Net Asset Value of $10.58 per Share as of
September 30, 2018
GSV Capital Corp. (“GSV Capital” or the “Company”)
(Nasdaq:GSVC) today announced financial results for the quarter
ended September 30, 2018. Net assets totaled approximately
$213.4 million, or $10.58 per share, at September 30, 2018, as
compared to $9.64 per share at December 31, 2017 and $9.69 per
share at September 30, 2017.
"We are pleased to report a strong third quarter
for GSV Capital, which was driven by positive developments across
the portfolio,” said Michael Moe, Chairman of GSV Capital’s
Board of Directors. "Looking ahead, GSV Capital is well
positioned to execute against its disciplined growth investment
strategy. We believe we have developed a portfolio and pipeline of
leading, late-stage venture-backed companies with strong operating
fundamentals and the potential for scaled valuation growth. The IPO
environment continues to show signs of strength, and we remain
confident that our portfolio companies planning to go public in the
near-term will be well received."
"We are also happy to announce that the GSV
Capital Board of Directors has authorized the expansion of our
current share repurchase program by $5.0 million to an aggregate of
$20.0 million,” Moe continued. “Under this program, we have
repurchased a total of approximately $14.2 million in shares,
including approximately $4.1 million in the third quarter of 2018.
Since inception of the Share Repurchase Program, we have
repurchased approximately 11% of GSV Capital common stock.”
Investment Portfolio as of September 30,
2018
At September 30, 2018, GSV Capital held
positions in 26 portfolio companies with an aggregate fair value of
approximately $217.2 million. As a result of the Company’s
continued strategy to increase the size of its investments in
individual portfolio companies, GSV Capital’s investment portfolio
has become more concentrated around its top positions. For
example, the Company’s top five portfolio company investments
accounted for 62.9% of the total portfolio at fair value as of
September 30, 2018, compared to 47.8% as of September 30, 2017. GSV
Capital’s portfolio investments do not include the Company’s
investments in treasuries.
Top Five Investments at September 30,
2018
| $ in
millions |
Fair Value |
% of Total Portfolio Investments |
| Spotify Technology S.
A. |
$ |
42.6 |
19.6 % |
| Palantir Technologies,
Inc. |
|
35.0 |
16.1 % |
| Dropbox, Inc. |
|
23.5 |
10.8 % |
| Coursera, Inc. |
|
20.6 |
9.5 % |
| StormWind, LLC |
|
15.0 |
6.9 % |
|
Total |
$ |
136.7 |
62.9 % |
Third Quarter 2018 Portfolio Investment
Activity
During the three months ended September 30,
2018, GSV Capital made the following new investments:
|
Portfolio Company |
|
Investment |
|
Transaction Date |
|
Gross Payments(in millions) |
| Knewton, Inc. |
|
Unsecured Convertible
Promissory Note |
|
7/23/2018 |
|
$0.1 |
| Nextdoor.com, Inc. |
|
Common
Stock |
|
9/27/2018 |
|
$6.3 |
During the three months ended September 30, 2018, GSV Capital
exited investments in the following portfolio companies:
|
Portfolio Company |
|
Exit Date |
|
Shares Sold |
|
Net Proceeds(in millions) |
Realized Gain / (Loss)(in
millions) (1) |
| Lytro, Inc. |
|
8/1/2018 |
|
3,537,539 |
|
$0.8 |
($9.3) |
| SugarCRM, Inc. |
|
8/30/2018 |
|
1,897,933 |
|
$2.6 |
($4.1) |
| DreamBox Learning,
Inc. |
|
9/5/2018 |
|
10,738,831 |
|
$5.2 |
$3.3 |
__________________
| (1) |
Includes expected escrow proceeds of approximately $1.0
million. |
Third Quarter 2018 Financial
Results
| |
Quarter EndedSeptember 30,
2018 |
Quarter EndedSeptember 30,
2017 |
|
|
|
|
|
|
|
|
$ in millions |
per share |
$ in millions |
per share |
| |
|
|
|
|
| Net investment
