Gladstone Capital Corporation Reports Financial Results for its First Quarter Ended December 31, 2017
February 05 2018 - 4:34PM
Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”) today
announced earnings for its first fiscal quarter ended December 31,
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, and
the Company’s website at www.GladstoneCapital.com.
Summary Information (dollars in
thousands, except per share data) (unaudited):
For the Quarter
Ended: |
|
December 31,2017 |
|
September
30,2017 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
Total
investment income |
|
$ |
10,859 |
|
$ |
10,834 |
|
$ |
25 |
|
0.2 |
% |
Total
expenses, net of credits |
|
(5,282 |
) |
(5,348 |
) |
66 |
|
1.2 |
|
Net
investment income |
|
5,577 |
|
5,486 |
|
91 |
|
1.7 |
|
Net
investment income per common share |
|
0.21 |
|
0.21 |
|
— |
|
— |
|
Cash
distribution per common share |
|
0.21 |
|
0.21 |
|
— |
|
— |
|
Net
realized gain (loss) |
|
441 |
|
(1,337 |
) |
1,778 |
|
133.0 |
|
Net
unrealized appreciation |
|
1,142 |
|
1,294 |
|
(152 |
) |
(11.7 |
) |
Net
increase in net assets resulting from operations |
|
7,160 |
|
5,443 |
|
1,717 |
|
31.5 |
|
Weighted
average yield on interest-bearing investments |
|
12.0 |
% |
11.8 |
% |
0.2 |
% |
1.7 |
|
Total
invested |
|
$ |
56,938 |
|
$ |
16,643 |
|
$ |
40,295 |
|
242.1 |
|
Total
repayments and net proceeds |
|
19,843 |
|
12,363 |
|
7,480 |
|
60.5 |
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
December 31,2017 |
|
September
30,2017 |
|
Change |
|
% Change |
|
Total
investments, at fair value |
|
$ |
392,430 |
|
$ |
352,373 |
|
$ |
40,057 |
|
11.4 |
% |
Fair
value, as a percent of cost |
|
87.2 |
% |
85.6 |
% |
1.6 |
% |
1.9 |
|
Net asset
value per common share |
|
$ |
8.48 |
|
$ |
8.40 |
|
$ |
0.08 |
|
1.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Fiscal Quarter 2018 Highlights:
- Portfolio Activity: Invested $56.3 million in
seven new portfolio companies and $0.6 million in existing
portfolio companies. Received $19.8 million in repayments and net
proceeds from portfolio companies resulting in net originations of
$37.1 million.
- Financing Activity: Sold 471,498 shares of our
common stock at a weighted-average price of $9.69 per share through
our at-the-market program for gross proceeds of $4.6
million.
- Recurring Distributions and Dividends: For
each of October, November, and December 2017, paid monthly
distributions to common stockholders of $0.07 per share. For
October 2017, we paid a monthly dividend to holders of the
Company’s 6.00% Series 2024 Term Preferred Stock of $0.141667 per
share (which included the pro-rated period from and including the
issuance date of September 27, 2017 through the full month of
October). For each of November and December 2017, we paid a monthly
dividend to holders of the Company’s 6.00% Series 2024 Term
Preferred Stock of $0.125 per share.
First Fiscal Quarter 2018 Results:
Interest income increased by $0.4 million, or 4.4%, due to an
increase in the average investment portfolio balance and an
increase in the weighted average yield quarter over quarter.
This increase was offset by a decrease in other income of
$0.4 million, or 69.1%, while total investment income was largely
unchanged from the prior quarter. Total expenses decreased
1.2% quarter over quarter as the decrease in dividend expenses
associated with the recently issued 6.0% Series 2024 Term Preferred
Stock more than offset the increase in interest expense on our line
of credit.
Net Investment Income for the quarter ended December 31, 2017
was $5.6 million, or $0.21 per share, an increase of 1.7% as
compared to the prior quarter.
The Net Increase in Net Assets Resulting from Operations for the
quarters ended December 31, 2017 and September 30, 2017 was $7.2
million, or $0.27 per share, compared to $5.4 million, or $0.21 per
share, respectively. The quarter over quarter increase was driven
primarily by the $1.3 million realized loss recognized in the prior
quarter in connection with the voluntary redemption of our Series
2021 Term Preferred Stock and a small increase in the net portfolio
appreciation in the December 31, 2017 quarter.
Subsequent Events:
Subsequent to December 31, 2017, the following significant events
occurred:
- Portfolio Activity:
- In January 2018, we invested $8.1 million in a secured first
lien loan to XMedius Solutions Inc.
- Distributions and Dividends Declared: In
January 2018, our Board of Directors declared the following monthly
distributions to common stockholders and monthly dividends to
preferred shareholders:
Record Date |
|
Payment Date |
|
Distribution per Common Share |
|
Distribution per Series 2024 Term Preferred
Share |
|
January 22, 2018 |
|
January 31, 2018 |
|
$ |
0.07 |
|
$ |
0.125 |
|
February 16, 2018 |
|
February 28, 2018 |
|
0.07 |
|
0.125 |
|
March
20, 2018 |
|
March
30, 2018 |
|
0.07 |
|
0.125 |
|
|
|
Total for the Quarter |
|
$ |
0.21 |
|
$ |
0.375 |
|
|
|
|
|
|
|
|
|
|
|
Comments from Gladstone Capital’s
President, Bob Marcotte: “We closed our fiscal 2018 first
quarter on a very positive note as our results improved due to a
combination of strong asset growth, sustained investment yields,
and lower average financing costs. These factors combined to
lift our net interest margin by 7.1%, compared to the prior
quarter, and 24.2%, compared to the December 31, 2016 quarter, and
should position us well to continue to improve on our results as
the balance of our FY2018 unfolds.”
Conference Call for Stockholders: The Company
will hold its earnings release conference call on Tuesday, February
6, 2018, 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 February 13, 2018. To hear the replay,
please dial (855) 859-2056 and use conference number
54344044. 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 6, 2018.
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 180 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, 2017, including the
notes to the consolidated financial statements contained
therein.
Investor Relations Inquiries: Please visit
www.gladstonecompanies.com or +1-703-287-5893.
Forward-looking Statements:The statements in this press release
about future growth and shareholder returns are "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act
of 1934, as amended. These forward-looking statements
inherently involve certain risks and uncertainties in predicting
future results and conditions. Although these statements are based
on our current plans that are believed to be reasonable as of the
date of this press release, a number of factors could cause actual
results and conditions to differ materially from these
forward-looking statements, including those factors described from
time to time in our filings with the U.S. Securities and Exchange
Commission. The Company undertakes no obligation to publicly
release the result of any revisions to these forward looking
statements that may be made to reflect any future events or
otherwise, except as required by law.
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