Gladstone Capital Corporation
GLADSTONE CAPITAL CORP (Form: 8-K, Received: 08/02/2017 16:17:49)
 

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): August 2, 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 August 2, 2017, Gladstone Capital Corporation issued a press release announcing its financial results for the quarter ended June 30, 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 August 2, 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: August 2, 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 August 2, 2017.

EXHIBIT 99.1

Gladstone Capital Corporation Reports Financial Results for its  Third Quarter Ended June 30, 2017

MCLEAN, Va., Aug. 02, 2017 (GLOBE NEWSWIRE) -- Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”) today announced earnings for its third fiscal quarter ended June 30, 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:   June 30,
2017
  March 31,
2017
  Change   % Change  
                   
Total investment income   $ 9,632   $ 8,793   $ 839   9.5 %
Total expenses, net of credits   (4,253 ) (3,434 ) (819 ) 23.8  
Net investment income   5,379   5,359   20   0.4  
Net investment income per common share   0.21   0.21      
Cash distribution per common share   0.21   0.21      
Net realized (loss) gain   (23 ) 45   (68 ) (151.1 )
Net unrealized appreciation (depreciation)   807   (748 ) 1,555   (207.9 )
Net increase in net assets resulting from operations   6,163   4,656   1,507   32.4  
Weighted average yield on interest-bearing investments   11.5 % 11.4 % 0.1   0.9  
Total invested   $ 35,791   $ 39,611   $ (3,820 ) (9.6 )
Total repayments and net proceeds   6,015   14,613   (8,598 ) (58.8 )
                   
As of:   June 30,
2017
  March 31,
2017
  Change   % Change  
Total investments, at fair value   $  

345,503
  $ 313,517   $ 31,986   10.2 %
Fair value, as a percent of cost   85.1 % 83.6 % 1.5 % 1.8  
Net asset value per common share   $ 8.38   $ 8.33   $ 0.05   0.6  

Third Fiscal Quarter 2017 Highlights:

Third Fiscal Quarter 2017 Results :

Total investment income increased by 9.5% compared to the prior quarter, primarily due to a quarter over quarter increase of 9.0% in the weighted average principal balance of our interest-bearing investment portfolio driven by the portfolio activity noted above. Total expenses increased by 23.8% quarter over quarter, primarily as a result of an increase in interest expense, due to a higher weighted average balance outstanding on our credit facility, and an increase net management and incentive fees.

Net Investment Income for the quarter ending June 30, 2017 was $5.4 million, or $0.21 per share, which is consistent with the prior quarter ended March 31, 2017.   

Net Increase in Net Assets Resulting from Operations for the quarter ended June 30, 2017 and March 31, 2017 was $6.2 million, or $0.24 per share, compared to $4.7 million, or $0.18 per share, respectively. The quarter over quarter increase was driven primarily by the change in net unrealized appreciation quarter over quarter. 

Subsequent Events:  Subsequent to June 30, 2017, the following significant event occurred:


  Record Date     Payment Date   Distribution per
Common Share
  Dividend per
Series 2021 Term
Preferred Share
 
  July 21     July 31   $   0.07     $   0.140625  
  August 21     August 31   0.07     0.140625  
  September 20 (A)     September 29   0.07       0.140625  
            Total for the Quarter   $ 0.21     $ 0.421875  

   

(A)   Previously, on July 11, 2017, the Company announced an ex-dividend date of September 18, 2017 for the September 2017 distribution and dividend. As an update to the Company’s previous announcement, the Company notes that the ex-dividend date for the September 2017 distribution and dividend is September 19, 2017.


Comments from Gladstone Capital’s President, Bob Marcotte: “The combination of asset growth and sustained investment yields delivered during the quarter significantly enhanced our core interest earnings.  While fee income declined, expense management and management fee credits contributed to NII which covered 100% of our shareholder distributions.  The portfolio valuation and NAV improved modestly continuing our drive to deliver a more consistent and improved return on equity performance.  By continuing to capitalize on our lower middle market investment focus, incremental leverage capacity and the expectation of higher floating rates on our portfolio, we believe 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, August 3, 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 September 3, 2017.  To hear the replay, please dial (855) 859-2056 and use conference number 54336457.  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 October 3, 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 174 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, 2017, including the notes to the consolidated financial statements contained therein.

Forward-looking Statements:
The statements in this press release about future growth and shareholder returns are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  These forward-looking statements inherently involve certain risks and uncertainties in predicting future results and conditions. Although these statements are based on Gladstone Capital’s current plans that are believed to be reasonable as of the date of this press release, a number of factors could cause actual results and conditions to differ materially from these forward-looking statements, including those factors described from time to time in Gladstone Capital’s filings with the U.S. Securities and Exchange Commission. Gladstone Capital undertakes no obligation to publicly release the result of any revisions to these forward looking statements that may be made to reflect any future events or otherwise, except as required by law.

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