Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

x

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

 

 

FOR THE QUARTER ENDED DECEMBER 31, 2008

 

 

 

o

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

COMMISSION FILE NUMBER: 000-51233

 

GLADSTONE INVESTMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

DELAWARE

 

83-0423116

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

1521 WESTBRANCH DRIVE, SUITE 200
MCLEAN, VIRGINIA 22102

(Address of principal executive office)

 

(703) 287-5800

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o.

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12 b-2 of the Exchange Act.

 

Large accelerated filer o  Accelerated filer x  Non-accelerated filer o Smaller reporting company o.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes 
o  No x .

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. The number of shares of the issuer’s Common Stock, $0.001 par value, outstanding as of January 30, 2009 were 22,080,133.

 

 

 



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

 

TABLE OF CONTENTS

 

PART I.

FINANCIAL INFORMATION

 

 

 

 

 

Item 1.

Financial Statements (Unaudited)

 

 

 

 

 

 

Condensed Consolidated Statements of Assets and Liabilities as of December 31, 2008 and March 31, 2008

3

 

Condensed Consolidated Schedules of Investments as of December 31, 2008 and March 31, 2008

4

 

Condensed Consolidated Statements of Operations for the three and nine months ended December 31, 2008 and 2007

12

 

Condensed Consolidated Statements of Changes in Net Assets for the nine months ended December 31, 2008 and 2007

13

 

Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2008 and 2007

14

 

Financial Highlights for the three and nine months ended December 31, 2008 and 2007

15

 

Notes to Condensed Consolidated Financial Statements

16

 

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

30

 

Overview

30

 

Results of Operations

31

 

Liquidity and Capital Resources

38

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

47

 

 

 

 

Item 4.

Controls and Procedures

48

 

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

 

Item 1.

Legal Proceedings

48

 

 

 

 

Item 1A.

Risk Factors

48

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

53

 

 

 

 

Item 3.

Defaults Upon Senior Securities

53

 

 

 

 

Item 4.

Submission of Matters to a Vote of Security Holders

53

 

 

 

 

Item 5.

Other Information

53

 

 

 

 

Item 6.

Exhibits

54

 

 

 

 

SIGNATURES

54

 

2



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

 

 

 

December 31,

 

March 31,

 

 

 

2008

 

2008

 

ASSETS

 

 

 

 

 

Non-Control/Non-Affiliate investments (Cost 12/31/08: $138,599; Cost 3/31/08:$166,416)

 

$

107,208

 

$

142,739

 

Control investments (Cost 12/31/08: $152,395; Cost 3/31/08: $138,354)

 

167,175

 

145,407

 

Affiliate investments (Cost 12/31/08: $63,175; Cost 3/31/08: $46,035)

 

50,912

 

47,458

 

Total investments at fair value (Cost 12/31/08: $354,169; Cost 3/31/08: $350,805)

 

325,295

 

335,604

 

Cash and cash equivalents

 

13,123

 

9,360

 

Interest receivable

 

1,616

 

1,662

 

Prepaid insurance

 

153

 

90

 

Deferred finance costs

 

 

324

 

Due from Custodian

 

2,430

 

4,399

 

Due from Adviser (Refer to Note 4)

 

 

89

 

Other assets

 

470

 

765

 

TOTAL ASSETS

 

$

343,087

 

$

352,293

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Fee due to Administrator (Refer to Note 4)

 

$

195

 

$

208

 

Fee due to Adviser (Refer to Note 4)

 

55

 

 

Borrowings under line of credit

 

117,864

 

144,835

 

Accrued expenses

 

717

 

716

 

Other liabilities

 

139

 

89

 

TOTAL LIABILITIES

 

118,970

 

145,848

 

NET ASSETS

 

$

224,117

 

$

206,445

 

 

 

 

 

 

 

ANALYSIS OF NET ASSETS:

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized, 22,080,133 and 16,560,100 shares issued and outstanding at December 31, 2008 and March 31, 2008, respectively

 

$

22

 

$

16

 

Capital in excess of par value

 

264,762

 

224,173

 

Net unrealized depreciation of investment portfolio

 

(28,874

)

(15,201

)

Net unrealized depreciation of derivative

 

(53

)

(53

)

Accumulated net investment loss

 

(11,740

)

(2,490

)

TOTAL NET ASSETS

 

$

224,117

 

$

206,445

 

 

 

 

 

 

 

NET ASSETS PER SHARE

 

$

10.15

 

$

12.47

 

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

3



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF DECEMBER 31, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

NON-CONTROL/NON-AFFILIATE INVESTMENTS

 

 

 

 

 

 

 

Senior Syndicated Loans:

 

 

 

 

 

 

 

 

 

Activant Solutions, Inc.

 

Service - enterprise software and services

 

Senior Term Debt (6.1%, Due 5/2013) (3)

 

$

1,659

 

$

1,224

 

Advanced Homecare Holdings, Inc.

 

Service - home health nursing services

 

Senior Term Debt (4.2%, Due 8/2014) (3)

 

2,955

 

2,261

 

Aeroflex, Inc.

 

Service - provider of highly specialized electronic equipment

 

Senior Term Debt (5.4%, Due 8/2014) (3)

 

1,888

 

1,492

 

Compsych Investments Corp.

 

Service - employee assistance programs

 

Senior Term Debt (4.0%, Due 2/2012) (3)

 

3,167

 

2,750

 

CRC Health Group, Inc.

 

Service - substance abuse treatment

 

Senior Term Debt (3.7%, Due 2/2012) (3)

 

7,795

 

6,285

 

Critical Homecare Solutions, Inc.

