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Gladstone Capital reported its financial results for the second fiscal quarter ended March 31, 2024. Total investment income increased by 3.3%, with net investment income per common share decreasing by 7.4%. The company had a net asset value per common share of $9.90. Portfolio activity included investments in new and existing companies, with a focus on first lien assets. Total investment income rose due to higher interest income, while expenses increased mainly due to a rise in management fees. The net asset increase from operations was $23.6 million, driven by net unrealized appreciation. Subsequent events included investments in Total Access Elevator, and the payoff of debt investments in Giving Home Healthcare, and Gray Matter Systems, The company completed a reverse stock split, doubling its NAV per share to $19.80. Distributions were declared to common and preferred stockholders for the quarter.
Gladstone Capital ha comunicato i risultati finanziari per il secondo trimestre fiscale concluso il 31 marzo 2024. Il reddito totale da investimenti è aumentato del 3,3%, mentre il reddito netto da investimenti per azione ordinaria è diminuito del 7,4%. Il valore netto degli asset per azione ordinaria era di $9,90. L'attività del portafoglio ha incluso investimenti in nuove e preesistenti aziende, con un focus su asset di primo grado. L'aumento del reddito totale da investimenti è stato dovuto a maggiori entrate da interessi, mentre le spese sono cresciute principalmente a causa dell'incremento delle commissioni di gestione. L'aumento netto degli asset derivante dalle operazioni ammontava a $23,6 milioni, spinto da una rivalutazione non realizzata. Gli eventi successivi hanno incluso investimenti in Total Access Elevator e la liquidazione di investimenti debitori in Giving Home Healthcare e Gray Matter Systems. La compagnia ha completato uno split azionario inverso, raddoppiando il NAV per azione a $19,80. Sono state dichiarate distribuzioni agli azionisti ordinari e preferenziali per il trimestre.
Gladstone Capital reportó sus resultados financieros para el segundo trimestre fiscal finalizado el 31 de marzo de 2024. El ingreso total de inversiones aumentó un 3,3%, con una disminución del ingreso neto de inversiones por acción común del 7,4%. El valor neto de activos por acción común fue de $9,90. La actividad de la cartera incluyó inversiones en empresas nuevas y existentes, con un enfoque en activos de primer gravamen. El aumento en el ingreso total de inversiones se debió a mayores ingresos por intereses, mientras que los gastos aumentaron principalmente debido a un incremento en las comisiones de gestión. El aumento neto en los activos provenientes de operaciones fue de $23,6 millones, impulsado por la apreciación no realizada. Eventos subsecuentes incluyeron inversiones en Total Access Elevator y el pago de deudas de inversión en Giving Home Healthcare y Gray Matter Systems. La empresa completó una división inversa de acciones, duplicando su NAV por acción a $19,80. Se declararon distribuciones para los accionistas comunes y preferentes en el trimestre.
글래드스톤 캐피탈이 2024년 3월 31일에 종료된 두 번째 회계 분기에 대한 재무 결과를 보고했습니다. 총 투자 소득은 3.3% 증가했으며, 보통주당 순투자 소득은 7.4% 감소했습니다. 회사의 보통주당 순자산 가치는 $9.90였습니다. 포트폴리오 활동은 신규 및 기존 회사에 대한 투자를 포함하였으며, 1차 자산에 중점을 두었습니다. 총 투자 소득은 이자 소득 증가로 인해 상승했으며, 경비는 주로 경영 수수료 증가로 인해 증가했습니다. 운영에서 나온 순자산 증가는 $23.6백만이었으며, 실현되지 않은 평가 상승에 의해 주도되었습니다. 이후 사건으로는 Total Access Elevator에 대한 투자와 Giving Home Healthcare 및 Gray Matter Systems에서의 부채 투자 상환 등이 있었습니다. 회사는 주식 역분할을 완료하여 주당 NAV를 $19.80로 두 배로 증가시켰습니다. 분기 동안 보통주 및 우선주 주주들에게 배당이 선언되었습니다.
