10-Q 1 htgc_q2_06302021_non-xbr.htm 10-Q 10-Q

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended June 30, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 814-00702

 

HERCULES CAPITAL, INC.

(Exact Name of Registrant as Specified in its Charter)

 

 

Maryland

 

74-3113410

(State or Jurisdiction of

Incorporation or Organization)

 

(IRS Employer

 Identification Number)

 

400 Hamilton Ave., Suite 310

Palo Alto, California

(Address of Principal Executive Offices)

 

94301

(Zip Code)

 

(650) 289-3060

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Shares, par value $0.001 per share

HTGC

New York Stock Exchange

5.25% Notes due 2025

HCXZ

New York Stock Exchange

6.25% Notes due 2033

HCXY

New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒     No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes ☐     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

 

  

Accelerated filer

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ☐    No ☒

On July 22, 2021, there were 115,840,092 shares outstanding of the Registrant’s common stock, $0.001 par value.

 

 


 

HERCULES CAPITAL, INC.

FORM 10-Q TABLE OF CONTENTS

 

PART I. FINANCIAL INFORMATION

  

3

 

Item 1.

 

 

Consolidated Financial Statements

  

3

 

 

 

Consolidated Statements of Assets and Liabilities as of June 30, 2021 (unaudited) and December 31, 2020

  

3

 

 

 

Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020 (unaudited)

  

5

 

 

 

Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2021 and 2020 (unaudited)

  

6

 

 

 

Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020 (unaudited)

  

7

 

 

 

Consolidated Schedule of Investments as of June 30, 2021 (unaudited)

  

8

 

 

 

Consolidated Schedule of Investments as of December 31, 2020

  

18

 

 

 

Notes to Consolidated Financial Statements (unaudited)

  

29

Item 2.

 

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

  

64

Item 3.

 

 

Quantitative and Qualitative Disclosures About Market Risk

  

82

Item 4.

 

 

Controls and Procedures

  

83

 

PART II. OTHER INFORMATION

  

84

 

Item 1.

 

Legal Proceedings

  

84

Item 1A.

 

 

Risk Factors

 

84

Item 2.

 

 

Unregistered Sales of Equity Securities and Use of Proceeds

  

85

Item 3.

 

Defaults Upon Senior Securities

  

85

Item 4.

 

 

Mine Safety Disclosures

  

85

Item 5.

 

 

Other Information

  

85

Item 6.

 

 

Exhibits and Financial Statement Schedules

  

86

 

SIGNATURES

  

89

 

 

 

 


 

PART I: FINANCIAL INFORMATION

In this Quarterly Report, the “Company,” “Hercules,” “we,” “us” and “our” refer to Hercules Capital, Inc. and its wholly owned subsidiaries and its affiliated securitization trusts, unless the context otherwise requires.

 

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

 

 

 

June 30, 2021

 

 

December 31, 2020

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Investments, at fair value:

 

 

 

 

 

 

Non-control/Non-affiliate investments (cost of $2,307,766 and $2,175,651, respectively)

 

$

2,444,849

 

 

$

2,288,338

 

Control investments (cost of $77,901 and $65,257, respectively)

 

 

66,491

 

 

 

57,400

 

Affiliate investments (cost of $13,307 and $74,450, respectively)

 

 

9,750

 

 

 

8,340

 

Total investments, at fair value (cost of $2,398,974 and $2,315,358, respectively)

 

 

2,521,090

 

 

 

2,354,078

 

Cash and cash equivalents

 

 

18,447

 

 

 

198,282

 

Restricted cash

 

 

5,766

 

 

 

39,340

 

Interest receivable

 

 

19,063

 

 

 

19,077

 

Right of use asset

 

 

8,039

 

 

 

9,278

 

Other assets

 

 

6,167

 

 

 

3,942

 

Total assets

 

$

2,578,572

 

 

$

2,623,997

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Debt (net of debt issuance costs - Note 5)

 

$

1,177,515

 

 

$

1,286,638

 

Accounts payable and accrued liabilities

 

 

36,886

 

