Gladstone Investment Corporation Reports Financial Results for its Third Quarter Ended December 31, 2017
February 06 2018 - 4:10PM
Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company”)
today announced earnings for its third 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 or the Company’s website at
www.gladstoneinvestment.com.
Summary Information:
(dollars in thousands, except per share data (unaudited)):
|
|
December 31,2017 |
|
September
30,2017 |
|
Change |
|
%Change |
|
For the quarter ended: |
|
|
|
|
|
|
|
|
|
Total
investment income |
|
$ |
16,184 |
|
$ |
13,132 |
|
$ |
3,052 |
|
23.2 |
% |
Total
expenses, net(A) |
|
8,653 |
|
7,382 |
|
1,271 |
|
17.2 |
|
Net
investment income(A) |
|
7,531 |
|
5,750 |
|
1,781 |
|
31.0 |
|
Net
realized gain (loss) |
|
25 |
|
(43 |
) |
68 |
|
(158.1 |
) |
Net
unrealized appreciation |
|
9,588 |
|
7,849 |
|
1,739 |
|
22.2 |
|
Net
increase in net assets resulting from operations(A) |
|
17,144 |
|
13,556 |
|
3,588 |
|
26.5 |
|
Net
investment income per weighted average common share(A) |
|
0.23 |
|
0.18 |
|
0.05 |
|
27.8 |
|
Net
increase in net assets resulting from operations per weighted
average common share(A) |
|
0.53 |
|
0.42 |
|
0.11 |
|
26.2 |
|
Cash
distribution per common share from net investment income |
|
0.27 |
|
0.19 |
|
0.08 |
|
41.1 |
|
Cash
distribution per common share from realized gains(B) |
|
(0.01 |
) |
— |
|
(0.01 |
) |
NM |
|
|
|
|
|
|
|
|
|
|
|
Distributions coverage ratio(C) |
|
177.4 |
% |
208.6 |
% |
(31.2 |
)% |
(15.0 |
) |
Weighted
average yield on interest-bearing investments |
|
14.2 |
|
12.8 |
|
1.4 |
|
10.9 |
|
Total
dollars invested |
|
$ |
39,540 |
|
$ |
29,500 |
|
$ |
10,040 |
|
34.0 |
|
Total
dollars repaid andcollected from sales |
|
3,211 |
|
3,949 |
|
(738 |
) |
(18.7 |
) |
|
|
|
|
|
|
|
|
|
|
As
of: |
|
|
|
|
|
|
|
|
|
Total
investments, at fair value |
|
$ |
566,379 |
|
$ |
520,174 |
|
$ |
46,205 |
|
8.9 |
% |
Fair
value, as a percent of cost |
|
99.2 |
% |
97.3 |
% |
1.9 |
% |
2.0 |
|
Net
assets |
|
$ |
337,397 |
|
$ |
328,548 |
|
$ |
8,849 |
|
2.7 |
|
Net asset
value per common share |
|
10.37 |
|
10.10 |
|
0.27 |
|
2.7 |
|
Number of
portfolio companies |
|
34 |
|
34 |
|
— |
|
NM |
|
|
|
|
|
|
|
|
|
|
|
(A) Inclusive of a $0.8 million capital gains-based
incentive fee accrued during the three months ended December 31,
2017 in accordance with United States generally accepted accounting
principles, where such amount is not contractually due under the
terms of the investment advisory agreement for the
period.(B) Estimates of tax characterization made on a
quarterly basis may not be representative of the actual tax
characterization of distributions for the full year. Estimates made
on a quarterly basis are updated as of each interim reporting
date. (C) 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 December 31, 2017, the following significant events
occurred:
- Portfolio Activity:
- Invested $31.1 million through a combination of secured first
lien debt and preferred equity into one new portfolio company;
and
- Invested $8.4 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
October, November, and December 2017:
- $0.065 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”).
- Paid a supplemental cash distribution of $0.06 per share to
common stockholders in December 2017.
Third Quarter Results: Net
investment income for the quarters ended December 31, 2017 and
September 30, 2017 was $7.5 million, or $0.23 per common share, and
$5.8 million, or $0.18 per common share, respectively. Net
investment income increased period over period, as the increase in
total investment income resulting from higher interest and other
income, more than offset the increase in total expenses, net of
credits, which was primarily due to higher incentive fees,
including $0.8 million of accrued capital gains-based incentive
fees, the payment of which is not contractually due under the
investment advisory agreement, in the current period.
Net asset value per common share as of December 31, 2017
increased to $10.37 compared to $10.10 as of September 30, 2017.
The quarter over quarter increase was primarily due to improved
performance 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 of certain other
portfolio companies.
Subsequent Events: After
December 31, 2017, the following significant events occurred:
- Distributions and Dividends Declared: In
January 2018, 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 Share of Series B Term Preferred
Stock |
|
Dividend perShare of Series C
Term Preferred Stock |
|
Dividend perShare of Series D
Term Preferred Stock |
|
January 22, 2018 |
|
January 31, 2018 |
|
$ |
0.065 |
|
$ |
0.140625 |
|
$ |
0.135417 |
|
$ |
0.13020833 |
|
February 16, 2018 |
|
February 28, 2018 |
|
0.065 |
|
0.140625 |
|
0.135417 |
|
0.13020833 |
|
March
20, 2018 |
|
March
30, 2018 |
|
0.065 |
|
0.140625 |
|
0.135417 |
|
0.13020833 |
|
|
|
Total for the Quarter: |
|
$ |
0.195 |
|
$ |
0.421875 |
|
$ |
0.406251 |
|
$ |
0.39062499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Significant Investments: In January 2018, we
invested $14.5 million in an existing portfolio company, Schylling,
Inc., through a secured first lien debt investment, and invested
$11.0 million in another existing portfolio company, Nth Degree,
Inc., through a secured first lien debt investment.
Conference Call: The Company will hold
its earnings release conference call on Wednesday, February 7,
2018, at 8:30 a.m. EST. 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 February 14, 2018. To hear the replay, please dial (855)
859-2056 and use the playback conference number 54422389. 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 April 7,
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 151 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 December 31, 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