GSV Capital Corp. Reports First Quarter 2017 Financial Results
May 09 2017 - 4:10PM
GSV Capital Corp. (“GSV Capital” or the “Company”)
(Nasdaq:GSVC) today announced financial results for the quarter
ended March 31, 2017. Net assets totaled approximately $195.9
million, or $8.83 per share, at March 31, 2017, as compared to
$8.66 per share at December 31, 2016.
“We launched GSV Capital to create broader access to the most
dynamic venture-backed private companies in the world and we are
pleased to report continued strong fundamentals in our portfolio,”
said Michael Moe, Chief Executive Officer of GSV Capital.
“Historically, leading portfolio positions with a runway to IPO
have been a positive catalyst for GSV Capital, and we are
encouraged by the signals we have seen from public markets to
date.”
Notably, on March 1, 2017, GSV Capital portfolio company Snap
Inc. completed a $3.4 billion IPO. According to Nasdaq, this was
the largest public offering for a U.S. technology company since
Facebook’s IPO in 2012.
Investment Portfolio as of March 31, 2017
At March 31, 2017, GSV Capital held positions in 39 portfolio
companies with an aggregate fair value of approximately $270.7
million. Excluding Treasuries, the Company’s top ten portfolio
company investments accounted for 59.9% of the total portfolio at
fair value.
Top Ten Investments at March 31, 2017 |
|
|
|
|
|
|
$ in
millions (rounded) |
|
Fair
Value |
|
% of
Total Portfolio |
|
Palantir Technologies,
Inc. |
|
$39.1 |
|
14.4 |
% |
Spotify Technology
S.A. |
|
19.6 |
|
7.2 |
|
Dropbox, Inc. |
|
17.1 |
|
6.3 |
|
General Assembly Space,
Inc. |
|
15.1 |
|
5.6 |
|
JAMF Holdings,
Inc. |
|
14.9 |
|
5.5 |
|
Coursera, Inc. |
|
14.5 |
|
5.4 |
|
Lytro, Inc. |
|
10.9 |
|
4.0 |
|
Course Hero, Inc. |
|
10.5 |
|
3.9 |
|
Ozy Media, Inc. |
|
10.5 |
|
3.9 |
|
Chegg, Inc. |
|
10.0 |
|
3.7 |
|
Total (rounded) |
|
$162.1 |
|
59.9 |
% |
Of the five key investment themes GSV Capital has identified in
its portfolio as of March 31, 2017, Education Technology is its
largest commitment, accounting for 36.6% of the total portfolio
(excluding treasuries) at fair value. Cloud Computing and Big Data
represents 34.2% of the total portfolio (excluding treasuries) at
fair value, and Social Mobile, Marketplaces and Sustainability
represent 17.6%, 10.1% and 1.5% of the total portfolio (excluding
treasuries) at fair value, respectively. First Quarter 2017
Portfolio Investment Activity
During the three months ended March 31, 2017, GSV Capital did
not purchase or sell any investments.
First Quarter 2017 Financial Results
|
|
Quarter Ended March 31,
2017 |
Quarter EndedMarch 31,
2016 |
|
$ in millions (rounded) |
|
per share |
|
$ in millions (rounded) |
|
per share |
Net investment
gain/(loss) |
|
$(4.8 |
) |
|
$(0.22 |
) |
|
$0.5 |
|
|
$0.02 |
|
|
|
|
|
|
|
Net realized
losses |
|
$(24.7 |
) |
|
$(1.11 |
) |
|
$(6.1 |
) |
|
$(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized appreciation/(depreciation) of investments |
|
$33.3 |
|
|
$1.50 |
|
|
$(19.4 |
) |
|
$(0.87 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net increase/(decrease)
in net assets resulting from operations - basic |
|
$3.8 |
|
|
$0.17 |
|
|
$(24.9 |
) |
|
$(1.12 |
) |
|
|
|
|
|
|
Weighted-average common basic shares outstanding were
approximately 22.2 million for each of the quarters ended March 31,
2017 and 2016.
GSV Capital’s liquid assets were $17.2 million as of March 31,
2017, consisting of $1.4 million of cash, $10.0 million of
public securities not subject to lock-up agreements and $5.9
million of public securities subject to a lock-up agreement.
