February 09, 2016
Apollo Investment Corporation Reports Financial Results for the Quarter Ended December 31, 2015
Fiscal Third Quarter and other Recent Highlights:
- Net investment income per share for the quarter was $0.21, compared to $0.21 for the quarter ended September 30, 2015
- Net asset value per share as of the end of the quarter was $7.56, compared to $7.83 as of September 30, 2015, a 3.4% decline
- Declared a dividend of $0.20 per share for the quarter
- Invested $205 million during the quarter
- Net investment activity before repaid investments was $65 million, and net investment activity after repayments was $(57) million for the quarter
- Repurchased 10,584,855 shares of common stock for an aggregate cost of $62.4 million since inception of the share repurchase program in August 2015 through February 8, 2016
NEW YORK--(BUSINESS WIRE)--Feb. 9, 2016-- Apollo Investment Corporation (NASDAQ:AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its third fiscal quarter ended December 31, 2015. The Company’s net investment income was $0.21 per share for the quarter ended December 31, 2015, compared to $0.21 per share for the quarter ended September 30, 2015. The Company’s net asset value (“NAV”) was $7.56 per share as of December 31, 2015, compared to $7.83 as of September 30, 2015.
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 2016, payable on April 6, 2016 to stockholders of record as of March 21, 2016. 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, “NAV per share declined during the quarter due to the dislocation in the credit markets which resulted in spread widening, as well as from low and falling oil prices.” Mr. Zelter continued, “During the quarter we continued to repurchase stock. Since commencing our repurchase program in August, we have repurchased 10.6 million shares or 4.5% of initial shares outstanding for a total cost of $62 million. As a result, there has been a 7 cent per share accretive impact to NAV from stock buybacks through December.”
FINANCIAL HIGHLIGHTS
| ($ in billions, except per share) | December 31, 2015 | September 30, 2015 | June 30, 2015 | March 31, 2015 | December 31, 2014 | |||||||||||||||
| Total assets | $ | 3.22 | $ | 3.30 | $ | 3.45 | $ | 3.56 | $ | 3.70 | ||||||||||
| Investment portfolio (fair value) | $ | 3.07 | $ | 3.19 | $ | 3.31 | $ | 3.35 | $ | 3.51 | ||||||||||
| Debt outstanding | $ | 1.38 | $ | 1.37 | $ | 1.39 | $ | 1.50 | $ | 1.59 | ||||||||||
| Total net assets | $ | 1.72 | $ | 1.83 | $ | 1.90 | $ | 1.94 | $ | 2.00 | ||||||||||
| Net asset value per share | $ | 7.56 | $ | 7.83 | $ | 8.01 | $ | 8.18 | $ | 8.43 | ||||||||||
| Debt-to-equity ratio | 0.80 | x | 0.75 x | 0.73 x | 0.77 x | 0.80 x | ||||||||||||||
| Net leverage ratio (1) | 0.76 | x | 0.73 x | 0.72 x | 0.72 x | 0.74 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.
PORTFOLIO AND INVESTMENT ACTIVITY
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
| (in millions)* | 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Investments made in portfolio companies (1) | $ | 204.6 | $ | 608.8 | $ | 918.2 | $ | 1,839.4 | ||||||||
| Investments sold | (139.7 | ) | (444.3 | ) | (554.5 | ) | (1,070.6 | ) | ||||||||
| Net activity before repaid investments | 64.9 | 164.4 | 363.6 | 768.8 | ||||||||||||
| Investments repaid | (121.9 | ) | (254.9 | ) | (519.5 | ) | (704.5 | ) | ||||||||
| Net investment activity | $ | (57.0 | ) | $ | (90.4 | ) | $ | (155.9 | ) | $ | 64.2 | |||||
| Portfolio companies at beginning of period | 98 | 113 | 105 | 111 | ||||||||||||
| Number of new portfolio companies | 4 | 13 | 18 | 53 | ||||||||||||
| Number of exited portfolio companies | (7 | ) | (17 | ) | (28 | ) | (55 | ) | ||||||||
| Portfolio companies at end of period | 95 | 109 | 95 | 109 | ||||||||||||
| Number of investments in existing portfolio companies | 19 | 13 | 48 | 55 | ||||||||||||
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* Totals may not foot due to rounding.
(1) Investments were primarily made through a combination of primary and secondary debt investments.
OPERATING RESULTS
| Three Months Ended December 31, | Nine Months Ended December 31, | |||||||||||||||
| (in millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Net investment income | $ | 48.1 | $ | 56.7 | $ | 148.6 | $ | 175.9 | ||||||||
| Net realized and change in unrealized gains (losses) | (73.9 | ) | (76.1 | ) | (169.8 | ) | (88.8 | ) | ||||||||
| Net increase (decrease) in net assets resulting from operations | $ | (25.8 | ) | $ | (19.5 | ) | $ | (21.1 | ||||||||