 

Service - home therapy and respiratory treatment

 

Senior Term Debt (3.7%, Due 1/2012) (3)

 

4,418

 

3,801

 

Generac Acquisition Corp.

 

Manufacturing - standby power products

 

Senior Term Debt (6.7%, Due 11/2013) (3)

 

6,869

 

5,162

 

Graham Packaging Holdings Company

 

Manufacturing - plastic containers

 

Senior Term Debt (5.5%, Due 10/2011) (3)

 

3,399

 

2,768

 

Hargray Communications Group, Inc.

 

Service - triple-play (cable, phone, internet) provider

 

Senior Term Debt (3.4%, Due 6/2014) (3)

 

894

 

626

 

HMTBP Acquisition II Corp.

 

Service - aboveground storage tanks

 

Senior Term Debt (5.4%, Due 5/2014) (3)

 

3,848

 

2,873

 

Huish Detergents, Inc.

 

Manufacturing - household cleaning products

 

Senior Term Debt (2.2%, Due 4/2014) (3)

 

1,971

 

1,421

 

Hyland Software, Inc.

 

Service - provider of enterprise content management software

 

Senior Term Debt (5.6%, Due 7/2013) (3)

 

3,920

 

3,188

 

Interstate Fibernet, Inc.

 

Service - provider of voice and data telecommunications services

 

Senior Term Debt (5.5%, Due 7/2013) (3)

 

9,863

 

7,252

 

KIK Custom Products, Inc.

 

Manufacturing - consumer products

 

Senior Term Debt (5.8%, Due 5/2014) (3)

 

3,951

 

2,590

 

Kronos, Inc.

 

Service - workforce management solutions

 

Senior Term Debt (3.7%, Due 6/2014) (3)

 

1,904

 

1,331

 

Local TV Finance, LLC

 

Service - television station operator

 

Senior Term Debt (2.5%, Due 5/2013) (3)

 

987

 

725

 

LVI Services, Inc.

 

Service - asbestos and mold remediation

 

Senior Term Debt (6.5%, Due 11/2010) (3)

 

5,933

 

5,162

 

MedAssets, Inc.

 

Service - pharmaceuticals and healthcare GPO

 

Senior Term Debt (5.3%, Due 10/2013) (3)

 

3,973

 

3,121

 

Network Solutions, LLC

 

Service - internet domain solutions

 

Senior Term Debt (3.3%, Due 3/2014) (3)

 

8,673

 

6,120

 

Open Solutions, Inc.

 

Service - software outsourcing for financial institutions

 

Senior Term Debt (6.0%, Due 1/2014) (3)

 

2,656

 

1,936

 

Ozburn-Hessey Holding Co. LLC

 

Service - third party logistics

 

Senior Term Debt (5.6%, Due 8/2012) (3)

 

7,549

 

6,079

 

Pinnacle Foods Finance, LLC

 

Manufacturing - branded food products

 

Senior Term Debt (6.1%, Due 4/2014) (3)

 

1,955

 

1,367

 

PTS Acquisition Corp.

 

Manufacturing - drug delivery and packaging technologies

 

Senior Term Debt (3.7%, Due 4/2014) (3)

 

6,895

 

5,026

 

QTC Acquisition, Inc.

 

Service - outsourced disability evaluations

 

Senior Term Debt (4.1%, Due 11/2012) (3)

 

1,914

 

1,462

 

Radio Systems Corporation

 

Service - design electronic pet containment products

 

Senior Term Debt (3.6%, Due 9/2013) (3)

 

1,876

 

1,391

 

Rally Parts, Inc.

 

Manufacturing - aftermarket motorcycle parts and accessories

 

Senior Term Debt (3.6%, Due 11/2013) (3)

 

2,471

 

1,769

 

RPG Holdings, Inc.

 

Manufacturing and design - greeting cards

 

Senior Term Debt (non-accrual) (8)

 

4,553

 

2,048

 

SafeNet, Inc.

 

Service - chip encryption products

 

Senior Term Debt (7.8%, Due 4/2014) (3)

 

2,957

 

2,107

 

SGS International, Inc.

 

Service - digital imaging and graphics

 

Senior Term Debt (4.1%, Due 12/2011) (3)

 

1,475

 

1,226

 

Survey Sampling, LLC

 

Service - telecommunications-based sampling

 

Senior Term Debt (9.5%, Due 5/2011) (3)

 

2,598

 

2,386

 

 

4



Table of Contents

 

Triad Laboratory Alliance, LLC

 

Service - regional medical laboratories

 

Senior Term Debt (4.7%, Due 12/2011) (3)

 

4,131

 

3,527

 

Wastequip, Inc.

 

Service - process and transport waste materials

 

Senior Term Debt (2.7%, Due 2/2013) (3)

 

2,900

 

2,139

 

WaveDivision Holdings, LLC

 

Service - cable

 

Senior Term Debt (4.4%, Due 6/2014) (3)

 

1,910

 

1,466

 

West Corporation

 

Service - business process outsourcing

 

Senior Term Debt (3.5%, Due 10/2013) (3)

 

3,331

 

2,446

 

Subtotal - Senior Syndicated Loans

 

 

 

 

 

$

127,238

 

$

96,527

 

 

 

 

 

 

 

 

 

 

 

Non-Syndicated Loans

 

 

 

 

 

 

 

 

 

B-Dry, LLC

 

Service - basement waterproofer

 

Revolving Credit Facility, $300 available (10.5%, Due 10/2009)

 

$

450

 

$

442

 

 

 

 

 

Senior Term Debt (10.0%, Due 5/2014) (5)

 

6,681

 

6,447

 

 

 

 

 

Senior Term Debt (10.0%, Due 5/2014) (5)

 

3,930

 

3,792

 

 

 

 

 

Common Stock Warrants (4)

 

300

 

 

 

 

 

 

 

 

11,361

 

10,681

 

 

 

 

 

 

 

 

 

 

 

Total Non-Control/Non-Affiliate Investments

 

$

138,599

 

$

107,208

 

 

5



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF DECEMBER 31, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

CONTROL INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A. Stucki Holding Corp.