 

 

36,343

 

Operating lease liability

 

 

7,813

 

 

 

9,312

 

Total liabilities

 

$

1,222,214

 

 

$

1,332,293

 

 

 

 

 

 

 

Net assets consist of:

 

 

 

 

 

 

Common stock, par value

 

 

116

 

 

 

115

 

Capital in excess of par value

 

 

1,163,910

 

 

 

1,158,198

 

Total distributable earnings

 

 

192,332

 

 

 

133,391

 

Total net assets

 

$

1,356,358

 

 

$

1,291,704

 

Total liabilities and net assets

 

$

2,578,572

 

 

$

2,623,997

 

 

 

 

 

 

 

 

Shares of common stock outstanding ($0.001 par value and 200,000,000 authorized)

 

 

115,867

 

 

 

114,726

 

Net asset value per share

 

$

11.71

 

 

$

11.26

 

 

 

 

See notes to consolidated financial statements

 

3


 

The following table presents the assets and liabilities of our consolidated securitization trusts for the 2027 Asset-Backed Notes and the 2028 Asset-Backed Notes (see “Note 5 – Debt”), which are variable interest entities, or VIEs. The assets of our securitization VIEs can only be used to settle obligations of our consolidated securitization VIEs, these liabilities are only the obligations of our consolidated securitization VIEs, and the creditors (or beneficial interest holders) do not have recourse to our general credit. These assets and liabilities are included in the Consolidated Statements of Assets and Liabilities above.

 

 

 

June 30, 2021

 

 

December 31, 2020

 

(Dollars in thousands)

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

Restricted Cash

 

$

5,766

 

 

$

39,340

 

2027 Asset-Backed Notes, investments in securities, at value (cost of $219,537 and $267,657, respectively)

 

 

222,212

 

 

 

269,551

 

2028 Asset-Backed Notes, investments in securities, at value (cost of $321,429 and $355,236, respectively)

 

 

325,135

 

 

 

356,097

 

Total assets

 

$

553,113

 

 

$

664,988

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

2027 Asset-Backed Notes, net (principal of $117,896 and $180,988, respectively) (1)

 

$

116,571

 

 

$

178,812

 

2028 Asset-Backed Notes, net (principal of $196,485 and $250,000, respectively) (1)

 

 

194,749

 

 

 

247,647

 

Total liabilities

 

$

311,320

 

 

$

426,459

 

 

(1)
The Company’s 2027 Asset-Backed Notes and the 2028 Asset-Backed Notes are presented net of the associated debt issuance costs. See “Note 5 – Debt”.

 

See notes to consolidated financial statements

 

4


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

$

60,276

 

 

$

62,667

 

 

$

123,258

 

 

$

128,005

 

Control investments

 

 

1,029

 

 

 

731

 

 

 

1,828

 

 

 

1,377

 

Affiliate investments

 

 

1

 

 

 

157

 

 

 

2

 

 

 

377

 

Total interest income

 

 

61,306

 

 

 

63,555

 

 

 

125,088

 

 

 

129,759

 

Fee income

 

 

 

 

 

 

 

 

 

 

 

 

Commitment, facility and loan fee income

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

5,263

 

 

 

3,511

 

 

 

8,666

 

 

 

7,707

 

Control investments

 

 

15

 

 

 

5

 

 

 

23

 

 

 

10

 

Total commitment, facility and loan fee income

 

 

5,278

 

 

 

3,516

 

 

 

8,689

 

 

 

7,717

 

One-time fee income

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

2,975

 

 

 

897

 

 

 

4,541

 

 

 

4,111

 

Total one-time fee income

 

 

2,975

 

 

 

897

 

 

 

4,541

 

 

 

4,111

 

Total fee income

 

 

8,253

 

 

 

4,413

 

 

 

13,230

 

 

 

11,828

 

Total investment income

 

 

69,559

 

 

 

67,968

 

 

 

138,318

 

 

 

141,587

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

14,490

 

 

 

15,076

 

 

 

29,240

 

 

 

29,608

 

