Gladstone Capital Corporation Reports Financial Results for its Second Quarter Ended March 31, 2020
Summary Information (dollars in thousands, except per share data) (unaudited):
For the Quarter Ended:
|Total investment income||$||11,492||$||12,159||$||(667||)||(5.5||)%|
|Total expenses, net of credits||(4,945||)||(5,742||)||797||(13.9||)|
|Net investment income||6,547||6,417||130||2.0|
|Net investment income per common share||0.21||0.21||—||—|
|Cash distribution per common share||0.21||0.21||—||—|
|Net realized gain (loss)||(3,070||)||(5,841||)||2,771||(47.4||)|
|Net unrealized appreciation (depreciation)||(31,252||)||122||(31,374||)||NM|
|Net increase (decrease) in net assets resulting from operations||(27,775||)||698||(28,473||)||NM|
|Weighted average yield on interest-bearing investments||10.9||%||11.3||%||(0.4||)%||(3.5||)|
|Total repayments and net proceeds||26,405||12,631||13,774||109.0|
|Total investments, at fair value||$||
|Fair value, as a percent of cost||87.5||%||94.4||%||(6.9||)%||(7.3||)|
|Net asset value per common share||$||6.99||$||8.08||$||(1.09||)||(13.5||)|
Second Fiscal Quarter 2020 Highlights:
- Net Investment Income: Increased to
$6.5 millionand covered 100% of shareholder distributions.
- Net Unrealized Depreciation: Increased to
$31.3 millionwith the elevated market yields and economic uncertainty associated with the COVID-19 pandemic.
- Portfolio Activity: Invested
$19.0 millionin one new portfolio company and $10.8 millionin existing portfolio companies to support acquisitions or growth expenditures. Received $26.4 millionin repayments and net proceeds.
- Equity Issuance: Issued 141,685 shares of common stock at a weighted-average price of
$10.46per share, through our at-the-market program, generating net proceeds of $1.5 million.
- Conservative Capital Base: Maintained a debt-to-equity ratio of 86.3%.
- Net Asset Value:
$217.9 millionor $6.99per share as of March 31, 2020.
- Distributions: Paid a monthly common stock distribution of
Second Fiscal Quarter 2020 Results:
Interest income decreased by
Net Investment Income for the quarter ended
Subsequent Events: Subsequent to
- Portfolio Activity: In
April 2020, we invested $30.0 millionin a new proprietary investment through secured second lien debt.
- Credit Facility: In
April 2020, we entered into Amendment No. 6 to our Credit Facility, which extended the revolving period end date by approximately six months to July 15, 2021, included certain LIBOR transition considerations and decreased the commitment amount from $190 millionto $180 million.
- Transactions with the Advisor: In
April 2020, we amended and restated our existing advisory agreement with our Adviser as approved by our Board of Directors to increase the hurdle rate included in the calculation of the Incentive Fee from 7% to 8% for the period beginning April 1, 2020through March 31, 2021. Specifically, the hurdle rate was increased from 1.75% per quarter (7% annualized) to 2.00% per quarter (8% annualized) and the excess Incentive Fee hurdle rate was increased from 2.1875% per quarter (8.75% annualized) to 2.4375% per quarter (9.75% annualized). The calculation of the other fees in the Advisory Agreement remain unchanged. The revised Incentive Fee calculation will begin with the fee calculations for the quarter ending June 30, 2020. All other terms of the Advisory Agreement remained the same.
- Distributions Declared: In
April 2020, our Board of Directors declared the following monthly distributions to common stockholders for April, May and June:
|Record Date||Payment Date||Distribution per Common Share|
|Total for the Quarter||$||0.195|
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-Q, 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