Gladstone Investment Corporation
Feb 6, 2017

Gladstone Investment Corporation Reports Financial Results for its Third Quarter Ended December 31, 2016

MCLEAN, Va., Feb. 06, 2017 (GLOBE NEWSWIRE) -- Gladstone Investment Corporation (NASDAQ:GAIN) (the "Company") today announced earnings for its third quarter ended December 31, 2016.  Please read the Company's Quarterly Report on Form 10-Q filed today with the U.S. Securities and Exchange Commission (the "SEC"), which can be retrieved from the SEC's website at www.sec.gov or from the Company's website at www.gladstoneinvestment.com

Summary Information:  (dollars in thousands, except per share data (unaudited)):

 December 31,
2016
 September 30,
2016
 Change  %
Change
 
For the quarter ended:          
Total investment income$13,374  $
11,744  $1,630  13.9%
Total expenses, net8,170   6,632  1,538  23.2 
Net investment income 5,204   5,112  92  1.8 
Net realized loss(3,137)  (193) (2,944) NM 
Net unrealized appreciation (depreciation)8,888   (5,021) 13,909  NM 
Net increase (decrease) in net assets resulting from operations10,955   (102) 11,057  NM 
Net investment income per common share0.17   0.17     
Cash distribution per common share0.19   0.19     
           
Distributions coverage ratio(A)232.3%  235.4% (3.1)% (1.3)
Weighted average yield on interest-bearing investments12.7   
12.5  0.2  1.6 
Total dollars invested$  $2,210  $(2,210) (100.0)
Total dollars repaid and collected from sales18,534   2,198  16,336  743.2 
           
As of:          
Total investments, at fair value$471,440  $485,972  $(14,532) (3.0)%
Fair value, as a percent of cost94.5%   93.0% 1.5% 1.6 
Net assets$297,382  $292,102  $5,280  1.8 
Net asset value per common share9.82   9.65  0.17  1.8 
Number of portfolio companies35   36  (1) (2.8)
           
 (A) Distributions coverage ratio is calculated by dividing the sum of net investment income in excess of distributions at the end of the period and
distributions to common stockholders during the period by current period distributions to common stockholders.
           
NM = Not Meaningful          


Highlights for the Quarter:
  During the quarter ended December 31, 2016, the following significant events occurred:

Third Quarter Results:  Net investment income for the quarters ended December 31, 2016 and September 30, 2016, was $5.2 million, or $0.17 per share, and $5.1 million, or $0.17 per share, respectively, an increase of 1.8%. The increase in net investment income period over period was primarily due to higher other income, which was partially offset by an increase in total expenses net of credits, including higher incentive fees. 

Net asset value per common share as of December 31, 2016 increased to $9.82 compared to $9.65 as of September 30, 2016. The quarter over quarter increase was primarily due to $8.9 million of net unrealized appreciation, which was due to the reversal of previously recorded net unrealized depreciation related to restructures and exits and an increase in performance of certain of our portfolio companies, partially offset by net realized losses related to the restructures and exits.  

Subsequent Events:  After December 31, 2016, the following significant events occurred:

Record Date Payment Date Distribution
per Common
Share
 Dividend per
Series B Term
Preferred
Share
 Dividend per
Series C Term
Preferred
Share
 Dividend per
Series D Term
Preferred
Share
 
January 20, 2017 January 31, 2017 $0.0625 $0.140625 $0.135417 $0.13020833 
February 16, 2017 February 28, 2017 0.0625 0.140625 0.135417 0.13020833 
March 22, 2017 March 31, 2017 0.0625 0.140625 0.135417 0.13020833 
  Total for the Quarter: $0.1875 $0.421875 $0.406251 $0.39062499 

Conference Call:  The Company will hold its earnings release conference call on Tuesday, February 7, 2017, at 8:30 a.m. EST . Please call (855) 376-7516 to enter the conference. An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through March 7, 2017.  To hear the replay, please dial (855) 859-2056 and use the playback conference number 56278911.  The replay 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.gladstoneinvestment.com. The event will be archived and available for replay on the Company's website through April 7, 2017.

About Gladstone Investment Corporation:  Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations.  The Company has paid 139 consecutive monthly cash distributions on its common stock. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.

To obtain a paper copy of our Quarterly Report on Form 10-Q filed today with the SEC, 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 December 31, 2016, including the notes to the consolidated financial statements contained therein.

Investor Relations Inquiries: Please visit www.gladstone.com or +1-703-287-5893.

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Source: Gladstone Investment Corporation

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