PHILADELPHIA, Aug. 9, 2018 /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 ended June 30, 2018, and
that its board of directors has declared its third quarter 2018
regular distribution.
Financial Highlights for the Quarter Ended June 30, 20181
- Net investment income of $0.19
per share, compared to $0.19 per
share for the quarter ended June 30,
2017
- Adjusted net investment income of $0.19 per share, compared to $0.19 per share for the quarter ended
June 30, 20172
- Total net realized gain of $0.13 per share and total net change in
unrealized depreciation of $0.44 per
share, compared to a total net realized loss of $0.06 per share and a total net change in
unrealized depreciation of $0.05 per
share for the quarter ended June 30, 2017
- Paid cash distributions to stockholders totaling
$0.19 per share3
- Total purchases of $240.4
million versus $350.3 million
of sales and repayments
- Net asset value of $8.87 per
share, compared to $9.16 per share as
of March 31, 2018
"We are pleased with the progress we've made since announcing
the formation of the partnership between FS Investments and KKR,"
said Michael Forman, Chairman and
Chief Executive Officer of FSIC. "Completing the merger with
Corporate Capital Trust, efficiently leveraging our new, lower cost
revolving credit facility and maintaining a strong origination
pipeline will position us well to deliver consistent long-term
performance and drive value for our investors."
Declaration of Regular Distribution for Third Quarter
2018
FSIC's board of directors has declared a regular cash
distribution for the third quarter of $0.19 per share, which will be paid on or about
October 2, 2018 to stockholders of
record as of the close of business on September 19, 2018.
Summary Consolidated Results
|
Three Months
Ended
|
(dollars in
thousands, except per share data)
(all per share amounts are basic and
diluted)1
|
June 30,
2018
|
March 31,
2018
|
June 30,
2017
|
Total investment
income
|
$95,575
|
$101,018
|
$98,695
|
Net investment
income
|
45,955
|
50,547
|
46,460
|
Net increase
(decrease) in net assets resulting from operations
|
(31,338)
|
12,925
|
18,442
|
|
|
|
|
Net investment income
per share
|
$0.19
|
$0.21
|
$0.19
|
Adjusted net
investment income per share2
|
$0.19
|
$0.21
|
$0.19
|
Total net realized
and unrealized gain (loss) per share
|
$(0.32)
|
$(0.15)
|
$(0.11)
|
Net increase
(decrease) in net assets resulting from operations
(Earnings per Share)
|
$(0.13)
|
$0.05
|
$0.08
|
Stockholder
distributions per share3
|
$0.19000
|
$0.19000
|
$0.22275
|
Net asset value per
share at period end
|
$8.87
|
$9.16
|
$9.30
|
Weighted average
shares outstanding
|
242,801,446
|
245,713,188
|
245,107,405
|
Shares outstanding,
end of period
|
240,602,753
|
245,587,856
|
245,153,010
|
|
|
|
|
|
|
|
|
(dollar amounts in
thousands)
|
|
As
of June 30,
2018
|
As of
December 31, 2017
|
Total fair value of
investments
|
|
$3,626,901
|
$3,926,234
|
Total
assets
|
|
3,882,958
|
4,104,275
|
Total stockholders'
equity
|
|
2,134,778
|
2,284,723
|
Portfolio Highlights as of June
30, 2018
- Total fair value of investments was $3.6
billion.
- Core investment strategies4 represented 99% of the
portfolio by fair value as of June 30,
2018, including 90% from direct originations and 9% from
opportunistic investments. Broadly syndicated/other investments
represented the remaining 1% of the portfolio by fair value.
- Gross portfolio yield prior to leverage (based on amortized
cost and excluding non-income producing assets)5 was
11.1%, compared to 10.9% as of March 31,
2018.
- Total commitments to direct originations (including unfunded
commitments) made during the second quarter of 2018 was
$163.3 million in 11 companies, 5 of
which were existing portfolio companies.
