Gladstone Investment Corporation Reports Financial Results for Its Third Quarter Ended December 31, 2015
February 03 2016 - 4:32PM
Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company”)
today announced earnings for its third quarter ended December 31,
2015. Please read the Company’s Quarterly Report on 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 31,2015 |
September
30,2015 |
Change |
%Change |
For the Quarter
Ended: |
|
|
|
|
|
|
|
|
|
Total investment income |
|
$ |
12,068 |
|
$ |
13,740 |
|
|
$ |
(1,672 |
) |
(12.2 |
)% |
Total expenses, net |
|
(7,437 |
) |
(7,717 |
) |
280 |
|
(3.6 |
) |
Net investment income |
|
4,631 |
|
6,023 |
|
(1,392 |
) |
(23.1 |
) |
Net investment income percommon
share |
|
0.15 |
|
0.20 |
|
(0.05 |
) |
(25.0 |
) |
Cash distribution per common
share |
|
0.19 |
|
0.19 |
|
— |
|
— |
|
Net realized loss |
|
(2,076 |
) |
(2,740 |
) |
664 |
|
(24.2 |
) |
Net unrealized depreciation |
|
(8,768 |
) |
(3,393 |
) |
(5,375 |
) |
158.4 |
|
Net decrease in net assets
resulting from operations |
|
(6,213 |
) |
(110 |
) |
(6,103 |
) |
NM |
|
Weighted average yield on
interest-bearing investments |
|
12.6 |
% |
12.7 |
% |
(0.1 |
)% |
(0.8 |
) |
Total dollars invested |
|
$ |
20,276 |
|
$ |
22,719 |
|
|
$ |
(2,443 |
) |
(10.8 |
) |
Total dollars repaid |
|
28,476 |
|
7,194 |
|
21,282 |
|
295.8 |
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
|
|
|
|
|
|
Total investments, at fair
value |
|
$ |
471,702 |
|
$ |
490,635 |
|
$ |
(18,933 |
) |
(3.9 |
)% |
Fair value, as a percentage of
cost |
|
90.7 |
% |
92.6 |
% |
(1.9 |
)% |
(2.1 |
) |
Net assets |
|
$ |
262,080 |
|
$ |
273,968 |
|
$ |
(11,888 |
) |
(4.3 |
) |
Net asset value per common
share |
|
8.66 |
|
9.05 |
|
(0.39 |
) |
(4.3 |
) |
Number of portfolio companies |
|
36 |
|
35 |
|
1 |
|
2.9 |
|
NM=Not
Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Highlights for the Quarter: During the
quarter ended December 31, 2015, the following significant events
occurred:
- Portfolio Activity:
- Invested $19.0 million through a combination of secured first
lien debt and preferred equity in one new portfolio company.
- Exited one investment, which resulted in the full repayment of
debt principal of $9.5 million; dividend and other income of $0.3
million and a realized gain of $17.0 million.
- Restructured two investments, which resulted in the conversion
of debt with an aggregate cost basis of $19.8 million into
preferred equity with a new aggregate cost basis and fair value of
$0.4 million. We also exercised existing common stock
warrants held in one of the restructured investments for an
exercise price of $0.2 million. As a result of these
transactions, we recognized an aggregate realized loss of $19.1
million.
- Recurring Distributions: Paid monthly
cash distributions to common and preferred stockholders for each of
October, November, and December 2015. The Company paid
$0.0625 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”); $0.140625 per share, per
month for the Company’s 6.75% Series B Cumulative Term Preferred
Stock (“Series B Term Preferred Stock”); and $0.135417 per share,
per month for the Company’s 6.50% Series C Cumulative Term
Preferred Stock (“Series C Term Preferred Stock”).
Third Quarter Results:
Net investment income for the quarters ended December 31, 2015 and
September 30, 2015, was $4.6 million, or $0.15 per share, and $6.0
million, or $0.20 per share, respectively, a decrease of
23.1%. The decrease in net investment income for the quarter
ended December 31, 2015, as compared to the prior quarter, was
primarily due to a $1.1 million decrease in other income. This
decrease was partially offset by a $0.3 million decrease in net
expenses, primarily as a result of a lower incentive fee, due to
the same reason.
Net asset value per share for the quarter ended December 31,
2015 decreased to $8.66, as compared to $9.05 as of September 30,
2015. The quarter over quarter decrease was primarily due to
a $2.1 million net realized loss during the quarter, which was
primarily a result of realized losses of $19.1 million from the
restructurings of two portfolio companies, partially offset by a
realized gain of $17.0 million on the sale of one portfolio company
during the quarter, as well as $8.8 million in net unrealized
depreciation on investments recorded during the period.
Subsequent Events: After
December 31, 2015, the following significant event occurred:
- Regular Distributions and Dividends
Declared: On January 12, 2016, our Board of
Directors declared the following monthly cash distributions and
dividends:
|
Record Date |
|
Payment Date |
|
Distribution per Share of Common
Stock |
|
Dividend per Share of Series A Term Preferred
Stock |
|
Dividend per Share ofSeries B
Term Preferred Stock |
|
Dividend per Share of
Series C Term Preferred Stock |
January 22, 2016 |
|
February 2, 2016 |
|
$ |
0.0625 |
|
$ |
0.1484375 |
|
$ |
0.140625 |
|
$ |
0.135417 |
February 18, 2016 |
|
February 29, 2016 |
|
0.0625 |
|
0.1484375 |
|
0.140625 |
|
0.135417 |
March
21, 2016 |
|
March
31, 2016 |
|
0.0625 |
|
0.1484375 |
|
0.140625 |
|
0.135417 |
Total for the Quarter: |
|
$ |
0.1875 |
|
$ |
0.4453125 |
|
$ |
0.421875 |
|
$ |
0.406251 |
|
Conference Call: The Company will hold
its earnings release conference call on Thursday, February 4, 2016,
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 4, 2016. To hear the replay, please
dial (855) 859-2056 and use the playback conference number
61212829. 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 4, 2016.
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 127 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.
To obtain a paper copy of our Quarterly Report on 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 period ended
December 31, 2015, including the notes to the consolidated
financial statements contained therein.
Investor Relations Inquiries: Please visit www.gladstone.com or +1-703-287-5893.
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