Gladstone Investment Corporation Reports Financial Results for its Second Quarter Ended September 30, 2017
November 01 2017 - 4:15PM
Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company”)
today announced earnings for its second quarter ended September 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 is available on the SEC’s website at www.sec.gov or the
Company’s website at www.gladstoneinvestment.com.
Summary Information:
(dollars in thousands, except per share data (unaudited)):
|
|
September
30,2017 |
|
June 30, 2017 |
|
Change |
|
%Change |
|
For the quarter ended: |
|
|
|
|
|
|
|
|
|
Total
investment income |
|
$ |
13,132 |
|
$ |
13,620 |
|
$ |
(488 |
) |
(3.6 |
)% |
Total
expenses, net |
|
7,382 |
|
8,185 |
|
(803 |
) |
(9.8 |
) |
Net
investment income |
|
5,750 |
|
5,435 |
|
315 |
|
5.8 |
|
Net
realized (loss) gain |
|
(43 |
) |
1,165 |
|
(1,208 |
) |
NM |
|
Net
unrealized appreciation |
|
7,849 |
|
1,541 |
|
6,308 |
|
409.3 |
|
Net
increase in net assets resulting from operations |
|
13,556 |
|
8,141 |
|
5,415 |
|
66.5 |
|
Net
investment income per weighted average common share |
|
0.18 |
|
0.17 |
|
0.01 |
|
5.9 |
|
Net
increase in net assets resulting from operations per weighted
average common share |
|
0.42 |
|
0.26 |
|
0.16 |
|
61.5 |
|
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 |
) |
(100.0 |
) |
|
|
|
|
|
|
|
|
|
|
Distributions coverage ratio(A) |
|
208.6 |
% |
214.9 |
% |
(6.3 |
)% |
(2.9 |
) |
Weighted
average yield on interest-bearing investments |
|
12.8 |
|
12.6 |
|
0.2 |
|
1.6 |
|
Total
dollars invested |
|
$ |
29,500 |
|
$ |
2,148 |
|
$ |
27,352 |
|
NM |
|
Total
dollars repaid and collected from sales |
|
3,949 |
|
19,457 |
|
(15,508 |
) |
(79.7 |
) |
|
|
|
|
|
|
|
|
|
|
As
of: |
|
|
|
|
|
|
|
|
|
Total
investments, at fair value |
|
$ |
520,174 |
|
$ |
486,770 |
|
$ |
33,404 |
|
6.9 |
% |
Fair
value, as a percent of cost |
|
97.3 |
% |
95.7 |
% |
1.6 |
% |
1.7 |
|
Net
assets |
|
$ |
328,548 |
|
$ |
321,235 |
|
$ |
7,313 |
|
2.3 |
|
Net asset
value per common share |
|
10.10 |
|
9.88 |
|
0.22 |
|
2.2 |
|
Number of
portfolio companies |
|
34 |
|
33 |
|
1 |
|
3.0 |
|
|
|
|
|
|
|
|
|
|
|
(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 MeaningfulHighlights for the
Quarter: During the quarter ended September 30,
2017, the following significant events occurred:
• Portfolio Activity:
- Invested $28.3 million through a combination of secured first
lien debt and preferred equity into one new portfolio company;
and
- Invested $1.2 million in existing portfolio
companies.
• Distributions and Dividends:
- Paid the following monthly cash distributions to common
stockholders and dividends to preferred stockholders for each of
July, August, and September 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”).
Second Quarter Results: Net
investment income for the quarters ended September 30, 2017 and
June 30, 2017 was $5.8 million, or $0.18 per share, and $5.4
million, or $0.17 per share, respectively. Net investment income
increased period over period, as the decrease in total investment
income, which was primarily due to lower other income, was more
than offset by a decrease in total expenses, net of credits,
primarily due to lower bad debt expense and higher credits from our
adviser, Gladstone Management Corporation. The net realized loss
for the quarter ended September 30, 2017 was less than $0.1
million, as compared to net realized gains of $1.2 million during
the quarter ended June 30, 2017. The decrease period over period
was primarily due to the exit of one portfolio company in the prior
quarter as compared to minimal activity in the current quarter.
Net asset value per common share as of September 30, 2017
increased to $10.10 compared to $9.88 as of June 30, 2017. The
quarter over quarter increase was primarily due to $7.8 million of
net unrealized appreciation during the period, which was
principally due to an increase in the fair value of our investment
in Drew Foam, improved performance of certain other portfolio
companies, and an increase in comparable multiples used to estimate
the fair value of certain portfolio companies, which were partially
offset by a decline in performance on certain other portfolio
companies.
Subsequent Events: After
September 30, 2017, the following significant events occurred:
- Distributions and Dividends Declared: In
October 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 perCommon Share |
|
Dividend perSeries B
TermPreferredShare |
|
Dividend perSeries C
TermPreferred Share |
|
DividendperSeries DTerm
Preferred Share |
|
October 20, 2017 |
|
October 31, 2017 |
|
$ |
0.065 |
|
$ |
0.140625 |
|
$ |
0.135417 |
|
$ |
0.13020833 |
|
November 20, 2017 |
|
November 30, 2017 |
|
0.065 |
|
0.140625 |
|
0.135417 |
|
0.13020833 |
|
December 5, 2017 |
|
December 15, 2017 |
|
0.060 |
(A) |
— |
|
— |
|
— |
|
December 19, 2017(A) |
|
December 31, 2017 |
|
0.065 |
|
0.140625 |
|
0.135417 |
|
0.13020833 |
|
Total for the Quarter: |
|
$ |
0.255 |
|
$ |
0.421875 |
|
$ |
0.406251 |
|
$ |
0.39062499 |
|
(A) |
Denotes supplemental
distribution to common stockholders. |
Conference Call: The Company will hold
its earnings release conference call on Thursday, November 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 January 2, 2018. To hear the replay, please dial (855)
859-2056 and use the playback conference number 54419498. 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 February 2,
2018.
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 148 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 September 30, 2017,
including the notes to the consolidated financial statements
contained therein.
Source: Gladstone Investment Corporation
Investor Relations Inquiries:
Please visit www.gladstone.com or +1-703-287-5893.
Gladstone Investment (NASDAQ:GAIN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gladstone Investment (NASDAQ:GAIN)
Historical Stock Chart
From Apr 2023 to Apr 2024