PHILADELPHIA, Feb. 29, 2016 /PRNewswire/ -- FS Investment
Corporation (NYSE: FSIC), a publicly traded business development
company focused on providing customized credit solutions to private
middle market U.S. companies, announced its operating results for
the quarter and full year ended December 31,
2015, and announced that its board of directors has declared
its first quarter 2016 regular distribution.
Financial Highlights for the Quarter Ended December 31, 20151
- Net investment income of $0.23
per share, compared to $0.28 per
share for the quarter ended December 31,
2014.
- Adjusted net investment income of $0.24 per share, compared to $0.24 per share for the quarter ended
December 31,
2014.2
- Total net realized loss on investments of $0.08 per share and total net change in
unrealized depreciation on investments of $0.47 per share, compared to a total net realized
gain on investments of $0.02 per
share and a total net change in unrealized depreciation on
investments of $0.34 per share for
the quarter ended December 31,
2014.
- Paid cash distributions to stockholders totaling
$0.22275 per
share.3
- Committed $604 million to
direct originations versus $319
million of sales and repayments, resulting in net direct
origination investment activity of $285
million.
- Net asset value of $9.10 per
share, compared to $9.64 per share as
of September 30, 2015.
Financial Highlights for the Year Ended December 31, 20151
- Net investment income of $1.10
per share, compared to $0.97 per
share for the year ended December 31,
2014.
- Adjusted net investment income of $1.03 per share, compared to $0.99 per share for the year ended December 31, 2014.2
- Total net realized loss on investments of $0.26 per share and total net change in
unrealized depreciation on investments of $0.68 per share, compared to a total net realized
gain on investments of $0.12 per
share and a total net change in unrealized depreciation on
investments of $0.31 per share for
the year ended December 31,
2014.
- Paid cash distributions to stockholders totaling
$0.89 per share.3
- Total purchases of $1.6
billion, 80% of which were in senior secured debt (first and
second lien senior secured loans and senior secured
bonds).
Michael C. Forman, Chairman and
Chief Executive Officer of FSIC, commented, "Continued financial
market volatility in the fourth quarter contributed to meaningfully
weaker secondary prices and wider clearing yields across the
corporate credit markets. While secondary market volatility may
place downward pressure on asset values, we believe credit quality
remains strong and are pleased with the overall health of the
portfolio. We are taking advantage of the recent credit market
selloff to improve FSIC's overall credit profile and maintain or
improve the overall yield of the investment portfolio, while still
moving up the capital structure."
Declaration of Regular Distribution for First Quarter
2016
FSIC's board of directors has declared a regular cash
distribution for the first quarter of $0.22275 per share, which will be paid on or
about April 4, 2016, to stockholders
of record as of the close of business on March 23, 2016.
Summary Consolidated Results
|
|
Three Months
Ended
|
(dollars in
thousands, except per share data)
(all per share amounts are basic and
diluted)1
|
December 31,
2015
|
September 30,
2015
|
December 31,
2014
|
Total investment
income
|
$114,763
|
$103,668
|
$113,385
|
Net investment
income
|
56,151
|
63,766
|
68,055
|
Net increase
(decrease) in net assets resulting from operations
|
(78,468)
|
(5,279)
|
(10,189)
|
|
|
|
|
Net investment income
per share
|
$0.23
|
$0.26
|
$0.28
|
Adjusted net
investment income per share2
|
$0.24
|
$0.21
|
$0.24
|
Total net realized
and unrealized gain (loss) on investments per share
|
$(0.55)
|
$(0.29)
|
$(0.33)
|
Net increase
(decrease) in net assets resulting from operations (Earnings per
Share)
|
$(0.32)
|
$(0.02)
|
$(0.04)
|
Stockholder
distributions per share3
|
$0.22275
|
$0.22275
|
$0.32275
|
Net asset value per
share at period end
|
$9.10
|
$9.64
|
$9.83
|
Weighted average
shares outstanding
|
242,800,333
|
242,227,762
|
240,480,410
|
Shares outstanding,
end of period
|
242,847,016
|
242,274,372
|
240,896,559
|
|
(dollar amounts
in
thousands)
|
|
|
As
of December 31,
2015
|
As
of December 31,
2014
|
Total fair value of
investments
|
|
|
4,029,371
|
4,183,447
|
Total
assets
|
|
|
4,149,663
|
4,354,886
|
Total stockholders'
equity
|
|
|
2,208,928
|
2,366,986
|
Portfolio Highlights
- As of December 31, 2015, total
fair value of investments was $4.0
billion.
