Gladstone Investment Reports Financial Results for the First Quarter Ended June 30, 2006.MCLEAN McLean, city (1990 pop. 38,168), Fairfax co., N Va., a suburb of Washington, D.C. Manufacturing includes foods, satellite components, and computer and telecommunications equipment. , Va. -- Gladstone Gladstone, city (1990 pop. 26,243), Clay co., W Mo., a suburb surrounded by Kansas City; founded c.1878, inc. 1952. The city has diverse light industries. Investment Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GAIN): --Net Investment Income was $2.6 million or $0.16 per common share --Net Increase in Net Assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. From Operations was $1.3 million or $0.08 per common share Gladstone Investment Corp. (NASDAQ:GAIN) (the "Company") today announced earnings for the first quarter ended June June: see month. 30, 2006. All per share references are per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. weighted average common share outstanding, unless otherwise noted. Net Investment Income for the first quarter ended June 30, 2006 was $2,581,164 or $0.16 per share as compared $19,800 or $0.00 for the period June 22, 2005 (commencement of operations) to June 30, 2005. Net Increase in Net Assets Resulting from Operations for the first quarter ended June 30, 2006 was $1,277,048 or $0.08 per share as compared $19,800 or $0.00 for the period June 22, 2005 (commencement of operations) to June 30, 2005. Total assets were $228,699,044 at June 30, 2006 as compared to $230,323,807 or on March 31, 2006. Net asset value was $13.75 per actual common share outstanding at June 30, 2006 as compared to $13.88 per actual common share at March 31, 2006. The weighted average yield on our portfolio of investments, excluding cash and cash equivalents, was 8.77% for the first quarter ended June 30, 2006. During the first quarter ended June 30, 2006 the Company recorded the following activity: --Acquired interests in eight new syndicated loans Syndicated Loan A very large loan in which a group of banks work together to provide funds for one borrower. There is usually one lead bank that takes a small percentage of the loan and syndicates the rest to other banks. Notes: Also known as a "syndicated bank facility. for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $30 million; --Sold three syndicated loans for approximately $15.5 million; --Recorded net unrealized depreciation on its investments of approximately $1.3 million; and --Recognized an aggregate of $3,273 of realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. related to the sale of four loan participations. At June 30, 2006, the Company held 24 non-control/non-affiliate investments, three control investments and cash investments, totaling an aggregate cost basis of $210 million and fair value of nearly $209 million.
Condensed Schedule of Investments
June 30, 2006
Investment Type Cost Fair Value
----------------------------------------------------------------------
Total Non-Control/Non-Affiliate
Investments 114,228,222 113,251,478
Total Control Investments 56,246,318 56,028,640
Total cash equivalents 39,558,107 39,558,107
------------- -------------
Total investments and cash equivalents $210,032,647 $208,838,225
------------- -------------
"Since the inception INCEPTION. The commencement; the beginning. In making a will, for example, the writing is its inception. 3 Co. 31 b; Plowd. 343. Vide Consummation; Progression. of our fund on June 22, 2005, we have invested over $170 million, bringing our total portfolio investments to 80% at quarter end. We are reviewing many buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. opportunities and anticipate reporting additional buyout activity for the second quarter," said Chip Stelljes, President and Chief Investment Officer. Subsequent to June 30, 2006, the Company: --Purchased additional loan participations of two portfolio companies of approximately $0.5 million; --Purchased two new loan participations of approximately $5.0 million; --Sold one loan participation for $1.0 million; and --Declared monthly cash dividends of $0.07 per common share for each of the months of July July: see month. , August and September September: see month. of 2006. The Company will hold a conference call Thursday Thursday: see week. , August 3, 2006 at 9:30 am EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT to discuss first quarter earnings. Please call (877) 407-0782 to enter the conference. An operator will monitor the call and set a queue Pronounced "Q." A temporary holding place for data. See queuing, message queue and print queue. (programming) queue - A first-in first-out data structure used to sequence objects. Objects are added to the tail of the queue ("enqueued") and taken off the head ("dequeued"). for the questions. A replay of the conference call will be available through September 3, 2006. To hear the replay, please dial (877) 660-6853, access playback Playback could mean:
The live audio broadcast of Gladstone Investment's quarterly conference call will be available online at www.GladstoneInvestment.com and www.investorcalendar.com. The online replay will follow shortly after the call. Gladstone Investment Corporation is an investment company that seeks to make debt and equity investments in small and mid-sized private businesses in the U.S. in connection with acquisitions, changes in control and recapitalizations. For more information please visit our website at http://www.GladstoneInvestment.com. For further information contact our Investor Relations Investor relations The process by which the corporation communicates with its investors. Manager, Kelly Kel·ly , Ellsworth Born 1923. American abstract painter and sculptor whose works are characterized by flat color areas with sharply defined edges. Kelly, Emmett 1898-1979. Sargent at 703-287-5835. This press release may include statements that may constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with regard to the future performance of the Company. Words such as "believes," "expects," "anticipates," "estimated," "approximately" "projects" and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on the Company's current plans that are believed to be reasonable as of the date of this press release. Factors that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements include, among others, those factors listed under the caption "Risk factors" of the Company's Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. dated March 31, 2006, as filed with the Securities and Exchange Commission on June 14, 2006. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