 

Manufacturing - railroad freight car products

 

Senior Term Debt (6.4%, Due 3/2012)

 

$

11,782

 

$

11,782

 

 

 

 

 

Senior Term Debt (8.7%, Due 3/2012) (6)

 

10,587

 

10,587

 

 

 

 

 

Senior Subordinated Term Debt (13%, Due 3/2014)

 

8,586

 

8,586

 

 

 

 

 

Preferred Stock (4)

 

4,387

 

5,034

 

 

 

 

 

Common Stock (4)

 

130

 

12,635

 

 

 

 

 

 

 

35,472

 

48,624

 

 

 

 

 

 

 

 

 

 

 

Acme Cryogenics, Inc.

 

Manufacturing - manifolds and pipes for industrial gasses

 

Senior Subordinated Term Debt (11.5%, Due 3/2013)

 

14,500

 

14,500

 

 

 

 

 

Redeemable Preferred Stock (4)

 

6,984

 

7,557

 

 

 

 

 

Common Stock (4)

 

1,045

 

 

 

 

 

 

Common Stock Warrants (4)

 

25

 

 

 

 

 

 

 

 

22,554

 

22,057

 

 

 

 

 

 

 

 

 

 

 

ASH Holdings Corp.

 

Retail and Service - school buses and parts

 

Revolver, $400 available (non-accrual, Due 3/2010)

 

1,600

 

 

 

 

 

 

Senior Subordinated Term Debt (non-accrual, Due 1/2012)

 

5,250

 

 

 

 

 

 

Preferred Stock (4)

 

2,500

 

 

 

 

 

 

Common Stock Warrants (4)

 

4

 

 

 

 

 

 

 

 

9,354

 

 

 

 

 

 

 

 

 

 

 

 

Cavert II Holding Corp.

 

Manufacturing - bailing wire

 

Revolving Credit Facility, $1,200 available (8.0%, Due 10/2010)

 

1,800

 

1,800

 

 

 

 

 

Senior Term Debt (8.3%, Due 10/2012)

 

5,850

 

5,850

 

 

 

 

 

Senior Term Debt (10.0%, Due 10/2012) (6)

 

3,000

 

3,000

 

 

 

 

 

Senior Subordinated Term Debt (13%, Due 10/2014)

 

4,671

 

4,671

 

 

 

 

 

Preferred Stock (4)

 

4,110

 

4,503

 

 

 

 

 

Common Stock (4)

 

69

 

906

 

 

 

 

 

 

 

19,500

 

20,730

 

 

 

 

 

 

 

 

 

 

 

Chase II Holdings Corp.

 

Manufacturing - traffic doors

 

Revolving Credit Facility, $1,105 available (5.9%, Due 3/2009)

 

3,395

 

3,395

 

 

 

 

 

Senior Term Debt (8.8%, Due 3/2011)

 

9,075

 

9,075

 

 

 

 

 

Senior Term Debt (12.0%, Due 3/2011) (6)

 

7,720

 

7,720

 

 

 

 

 

Senior Subordinated Term Debt (13.0%, Due 3/2013)

 

6,168

 

6,168

 

 

 

 

 

Redeemable Preferred Stock (4)

 

6,961

 

9,089

 

 

 

 

 

Common Stock (4)

 

61

 

7,620

 

 

 

 

 

 

 

33,380

 

43,067

 

 

 

 

 

 

 

 

 

 

 

Country Club Enterprises, LLC

 

Service – golf cart distribution

 

Subordinated Term Debt (14.0% Due 11/2014) (7)

 

7,000

 

7,000

 

 

 

 

 

Preferred Stock (4), (7)

 

3,725

 

3,725

 

 

 

 

 

 

 

10,725

 

10,725

 

 

 

 

 

 

 

 

 

 

 

Galaxy Tool Holding Corp.

 

Manufacturing - aerospace and plastics

 

Senior Subordinated Term Debt (13.5%, Due 8/2013)

 

17,250

 

17,250

 

 

 

 

 

Preferred Stock (4)

 

4,112

 

4,333

 

 

 

 

 

Common Stock (4)

 

48

 

389

 

 

 

 

 

 

 

21,410

 

21,972

 

 

 

 

 

 

 

 

 

 

 

Total Control Investments

 

 

 

 

 

$

152,395

 

$

167,175

 

 

6



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF DECEMBER 31, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

AFFILIATE INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Danco Acquisition Corp.

 

Manufacturing - machining and sheet metal work

 

Revolving Credit Facility, $2,600 available (9.3%, Due 10/2010)

 

$

400

 

$

376

 

 

 

 

 

Senior Term Debt (9.3%, Due 10/2012) (5)

 

5,100

 

4,807

 

 

 

 

 

Senior Term Debt (11.5%, Due 4/2013) (5)

 

9,135

 

8,496

 

 

 

 

 

Redeemable Preferred Stock (4)

 

2,500

 

2,664

 

 

 

 

 

Common Stock Warrants (4)

 

3

 

 

 

 

 

 

 

 

17,138

 

16,343

 

 

 

 

 

 

 

 

 

 

 

Mathey Investments, Inc.