- Core investment strategies4 represented 97% of the
portfolio by fair value as of December 31,
2015, including 85% from direct originations and 12% from
opportunistic investments. Broadly syndicated/other investments
represented the remaining 3% of the portfolio by fair value as of
December 31, 2015.
- Gross portfolio yield prior to leverage (based on amortized
cost and excluding non-income producing assets)5 as of
December 31, 2015, was 10.4%,
unchanged compared to September 30,
2015.
- Total commitments to direct originations (including unfunded
commitments) made during the fourth quarter of 2015 was
$604 million in 16 portfolio
companies, including 10 in existing portfolio companies.
- As of December 31, 2015, there
were no investments on non-accrual in FSIC's investment
portfolio.6
Total Portfolio Activity
|
Three Months
Ended
|
(dollar amounts in
thousands)
|
December 31,
2015
|
September 30,
2015
|
December 31,
2014
|
Purchases
|
$563,346
|
$283,968
|
$536,854
|
Sales and
redemptions
|
(511,289)
|
(129,667)
|
(598,049)
|
Net portfolio
activity
|
$52,057
|
$154,301
|
$(61,195)
|
|
Portfolio
Data
|
As of
December 31, 2015
|
As of December 31,
2014
|
Total fair value of
investments
|
$4,029,371
|
$4,183,447
|
Number of Portfolio
Companies
|
114
|
118
|
Average Annual EBITDA
of Portfolio Companies
|
$113,200
|
$155,200
|
Weighted Average
Purchase Price of Debt Investments (as a % of par)
|
98.3%
|
97.4%
|
% of Investments on
Non-Accrual (based on
fair value)6
|
—
|
0.3%
|
|
|
Asset Class
(based on fair value)
|
|
Senior Secured Loans
— First Lien
|
54%
|
53%
|
Senior Secured Loans
— Second Lien
|
15%
|
17%
|
Senior Secured
Bonds
|
6%
|
8%
|
Subordinated
Debt
|
11%
|
11%
|
Collateralized
Securities
|
2%
|
3%
|
Equity/Other
|
12%
|
8%
|
|
|
Portfolio
Composition by Strategy (based on fair
value)4
|
|
Direct
Originations
|
85%
|
75%
|
Opportunistic
|
12%
|
19%
|
Broadly
Syndicated/Other
|
3%
|
6%
|
|
|
Interest Rate
Type (based on fair value)
|
|
% Variable
Rate
|
66.8%
|
69.0%
|
% Fixed
Rate
|
21.6%
|
23.3%
|
% Income Producing
Equity/Other Investments
|
4.1%
|
2.9%
|
% Non-Income
Producing Equity/Other Investments
|
7.5%
|
4.8%
|
|
|
Yields5
|
|
Gross Portfolio Yield
Prior to Leverage
(based on amortized
cost)
|
9.8%
|
10.0%
|
Gross Portfolio Yield
Prior to Leverage (based on amortized cost) —
Excluding Non-Income Producing Assets
|
10.4%
|
10.4%
|
|
|
|
|
|
Direct Origination Activity
|
|
|
|
(dollar amounts in
thousands)
|
Three Months
Ended
December 31, 2015
|
Three Months
Ended
September 30,
2015
|
Three Months
Ended
December 31, 2014
|
Total
Commitments
(including unfunded
commitments)
|
$604,203
|
$192,637
|
$258,562
|
Exited Investments
(including partial paydowns)
|
(318,719)
|
(35,090)
|
(88,376)
|
Net Direct
Originations
|
$285,484
|
$157,547
|
$170,186
|
Direct
Originations Portfolio Data
|
As of December 31,
2015
|
As of December 31,
2014
|
Total Fair Value of
Direct Originations
|
$3,434,588
|
$3,147,946
|
Number of Portfolio
Companies
|
71
|
52
|
Average Annual EBITDA
of Portfolio Companies
|
$61,500
|
$47,200
|
Average Leverage
Through Tranche of Portfolio Companies —
Excluding
Equity/Other and Collateralized Securities
|
4.9x
|
4.6x
|
% of Investments on
Non-Accrual (based on Fair Value)6
|
—
|
—
|
|
|
|
|
|
New Direct