loss |
$(3.9) |
$(0.19) |
$(6.6) |
$(0.30) |
| |
|
|
|
|
| Net realized
gain/(loss) on investments |
(10.1) |
(0.49) |
1.0 |
0.05 |
| |
|
|
|
|
| Net change in
unrealized appreciation of investments, net of tax benefit(1) |
14.4 |
0.70 |
15.7 |
0.71 |
| |
|
|
|
|
| Net increase in net
assets resulting from operations - basic |
$0.3 |
$0.02 |
$10.1 |
$0.46 |
| |
|
|
|
|
| Repurchase of common
stock(2) |
(4.1) |
0.10 |
(2.8) |
0.12 |
| |
|
|
|
|
|
Increase/(decrease) in net asset value(3) |
$(3.7) |
$0.12 |
$7.3 |
$0.58 |
__________________
| (1) |
Includes
related net tax benefit of $0.2 million and $<0.1 million for
the quarters ended September 20, 2018 and 2017, respectively. |
| (2) |
During
the quarters ended September 30, 2018 and 2017, the Company
repurchased 575,958 and 574,109 shares of GSV Capital common stock,
respectively, for approximately $4.1 million and $2.8 million,
respectively, in cash under its Share Repurchase Program. The use
of cash in connection with the repurchases decreased net asset
value as of period end; however, the reduction in shares
outstanding as of period end resulted in an increase in the net
asset value per share. |
| (3) |
Total may not sum, due to
rounding. |
Weighted-average common basic shares outstanding
were approximately 20.5 million and 22.0 million for the quarters
ended September 30, 2018 and 2017, respectively.
GSV Capital’s liquid assets were $102.6 million
as of September 30, 2018, consisting of $36.6 million of cash and
$66.0 million of unrestricted marketable securities. At quarter-end
and as of November 7, 2018, GSV Capital did not have any borrowings
outstanding under its $12.0 million credit facility.
Convertible Senior Notes
GSV Capital’s 5.25% Convertible Senior Notes due
2018 matured on September 15, 2018. Pursuant to the terms of the
5.25% Convertible Senior Notes due 2018, the Company repaid the
remaining outstanding aggregate principal amount of the 5.25%
Convertible Senior Notes due 2018, including accrued but unpaid
interest, upon maturity. As a result the 5.25% Convertible Senior
Notes were no longer outstanding as of such date.
Share Repurchase Program
Under the publicly announced share repurchase
program, as of September 30, 2018, the Company had repurchased
2,006,048 shares of its common stock for approximately $12.4
million. From October 1, 2018 through November 7, 2018, the Company
repurchased an additional 259,954 shares of its common stock for an
aggregate purchase price of $1.8 million.
As of November 7, 2018, in light of the Board of
Directors’ authorization to increase the amount of shares of
Company common stock that may be repurchased under the share
repurchase program, the dollar value of shares that may yet be
purchased by the Company under the program is approximately $5.8
million.
Conference Call and Webcast
Management will hold a conference call and
webcast for investors on the same day at 2:00 p.m. PT (5:00 p.m.
ET). The conference call access number for U.S. participants
is 877-830-2596, and the conference call access number for
participants outside the U.S. is +1 785-424-1745. The
conference ID number for both access numbers is 8100153.
Additionally, interested parties can listen to a live webcast of
the call from the "Investor Relations" section of GSV Capital's
website at http://investors.gsvcap.com/. An archived replay
of the webcast will also be available for 12 months following the
live presentation.
A replay of the conference call may be accessed
until 5:00 p.m. PT (8:00 p.m. ET) on November 14, 2018 by
dialing 888-203-1112 (U.S.) or +1 719-457-0820
(International) and using conference ID number 8100153.
About GSV Capital
Corp.