Gladstone Capital a rapporté ses résultats financiers pour le deuxième trimestre fiscal se terminant le 31 mars 2024. Le revenu total d'investissement a augmenté de 3,3%, tandis que le revenu net d'investissement par action ordinaire a diminué de 7,4%. La valeur nette d'actif par action ordinaire était de $9,90. L'activité du portefeuille comprenait des investissements dans des sociétés nouvelles et existantes, avec un focus sur les actifs de premier rang. L'augmentation du revenu total d'investissement était due à une hausse des revenus d'intérêts, tandis que les dépenses ont principalement augmenté en raison d'une hausse des frais de gestion. L'accroissement net des actifs issus des opérations s'élevait à $23,6 millions, entraîné par une appréciation non réalisée. Les événements subséquents comprenaient des investissements dans Total Access Elevator et le remboursement des investissements de dette chez Giving Home Healthcare et Gray Matter Systems. La société a effectué un split d'actions inversé, doublant sa NAV par action à $19,80. Des distributions ont été déclarées pour les actionnaires ordinaires et privilégiés pour le trimestre.
Gladstone Capital hat seine Finanzergebnisse für das zweite Geschäftsquartal, das am 31. März 2024 endete, vorgelegt. Das Gesamtinvestitionseinkommen stieg um 3,3%, während das Nettoinvestitionseinkommen pro Stammaktie um 7,4% sank. Der Nettovermögenswert pro Stammaktie betrug $9,90. Die Portfolioaktivitäten umfassten Investitionen in neue und bestehende Unternehmen, wobei der Schwerpunkt auf erstklassigen Vermögenswerten lag. Der Anstieg des Gesamtinvestitionseinkommens war auf höhere Zinseinnahmen zurückzuführen, während die Ausgaben hauptsächlich aufgrund steigender Managementgebühren zunahmen. Der Nettovermögenszuwachs aus dem Betrieb betrug $23,6 Millionen, angetrieben durch nicht realisierte Wertsteigerungen. Nachfolgende Ereignisse beinhalteten Investitionen in Total Access Elevator sowie die Tilgung von Schuldeninvestitionen in Giving Home Healthcare und Gray Matter Systems. Das Unternehmen führte eine umgekehrte Aktienspaltung durch, wodurch der NAV pro Aktie auf $19,80 verdoppelt wurde. Ausschüttungen wurden für das Quartal an Stamm- und Vorzugsaktieninhaber erklärt.
Positive
Increased total investment income by 3.3% for the quarter ended March 31, 2024.
Net asset value per common share increased to $9.90, a 3.0% jump from the previous quarter.
Portfolio activity included investments in new and existing companies, focusing on first lien assets.
Net increase in net assets resulting from operations was $23.6 million, driven by net unrealized appreciation.
Completed a reverse stock split, doubling the NAV per share to $19.80.
Negative
Net investment income per common share decreased by 7.4%.
Total expenses increased by 17.1% quarter over quarter mainly due to a rise in management fees.
Insights
Gladstone Capital Corporation's recent financial report for Q2 2024 indicates a mixed set of outcomes. On the positive side, we observe a modest growth in total investment income, which ticked up by 3.3%, predominantly due to increased interest income. Increases in income streams are generally favorable, as they suggest an expanding portfolio and effective interest-earning assets. However, a 17.1% jump in total expenses is a potential red flag, especially since it outpaces income growth. The increase was mainly attributed to a rise in base management fees, which may warrant investigation into the fee structure and its impact on net earnings.
From a shareholder perspective, the net investment income per share decline of 7.4% is concerning, indicating that expenses are eroding profits. Additionally, the constant cash distribution per share suggests a cautious approach by the company in managing its cash reserves. For income-focused investors, stable or increasing dividends are typically more attractive. The relatively high weighted average yield on debt investments is notable, standing at 14.0%. This suggests a high-return, albeit potentially high-risk, investment strategy by the company.
The net asset value (NAV) per common share increased by 3.0%, which is a positive indicator of the company's intrinsic value. Any increase in NAV is typically viewed favorably, as it implies growth in the underlying assets' value. The reverse stock split is a structural change that doesn't affect company value directly but might be intended to adjust the stock price for strategic reasons, such as improving marketability and investor perception.