- Approximately 0.2% of investments were on non-accrual based on
fair value.6
Total Portfolio Activity
|
Three Months
Ended
|
(dollar amounts in
thousands)
|
June 30,
2018
|
March 31,
2018
|
June 30,
2017
|
Purchases
|
$240,443
|
$115,990
|
$298,682
|
Sales and
redemptions
|
(350,253)
|
(215,945)
|
(310,569)
|
Net portfolio
activity
|
$(109,810)
|
$(99,955)
|
$(11,887)
|
|
|
|
|
Portfolio
Data
|
|
As of June
30, 2018
|
As of
December 31, 2017
|
Total fair value of
investments
|
|
$3,626,901
|
$3,926,234
|
Number of Portfolio
Companies
|
|
109
|
100
|
Average Annual EBITDA
of Portfolio Companies
|
|
$107,700
|
$85,700
|
Weighted Average
Purchase Price of Debt Investments (as a % of par)
|
|
99.5%
|
99.5%
|
% of Investments on
Non-Accrual
(based on fair
value)6
|
|
0.2%
|
0.2%
|
|
|
|
|
Asset Class
(based on fair value)
|
|
|
|
Senior Secured Loans
— First Lien
|
|
67%
|
64%
|
Senior Secured Loans
— Second Lien
|
|
4%
|
5%
|
Senior Secured
Bonds
|
|
5%
|
4%
|
Subordinated
Debt
|
|
12%
|
13%
|
Collateralized
Securities
|
|
1%
|
1%
|
Equity/Other
|
|
11%
|
13%
|
|
|
|
|
Portfolio
Composition by Strategy (based on fair
value)4
|
|
|
|
Direct
Originations
|
|
90%
|
92%
|
Opportunistic
|
|
9%
|
7%
|
Broadly
Syndicated/Other
|
|
1%
|
1%
|
|
|
|
|
Interest Rate
Type (based on fair value)
|
|
|
|
% Variable
Rate
|
|
69.8%
|
69.4%
|
% Fixed
Rate
|
|
19.6%
|
17.8%
|
% Income Producing
Equity/Other Investments
|
|
2.2%
|
2.3%
|
% Non-Income
Producing Equity/Other Investments
|
|
8.4%
|
10.5%
|
|
|
|
|
Yields (based
on amortized cost)5
|
|
|
|
Gross Portfolio Yield
Prior to Leverage
|
|
10.2%
|
9.6%
|
Gross Portfolio Yield
Prior to Leverage — Excluding Non-Income
Producing Assets
|
|
11.1%
|
10.5%
|
Direct Origination Activity
|
Three Months
Ended
|
(dollar amounts in
thousands)
|
June 30,
2018
|
March 31,
2018
|
June 30,
2017
|
Total
Commitments
(including unfunded
commitments)
|
$163,261
|
$79,590
|
$197,084
|
Exited Investments
(including partial paydowns)
|
(288,451)
|
(186,236)
|
(218,280)
|
Net Direct
Originations
|
$(125,190)
|
$(106,646)
|
$(21,196)
|
|
Direct
Originations Portfolio Data
|
|
As of June 30,
2018
|
As of December 31,
2017
|
Total Fair Value of
Direct Originations
|
|
$3,277,882
|
$3,606,608
|
Number of Portfolio
Companies
|
|
72
|
75
|
Average Annual EBITDA
of Portfolio Companies
|
|
$73,300
|
$68,600
|
Average Leverage
Through Tranche of Portfolio Companies —
Excluding
Equity/Other and Collateralized Securities
|
|
5.6x
|
4.9x
|
% of Investments on
Non-Accrual (based on fair value)6
|
|
0.2%
|
—
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
New Direct
Originations by Asset Class (including unfunded
commitments)
|
June 30,
2018
|
March 31,
2018
|
June 30,
2017
|
Senior Secured Loans
— First Lien
|
92%
|
90%
|
97%
|
Senior Secured Loans
— Second Lien
|
—
|
5%
|
—
|
Senior Secured
Bonds
|
—
|
—
|
1%
|
Subordinated
Debt
|
—
|
1%
|
—
|
Collateralized
Securities
|
—
|
—
|
—
|
Equity/Other
|
8%
|
4%
|
2%
|
Average New Direct
Origination Commitment Amount
|
$14,842
|
$13,265
|
$15,160
|
Weighted Average
Maturity for New Direct Originations
|
7/16/2024
|
9/15/2023
|
12/17/2022
|
Gross Portfolio Yield
Prior to Leverage (based on amortized cost) of New Direct
Originations Funded during Period5
|
11.5%
|
10.9%
|
9.6%
|
Gross Portfolio Yield
Prior to Leverage (based on amortized cost) of New Direct
Originations Funded during Period —
Excluding Non-Income
Producing Assets5
|
11.5%
|
10.9%
|
9.7%
|
Gross Portfolio Yield
Prior to Leverage (based on amortized cost) of Direct Originations
Exited during Period5
|
10.5%
|
10.6%
|
9.9%
|
Leverage and Liquidity as of June 30, 2018
- Debt to equity ratio of 77%, based on $1.64 billion in total debt outstanding and
stockholders' equity of $2.13
billion. FSIC's weighted average effective interest rate
(including the effect of non-usage fees) was 4.64%
- Cash and foreign currency of approximately $200.8 million and availability under its
financing arrangements of $346.2
million, subject to borrowing base and other
limitations
- Twenty-two unfunded debt investments with aggregate unfunded
commitments of $127.0 million and one
unfunded equity commitment with an unfunded commitment of
$112 thousand
Conference Call Information
FSIC will host a conference call at 10:00
a.m. (Eastern Time) on Friday, August 10, 2018, to discuss
its second quarter financial results. All interested parties are
welcome to participate. You can access the conference call by
dialing (877) 472-8671 and using the conference ID 3745405
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. FSIC is advised by FS/KKR Advisor, LLC.
