In This Article:
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Total Investment Income: $22.6 million, up from $22.2 million in the prior quarter.
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Net Expenses: $15.3 million, up from $9.8 million in the prior quarter.
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Net Investment Income: $7.3 million, compared to $12.4 million in the prior quarter.
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Adjusted Net Investment Income: $8.9 million or $0.24 per share, consistent with the prior quarter.
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Realized Capital Gains: $42.3 million from the exit of Nth Degree.
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Net Asset Value (NAV): Decreased to $12.49 per share from $13.01 per share in the prior quarter.
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Supplemental Distribution: $0.70 per share declared, paid in October.
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Monthly Distribution: $0.08 per share, or $0.96 per share on an annual basis.
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Portfolio Companies on Nonaccrual Status: Four, consistent with the prior quarter.
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Valuations Increase: $3.9 million across the portfolio, excluding Nth Degree exit.
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Available Credit Facility: Approximately $160 million available on a $200 million credit facility.
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Asset Coverage Ratio: 229.3% as of September 30.
Release Date: November 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Gladstone Investment Corp (NASDAQ:GAIN) reported consistent and positive quarter-over-quarter results with adjusted net investment income (NII) of $0.24 per share.
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The company successfully exited its portfolio company, Nth Degree, generating a realized capital gain of approximately $42.3 million.
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GAIN declared a supplemental distribution of $0.70 per share, paid in October, in addition to maintaining its monthly distribution of $0.08 per share.
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The company has a strong balance sheet with low leverage and a positive liquidity position, with $160 million available on its $200 million credit facility.
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GAIN is experiencing an active investing period with significant opportunities for new acquisitions, indicating potential growth in its portfolio.
Negative Points
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Total assets decreased to $869 million, down from the prior quarter.
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Net expenses increased to $15.3 million from $9.8 million in the prior quarter, primarily due to a rise in accrued capital gains-based incentive fees.
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The net asset value (NAV) decreased to $12.49 per share from $13.01 per share in the previous quarter.
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Four portfolio companies remain on nonaccrual status, although there are no portfolio-wide credit concerns.
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The competitive M&A environment is putting upward pressure on valuations, which may affect future acquisition costs.
Q & A Highlights
Q: Can you explain the decline in fee credits from the external manager for portfolio company managerial assistance? A: Rachael Easton, CFO, explained that the decline is correlated to the deal activity during the quarter. The last couple of quarters have been quieter from an investment perspective, which is why the fee credits are lower.