Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) announced significant corporate changes, including the dismissal of its previous independent registered public accounting firm, RSM US LLP, and the appointment of KPMG LLP as its new auditor. The transition follows the completion of RSM's audit of the company's financial statements for the year ended June 30, 2024.
The company's past financial statements, audited by RSM for the fiscal years ending June 30, 2023, and June 30, 2022, were reported without any adverse opinions or modifications. Additionally, throughout the fiscal years ending June 30, 2024, and 2023, and up to the filing date of September 24, 2024, there were no disagreements or "reportable events" between Investcorp and RSM that would have impacted the audit reports.
Furthermore, the Board of Directors, with the Audit Committee's recommendation, has approved a change in the company's fiscal year-end from June 30 to December 31. This adjustment aligns with the company's bylaws, which grant the Board the authority to change the fiscal year. Investcorp will file a transition report for the period from July 1, 2024, to December 31, 2024.
This series of corporate changes is detailed in a Form 8-K filed with the U.S. Securities and Exchange Commission on September 24, 2024. The filing includes a letter from RSM, dated the same day, acknowledging the factual accuracy of the company's statements regarding their professional relationship. The switch to KPMG as the new auditor is effective immediately following RSM's dismissal.
In other recent news, Investcorp Credit Management BDC, Inc. has seen significant changes in its executive team, with CFO Peter Sattelmair stepping down and Walter Tsin stepping up to fill the role. This development was not due to any disagreements or accounting issues within the company. Tsin, an experienced executive, joins the team as the new CFO, bringing with him a wealth of experience from his previous roles at Investcorp Credit Management, Seer Capital Management, and Rothstein Kass and Company.
In addition to the executive reshuffling, the company announced a 32% increase in net investment income to $2.1 million in Q3 FY2024, alongside the appointment of Suhail Shaikh as the new CEO. The company also reported a decrease in nonaccrual investments, and a solid credit quality within its portfolio, demonstrated by a weighted average loan-to-value ratio of 52%.
InvestingPro Insights
Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) has made headlines with its recent corporate reshuffling and auditor change. Investors keeping a close eye on ICMB will find the following InvestingPro insights particularly valuable. With a market capitalization of $45.58 million, the company has shown a revenue decline of 2.11% over the last twelve months as of Q3 2024. Despite this, ICMB has maintained a substantial dividend yield of 24.76%, which is a significant factor for income-focused investors. This commitment to shareholder returns is further evidenced by the company's history of maintaining dividend payments for 11 consecutive years.
Two key InvestingPro Tips for ICMB include its notable stock price volatility and the fact that its valuation implies a poor free cash flow yield. These factors could be crucial for investors considering the risk and return profile of the company. Additionally, while ICMB has not been profitable over the last twelve months, its liquid assets do exceed short-term obligations, offering some financial stability. For those seeking more in-depth analysis, there are additional InvestingPro Tips available, which could provide a more comprehensive understanding of ICMB's financial health and market position.
It's also worth noting that the company's revenue and gross profit margin figures stand at $25.36 million and 100%, respectively, as of the last twelve months ending Q3 2024. As Investcorp Credit Management BDC, Inc. transitions to a new fiscal year-end and embraces changes in its auditing process, these insights can help investors make informed decisions. For further details and tips, investors are encouraged to explore the full suite of resources available on InvestingPro.
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