 

Manufacturing - pipe-cutting and pipe-fitting equipment

 

Revolving Credit Facility, $2,000 available (9.0%, Due 3/2011)

 

 

 

 

 

 

 

Senior Term Debt (9.0%, Due 3/2013) (5)

 

2,406

 

2,346

 

 

 

 

 

Senior Term Debt (12.0%, Due 3/2014) (5), (6)

 

7,245

 

7,037

 

 

 

 

 

Common Stock (4)

 

500

 

586

 

 

 

 

 

Common Stock Warrants (4)

 

277

 

342

 

 

 

 

 

 

 

10,428

 

10,311

 

 

 

 

 

 

 

 

 

 

 

Noble Logistics, Inc.

 

Service - aftermarket auto parts delivery

 

Revolving Credit Facility, $-0- available (7.4%, Due 12/2009)

 

2,000

 

1,598

 

 

 

 

 

Senior Term Debt (10.5%, Due 12/2011) (5)

 

5,727

 

4,574

 

 

 

 

 

Senior Term Debt (12.5%, Due 3/2011) (5), (6)

 

7,300

 

5,831

 

 

 

 

 

Preferred Stock (4)

 

1,750

 

 

 

 

 

 

Common Stock (4)

 

1,682

 

 

 

 

 

 

 

 

18,459

 

12,003

 

 

 

 

 

 

 

 

 

 

 

Quench Holdings Corp.

 

Service - sales, installation and service of water coolers

 

Senior Subordinated Term Debt (10.0%, Due 8/2013) (5)

 

8,000

 

5,200

 

 

 

 

 

Preferred Stock (4)

 

2,950

 

1,433

 

 

 

 

 

Common Stock Warrants (4)

 

447

 

 

 

 

 

 

 

 

11,397

 

6,633

 

 

 

 

 

 

 

 

 

 

 

Tread Corp.

 

Service - regional medical laboratories

 

Senior Term Debt (12.5%, Due 5/2013) (5)

 

5,000

 

4,875

 

 

 

 

 

Preferred Stock (4)

 

750

 

747

 

 

 

 

 

Common Stock Warrants (4)

 

3

 

 

 

 

 

 

 

 

5,753

 

5,622

 

 

 

 

 

 

 

 

 

 

 

Total Affiliate Investments

 

 

 

 

 

$

63,175

 

$

50,912

 

 

 

 

 

 

 

 

 

 

 

Total Investments

 

 

 

 

 

$

354,169

 

$

325,295

 

 


(1)

 

Certain of the listed securities are issued by affiliate(s) of the indicated portfolio company.

(2)

 

Percentage represents the weighted average interest rates in effect at December 31, 2008, and due date represents the contractual maturity date.

(3)

 

Security valued using internally-developed, risk-adjusted discounted cash flow methodologies as of December 31, 2008.

(4)

 

Security is non-income producing.

(5)

 

Fair value based on opinions of value submitted by Standard & Poor’s Securities Evaluations, Inc. at December 31, 2008.

(6)

 

Last Out Tranche of senior debt, meaning if the portfolio company is liquidated then the holder of the Last Out Tranche is paid after the senior debt.

(7)

 

Valued at cost due to recent acquisition.

(8)

 

Security valued based on the indicative bid price on or near December 31, 2008, offered by the respective syndication agent’s trading desk, or secondary desk.

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

7



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF MARCH 31, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

NON-CONTROL/NON-AFFILIATE INVESTMENTS

 

 

 

 

 

 

 

Senior Syndicated Loans:

 

 

 

 

 

 

 

 

 

Activant Solutions, Inc.

 

Service - enterprise software and services

 

Senior Term Debt (6.7%, Due 5/2013) (3)

 

$

1,734

 

$

1,478

 

Advanced Homecare Holdings, Inc.

 

Service - home health nursing services

 

Senior Term Debt (6.4%, Due 8/2014) (3)

 

2,977

 

2,829

 

Aeroflex, Inc.

 

Service - provider of highly specialized electronic equipment

 

Senior Term Debt (6.4%, Due 8/2014) (3)

 

1,898

 

1,851

 

Compsych Investments Corp.

 

Service - employee assistance programs

 

Senior Term Debt (5.5%, Due 2/2012) (3), (5)

 

3,421

 

2,965

 

CRC Health Group, Inc.

 

Service – substance abuse treatment

 

Senior Term Debt (4.9%, Due 2/2012) (3)

 

9,878

 

8,536

 

Critical Homecare Solutions, Inc.

 

Service - home therapy and respiratory treatment

 

Senior Term Debt (6.1%, Due 1/2012) (3), (5)

 

4,505

 

4,480

 

Dealer Computer Services, Inc.

 

Manufacturing & Service - systems for automotive retailers

 

Senior Term Debt (6.8%, Due 9/2013) (3)

 

1,799

 

1,595

 

Generac Acquisition Corp.

 

Manufacturing - standby power products

 

Senior Term Debt (7.2%, Due 11/2013) (3), (5)

 

6,874

 

5,435

 

Graham Packaging Holdings Company

 

Manufacturing - plastic containers

 

Senior Term Debt (5.9%, Due 10/2011) (3)

 

5,420

 

4,938

 

Hargray Communications Group, Inc.

