Gladstone Capital Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended September 30, 2016
Summary Information (dollars in thousands, except per share data) (unaudited):
|For the Quarter Ended:|
|Total investment income||$||9,749||$||9,844||$||(95||)||(1.0||)%|
|Total expenses, net of credits||(4,847||)||(4,937||)||90||(1.8||)|
|Net investment income||4,902||4,907||(5||)||(0.1||)|
|Net investment income per common share||0.21||0.21||—||—|
|Cash distribution per common share||0.21||0.21||—||—|
|Net realized loss||(2,621||)||(84||)||(2,537||)||NM|
|Net unrealized appreciation||18,414||693||17,721||NM|
|Net increase in net assets resulting from operations||20,695||5,516||15,179||275.2|
|Weighted average yield on interest-bearing investments||11.0||%||10.9||%||0.1||%||0.9|
|Total repayments and proceeds||22,719||20,389||2,330||11.4|
|Total investments, at fair value||$||322,114||$||308,226||$||13,888||4.5||%|
|Fair value, as a percent of cost||84.4||%||79.8||%||4.6||%||5.8|
|Net asset value per common share||$||8.62||$||7.95||$||0.67||8.4|
|For the Year Ended:|
|Total investment income||$||39,112||$||38,058||$||1,054||2.8||%|
|Total expenses, net of credits||(19,625||)||(20,358||)||(733||)||(3.6||)|
|Net investment income||19,487||17,700||1,787||10.1|
|Net investment income per common share||0.84||0.84||—||—|
|Cash distribution per common share||0.84||0.84||—||—|
|Total net realized gain (loss)||7,152||(34,176||)||41,328||NM|
|Total net unrealized (depreciation) appreciation||(15,272||)||24,960||(40,232||)||NM|
|Net increase in net assets resulting from operations||11,367||8,484||2,883||34.0|
|Weighted average yield on interest-bearing investments||11.1||%||10.9||%||0.2||%||1.8|
|Total repayments and proceeds||130,666||40,273||90,393||224.5|
|Total investments, at fair value||$||322,114||$||365,891||$||(43,777||)||(12.0||)|
|Fair value as a percent of cost||84.4||%||89.2||%||(4.8||)||(5.4||)|
|Net asset value per common share||$||8.62||$||9.06||$||(0.44||)||(4.9||)|
Fourth Fiscal Quarter 2016 Highlights:
- Portfolio Activity: Invested
$19.5 millionin three new portfolio companies and $0.7 millionin existing portfolio companies. Received $22.7 millionin repayments and net proceeds from portfolio companies.
- Portfolio Appreciation: Reported a net realized and unrealized gain of
$15.8 million, or $0.68per share, primarily due to unrealized appreciation on RBC Acquisition Corp.("RBC"), which was driven by proceeds received associated with the sale of the investment in November 2016.
- Recurring Distributions: Paid monthly distributions for each of July, August and
September 2016to common stockholders ( $0.07per common share) and to preferred stockholders ( $0.140625per share of the Company's 6.75% Series 2021 Term Preferred Stock).
Fourth Fiscal Quarter 2016 Results:
Total investment income decreased by 1.0% compared to the prior quarter as interest income increased by
Net Investment Income for the quarter ending
Net Increase in Net Assets Resulting from Operations for the quarter ended
Fiscal Year Ended 2016 Results:
Total investment income increased by 2.8% during the fiscal year ended
Net Investment Income for the years ended
Net Increase in Net Assets Resulting from Operations for the years ended
- Portfolio Activity:
October 2016, RP Crown Parentpaid off at par for proceeds of $2.0 million.
November 2016, we completed the sale of RBC for net proceeds of approximately $37 million, which resulted in a realized loss of approximately $2 million. In connection with the sale, we received success fees associated with our debt investments of $1.1 million.
November 2016, we invested $5.2 millionin Sea Link International("Sealink") through secured second lien debt and an equity co-investment. Sealink is a manufacturer and supplier of OEM automotive lighting components and subassemblies.
- Common Stock Offering: Completed a public offering of 2.2 million shares of our common stock, including the overallotment. Gross proceeds totaled
$17.3 millionand net proceeds, after underwriting discounts and offering costs, were approximately $16.4 million.
- Distributions Declared: Declared the following monthly cash distributions to stockholders on
October 11, 2016:
|Record Date||Payment |
|Distribution per |
Series 2021 Term
|Total for the Quarter||$||0.21||$||0.421875|
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.gladstone.com or +1-703-287-5893.
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