Recent Developments
Subsequent to quarter end, from March 31, 2017 through May 9,
2017, GSV Capital did not purchase or sell any investments.
Conference Call and Webcast
Management will hold a conference call and webcast for investors
today at 2:00 p.m. PT (5:00 p.m. ET). The conference call access
number for U.S. participants is 888-677-8815, and the
conference call access number for participants outside the
U.S. is 913-312-0650. The conference ID number for both
access numbers is 1306975. Additionally, interested
parties can listen to a live webcast of the call from the "Investor
Relations" section of GSV Capital's website at
http://investors.gsvcap.com/. An archived replay of the webcast
will also be available for 12 months following the live
presentation.
A replay of the conference call may be accessed until
5:00 p.m. PT (8:00 p.m. ET) on May 16, 2017 by
dialing 866-375-1919 (U.S.) or 1 719-457-0820
(International) and using conference ID number 1306975.
About GSV Capital
Corp.
GSV Capital Corp. (GSVC) is a publicly traded investment fund
that seeks to invest in high-growth, venture-backed private
companies. Led by industry veteran Michael Moe, the Company seeks
to create a portfolio of high-growth emerging private companies via
a repeatable and disciplined investment approach, as well as to
provide investors with access to such companies through its
publicly traded common stock. GSV Capital is headquartered in
Woodside, CA. www.gsvcap.com
Follow GSV Capital on Twitter: @gsvcap
Forward-Looking Statements
Statements included herein may constitute “forward-looking
statements,” which relate to future events or our future
performance or financial condition. These statements are not
guarantees of our future performance, condition or results of
operations and involve a number of risks and uncertainties. Actual
results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those
described from time to time in our filings with the SEC. GSV
Capital Corp. undertakes no duty to update any forward-looking
statements made herein, unless required to do so by law.
GSV CAPITAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND
LIABILITIES (Unaudited) |
|
|
|
|
|
March 31, 2017 |
|
December 31, 2016 |
ASSETS |
|
|
|
Investments at fair
value: |
|
|
|
|
|
Investments in controlled securities (cost of $22,941,049 and
$22,893,441, respectively) (1) |
$ |
20,777,821 |
|
|
$ |
19,037,566 |
|
Investments in affiliated securities (cost of $49,873,338 and
$51,773,388, respectively) (1) |
|
41,971,308 |
|
|
|
42,444,690 |
|
Investments in non-controlled/non-affiliated securities (cost of
$181,314,443 and $204,101,445, respectively) |
|
207,905,578 |
|
|
|
200,532,890 |
|
Investments in treasury bill (cost of $59,996,000 and $29,998,750,
respectively) |
|
59,997,000 |
|
|
|
29,998,490 |
|
Total
Investments (cost of $314,124,830 and $308,767,024,
respectively) |
|
330,651,707 |
|
|
|
292,013,636 |
|
|
|
|
|
|
|
Cash |
|
1,358,545 |
|
|
|
8,332,634 |
|
Interest and dividends
receivable |
|
205,680 |
|
|
|
92,946 |
|
Prepaid expenses and
other assets |
|
157,667 |
|
|
|
213,942 |
|
Deferred financing
costs |
|
329,625 |
|
|
|
311,268 |
|
Total Assets |
|
332,703,224 |
|
|
|
300,964,426 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Due to: |
|
|
|
|
|
GSV Asset
Management (1) |
|
59,864 |
|
|
|
422,025 |
|
Accounts payable and
accrued expenses |
|
241,526 |
|
|
|
335,611 |
|
Accrued incentive fees
(1) |
|
3,843,752 |
|
|
|
2,126,444 |
|
