UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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x |
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTER ENDED DECEMBER 31, 2008 |
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o |
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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)
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DELAWARE |
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83-0423116 |
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(State or other jurisdiction of incorporation or organization) |
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(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.
GLADSTONE INVESTMENT CORPORATION
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PART I. |
FINANCIAL INFORMATION |
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Item 1. |
Financial Statements (Unaudited) |
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3 |
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Condensed Consolidated Schedules of Investments as of December 31, 2008 and March 31, 2008 |
4 |
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12 |
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13 |
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Condensed Consolidated Statements of Cash Flows for the nine months ended December 31, 2008 and 2007 |
14 |
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Financial Highlights for the three and nine months ended December 31, 2008 and 2007 |
15 |
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16 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
30 |
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30 |
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31 |
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38 |
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47 |
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48 |
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48 |
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48 |
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53 |
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53 |
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53 |
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53 |
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54 |
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54 |
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2
GLADSTONE INVESTMENT CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
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December 31, |
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March 31, |
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2008 |
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2008 |
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ASSETS |
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Non-Control/Non-Affiliate investments (Cost 12/31/08: $138,599; Cost 3/31/08:$166,416) |
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$ |
107,208 |
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$ |
142,739 |
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Control investments (Cost 12/31/08: $152,395; Cost 3/31/08: $138,354) |
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167,175 |
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145,407 |
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Affiliate investments (Cost 12/31/08: $63,175; Cost 3/31/08: $46,035) |
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50,912 |
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47,458 |
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Total investments at fair value (Cost 12/31/08: $354,169; Cost 3/31/08: $350,805) |
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325,295 |
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335,604 |
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Cash and cash equivalents |
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13,123 |
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9,360 |
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Interest receivable |
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1,616 |
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1,662 |
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Prepaid insurance |
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153 |
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90 |
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Deferred finance costs |
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— |
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324 |
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Due from Custodian |
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2,430 |
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4,399 |
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Due from Adviser (Refer to Note 4) |
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— |
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89 |
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Other assets |
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470 |
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765 |
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TOTAL ASSETS |
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$ |
343,087 |
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$ |
352,293 |
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LIABILITIES |
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Fee due to Administrator (Refer to Note 4) |
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$ |
195 |
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$ |
208 |
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Fee due to Adviser (Refer to Note 4) |
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55 |
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— |
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Borrowings under line of credit |
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117,864 |
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144,835 |
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Accrued expenses |
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717 |
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716 |
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Other liabilities |
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139 |
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89 |
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TOTAL LIABILITIES |
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118,970 |
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145,848 |
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NET ASSETS |
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$ |
224,117 |
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$ |
206,445 |
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ANALYSIS OF NET ASSETS: |
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Common stock, $0.001 par value, 100,000,000 shares authorized, 22,080,133 and 16,560,100 shares issued and outstanding at December 31, 2008 and March 31, 2008, respectively |
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$ |
22 |
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$ |
16 |
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Capital in excess of par value |
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264,762 |
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224,173 |
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Net unrealized depreciation of investment portfolio |
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(28,874 |
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(15,201 |
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Net unrealized depreciation of derivative |
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(53 |
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(53 |
) |
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Accumulated net investment loss |
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(11,740 |
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(2,490 |
) |
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TOTAL NET ASSETS |
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$ |
224,117 |
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$ |
206,445 |
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NET ASSETS PER SHARE |
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$ |
10.15 |
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$ |
12.47 |
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THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
3
GLADSTONE INVESTMENT CORPORATION
CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS
AS OF DECEMBER 31, 2008
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
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Company (1) |
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Industry |
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Investment (2) |
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Cost |
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Fair |
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NON-CONTROL/NON-AFFILIATE INVESTMENTS |
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Senior Syndicated Loans: |
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Activant Solutions, Inc. |
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Service - enterprise software and services |
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Senior Term Debt (6.1%, Due 5/2013) (3) |
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$ |
1,659 |
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$ |
1,224 |
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Advanced Homecare Holdings, Inc. |
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Service - home health nursing services |
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Senior Term Debt (4.2%, Due 8/2014) (3) |
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2,955 |
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2,261 |