GSV Capital Corp. (GSVC) is a publicly traded
investment fund that seeks to invest in high-growth, venture-backed
private companies. Led by industry veteran Michael Moe and CEO Mark
Klein, the fund seeks to create a portfolio of high-growth emerging
private companies via a repeatable and disciplined investment
approach, as well as to provide investors with access to such
companies through its publicly traded common stock. GSV Capital is
headquartered in Woodside, CA. www.gsvcap.com
Follow GSV Capital on Twitter: @gsvcap
Forward-Looking Statements
Statements included herein may constitute
“forward-looking statements,” which relate to future events or our
future performance or financial condition. These statements are not
guarantees of our future performance, condition or results of
operations and involve a number of risks and uncertainties. Actual
results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those
described from time to time in our filings with the SEC. GSV
Capital Corp. undertakes no duty to update any forward-looking
statements made herein, unless required to do so by law.
Contact
GSV Capital Corp.(650) 235-4769IR@gsvam.com
GSV CAPITAL CORP. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
ASSETS AND LIABILITIES (UNAUDITED)
|
|
September 30,
2018 |
|
December 31,
2017 |
|
ASSETS |
|
|
|
|
Investments at fair value: |
|
|
|
| Non-controlled/non-affiliate investments (cost of
$102,192,243 and $137,526,726, respectively) |
$ |
181,222,034 |
|
|
$ |
179,908,234 |
|
| Non-controlled/affiliate investments (cost of
$42,226,859 and $41,886,312, respectively) |
5,834,265 |
|
|
16,473,098 |
|
| Controlled investments (cost of $22,616,441 and
$23,161,314, respectively) |
30,134,871 |
|
|
24,207,161 |
|
| Total Portfolio Investments |
217,191,170 |
|
|
220,588,493 |
|
| Investments in U.S. Treasury bills (cost of
$99,967,958 and $99,985,833, respectively) |
99,983,000 |
|
|
99,994,000 |
|
| Total Investments (cost of $267,003,501 and
$302,560,185, respectively) |
317,174,170 |
|
|
320,582,493 |
|
|
Cash |
36,623,050 |
|
|
59,838,600 |
|
|
Due from controlled investments |
— |
|
|
840 |
|
|
Escrow proceeds receivable |
2,642,281 |
|
|
603,456 |
|
|
Interest and dividends receivable |
310,683 |
|
|
35,141 |
|
|
Prepaid expenses and other assets |
398,184 |
|
|
208,983 |
|
|
Deferred financing costs |
215,048 |
|
|
413,023 |
|
| Total Assets |
357,363,416 |
|
|
381,682,536 |
|
|
LIABILITIES |
|
|
|
|
Due to GSV Asset Management(1) |
87 |
|
|
231,697 |
|
|
Accounts payable and accrued expenses |
551,243 |
|
|
458,203 |
|
|
Accrued incentive fees, net of waiver of incentive fees(1) |
9,142,024 |
|
|
9,278,085 |
|
|
Accrued management fees, net of waiver of management fees(1) |
314,338 |
|
|
424,447 |
|
|
Accrued interest payable |
— |
|
|
1,056,563 |
|
|
Payable for securities purchased |
89,577,376 |
|
|
89,485,825 |
|
|
Deferred tax liability |
6,033,512 |
|
|
7,602,301 |
|
|
5.25% Convertible Senior Notes due September 15, 2018(2) |
— |
|
|
68,382,549 |
|
|
4.75% Convertible Senior Notes due March 28, 2023(2) |
38,341,472 |
|
|
— |
|
