Gladstone Capital Corporation Reports Financial Results for its Third Quarter Ended June 30, 2016
04 August 2016 - 6:10AM
Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”) today
announced earnings for its third fiscal quarter ended June 30,
2016. 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):
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended: |
|
June
30,2016 |
|
March 31,2016 |
|
Change |
|
% Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
investment income |
|
$ |
9,844 |
|
|
$ |
9,456 |
|
|
$ |
388 |
|
|
4.1 |
% |
Total
expenses, net of credits |
|
(4,937 |
) |
|
(4,539 |
) |
|
|
(398 |
) |
|
8.8 |
|
Net
investment income |
|
4,907 |
|
|
4,917 |
|
|
|
(10 |
) |
|
(0.2 |
) |
Net
realized loss |
|
(84 |
) |
|
(5,521 |
) |
|
|
(5,437 |
) |
|
(98.5 |
) |
Net
unrealized appreciation (depreciation) |
|
693 |
|
|
(5,535 |
) |
|
|
6,228 |
|
|
NM |
|
Net
increase (decrease) in net assets resulting from operations |
|
5,516 |
|
|
(6,139 |
) |
|
|
11,655 |
|
|
NM |
|
Net
investment income per common share |
|
0.21 |
|
|
0.21 |
|
|
|
— |
|
|
— |
|
Cash
distribution per common share |
|
0.21 |
|
|
0.21 |
|
|
|
— |
|
|
— |
|
Weighted
average yield on interest-bearing investments |
|
10.9 |
% |
|
11.2 |
% |
|
|
(0.3 |
) |
|
(2.7 |
) |
Total
invested |
|
$ |
33,994 |
|
|
$ |
20,781 |
|
|
$ |
13,213 |
|
|
63.6 |
|
Total
repayments and net proceeds |
|
20,389 |
|
|
16,829 |
|
|
|
3,560 |
|
|
21.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
As of: |
|
June 30,2016 |
|
March 31,2016 |
|
Change |
|
% Change |
|
Total
investments, at fair value |
|
$ |
308,226 |
|
|
$ |
293,428 |
|
|
$ |
14,798 |
|
|
5.0 |
% |
Fair
value, as a percent of cost |
|
79.8 |
% |
|
78.8 |
% |
|
|
1.0 |
% |
|
1.3 |
|
Net
assets |
|
185,514 |
|
|
185,204 |
|
|
|
310 |
|
|
0.2 |
|
Net asset
value per common share |
|
$ |
7.95 |
|
|
$ |
7.92 |
|
|
$ |
0.03 |
|
|
0.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Fiscal Quarter 2016 Highlights:
- Portfolio Activity: Invested $32.0 million,
through secured first and second lien debt, in two new portfolio
companies and $2.0 million in existing portfolio companies.
Received $20.4 million in repayments and net proceeds from
portfolio companies.
- Recurring Distributions: Paid monthly
distributions for each of April, May and June 2016 to common
stockholders ($0.07 per common share) and to preferred stockholders
($0.140625 per share of the Company’s 6.75% Series 2021 Term
Preferred Stock).
Third Fiscal Quarter 2016 Results: Total
investment income increased by 4.1% quarter over quarter due to a
$0.8 million increase in other income driven primarily by an
increase in success fees received during the quarter. This
increase was partially offset by a $0.4 million decline in interest
income quarter over quarter due to a lower average interest bearing
investment portfolio and weighted average yield on investments.
Interest and financing expenses were relatively flat compared to
the prior quarter. Total non-interest expenses increased by $0.4
million, or 14.7%, quarter over quarter, primarily due to a $0.5
million decrease in incentive fee credits, when compared to the
quarter ended March 31, 2016. Net Investment Income for the
quarter ended June 30, 2016 was $4.9 million, or $0.21 per share,
which is consistent with the quarter ended March 31,
2016.
Net Increase in Net Assets Resulting from Operations was $5.5
million, or $0.24 per share for the quarter ended June 30, 2016,
compared to a net decrease of $6.1 million, or $0.26 per share for
the quarter ended March 31, 2016. The quarter over quarter increase
was primarily due to $0.7 million of net unrealized appreciation,
which was due to improved performance of certain of our portfolio
companies during the period.
Subsequent Events:
Subsequent to June 30, 2016, the following significant events
occurred:
- Portfolio Activity: On August 2, 2016, we
invested $10.0 million in Merlin International, Inc. through
secured second lien debt. Merlin is a provider of comprehensive
technology solutions focused on cybersecurity, network performance
management, data storage, and enterprise applications within the
government healthcare community.
- Distributions Declared: In July 2016,
our Board of Directors declared the following monthly cash
distributions to stockholders:
|
|
|
|
|
|
|
Record Date |
|
Payment Date |
|
Distribution perCommon Share |
|
Distribution per Series 2021 Term Preferred
Share |
July
22 |
|
August
2 |
|
$ |
0.07 |
|
$ |
0.140625 |
August
22 |
|
August
31 |
|
0.07 |
|
0.140625 |
September
21 |
|
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, August
4, 2016, 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 September 4, 2016. To hear the replay,
please dial (855) 859-2056 and use conference number
29786405. 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 4, 2016.
About Gladstone Capital Corporation: Gladstone
Capital Corporation is a publicly traded business development
company that invests in debt and equity securities, consisting
primarily of secured first and second lien term loans to small and
medium sized businesses in the United States. Including
distributions through today, the Company has paid 162 consecutive
monthly or quarterly 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 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, 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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