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Aeroflex, Inc. |
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Service - provider of highly specialized electronic equipment |
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Senior Term Debt (5.4%, Due 8/2014) (3) |
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1,888 |
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1,492 |
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Compsych Investments Corp. |
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Service - employee assistance programs |
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Senior Term Debt (4.0%, Due 2/2012) (3) |
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3,167 |
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2,750 |
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CRC Health Group, Inc. |
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Service - substance abuse treatment |
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Senior Term Debt (3.7%, Due 2/2012) (3) |
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7,795 |
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6,285 |
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Critical Homecare Solutions, Inc. |
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Service - home therapy and respiratory treatment |
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Senior Term Debt (3.7%, Due 1/2012) (3) |
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4,418 |
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3,801 |
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Generac Acquisition Corp. |
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Manufacturing - standby power products |
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Senior Term Debt (6.7%, Due 11/2013) (3) |
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6,869 |
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5,162 |
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Graham Packaging Holdings Company |
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Manufacturing - plastic containers |
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Senior Term Debt (5.5%, Due 10/2011) (3) |
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3,399 |
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2,768 |
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Hargray Communications Group, Inc. |
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Service - triple-play (cable, phone, internet) provider |
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Senior Term Debt (3.4%, Due 6/2014) (3) |
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894 |
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626 |
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HMTBP Acquisition II Corp. |
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Service - aboveground storage tanks |
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Senior Term Debt (5.4%, Due 5/2014) (3) |
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3,848 |
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2,873 |
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Huish Detergents, Inc. |
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Manufacturing - household cleaning products |
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Senior Term Debt (2.2%, Due 4/2014) (3) |
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1,971 |
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1,421 |
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Hyland Software, Inc. |
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Service - provider of enterprise content management software |
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Senior Term Debt (5.6%, Due 7/2013) (3) |
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3,920 |
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3,188 |
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Interstate Fibernet, Inc. |
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Service - provider of voice and data telecommunications services |
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Senior Term Debt (5.5%, Due 7/2013) (3) |
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9,863 |
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7,252 |
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KIK Custom Products, Inc. |
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Manufacturing - consumer products |
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Senior Term Debt (5.8%, Due 5/2014) (3) |
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3,951 |
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2,590 |
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Kronos, Inc. |
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Service - workforce management solutions |
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Senior Term Debt (3.7%, Due 6/2014) (3) |
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1,904 |
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1,331 |
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Local TV Finance, LLC |
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Service - television station operator |
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Senior Term Debt (2.5%, Due 5/2013) (3) |
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987 |
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725 |
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LVI Services, Inc. |
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Service - asbestos and mold remediation |
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Senior Term Debt (6.5%, Due 11/2010) (3) |
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5,933 |
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5,162 |
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MedAssets, Inc. |
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Service - pharmaceuticals and healthcare GPO |
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Senior Term Debt (5.3%, Due 10/2013) (3) |
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3,973 |
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3,121 |
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Network Solutions, LLC |
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Service - internet domain solutions |
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Senior Term Debt (3.3%, Due 3/2014) (3) |
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8,673 |
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6,120 |
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Open Solutions, Inc. |
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Service - software outsourcing for financial institutions |
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Senior Term Debt (6.0%, Due 1/2014) (3) |
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2,656 |
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1,936 |
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Ozburn-Hessey Holding Co. LLC |
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Service - third party logistics |
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Senior Term Debt (5.6%, Due 8/2012) (3) |
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7,549 |
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6,079 |
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Pinnacle Foods Finance, LLC |
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Manufacturing - branded food products |
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Senior Term Debt (6.1%, Due 4/2014) (3) |
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1,955 |
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1,367 |
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PTS Acquisition Corp. |
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Manufacturing - drug delivery and packaging technologies |
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Senior Term Debt (3.7%, Due 4/2014) (3) |
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6,895 |
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5,026 |
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QTC Acquisition, Inc. |
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Service - outsourced disability evaluations |
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Senior Term Debt (4.1%, Due 11/2012) (3) |
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1,914 |
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1,462 |
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Radio Systems Corporation |
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Service - design electronic pet containment products |
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Senior Term Debt (3.6%, Due 9/2013) (3) |
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1,876 |
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1,391 |
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Rally Parts, Inc. |
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Manufacturing - aftermarket motorcycle parts and accessories |
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Senior Term Debt (3.6%, Due 11/2013) (3) |
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2,471 |
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1,769 |
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RPG Holdings, Inc. |
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Manufacturing and design - greeting cards |
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Senior Term Debt (non-accrual) (8) |
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4,553 |
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2,048 |
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SafeNet, Inc. |
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Service - chip encryption products |
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Senior Term Debt (7.8%, Due 4/2014) (3) |
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2,957 |
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2,107 |