| Total Liabilities |
143,960,052 |
|
|
176,919,670 |
|
|
|
|
|
|
|
Net Assets |
$ |
213,403,364 |
|
|
$ |
204,762,866 |
|
|
NET ASSETS |
|
|
|
|
Common stock, par value $0.01 per share (100,000,000 authorized;
20,174,955 and 21,246,345 issued and outstanding,
respectively) |
$ |
201,749 |
|
|
$ |
212,463 |
|
|
Paid-in capital in excess of par |
195,110,116 |
|
|
202,584,012 |
|
|
Accumulated net investment loss |
(17,911,239 |
) |
|
(8,593,717 |
) |
|
Accumulated net realized gains/(losses) on investments |
(7,790,909 |
) |
|
140,100 |
|
|
Accumulated net unrealized appreciation of investments |
43,793,648 |
|
|
10,420,008 |
|
| Net Assets |
$ |
213,403,364 |
|
|
$ |
204,762,866 |
|
| Net Asset Value Per Share |
$ |
10.58 |
|
|
$ |
9.64 |
|
__________________________________
| (1) |
This
balance references a related-party transaction. |
| (2) |
As of
September 30, 2018 and December 31, 2017, the 5.25%
Convertible Senior Notes due September 15, 2018 had a face value of
$0 and $69,000,000, respectively. As of September 30,
2018 and December 31, 2017, the 4.75% Convertible Senior Notes
due March 28, 2023 had a face value of $40,000,000 and $0,
respectively. |
GSV CAPITAL CORP. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)
| |
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
INVESTMENT INCOME |
|
|
|
|
|
|
|
|
Non-controlled/non-affiliate investments: |
|
|
|
|
|
|
|
| Interest income |
$ |
164,310 |
|
|
$ |
(21,447 |
) |
|
$ |
174,922 |
|
|
$ |
(4,640 |
) |
| Other income |
— |
|
|
— |
|
|
— |
|
|
73,096 |
|
|
Non-controlled/affiliate investments: |
|
|
|
|
|
|
|
| Interest income |
65,790 |
|
|
(48,398 |
) |
|
521,685 |
|
|
143,974 |
|
|
Controlled investments: |
|
|
|
|
|
|
|
| Interest income |
16,252 |
|
|
69,757 |
|
|
41,153 |
|
|
196,534 |
|
| Dividend income |
— |
|
|
175,000 |
|
|
350,000 |
|
|
475,000 |
|
| Total Investment Income |
246,352 |
|
|
174,912 |
|
|
1,087,760 |
|
|
883,964 |
|
|
OPERATING EXPENSES |
|
|
|
|
|
|
|
|
Management fees(1) |
1,345,090 |
|
|
1,397,332 |
|
|
3,954,732 |
|
|
4,210,932 |
|
|
Incentive fees(1) |
804,520 |
|
|
3,334,052 |
|
|
4,863,939 |
|
|
7,482,185 |
|
|
Costs incurred under Administration Agreement(1) |
355,599 |
|
|
472,413 |
|
|
1,176,857 |
|
|
1,453,007 |
|
|
Directors’ fees |
86,250 |
|
|
86,250 |
|
|
258,750 |
|
|
242,230 |
|
|
Professional fees |
552,179 |
|
|
353,933 |
|
|
1,218,875 |
|
|
1,318,931 |
|
|
Interest expense |
1,311,534 |
|
|
1,207,548 |
|
|
3,925,292 |
|
|
3,489,381 |
|
|
Income tax expense |
(6,235 |
) |
|
4,889 |
|
|
142,264 |
|
|
51,379 |
|
|
Other expenses |
107,688 |
|
|
119,122 |
|
|
756,994 |
|
|
479,419 |
|
| Total Operating Expenses |
4,556,625 |
|
|
6,975,539 |
|
|
16,297,703 |
|
|
18,727,464 |
|
| Management fee waiver(1) |
(402,074 |
) |
|
(174,666 |
) |
|
(892,421 |
) |
|
(526,366 |
) |
| Incentive fee waiver(1) |
— |
|
|
— |
|
|
(5,000,000 |
) |
|
— |
|
| Total operating expenses, net of waiver of
management and incentive fees |
4,154,551 |
|
|
6,800,873 |
|
|
10,405,282 |
|
|
18,201,098 |
|
| Net Investment Loss |
(3,908,199 |
) |
|
(6,625,961 |
) |
|
