Gladstone Investment Corporation Reports Financial Results for its First Quarter Ended June 30, 2017
August 01 2017 - 4:10PM
Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company”)
today announced earnings for its first quarter ended June 30, 2017.
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 30,2017 |
|
March 31, 2017 |
|
Change |
|
%Change |
|
For the quarter ended: |
|
|
|
|
|
|
|
|
|
Total
investment income |
|
$ |
13,620 |
|
$ |
12,364 |
|
$ |
1,256 |
|
10.2 |
% |
Total
expenses, net |
|
8,185 |
|
7,070 |
|
1,115 |
|
15.8 |
|
Net
investment income |
|
5,435 |
|
5,294 |
|
141 |
|
2.7 |
|
Net
realized gain |
|
1,165 |
|
157 |
|
1,008 |
|
642.0 |
|
Net
unrealized appreciation |
|
1,541 |
|
3,925 |
|
(2,384 |
) |
(60.7 |
) |
Net
increase in net assets resulting from operations |
|
8,141 |
|
9,376 |
|
(1,235 |
) |
(13.2 |
) |
Net
investment income per weighted average common share |
|
0.17 |
|
0.17 |
|
— |
|
— |
|
Net
increase in net assets resulting from operations per weighted
average common share |
|
0.26 |
|
0.31 |
|
(0.05 |
) |
(16.1 |
) |
Cash
distribution per common share from net investment income |
|
0.19 |
|
0.19 |
|
— |
|
— |
|
Cash
distribution per common share from realized gains |
|
0.06 |
|
— |
|
0.06 |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
Distributions coverage ratio(A) |
|
214.9 |
% |
228.3 |
% |
(13.4 |
)% |
(5.9 |
) |
Weighted
average yield on interest-bearing investments |
|
12.6 |
|
12.8 |
|
(0.2 |
) |
(1.6 |
) |
Total
dollars invested |
|
$ |
2,148 |
|
$ |
31,260 |
|
$ |
(29,112 |
) |
(93.1 |
) |
Total
dollars repaid and collected from sales |
|
19,457 |
|
5,151 |
|
14,306 |
|
277.7 |
|
|
|
|
|
|
|
|
|
|
|
As
of: |
|
|
|
|
|
|
|
|
|
Total
investments, at fair value |
|
$ |
486,770 |
|
$ |
501,579 |
|
$ |
(14,809 |
) |
(3.0 |
)% |
Fair
value, as a percent of cost |
|
95.7 |
% |
95.5 |
% |
0.2 |
% |
0.2 |
|
Net
assets |
|
$ |
321,235 |
|
$ |
301,082 |
|
$ |
20,153 |
|
6.7 |
|
Net asset
value per common share |
|
9.88 |
|
9.95 |
|
(0.07 |
) |
(0.7 |
) |
Number of
portfolio companies |
|
33 |
|
35 |
|
(2 |
) |
(5.7 |
) |
|
(A)
Distributions coverage ratio is calculated by dividing (i) the sum
of net investment income in excess of distributions at the end of
the period and distributions to common stockholders from net
investment income during the period by (ii) current period
distributions from net investment income to common
stockholders. |
|
NM =
Not Meaningful |
|
Highlights for the
Quarter: During the quarter ended June 30, 2017, the
following significant events occurred:
-- Portfolio Activity:
- Exit of one investment, which resulted in success fee income of
$1.7 million and net cash proceeds of $19.0 million, including
repayment of our debt investment of $13.6 million at par and a
realized gain of $1.0 million.
- Partial exit of one investment, which resulted in net cash
proceeds of $2.0 million representing a return of capital.
- Merger of one of our portfolio companies with and into another
one of our portfolio companies, which, among other things, resulted
in success fee income of $0.3 million.
- Investments of $2.1 million into existing portfolio
companies.
-- Financing Activity:
- Issuance of 2.3 million shares of common stock at a public
offering price of $9.38 per share resulting in gross proceeds of
$21.2 million and net proceeds of $20.1 million.
-- Distributions and Dividends:
- Payment of the following monthly cash distributions to common
stockholders and dividends to preferred stockholders for each of
April, May, and June 2017: -- $0.064 per common share, per
month; -- $0.140625 per share, per month, for the Company’s
6.75% Series B Cumulative Term Preferred Stock (“Series B Term
Preferred Stock”); -- $0.135417 per share, per month, for the
Company’s 6.50% Series C Cumulative Term Preferred Stock (“Series C
Term Preferred Stock”); and -- $0.13020833 per share to
holders of our 6.25% Series D Cumulative Term Preferred Stock
(“Series D Term Preferred Stock”).
- Payment of a supplemental cash distribution of $0.06 per share
to common stockholders in June 2017.
First Quarter Results: Net
investment income for the quarters ended June 30, 2017 and March
31, 2017 was $5.4 million, or $0.17 per share, and $5.3 million, or
$0.17 per share, respectively. Net investment income period over
period was relatively flat, as the increase in total investment
income, which was primarily due to higher other income, was offset
by an increase in total expenses, net of credits, which was
primarily due to higher bad debt expense and lower credits from the
Adviser. The net realized gain for the quarters ended June 30, 2017
and March 31, 2017 was $1.2 million and $0.2 million, respectively.
The increase period over period was primarily due to the exit of
one portfolio company in the current quarter as compared to minimal
activity in the prior quarter.
Net asset value per common share as of June 30, 2017 decreased
to $9.88 compared to $9.95 as of March 31, 2017. The quarter over
quarter decrease was primarily due to the issuance of shares of
common stock at a price below the then current net asset value per
common share.
Subsequent Events: After
June 30, 2017, the following significant events occurred:
- Distributions and Dividends Declared: In July
2017, our Board of Directors declared the following monthly
distributions to common stockholders and monthly dividends to
holders of our three series of term preferred stock:
Record Date |
|
Payment Date |
|
Distribution per Common Share |
|
Dividend per Series B Term Preferred
Share |
|
Dividend perSeries C Term
Preferred Share |
|
Dividend perSeries D Term
Preferred Share |
|
July
21, 2017 |
|
July
31, 2017 |
|
$ |
0.064 |
|
$ |
0.140625 |
|
$ |
0.135417 |
|
$ |
0.13020833 |
|
August
21, 2017 |
|
August
31, 2017 |
|
0.064 |
|
0.140625 |
|
0.135417 |
|
0.13020833 |
|
September 20, 2017(A) |
|
September 29, 2017 |
|
0.064 |
|
0.140625 |
|
0.135417 |
|
0.13020833 |
|
Total for the Quarter: |
|
$ |
0.192 |
|
$ |
0.421875 |
|
$ |
0.406251 |
|
$ |
0.39062499 |
|
(A) |
Previously, on July 11,
2017, the Company announced an ex-dividend date of September 18,
2017 for the September 2017 distribution and dividends. As an
update to the Company’s previous announcement, the Company notes
that the ex-dividend date for the September 2017 distribution and
dividends is September 19, 2017. |
|
|
Conference Call: The Company will hold
its earnings release conference call on Wednesday, August 2, 2017,
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 September 2, 2017. To hear the replay, please dial (855)
859-2056 and use the playback conference number 54415702. 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,
2017.
About Gladstone Investment
Corporation: Gladstone Investment
Corporation is a publicly traded business development company that
seeks to make secured debt and equity investments in lower middle
market businesses in the United States in connection with
acquisitions, changes in control and recapitalizations. The Company
has paid 145 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 three months ended June 30, 2017,
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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