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SGS International, Inc. |
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Service - digital imaging and graphics |
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Senior Term Debt (4.1%, Due 12/2011) (3) |
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1,475 |
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1,226 |
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Survey Sampling, LLC |
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Service - telecommunications-based sampling |
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Senior Term Debt (9.5%, Due 5/2011) (3) |
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2,598 |
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2,386 |
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4
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Triad Laboratory Alliance, LLC |
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Service - regional medical laboratories |
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Senior Term Debt (4.7%, Due 12/2011) (3) |
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4,131 |
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3,527 |
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Wastequip, Inc. |
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Service - process and transport waste materials |
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Senior Term Debt (2.7%, Due 2/2013) (3) |
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2,900 |
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2,139 |
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WaveDivision Holdings, LLC |
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Service - cable |
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Senior Term Debt (4.4%, Due 6/2014) (3) |
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1,910 |
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1,466 |
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West Corporation |
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Service - business process outsourcing |
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Senior Term Debt (3.5%, Due 10/2013) (3) |
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3,331 |
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2,446 |
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Subtotal - Senior Syndicated Loans |
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$ |
127,238 |
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$ |
96,527 |
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Non-Syndicated Loans |
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B-Dry, LLC |
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Service - basement waterproofer |
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Revolving Credit Facility, $300 available (10.5%, Due 10/2009) |
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$ |
450 |
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$ |
442 |
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Senior Term Debt (10.0%, Due 5/2014) (5) |
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6,681 |
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6,447 |
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Senior Term Debt (10.0%, Due 5/2014) (5) |
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3,930 |
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3,792 |
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Common Stock Warrants (4) |
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300 |
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— |
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11,361 |
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10,681 |
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Total Non-Control/Non-Affiliate Investments |
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$ |
138,599 |
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$ |
107,208 |
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5
GLADSTONE INVESTMENT CORPORATION
CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS
AS OF DECEMBER 31, 2008
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
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Company (1) |
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Industry |
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Investment (2) |
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Cost |
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Fair |
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CONTROL INVESTMENTS |
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A. Stucki Holding Corp. |
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Manufacturing - railroad freight car products |
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Senior Term Debt (6.4%, Due 3/2012) |
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$ |
11,782 |
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$ |
11,782 |
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Senior Term Debt (8.7%, Due 3/2012) (6) |
|
10,587 |
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10,587 |
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Senior Subordinated Term Debt (13%, Due 3/2014) |
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8,586 |
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8,586 |
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Preferred Stock (4) |
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4,387 |
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5,034 |
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Common Stock (4) |
|
130 |
|
12,635 |
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35,472 |
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48,624 |
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Acme Cryogenics, Inc. |
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Manufacturing - manifolds and pipes for industrial gasses |
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Senior Subordinated Term Debt (11.5%, Due 3/2013) |
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14,500 |
|
14,500 |
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Redeemable Preferred Stock (4) |
|
6,984 |
|
7,557 |
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Common Stock (4) |
|
1,045 |
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— |
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Common Stock Warrants (4) |
|
25 |
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— |
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|
22,554 |
|
22,057 |
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ASH Holdings Corp. |
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Retail and Service - school buses and parts |
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Revolver, $400 available (non-accrual, Due 3/2010) |
|
1,600 |
|
— |
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Senior Subordinated Term Debt (non-accrual, Due 1/2012) |
|
5,250 |
|
— |
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Preferred Stock (4) |
|
2,500 |
|
— |
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Common Stock Warrants (4) |
|
4 |
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— |
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||
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|
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|
9,354 |
|
— |
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Cavert II Holding Corp. |
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Manufacturing - bailing wire |
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Revolving Credit Facility, $1,200 available (8.0%, Due 10/2010) |
|
1,800 |
|
1,800 |
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||
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Senior Term Debt (8.3%, Due 10/2012) |
|
5,850 |
|
5,850 |
|
||
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Senior Term Debt (10.0%, Due 10/2012) (6) |
|
3,000 |
|
3,000 |
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||
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Senior Subordinated Term Debt (13%, Due 10/2014) |
|
4,671 |
|
4,671 |
|
||
|
|
|
|
|
Preferred Stock (4) |
|
4,110 |
|
4,503 |
|
||
|
|
|
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|
Common Stock (4) |
|
69 |
|
906 |
|
||
|
|
|
|
|
|
|
19,500 |
|
20,730 |
|
||
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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 |
|
||
|
|
|
|
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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 |
|
||
|
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|
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 |
|
||
|
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|
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 |
|
||
|
|
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|
|
Common Stock (4) |
|
48 |
|
389 |
|
||
|
|
|
|
|
|
|
21,410 |
|
21,972 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Total Control Investments |
|
|
|
|
|
$ |
152,395 |
|
$ |
167,175 |
|
6
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 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
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
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 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
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
|
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
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 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
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
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 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
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
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 |
|
||||||||
|
|
|
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
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
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
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 |
) |
||||
|
|
|
|
|
|
|
|
|
||||||