Press Release
August 07, 2014

Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2014

Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2014

NEW YORK, NY -- (Marketwired) -- 08/07/14 -- Apollo Investment Corporation (NASDAQ: AINV)

Fiscal First Quarter and Recent Highlights:

  • Net investment income per share for the quarter was $0.23, compared to $0.22 for the quarter ended March 31, 2014

  • Net asset value per share at the end of the quarter was $8.74, compared to $8.67 at March 31, 2014, an increase of approximately 1%

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

  • Invested $650 million during the quarter, substantially driven by secured debt opportunities in the primary market

  • Net investment activity was $133 million for 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, 2014. The Company's net investment income was $0.23 per share for the quarter ended June 30, 2014, compared to $0.22 for the quarter ended March 31, 2014. The Company's net asset value ("NAV") was $8.74 per share as of June 30, 2014, up from $8.67 at March 31, 2014.

Additionally, the Company also announced that its Board of Directors has declared a dividend of $0.20 per share for the first fiscal quarter of 2015, payable on October 6, 2014 to stockholders of record as of September 19, 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, "We are pleased to report another solid quarter including strong investment income, a steady increase in net asset value, a stable portfolio yield, and an improvement in the portfolio's overall credit quality. We believe the strength and breadth of our platform enabled us to be prudent and selective investors during the quarter, as we focused on primary secured debt opportunities. During the quarter, we also sold some lower yielding positions and reduced select larger exposures."

FINANCIAL HIGHLIGHTS
($ in billions, except per share data) June 30, 2014 March 31, 2014
Total assets $3.81 $3.64
Investment portfolio (fair value) $3.64 $3.48
Debt outstanding $1.57 $1.37
Total net assets $2.07 $2.05
Net asset value per share $8.74 $8.67
Debt-to-equity ratio 0.76 x 0.67 x
Net leverage ratio (1) 0.75 x 0.68 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.

INVESTMENT ACTIVITY AND PORTFOLIO COMPANIES
($ in millions) Three months ended
June 30, 2014
Investments made (2) $650
Investments sold $(397)
Net activity before repaid investments $253
Investments repaid $(120)
Net investment activity $133
Portfolio companies, at beginning of period 111
New portfolio companies 25
Exited portfolio companies (19)
Portfolio companies, at end of period 117
Number of investments in existing companies 24

(2) Investments were primarily made through a combination of primary and secondary debt investments.

OPERATING RESULTS
($ in thousands, except per share data) Three months ended
June 30, 2014
Net investment income $53,551
Net realized and unrealized gain $11,085
Net increase in net assets from operations $64,636
(per share)
Net investment income per share $0.23
Net realized and unrealized gain per share $0.04
Earnings per share - basic $0.27
Earnings per share - diluted $0.27

CONFERENCE CALL / WEBCAST AT 10:00 AM EDT ON AUGUST 7, 2014

The Company will host a conference call on Thursday, August 7, 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 # 71479492 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 14, 2014 by dialing (800) 585-8367; international callers please dial (404) 537-3406, reference Conference ID # 71479492. 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.

Our portfolio composition and weighted average yields at June 30, 2014 and at March 31, 2014 are as follows:

June 30, 2014 March 31, 2014
Portfolio composition, measured at fair value:
Secured debt 59% 56%
Unsecured debt 22% 27%
Structured products and other 8% 6%
Common equity, preferred equity and warrants 11% 11%
Weighted average yields, at current cost basis, exclusive of securities on non-accrual status:
Secured debt portfolio 10.9% 10.8%
Unsecured debt portfolio 11.5% 11.5%
Total debt portfolio 11.1% 11.1%
Income-bearing investment portfolio composition, measured at fair value:
Fixed rate amount $1.7 billion $1.7 billion
Floating rate amount $1.5 billion $1.3 billion
Fixed rate % 53% 58%