Press Release
May 20, 2014

Apollo Investment Corporation Reports Financial Results for the Quarter and Year Ended March 31, 2014

Apollo Investment Corporation Reports Financial Results for the Quarter and Year Ended March 31, 2014

NEW YORK, NY -- (Marketwired) -- 05/20/14 -- Apollo Investment Corporation (NASDAQ: AINV)

Fiscal Fourth Quarter and Recent Highlights:

  • Net investment income per share for the quarter was $0.22, compared to $0.22 for the quarter ended December 31, 2013

  • Net asset value per share at the end of the quarter was $8.67, compared to $8.57 at December 31, 2013, a 1.2% increase

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

  • Invested $986 million during the quarter, substantially driven by primary originations, representing the highest quarterly level of gross investment activity in the Company's history

  • Net investment activity was $259 million for the quarter

  • Fitch Rating affirmed the Company's Issuer Default Rating (IDR) and secured debt rating at BBB and upgraded the senior unsecured rating to BBB in April

Fiscal Year Highlights:

  • Net investment income per share for the year was $0.91, compared to $0.83 for the year ended March 31, 2013

  • Net asset value per share at the end of the year was $8.67, compared to $8.27 at March 31, 2013, a 4.8% increase

  • Dividends paid to stockholders was $0.80 per share during the year

  • Invested $2.8 billion during the year, substantially driven by primary originations, representing the highest annual level of gross investment activity in the Company's history

  • Net investment activity was $494 million for the year

Apollo Investment Corporation (NASDAQ: AINV) or the "Company," or "Apollo Investment," today announced financial results for its fourth fiscal quarter ended March 31, 2014. The Company's net investment income was $0.22 per share for the quarter ended March 31, 2014, compared to $0.22 for the quarter ended December 31, 2013. The Company's net asset value ("NAV") was $8.67 per share as of March 31, 2014, up from $8.57 at December 31, 2013.

Additionally, the Company also announced that its Board of Directors has declared a dividend of $0.20 per share for the fourth fiscal quarter of 2014, payable on July 7, 2014 to stockholders of record as of June 20, 2014. 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, commented, "Amidst a challenging investing environment, we are pleased to report strong results for the March quarter, including solid net investment income, an increase in net asset value, and a record level of asset deployment. Investment activity for the quarter focused on primary market secured debt opportunities and on our specialty verticals. We also utilized the strength in the markets to monetize select higher risk positions."

FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED MARCH 31, 2014

Select Balance Sheet Data
March 31, 2014 December 31, 2013 March 31, 2013
Total assets $3.64 billion $3.38 billion $2.94 billion
Investment portfolio $3.48 billion $3.18 billion $2.85 billion
Debt $1.37 billion $1.26 billion $1.16 billion
Net assets $2.05 billion $1.93 billion $1.68 billion
Net asset value per share $8.67 $8.57 $8.27
Debt-to-equity 0.67 x 0.66 x 0.69 x
Net leverage ratio 0.68 x 0.65 x 0.70 x

(1) The Company's net 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 and Portfolio Companies
Three months ended
March 31, 2014
Twelve months ended
March 31, 2014
Investments made during the period $986 million $2,816 million
Investments sold $(323) million $(1,006) million
Net activity before repaid investments $663 million $1,810 million
Investments repaid $(404) million $(1,316) million
Net investment activity $259 million $494 million
Portfolio companies, at beginning of period 101 81
New portfolio companies 26 81
Exited portfolio companies 16 51
Portfolio companies, at end of period 111 111
Operating Results
Three months ended
March 31, 2014
Twelve months ended
March 31, 2014
(in thousands)
Net investment income $49,612 $201,248
Net realized and unrealized gain $20,293 $69,624
Net increase in net assets from operations $69,905 $270,872
(per share)
Net investment income per share $0.22 $0.91
Net realized and unrealized gain per share $0.09 $0.30
Earnings per share - basic $0.31 $1.21
Earnings per share - diluted $0.30 $1.18

CONFERENCE CALL / WEBCAST AT 10:00 AM EDT ON MAY 20, 2014

The Company will host a conference call on Tuesday, May 20, 2014 at 10:00 a.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 # 28609386 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 May 27, 2014 by dialing (800) 585-8367; international callers please dial (404) 537-3406, reference Conference ID # 28609386. 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

Our portfolio and investment activity during the fiscal years ended March 31, 2014 and 2013 is as follows: