Press Release
August 06, 2015

Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2015

Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2015

Fiscal First Quarter and other Recent Highlights:

  • Net investment income per share for the quarter was $0.22, compared to $0.22 for the quarter ended March 31, 2015
  • Net asset value per share at the end of the quarter was $8.01, compared to $8.18 at March 31, 2015, a decline of 2.1%
  • Declared a dividend of $0.20 per share for the quarter
  • Invested $509 million during the quarter
  • Net investment activity before repayment was positive $175 million, and net investment activity after repayments was negative $23 million for the quarter
  • Adopted a plan for the purpose of repurchasing up to $50 million of common stock

NEW YORK--(BUSINESS WIRE)--Aug. 6, 2015-- Apollo Investment Corporation (NASDAQ:AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its first fiscal quarter ended June 30, 2015. The Company’s net investment income was $0.22 per share for the quarter ended June 30, 2015, compared to $0.22 for the quarter ended March 31, 2015. The Company’s net asset value (“NAV”) was $8.01 per share as of June 30, 2015, compared to $8.18, as of March 31, 2015.

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 2016, payable on October 6, 2015 to stockholders of record as of September 21, 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 the quarter, we continued to successfully execute on our portfolio rotation strategy as secured debt increased to 64% of the total portfolio. We also executed against our goal of monetizing select equity positions as evidenced by the exit of our investment in PlayPower. We will continue to look to monetize non-yielding investments and redeploy the proceeds into income-producing assets.” Mr. Zelter continued, “Consistent with our objective of maximizing shareholder value, and given where our stock is currently trading, we intend to begin repurchasing shares.”

                   

FINANCIAL HIGHLIGHTS

 
($ in billions, except per share) 6/30/15 3/31/15 12/31/14 9/30/14 6/30/14
Total assets $ 3.45 $ 3.56 $ 3.70 $ 3.83 $ 3.81
Investment portfolio (fair value) $ 3.31 $ 3.35 $ 3.51 $ 3.67 $ 3.64
Debt outstanding $ 1.39 $ 1.50 $ 1.59 $ 1.58 $ 1.57
Total net assets $ 1.90 $ 1.94 $ 2.00 $ 2.06 $ 2.07
Net asset value per share $ 8.01 $ 8.18 $ 8.43 $ 8.72 $ 8.74
 
Debt-to-equity ratio 0.73 x 0.77 x 0.80 x 0.76 x 0.76 x
Net leverage ratio (1) 0.72 x 0.72 x 0.74 x 0.76 x 0.75 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
June 30, 2015

 

Investments made (2) $ 509
Investments sold $ (334 )
Net activity before repaid investments $ 175
Investments repaid $ (198 )
Net investment activity $ (23 )
 
Portfolio companies, at beginning of period 105
New portfolio companies 10
Exited portfolio companies (13 )
Portfolio companies, at end of period 102
 
Number of investments in existing companies 20
 
(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, 2015

 

Net investment income $ 50,986
Net realized and unrealized loss $ (44,596 )
Net increase in net assets from operations $ 6,390
 
(per share)
Net investment income per share $ 0.22
Net realized and unrealized loss per share $ (0.19 )
Earnings per share – basic $ 0.03
Earnings per share – diluted (3) $ 0.03
(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 months ended June 30, 2015, anti-dilution would total $0.01.
 

CONFERENCE CALL / WEBCAST AT 10:00 AM EDT ON AUGUST 6, 2015

The Company will host a conference call on Thursday, August 6, 2015 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 # 76707398 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 20, 2015 by dialing (800) 585-8367; international callers please dial (404) 537-3406, reference Conference ID # 76707398. 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, 2015, March 31, 2015, December 31, 2014, September 30, 2014, and June 30, 2014 are as follows:

                   

June
30, 2015

March
31, 2015

December
31, 2014

September
30, 2014

June
30, 2014

Portfolio composition, measured at fair
value:

Secured debt 64 % 60 % 61 % 63 % 59 %
Unsecured debt 10 % 14 % 15