 

Service - triple-play (cable, phone, internet) provider

 

Senior Term Debt (4.9%, Due 6/2014) (3)

 

963

 

860

 

HMTBP Acquisition II Corp.

 

Service - aboveground storage tanks

 

Senior Term Debt (4.9%, Due 5/2014) (3), (5)

 

3,878

 

3,529

 

Hudson Products Holdings, Inc.

 

Manufacturing - heat transfer solutions

 

Senior Term Debt (7.0%, Due 12/2013) (3)

 

6,020

 

5,283

 

Huish Detergents, Inc.

 

Manufacturing - household cleaning products

 

Senior Term Debt (4.7%, Due 4/2014) (3)

 

1,986

 

1,652

 

Hyland Software, Inc.

 

Service - provider of enterprise content management software

 

Senior Term Debt (5.9%, Due 7/2013) (3)

 

3,955

 

3,671

 

Interstate Fibernet, Inc.

 

Service - provider of voice and data telecommunications services

 

Senior Term Debt (6.7%, Due 7/2013) (3)

 

9,932

 

9,676

 

KIK Custom Products, Inc.

 

Manufacturing - consumer products

 

Senior Term Debt (4.9%, Due 5/2014) (3)

 

3,981

 

2,746

 

Kronos, Inc.

 

Service - workforce management solutions

 

Senior Term Debt (5.0%, Due 6/2014) (3)

 

1,971

 

1,577

 

Lexicon Marketing USA, Inc.

 

Service - marketing to Hispanic community

 

Senior Term Debt (non-accrual) (3), (5)

 

2,947

 

412

 

Local TV Finance, LLC

 

Service - television station operator

 

Senior Term Debt (5.2%, Due 5/2013) (3)

 

995

 

824

 

LVI Services, Inc.

 

Service - asbestos and mold remediation

 

Senior Term Debt (7.5%, Due 11/2010) (3), (5)

 

6,369

 

5,083

 

MedAssets, Inc.

 

Service - pharmaceuticals and healthcare GPO

 

Senior Term Debt (5.2%, Due 10/2013) (3), (5)

 

4,004

 

3,702

 

National Mentor Holdings, Inc.

 

Service - home health care

 

Senior Term Debt (4.8%, Due 6/2013) (3)

 

1,968

 

1,672

 

Network Solutions, LLC

 

Service - internet domain solutions

 

Senior Term Debt (5.2%, Due 3/2014) (3)

 

9,196

 

7,355

 

NPC International Inc.

 

Service - Pizza Hut franchisee

 

Senior Term Debt (4.7%, Due 5/2013) (3)

 

2,895

 

2,537

 

Open Solutions, Inc.

 

Service - software outsourcing for financial institutions

 

Senior Term Debt (5.8%, Due 1/2014) (3)

 

2,678

 

2,196

 

Ozburn-Hessey Holding Co. LLC

 

Service - third party logistics

 

Senior Term Debt (6.3%, Due 8/2012) (3)

 

7,628

 

5,979

 

Pinnacle Foods Finance, LLC

 

Manufacturing - branded food products

 

Senior Term Debt (7.4%, Due 4/2014) (3)

 

3,971

 

3,454

 

PTS Acquisition Corp.

 

Manufacturing - drug delivery and packaging technologies

 

Senior Term Debt (7.1%, Due 4/2014) (3)

 

6,948

 

5,697

 

QTC Acquisition, Inc.

 

Service - outsourced disability evaluations

 

Senior Term Debt (5.4%, Due 11/2012) (3)

 

1,930

 

1,638

 

Radio Systems Corporation

 

Service - design electronic pet containment products

 

Senior Term Debt (5.5%, Due 9/2013) (3)

 

1,966

 

1,807

 

 

8



Table of Contents

 

Rally Parts, Inc.

 

Manufacturing - aftermarket motorcycle parts and accessories

 

Senior Term Debt (5.2%, Due 11/2013) (3)

 

2,486

 

2,074

 

RPG Holdings, Inc.

 

Manufacturing and design - greeting cards

 

Senior Term Debt (8.8%, Due 12/2011) (3)

 

4,553

 

3,869

 

SafeNet, Inc.

 

Service - chip encryption products

 

Senior Term Debt (7.1%, Due 4/2014) (3)

 

2,980

 

2,382

 

SGS International, Inc.

 

Service - digital imaging and graphics

 

Senior Term Debt (6.9%, Due 12/2011) (3)

 

1,594

 

1,430

 

Stolle Machinery Company

 

Manufacturing - can-making equipment and parts

 

Senior Term Debt (7.8%, Due 9/2012) (3)

 

494

 

458

 

Survey Sampling, LLC

 

Service - telecommunications-based sampling

 

Senior Term Debt (5.2%, Due 5/2011) (3), (5)

 

2,931

 

2,527

 

Synagro Technologies, Inc.

 

Service - waste treatment and recycling

 

Senior Term Debt (5.1%, Due 3/2014) (3)

 

498

 

422

 

Triad Laboratory Alliance, LLC

 

Service - regional medical laboratories

 

Senior Term Debt (5.9%, Due 12/2011) (3), (5)

 

4,900

 

4,154

 

United Surgical Partners International, Inc.

 

Service - outpatient surgical provider

 

Senior Term Debt (5.4%, Due 4/2014) (3)

 

1,320

 

1,152

 

Wastequip, Inc.