Loan fees

 

 

2,220

 

 

 

1,650

 

 

 

5,020

 

 

 

3,444

 

General and administrative

 

 

 

 

 

 

 

 

 

 

 

 

Legal expenses

 

 

526

 

 

 

991

 

 

 

954

 

 

 

1,890

 

Tax expenses

 

 

1,746

 

 

 

899

 

 

 

3,184

 

 

 

2,034

 

Other expenses

 

 

3,542

 

 

 

3,973

 

 

 

6,710

 

 

 

7,998

 

Total general and administrative

 

 

5,814

 

 

 

5,863

 

 

 

10,848

 

 

 

11,922

 

Employee compensation

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

8,349

 

 

 

7,180

 

 

 

18,153

 

 

 

15,394

 

Stock-based compensation

 

 

2,926

 

 

 

2,515

 

 

 

5,670

 

 

 

4,955

 

Total employee compensation

 

 

11,275

 

 

 

9,695

 

 

 

23,823

 

 

 

20,349

 

Total gross operating expenses

 

 

33,799

 

 

 

32,284

 

 

 

68,931

 

 

 

65,323

 

Expenses allocated to the Adviser Subsidiary

 

 

(1,204

)

 

 

 

 

 

(2,137

)

 

 

 

Total net operating expenses

 

 

32,595

 

 

 

32,284

 

 

 

66,794

 

 

 

65,323

 

Net investment income

 

 

36,964

 

 

 

35,684

 

 

 

71,524

 

 

 

76,264

 

Net realized gain (loss) and change in unrealized appreciation (depreciation) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

47,861

 

 

 

141

 

 

 

55,631

 

 

 

7,108

 

Affiliate investments

 

 

(62,143

)

 

 

 

 

 

(62,143

)

 

 

 

Total net realized gain (loss) on investments

 

 

(14,282

)

 

 

141

 

 

 

(6,512

)

 

 

7,108

 

Net change in unrealized appreciation (depreciation) on investments

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliate investments

 

 

3,075

 

 

 

23,613

 

 

 

21,097

 

 

 

(34,816

)

Control investments

 

 

(5,255

)

 

 

2,642

 

 

 

(3,553

)

 

 

(5,209

)

Affiliate investments

 

 

62,229

 

 

 

(315

)

 

 

64,338

 

 

 

(10,305

)

Total net change in unrealized appreciation (depreciation) on investments

 

 

60,049

 

 

 

25,940

 

 

 

81,882

 

 

 

(50,330

)

Total net realized gain (loss) and change in unrealized appreciation (depreciation) on investments:

 

 

45,767

 

 

 

26,081

 

 

 

75,370

 

 

 

(43,222

)

Net increase (decrease) in net assets resulting from operations

 

$

82,731

 

 

$

61,765

 

 

$

146,894

 

 

$

33,042

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income before investment gains and losses per common share:

 

Basic

 

$

0.32

 

 

$

0.32

 

 

$

0.62

 

 

$

0.69

 

Change in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.71

 

 

$

0.55

 

 

$

1.27

 

 

$

0.29

 

Diluted

 

$

0.65

 

 

$

0.55

 

 

$

1.21

 

 

$

0.29

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

114,654

 

 

 

111,558

 

 

 

114,480

 

 

 

110,256

 

Diluted

 

 

129,572

 

 

 

111,729

 

 

 

122,188

 

 

 

110,504

 

Distributions paid per common share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.39

 

 

$

0.32

 

 

$

0.76

 

 

$

0.72

 

 

 

See notes to consolidated financial statements

 

5


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(dollars and shares in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Distributable

 

 

 

 

 

Common Stock

 

 

excess

 

 

Earnings

 

 

Net

 

For the Three Months Ended June 30, 2021

Shares

 

 

Par Value

 

 

of par value

 

 

(loss)

 

 

Assets

 

Balance as of March 31, 2021

 

115,768

 

 

$

116

 

 

$

1,160,519

 

 

$

154,759

 

 

$

1,315,394

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

82,731

 

 

 

