November 05, 2015
Apollo Investment Corporation Reports Financial Results for the Quarter Ended September 30, 2015
Fiscal Second Quarter and other Recent Highlights:
- Net investment income per share for the quarter was $0.21, compared to $0.22 for the quarter ended June 30, 2015
- Net asset value per share as of the end of the quarter was $7.83, compared to $8.01 as of June 30, 2015, a 2.2% decline
- Declared a dividend of $0.20 per share for the quarter
- Invested $204 million during the quarter
- Net investment activity before repayment was positive $124 million, and net investment activity after repayments was negative $75 million for the quarter
- Repurchased 3,340,400 shares of common stock for an aggregate cost of $21.2 million, during the quarter
NEW YORK--(BUSINESS WIRE)--Nov. 5, 2015-- Apollo Investment Corporation (NASDAQ: AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its second fiscal quarter ended September 30, 2015. The Company’s net investment income was $0.21 per share for the quarter ended September 30, 2015, compared to $0.22 for the quarter ended June 30, 2015. The Company’s net asset value (“NAV”) was $7.83 per share as of September 30, 2015, compared to $8.01 as of June 30, 2015.
Additionally, the Company also announced that its Board of Directors has declared a dividend of $0.20 per share for the second fiscal quarter of 2016, payable on January 5, 2016 to stockholders of record as of December 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’s Chief Executive Officer, commented, “During the quarter we focused on investing in existing portfolio companies and redeploying a portion of capital from sales and repayments into our stock repurchase plan. We repurchased over $21 million of common stock during the quarter.” Mr. Zelter continued, “Given where our stock is currently trading, we intend to continue repurchasing shares.”
FINANCIAL HIGHLIGHTS
| ($ in billions, except per share) | 9/30/15 | 6/30/15 | 3/31/15 | 12/31/14 | 9/30/14 | |||||
| Total assets | $ 3.30 | $ 3.45 | $ 3.56 | $ 3.70 | $ 3.83 | |||||
| Investment portfolio (fair value) | $ 3.19 | $ 3.31 | $ 3.35 | $ 3.51 | $ 3.67 | |||||
| Debt outstanding | $ 1.37 | $ 1.39 | $ 1.50 | $ 1.59 | $ 1.58 | |||||
| Total net assets | $ 1.83 | $ 1.90 | $ 1.94 | $ 2.00 | $ 2.06 | |||||
| Net asset value per share | $ 7.83 | $ 8.01 | $ 8.18 | $ 8.43 | $ 8.72 | |||||
| Debt-to-equity ratio | 0.75 x | 0.73 x | 0.77 x | 0.80 x | 0.76 x | |||||
| Net leverage ratio (1) | 0.73 x | 0.72 x | 0.72 x | 0.74 x | 0.76 x |
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| (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
September 30, 2015 |
Six months ended
September 30, 2015 | ||||||
| Investments made (2) | $ | 204 | $ | 714 | ||||
| Investments sold | (80 | ) | (415 | ) | ||||
| Net activity before repaid investments | $ | 124 | $ | 299 | ||||
| Investments repaid | (200 | ) | (398 | ) | ||||
| Net investment activity (3) | $ | (75 | ) | $ | (99 | ) | ||
| Portfolio companies, at beginning of period | 102 | 105 | ||||||
| New portfolio companies | 4 | 14 | ||||||
| Exited portfolio companies | (8 | ) | (21 | ) | ||||
| Portfolio companies, at end of period | 98 | 98 | ||||||
| Number of investments in existing companies | 9 | 29 | ||||||
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| (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
September 30, 2015 |
Six months ended
September 30, 2015 | ||||||
| Net investment income | $ | 49,561 | $ | 100,548 | ||||
| Net realized and unrealized loss | (51,308 | ) | (95,904 | ) | ||||
| Net increase (decrease) in net assets from operations | $ | (1,747 | ) | $ | 4,644 | |||
| (per share) | ||||||||
| Net investment income per share | $ | 0.21 | $ | 0.43 | ||||
| Net realized and unrealized loss per share | (0.22 | ) | (0.41 | ) | ||||
| Earnings (Loss) per share – basic | $ | (0.01 | ) | $ | 0.02 | |||
| Earnings (Loss) per share – diluted (4) | $ | (0.01 | ) | $ | 0.02 | |||
| (4) | In applying the if-converted method, conversion shall not be assumed for purposes of computing diluted earnings per share if the effect would be anti-dilutive. For the three and six months ended September 30, 2015, anti-dilution would total $0.01 and $0.02, respectively. | |
CONFERENCE CALL / WEBCAST AT 10:00 AM EST ON NOVEMBER 5, 2015
The Company will host a conference call on Thursday, November 5, 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 # 53609056 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 November 26, 2015 by dialing (800) 585-8367; international callers please dial (404) 537-3406, reference Conference ID # 53609056. 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 the Company’s 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 September 30, 2015, June 30, 2015, March 31, 2015, December 31, 2014, and September 30, 2014, were as follows:
|
September
30, 2015 |
June
30, 2015 |
March
31, 2015 |
December |
September | |||||||
| Portfolio composition, measured at fair value: | |||||||||||
| Secured debt | 63% | 64% | 60% | 61% | 63% | ||||||
| Unsecured debt | 9% | 10% | 14% | 15% | 17% | ||||||
| Structured products and other | 13% |