Gladstone Investment Corporation Reports Financial Results for Its Fourth Quarter and Fiscal Year Ended March 31, 2015
May 20 2015 - 5:14PM
Gladstone Investment Corporation (Nasdaq:GAIN) (the "Company")
today announced earnings for its fourth quarter and fiscal year
ended March 31, 2015. Please read the Company's Annual Report on
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 (unaudited)):
|
March 31,
2015 |
December 31,
2014 |
Change |
% Change |
For the Quarter Ended: |
|
|
|
|
Total investment income |
$ 11,173 |
$ 11,562 |
$ (389) |
(3.4)% |
Total expenses |
(6,178) |
(5,723) |
(455) |
(8.0) |
Net investment income |
4,995 |
5,839 |
(844) |
(14.5) |
Net investment income per
common share |
0.19 |
0.22 |
(0.03) |
(13.6) |
Cash distribution per common
share(A) |
0.18 |
0.23 |
(0.05) |
(21.7) |
Net realized gain (loss) |
148 |
(209) |
357 |
NM |
Net unrealized
appreciation |
24,015 |
1,959 |
22,056 |
NM |
Net increase in net assets
resulting from operations |
29,158 |
7,589 |
21,569 |
NM |
Weighted average yield on
interest-bearing investments |
12.5% |
12.5% |
—% |
— |
Total dollars funded |
$ 53,573 |
$ 50,062 |
$ 3,511 |
7.0 |
Total dollars repaid |
5,680 |
4,777 |
903 |
18.9 |
|
|
|
|
|
As
of: |
|
|
|
|
Total investments, at fair
value |
$ 466,053 |
$ 394,145 |
$ 71,908 |
18.2% |
Fair value, as a percent of
cost |
92.2% |
86.2% |
6.0% |
7.0 |
Net assets |
$ 273,429 |
$ 226,272 |
$ 47,157 |
20.8 |
Net asset value per common
share |
9.18 |
8.55 |
0.63 |
7.4 |
Asset coverage ratio |
230% |
221% |
9 |
4.1 |
Number of portfolio
companies |
34 |
32 |
2 |
6.3 |
|
|
|
|
|
(A) Cash distributions per
common share during the quarter ended December 31, 2014 included a
special dividend of $0.05 per share. |
|
|
|
|
|
For the Year Ended: |
March 31,
2015 |
March 31,
2014 |
Change |
% Change |
Total investment income |
$ 41,643 |
$ 36,264 |
$ 5,379 |
14.8 |
Total expenses |
(21,746) |
(16,957) |
(4,789) |
28.2 |
Net investment income |
19,897 |
19,307 |
590 |
3.1 |
Net investment income per
common share |
0.75 |
0.73 |
0.02 |
2.7 |
Cash distribution per common
share |
0.77 |
0.71 |
0.06 |
8.5 |
Total realized (loss) gain |
(73) |
8,212 |
(8,285) |
NM |
Total unrealized appreciation
(depreciation) |
30,390 |
(28,848) |
59,238 |
NM |
Net increase (decrease) in net
assets resulting from operations |
50,214 |
(1,329) |
51,543 |
NM |
Weighted average yield on
interest-bearing investments |
12.6% |
12.6% |
—% |
— |
Total dollars invested |
$ 132,902 |
$ 132,203 |
$ 699 |
0.5 |
Total dollars repaid |
11,259 |
51,828 |
(40,569) |
NM |
|
|
|
|
|
As of: |
|
|
|
|
Total investments at fair
value |
$ 466,053 |
$ 314,393 |
$ 151,660 |
48.2% |
Fair value as a percent of
cost |
92.2% |
82.0% |
10.2% |
12.4 |
Total net assets |
$ 273,429 |
$ 220,837 |
$ 52,592 |
23.8 |
Net asset value per common
share |
9.18 |
8.34 |
0.84 |
10.1 |
Asset coverage ratio |
230% |
298% |
(68)% |
(22.8) |
Number of portfolio
companies |
34 |
29 |
5 |
17.2 |
|
|
|
|
|
NM=Not Meaningful
Highlights for the Quarter: During the
quarter ended March 31, 2015, the following significant events
occurred:
- Portfolio Activity: Invested $43.0 million,
through a combination of secured debt and equity, in two new
portfolio companies, and invested an additional $10.6 million into
existing portfolio companies, including one follow on investment
totaling $5.8 million.
- Common Stock Offering: Completed a public
offering in March 2015 of 3.3 million shares of common
stock. Gross proceeds totaled approximately $24.4 million and
net proceeds, after deducting underwriting discounts and offering
expenses borne by us, were $23.0 million.
- Recurring Distributions: Paid monthly
cash distributions to common and preferred stockholders for each of
January, February, and March 2015. 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 $0.140625 per share, per month for
the Company's 6.75% Series B Cumulative Term Preferred Stock
("Series B Term Preferred Stock").
