Net Debt to NAV Ratio and the Non-SBIC
Debt to NAV Ratio should be reviewed only in connection with such U.S.
GAAP measures in analyzing MAIN's financial position.
NYSE: MAIN
mainstcapital.com
Page 37View entire presentation