GLADSTONE INVESTMENT CORPORATION
STATEMENT OF OPERATIONS
(UNAUDITED)
For the period
June 22, 2005
For the three (Commencement of
months ended Operations) to
June 30, 2006 June 30, 2005
---------------- ----------------
INVESTMENT INCOME
Interest income
Non-Control/Non-Affiliate
investments $ 1,964,480 $ -
Control investments 1,190,302 -
Cash and cash equivalents 708,340 48,198
---------------- ----------------
Total interest income 3,863,122 48,198
Other income 316 -
---------------- ----------------
Total investment income 3,863,438 48,198
---------------- ----------------
EXPENSES
Administration fee 115,389 27,083
Base management fee 801,309 -
Directors fees 43,250 -
Insurance expense 72,611 -
Professional fees 79,748 -
Stockholder related costs 93,766 635
Interest expense - 378
Taxes and licenses 57,107 -
Other expenses 19,094 302
---------------- ----------------
Total expenses 1,282,274 28,398
---------------- ----------------
NET INVESTMENT INCOME 2,581,164 19,800
---------------- ----------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Realized gain on sale of Non-
Control/Non-Affiliate
investments 3,273 -
Net unrealized depreciation of
investment portfolio (1,307,389) -
---------------- ----------------
Net loss on investments (1,304,116) -
---------------- ----------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 1,277,048 $ 19,800
================ ================
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS PER COMMON SHARE:
Basic and Diluted $ 0.08 $ 0.00
================ ================
SHARES OF COMMON STOCK OUTSTANDING:
Basic and diluted weighted
average shares 16,560,100 14,400,100
GLADSTONE INVESTMENT CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
(UNAUDITED)
June 30, March 31,
2006 2006
------------- -------------
ASSETS
Non-Control/Non-Affiliate investments
(Cost 6/30/06: $114,228,222; 3/31/06:
$97,423,004) $113,251,478 $ 97,585,972
Control investments (Cost 6/30/06:
$56,246,318; 3/31/06: $55,846,318) 56,028,640 55,796,318
------------- -------------
Total investments at fair value (Cost
6/30/06: $170,474,540; 3/31/06:
$153,269,322) 169,280,118 153,382,290
Cash and cash equivalents 58,283,609 75,672,605
Interest receivable 911,817 761,388
Prepaid directors fees 108,750 -
Prepaid insurance 27,262 99,874
Due from Adviser - 234,551
Other assets 87,488 173,099
------------- -------------
TOTAL ASSETS $228,699,044 $230,323,807
============= =============
LIABILITIES
Accounts payable $ 11,583 $ -
Administration fee payable to Gladstone
Administration 115,389 110,002
Base management fee payable to Gladstone
Management 801,309 -
Accrued expenses 124,876 367,031
Other liabilities 4,763 5,077
------------- -------------
Total Liabilities 1,057,920 482,110
------------- -------------
NET ASSETS $227,641,124 $229,841,697
============= =============
ANALYSIS OF NET ASSETS:
Common stock, $0.001 par value,
100,000,000 shares authorized and
16,560,100 issued and outstanding,
respectively $ 16,560 $ 16,560
Capital in excess of par value 230,229,279 230,229,279
Net unrealized (depreciation) appreciation
of investment portfolio (1,194,421) 112,968
Distributions in excess of net investment
income (1,410,294) (517,110)
------------- -------------
Total Net Assets $227,641,124 $229,841,697
============= =============
Net assets per share $ 13.75 $ 13.88
============= =============
GLADSTONE INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS
(UNAUDITED)
For the period
June 22, 2005
For the three (Commencement of
months ended Operations) to
June 30, 2006 June 30, 2005
---------------------------------
Per Share Data (1)
------------------
Balance at beginning of period $ 13.88 $ -
Net proceeds from initial public
offering (2) - 13.95
---------------------------------
Offering costs - (0.05)
Income from investment operations:
Net investment income (3) 0.16 -
Realized gain on sale of
investments (3) 0.00 -
Net unrealized appreciation of
investments (3) (0.08) -
---------------------------------
Total from investment operations 0.08 -
---------------------------------
Distributions (0.21) -
---------------------------------
Net asset value at end of period $ 13.75 $ 13.90
=================================
Per share market value at
beginning of period $ 14.90 $ 15.00
Per share market value at end of
period 15.00 15.05
Total Return (4) 2.13% 0.33%
Shares outstanding at end of
period 16,560,100 14,400,100
Ratios/Supplemental Data
------------------------
Net assets at end of period $ 227,641,124 $ 200,137,980
Average net assets (5) $ 227,718,666 $ 200,137,980
Ratio of expenses to average net
assets (annualized) 2.25% 0.06%
Ratio of net investment income to
average net assets (annualized) 4.53% 0.04%
(1) Based on actual shares outstanding.
(2) Net of initial underwriting discount of $1.05 per share.
(3) Based on weighted average basic per share data.
(4) Total return equals the change in the market value of the
Company's common stock from the beginning of the period taking
into account dividends reinvested in accordance with the terms
of our dividend reinvestment plan.
(5) Calculated using the average of the ending monthly net assets
for the respective periods.
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