Originations by Asset Class
(including unfunded commitments)
|
Three Months
Ended
December 31, 2015
|
Three Months
Ended
September 30, 2015
|
Three Months
Ended
December 31, 2014
|
Senior Secured Loans
— First Lien
|
60%
|
69%
|
36%
|
Senior Secured Loans
— Second Lien
|
6%
|
20%
|
—
|
Senior Secured
Bonds
|
10%
|
1%
|
29%
|
Subordinated
Debt
|
12%
|
7%
|
19%
|
Collateralized
Securities
|
—
|
—
|
7%
|
Equity/Other
|
12%
|
3%
|
9%
|
Average New Direct
Origination Commitment Amount
|
$37,763
|
$12,842
|
$23,506
|
Weighted Average
Maturity for New Direct Originations
|
10/10/2021
|
10/8/2021
|
11/19/2021
|
Gross Portfolio Yield
Prior to Leverage (based on
amortized cost) of New Direct Originations Funded
during Period5
|
10.6%
|
9.0%
|
8.7%
|
Gross Portfolio Yield
Prior to Leverage (based on
amortized cost) of New Direct Originations Funded
during Period —
Excluding Non-Income
Producing Assets5
|
12.3%
|
9.3%
|
10.5%
|
Gross Portfolio Yield
Prior to Leverage (based on
amortized cost) of Direct Originations Exited during
Period5
|
9.9%
|
10.8%
|
9.1%
|
|
|
|
|
|
|
Leverage and Liquidity
As of December 31, 2015, FSIC's
debt to equity ratio was 83%, based on $1.83
billion in total debt outstanding and stockholders' equity
of $2.21 billion. FSIC's weighted
average effective interest rate (including the effect of non-usage
fees) was 3.96% as of December 31,
2015.
As of December 31, 2015, FSIC had
cash (including foreign currency, at fair value) of approximately
$82.0 million and availability under
its financing arrangements of $390.4
million, subject to borrowing base and other
limitations.
As of December 31, 2015, FSIC had
19 debt investments with aggregate unfunded commitments of
$129.7 million and two equity
investments with unfunded commitments of $590,000.
Conference Call Information
FSIC will host a conference call at 10:00
a.m. (Eastern Time) on Tuesday, March
1, 2016, to discuss its fourth quarter and full year 2015
results. All interested parties are welcome to participate. You can
access the conference call by dialing (877) 443-2408 and using the
conference ID 38412123 approximately 10 minutes prior to the call.
The conference call will also be webcast, which can be accessed
from the Investor Relations section of FSIC's website at
www.fsinvestmentcorp.com under Presentations and
Reports.
A replay of the call will be available for a period of 30 days
following the call by visiting the Investor Relations section of
FSIC's website at www.fsinvestmentcorp.com under
Presentations and Reports.
Supplemental Information
An investor presentation of financial information will be made
available prior to the call in the Investor Relations section of
FSIC's website at www.fsinvestmentcorp.com under
Presentations and Reports.
About FS Investment Corporation
FS Investment Corporation (NYSE: FSIC) is a publicly traded
business development company ("BDC") focused on providing
customized credit solutions to private middle market U.S.
companies. FSIC seeks to invest primarily in the senior secured
debt and, to a lesser extent, the subordinated debt of private
middle market companies to achieve the best risk-adjusted returns
for its investors. In connection with its debt investments, FSIC
may receive equity interests such as warrants or options.