For more information, please visit
www.fsinvestmentcorp.com.
About FS/KKR Advisor, LLC
FS/KKR Advisor, LLC ("FS/KKR") is a partnership between FS
Investments and KKR Credit that serves as the investment adviser to
six BDCs, including FS Investment Corporation, FS Investment
Corporation II, FS Investment Corporation III, FS Investment
Corporation IV, Corporate Capital Trust, Inc. and Corporate Capital
Trust II.
FS/KKR seeks to leverage the size of its platform,
differentiated origination capabilities and expertise in capital
markets to maximize returns and preserve capital for investors.
FS Investments is a leading asset manager dedicated to helping
individuals, financial professionals and institutions design better
portfolios. The firm provides access to alternative sources of
income and growth and focuses on setting industry standards for
investor protection, education and transparency. FS Investments is
headquartered in Philadelphia, PA
with offices in New York, NY,
Orlando, FL and Washington, DC. Visit www.fsinvestments.com to
learn more.
KKR Credit is a subsidiary of KKR & Co. Inc., a leading
global investment firm that manages multiple alternative asset
classes, including private equity, energy, infrastructure, real
estate and credit, with strategic manager partnerships that manage
hedge funds. KKR aims to generate attractive investment returns for
its fund investors by following a patient and disciplined
investment approach, employing world-class people, and driving
growth and value creation with KKR portfolio companies. KKR invests
its own capital alongside the capital it manages for fund investors
and provides financing solutions and investment opportunities
through its capital markets business. References to KKR's
investments may include the activities of its sponsored funds. For
additional information about KKR & Co. Inc. (NYSE: KKR), please
visit KKR's website at www.kkr.com and on Twitter @KKR_Co.
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.
Other Information
The information in this press release is summary information
only and should be read in conjunction with FSIC's quarterly report
on Form 10-Q for the quarterly period ended June 30, 2018, which FSIC filed with the U.S.
Securities and Exchange Commission (the "SEC") on August 9, 2018, as well as FSIC's other reports
filed with the SEC. A copy of FSIC's quarterly report on Form 10-Q
for the quarterly period ended June 30,
2018 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, including the special distribution referenced
herein.
