Gladstone Investment Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended March 31, 2016
May 17 2016 - 4:35PM
Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company”)
today announced earnings for its fourth quarter and fiscal year
ended March 31, 2016. 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,
2016 |
|
December
31, 2015 |
|
Change |
|
%
Change |
For the quarter ended: |
|
|
|
|
|
|
|
|
Total investment income |
|
$ |
12,441 |
|
|
$ |
12,068 |
|
|
$ |
373 |
|
|
3.1 |
% |
Total expenses, net |
|
|
(7,542 |
) |
|
|
(7,437 |
) |
|
|
(105 |
) |
|
1.4 |
|
Net investment income |
|
|
4,899 |
|
|
|
4,631 |
|
|
|
268 |
|
|
5.8 |
|
Net investment income per common
share |
|
|
0.16 |
|
|
|
0.15 |
|
|
|
0.01 |
|
|
5.8 |
|
Cash distribution per common
share |
|
|
0.19 |
|
|
|
0.19 |
|
|
|
— |
|
|
— |
|
Net realized gain (loss) |
|
|
18 |
|
|
|
(2,076 |
) |
|
|
2,094 |
|
|
NM |
|
Net unrealized appreciation
(depreciation) |
|
|
17,701 |
|
|
|
(8,768 |
) |
|
|
26,469 |
|
|
NM |
|
Net increase (decrease) in net
assets resulting from operations |
|
|
22,618 |
|
|
|
(6,213 |
) |
|
|
28,831 |
|
|
NM |
|
Weighted average yield on
interest-bearing investments |
|
|
12.7 |
% |
|
|
12.6 |
% |
|
|
0.1 |
% |
|
0.8 |
|
Total dollars invested |
|
$ |
1,575 |
|
|
$ |
20,276 |
|
|
$ |
(18,701 |
) |
|
(92.2 |
) |
Total dollars repaid and collected
from sales |
|
|
3,363 |
|
|
|
28,477 |
|
|
|
(25,114 |
) |
|
(88.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
|
|
|
|
|
|
|
Total investments, at fair
value |
|
$ |
487,656 |
|
|
$ |
471,702 |
|
|
$ |
15,954 |
|
|
3.4 |
% |
Fair value, as a percent of
cost |
|
|
94.1 |
% |
|
|
90.7 |
% |
|
|
3.4 |
% |
|
3.7 |
|
Net assets |
|
$ |
279,022 |
|
|
$ |
262,080 |
|
|
$ |
16,942 |
|
|
6.5 |
|
Net asset value per common
share |
|
|
9.22 |
|
|
|
8.66 |
|
|
|
0.56 |
|
|
6.5 |
|
Number of portfolio companies |
|
|
36 |
|
|
|
36 |
|
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended: |
|
|
|
|
|
|
|
|
|
|
March 31,
2016 |
|
March 31,
2015 |
|
Change |
|
%
Change |
Total investment income |
|
$ |
50,955 |
|
|
$ |
41,643 |
|
|
$ |
9,312 |
|
|
22.4 |
% |
Total expenses, net |
|
|
(30,239 |
) |
|
|
(21,746 |
) |
|
|
(8,493 |
) |
|
39.1 |
|
Net investment income |
|
|
20,716 |
|
|
|
19,897 |
|
|
|
819 |
|
|
4.1 |
|
Net investment income per common
share |
|
|
0.68 |
|
|
|
0.75 |
|
|
|
(0.07 |
) |
|
(9.4 |
) |
Cash distribution per common
share(A) |
|
|
0.75 |
|
|
|
0.77 |
|
|
|
(0.02 |
) |
|
(2.6 |
) |
Total realized loss |
|
|
(4,599 |
) |
|
|
(73 |
) |
|
|
(4,526 |
) |
|
NM |
|
Total unrealized appreciation |
|
|
8,737 |
|
|
|
30,390 |
|
|
|
(21,653 |
) |
|
(71.3 |
) |
Net increase in net assets
resulting from operations |
|
|
24,854 |
|
|
|
50,214 |
|
|
|
(25,360 |
) |
|
(50.5 |
) |
Weighted average yield on
interest-bearing investments |
|
|
12.6 |
% |
|
|
12.6 |
% |
|
|
— |
% |
|
— |
|
Total dollars invested |
|
$ |
61,896 |
|
|
$ |
132,902 |
|
|
$ |
(71,006 |
) |
|
(53.4 |
) |
Total dollars repaid and collected
from sales |
|
|
44,582 |
|
|
|
11,260 |
|
|
|
33,322 |
|
|
295.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
|
|
|
|
|
|
|
Total investments at fair
value |
|
$ |
487,656 |
|
|
$ |
466,053 |
|
|
$ |
21,603 |
|
|
4.6 |
% |
Fair value as a percent of
cost |
|
|
94.1 |
% |
|
|
92.2 |
% |
|
|
1.9 |
% |
|
2.1 |
|
Total net assets |
|
$ |
279,022 |
|
|
$ |
273,429 |
|
|
$ |
5,593 |
|
|
2.0 |
|
Net asset value per common
share |
|
|
9.22 |
|
|
|
9.18 |
|
|
|
0.04 |
|
|
0.4 |
|
Number of portfolio companies |
|
|
36 |
|
|
|
34 |
|
|
|
2 |
|
|
5.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)Cash distribution per common
share during the year ended March 31, 2015 included a special
distribution of $0.05 per share. |
NM=Not Meaningful |
|
Highlights for the Quarter: During the
quarter ended March 31, 2016, the following significant events
occurred:
- Portfolio Activity: Invested $1.6 million into
existing portfolio companies.
