Gladstone Investment Corporation Reports Financial Results for its First Quarter Ended June 30, 2016
August 01 2016 - 4:15PM
Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company”)
today announced earnings for its first quarter ended June 30,
2016. Please read the Company’s Quarterly Report on Form 10-Q
filed today with the U.S. Securities and Exchange Commission (the
“SEC”), which can be retrieved from the SEC’s website at
www.sec.gov or from the Company’s website at
www.gladstoneinvestment.com.
Summary Information:
(dollars in thousands, except per share data (unaudited)):
|
|
|
June
30, 2016 |
March
31, 2016 |
Change |
|
% Change |
|
For the quarter ended: |
|
|
|
|
|
|
|
|
|
|
Total investment income |
|
|
$ |
14,393 |
|
$ |
12,441 |
|
$ |
1,952 |
|
15.7 |
% |
Total expenses, net |
|
|
(7,581 |
) |
(7,542 |
) |
39 |
|
0.5 |
|
Net investment income |
|
|
6,812 |
|
4,899 |
|
1,913 |
|
39.0 |
|
Net realized gain |
|
|
18,560 |
|
18 |
|
18,542 |
|
NM |
|
Net unrealized (depreciation)
appreciation |
|
|
(838 |
) |
17,701 |
|
(18,539 |
) |
NM |
|
Net increase in net assets
resulting from operations |
|
|
24,534 |
|
22,618 |
|
1,916 |
|
8.5 |
|
Net investment income per common
share |
|
|
0.23 |
|
0.16 |
|
0.07 |
|
43.8 |
|
Cash distribution per common
share |
|
|
0.19 |
|
0.19 |
|
— |
|
— |
|
Distributions payout ratio(A) |
|
|
42.7 |
% |
46.9 |
% |
(4.2 |
%) |
(9.0 |
) |
Weighted average yield on
interest-bearing investments |
|
|
12.7 |
|
12.7 |
|
— |
|
— |
|
Total dollars invested |
|
|
$ |
28,976 |
|
$ |
1,575 |
|
$ |
27,401 |
|
NM |
|
Total dollars repaid and collected
from sales |
|
|
42,942 |
|
3,363 |
|
39,560 |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
|
As
of: |
|
|
|
|
|
|
|
|
Total investments, at fair
value |
|
|
$ |
490,981 |
|
$ |
487,656 |
|
$ |
3,325 |
|
0.7 |
% |
Fair value, as a percent of
cost |
|
|
94.0 |
% |
94.1 |
% |
(0.1 |
%) |
(0.1 |
) |
Net assets |
|
|
$ |
297,880 |
|
$ |
279,022 |
|
$ |
18,858 |
|
6.8 |
|
Net asset value per common
share |
|
|
9.84 |
|
9.22 |
|
0.62 |
|
6.8 |
|
Number of portfolio companies |
|
|
36 |
|
36 |
|
— |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
(A) Distribution
payout ratio is calculated by dividing distributions to common
stockholders during the period by the sum of Net investment income
in excess of distributions and current period distributions.
|
NM = Not
Meaningful |
|
Highlights for the
Quarter: During the quarter ended June 30, 2016, the
following significant events occurred:
- Portfolio Activity:
- Invested $25.5 million through a combination of secured second
lien debt and preferred equity in one new portfolio company.
- Exited one investment, which resulted in full repayment of our
debt investment of $14.5 million, dividend income of $2.8 million,
and a net realized gain of $18.8 million.
- Invested $3.5 million into existing portfolio
companies.
- Recurring Distributions and Dividends:
Paid monthly cash distributions to common and preferred
stockholders for each of April, May, and June 2016. The
Company paid $0.0625 per common share, per month; $0.1484375 per
share, per month for the Company’s 7.125% Series A Cumulative Term
Preferred Stock (“Series A Term Preferred Stock”); $0.140625 per
share, per month for the Company’s 6.75% Series B Cumulative Term
Preferred Stock (“Series B Term Preferred Stock”); and $0.135417
per share, per month for the Company’s 6.50% Series C Cumulative
Term Preferred Stock (“Series C Term Preferred Stock”).
First Quarter Results:
Net investment income for the quarters ended June 30, 2016 and
March 31, 2016, was $6.8 million, or $0.23 per share, and $4.9
million, or $0.16 per share, respectively, an increase of
39.0%. The increase in net investment income period over
period was primarily due to higher other income.
Net asset value per common share as of June 30, 2016 increased
to $9.84 compared to $9.22 as of March 31, 2016. The quarter
over quarter increase was primarily due to $20.3 million of net
unrealized appreciation, exclusive of reversals related to
portfolio company exits, which was due to improved performance of
certain of our portfolio companies.
Subsequent Events: After
June 30, 2016, the following significant events occurred:
- Regular Distributions and Dividends
Declared: On July 12, 2016, our Board of Directors
declared the following monthly cash distributions and
dividends:
Record
Date |
|
Payment
Date |
|
Distribution per Common Share |
|
Dividend
per Series A Term Preferred Share |
|
Dividend
perSeries B Term Preferred Share |
|
Dividend
per Series C Term Preferred Share |
July
22, 2016 |
|
August
2, 2016 |
|
$ |
0.0625 |
|
$ |
0.1484375 |
|
$ |
0.140625 |
|
$ |
0.135417 |
August
22, 2016 |
|
August
31, 2016 |
|
0.0625 |
|
0.1484375 |
|
0.140625 |
|
0.135417 |
September 21, 2016 |
|
September 30, 2016 |
|
0.0625 |
|
0.1484375 |
|
0.140625 |
|
0.135417 |
Total for the
quarter: |
|
$ |
0.1875 |
|
$ |
0.4453125 |
|
$ |
0.421875 |
|
$ |
0.406251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call: The Company will hold
its earnings release conference call on Tuesday, August 2, 2016, at
8:30 a.m. EDT. Please call (855) 376-7516 to enter the
conference. An operator will monitor the call and set a queue
for any questions. A replay of the conference call will be
available through October 2, 2016. To hear the replay, please
dial (855) 859-2056 and use the playback conference number
29797470. The replay will be available beginning
approximately one hour after the call concludes. The live audio
broadcast of the Company’s quarterly conference call will also be
available online at www.gladstoneinvestment.com. The event will be
archived and available for replay on the Company’s website through
October 2, 2016.
About Gladstone Investment
Corporation: Gladstone Investment
Corporation is a publicly traded business development company that
seeks to make secured debt and equity investments in small and
medium-sized businesses in the United States in connection with
acquisitions, changes in control and recapitalizations. The
Company has paid 132 consecutive monthly cash distributions on its
common stock. Information on the business activities of all the
Gladstone funds can be found at www.gladstonecompanies.com.
To obtain a paper copy of our Quarterly Report on Form 10-Q
filed today with the SEC, please contact the Company at 1521
Westbranch Drive, Suite 100, McLean, VA 22102, ATTN: Investor
Relations. The financial information above is not
comprehensive and is without notes, so readers should obtain and
carefully review the Company’s Form 10-Q for the quarter ended June
30, 2016, including the notes to the consolidated financial
statements contained therein.
Investor Relations Inquiries: Please visit
www.gladstone.com or +1-703-287-5893.
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