FSIC is advised by FB Income Advisor, LLC, an affiliate of
Franklin Square Capital Partners ("Franklin
Square"), and is sub-advised by GSO / Blackstone Debt Funds
Management LLC, an affiliate of GSO Capital Partners ("GSO"). GSO,
with approximately $79.0 billion in
assets under management as of December 31,
2015, is the credit platform of Blackstone, one of the
world's leading managers of alternative investments. For more
information, please visit www.fsinvestmentcorp.com.
About Franklin Square
Franklin Square is a leading
manager of alternative investment funds designed to enhance
investors' portfolios by providing access to asset classes,
strategies and asset managers that typically have been available to
only the largest institutional investors. The firm's funds offer
"endowment-style" investment strategies that help construct
diversified portfolios and manage risk. Franklin Square strives not only to maximize
investment returns but also to set the industry standard for best
practices by focusing on transparency, investor protection and
education for investment professionals and their clients.
Founded in Philadelphia in
2007, Franklin Square quickly established itself as a leader in the
world of alternative investments by introducing innovative
credit-based income funds, including the industry's first
non-traded BDC. The firm managed approximately $17.0 billion in assets as of September 30, 2015, and is the largest manager of
BDC assets with approximately $15.7
billion in BDC assets as of September
30, 2015. For more information, please visit
www.franklinsquare.com.
Forward-Looking Statements and Important Disclosure
Notice
This announcement may contain certain forward-looking
statements, including statements with regard to future events or
the future performance or operations of FSIC. Words such as
"believes," "expects," "projects," and "future" or similar
expressions are intended to identify forward-looking statements.
These forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. Certain
factors could cause actual results to differ materially from those
projected in these forward-looking statements. Factors that could
cause actual results to differ materially include changes in the
economy, risks associated with possible disruption in FSIC's
operations or the economy generally due to terrorism or natural
disasters, future changes in laws or regulations and conditions in
FSIC's operating area, and the price at which shares of FSIC's
common stock trade on the New York Stock Exchange. Some of these
factors are enumerated in the filings FSIC makes with the SEC. FSIC
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
The press release above contains summaries of certain financial
and statistical information about FSIC. The information contained
in this press release is summary information that is intended to be
considered in the context of FSIC's SEC filings and other public
announcements that FSIC may make, by press release or otherwise,
from time to time. FSIC undertakes no duty or obligation to update
or revise the information contained in this press release. In
addition, information related to past performance, while helpful as
an evaluative tool, is not necessarily indicative of future
results, the achievement of which cannot be assured. Investors
should not view the past performance of FSIC, or information about
the market, as indicative of FSIC's future results.
Individual investors and endowments may have different
investment horizons, liquidity needs and risk tolerances. In
addition, fees that may be incurred by an investor in a fund
sponsored by Franklin Square may be
different than fees incurred by an endowment investing in similar
assets as those in which the funds invest.
Other Information
The information in this press release is summary information
only and should be read in conjunction with FSIC's annual report on
Form 10-K for the year ended December 31,
2015, which FSIC filed with the U.S. Securities and Exchange
Commission (the "SEC") on February 29,
2016, as well as FSIC's other reports filed with the SEC. A
copy of FSIC's annual report on Form 10-K for the year ended
December 31, 2015, and FSIC's other
reports filed with the SEC can be found on FSIC's website at
www.fsinvestmentcorp.com and the SEC's website at
www.sec.gov.
Certain Information About Distributions
The determination of the tax attributes of FSIC's distributions
is made annually as of the end of its fiscal year based upon its
taxable income and distributions paid, in each case, for the full
year. Therefore, a determination as to the tax attributes of the
distributions made on a quarterly basis may not be representative
of the actual tax attributes for a full year. FSIC intends to
update stockholders quarterly with an estimated percentage of its
distributions that resulted from taxable ordinary income. The
actual tax characteristics of distributions to stockholders will be
reported to stockholders annually on Form 1099-DIV.
The timing and amount of any future distributions on FSIC's
shares of common stock are subject to applicable legal restrictions
and the sole discretion of its board of directors. There can be no
assurance as to the amount or timing of any such future
distributions.