- Recurring Distributions and Dividends:
Paid monthly cash distributions to common and preferred
stockholders for each of January, February, and March 2016.
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”).
Fourth Quarter Results:
Net investment income for the quarters ended March 31, 2016 and
December 31, 2015, was $4.9 million, or $0.16 per share, and $4.6
million, or $0.15 per share, respectively, an increase of
5.8%. The increase in net investment income period over
period was primarily due to higher interest income, which resulted
from an increase in our weighted-average interest-bearing portfolio
during the same period.
Net asset value per common share as of March 31, 2016 increased
to $9.22 compared to $8.66 as of December 31, 2015. The
quarter over quarter increase was primarily due to $17.7 million of
net unrealized appreciation of investments during the period, which
was principally due to improved performance of certain portfolio
companies.
Fiscal Year End Results: Net investment
income for the fiscal years ended March 31, 2016 and 2015 was $20.7
million, or $0.68 per share, and $19.9 million, or $0.75 per share,
respectively, an increase of 4.1% in total net investment
income. The increase in net investment income period over
period was primarily due to higher interest income which resulted
from an increase in our weighted-average interest-bearing portfolio
during the same period. The increase in interest income was
partially offset by increases in interest and dividend expense and
in the net base management fee as compared to the prior year. The
increase in interest expense was due to a $15.4 million increase in
the weighted-average outstanding balance on our line of credit
compared to the prior year. Dividend expense increased as a
result of the issuance of $41.4 million of our Series B Term
Preferred Stock in November 2014 and the issuance of $40.3 million
of our Series C Term Preferred Stock in May 2015. The
increase in the net base management fee was a direct result from
the growth in our portfolio.
Net asset value per common share as of March 31, 2016 increased
to $9.22 compared to $9.18 as of March 31, 2015. The
year-over-year increase was primarily due to $8.7 million of net
unrealized appreciation of investments during the period, which was
principally due to improved performance of certain portfolio
companies.
Subsequent Events: After
March 31, 2016, the following significant events occurred:
- Portfolio Activity:
- In April 2016, we sold our investment in Acme, which had a cost
basis and fair value of $23.7 million and $44.9 million,
respectively, as of March 31, 2016. In connection with the
sale, we received net cash proceeds of $44.6 million, including the
repayment of our debt investment of $14.5 million at par.
- In May 2016, we invested $25.5 million in The Mountain, Inc.
(“The Mountain”) through a combination of secured second lien debt
and preferred equity. The Mountain, headquartered in Keene, New
Hampshire, is a designer and manufacturer of premium quality, bold
artwear apparel serving a diverse global customer base.
- Regular Distributions and Dividends
Declared: On April 12, 2016, our Board of Directors
declared the following monthly cash distributions and
dividends:
Record
Date |
|
Payment
Date |
|
Distribution per Common Share |
|
Dividend
per Series A Term Preferred Share |
|
Dividend
per Series B Term Preferred
Share |
|
Dividend
per Series C Term Preferred Share |
April 22, 2016 |
|
May 2, 2016 |
|
$ |
0.0625 |
|
$ |
0.1484375 |
|
$ |
0.140625 |
|
$ |
0.135417 |
May 19, 2016 |
|
May 31, 2016 |
|
0.0625 |
|
0.1484375 |
|
0.140625 |
|
0.135417 |
June 17, 2016 |
|
June 30, 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 Wednesday, May 18, 2016, 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 17, 2016. To hear the replay, please
dial (855) 859-2056 and use the playback conference
number 29792433. 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 17, 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 130 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 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, 2016, 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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