|For the Quarter Ended:||September 30, 2016||June 30, 2016||Change||% Change|
|Total investment income||$||9,749||$||9,844||$||(95||)||(1.0||)%|
|Total expenses, net of credits||(4,847||)||(4,937||)||90||(1.8||)|
|Net investment income||4,902||4,907||(5||)||(0.1||)|
|Net investment income per common share||0.21||0.21||—||—|
|Cash distribution per common share||0.21||0.21||—||—|
|Net realized loss||(2,621||)||(84||)||(2,537||)||NM|
|Net unrealized appreciation||18,414||693||17,721||NM|
|Net increase in net assets resulting from operations||20,695||5,516||15,179||275.2|
|Weighted average yield on interest-bearing investments||11.0||%||10.9||%||0.1||%||0.9|
|Total repayments and proceeds||22,719||20,389||2,330||11.4|
|As of:||September 30, 2016||June 30, 2016||Change||% Change|
|Total investments, at fair value||$||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||$||0.67||8.4|
|NM =Not Meaningful|
|For the Year Ended:||September 30, 2016||September 30, 2015||Change||% Change|
|Total investment income||$||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|
|As of:||September 30, 2016||September 30, 2015||Change||% Change|
|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||)|
|NM =Not Meaningful|
- Portfolio Activity: Invested $19.5 million in three new portfolio companies and $0.7 million in existing portfolio companies. Received $22.7 million in repayments and net proceeds from portfolio companies.
- Portfolio Appreciation: Reported a net realized and unrealized gain of $15.8 million, or $0.68 per 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 2016 to common stockholders ($0.07 per common share) and to preferred stockholders ($0.140625 per share of the Company's 6.75% Series 2021 Term Preferred Stock).
Net Investment Income for the quarter ending September 30, 2016 was $4.9 million, or $0.21 per share, which is consistent with the prior quarter.Net Increase in Net Assets Resulting from Operations for the quarter ended September 30, 2016 and June 30, 2016 was $20.7 million, or $0.89 per share, compared to $5.5 million, or $0.24 per share, respectively. The quarter over quarter increase is primarily due to an increase in unrealized appreciation of $17.7 million largely attributed to the RBC sale. Fiscal Year Ended 2016 Results: Total investment income increased by 2.8% during the fiscal year ended September 30, 2016 compared to the prior year as other income increased by $0.7 million and interest income increased by $0.3 million due to an increase in the weighted average yield on our interest-bearing investments from 10.9% to 11.1% year over year. Total expenses decreased 3.6% year over year, primarily due to a $0.9 million, or 24.3%, decrease in interest expense on borrowings driven by a lower weighted average balance outstanding on our credit facility during the year. Net Investment Income for the years ended September 30, 2016 and 2015, was $19.5 million, or $0.84 per share, and $17.7 million, or $0.84 per share, respectively. Net Increase in Net Assets Resulting from Operations for the years ended September 30, 2016 and 2015, was $11.4 million, or $0.49 per share, compared to $8.5 million, or $0.40 per share, respectively. The year over year change is driven by the increase in net investment income and lower net realized and unrealized loss compared to the prior year. Subsequent Events: Subsequent to September 30, 2016, the following significant events occurred:
- Portfolio Activity:
- In October 2016, RP Crown Parent paid off at par for proceeds of $2.0 million.
- In 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.
- In November 2016, we invested $5.2 million in 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 million and net proceeds, after underwriting discounts and offering costs, were approximately $16.4 million.
- Distributions Declared: Declared the following monthly cash distributions to stockholders on October 11, 2016:
|Record Date||Payment Date||Distribution per Common Share||Distribution per Series 2021 Term Preferred Share|
|October 21||October 31||$||0.07||$||0.140625|
|November 17||November 30||0.07||0.140625|
|December 20||December 30||0.07||0.140625|
|Total for the Quarter||$||0.21||$||0.421875|
Investor Relations Inquiries: Please visit www.gladstone.com or +1-703-287-5893.