Press Release
February 05, 2015

Apollo Investment Corporation Reports Financial Results for the Quarter Ended December 31, 2014

Apollo Investment Corporation Reports Financial Results for the Quarter Ended December 31, 2014

Fiscal Third Quarter Highlights:

  • Net investment income per share for the quarter was $0.24, compared to $0.28 for the quarter ended September 30, 2014
  • Net asset value per share at the end of the quarter was $8.43, compared to $8.72 at September 30, 2014, a decline of 3.3%
  • Declared a dividend of $0.20 per share for the quarter
  • Invested $609 million during the quarter, driven by opportunities in the primary market
  • Net investment activity before repayment was $165 million, and net investment activity after repayments was negative $90 million for the quarter

NEW YORK--(BUSINESS WIRE)--Feb. 5, 2015-- Apollo Investment Corporation (NASDAQ:AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its third fiscal quarter ended December 31, 2014. The Company’s net investment income was $0.24 per share for the quarter ended December 31, 2014, compared to $0.28 for the quarter ended September 30, 2014. The Company’s net asset value (“NAV”) was $8.43 per share as of December 31, 2014, down from $8.72 as of September 30, 2014.

Additionally, the Company also announced that its Board of Directors has declared a dividend of $0.20 per share for the third fiscal quarter of 2015, payable on April 6, 2015 to stockholders of record as of March 20, 2015. 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, "Although the liquid credit markets were challenging during the quarter, the volatile environment enabled us to deploy capital at attractive risk-adjusted returns.” Mr. Zelter continued, “Long-term, we remain optimistic about the outlook for providers of flexible capital solutions amidst the growing impact of regulation on the lending landscape.”

FINANCIAL HIGHLIGHTS

($ in billions, except per share)  

December 31,

2014

 

September 30,

2014

 

June 30,

2014

 

March 31,

2014

Total assets $ 3.70 $ 3.83 $ 3.81 $ 3.64
Investment portfolio (fair value) $ 3.51 $ 3.67 $ 3.64 $ 3.48
Debt outstanding $ 1.59 $ 1.58 $ 1.57 $ 1.37
Total net assets $ 2.00 $ 2.06 $ 2.07 $ 2.05
Net asset value per share $ 8.43 $ 8.72 $ 8.74 $ 8.67
 
Debt-to-equity ratio 0.80 x 0.76 x 0.76 x 0.67 x
Net leverage ratio (1) 0.74 x 0.76 x 0.75 x 0.68 x

___________

(1) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, plus due to custodian, less receivable for investments sold, less cash, less foreign currency, divided by total net assets.

INVESTMENT ACTIVITY AND PORTFOLIO COMPANIES

($ in millions)   Three months ended

December 31, 2014

 

Nine months ended

December 31, 2014

Investments made (2) $ 609 $ 1,839
Investments sold $ (444 ) $ (1,070 )
Net activity before repaid investments $ 165 $ 769
Investments repaid $ (255 ) $ (705 )
Net investment activity $ (90 ) $ 64
 
Portfolio companies, at beginning of period 113 111
New portfolio companies 13 53
Exited portfolio companies   (17 )   (55 )
Portfolio companies, at end of period 109 109
 
Number of investments in existing companies 13 55

___________

(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

December 31, 2014

  Nine months ended

December 31, 2014

Net investment income $ 56,662 $ 175,902
Net realized and unrealized loss $ (76,114 ) $ (88,750 )
Net increase (decrease) in net assets from operations $ (19,452 ) $ 87,152
 
(per share)
Net investment income per share $ 0.24 $ 0.75
Net realized and unrealized loss per share $ (0.33 ) $ (0.39 )
Earnings (loss) per share – basic $ (0.09 ) $ 0.36
Earnings (loss) per share – diluted (3) $ (0.09 ) $ 0.36

(3) In applying the if-converted method, conversion shall not be assumed for purposes of computing diluted EPS if the effect would be anti-dilutive. For the three and nine months ended December 31, 2014, anti-dilution would total $0.01 and $0.01, respectively.

CONFERENCE CALL / WEBCAST AT 8:30 AM EST ON FEBRUARY 5, 2015

The Company will host a conference call on Thursday, February 5, 2015 at 8:30 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 # 63065773 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 February 12, 2015 by dialing (800) 585-8367; international callers please dial (404) 537-3406, reference Conference ID # 63065773. 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 December 31, 2014, September 30, 2014, June 30, 2014, and March 31, 2014 are as follows:

 

December 31,

2014

 

September 30,

2014

 

June 30,

2014

 

March 31,

2014

Portfolio composition, measured at fair value:
Secured debt 61 % 63 % 59 % 56 %
Unsecured debt 15 % 17 % 22 % 27 %
Structured products and other