Gladstone Capital Corporation Reports Financial Results for the Quarter Ended June 30, 2014
31 July 2014 - 6:52AM
Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today
announced earnings for its third quarter ended June 30, 2014.
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.GladstoneCapital.com.
Summary
Information (dollars in thousands, except per share data)
(unaudited): |
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|
|
|
|
For the Quarter
Ended: |
June 30, 2014 |
March 31, 2014 |
Change |
% Change |
|
|
|
|
|
Total investment income |
$ 10,180 |
$ 9,331 |
$ 849 |
9.1% |
Total expenses |
(5,117) |
(4,846) |
271 |
5.6 |
Net investment income |
5,063 |
4,485 |
578 |
12.9 |
Net investment income per common
share |
0.24 |
0.21 |
0.03 |
14.3 |
Cash distribution per common share |
0.21 |
0.21 |
— |
— |
Total realized loss |
(1,243) |
(2,539) |
(1,296) |
(51.0) |
Total unrealized depreciation |
(23,995) |
(4,048) |
19,947 |
NM |
Net decrease in net assets resulting from
operations |
(20,175) |
(2,102) |
18,073 |
NM |
Weighted average yield on
interest-bearing investments |
11.5% |
11.6% |
(0.1)% |
(0.9) |
Total dollars invested |
$ 3,360 |
$ 34,921 |
$ (31,561) |
(90.4) |
Total dollars repaid |
8,919 |
13,748 |
(4,829) |
(35.1) |
|
|
|
|
|
|
|
|
|
|
As of: |
June 30,
2014 |
March 31,
2014 |
Change |
%
Change |
Total investments at fair
value |
$ 265,083 |
$ 293,320 |
$ (28,237) |
(9.6) |
Fair value as a percent of cost |
75.7% |
82.4% |
(7.2)% |
(8.7) |
Net asset value per common share |
$ 8.62 |
$ 9.79 |
$ (1.17) |
(12.0) |
Asset coverage ratio |
289.6% |
308.2% |
(18.6)% |
(6.0) |
Number of portfolio companies |
49 |
51 |
(2) |
(3.9) |
NM=Not Meaningful |
|
|
|
|
Highlights for the
Quarter: During the third quarter ended June
30, 2014, the following significant events occurred:
- Series 2021 Term Preferred Stock Offering and
Redemption of Series 2016 Term Preferred
Stock: Completed a public offering of approximately
2.4 million shares of 6.75% Series 2021 Term Preferred Stock
("Series 2021 Term Preferred Stock"), at a public offering price of
$25.00 per share. Net proceeds of the offering were
approximately $58.5 million, and were used to voluntarily redeem
all outstanding shares of approximately 1.5 million shares of our
then existing 7.125% Series 2016 Term Preferred Stock ("Series 2016
Term Preferred Stock") and to repay a portion of outstanding
borrowings under our credit facility.
- Portfolio Activity: Invested $2.0 million
in one syndicated investment and received an aggregate of $8.9
million in scheduled and unscheduled principal repayments from
existing portfolio companies, including three early payoffs at par
totaling $5.4 million and success fees totaling $0.5 million.
- Recurring Distributions: Paid monthly
distributions for each of April, May and June 2014 to common
stockholders of $0.07 per share. Paid a full monthly
distribution of $0.14843750 per share for each of April and May
2014 to our holders of our then existing Series 2016 Term Preferred
Stock and an additional prorated 2 days for May 2014 of
$0.00989584, as a result of the voluntary redemption. Paid a
combined distribution of $0.19687500 per share in June 2014 to
holders of our new Series 2021 Term Preferred Stock for the
prorated portion of May 2014 and a full month of June 2014.
Third Quarter 2014 Results: Net Investment
Income for the quarters ended June 30 and March 31, 2014, were $5.1
million, or $0.24 per share, and $4.5 million, or $0.21 per share,
respectively. Net investment income increased by 12.9% in the
three months ended June 30, 2014, as compared to the prior quarter,
primarily due to the increase in other income, which consisted of
success fees of $0.7 million and dividend income and other fees of
$1.3 million received during the current quarter. The increase
in other income was partially offset by an increase in dividend
expense of $0.3 million for the three months ended June 30, 2014,
as compared to the prior period, which was due to the higher
monthly distribution amount on our Series 2021 Term Preferred
Stock, as compared to our Series 2016 Term Preferred Stock (as a
result of the greater number of outstanding shares, partially
offset by a lower rate).
Net Decrease in Net Assets Resulting from Operations for the
quarters ended June 30 and March 31, 2014 were ($20.2) million, or
($0.96) per share, and ($2.1) million, or ($0.10) per share,
respectively. The quarter over quarter decrease is primarily
due to a decrease in financial and operating performance of select
investments and, to a lesser extent, a decrease in certain
comparable multiples used for valuing several portfolio companies
during the quarter ended June 30, 2014.
Subsequent
Events: Subsequent to June 30, 2014, the
following significant event occurred:
- Portfolio Activity: Invested $7.1 million
in a combination of subordinated term debt and equity as a
follow-on investment in Francis Drilling Fluids,
Ltd. Additionally, received an aggregate of $5.8 million in
scheduled and unscheduled principal repayments from existing
portfolio companies, including two early payoffs either at or above
par totaling $5.4 million at cost.
- Distributions Declared: Declared the
following monthly cash distributions to stockholders:
Record Date |
Payment Date |
Distribution per Common
Share |
Distribution per Series 2021
Term Preferred Share |
July 25 |
August 5 |
$ 0.07 |
$ 0.140625 |
August 20 |
August 29 |
0.07 |
0.140625 |
August 20 |
September 30 |
0.07 |
0.140625 |
Total for the
Quarter |
$ 0.21 |
$ 0.421875 |
Conference Call for Stockholders: The Company
will hold its earnings release conference call on Thursday, July
31, 2014, at 8:30 a.m. EDT. Please call (855) 465-0177 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 August 31, 2014. To hear the replay,
please dial (855) 859-2056 and use conference number
59694882. The replay of the conference call 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.GladstoneCapital.com. The event
will be archived and available for replay on the Company's website
through September 30, 2014.
About Gladstone Capital Corporation: Gladstone
Capital Corporation is a publicly traded business development
company that invests in debt and equity securities, consisting
primarily of senior term loans, second term lien loans, and senior
subordinated term loans in small and medium sized businesses in the
United States. Including dividends through today, the Company
has paid 129 consecutive monthly cash distributions on its common
stock. Before the Company started paying monthly distributions, the
Company paid eight consecutive quarterly cash distributions on its
common stock. Information on the business activities of all the
Gladstone funds can be found at
www.gladstonecompanies.com.
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. For a description of certain risks that the
Company is or may be subject to, please refer to the factors
discussed under the captions "Cautionary Statement Concerning
Forward Looking Statements" and "Risk Factors" included in the
Company's filings with the SEC (www.sec.gov).
To obtain a paper copy of the Company's most recent Form 10-Q,
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 quarter ended June 30, 2014, 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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