Gladstone Investment Corporation Reports June 30, 2005 Financial Results
August 10 2005 - 5:03PM
PR Newswire (US)
MCLEAN, Va., Aug. 10 /PRNewswire-FirstCall/ -- Gladstone Investment
Corp. (NASDAQ:GAIN) (the "Company") today announced earnings for
the period June 22, 2005 (commencement of operations) to June 30,
2005. On June 22, 2005, the Company priced its initial public
offering and the stock began trading June 23, 2005 on NASDAQ under
the trading symbol "GAIN." On June 28, 2005, the Company closed the
sale of 14,400,000 shares in connection with the initial public
offering at an aggregate public offering price of $216.0 million,
reflecting a public offering price of $15.00 per share. On July 14,
2005, the underwriters exercised in full their option to purchase
an additional 2,160,000 shares of common stock. The exercise of the
over-allotment option brought the total number of shares sold in
the initial public offering to 16,560,000 and provided the Company
with an additional $30.1 million in net proceeds. Total net
proceeds received by the Company from the offering were
approximately $230.2 million after underwriting discounts and
estimated offering expenses. Total assets were $200,628,803 at June
30, 2005. Net asset value was $200,137,980 or $13.90 per actual
common share outstanding at June 30, 2005. The Company realized a
net increase in stockholders' equity resulting from operations of
$19,800 for the period June 22, 2005 (commencement of operations)
to June 30, 2005. The net increase in stockholders' equity from
operations per basic and diluted common share for the period June
22, 2005 (commencement of operations) to June 30, 2005 was $0.00.
The Company made no investments during the period June 22, 2005
(commencement of operations) to June 30, 2005. Subsequent to June
30, 2005, the Company invested in three loans for an aggregate
investment of $8.5 million. Results reported today for investment
income and operating expenses are not expected to be indicative of
future operating performance. In particular, the Company expects
investment income to increase in future quarters, as compared to
the period June 22, 2005 (commencement of operations) to June 30,
2005, as a result of the investment of the net proceeds from the
initial public offering and as investments are made in portfolio
company securities that the Company expects will yield a greater
return than the cash and cash equivalents in which the vast
majority of the net proceeds of our initial public offering are
currently invested. "We have been pleased with the inflow of
opportunities since the fund was launched in June and anticipate
that the investment income will grow as the funds are deployed,"
said Chip Stelljes, President and Chief Investment Officer. On July
7, 2005, the Company announced that the Board of Directors declared
its initial monthly cash dividends of $0.02 per common share for
each of the months of July, August and September of 2005. The
dividend declaration in July was the first for Gladstone Investment
since it began trading. Gladstone Investment will host a conference
call at 9:30 am EDT, August 11, 2005. To enter the call please dial
888-413-5357 and use the confirmation code 745631. An operator will
monitor the call and set a queue for questions. To hear the replay
of the call please dial 888-266-2081 and use the confirmation code
745631. The live audio broadcast of Gladstone Investment's earnings
conference call will be available online at
http://www.gladstoneinvestment.com/ and
http://www.vcall.com/vcall/index.asp , with an online replay to
follow shortly after the call. Gladstone Investment Corporation is
an investment company that seeks to make debt and equity
investments in small and mid-sized private businesses in the U.S.
in connection with acquisitions, changes in control and
recapitalizations. For more information please visit our website at
http://www.gladstoneinvestment.com/. For further information
contact our Investor Relations Manager, Kelly Sargent at
703-287-5835. This press release may include statements that may
constitute "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, including
statements with regard to the future performance of the Company.
Words such as "believes," "expects," "anticipates," "estimated,"
"approximately" "projects" and "future" or similar expressions are
intended to identify forward-looking statements. These
forward-looking statements inherently involve certain risks and
uncertainties, although they are based on the Company's current
plans that are believed to be reasonable as of the date of this
press release. Factors that may cause the Company's actual results,
levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance
or achievements expressed or implied by such forward-looking
statements include, among others, those factors listed under the
caption "Risk factors" of the Company's prospectus dated June 22,
2005, as filed with the Securities and Exchange Commission on June
23, 2005. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. GLADSTONE INVESTMENT
CORPORATION STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) June
30, 2005 ASSETS Cash and cash equivalents $200,611,011 Prepaid
assets 17,792 Deferred offering costs - TOTAL ASSETS $200,628,803
LIABILITIES Accounts payable $128,029 Administration fee payable to
Gladstone Administration 27,083 Loan payable to affiliate - Accrued
offering costs and expenses 335,711 Total Liabilities 490,823 NET
ASSETS $200,137,980 ANALYSIS OF NET ASSETS: Common stock, $0.001
par value, 100,000,000 shares authorized and 14,400,100 shares
issued and outstanding $14,400 Capital in excess of par value
200,103,780 Undistributed net investment income 19,800 Total Net
Assets $200,137,980 GLADSTONE INVESTMENT CORPORATION STATEMENT OF
OPERATIONS For the Period June 22, 2005 (Commencement of
Operations) to June 30, 2005 (UNAUDITED) INVESTMENT INCOME Interest
income - cash and cash equivalents $48,198 EXPENSES Administration
fee to Gladstone Administration 27,083 Interest 378 Stockholder
related costs 635 General and administrative 302 Expenses 28,398
NET INVESTMENT INCOME 19,800 NET INCREASE IN STOCKHOLDERS' EQUITY
RESULTING FROM OPERATIONS $19,800 NET INCREASE IN STOCKHOLDERS'
EQUITY RESULTING FROM OPERATIONS PER COMMON SHARE: Basic and
Diluted $- SHARES OF COMMON STOCK OUTSTANDING: Basic and Diluted
14,400,100 GLADSTONE INVESTMENT CORPORATION FINANCIAL HIGHLIGHTS
For the Period June 22, 2005 (Commencement of Operations) to June
30, 2005 (UNAUDITED) Per Share Data (1) Net proceeds from initial
public offering (2) $13.95 Offering costs (0.05) Income from
investment operations: Net investment income - Total from
investment operations - Distributions - Net asset value at end of
period $13.90 Per share market value at beginning of period $15.00
Per share market value at end of period 15.05 Total Return (3) (4)
0.33% Shares outstanding at end of period 14,400,100
Ratios/Supplemental Data Net assets at end of period $200,137,980
Average net assets (5) $200,137,980 Ratio of expenses to average
net assets-annualized 0.06% Ratio of net investment income to
average net assets-annualized 0.04% (1) Based on actual shares
outstanding. (2) Net of initial underwriting discount of $1.05 per
share. (3) Total return equals the increase of the ending market
value over the beginning market value divided by the monthly
beginning market value. (4) Amounts were not annualized. (5)
Average net assets calculated from June 22, 2005 (commencement of
operations) to June 30, 2005. DATASOURCE: Gladstone Investment
Corporation CONTACT: Kelly Sargent, Investor Relations Manager of
Gladstone Investment Corporation, +1-703-287-5835 Web site:
http://www.gladstoneinvestment.com/
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