Fourth Quarter
Results: Net investment income for
the quarters ended March 31, 2015 and December 31, 2014, was $5.0
million, or $0.19 per share, and $5.8 million, or $0.22 per share,
respectively, a decrease of 14.5%. The decrease in net
investment income for the quarter ended March 31, 2015, as compared
to the prior quarter, was partially due to lower other income
resulting from the receipt of $0.6 million of other income in the
current quarter as compared to $1.3 million dividend income the
Company received from one of its portfolio companies in the prior
quarter. The decrease was also due to an increase in the base
management fee and dividend expense on our mandatorily redeemable
preferred stock.
Net Asset Value per share for the quarter ended March 31, 2015
increased to $9.18, compared to $8.55, from the December 31, 2014
quarter. The quarter over quarter increase was primarily due
to a net increase of $24.0 million in net unrealized appreciation
on investments during the period resulting from an increase in
financial and operational performance of certain portfolio
companies.
Fiscal Year End Results: Net Investment
Income for the fiscal years ended March 31, 2015 and 2014 was $19.9
million, or $0.75 per share, and $19.3 million, or $0.73 per share,
respectively, an increase in Net Investment Income of
3.1%. Net Investment Income increased primarily due to an
increase in interest income on the Company's interest-bearing
investments in 2015, offset partially by increases in interest and
dividend expense, and base management and incentive fee expense
compared to the prior year. Interest income on debt
investments increased $6.2 million, or 20.4%, primarily due to an
increase in the weighted average principal balance of the Company's
interest-bearing investments of $50.5 million for the year ended
March 31, 2015, compared to the prior year.
Partially offsetting the growth in investment income, was the
increase in interest and dividend expense due to the higher
weighted average outstanding debt balance of $44.5 million,
compared to the prior year. Additionally, the
higher investment income was partially offset by 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 Asset Value per common share for the fiscal years ended
March 31, 2015 and 2014 was $9.18 per share and $8.34 per share,
respectively. The year-over-year increase is primarily due to
net unrealized appreciation in the current year, as described above
for the current quarter.
Subsequent Events: After March 31, 2015,
the following significant events occurred:
- Common Stock Offering: In April 2015, the
Company issued approximately 0.5 million of additional shares of
common stock at the public offering price of $7.40 per share to
cover over-allotments related to the March offering, which resulted
in additional gross proceeds of approximately $3.7 million and
additional net proceeds, after deducting underwriting discounts, of
approximately $3.5 million.
- Regular Distributions
Declared: Declared the following monthly cash
distributions to stockholders:
Declaration
Date |
Record Date |
Payment Date |
Distribution per Common
Share |
Distribution per Series A
Term Preferred Share |
Distribution per
Series B Term Preferred
Share |
April 14, 2015 |
April 24, 2015 |
May 5, 2015 |
$ 0.0625 |
$ 0.1484375 |
$ 0.140625 |
April 14, 2015 |
May 19, 2015 |
May 29, 2015 |
0.0625 |
0.1484375 |
0.140625 |
April 14, 2015 |
June 19, 2015 |
June 30, 2015 |
0.0625 |
0.1484375 |
0.140625 |
Total for the
Quarter: |
$ 0.1875 |
$ 0.4453125 |
$ 0.421875 |
- Preferred Stock Offering: In May 2015, we
completed a public offering of approximately 1.6 million shares of
our 6.50% Series C Term Preferred Stock due 2022 at a public
offering price of $25.00 per share. Gross proceeds totaled
approximately $40.3 million and net proceeds, after deducting
underwriting discounts and offering expenses borne by us, were
approximately $38.6 million. Our Board of Directors declared a
cash dividend for the combined months of May and June 2015,
prorated for days in May that the Series C Term Preferred Stock was
outstanding, of $0.221181 per share, payable on June 30, 2015.
Conference Call: The Company will hold its
earnings release conference call on Thursday, May 21, 2015, 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 June 21, 2015. To hear the replay, please
dial (855) 859-2056 and use conference number 17257306. 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 21,
2015.
About Gladstone Investment
Corporation: Gladstone Investment
Corporation is a publicly traded business development company that
seeks to make secured 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 118 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.
Forward-looking Statements: This press release
may contain "forward-looking statements." Statements other than
statements of historical facts included in this press release may
constitute forward-looking statements and are not guarantees of
future performance or results and involve a number of risks and
uncertainties. Actual results may differ materially from those
expressed or implied in the forward-looking statements as a result
of a number of factors, including those described from time to time
in the Company's filings with the SEC (accessible at
www.sec.gov). All forward-looking statements speak only as of
the date of this press release. 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.
To obtain a paper copy of our Annual Report on 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, 2015, 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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