Press Release
August 08, 2013

Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2013

Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2013

NEW YORK, NY -- (Marketwired) -- 08/08/13 -- Apollo Investment Corporation (NASDAQ: AINV)

Recent Highlights:

  • Net investment income per share for the quarter was $0.25, compared to $0.21 for the quarter ended March 31, 2013

  • Net asset value per share at the end of the quarter was $8.16, compared to $8.27 at March 31, 2013

  • Declared a dividend of $0.20 per share for the quarter

  • Invested $788 million during the quarter, representing the second highest quarterly level of gross investment activity in the Company's history

  • Net investment activity was $208 million for the quarter

  • Raised $182 million of common equity and issued $150 million of 30-year senior unsecured notes during the quarter

Apollo Investment Corporation (NASDAQ: AINV) or the "Company," or "Apollo Investment," today announced financial results for its first fiscal quarter ended June 30, 2013. The Company's net investment income was $0.25 per share for the quarter ended June 30, 2013 supported by increased prepayment activity, compared to $0.21 for the quarter ended March 31, 2013. The Company's net asset value ("NAV") was $8.16 per share as of June 30, 2013 down from $8.27 at March 31, 2013.

Additionally, the Company also announced that its Board of Directors has declared a dividend of $0.20 per share for the second fiscal quarter of 2014, payable on October 4, 2013 to stockholders of record as of September 20, 2013. The specific tax characteristics of this dividend will be reported to stockholders on Form 1099 after the end of the calendar year.

Mr. James Zelter, Apollo Investment Corporation's Chief Executive Officer, said, "For the June quarter, we reported strong net investment income and had our second highest origination quarter in our history. Our gross investment activity was driven by meaningful contributions from our specialty verticals and from opportunistic purchases in the secondary market." Mr. Zelter continued, "We further strengthened our capital structure by raising new equity and long-term debt during the period."

FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED JUNE 30, 2013

Select Balance Sheet Data and Other Data
June 30, 2013 March 31, 2013
Total assets $3.15 billion $2.94 billion
Investment portfolio $3.04 billion $2.85 billion
Net assets $1.83 billion $1.68 billion
Net asset value per share $8.16 $8.27
Number of portfolio companies 94 81
Debt-to-equity 0.61 x 0.69 x
Leverage Ratio (1) 0.66 x 0.70 x
(1) The Company's leverage ratio is defined as debt outstanding plus payable for investments purchased and cash equivalents, plus due to custodian, less receivable for investments sold, less cash equivalents, less cash, less foreign currency, divided by total net assets.
Portfolio Activity
Three months ended
June 30, 2013
Investments made during the period $788 million
Number of new portfolio companies invested 23
Investments sold $(105) million
Net activity before repaid investments $683 million
Investments repaid $(475) million
Net investment activity $208 million
Number of portfolio company exits 10
Operating Results
Three months ended
June 30, 2013
(in thousands)
Net investment income $52,367
Net realized and unrealized loss $(33,563)
Net increase in net assets from operations $18,804
(per share)
Net investment income per share $0.25
Net realized and unrealized loss per share $(0.16)
Earnings per share - basic and diluted $0.09

CONFERENCE CALL / WEBCAST AT 12:00 PM EDT ON AUGUST 8, 2013

The Company will host a conference call on Thursday, August 8, 2013 at 12:00 p.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (888) 802-8579 approximately 5-10 minutes prior to the call; international callers should dial (973) 633-6740. Participants should reference Apollo Investment Corporation or Conference ID # 18399472 when prompted. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Event Calendar in the Investor Relations section of our website at www.apolloic.com. Following the call you may access a replay of the event either telephonically or via audio webcast. The telephonic replay will be available approximately two hours after the live call and through August 22, 2013 by dialing (800) 585-8367; international callers please dial (404) 537-3406, reference Conference ID # 18399472. A replay of the audio webcast will also be available later that same day. To access the audio webcast please visit the Event Calendar in the Investor Relations section of our website at www.apolloic.com.

SUPPLEMENTAL INFORMATION

The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the investor relations section of the Company's website at www.apolloic.com.

PORTFOLIO AND INVESTMENT ACTIVITY

During the three months ended June 30, 2013, we invested $788 million across 23 new and 23 existing portfolio companies, through a combination of primary and secondary market purchases. This compares to investing $428 million in 10 new and 9 existing portfolio companies for the three months ended March 31, 2013. Investments sold or repaid during the three months ended June 30, 2013 totaled $580 million versus $229 million for the three months ended March 31, 2013.

At June 30, 2013, our portfolio consisted of 94 portfolio companies and was invested 48% in secured debt, 39% in unsecured debt, 6% in structured products, and 7% in common equity, preferred equity and warrants, measured at fair value, versus 81 portfolio companies invested 44% in secured debt, 43% in unsecured debt, 7% in structured products, and 6% in common equity, preferred equity and warrants, measured at fair value at March 31, 2013.

The weighted average yields on our secured debt portfolio, unsecured debt portfolio and total debt portfolio as of June 30, 2013 at our current cost basis were 11.4%, 11.8% and 11.6%, respectively, exclusive of securities on non-accrual status. The weighted average yields on our secured loan portfolio, unsecured debt portfolio and total debt portfolio as of March 31, 2013 at our current cost basis were 11.2%, 12.7% and 11.9%, respectively.

Since the initial public offering of Apollo Investment in April 2004, and through June 30, 2013, invested capital totaled $11.1 billion in 238 portfolio companies. Over the same period, Apollo Investment completed transactions with more than 100 different financial sponsors.

At June 30, 2013, 67% or $1.8 billion of our income-bearing investment portfolio was fixed rate and 33% or $0.9 billion was floating rate, measured at fair value. On a cost basis, 68% or $1.8 billion of our income-bearing investment portfolio was fixed rate and 32% or $0.9 billion was floating rate. At March 31, 2013, 64% or $1.6 billion of our income-bearing debt investment portfolio was fixed rate debt and 36% or $0.9 billion is floating rate debt, measured at fair value. On a cost basis, 65% or $1.6 billion of our income-bearing investment portfolio was fixed rate debt and 35% or $0.9 billion was floating rate debt.

APOLLO INVESTMENT CORPORATION
STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share amounts)
June 30, 2013
(unaudited)
March 31, 2013
Assets
Non-controlled/non-affiliated investments, at fair value (cost - $2,634,689 and $2,550,091, respectively) $2,571,788 $2,414,307
Non-controlled /affiliated investments, at fair value (cost - $29,340 and $0, respectively) 16,582