Overall, there are positive aspects, such as increased investment income and NAV per share, but the rise in expenses and the static dividend payout ratio could cause concerns among investors prioritizing net earnings growth and cash returns.
Delving into the portfolio activity and mix, Gladstone's decision to maintain a majority of its debt investments in secured first lien assets, which exceed 70% of their debt investments at cost, reflects a strategic emphasis on securing their investments. While this may limit the upside potential compared to unsecured or equity investments, it also typically reduces risk by ensuring priority claims on assets in the event of default.
The addition of new and existing portfolio investments and the subsequent payoff of debts such as those from Total Access Elevator, LLC and Giving Home Healthcare, LLC, suggest active portfolio management and liquidity in their investments. Notably, the payoff from Giving Home included a prepayment penalty, indicating a potentially favorable return scenario for Gladstone.
For investors, such portfolio churn could signal a dynamic investment strategy that can adapt to changing market conditions. However, the significant decrease in total invested and repayments (22.9% and 31.4%, respectively) could point to a more conservative approach or a shift in market opportunities. Investors should consider how these movements align with their own risk tolerance and investment goals.
Furthermore, the increase in the committed facility amount by $10.0 million demonstrates enhanced credit facility availability, which could support future growth initiatives or provide a buffer against potential liquidity constraints.
MCLEAN, VA / ACCESSWIRE / May 1, 2024 / Gladstone Capital Corporation (Nasdaq:GLAD) (the "Company") today announced earnings for its second fiscal quarter ended March 31, 2024. Please read the Company's Quarterly Report on Form 10-Q filed today with the U.S. Securities and Exchange Commission (the "SEC"), which is available on the SEC's website at www.sec.gov and the investors section of the Company's website at www.GladstoneCapital.com.
Summary Information (dollars in thousands, except per share data) (unaudited):
For the Quarter Ended:
March 31,
2024
December 31,
2023
Change
% Change
Total investment income
$
23,997
$
23,221
$
776
3.3
%
Total expenses, net of credits
(13,220
)
(11,287
)
(1,933
)
17.1
Net investment income
10,777
11,934
(1,157
)
(9.7
)
Net investment income per common share
0.25
0.27
(0.02
)
(7.4
)
Cash distribution per common share
0.2475
0.2475
(0.00
)
(0.0
)
Net realized gain (loss)
2,168
262
1,906
727.5
Net unrealized appreciation (depreciation)
10,695
7,805
2,890
37.0
Net increase (decrease) in net assets resulting from operations
23,632
20,001
3,631
18.2
Weighted average yield on interest-bearing investments
14.0
%
13.9
%
0.1
%
0.7
Total invested
$
44,735
$
57,998
$
(13,263
)
(22.9
)
Total repayments and net proceeds
15,146
22,066
(6,920
)
(31.4
)
As of:
March 31,
2024
December 31,
2023
Change
% Change
Total investments, at fair value
$
791,588
$
749,985
$
41,603
5.5
%
Fair value, as a percent of cost
100.1
%
98.7
%
1.4
%
1.4
Net asset value per common share
$
9.90
$
9.61
$
0.29
3.0
Second Fiscal Quarter 2024 Highlights:
Portfolio Activity: Invested $15.0 million in one new portfolio company and $29.7 million in existing portfolio companies.
Portfolio Mix: Secured first lien assets continue to be over 70% of our debt investments, at cost, while the weighted average yield on debt investments was consistent at 14.0%.
Credit Facility Availability: Increased the committed facility amount by $10.0 million to $243.7 million and ended the quarter with availability in excess of $100 million.
Second Fiscal Quarter 2024 Results:
Total investment income increased by $0.8 million, or 3.3%, for the quarter ended March 31, 2024, compared to the prior quarter ended December 31, 2023, driven by a $0.7 million increase in interest income. The increase in interest income was driven by a 3.5% increase in the weighted average principal balance of our interest-bearing investments from $657.6 million during the quarter ended December 31, 2023 to $680.4 million during the quarter ended March 31, 2024.
Total expenses increased by $1.9 million, or 17.1%, quarter over quarter primarily due to a $1.4 million increase in the net base management fee, driven mainly by a decrease in portfolio company fee credits from new deal originations quarter over quarter.
