Gladstone Investment Corporation Reports Financial Results for Its Third Quarter Ended December 31, 2014, Including 39% Incre...
February 04 2015 - 4:30PM
Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company")
today announced earnings for its third quarter ended December 31,
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 (unaudited)):
|
December 31, |
September 30, |
|
|
|
2014 |
2014 |
Change |
%
Change |
For the Quarter Ended: |
|
|
|
|
Total investment income |
$ 11,562 |
$ 9,071 |
$ 2,491 |
27.5% |
Total expenses |
(5,723) |
(4,867) |
856 |
17.6 |
Net investment income |
5,839 |
4,204 |
1,635 |
38.9 |
Net investment income per
common share |
0.22 |
0.16 |
0.06 |
37.5 |
Cash distribution per common
share |
0.23 |
0.18 |
0.05 |
27.8 |
Net realized loss |
(209) |
(12) |
197 |
NM |
Net unrealized appreciation
(depreciation) |
1,959 |
(1,495) |
3,454 |
NM |
|
|
|
|
|
Net increase in net assets
resulting from operations |
7,589 |
2,697 |
4,892 |
181.4 |
|
|
|
|
|
Weighted average yield on
interest-bearing investments |
12.5% |
12.6% |
(0.1)% |
(0.8) |
Total dollars funded |
$ 50,062 |
$ 27,306 |
$ 22,756 |
83.3 |
Total dollars repaid |
4,777 |
742 |
4,035 |
543.8 |
|
|
|
|
|
|
|
|
|
|
As of: |
|
|
|
|
Total investments, at fair
value |
$ 394,145 |
$ 346,901 |
$ 47,244 |
13.6% |
Fair value, as a percent of
cost |
86.2% |
84.2% |
2.0% |
2.4 |
Net assets |
$ 226,272 |
$ 224,773 |
$ 1,499 |
0.7 |
Net asset value per common
share |
8.55 |
8.49 |
0.06 |
0.7 |
Asset coverage ratio |
221% |
264% |
(43.0)% |
(16.3) |
Number of portfolio
companies |
32 |
30 |
2 |
6.7 |
|
|
|
|
|
NM=Not
Meaningful |
Highlights for the Quarter: During the
quarter ended December 31, 2014, the following significant events
occurred:
- Portfolio Activity: Invested $43.4 million,
through a combination of debt and equity, in two new portfolio
companies, and invested an additional $6.8 million into existing
portfolio companies.
- Preferred Equity Offering: Completed a public
offering in November 2014 of approximately 1.7 million shares of
6.75% Series B Cumulative Term Preferred Stock ("Series B Term
Preferred Stock") at a public offering price of $25.00 per
share. Gross proceeds totaled $41.4 million and net proceeds,
after deducting underwriting discounts and offering expenses borne
by us, were $39.7 million.
Recurring Distributions: Paid monthly cash
distributions to common and preferred stockholders for each of
October, November and December 2014. The Company paid $0.06
per common share, per month; $0.1484375 per share, per month for
the Company's 7.125% Series A Cumulative Term Preferred Stock
("Series A Term Preferred Stock"); and $0.2250 per share, in
aggregate, for the Series B Term Preferred Stock, which
distribution included the pro-rated month of November 2014 and the
full month of December 2014. The Company also paid a $0.05 per
common share special distribution in December 2014. This
represents the third calendar year in a row that we have paid a
special cash distribution to common stockholders.
Third Quarter 2015
Results: Net investment income for
the quarters ended December 31 and September 30, 2014, was $5.8
million, or $0.22 per share, and $4.2 million, or $0.16 per share,
respectively, an increase of 38.9%. The increase in net
investment income for the quarter ended December 31, 2014, as
compared to the prior quarter, was primarily due to the $1.3
million increase in other income, as the Company received a $1.3
million dividend from one of its portfolio companies in the current
quarter. Net increase in net assets resulting from operations
for the quarters ended December 31 and September 30, 2014, was $7.6
million, or $0.29 per share, and $2.7 million, or $0.10 per share,
respectively. The quarter over quarter increase was primarily
due to the change in fair value of the portfolio investments, as
the quarter ended December 31, 2014 experienced $2.0 million in net
unrealized appreciation, compared to $1.5 million in net unrealized
depreciation in the quarter ended September 30, 2014.
Subsequent Events: After December 31,
2014, the following significant events occurred:
- Regular and Distributions
Declared: Declared the following monthly cash
distributions to stockholders:
|
|
|
|
Distribution per |
Distribution per |
|
|
|
Distribution per |
Series A Term |
Series B Term |
Declaration
Date |
Record
Date |
Payment
Date |
Common
Share |
Preferred
Share |
Preferred
Share |
January 13, 2015 |
January 23, 2015 |
February 3, 2015 |
$ 0.06 |
$0.1484375 |
$0.140625 |
January 13, 2015 |
February 18, 2015 |
February 27, 2015 |
0.06 |
0.1484375 |
0.140625 |
January 13, 2015 |
March 20, 2015 |
March 31, 2015 |
0.06 |
0.1484375 |
0.140625 |
Total for the
Quarter: |
$ 0.18 |
$0.4453125 |
$0.421875 |
Conference Call for Stockholders: The
Company will hold its earnings release conference call on Thursday,
February 5, 2015, 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 March 5, 2015. To hear the replay, please
dial (855) 859-2056 and use conference number 17240982. 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 5,
2015.
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
115 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 December 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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