Press Release
May 19, 2015

Apollo Investment Corporation Reports Financial Results for the Quarter and Year Ended March 31, 2015

Apollo Investment Corporation Reports Financial Results for the Quarter and Year Ended March 31, 2015

Fiscal Fourth Quarter and Recent Highlights:

  • Net investment income per share for the quarter was $0.22, compared to $0.24 for the quarter ended December 31, 2014
  • Net asset value per share at the end of the quarter was $8.18, compared to $8.43 at December 31, 2014, a decline of 3.0%
  • Declared a dividend of $0.20 per share for the quarter
  • Invested $372 million during the quarter, driven by opportunities in the primary market
  • Net investment activity before repayment was positive $35 million, and net investment activity after repayments was negative $104 million for the quarter
  • Issued $350 million of 10-year fixed rate unsecured debt in March
  • Amended revolving credit facility to extend maturity and increase commitments in April

Fiscal Year Highlights:

  • Net investment income per share for the year was $0.96, compared to $0.91 for the year ended March 31, 2014
  • Net asset value per share at the end of the year was $8.18, compared to $8.67 at March 31, 2014, a decline of 5.7%
  • Dividends paid to stockholders was $0.80 per share during the year
  • Invested $2.2 billion during the year, substantially driven by primary originations
  • Net investment activity before repayments was positive $804 million, and net investment activity after repayments was negative $40 million for the year

NEW YORK--(BUSINESS WIRE)--May 19, 2015-- Apollo Investment Corporation (NASDAQ:AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its fourth fiscal quarter and fiscal year ended March 31, 2015. The Company’s net investment income was $0.22 per share for the quarter ended March 31, 2015, compared to $0.24 for the quarter ended December 31, 2014. The Company’s net investment income was $0.96 per share for the fiscal year ended March 31, 2015, compared to $0.91 for the fiscal year ended March 31, 2014. The Company’s net asset value (“NAV”) was $8.18 per share as of March 31, 2015, compared to $8.43 as of December 31, 2014, and compared to $8.67 as of March 31, 2014.

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 2015, payable on July 6, 2015 to stockholders of record as of June 19, 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, “During our fiscal year, we continued to make progress on many of our objectives including repositioning the portfolio into more secured debt, while slightly improving the overall portfolio yield. Although we experienced net unrealized depreciation during the quarter, we believe the credit quality of our portfolio remains strong. In addition, we believe that we can continue to rotate out of lower yielding assets and into attractive higher yielding assets, as there continues to be a shortage of available homes for illiquid investments.” Mr. Zelter continued "We also remain focused on strengthening our balance sheet, and we are pleased to have completed our first public institutional unsecured debt offering during the quarter. Additionally, in April, we successfully amended our credit facility to extend the maturity and increase the commitments.”

FINANCIAL HIGHLIGHTS

($ in billions, except per share)       3/31/15       12/31/14       9/30/14       6/30/14       3/31/14
Total assets $ 3.56 $ 3.70 $ 3.83 $ 3.81 $ 3.64
Investment portfolio (fair value) $ 3.35 $ 3.51 $ 3.67 $ 3.64 $ 3.48
Debt outstanding $ 1.50 $ 1.59 $ 1.58 $ 1.57 $ 1.37
Total net assets $ 1.94 $ 2.00 $ 2.06 $ 2.07 $ 2.05
Net asset value per share $ 8.18 $ 8.43 $ 8.72 $ 8.74 $ 8.67
 
Debt-to-equity ratio 0.77 x 0.80 x 0.76 x 0.76 x 0.67 x
Net leverage ratio (1) 0.72 x 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, 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

March 31, 2015

   

Twelve months ended
March 31, 2015

Investments made (2) $ 372 $ 2,211
Investments sold $ (336 ) $ (1,407 )
Net activity before repaid investments (3) $ 35 $ 804
Investments repaid $ (139 ) $ (844 )
Net investment activity $ (104 ) $ (40 )
 
Portfolio companies, at beginning of period 109 111
New portfolio companies 8 60
Exited portfolio companies (12 ) (66 )
Portfolio companies, at end of period 105 105
 
Number of investments in existing companies 15 47

‒‒‒‒‒‒‒‒‒

(2) Investments were primarily made through a combination of primary and secondary debt investments.
(3) Numbers may not sum due to rounding.

OPERATING RESULTS

($ in thousands, except per share data)     Three months ended

March 31, 2015

    Twelve months ended

March 31, 2015

Net investment income $ 52,071 $ 227,973
Net realized and unrealized loss $ (63,800 ) $ (152,551 )
Net increase (decrease) in net assets from operations $ (11,729 ) $ 75,422
 
(per share)
Net investment income per share $ 0.22 $ 0.96
Net realized and unrealized loss per share $ (0.27 ) $ (0.64 )
Earnings (loss) per share – basic $ (0.05 ) $ 0.32
Earnings (loss) per share – diluted (4) $ (0.05 ) $ 0.32
 

(4) 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 twelve months ended December 31, 2015, anti-dilution would total $0.01 and $0.02, respectively.

CONFERENCE CALL / WEBCAST AT 10:00 AM EDT ON MAY 19, 2015

The Company will host a conference call on Tuesday, May 19, 2015 at 10:00 a.m. Eastern Time. All interested