Accrued management fees
(1) |
|
424,206 |
|
|
|
524,054 |
|
Accrued interest
payable |
|
150,936 |
|
|
|
1,056,563 |
|
Payable for securities
purchased |
|
53,996,000 |
|
|
|
26,498,750 |
|
Deferred tax
liability |
|
10,359,371 |
|
|
|
10,359,371 |
|
Convertible Senior
Notes payable 5.25% due September 15, 2018 (2) |
|
67,715,873 |
|
|
|
67,512,798 |
|
Total Liabilities |
|
136,791,528 |
|
|
|
108,835,616 |
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
Net
Assets |
$ |
195,911,696 |
|
|
$ |
192,128,810 |
|
|
|
|
|
|
|
NET
ASSETS |
|
|
|
|
|
Common stock, par value
$0.01 per share |
|
|
|
|
|
(100,000,000 authorized; 22,181,003 and 22,181,003 issued and
outstanding, respectively) |
$ |
221,810 |
|
|
$ |
221,810 |
|
Paid-in capital in
excess of par |
|
221,237,636 |
|
|
|
221,237,636 |
|
Accumulated net
investment loss |
|
(6,252,208 |
) |
|
|
(1,443,996 |
) |
Accumulated net
realized losses on investments |
|
(25,463,049 |
) |
|
|
(773,882 |
) |
Accumulated net
unrealized appreciation/(depreciation) of investments |
|
6,167,507 |
|
|
|
(27,112,758 |
) |
Net Assets |
$ |
195,911,696 |
|
|
$ |
192,128,810 |
|
|
|
|
|
|
|
Net Asset Value Per Share |
$ |
8.83 |
|
|
$ |
8.66 |
|
|
|
|
|
|
|
(1)
This balance is a related-party transaction. |
(2)
The Convertible Senior Notes have a face value of $69,000,000. |
|
GSV CAPITAL CORP. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Three months ended |
|
|
|
March 31, 2017 |
|
|
March 31, 2016 |
INVESTMENT
INCOME |
|
|
|
|
|
|
Interest income from
controlled securities (1) |
|
$ |
59,409 |
|
|
$ |
4,889 |
|
Interest income from
affiliated securities (1) |
|
|
95,677 |
|
|
|
92,478 |
|
Interest income from
non-controlled/non-affiliated securities |
|
|
8,373 |
|
|
|
5,285 |
|
Dividend income from
controlled securities (1) |
|
|
175,000 |
|
|
|
- |
|
Total Investment Income |
|
|
338,459 |
|
|
|
102,652 |
|
|
|
|
|
|
|
|
OPERATING
EXPENSES |
|
|
|
|
|
|
Management fees
(1) |
|
|
1,272,618 |
|
|
|
1,958,000 |
|
(Reversal of Incentive
fee accrual)/Incentive fees (1) |
|
|
1,717,308 |
|
|
|
(5,118,584 |
) |
Costs incurred under
Administration Agreement (1) |
|
|
531,484 |
|
|
|
599,950 |
|
Directors’ fees |
|
|
82,917 |
|
|
|
86,250 |
|
Professional fees |
|
|
262,190 |
|
|
|
637,128 |
|
Interest expense |
|
|
1,126,773 |
|
|
|
1,183,163 |
|
Income tax expense |
|
|
800 |
|
|
|
- |
|
Other expenses |
|
|
152,581 |
|
|
|
209,738 |
|
Total
Operating Expenses |
|
|
5,146,671 |
|
|
|
(444,355 |
) |
|
|
|
|
|
|
|
Net Investment Income/(Loss) |
|
|
(4,808,212 |
) |
|
|
547,007 |
|
|
|
|
|
|
|
|
Net Realized Losses: |
|
|
|
|
|
|
From
affiliated securities |
|
|
(1,903,414 |
) |
|
|
- |
|
From
non-controlled/non-affiliated securities |
|
|
(22,785,753 |
) |
|
|
(6,075,070 |
) |
Net Realized Losses on Investments |
|
|
(24,689,167 |
) |
|
|
(6,075,070 |
) |
|
|
|
|
|
|
|
Net Change in Unrealized |
|
|
|
|
|
|
Appreciation/(Depreciation) of Investments: |
|
|
|
|
|
|
From
controlled securities |
|
|
1,692,647 |
|
|
|
(266,728 |
) |
From
affiliated securities |
|
|
1,426,668 |
|
|
|
(1,148,187 |
) |
From
non-controlled/non-affiliated securities |
|
|
30,160,950 |
|
|
|
(18,006,086 |
) |
Net Change in Unrealized |
|
|
|
|
|
|
Appreciation/(Depreciation) of
Investments |
|
|
33,280,265 |
|
|
|
(19,421,001 |
) |
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets |
|
|
|
|
|
|
Resulting from Operations |
|
$ |
3,782,886 |
|
|
$ |
(24,949,064 |
) |
|
|
|
|
|
|
|
Net Increase/(Decrease) in Net Assets
