Gladstone Investment Corporation Reports Financial Results for the Fourth Quarter and Year Ended March 31, 2014
May 13 2014 - 5:16PM
Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company")
today announced earnings for its fourth quarter and year ended
March 31, 2014. Please read the Company's Form 10-K filed today
with the U.S. Securities and Exchange Commission (the "SEC"), which
can be retrieved from the SEC's website at www.sec.gov or from the
Company's website at www.gladstoneinvestment.com.
Summary Information: (dollars in thousands,
except per share data):
|
March 31, |
December
31, |
|
|
2014 |
2013 |
Change |
% Change |
For the Quarter Ended: |
|
|
|
|
Total investment income |
$ 8,811 |
$ 8,696 |
$ 115 |
1.3% |
Total expenses |
(4,167) |
(4,294) |
(127) |
(3.0) |
Net investment income |
4,644 |
4,402 |
242 |
5.5 |
Net investment income per common
share |
0.18 |
0.17 |
0.01 |
5.9 |
Cash distribution per common share |
0.18 |
0.23 |
(0.05) |
(21.7) |
Total realized loss |
(3,448) |
(13,144) |
9,696 |
73.8 |
Total unrealized depreciation |
(259) |
(1,944) |
1,685 |
86.7 |
Total unrealized depreciation excluding
reversal of previously-recorded depreciation upon realization |
(3,237) |
(15,462) |
12,225 |
79.1 |
Net increase (decrease) in net assets
resulting from operations |
937 |
(10,686) |
11,623 |
NM |
Weighted average yield on
interest-bearing investments |
12.6% |
12.7% |
(0.1)% |
(0.8) |
Total dollars invested |
$ 32,096 |
$ 44,172 |
$ (12,076) |
(27.3) |
Total dollars repaid |
5,194 |
24,434 |
(19,240) |
(78.7) |
|
|
|
|
|
|
|
|
|
|
As of: |
|
|
|
|
Total investments at fair
value |
$ 314,393 |
$ 290,727 |
$ 23,666 |
8.1% |
Fair value as a percent of cost |
82.0% |
80.7% |
1.3% |
1.6 |
Total net assets |
$ 220,837 |
$ 224,665 |
(3,828) |
(1.7) |
Net asset value per common share |
8.34 |
8.49 |
(0.15) |
(1.8) |
Asset coverage ratio |
298% |
336% |
(38)% |
(11.3) |
Number of portfolio companies |
29 |
26 |
3 |
11.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
March 31, |
|
|
For the Year
Ended: |
2014 |
2013 |
Change |
% Change |
Total investment income |
$ 36,264 |
$ 30,538 |
$ 5,726 |
18.8% |
Total expenses |
(16,957) |
(14,050) |
2,907 |
20.7 |
Net investment income |
19,307 |
16,488 |
2,819 |
17.1 |
Net investment income per common
share |
0.73 |
0.68 |
0.05 |
7.4 |
Cash distribution per common share |
0.71 |
0.60 |
0.11 |
18.3 |
Total realized gain |
8,212 |
802 |
7,410 |
923.9 |
Total unrealized depreciation |
(28,848) |
(11) |
(28,837) |
NM |
Total unrealized depreciation excluding
reversal of previously-recorded (depreciation) appreciation upon
realization |
(28,058) |
(11) |
(28,047) |
NM |
|
|
|
|
|
Net (decrease) increase in net assets
resulting from operations |
(1,329) |
17,279 |
(18,608) |
NM |
Weighted average yield on
interest-bearing investments |
12.6 |
12.5 |
0.1 |
0.8 |
Total dollars invested |
$ 132,291 |
$ 87,607 |
$ 44,684 |
51.0 |
Total dollars repaid |
51,828 |
28,424 |
23,404 |
82.3 |
|
|
|
|
|
|
|
|
|
|
As of: |
|
|
|
|
Total investments at fair
value |
$ 314,393 |
$ 286,482 |
$ 27,911 |
9.7 |
Fair value as a percent of cost |
82.0% |
87.8% |
(5.8)% |
(6.6) |
Total net assets |
$ 220,837 |
$ 240,963 |
$ (20,126) |
(8.4) |
Net asset value per common share |
8.34 |
9.10 |
(0.76) |
(8.4) |
Asset coverage ratio |
298% |
272% |
26 |
9.6 |
Number of portfolio companies |
29 |
21 |
8 |
38.1 |
|
|
|
|
|
NM=Not Meaningful |
|
|
|
|
Highlights for the Quarter: During the
quarter ended March 31, 2014, the following significant events
occurred:
- Portfolio Activity: In February, the Company
invested $13.1 million and $15.7 million, in a combination of debt
and equity, in two new portfolio companies, Head Country, Inc. and
Edge Adhesives Holdings, Inc. ("Edge"), respectively. Gladstone
Capital Corporation, an affiliate of the Company, participated as a
co-investor in Edge providing $11.1 million of debt and equity
financing at the same price and terms as the Company's investment.
