Click here to close now.


News Feed Item

Gladstone Investment Corporation Reports Financial Results for the Third Quarter Ended December 31, 2013

MCLEAN, Va., Feb. 4, 2014 /PRNewswire/ -- Gladstone Investment Corporation (NASDAQ: GAIN) (the "Company") today announced earnings for its third quarter ended December 31, 2013.  Please read the Company's 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 or from the Company's website at

(Logo: )

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


December 31,


September 30,



% Change

For the Quarter Ended:

Total investment income










Total expenses





Net investment income





Net investment income per common share





Cash distribution per common share





Total realized (loss) gain





Total unrealized depreciation





Total unrealized (depreciation) appreciation  
          excluding reversal of previously-recorded 
          (depreciation) appreciation upon realization





Net (decrease) increase in net assets resulting 
          from operations





Weighted average yield on interest-bearing 








Total dollars invested








Total dollars repaid






As of:

Total investments at fair value









Fair value as a percent of cost








Total net assets








Net asset value per common share





Asset coverage ratio








Number of portfolio companies





                 NM=Not Meaningful


Highlights for the Quarter:  During the quarter ended December 31, 2013, the following significant events occurred:

  • New Portfolio Activity: The Company disbursed, in aggregate, $42.3 million in a combination of debt and equity, to invest in three new portfolio companies, Alloy Die Casting Co., Behrens Manufacturing, and Meridian Rack & Pinion, Inc.

  • Repayments of Loans: The Company received full repayment of debt investments in Channel Technologies Group, LLC ("Channel") and Cavert II Holding Corp. ("Cavert") in the amounts of $16.2 million and $6.1 million, respectively. As a part of these repayments, Channel and Cavert also paid prepayment and success fees of $0.8 million and $0.2 million, respectively.

  • Exits of Two Distressed Investments: In October 2013, one of the Company's portfolio companies, Auto Safety House, LLC ("ASH"), was sold to its existing management team. As a result of the sale, the Company received minimal net cash proceeds, recognized a realized loss of $11.4 million and retained a $5.0 million accruing revolving credit facility in ASH. In November 2013, another of the Company's portfolio companies, Packerland Whey Products, Inc. ("Packerland"), was sold to other existing owners. As a result of the sale, the Company received $0.7 million in net cash proceeds and recognized a realized loss of $1.8 million. These sales, while at a realized loss, were accretive to the Company's net asset value in aggregate by $5.7 million and reduced the Company's non-accruals outstanding. 

  • Increased Recurring Distributions and Paid One-Time Bonus Distribution: The Company paid its monthly cash distributions for each of October, November and December 2013 to common stockholders of $0.06 per common share, representing a 20% increase from the common distributions from the previous quarter. The Company also paid a one-time bonus dividend of $0.05 per common share in November and paid the preferred stockholders a monthly amount of $0.1484375 per preferred share of the Company's 7.125% Series A Cumulative Term Preferred Stock ("Term Preferred Stock") for each of October, November and December 2013.

Third Quarter 2014 Results:  Net Investment Income for the quarters ended December 31 and September 30, 2013 was $4.4 million, or $0.17 per share, and $6.2 million, or $0.24 per share, respectively, a decrease of 29.3%.  The decrease in Net Investment Income for the quarter ended December 31, 2013, as compared to the prior quarter, was primarily due to the $3.3 million in dividend and fee income related to the sale of Venyu Solutions, Inc. ("Venyu") that was recognized in the previous quarter.  This was partially offset by fee income in the aggregate amount of $1.0 million that was received in connection with the full repayments of loans from Cavert and Channel in the quarter ended December 31, 2013. 

Net (Decrease) Increase in Net Assets Resulting from Operations for the quarters ended December 31 and September 30, 2013 was $(10.7) million, or $(0.40) per share, and $14.9 million, or $0.57 per share, respectively.  The quarter over quarter change is primarily due to the aforementioned realized losses on the sales of the ASH and Packerland in the quarter ended December 31, 2013 as well as the $24.8 million realized gain on the sale of Venyu in the previous quarter.  Additionally, unrealized (depreciation) appreciation, excluding reversal of previously-recorded appreciation (depreciation) upon realization, decreased to $(15.5) million in unrealized depreciation in the quarter ended December 31, 2013 as compared to $1.7 million in unrealized appreciation in the prior quarter. During the quarter ended December 31, 2013, the Company experienced unrealized depreciation in certain of its portfolio companies, primarily due to a decrease in certain comparable multiples used to estimate fair value of the Company's investments and a decrease in portfolio company performance.

Subsequent Events:  After December 31, 2013, the following event occurred:

  • Distributions Declared:  Declared the following monthly cash distributions to stockholders:


Record Date

Payment Date

Distribution per
Common Share

Distribution per Term
Preferred Share

January 22, 2014

January 31, 2014





February 19, 2014

February 28, 2014



March 17, 2014

March 31, 2014



Total for the Quarter






The January 2014 common distribution represented the 103rd consecutive monthly common distribution the Company has made since its initial public offering in June 2005.   

Conference Call for Stockholders:  The Company will hold its earnings release conference call Wednesday, February 5, 2014, at 8:30 a.m. EST.  Please call (800) 860-2442 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 5, 2014.  To hear the replay, please dial (877) 344-7529 and use conference number 10029753. 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 The event will be archived and available for replay on the Company's website through April 4, 2014.

About Gladstone Investment Corporation:  Gladstone Investment Corporation is a publicly traded business development company that seeks to make debt and equity investments in small and medium-sized businesses in the United States in connection with acquisitions, changes in control and recapitalizations.  The Company has paid 103 consecutive monthly cash distributions on its common stock. Information on the business activities of all the Gladstone funds can be found at

The Company undertakes no obligation to update the information contained herein to reflect subsequently occurring events or circumstances, except as required by applicable securities laws and regulations.  For a description of certain risks to which the Company is or may be subject, please refer to the factors discussed under the captions "Cautionary Statement Concerning Forward Looking Statements" and "Risk Factors" included in the Company's filings with the SEC (accessible at   

To obtain a paper copy of the 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, 2013, including the notes to the consolidated financial statements contained therein.

SOURCE Gladstone Investment Corporation

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user e...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem"...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true ...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content. Join @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 7-9, 2016 in New York City, for three days of intense 'Internet of Things' discussion and focus, including Big Data's indespensable role in IoT, Smart Grids and Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) IoT's use in Vertical Markets.
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application del...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Y...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...