Gladstone Capital Corporation Reports Financial Results for its First Quarter Ended December 31, 2016
February 08 2017 - 4:14PM
Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”) today
announced earnings for its first fiscal quarter ended December 31,
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.GladstoneCapital.com.
Summary Information (dollars in
thousands, except per share data) (unaudited):
For the Quarter
Ended: |
|
December 31,2016 |
|
September
30,2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
Total
investment income |
|
$ |
9,974 |
|
$ |
9,749 |
|
$ |
225 |
|
2.3 |
% |
Total
expenses, net of credits |
|
(4,767 |
) |
(4,847 |
) |
80 |
|
(1.7 |
) |
Net
investment income |
|
5,207 |
|
4,902 |
|
305 |
|
6.2 |
|
Net
investment income per common share |
|
0.21 |
|
0.21 |
|
— |
|
— |
|
Cash
distribution per common share |
|
0.21 |
|
0.21 |
|
— |
|
— |
|
Net
realized loss |
|
(3,448 |
) |
(2,621 |
) |
(827 |
) |
31.6 |
|
Net
unrealized (depreciation) appreciation |
|
(843 |
) |
18,414 |
|
(19,257 |
) |
(104.6 |
) |
Net
increase in net assets resulting from operations |
|
916 |
|
20,695 |
|
(19,781 |
) |
(95.6 |
) |
Weighted
average yield on interest-bearing investments |
|
11.3 |
% |
11.0 |
% |
0.3 |
|
2.7 |
|
Total
invested |
|
$ |
20,047 |
|
$ |
20,163 |
|
$ |
(116 |
) |
(0.6 |
) |
Total
repayments and net proceeds |
|
50,453 |
|
22,719 |
|
27,734 |
|
122.1 |
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
December 31,2016 |
|
September
30,2016 |
|
Change |
|
% Change |
|
Total
investments, at fair value |
|
$ |
288,246 |
|
$ |
322,114 |
|
$ |
(33,868 |
) |
(10.5 |
)% |
Fair
value, as a percent of cost |
|
82.6 |
% |
84.4 |
% |
(1.8 |
)% |
(2.1 |
) |
Net asset
value per common share |
|
$ |
8.36 |
|
$ |
8.62 |
|
$ |
(0.26 |
) |
(3.0 |
) |
NM=Not Meaningful
First Fiscal Quarter 2017 Highlights:
- Portfolio Activity: Invested $17.2 million in
three new portfolio companies and $2.8 million in existing
portfolio companies. Received $50.5 million in repayments and net
proceeds from portfolio companies.
- Common Stock Offering: Completed a public
offering of approximately 2.2 million shares of our common stock
(inclusive of the overallotment). Gross proceeds totaled
$17.3 million and net proceeds, after deducting underwriting
discounts and offering costs borne by us, were approximately $16.4
million.
- Recurring Distributions: Paid monthly
distributions for each of October, November, and December 2016 to
common stockholders ($0.07 per common share) and to preferred
stockholders ($0.140625 per share of the Company’s 6.75% Series
2021 Term Preferred Stock).
First Fiscal Quarter 2017 Results:
Total investment income increased by 2.3% compared to the prior
quarter primarily due to an increase in other income of $0.7
million from success fees collected in conjunction with exits
during the quarter, partially offset by a decrease of $0.5 million,
or 5.3% in interest income, due to a decrease in the average
balance of our interest-bearing portfolio. Total expenses decreased
by 1.7% quarter over quarter, primarily as a result of a $0.3
million decrease in interest expense on borrowings partially offset
by an increase in other expenses.
Net Investment Income for the quarter ending December 31, 2016
was $5.2 million, or $0.21 per share, an increase of 6.2% compared
to the prior quarter.
Net Increase in Net Assets Resulting from Operations for the
quarter ended December 31, 2016 and September 30, 2016 was $0.9
million, or $0.04 per share, compared to $20.7 million, or $0.89
per share, respectively. The quarter over quarter decrease was
driven primarily by the change in net unrealized depreciation and
appreciation on investments quarter over quarter. The
unrealized appreciation during the quarter ended September 30, 2016
was largely attributed to the pending sale of RBC Acquisition Corp
which subsequently closed during the quarter ending December 31,
2016.
Subsequent Events:
Subsequent to December 31, 2016, the following significant events
occurred:
- Portfolio Activity: In February 2017, we
invested $10 million in Belnick, Inc. through secured second lien
debt. Belnick, Inc. is an internet based seller of high volume,
value oriented furniture which the Company sells to major
e-commerce retailers and directly to consumers.
- Distributions Declared: Declared the following
monthly cash distributions to stockholders in January 2017:
|
|
|
|
|
|
|
Record Date |
|
Payment Date |
|
Distribution perCommon
Share |
|
Distribution perSeries 2021 TermPreferred
Share |
January 20 |
|
January 31 |
|
$ |
0.07 |
|
$ |
0.140625 |
February 16 |
|
February 28 |
|
0.07 |
|
0.140625 |
March
22 |
|
March
31 |
|
0.07 |
|
0.140625 |
Total for the Quarter |
|
$ |
0.21 |
|
$ |
0.421875 |
|
|
|
|
|
|
|
Conference Call for Stockholders: The Company
will hold its earnings release conference call on Thursday,
February 9, 2017, at 8:30 a.m. EST. Please call (855)
465-0177 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 March 9, 2017. To
hear the replay, please dial (855) 859-2056 and use conference
number 56270169. The replay of the conference call 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.GladstoneCapital.com. The event will be archived and
available for replay on the Company’s website through April 9,
2017.
About Gladstone Capital Corporation: Gladstone
Capital Corporation is a publicly traded business development
company that invests in debt and equity securities, consisting
primarily of secured first and second lien term loans to lower
middle market businesses in the United States. Including
distributions through today, the Company has paid 168 consecutive
monthly or quarterly 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 the Company’s most recent Form 10-Q,
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 December 31, 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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