In addition, the Company disbursed $3.4 million to existing
portfolio companies and received $5.2 million in repayments.
- Recurring Distributions: The Company paid
monthly cash distributions for each of January, February and March
2014 to common stockholders of $0.06 per common share and to
preferred stockholders of $0.1484375 per preferred share for the
Company's 7.125% Series A Cumulative Term Preferred Stock.
Fourth Quarter 2014
Results: Net Investment Income for
the quarters ended March 31, 2014 and December 31, 2013 was $4.6
million, or $0.18 per share, and $4.4 million, or $0.17 per share,
respectively, an increase in Net Investment Income of
5.5%. The increase in Net Investment Income for the quarter
ended March 31, 2014, as compared to the prior quarter, was
primarily due to the $0.4 million increase in interest income,
primarily due to an increase in the weighted average principal
balance of the Company's interest-bearing investments of $18.4
million as compared to the prior quarter, and a decrease in other
expenses of $0.5 million, primarily due to an excise tax recorded
in the prior quarter. This was partially offset by a decrease
in other income by $0.3 million and an increase in interest expense
by $0.2 million, due to an increase in borrowings to fund the
Company's two new deals. Net Increase (Decrease) in Net Assets
Resulting from Operations for the quarters ended March 31, 2014 and
December 31, 2013 was $0.9 million, or $0.03 per share, and $(10.7)
million, or $(0.40) per share, respectively. The quarter over
quarter change was primarily due to a larger amount of unrealized
depreciation in the prior quarter compared with the quarter ended
March 31, 2014.
Fiscal Year End Results: Net Investment
Income for the fiscal years ended March 31, 2014 and 2013 was $19.3
million, or $0.73 per share, and $16.5 million, or $0.68 per share,
respectively, an increase in Net Investment Income of
17.1%. Net Investment Income increased primarily due to an
increase in interest income on the Company's interest-bearing
investments, offset partially by increases in interest expense,
base management and incentive fee expense compared to the prior
year. Interest income on debt investments increased $5.7
million, or 22.8%, primarily due to an increase in the weighted
average principal balance of the Company's interest-bearing
investments of $43.4 million for the year ended March 31, 2014,
compared to the prior year.
Partially offsetting the increase in investment income was the
increase in interest expense due to the increase in the weighted
average outstanding balance of $19.1 million, compared to the prior
year. Additionally offsetting the increased investment income
was an increase in the base management fee resulting from a larger
portfolio and an increase in the incentive fee expense, resulting
from an increase in the pre-incentive fee income.
Net (Decrease) Increase in Net Assets Resulting from Operations
for the fiscal years ended March 31, 2014 and 2013 was $(1.3)
million, or $(0.05) per share, and $17.3 million, or $0.71 per
share, respectively. The year-over-year change is primarily
due to larger amount of net unrealized depreciation in the current
year, offset partially by the increase in Net Investment Income and
realized gains in the current year as compared to the prior
year.
Comments from the Company's President, Dave
Dullum: "The past year was exciting for the Company's
management and rewarding for shareholders. We increased our monthly
dividend 20% per share, recognized a significant capital gain on
the sale of one of our portfolio companies and added nine new
portfolio investments through our buyout activity. We look forward
to continued growth knowing there will be numerous challenges in
the next year."
Distributions Declared: Declared the
following monthly cash distributions to stockholders:
|
|
|
|
Record Date |
Payment Date |
Distribution per Common
Share |
Distribution per Term
Preferred Share |
April 21, 2014 |
April 30, 2014 |
$ 0.06 |
$ 0.1484375 |
May 20, 2014 |
May 30, 2014 |
0.06 |
0.1484375 |
June 19, 2014 |
June 30, 2014 |
0.06 |
0.1484375 |
|
Total for the Quarter |
$ 0.18 |
$ 0.4453125 |
Conference Call for Stockholders: The
Company will hold its earnings release conference call Wednesday,
May 14, 2014, at 8:30 a.m. EDT. Please call (855) 376-7516 and
use conference ID 24404190 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 June 14,
2014. To hear the replay, please dial (800) 585-8367 and use
conference number 24404190. 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 July 14, 2014.
About Gladstone Investment
Corporation: Gladstone Investment
Corporation is a publicly traded business development company that
seeks to make debt and equity investments in small and medium-sized
businesses in the United States in connection with acquisitions,
changes in control and recapitalizations. The Company has paid
107 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.
The Company undertakes no obligation to update the information
contained herein to reflect subsequently occurring events or
circumstances, except as required by applicable securities laws and
regulations. For a description of certain risks to which the
Company is or may be subject, please refer to the factors discussed
under the captions "Cautionary Statement Concerning Forward Looking
Statements" and "Risk Factors" included in the Company's filings
with the SEC (accessible at www.sec.gov).
To obtain a paper copy of the Form 10-K 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-K
for the year ended March 31, 2014, including the notes to the
consolidated financial statements contained therein.
CONTACT: Investor Relations Inquiries:
Please visit www.gladstone.com or +1-703-287-5893
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