82,731

 

Public offering, net of offering expenses

 

 

 

 

 

 

 

(3

)

 

 

 

 

 

(3

)

Issuance of common stock due to stock option exercises

 

41

 

 

 

 

 

 

888

 

 

 

 

 

 

888

 

Retired shares from net issuance

 

(12

)

 

 

 

 

 

(486

)

 

 

 

 

 

(486

)

Issuance of common stock under restricted stock plan

 

36

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(33

)

 

 

 

 

 

(725

)

 

 

 

 

 

(725

)

Distributions reinvested in common stock

 

67

 

 

 

 

 

 

1,070

 

 

 

 

 

 

1,070

 

Distributions

 

 

 

 

 

 

 

 

 

 

(45,158

)

 

 

(45,158

)

Stock-based compensation (1)

 

 

 

 

 

 

 

2,647

 

 

 

 

 

 

2,647

 

Balance as of June 30, 2021

 

115,867

 

 

$

116

 

 

$

1,163,910

 

 

$

192,332

 

 

$

1,356,358

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2020

 

114,726

 

 

$

115

 

 

$

1,158,198

 

 

$

133,391

 

 

$

1,291,704

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

146,894

 

 

 

146,894

 

Public offering, net of offering expenses

 

 

 

 

 

 

 

(198

)

 

 

 

 

 

(198

)

Issuance of common stock due to stock option exercises

 

263

 

 

 

 

 

 

3,633

 

 

 

 

 

 

3,633

 

Retired shares from net issuance

 

(62

)

 

 

 

 

 

(1,089

)

 

 

 

 

 

(1,089

)

Issuance of common stock under restricted stock plan

 

960

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

(154

)

 

 

 

 

 

(3,906

)

 

 

 

 

 

(3,906

)

Distributions reinvested in common stock

 

134

 

 

 

 

 

 

2,110

 

 

 

 

 

 

2,110

 

Distributions

 

 

 

 

 

 

 

 

 

 

(87,953

)

 

 

(87,953

)

Stock-based compensation (1)

 

 

 

 

 

 

 

5,163

 

 

 

 

 

 

5,163

 

Balance as of June 30, 2021

 

115,867

 

 

$

116

 

 

$

1,163,910

 

 

$

192,332

 

 

$

1,356,358

 

 

(1)
Stock-based compensation includes $25 and $50 of restricted stock and option expense related to director compensation for the three and six months ended June 30, 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital in

 

 

Distributable

 

 

 

 

 

 

Common Stock

 

 

excess

 

 

Earnings

 

 

Net

 

For the Three Months Ended June 30, 2020

 

Shares

 

 

Par Value

 

 

of par value

 

 

(loss)

 

 

Assets

 

Balance as of March 31, 2020

 

 

110,601

 

 

$

111

 

 

$

1,182,080

 

 

$

(85,111

)

 

$

1,097,080

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

 

61,765

 

 

 

61,765

 

Public offering, net of offering expenses

 

 

3,525

 

 

 

4

 

 

 

38,696

 

 

 

 

 

 

38,700

 

Issuance of common stock under restricted stock plan

 

 

52

 

 

 

 

 

 

 

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

 

(10

)

 

 

 

 

 

(282

)

 

 

 

 

 

(282

)

Distributions reinvested in common stock

 

 

62

 

 

 

 

 

 

643

 

 

 

 

 

 

643

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

(36,002

)

 

 

(36,002

)

Stock-based compensation (1)

 

 

 

 

 

 

 

 

2,126

 

 

 

 

 

 

2,126

 

Balance as of June 30, 2020

 

 

114,230

 

 

$

115

 

 

$

1,223,263

 

 

$

(59,348

)

 

$

1,164,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as of December 31, 2019

 

 

107,364

 

 

$

108

 

 

$

1,145,106

 

 

$

(12,165

)

 

$

1,133,049

 

Net increase (decrease) in net assets resulting from operations

 

 

 

 

 

 

 

 

 

 

 

33,042

 

 

 

33,042

 

Public offering, net of offering expenses

 

