UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________

Form 8-K
_____________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): February 6, 2018  

Gladstone Investment Corporation
(Exact Name of Registrant as Specified in Charter)

Delaware814-0070483-0423116
(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)

 

1521 Westbranch Drive, Suite 100, McLean, Virginia 22102
(Address of Principal Executive Offices) (Zip Code)

(703) 287-5800
(Registrant's telephone number, including area code)


(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 [   ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 [   ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 [   ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 [   ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [   ]

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]

 
 

Item 2.02. Results of Operations and Financial Condition.

On February 6, 2018, Gladstone Investment Corporation issued a press release announcing its financial results for its third fiscal quarter ended December 31, 2017. The text of the press release is included as an exhibit to this Current Report on Form 8-K. The information in this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits.

          (d) Exhibits.

Exhibit No. Description
   
99.1 Press Release issued by Gladstone Investment Corporation, dated February 6, 2018.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 Gladstone Investment Corporation
   
  
Date: February 6, 2018By: /s/ Julia Ryan        
  Julia Ryan
  Chief Financial Officer and Treasurer
  


EXHIBIT INDEX

Exhibit No. Description
   
99.1 Press Release issued by Gladstone Investment Corporation, dated February 6, 2018.

EdgarFiling

EXHIBIT 99.1

Gladstone Investment Corporation Reports Financial Results for its Third Quarter Ended December 31, 2017

MCLEAN, Va., Feb. 06, 2018 (GLOBE NEWSWIRE) -- Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company”) today announced earnings for its third fiscal quarter ended December 31, 2017. 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 or the Company’s website at www.gladstoneinvestment.com

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

  December 31,
2017
 September
30,

2017
 Change %
Change
 
For the quarter ended:         
Total investment income $16,184 $13,132 $3,052 23.2%
Total expenses, net(A) 8,653 7,382 1,271 17.2 
Net investment income(A) 7,531 5,750 1,781 31.0 
Net realized gain (loss) 25 (43)68 (158.1)
Net unrealized appreciation 9,588 7,849 1,739 22.2 
Net increase in net assets resulting from operations(A) 17,144 13,556 3,588 26.5 
Net investment income per weighted average common share(A) 0.23 0.18 0.05 27.8 
Net increase in net assets resulting from operations per weighted average common share(A) 0.53 0.42 0.11 26.2 
Cash distribution per common share from net investment income 0.27 0.19 0.08 41.1 
Cash distribution per common share from realized gains(B) (0.01) (0.01)NM 
          
Distributions coverage ratio(C) 177.4%208.6%(31.2)%(15.0)
Weighted average yield on interest-bearing investments 14.2 12.8 1.4 10.9 
Total dollars invested $39,540 $29,500 $10,040 34.0 
Total dollars repaid and
collected from sales
 3,211 3,949 (738)(18.7)
          
As of:         
Total investments, at fair value  $566,379 $520,174 $46,205 8.9%
Fair value, as a percent of cost 99.2%97.3%1.9%2.0 
Net assets $337,397 $328,548 $8,849 2.7 
Net asset value per common share 10.37 10.10 0.27 2.7 
Number of portfolio companies 34 34  NM 
          

(A) Inclusive of a $0.8 million capital gains-based incentive fee accrued during the three months ended December 31, 2017 in accordance with United States generally accepted accounting principles, where such amount is not contractually due under the terms of the investment advisory agreement for the period.
(B) Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date. 
(C) Distributions coverage ratio is calculated by dividing (i) the sum of net investment income in excess of distributions at the end of the period and distributions to common stockholders from net investment income during the period by (ii) current period distributions from net investment income to common stockholders.

NM = Not Meaningful

Highlights for the Quarter:  During the quarter ended December 31, 2017, the following significant events occurred:

Third Quarter Results: Net investment income for the quarters ended December 31, 2017 and September 30, 2017 was $7.5 million, or $0.23 per common share, and $5.8 million, or $0.18 per common share, respectively. Net investment income increased period over period, as the increase in total investment income resulting from higher interest and other income, more than offset the increase in total expenses, net of credits, which was primarily due to higher incentive fees, including $0.8 million of accrued capital gains-based incentive fees, the payment of which is not contractually due under the investment advisory agreement, in the current period.

Net asset value per common share as of December 31, 2017 increased to $10.37 compared to $10.10 as of September 30, 2017. The quarter over quarter increase was primarily due to improved performance and an increase in comparable multiples used to estimate the fair value of certain portfolio companies, which were partially offset by a decline in performance of certain other portfolio companies.

Subsequent Events:  After December 31, 2017, the following significant events occurred:

Record Date Payment Date Distribution per
Common Share
 Dividend per
Share of
Series B Term
Preferred
Stock
 Dividend per
Share of Series
C Term
Preferred
Stock
 Dividend per
Share of
Series D Term
Preferred
Stock
 
January 22, 2018 January 31, 2018 $0.065 $0.140625 $0.135417 $0.13020833 
February 16, 2018 February 28, 2018 0.065 0.140625 0.135417 0.13020833 
March 20, 2018 March 30, 2018 0.065 0.140625 0.135417 0.13020833 
  Total for the Quarter: $0.195 $0.421875 $0.406251 $0.39062499 
                

Conference Call:  The Company will hold its earnings release conference call on Wednesday, February 7, 2018, 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 February 14, 2018. To hear the replay, please dial (855) 859-2056 and use the playback conference number 54422389. 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, 2018.

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 151 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 three months ended December 31, 2017, including the notes to the consolidated financial statements contained therein.

Source: Gladstone Investment Corporation

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