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:
Investor Relations Contact
Marc Yaklofsky
marc.yaklofsky@fsinvestments.com
FS Investments Media Team
Marc Yaklofsky
media@fsinvestments.com
Income
Statement
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Investment
income
|
|
|
|
|
|
|
|
|
Interest
income
|
|
$
|
77,458
|
|
$
|
74,928
|
|
$
|
152,727
|
|
$
|
147,766
|
Paid-in-kind interest
income
|
|
8,704
|
|
7,588
|
|
17,152
|
|
14,469
|
Fee income
|
|
2,993
|
|
9,546
|
|
5,446
|
|
29,076
|
Dividend
income
|
|
—
|
|
—
|
|
7,355
|
|
—
|
From
non-controlled/affiliated investments:
|
|
|
|
|
|
|
|
|
Interest
income
|
|
2,223
|
|
3,353
|
|
3,651
|
|
7,037
|
Paid-in-kind interest
income
|
|
726
|
|
699
|
|
3,873
|
|
1,305
|
Fee income
|
|
—
|
|
2
|
|
—
|
|
31
|
From
controlled/affiliated investments:
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1,404
|
|
939
|
|
2,524
|
|
2,441
|
Paid-in-kind interest
income
|
|
2,067
|
|
1,640
|
|
3,865
|
|
2,634
|
Total investment
income
|
|
95,575
|
|
98,695
|
|
196,593
|
|
204,759
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Management
fees
|
|
15,313
|
|
18,367
|
|
33,167
|
|
36,734
|
Subordinated income
incentive fees
|
|
10,906
|
|
11,617
|
|
22,905
|
|
24,764
|
Administrative
services expenses
|
|
742
|
|
742
|
|
1,476
|
|
1,476
|
Accounting and
administrative fees
|
|
249
|
|
255
|
|
503
|
|
520
|
Interest
expense
|
|
20,782
|
|
19,617
|
|
40,835
|
|
39,056
|
Directors'
fees
|
|
274
|
|
274
|
|
770
|
|
545
|
Other general and
administrative expenses
|
|
1,579
|
|
1,363
|
|
3,211
|
|
2,614
|
Total operating
expenses
|
|
49,845
|
|
52,235
|
|
102,867
|
|
105,709
|
Management fee
waiver
|
|
(225)
|
|
—
|
|
(2,776)
|
|
—
|
Net expenses
|
|
49,620
|
|
52,235
|
|
100,091
|
|
105,709
|
Net investment
income
|
|
45,955
|
|
46,460
|
|
96,502
|
|
99,050
|
|
|
|
|
|
|
|
|
|
Realized and
unrealized gain/loss
|
|
|
|
|
|
|
|
|
Net realized gain
(loss) on investments:
|
|
|
|
|
|
|
|
|
Non-controlled/unaffiliated investments
|
|
40,736
|
|
(14,147)
|
|
36,385
|
|
(62,594)
|
Non-controlled/affiliated investments
|
|
(10,083)
|
|
—
|
|
(10,075)
|
|
305
|
Controlled/affiliated
investments
|
|
12
|
|
—
|
|
12
|
|
(52,879)
|
Net realized gain
(loss) on foreign currency
|
|
36
|
|
61
|
|
97
|
|
184
|
Net change in
unrealized appreciation (depreciation) on
investments:
|
|
|
|
|
|
|
|
|
Non-controlled/unaffiliated investments
|
|
(81,473)
|
|
(9,458)
|
|
(98,974)
|
|
119,802
|
Non-controlled/affiliated investments
|
|
(21,073)
|
|
(5,602)
|
|
(26,603)
|
|
(17,930)
|
Controlled/affiliated
investments
|
|
(7,986)
|
|
4,132
|
|
(17,693)
|
|
(367)
|
Net change in
unrealized appreciation (depreciation) on secured
borrowing
|
|
—
|
|
—
|
|
—
|
|
(10)
|
Net change in
unrealized gain (loss) on foreign currency
|
|
2,538
|
|
(3,004)
|
|
1,936
|
|
(3,726)
|
Total net realized and
unrealized gain (loss)
|
|
(77,293)
|
|
(28,018)
|
|
(114,915)
|
|
(17,215)
|
Net increase
(decrease) in net assets resulting from
operations
|
|
$
|
(31,338)
|
|
$
|
18,442
|
|
$
|
(18,413)
|
|
$
|
81,835
|
|
|
|
|
|
|
|
|
|
Per share
information—basic and diluted
|
|
|
|
|
|
|
|
|
Net increase
(decrease) in net assets resulting from operations
(Earnings per Share)
|
|
$
|
(0.13)
|
|
$
|
0.08
|
|
$
|
(0.08)
|
|
$
|
0.33
|
Weighted average
shares outstanding
|
|
242,801,446
|
|
245,107,405
|
|
244,249,274
|
|
244,832,713
|
Balance
Sheet
|
|
June 30,
2018
|
|
|
|
|
|
(Unaudited)
|
|
December 31,
2017
|
Assets
|
|
|
|
|
Investments, at fair
value
|
|
|
|
|
Non-controlled/unaffiliated investments (amortized
cost—$3,359,024 and $3,532,517, respectively)
|
|
$
|
3,328,444
|
|
$
|
3,600,911
|
Non-controlled/affiliated investments (amortized
cost—$196,144 and $197,468, respectively)
