Gladstone Investment Corporation Reports Financial Results for the First Quarter Ended June 30, 2014
July 28 2014 - 5:30PM
Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company")
today announced earnings for its first quarter ended June 30, 2014.
Please read the Company's Form 10-Q 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):
|
June 30,
2014 |
March 31,
2014 |
Change |
% Change |
For the Quarter Ended: |
|
|
|
|
Total investment income |
$ 9,837 |
$ 8,811 |
$ 1,026 |
11.6% |
Total expenses |
(4,978) |
(4,167) |
811 |
19.5 |
Net investment income |
4,859 |
4,644 |
215 |
4.6 |
Net investment income per common
share |
0.18 |
0.18 |
— |
— |
Cash distribution per common share |
0.18 |
0.18 |
— |
— |
Total realized loss |
— |
(3,448) |
3,448 |
100.0 |
Total unrealized appreciation
(depreciation) |
5,911 |
(259) |
6,710 |
NM |
Total unrealized depreciation excluding
reversal of previously-recorded depreciation upon realization |
5,911 |
(3,237) |
(9,148) |
NM |
Net increase in net assets resulting from
operations |
10,770 |
937 |
9,833 |
1,049.4 |
Weighted average yield on
interest-bearing investments |
12.6% |
12.6% |
— |
— |
Total dollars invested |
$ 2,039 |
$ 32,096 |
$ (30,057) |
(93.6) |
Total dollars repaid |
60 |
5,194 |
(5,134) |
(98.8) |
|
|
|
|
|
As of: |
|
|
|
|
Total investments at fair value |
$
321,832 |
$ 314,393 |
$ 7,439 |
2.4% |
Fair value as a percent of cost |
83.5% |
82.0% |
1.5% |
1.8 |
Total net assets |
$
226,841 |
$ 220,837 |
$ 6,004 |
2.7 |
Net asset value per common share |
8.57 |
8.34 |
0.23 |
2.8 |
Asset coverage ratio |
300% |
298% |
2% |
0.7 |
Number of portfolio companies |
28 |
29 |
(1) |
(3.4) |
|
|
|
|
|
NM=Not Meaningful |
|
|
|
|
Highlights for the Quarter: During the
quarter ended June 30, 2014, the following significant events
occurred:
- Credit Facility Extension and Interest Rate
Reduction: The Company extended its Credit Facility's
maturity date approximately fourteen months to June 26, 2017 and
decreased the interest rate margin from 3.75% to 3.25% per
annum.
- Recurring Distributions: The Company paid
monthly cash distributions to common and preferred stockholders for
each of April, May and June 2014. It paid $0.06 per common
share, per month and $0.1484375 per preferred share, per month for
the Company's 7.125% Series A Cumulative Term Preferred Stock.
First Quarter 2015
Results: Net investment income for
the quarters ended June 30, 2014 and March 31, 2014 was $4.9
million, or $0.18 per share, and $4.6 million, or $0.18 per share,
respectively, an increase of 4.6%. The increase in net
investment income for the quarter ended June 30, 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 $11.5 million as compared to the prior
quarter), and an increase in other income of $0.6 million
(primarily due to increased dividend income in the current
quarter). The investment income increase was partially offset
by an increase in total expenses of $0.8 million (primarily due to
a decrease in credits to fees of $0.3 million due to decreased
investment activity) and an increase in other expenses of $0.2
million (due to a tax refund in the prior quarter). Net
increase in net assets resulting from operations for the quarters
ended June 30, 2014 and March 31, 2014 was $10.8 million, or $0.41
million, $0.9 million, or $0.03 per share, respectively. The
quarter over quarter change was primarily due to a larger amount of
unrealized appreciation in the current quarter compared with the
quarter ended March 31, 2014.
Distributions Declared: Declared the
following monthly cash distributions to stockholders:
Record Date |
Payment Date |
Distribution per Common
Share |
Distribution per Term
Preferred Share |
July 25, 2014 |
August 5, 2014 |
$ 0.06 |
$
0.1484375 |
August 20, 2014 |
August 29, 2014 |
0.06 |
0.1484375 |
September 19, 2014 |
September 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 Tuesday,
July 29, 2014, at 8:30 a.m. EDT. 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 August 29, 2014. To hear the replay,
please dial (855) 859-2056 and use conference number
72405133. 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 September 29,
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
108 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-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 quarter ended June 30, 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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