FSIC may fund its cash distributions to stockholders from any
sources of funds legally available to it, including proceeds from
the sale of shares of FSIC's common stock, borrowings, net
investment income from operations, capital gains proceeds from the
sale of assets, non-capital gains proceeds from the sale of assets
and dividends or other distributions paid to it on account of
preferred and common equity investments in portfolio companies.
FSIC has not established limits on the amount of funds it may use
from available sources to make distributions. There can be no
assurance that FSIC will be able to pay distributions at a specific
rate or at all.
Contact Information:
Investors:
Jim Ballan
Senior Vice President,
Investor Relations and Capital Markets
james.ballan@franklinsquare.com
267-439-4375
Media:
Franklin Square Media Team
media@franklinsquare.com
215-495-1174
Income Statement
|
|
Year Ended
December 31,
|
|
|
2015
|
|
2014
|
|
2013
|
Investment
income
|
|
|
|
|
|
|
From
non-controlled/unaffiliated investments:
|
|
|
|
|
|
|
Interest
income
|
|
$
|
420,834
|
|
|
$
|
418,749
|
|
|
$
|
427,510
|
|
Fee income
|
|
43,392
|
|
|
44,961
|
|
|
37,084
|
|
Dividend
income
|
|
6,499
|
|
|
810
|
|
|
9,972
|
|
From
non-controlled/affiliated investments:
|
|
|
|
|
|
|
Interest
income
|
|
2,603
|
|
|
—
|
|
|
—
|
|
Fee income
|
|
790
|
|
|
—
|
|
|
—
|
|
Dividend
income
|
|
299
|
|
|
299
|
|
|
—
|
|
From
controlled/affiliated investments:
|
|
|
|
|
|
|
Interest
income
|
|
380
|
|
|
—
|
|
|
—
|
|
Total investment
income
|
|
474,797
|
|
|
464,819
|
|
|
474,566
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Management
fees
|
|
75,401
|
|
|
84,617
|
|
|
90,247
|
|
Capital gains
incentive fees
|
|
(21,075)
|
|
|
(9,468)
|
|
|
4,173
|
|
Subordinated income
incentive fees
|
|
61,036
|
|
|
58,122
|
|
|
62,253
|
|
Administrative
services expenses
|
|
4,182
|
|
|
4,794
|
|
|
5,165
|
|
Stock transfer agent
fees
|
|
134
|
|
|
1,037
|
|
|
2,820
|
|
Accounting and
administrative fees
|
|
1,082
|
|
|
1,223
|
|
|
1,390
|
|
Interest
expense
|
|
75,127
|
|
|
64,804
|
|
|
50,763
|
|
Directors'
fees
|
|
1,026
|
|
|
1,027
|
|
|
943
|
|
Listing advisory
fees
|
|
—
|
|
|
5,043
|
|
|
—
|
|
Other general and
administrative expenses
|
|
6,738
|
|
|
9,049
|
|
|
6,094
|
|
Total operating
expenses
|
|
203,651
|
|
|
220,248
|
|
|
223,848
|
|
Management fee
waiver
|
|
—
|
|
|
(2,837)
|
|
|
—
|
|
Net expenses
|
|
203,651
|
|
|
217,411
|
|
|
223,848
|
|
Net investment income
before taxes
|
|
271,146
|
|
|
247,408
|
|
|
250,718
|
|
Excise
taxes
|
|
6,056
|
|
|
5,400
|
|
|
5,742
|
|
Net investment
income
|
|
265,090
|
|
|
242,008
|
|
|
244,976
|
|
|
|
|
|
|
|
|
Realized and
unrealized gain/loss
|
|
|
|
|
|
|
Net realized gain
(loss) on investments:
|
|
|
|
|
|
|
Non-controlled/unaffiliated investments
|
|
$
|
(62,426)
|
|
|
$
|
30,607
|
|
|
$
|
47,014
|
|
Net realized gain
(loss) on foreign currency
|
|
(640)
|
|
|
(301)
|
|
|
(111)
|
|
Net change in
unrealized appreciation (depreciation) on investments:
|
|
|
|
|
|
|
Non-controlled/unaffiliated investments
|
|
(212,155)
|
|
|
(79,008)
|
|
|
(25,982)
|
|
Non-controlled/affiliated investments
|
|
44,247
|
|
|
(3,138)
|
|
|
—
|
|
Controlled/affiliated
investments
|
|
743
|
|
|
—
|
|
|
—
|
|
Net change in
unrealized gain (loss) on foreign currency
|
|
3,526
|
|
|
4,613
|
|
|
(57)
|
|
Total net realized and
unrealized gain (loss) on investments
|
|
(226,705)