 

Service - process and transport waste materials

 

Senior Term Debt (4.9%, Due 2/2013) (3)

 

2,922

 

2,337

 

WaveDivision Holdings, LLC

 

Service - cable

 

Senior Term Debt (6.7%, Due 6/2014) (3), (5)

 

1,925

 

1,814

 

West Corporation

 

Service - business process outsourcing

 

Senior Term Debt (5.3%, Due 10/2013) (3)

 

3,357

 

2,929

 

Subtotal – Senior Syndicated Loans

 

 

 

 

 

$

154,647

 

$

131,005

 

 

 

 

 

 

 

 

 

 

 

Non-Syndicated Loans

 

 

 

 

 

 

 

 

 

B-Dry, LLC

 

Service - basement waterproofer

 

Revolving Credit Facility, $-0- available (7.3%, Due 10/2008)

 

750

 

750

 

 

 

 

 

Senior Term Debt (10.0%, Due 5/2014)

 

6,749

 

6,749

 

 

 

 

 

Senior Term Debt (10.0%, Due 5/2014)

 

3,970

 

3,970

 

 

 

 

 

Common Stock Warrants (4)

 

300

 

265

 

 

 

 

 

 

 

11,769

 

11,734

 

Total Non-Control/Non-Affiliate Investments

 

 

$

166,416

 

$

142,739

 

 

9



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF MARCH 31, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

CONTROL INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A. Stucki Holding Corp.

 

Manufacturing - railroad freight car products

 

Senior Term Debt (7.6%, Due 3/2012)

 

$

13,391

 

$

13,391

 

 

 

 

 

Senior Term Debt (9.8%, Due 3/2012) (6)

 

11,000

 

11,000

 

 

 

 

 

Senior Subordinated Term Debt (13%, Due 3/2014)

 

5,486

 

5,486

 

 

 

 

 

Preferred Stock (4)

 

4,387

 

4,748

 

 

 

 

 

Common Stock (4)

 

130

 

10,062

 

 

 

 

 

 

 

34,394

 

44,687

 

 

 

 

 

 

 

 

 

 

 

Acme Cryogenics, Inc.

 

Manufacturing - manifolds and pipes for industrial gasses

 

Senior Subordinated Term Debt (11.5%, Due 3/2013)

 

14,500

 

14,500

 

 

 

 

 

Redeemable Preferred Stock (4)

 

6,984

 

7,795

 

 

 

 

 

Common Stock (4)

 

1,045

 

2,977

 

 

 

 

 

Common Stock Warrants (4)

 

25

 

291

 

 

 

 

 

 

 

22,554

 

25,563

 

 

 

 

 

 

 

 

 

 

 

ASH Holdings Corp.

 

Retail and Service - school buses and parts

 

Revolver, $1,250 available (non-accrual, Due 3/2010)

 

750

 

 

 

 

 

 

Senior Subordinated Term Debt (non-accrual, Due 1/2012)

 

5,250

 

 

 

 

 

 

Preferred Stock (4)

 

2,500

 

 

 

 

 

 

Common Stock Warrants (4)

 

4

 

 

 

 

 

 

 

 

8,504

 

 

 

 

 

 

 

 

 

 

 

 

Cavert II Holding Corp.

 

Manufacturing - bailing wire

 

Revolving Credit Facility, $600 available (8.0%, Due 10/2010)

 

2,400

 

2,400

 

 

 

 

 

Senior Term Debt (8.3%, Due 10/2012)

 

6,337

 

6,337

 

 

 

 

 

Senior Term Debt (10.0%, Due 10/2012) (6)

 

3,000

 

3,000

 

 

 

 

 

Senior Subordinated Term Debt (13%, Due 10/2014)

 

4,671

 

4,671

 

 

 

 

 

Preferred Stock (4)

 

4,110

 

4,252

 

 

 

 

 

Common Stock (4)

 

69

 

688

 

 

 

 

 

 

 

20,587

 

21,348

 

 

 

 

 

 

 

 

 

 

 

Chase II Holdings Corp.

 

Manufacturing - traffic doors

 

Revolving Credit Facility, $220 available (7.1%, Due 3/2008)

 

3,280

 

3,280

 

 

 

 

 

Senior Term Debt (8.8%, Due 3/2011)

 

9,900

 

9,900

 

 

 

 

 

Senior Term Debt (12.0%, Due 3/2011) (6)

 

7,840

 

7,840

 

 

 

 

 

Senior Subordinated Term Debt (13.0%, Due 3/2013)

 

6,168

 

6,168

 

 

 

 

 

Redeemable Preferred Stock (4)

 

6,961

 

8,455

 

 

 

 

 

Common Stock (4)

 

61

 

3,508

 

 

 

 

 

 

 

34,210

 

39,151

 

 

 

 

 

 

 

 

 

 

 

Quench Holdings Corp.

 

Service - sales, installation and service of water coolers

 

Revolving Credit Facility, $-0- available (7.1%, Due 3/2009)

 

1,500

 

1,500

 

 

 

 

 

Senior Term Debt (7.1%, Due 3/2011)

 

4,250

 

4,250

 

 

 

 

 

Senior Subordinated Term Debt (11.5%, Due 3/2011)

 

7,820

 

7,820

 

 

 

 

 

Equipment Line Note (7)

 

1,088

 

1,088

 

 

 

 

 

Preferred Stock (4)

 

3,000

 

 

 

 

 

 

Common Stock Warrants (4)

 

447

 

 

 

 

 

 

 

 

18,105

 

14,658

 

 

 

 

 

 

 

 

 

 

 

Total Control Investments

 

 

 

 

 

$

138,354

 

$

145,407

 

 

10



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF MARCH 31, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

AFFILIATE INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Danco Acquisition Corp.