Resulting |
|
|
|
|
|
|
from Operations per Common Share |
|
|
|
|
|
|
Basic |
|
$ |
0.17 |
|
|
$ |
(1.12 |
) |
Diluted (2) |
|
$ |
0.17 |
|
|
$ |
(1.12 |
) |
|
|
|
|
|
|
|
Weighted-Average Common Shares Outstanding |
|
|
|
|
|
|
Basic |
|
|
22,181,003 |
|
|
|
22,181,003 |
|
Diluted (2) |
|
|
22,181,003 |
|
|
|
22,181,003 |
|
|
|
|
|
|
|
|
|
|
(1)
This balance is a related-party transaction. |
(2)
For the three months ended March 31, 2017 and 2016, 5,751,815 and
5,710,212 potentially dilutive common shares, respectively, were
excluded from the weighted-average common shares outstanding for
diluted net increase/(decrease) in net assets resulting from
operations per common share because the effect of these shares
would have been anti-dilutive. |
|
|
|
|
|
|
|
|
|
GSV CAPITAL CORP. AND SUBSIDIARIES |
FINANCIAL HIGHLIGHTS (Unaudited) |
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
|
Three months ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
Per Share
Data |
2017 |
|
|
2016 |
|
|
Net asset value at
beginning of period |
$ |
8.66 |
|
|
|
$ |
12.08 |
|
|
|
Net investment
income/(loss) |
|
(0.22 |
) |
(1) |
|
|
0.02 |
|
(1) |
|
Realized loss |
|
(1.11 |
) |
(1) |
|
|
(0.27 |
) |
(1) |
|
Change in unrealized
appreciation/(depreciation) |
|
1.50 |
|
(1) |
|
|
(0.87 |
) |
(1) |
|
Net asset value at end
of period |
$ |
8.83 |
|
|
|
$ |
10.96 |
|
|
|
|
|
|
|
|
|
|
|
|
Per share market value
at end of period |
$ |
4.48 |
|
|
|
$ |
5.60 |
|
|
|
Total return based on
market value |
|
(10.93 |
) |
%(2) |
|
|
(15.28 |
) |
%(2) |
|
Total return based on
net asset value |
|
1.96 |
|
%(2) |
|
|
(9.27 |
) |
%(2) |
|
Shares outstanding at
end of period |
|
22,181,003 |
|
|
|
|
22,181,003 |
|
|
|
|
|
|
|
|
|
|
|
|
Ratios /
Supplemental Data: |
|
|
|
|
|
|
|
|
Net assets at end of
period |
$ |
195,911,696 |
|
|
|
$ |
243,061,881 |
|
|
|
Average net assets |
$ |
191,439,679 |
|
|
|
$ |
275,907,870 |
|
|
|
|
|
|
|
|
|
|
|
|
Annualized
Ratios |
|
|
|
|
|
|
|
|
Ratio of gross
operating expenses to average net assets (3) |
|
10.90 |
|
% |
|
|
(0.65 |
) |
% |
|
Ratio of net income tax
provisions to average net assets (3) |
|
- |
|
% |
|
|
- |
|
% |
|
Ratio of net operating
expenses to average net assets (3) |
|
10.90 |
|
% |
|
|
(0.65 |
) |
% |
|
|
|
|
|
|
|
|
|
|
Ratio of
net investment loss to average net assets (3) |
|
(10.19 |
) |
% |
|
|
0.80 |
|
% |
|
Portfolio Turnover
Ratio |
|
0.00 |
|
% |
|
|
1.49 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Based on weighted-average number of shares outstanding for
the period. |
(2) Total
return based on market value is based on the change in market price
per share between the opening and ending market values per share in
the period. Total return based on net asset value is based upon the
change in net asset value per share between the opening and ending
net asset values per share. |
(3) Financial Highlights for periods of less than one year are
annualized and the ratios of operating expenses to average net
assets and net investment loss to average net assets are adjusted
accordingly. Non-recurring expenses are not annualized. For each of
the three months ended March 31, 2017 and 2016, the Company did not
incur any non-recurring expenses. Because the ratios are calculated
for the Company’s common stock taken as a whole, an individual
investor’s ratios may vary from these ratios. |
|
Contact
GSV Capital Corp.
(650) 235-4769
IR@gsvam.com
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