|
|
|
(47,227)
|
|
|
20,864
|
|
Net increase
(decrease) in net assets resulting from operations
|
|
$
|
38,385
|
|
|
$
|
194,781
|
|
|
$
|
265,840
|
|
Per share
information—basic and diluted
|
|
|
|
|
|
|
Net increase
(decrease) in net assets resulting from operations
(Earnings per Share)
|
|
$
|
0.16
|
|
|
$
|
0.78
|
|
|
$
|
1.04
|
|
Weighted average
shares outstanding
|
|
241,946,850
|
|
|
248,799,524
|
|
|
255,315,516
|
|
Balance Sheet
|
|
December
31,
|
|
|
2015
|
|
2014
|
Assets
|
|
|
|
|
Investments, at fair
value
|
|
|
|
|
Non-controlled/unaffiliated investments (amortized
cost—$4,027,950 and
$4,164,166, respectively)
|
|
$
|
3,820,283
|
|
|
$
|
4,168,654
|
|
Non-controlled/affiliated investments (amortized
cost—$91,248 and
$17,931, respectively)
|
|
132,357
|
|
|
14,793
|
|
Controlled/affiliated
investments (amortized cost—$75,988 and $0,
respectively)
|
|
76,731
|
|
|
—
|
|
Total investments, at
fair value (amortized cost—$4,195,186 and
$4,182,097, respectively)
|
|
4,029,371
|
|
|
4,183,447
|
|
Cash
|
|
80,807
|
|
|
95,205
|
|
Foreign currency, at
fair value (cost—$1,175 and $1,661, respectively)
|
|
1,180
|
|
|
1,639
|
|
Receivable for
investments sold and repaid
|
|
66
|
|
|
8,976
|
|
Interest
receivable
|
|
34,600
|
|
|
51,814
|
|
Deferred financing
costs
|
|
2,910
|
|
|
13,097
|
|
Prepaid expenses and
other assets
|
|
729
|
|
|
708
|
|
Total
assets
|
|
$
|
4,149,663
|
|
|
$
|
4,354,886
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Payable for
investments purchased
|
|
$
|
—
|
|
|
$
|
28,095
|
|
Credit facilities
payable
|
|
34,625
|
|
|
188,827
|
|
Unsecured notes
payable
|
|
989,764
|
|
|
725,000
|
|
Repurchase agreement
payable
|
|
800,000
|
|
|
950,000
|
|
Stockholder
distributions payable
|
|
54,093
|
|
|
17,885
|
|
Management fees
payable
|
|
18,415
|
|
|
19,560
|
|
Accrued capital gains
incentive fees
|
|
—
|
|
|
21,075
|
|
Subordinated income
incentive fees payable
|
|
13,374
|
|
|
13,089
|
|
Administrative
services expense payable
|
|
946
|
|
|
1,410
|
|
Interest
payable
|
|
22,061
|
|
|
15,850
|
|
Directors' fees
payable
|
|
282
|
|
|
296
|
|
Deferred financing
costs payable
|
|
—
|
|
|
473
|
|
Other accrued
expenses and liabilities
|
|
7,175
|
|
|
6,340
|
|
Total
liabilities
|
|
1,940,735
|
|
|
1,987,900
|
|
Commitments and
contingencies
|
|
—
|
|
|
—
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Preferred stock,
$0.001 par value, 50,000,000 shares authorized, none issued and
outstanding
|
|
—
|
|
|
—
|
|
Common stock, $0.001
par value, 450,000,000 shares authorized,
242,847,016 and 240,896,559 shares issued and
outstanding, respectively
|
|
243
|
|
|
241
|
|
Capital in excess of
par value
|
|
2,264,345
|
|
|
2,258,548
|
|
Accumulated
undistributed net realized gain/loss on investments and gain/loss
on foreign currency
|
|
(45,748)
|
|
|
33,758
|
|
Accumulated
undistributed (distributions in excess of) net investment
income
|
|
147,946
|
|
|
68,658
|
|
Net unrealized
appreciation (depreciation) on investments and unrealized gain/loss
on foreign currency
|
|
(157,858)
|
|
|
5,781
|
|
Total
stockholders' equity
|
|
2,208,928
|
|
|
2,366,986
|
|
Total
liabilities and stockholders' equity
|
|
$
|
4,149,663
|
|
|
$
|
4,354,886
|
|
Net asset value per
share of common stock at period end
|
|
$
|
9.10
|
|
|
$
|
9.83
|
|
Non-GAAP Financial Measures
This press release contains certain financial measures that have