 

Manufacturing - machining and sheet metal work

 

Revolving Credit Facility, $2,400 available (9.3%, Due 10/2010)

 

$

600

 

$

600

 

 

 

 

 

Senior Term Debt (9.3%, Due 10/2012)

 

5,550

 

5,550

 

 

 

 

 

Senior Term Debt (11.5%, Due 4/2013)

 

8,578

 

8,578

 

 

 

 

 

Redeemable Preferred Stock (4)

 

2,500

 

2,576

 

 

 

 

 

Common Stock Warrants (4)

 

3

 

1,045

 

 

 

 

 

 

 

17,231

 

18,349

 

 

 

 

 

 

 

 

 

 

 

Mathey Investments, Inc.

 

Manufacturing - pipe-cutting and pipe-fitting equipment

 

Revolving Credit Facility, $2,000 available (9.0%, Due 3/2011) (8)

 

 

 

 

 

 

 

Senior Term Debt (9.0%, Due 3/2013) (8)

 

2,500

 

2,500

 

 

 

 

 

Senior Term Debt (12.0%, Due 3/2014) (8)

 

7,300

 

7,300

 

 

 

 

 

Common Stock (4), (8)

 

500

 

500

 

 

 

 

 

Common Stock Warrants (4), (8)

 

277

 

277

 

 

 

 

 

 

 

10,577

 

10,577

 

 

 

 

 

 

 

 

 

 

 

Noble Logistics, Inc.

 

Service - aftermarket auto parts delivery

 

Revolving Credit Facility, $100 available (7.1%, Due 12/2009)

 

1,900

 

1,900

 

 

 

 

 

Senior Term Debt (8.5%, Due 12/2011)

 

6,077

 

6,077

 

 

 

 

 

Senior Term Debt (10.5%, Due 3/2011) (6)

 

7,000

 

7,000

 

 

 

 

 

Preferred Stock (4)

 

1,750

 

2,108

 

 

 

 

 

Common Stock (4)

 

1,500

 

1,447

 

 

 

 

 

 

 

18,227

 

18,532

 

Total Affiliate Investments

 

 

 

 

 

$

46,035

 

$

47,458

 

 

 

 

 

 

 

 

 

 

 

Total Investments

 

 

 

 

 

$

350,805

 

$

335,604

 

 


(1)

Certain of the listed securities are issued by affiliate(s) of the indicated portfolio company.

(2)

Percentage represents the weighted average interest rates in effect at March 31, 2008, and due date represents the contractual maturity date.

(3)

Marketable securities, such as syndicated loans, are valued based on the indicative bid price on or near March 31, 2008, offered by the respective syndication agent’s trading desk, or secondary desk.

(4)

Security is non-income producing.

(5)

Fair value based on opinions of value submitted by Standard & Poor’s Securities Evaluations, Inc. at March 31, 2008.

(6)

Last Out Tranche of senior debt, meaning if the portfolio company is liquidated then the holder of the Last Out Tranche is paid after the senior debt.

(7)

Total available for future borrowing for the purposes of purchasing equipment is $1,500. The undrawn amount of $411 may be drawn to purchase additional equipment through 10/31/2010. The interest rate on all amounts drawn on the equipment line note is 12% except for one draw of $188 whose interest rate is 15%. Each draw on the equipment line note is subject to its own amortization and maturity, typically over a period of 20-24 months. At March 31, 2008, the last amortization payment due under current amounts drawn under the equipment line note is 11/2009.

(8)

Valued at cost due to recent acquisition.

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

11



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

 

 

 

Three Months Ended December 31,

 

Nine Months Ended
December 31,

 

 

 

2008

 

2007

 

2008

 

2007

 

INVESTMENT INCOME

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

 

$

2,339

 

$

3,892

 

$

6,797

 

$

11,220

 

Control investments

 

3,068

 

2,866

 

8,372

 

8,043

 

Affiliate investments

 

1,478

 

700

 

3,938

 

1,502

 

Cash and cash equivalents

 

21

 

80

 

67

 

194

 

Total interest income

 

6,906

 

7,538

 

19,174

 

20,959

 

Other income

 

96

 

6

 

682

 

41

 

Total investment income

 

7,002

 

7,544

 

19,856

 

21,000

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Loan servicing fee (Refer to Note 4)

 

1,258

 

1,287

 

3,769

 

3,741

 

Base management fee (Refer to Note 4)

 

442

 

498

 

1,303

 

1,310

 

Administration fee (Refer to Note 4)

 

195

 

211

 

642

 

647

 

Interest expense

 

1,823

 

2,381

 

4,009

 

5,819

 

Amortization of deferred finance costs

 

46

 

169

 

324

 

595

 

Professional fees

 

69

 

90

 

383

 

356

 

Stockholder related costs

 

112

 

25

 

413

 

220

 

Insurance expense

 

57

 

47

 

165

 

183

 

Directors fees

 

50

 

55

 

145

 

177

 

Taxes and licenses

 

16

 

42

 

83

 

125

 

General and administrative expenses

 

41

 

39

 

163

 

130

 

Expenses before credit from Adviser

 

4,109

 

4,844

 

11,399

 

13,303

 

Credits to base management fee (Refer to Note 4)

 

(694

)

(1,046

)

(1,964

)

(1,932

)

Total expenses net of credit to base management fee

 

3,415

 

3,798

 

9,435

 

11,371

 

NET INVESTMENT INCOME

 

3,587

 

3,746

 

10,421

 

9,629

 

 

 

 

 

 

 

 

 

 

 