(9,317,522 |
) |
|
(17,317,134 |
) |
|
Realized Gains/(Losses) on Investments: |
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated investments |
(10,119,771 |
) |
|
1,033,577 |
|
|
(7,532,483 |
) |
|
(21,748,173 |
) |
|
Controlled investments |
— |
|
|
— |
|
|
(680 |
) |
|
(2,578,909 |
) |
| Net Realized Gains/(Losses) on
Investments |
(10,119,771 |
) |
|
1,033,577 |
|
|
(7,533,163 |
) |
|
(24,327,082 |
) |
| Realized loss on partial repurchase of 5.25%
Convertible Senior Notes due 2018 |
— |
|
|
— |
|
|
(397,846 |
) |
|
— |
|
|
Change in Unrealized Appreciation/(Depreciation) of
Investments: |
|
|
|
|
|
|
|
|
Non-controlled/non-affiliated investments |
16,245,474 |
|
|
20,367,064 |
|
|
36,655,159 |
|
|
65,931,446 |
|
|
Non-controlled/affiliate investments |
(2,350,413 |
) |
|
(9,822,081 |
) |
|
(10,979,378 |
) |
|
(10,082,924 |
) |
|
Controlled investments |
247,314 |
|
|
5,091,700 |
|
|
6,472,584 |
|
|
5,820,954 |
|
| Net Change in Unrealized
Appreciation/(Depreciation) of Investments |
14,142,375 |
|
|
15,636,683 |
|
|
32,148,365 |
|
|
61,669,476 |
|
| Benefit from taxes on unrealized depreciation of
investments |
214,404 |
|
|
26,705 |
|
|
1,225,275 |
|
|
26,705 |
|
| Net Increase in Net Assets Resulting from
Operations |
$ |
328,810 |
|
|
$ |
10,071,004 |
|
|
$ |
16,125,108 |
|
|
$ |
20,051,965 |
|
|
Net Increase in Net Assets Resulting from Operations per
Common Share: |
|
|
|
|
|
|
|
| Basic |
$ |
0.02 |
|
|
$ |
0.46 |
|
|
$ |
0.77 |
|
|
$ |
0.91 |
|
| Diluted(2) |
$ |
0.02 |
|
|
$ |
0.40 |
|
|
$ |
0.72 |
|
|
$ |
0.84 |
|
|
Weighted-Average Common Shares Outstanding |
|
|
|
|
|
|
|
| Basic |
20,462,626 |
|
|
22,000,571 |
|
|
20,858,192 |
|
|
22,120,198 |
|
| Diluted(2) |
20,462,626 |
|
|
27,752,386 |
|
|
27,728,434 |
|
|
27,872,013 |
|
____________________________________
| (1) |
This balance references a
related-party transaction. |
| (2) |
For the three months ended
September 30, 2018, 7,173,218 potentially dilutive common shares
were excluded from the weighted-average common shares outstanding
for diluted net increase in net assets resulting from operations
per common share because the effect of these shares would have been
anti-dilutive. For the nine months ended September 30, 2018
and the three and nine months ended September 30, 2017, 0
potentially dilutive common shares were excluded from the
weighted-average common shares outstanding for diluted net increase
in net assets resulting from operations per common share. |
GSV CAPITAL CORP. AND
SUBSIDIARIESFINANCIAL HIGHLIGHTS
(UNAUDITED)
|
|
|
Three Months Ended September
30, |
|
Nine Months Ended September
30, |
|
Per Basic Share Data |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Net asset value at beginning of period |
|
$ |
10.46 |
|
|
$ |
9.11 |
|
|
$ |
9.64 |
|
|
$ |
8.66 |
|
| Net investment loss(1) |
|
(0.19 |
) |
|
(0.30 |
) |
|
(0.45 |
) |
|
(0.78 |
) |
| Net realized gain/(loss) on investments(1) |
|
(0.49 |
) |
|
0.05 |
|
|
(0.36 |
) |
|
(1.10 |
) |
| Realized loss on partial repurchase of 5.25%
Convertible Senior Notes due 2018(1) |
|
— |
|
|
— |
|
|
(0.02 |
) |