not been prepared in accordance with generally accepted accounting
principles in the United States
("GAAP"). FSIC uses these non-GAAP financial measures internally in
analyzing financial results and believes that the use of these
non-GAAP financial measures is useful to investors as an additional
tool to evaluate ongoing results and trends and in comparing FSIC's
financial results with other BDCs.
Non-GAAP financial measures are not meant to be considered in
isolation or as a substitute for comparable GAAP financial
measures, and should be read only in conjunction with FSIC's
consolidated financial statements prepared in accordance with GAAP.
A reconciliation of non-GAAP financial measures to the most
directly comparable GAAP measures has been provided in this press
release, and investors are encouraged to review the
reconciliation.
Reconciliation of Non-GAAP Financial
Measures1
|
Three Months Ended
|
|
December 31,
2015
|
September 30,
2015
|
December 31,
2014
|
GAAP net investment
income per share
|
$0.23
|
$0.26
|
$0.28
|
Plus capital gains
incentive fees per share
|
(0.01)
|
(0.06)
|
(0.07)
|
Plus excise taxes per
share
|
0.02
|
-
|
0.02
|
Plus one-time
expenses per share
|
-
|
-
|
0.01
|
Adjusted net
investment income per share2
|
$0.24
|
$0.21
|
$0.24
|
1)
|
Per share data was
derived by using the weighted average shares of FSIC's common stock
outstanding during the applicable period. Per share numbers may not
sum due to rounding.
|
|
|
2)
|
Adjusted net
investment income is a non-GAAP financial measure. Adjusted net
investment income is presented for all periods as GAAP net
investment income excluding (i) the
accrual for the capital gains incentive fee for realized and
unrealized gains; (ii) excise taxes; and (ii) certain non-recurring
operating expenses that are one-time in nature and
are not representative of ongoing operating expenses incurred
during FSIC's normal course of business (referred to herein as
one-time expenses). FSIC uses this non-GAAP
financial measure internally in analyzing financial results and
believes that the use of this non-GAAP financial measure is useful
to investors as an additional tool to evaluate
ongoing results and trends and in comparing its financial results
with other business development companies. The presentation of this
additional information is not meant to be
considered in isolation or as a substitute for financial results
prepared in accordance with GAAP. A reconciliation of GAAP net
investment income to adjusted net investment
income can be found above.
|
|
|
3)
|
The per share data
for distributions reflects the amount of distributions paid on
January 4, 2016, to stockholders of record as of the close of
business on December 22, 2015.
|
|
|
4)
|
See FSIC's annual
report on Form 10-K for the year ended December 31, 2015, for a
description of FSIC's investment strategies.
|
|
|
5)
|
Gross portfolio yield
represents the expected annualized yield of FSIC's investment
portfolio based on the composition of the portfolio as of the
applicable date.
|
|
|
6)
|
Interest income is
recorded on an accrual basis. See FSIC's annual report on Form 10-K
for the year ended December 31, 2015, for a description of FSIC's
revenue recognition policy.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/fsic-reports-fourth-quarter-and-full-year-2015-financial-results-and-declares-regular-distribution-for-first-quarter-300228098.html
SOURCE FS Investment Corporation