Gladstone Capital Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended September 30, 2019
Summary Information (dollars in thousands, except per share data) (unaudited):
For the Quarter Ended:
|Total investment income||$||12,718||$||12,886||$||(168||)||(1.3||)%|
|Total expenses, net of credits||(6,354||)||(6,673||)||319||(4.8||)|
|Net investment income||6,364||6,213||151||2.4|
|Net investment income per common share||0.21||0.21||—||—|
|Cash distribution per common share||0.21||0.21||—||—|
|Net realized gain (loss)||8,980||(807||)||9,787||(1,212.8||)|
|Net unrealized appreciation (depreciation)||(9,953||)||3,450||(13,403||)||(388.5||)|
|Net increase (decrease) in net assets resulting from operations||5,391||8,856||(3,465||)||(39.1||)|
|Weighted average yield on interest-bearing investments||12.5||%||11.8||%||0.7||%||5.9|
|Total repayments and net proceeds||28,827||41,850||(13,023||)||(31.1||)|
|As of:||September 30,
|Total investments, at fair value||$||402,875||$||407,559||$||(4,684||)||(1.1||)%|
|Fair value, as a percent of cost||94.0||%||96.3||%||(2.3||)%||(2.4||)|
|Net asset value per common share||$||8.22||$||8.23||$||(0.01||)||(0.1||)|
For the Year Ended:
|Total investment income||$||50,035||$||45,581||$||4,454||9.8||%|
|Total expenses, net of credits||(25,455||)||(22,493||)||(2,962||)||13.2|
|Net investment income||24,580||23,088||1,492||6.5|
|Net investment income per common share||0.84||0.85||(0.01||)||(1.2||)|
|Cash distribution per common share||0.84||0.84||—||—|
|Total net realized loss||(16,388||)||(26,196||)||9,808||(37.4||)|
|Total net unrealized appreciation||11,677||21,756||(10,079||)||(46.3||)|
|Net increase in net assets resulting from operations||19,869||18,648||1,221||6.5|
|Weighted average yield on interest-bearing investments||12.3||%||11.8||%||0.5||%||4.2|
|Total repayments and proceeds||131,061||67,944||63,117||92.9|
|As of:||September 30,
|Total investments, at fair value||$||402,875||$||390,046||$||12,829||3.3|
|Fair value as a percent of cost||94.0||%||91.2||%||2.8||%||3.1|
|Net asset value per common share||$||8.22||$||8.32||$||(0.10||)||(1.2||)|
Fourth Fiscal Quarter 2019 Highlights:
- Portfolio Activity: Invested
$13.0 millionin one new portfolio company and $11.7 millionin existing portfolio companies. Received $28.8 millionin repayments and net proceeds, including the exit of our investment in Alloy Die Casting Co.(“ADC”), which resulted in success fee income of $0.8 million, repayment of our debt investment of $5.7 millionat par and a realized gain of approximately $8.7 million.
- Equity Issuance: Issued 441,505 shares of common stock at a weighted-average price of
$9.49per share, or 115% of NAV, through our at-the-market program, generating net proceeds of $4.1 million.
- Distributions and Dividends: Maintained our monthly common stock distribution of
$0.07per share and monthly preferred stock dividend of $0.125per share on the Company’s 6.00% Series 2024 Term Preferred Stock.
Fourth Fiscal Quarter 2019 Results:
Interest income increased by
Net Investment Income for the quarter ended
The Net Increase in Net Assets Resulting from Operations was
Fiscal Year Ended 2019 Results:
Total investment income increased by 9.8% during the fiscal year ended
Net Investment Income for the years ended
Net Increase in Net Assets Resulting from Operations for the years ended
Subsequent Events: Subsequent to
• Capital Activity:
October 2019, we voluntarily redeemed all outstanding shares of our Series 2024 Term Preferred Stock at a redemption price of $25.00per share, which represents the liquidation preference per share, plus accrued and unpaid dividends through October 1, 2019in the amount of $0.004166per share, for a payment per share of $25.004166and an aggregate redemption price of approximately $51.8 million.
October 2019, we completed a public debt offering of $38.8 millionaggregate principal amount of 5.375% Notes due 2024, inclusive of the overallotment, for net proceeds of approximately $37.5 million.
• Portfolio Activity:
October 2019, we invested $14.0 millionin Universal Survey Center, Inc.through secured first lien debt.
October 2019, we invested an additional $3.0 millionin Medical Solutions Holdings, Inc., an existing portfolio company, through secured second lien debt.
• Distributions and Dividends Declared: In
|Record Date||Payment Date||Distribution per
|October 22, 2019||October 31, 2019||$||0.07|
|November 19, 2019||November 29, 2019||0.07|
|December 19, 2019||December 31, 2019||0.07|
|Total for the Quarter||$||0.21|
Comments from Gladstone Capital’s President,
Conference Call for Stockholders: The Company will hold its earnings release conference call on
To obtain a paper copy of the Company’s most recent Form 10-K, please contact the Company at
Investor Relations Inquiries: Please visit www.gladstonecompanies.com or +1-703-287-5893.
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 our 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 our filings with the
Source: Gladstone Capital Corporation