Net investment income for the quarter ended March 31, 2024 was $10.8 million, or $0.25 per share.
The net increase in net assets resulting from operations was $23.6 million, or $0.54 per share, for the quarter ended March 31, 2024, compared to $20.0 million, or $0.46 per share, for the quarter ended December 31, 2023. The current quarter increase was primarily driven by $10.7 million of net unrealized appreciation recognized during the quarter.
Subsequent Events: Subsequent to March 31, 2024, the following significant events occurred:
Portfolio Activity: In April 2024, we invested $7.3 million in Total Access Elevator, LLC ("Total Access") through secured first lien debt and equity. We also extended Total Access a $3.0 million line of credit commitment and a $2.5 million delayed draw term loan commitment, both of which were unfunded at close.
Portfolio Activity: In April 2024, our debt investment in Giving Home Healthcare, LLC ("Giving Home") paid off at par for net cash proceeds of $29.7 million including a $0.9 million prepayment penalty. We also received a $2.5 million distribution related to our warrant position in Giving Home.
Portfolio Activity: In May 2024, our debt investment in Gray Matter Systems, LLC paid off at par for net cash proceeds of $14.0 million including a $0.2 million prepayment penalty.
Reverse Stock Split: On April 4, 2024, we completed a 1-for-2 reverse stock split (the "Reverse Stock Split") of the Company's issued and outstanding common stock, par value $0.001 per share ("Common Stock"), by the filing of Articles of Amendment with the State Department of Assessments and Taxation of Maryland pursuant to the Maryland General Corporation Law. The Reverse Stock Split became effective at 4:05 p.m. Eastern Time on April 4, 2024. The Reverse Stock Split was effective for purposes of trading as of the opening of business on the Nasdaq Global Select Market on April 5, 2024. As a result of the Reverse Stock Split, every two shares of Common Stock issued and outstanding were automatically combined into one new share of Common Stock. Additionally, following the Reverse Stock Split, our NAV per share approximately doubled to $19.80 per share.
Distributions and Dividends Declared: In April 2024, our Board of Directors declared the following distributions to common and preferred stockholders:
Record Date
Payment Date
Distribution per Common Share
April 19, 2024
April 30, 2024
$
0.165
May 17, 2024
May 31, 2024
0.165
June 19, 2024
June 28, 2024
0.165
Total for the Quarter
$
0.495
Record Date
Payment Date
Distribution per Series A Preferred Stock
April 22, 2024
May 3, 2024
$
0.130208
May 23, 2024
June 5, 2024
0.130208
June 25, 2024
July 5, 2024
0.130208
Total for the Quarter
$
0.390624
Conference Call for Stockholders: The Company will hold its earnings release conference call on Thursday, May 2, 2024, at 8:30 a.m. Eastern Time. Please call (866) 424-3437 to enter the conference call. An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through May 9, 2024. To hear the replay, please dial (877) 660-6853 and use playback conference number 13744826. 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 investors section of the Company's website.
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. Information on the business activities of Gladstone Capital and the other publicly-traded 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 March 31, 2024, including the notes to the consolidated financial statements contained therein.
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 U.S. Securities and Exchange Commission. The Company 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.
What was the total investment income for the quarter ended March 31, 2024?
Total investment income for the quarter ended March 31, 2024, was $23,997.
What was the net investment income per common share for the quarter?
The net investment income per common share for the quarter ended March 31, 2024, was $0.25.
What was the change in net asset value per common share from the previous quarter?
The net asset value per common share increased to $9.90, a $0.29 change from the previous quarter.
What were the key highlights for the second fiscal quarter of 2024?
The key highlights included portfolio activity, an increase in total investment income, and a rise in net asset value per common share.
What significant events occurred subsequent to March 31, 2024?
Subsequent events included investments in Total Access Elevator, , and the payoff of debt investments in Giving Home Healthcare, and Gray Matter Systems,
When did the company complete a reverse stock split?
The company completed a reverse stock split on April 4, 2024, doubling the NAV per share.
When will the distributions to common and preferred stockholders be paid?
Distributions to common and preferred stockholders will be paid on specified payment dates in April, May, and June 2024.