REALIZED AND UNREALIZED (LOSS) GAIN ON INVESTMENTS AND DERIVATIVE

 

 

 

 

 

 

 

 

 

Realized loss on sale of Non-Control/Non-Affiliate investments

 

 

(146

)

(4,215

)

(198

)

Net unrealized depreciation of Non-Control/Non-Affiliate investments

 

(6,988

)

(2,835

)

(7,714

)

(10,672

)

Net unrealized appreciation of Control investments

 

1,755

 

4,487

 

7,728

 

9,942

 

Net unrealized (depreciation) appreciation of Affiliate investments

 

(2,294

)

(148

)

(13,687

)

306

 

Net unrealized appreciation of derivative

 

 

5

 

 

5

 

Net (loss) gain on investments

 

(7,527

)

1,363

 

(17,888

)

(617

)

 

 

 

 

 

 

 

 

 

 

NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

 

$

(3,940

)

$

5,109

 

$

(7,467

)

$

9,012

 

 

 

 

 

 

 

 

 

 

 

NET (DECREASE) INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.18

)

$

0.31

 

$

(0.35

)

$

0.54

 

 

 

 

 

 

 

 

 

 

 

SHARES OF COMMON STOCK OUTSTANDING:

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average shares

 

22,080,133

 

16,560,100

 

21,367,871

 

16,560,100

 

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

12



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

 

 

Nine Months Ended December 31,

 

 

 

2008

 

2007

 

Operations:

 

 

 

 

 

Net investment income

 

$

10,421

 

$

9,629

 

Realized loss on sale of investments

 

(4,215

)

(198

)

Net unrealized depreciation of portfolio

 

(13,673

)

(424

)

Unrealized appreciation of derivative

 

 

5

 

Net (decrease) increase in net assets from operations

 

(7,467

)

9,012

 

 

 

 

 

 

 

Capital transactions:

 

 

 

 

 

Issuance of common stock

 

41,290

 

 

Shelf offering registration costs

 

(695

)

(32

)

Distributions to stockholders

 

(15,456

)

(11,426

)

Increase (decrease) in net assets from capital transactions

 

25,139

 

(11,458

)

 

 

 

 

 

 

Total increase (decrease) in net assets

 

17,672

 

(2,446

)

 

 

 

 

 

 

Net Assets

 

 

 

 

 

Beginning of period

 

206,445

 

222,819

 

End of period

 

$

224,117

 

$

220,373

 

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

13



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

 

 

Nine Months Ended December31,

 

 

 

2008

 

2007

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net (decrease) increase in net assets resulting from operations

 

$

(7,467

)

$

9,012

 

Adjustments to reconcile net (decrease) increase in net assets resulting from operations to net cash provided by (used in) operating activities:

 

 

 

 

 

Purchase of investments

 

(47,655

)

(157,335

)

Principal repayments of investments

 

26,753

 

59,723

 

Proceeds from the sale of investments

 

13,296

 

15,697

 

Net unrealized depreciation of investment portfolio

 

13,673

 

424

 

Net unrealized appreciation of derivative

 

 

(5

)

Net realized loss on sales of investments

 

4,215

 

198

 

Net amortization of premiums and discounts

 

27

 

209

 

Amortization of deferred finance costs

 

324

 

596

 

Decrease (increase) in interest receivable

 

46

 

(660

)

Decrease in due from custodian

 

1,969

 

9,282

 

Increase in prepaid insurance

 

(63

)

(255

)

Decrease (increase) in other assets

 

295

 

(150

)

Increase (decrease) in other liabilities

 

50

 

(14

)

(Decrease) increase in administration fee payable to Administrator (See Note 4)

 

(13

)

49

 

Increase (decrease) in base management fee payable to Adviser (See Note 4)

 

137

 

(244

)

Increase in loan servicing fee payable to Adviser (See Note 4)

 

7

 

11

 

Increase in accrued expenses

 

1

 

387

 

Net cash provided by (used in) operating activities

 

5,595

 

(63,075

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Net proceeds from the issuance of common stock

 

40,595

 

(32

)

Borrowings from line of credit

 

133,000

 

196,350

 

Repayments of line of credit

 

(159,971

)

(145,887

)

Deferred finance costs

 

 

(430

)

Distributions paid

 

(15,456

)

(11,426

)

Net cash (used in) provided by financing activities

 

(1,832

)

38,575

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

3,763

 

(24,500

)

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

9,360

 

37,789

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

13,123

 

$

13,289

 

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

14



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS

(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

 

 

 

Three Months Ended December 31,

 

Nine Months Ended December 31,

 

 

 

2008

 

2007

 

2008

 

2007

 

Per Share Data (1)

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

10.57

 

$

13.24

 

$

12.47

 

$

13.46

 

 

 

 

 

 

 

 

 

 

 

Income from investment operations:

 

 

 

 

 

 

 

 

 

Net investment income (2)

 

0.16

 

0.23

 

0.49

 

0.58

 

Realized loss on sale of investments (2)

 

 

(0.01

)

(0.20

)

(0.01

)

Net unrealized (depreciation) appreciation of investments (2)

 

(0.34

)

0.09

 

(0.64

)

(0.03

)

Total from investment operations

 

(0.18

)

0.31

 

(0.35

)

0.54

 

 

 

 

 

 

 

 

 

 

 

Distributions to stockholders:

 

 

 

 

 

 

 

 

 

Net investment income

 

(0.24

)

(0.24

)

(0.72

)

(0.69

)

Total distributions (3)

 

(0.24

)

(0.24

)

(0.72

)

(0.69

)