MCLEAN, Va., July 29, 2013 /PRNewswire/ -- Gladstone
Investment Corporation (NASDAQ: GAIN) (the "Company") today
announced earnings for its first quarter ended June 30, 2013. Please read the Company's
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.gladstoneinvestment.com.
(Logo:
http://photos.prnewswire.com/prnh/20101005/GLADSTONEINVESTMENT)
Summary Information: (dollars in thousands,
except per share data):
|
|
June
30,
2013
|
|
March
31,
2013
|
|
Change
|
|
%
Change
|
For the Quarter
Ended:
|
|
|
|
|
|
|
|
|
Total investment
income
|
|
$
|
7,398
|
|
$
|
10,476
|
|
$
|
(3,078)
|
|
(29.4)%
|
Total
expenses
|
|
(3,365)
|
|
(4,629)
|
|
1,264
|
|
(27.3)
|
Net investment
income
|
|
4,033
|
|
5,847
|
|
(1,814)
|
|
(31.0)
|
Net investment income
per common share
|
|
0.15
|
|
0.22
|
|
(0.07)
|
|
(30.8)
|
Cash distribution per
common share
|
|
0.15
|
|
0.15
|
|
—
|
|
—
|
Total realized
loss
|
|
—
|
|
(6)
|
|
6
|
|
NM
|
Total unrealized
(depreciation) appreciation
|
|
(10,522)
|
|
10,107
|
|
(20,659)
|
|
NM
|
Net (decrease)
increase in net assets resulting from operations
|
|
(6,519)
|
|
15,948
|
|
(22,467)
|
|
NM
|
Weighted average
yield on interest-bearing investments
|
|
12.5%
|
|
12.4%
|
|
0.1%
|
|
0.9
|
Total dollars
invested
|
|
$
|
35,590
|
|
$
|
2,863
|
|
$
|
32,727
|
|
1,143.1
|
Total dollars
repaid
|
|
2,340
|
|
4,105
|
|
(1,765)
|
|
(43.0)
|
|
|
|
|
|
|
|
|
|
As
of:
|
|
|
|
|
|
|
|
|
Total investments at
fair value
|
|
$
|
308,327
|
|
$
|
286,482
|
|
$
|
21,845
|
|
7.6%
|
Fair value as a
percent of cost
|
|
85.7%
|
|
87.8%
|
|
(2.1)%
|
|
(2.4)
|
Total net
assets
|
|
$
|
230,472
|
|
$
|
240,963
|
|
$
|
(10,491)
|
|
(4.4)
|
Net asset value per
common share
|
|
8.70
|
|
9.10
|
|
(0.40)
|
|
(4.4)
|
Asset coverage
ratio
|
|
283%
|
|
272%
|
|
11%
|
|
4.0
|
Number of portfolio
companies
|
|
24
|
|
21
|
|
3
|
|
14.3
|
NM=Not
Meaningful
|
|
|
|
|
|
|
|
|
Highlights for the Quarter: During the quarter
ended June 30, 2013, the following
significant events occurred:
- Portfolio Activity: The Company invested an aggregate of
$34.6 million in new debt and equity
investments to Jackrabbit, Inc., Funko, LLC (a co-investment with
one of our affiliated funds, Gladstone Capital Corporation,
pursuant to an exemptive order granted by the SEC) and Star Seed, Inc. Additionally, the Company
extended $1.0 million to an existing
portfolio company and received an aggregate of $2.3 million in scheduled and unscheduled
principal repayments from existing portfolio companies.
- Credit Facility Extension and Expansion: The Company
extended its Credit Facility's maturity date approximately six
months to April 30, 2016 and
increased the size of the Credit Facility from $60.0 million to $105.0
million with the addition of two additional
lenders.
- Recurring Distributions: The Company paid monthly
cash distributions for each of April, May and June 2013 to common stockholders of $0.05 per common share and to preferred
stockholders of $0.1484375 per
preferred share of the Company's 7.125% Series A Cumulative Term
Preferred Stock ("Term Preferred Stock").
First Quarter 2014 Results: Net Investment
Income for the quarters ended June 30,
2013 and March 31, 2013 was
$4.0 million, or $0.15 per share, and $5.9
million, or $0.22 per share,
respectively, a decrease of 31.0%. The decrease in Net
Investment Income for the quarter ended June
30, 2013, as compared to the prior quarter, was primarily
due to the conversion of $8.2 million
of Galaxy Tool Holdings Corp. preferred stock and its related
$4.1 million in accrued dividends
into a new $12.3 million senior
subordinated debt investment through a non-cash transaction
recognizing $4.1 million in dividend
income related to the recapitalization in the prior quarter.
This was partially offset by a decrease in the incentive fee
expense by $2.4 million when compared
to the prior quarter.
Net (Decrease) Increase in Net Assets Resulting from Operations
for the quarters ended June 30, 2013
and March 31, 2013 was $(6.5) million, or $(0.25) per share, and $15.9 million, or $0.60 per share, respectively. The quarter
over quarter change is primarily due to net unrealized depreciation
in the quarter ended June 30, 2013,
as compared to net unrealized appreciation in the prior quarter and
a decrease in Net Investment Income as described above.
Subsequent Events: After June 30, 2013, the following events occurred:
- Distributions Declared: Declared the following
monthly cash distributions to stockholders:
Record
Date
|
|
Payment
Date
|
|
Distribution
per
Common
Share
|
|
Distribution per
Term
Preferred
Share
|
July 19,
2013
|
|
July 31,
2013
|
|
$
|
0.05
|
|
$
|
0.1484375
|
August 21,
2013
|
|
August 30,
2013
|
|
0.05
|
|
0.1484375
|
September 18,
2013
|
|
September 30,
2013
|
|
0.05
|
|
0.1484375
|
|
|
Total for the
Quarter
|
|
$
|
0.15
|
|
$
|
0.4453125
|
Conference Call for Stockholders: The Company will
hold its earnings release conference call Wednesday, July 30, 2013, at 8:30 a.m. EDT. Please call (800) 860-2442
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 30,
2013. To hear the replay, please dial (877) 344-7529 and use
conference number 10028879. 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 September 30, 2013.
About Gladstone Investment
Corporation: Gladstone Investment Corporation is a
publicly traded business development company that seeks to make
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 97 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.
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 to which the
Company is or may be subject, 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 (accessible at www.sec.gov).
To obtain a paper copy of the Form 10-Q filed today with the
SEC, please contact the Company at 1521 Westbranch Drive, Suite
200, 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, 2013, including the notes to
the consolidated financial statements contained therein.
SOURCE Gladstone Investment Corporation