|
|
202,128
|
|
230,055
|
Controlled/affiliated
investments (amortized cost—$105,615 and $86,861,
respectively)
|
|
96,329
|
|
95,268
|
Total investments, at
fair value (amortized cost—$3,660,783 and $3,816,846,
respectively)
|
|
3,626,901
|
|
3,926,234
|
Cash
|
|
194,604
|
|
134,932
|
Foreign currency, at
fair value (cost—$6,305 and $3,685, respectively)
|
|
6,174
|
|
3,810
|
Receivable for
investments sold and repaid
|
|
19,552
|
|
3,477
|
Income
receivable
|
|
32,239
|
|
30,668
|
Deferred financing
costs
|
|
2,963
|
|
3,459
|
Prepaid expenses and
other assets
|
|
525
|
|
1,695
|
Total
assets
|
|
$
|
3,882,958
|
|
$
|
4,104,275
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Payable for
investments purchased
|
|
$
|
21,841
|
|
$
|
1,978
|
Credit facilities
payable (net of deferred financing costs of $2,624 and $3,179,
respectively)
|
|
553,656
|
|
638,571
|
Unsecured notes
payable (net of deferred financing costs of $1,086 and $1,402,
respectively)
|
|
1,074,883
|
|
1,073,445
|
Stockholder
distributions payable
|
|
46,029
|
|
46,704
|
Management fees
payable
|
|
15,088
|
|
15,450
|
Subordinated income
incentive fees payable
|
|
10,906
|
|
12,871
|
Administrative
services expense payable
|
|
684
|
|
294
|
Interest
payable
|
|
23,210
|
|
22,851
|
Directors' fees
payable
|
|
261
|
|
276
|
Other accrued
expenses and liabilities
|
|
1,622
|
|
7,112
|
Total
liabilities
|
|
1,748,180
|
|
1,819,552
|
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, 240,602,753 and
245,725,416 shares
issued and outstanding,
respectively
|
|
241
|
|
246
|
Capital in excess of
par value
|
|
2,233,692
|
|
2,272,591
|
Accumulated
undistributed net realized gain/loss on investments and gain/loss
on foreign currency
|
|
(218,869)
|
|
(245,288)
|
Accumulated
undistributed (distributions in excess of) net investment
income
|
|
147,936
|
|
144,062
|
Net unrealized
appreciation (depreciation) on investments and unrealized gain/loss
on foreign currency
|
|
(28,222)
|
|
113,112
|
Total
stockholders' equity
|
|
2,134,778
|
|
2,284,723
|
Total
liabilities and stockholders' equity
|
|
$
|
3,882,958
|
|
$
|
4,104,275
|
Net asset value per
share of common stock at period end
|
|
$
|
8.87
|
|
$
|
9.30
|
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
|
|
June 30,
2018
|
March 31,
2018
|
June 30,
2017
|
GAAP net investment
income per share
|
$0.19
|
$0.21
|
$0.19
|
Plus capital gains
incentive fees per share
|
—
|
—
|
—
|
Plus excise taxes per
share
|
—
|
—
|
—
|
Plus one-time
expenses per share
|
—
|
—
|
—
|
Adjusted net
investment income per share2
|
$0.19
|
$0.21
|
$0.19
|
|
|
|
|
|
|
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 (iii) 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 per
share of our common stock to
stockholders of record during each applicable period.
|
|
|
4)
|
See FSIC's quarterly
report on Form 10-Q for the three months ended June 30, 2018 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. FSIC's
estimated gross portfolio yield may be higher than
an investor's yield on an investment in shares of FSIC's common
stock because it does not reflect sales
commissions or charges that may be incurred in connection with the
purchase or sale of such shares, or operating
expenses that may be incurred by FSIC. FSIC's estimated gross
portfolio yield does not represent an actual
investment return to stockholders, is subject to change and, in the
future, may be greater or less than the rates
set forth herein.
|
|
|
6)
|
Interest income is
recorded on an accrual basis. See FSIC's quarterly report on Form
10-Q for the three months
ended June 30, 2018 for a description of FSIC's revenue recognition
policy.
|
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SOURCE FS Investment Corporation