|
— |
|
| Net change in unrealized appreciation of
investments(1) |
|
0.69 |
|
|
0.71 |
|
|
1.54 |
|
|
2.79 |
|
| Benefit from taxes on unrealized depreciation of
investments(1) |
|
0.01 |
|
|
— |
|
|
0.06 |
|
|
— |
|
| Repurchase of common stock(1) |
|
0.10 |
|
|
0.12 |
|
|
0.17 |
|
|
0.12 |
|
|
Net asset value at end of period |
|
$ |
10.58 |
|
|
$ |
9.69 |
|
|
$ |
10.58 |
|
|
$ |
9.69 |
|
|
Per share market value at end of period |
|
$ |
6.91 |
|
|
$ |
5.41 |
|
|
$ |
6.91 |
|
|
$ |
5.41 |
|
|
Total return based on market value(2) |
|
0.73 |
% |
|
24.65 |
% |
|
26.79 |
% |
|
7.55 |
% |
|
Total return based on net asset value(2) |
|
1.15 |
% |
|
6.37 |
% |
|
9.75 |
% |
|
11.89 |
% |
|
Shares outstanding at end of period |
|
20,174,955 |
|
|
21,606,894 |
|
|
20,174,955 |
|
|
21,606,894 |
|
|
Ratios/Supplemental Data: |
|
|
|
|
|
|
|
|
|
Net assets at end of period |
|
$ |
213,403,364 |
|
|
$ |
209,379,965 |
|
|
$ |
213,403,364 |
|
|
$ |
209,379,965 |
|
|
Average net assets |
|
$ |
214,704,044 |
|
|
$ |
201,557,182 |
|
|
$ |
210,108,076 |
|
|
$ |
196,478,030 |
|
|
Ratio of gross operating expenses to average net assets(3) |
|
8.51 |
% |
|
13.73 |
% |
|
10.18 |
% |
|
12.74 |
% |
|
Ratio of incentive fee waiver to average net assets(3) |
|
— |
% |
|
— |
% |
|
(2.38 |
)% |
|
— |
% |
|
Ratio of management fee waiver to average net assets(3) |
|
(0.19 |
)% |
|
(0.34 |
)% |
|
(0.42 |
)% |
|
(0.36 |
)% |
|
Ratio of net operating expenses to average net assets(3) |
|
8.32 |
% |
|
13.34 |
% |
|
7.38 |
% |
|
12.36 |
% |
|
Ratio of net investment loss to average net assets(3) |
|
(7.30 |
)% |
|
(13.04 |
)% |
|
(5.95 |
)% |
|
(11.78 |
)% |
|
Portfolio Turnover Ratio |
|
2.98 |
% |
|
— |
% |
|
3.08 |
% |
|
— |
% |
_______________________________
| (1) |
Based on
weighted-average number of shares outstanding for the relevant
period. |
| (2) |
Total
return based on market value is based on the change in market price
per share between the opening and ending market values per share in
the year. Total return based on net asset value is based upon the
change in net asset value per share between the opening and ending
net asset values per share. |
| (3) |
Financial Highlights for periods of less than one year are
annualized and the ratios of operating expenses to average net
assets and net investment loss to average net assets are adjusted
accordingly. Non-recurring expenses, including the $5.0 million
accrued incentive fee forfeiture pursuant to the Waiver Agreement,
are not annualized. For the three and nine months ended September
30, 2018, the Company excluded $0 and $352,667 of non-recurring
expenses, respectively and did not annualize the incentive fee
waiver. For the three and nine months ended September 30, 2017, the
Company did not incur any non-recurring expenses. Because the
ratios are calculated for the Company’s common stock taken as a
whole, an individual investor’s ratios may vary from these
ratios. |
GSV Capital (NASDAQ:GSVC)
Historical Stock Chart
From Mar 2024 to Apr 2024
GSV Capital (NASDAQ:GSVC)
Historical Stock Chart
From Apr 2023 to Apr 2024
