Gladstone Capital Corporation
GLADSTONE CAPITAL CORP (Form: 8-K, Received: 05/03/2017 16:21:49)
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________

Form 8-K
______________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): May 3, 2017  

Gladstone Capital Corporation
(Exact Name of Registrant as Specified in Charter)

Maryland 811-000000
54-2040781
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification Number)

 

1521 Westbranch Drive, Suite 100
McLean, Virginia
22102
(Address of Principal Executive Offices)  (Zip Code)

(703) 287-5800
(Registrant's telephone number, including area code)


(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

  [   ]   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  [   ]   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  [   ]   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
  [   ]   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [   ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

 
 

Item 2.02. Results of Operations and Financial Condition.

On May 3, 2017, Gladstone Capital Corporation issued a press release announcing its financial results for the quarter ended March 31, 2017.  The text of the press release is included as an exhibit to this Current Report on Form 8-K.  The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits.

(d)           Exhibits.

Exhibit No.   Description
99.1   Press Release of Gladstone Capital Corporation, dated May 3, 2017.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

  Gladstone Capital Corporation
     
     
Date: May 3, 2017 By:  /s/ Nicole Schaltenbrand        
    Nicole Schaltenbrand
    Chief Financial Officer & Treasurer
   


EXHIBIT INDEX

 

Exhibit No.   Description
     
99.1   Press Release of Gladstone Capital Corporation, dated May 3, 2017.

Exhibit 99.1

Gladstone Capital Corporation Reports Financial Results for its Second Quarter Ended March 31, 2017

MCLEAN, Va., May 03, 2017 (GLOBE NEWSWIRE) -- Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”) today announced earnings for its second fiscal quarter ended March 31, 2017.  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:   March 31,
2017
  December 31,
2016
   Change   % Change  
                   
Total investment income   $ 8,793   $ 9,974   $ (1,181 ) (11.8 )%
Total expenses, net of credits   (3,434 ) (4,767 ) 1,333   (28.0 )
Net investment income   5,359   5,207   152   2.9  
Net investment income per common share   0.21   0.21      
Cash distribution per common share   0.21   0.21      
Net realized gain (loss)   45   (3,448 ) 3,493   (101.3 )
Net unrealized depreciation   (748 ) (843 ) 95   (11.3 )
Net increase in net assets resulting from operations   4,656   916   3,740   408.3  
Weighted average yield on interest-bearing investments   11.4 % 11.3 % 0.1   0.9  
Total invested   $ 39,611   $ 20,047   $ 19,564   97.6  
Total repayments and net proceeds   14,613   50,453   (35,840 ) (71.0 )
                   
As of:   March 31,
2017
  December 31,
2016
  Change   % Change  
Total investments, at fair value   $  

313,517
  $ 288,246   $ 25,271   8.8 %
Fair value, as a percent of cost   83.6 % 82.6 % 1.0 % 1.2  
Net asset value per common share   $ 8.33   $ 8.36   $ (0.03 ) (0.4 )
                         

Second Fiscal Quarter 2017 Highlights:

Second Fiscal Quarter 2017 Results :

Total investment income decreased by 11.8% compared to the prior quarter primarily due to a decrease in other income of $1.1 million related to success fees collected in conjunction with exits that occurred during the prior quarter. Total expenses decreased by 28.0% quarter over quarter, primarily as a result of a decrease in the net incentive fee and a decrease in professional and other general and administrative expenses.   

Net Investment Income for the quarter ending March 31, 2017 was $5.4 million, or $0.21 per share, an increase of 2.9% compared to the prior quarter. 

Net Increase in Net Assets Resulting from Operations for the quarter ended March 31, 2017 and December 31, 2016 was $4.7 million, or $0.18 per share, compared to $0.9 million, or $0.04 per share, respectively. The quarter over quarter increase was driven primarily by the change in net realized gain (loss) quarter over quarter. 

Subsequent Events:  Subsequent to March 31, 2017, the following significant events occurred:

             
Record Date   Payment Date   Distribution per
Common Share
  Distribution per
Series 2021 Term
Preferred Share
April 21   April 30   $ 0.07   $ 0.140625
May 19   May 31   0.07   0.140625
June 21   June 30   0.07   0.140625
Total for the Quarter   $ 0.21   $ 0.421875
             

Comments from Gladstone Capital’s President, Bob Marcotte: “These results represent an important transition for us, as we successfully reinvested the large prepayments experienced earlier in our fiscal year and the $47 million of net new originations closed since our last report will lift and strengthen our core interest earnings momentum going forward. While our fee income was off on the quarter, lower expenses and incentive fee credits offset the dip in total investment income and our NII covered 100% of our shareholder distributions. We maintained our investment yield and the portfolio performed well, as the overall valuation was largely unchanged continuing the improving trend in our long term return on equity performance. Between our available capital and health of the lower middle market investment opportunities, we continue to be well positioned to grow our investment portfolio and enhance shareholder returns.”

Conference Call for Stockholders: The Company will hold its earnings release conference call on Thursday, May 4, 2017, 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 June 4, 2017.  To hear the replay, please dial (855) 859-2056 and use conference number 56272750.  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 July 4, 2017.

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 lower middle market businesses in the United States.  Including distributions through today, the Company has paid 171 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 March 31, 2017, including the notes to the consolidated financial statements contained therein.

Investor Relations Inquiries: Please visit www.gladstone.com or +1-703-287-5893.