 

5,966

 

 

 

6

 

 

 

73,656

 

 

 

 

 

 

73,662

 

Issuance of common stock due to stock option exercises

 

 

29

 

 

 

 

 

 

362

 

 

 

 

 

 

362

 

Retired shares from net issuance

 

 

(24

)

 

 

 

 

 

(376

)

 

 

 

 

 

(376

)

Issuance of common stock under restricted stock plan

 

 

801

 

 

 

1

 

 

 

(1

)

 

 

 

 

 

 

Retired shares for restricted stock vesting

 

 

(27

)

 

 

 

 

 

(1,162

)

 

 

 

 

 

(1,162

)

Distributions reinvested in common stock

 

 

121

 

 

 

 

 

 

1,470

 

 

 

 

 

 

1,470

 

Distributions

 

 

 

 

 

 

 

 

 

 

 

(80,225

)

 

 

(80,225

)

Stock-based compensation (1)

 

 

 

 

 

 

 

 

4,208

 

 

 

 

 

 

4,208

 

Balance as of June 30, 2020

 

 

114,230

 

 

$

115

 

 

$

1,223,263

 

 

$

(59,348

)

 

$

1,164,030

 

 

(1)
Stock-based compensation includes $23 and $44 of restricted stock and option expense related to director compensation for the three and six months ended June 30, 2020.

 

See notes to consolidated financial statements

 

6


 

HERCULES CAPITAL, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)

 

 

For the Six Months Ended June 30,

 

 

2021

 

 

2020

 

Cash flows used in operating activities:

 

 

 

 

 

Net increase in net assets resulting from operations

$

146,894

 

 

$

33,042

 

Adjustments to reconcile net increase in net assets resulting from
operations to net cash provided by (used in) operating activities:

 

 

 

Purchases of investments

 

(629,146

)

 

 

(365,890

)

Fundings assigned to External Funds

 

75,286

 

 

 

 

Principal and fee payments received on investments

 

394,801

 

 

 

269,234

 

Proceeds from the sale of investments

 

70,596

 

 

 

19,802

 

Net unrealized (appreciation) depreciation on investments

 

(81,882

)

 

 

50,330

 

Net realized loss (gain) on investments

 

6,512

 

 

 

(7,108

)

Accretion of paid-in-kind principal

 

(4,990

)

 

 

(4,230

)

Accretion of loan discounts

 

(1,789

)

 

 

(2,345

)

Accretion of loan discount on convertible notes

 

336

 

 

 

336

 

Accretion of loan exit fees

 

(11,372

)

 

 

(12,692

)

Change in deferred loan origination revenue

 

14,846

 

 

 

3,664

 

Unearned fees related to unfunded commitments

 

(2,503

)

 

 

(688

)

Amortization of debt fees and issuance costs

 

3,840

 

 

 

2,489

 

Depreciation

 

187

 

 

 

222

 

Stock-based compensation and amortization of restricted stock grants (1)

 

5,163

 

 

 

4,208

 

Change in operating assets and liabilities:

 

 

 

 

Interest receivable

 

14

 

 

 

749

 

Other assets

 

1,978

 

 

 

(1,387

)

Accounts payable

 

 

 

 

(16

)

Accrued liabilities

 

(956

)

 

 

(2,488

)

Net cash used in operating activities

 

(12,185

)

 

 

(12,768

)

 

 

 

 

 

Cash flows used in investing activities:

 

 

 

Purchases of capital equipment

 

(12

)

 

 

(67

)

Net cash used in investing activities

 

(12

)

 

 

(67

)

 

 

 

 

 

Cash flows used in financing activities:

 

 

 

Issuance of common stock

 

 

 

 

73,856

 

Offering expenses

 

(198

)

 

 

(194

)

Retirement of employee shares

 

(1,362

)

 

 

(1,178

)

Distributions paid

 

(85,843

)

 

 

(78,755

)

Issuance of debt

 

590,495

 

 

 

445,288

 

Repayments of debt

 

(700,658

)

 

 

(467,957