May 19, 2016
Apollo Investment Corporation Reports Financial Results for the Quarter and Year Ended March 31, 2016
Fiscal Fourth Quarter and Other Recent Highlights:
- Net investment income per share for the quarter was $0.20 compared to $0.21 for the quarter ended December 31, 2015
- Net asset value per share as of the end of the quarter was $7.28 compared to $7.56 as of December 31, 2015, a 3.7% decline
- Declared a dividend of $0.20 per share for the quarter
- Invested $178.5 million during the quarter
- Net investment activity before repaid investments was $(11.4) million, and net investment activity after repayments was $(86.8) million for the quarter
- Repurchased 2,012,126 shares of common stock for an aggregate cost of $10.0 million during the quarter which brings total share repurchases to 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 May 18, 2016
- Announced fee reductions for fiscal year 2017 (April 1, 2016 through March 31, 2017)
- Received co-investment exemptive relief from the SEC
NEW YORK--(BUSINESS WIRE)--May 19, 2016-- 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, 2016. The Company’s net investment income was $0.20 per share for the quarter ended March 31, 2016 compared to $0.21 per share for the quarter ended December 31, 2015. The Company’s net asset value (“NAV”) was $7.28 per share as of March 31, 2016 compared to $7.56 as of December 31, 2015.
On May 18, 2016, the Board of Directors declared a dividend of $0.20 per share for the fourth quarter of fiscal year 2016, payable on July 6, 2016 to shareholders of record as of June 21, 2016. Tax characteristics of all distributions will be reported to shareholders on Form 1099 after the end of the calendar year.
Mr. James Zelter, Apollo Investment’s Chief Executive Officer, commented, “NAV per share declined during the quarter primarily due to some of our oil investments, as well as credit weakness in a few legacy investments. We continue to focus on maximizing shareholder value. Accordingly, we continued to execute on our share repurchase program and recognized a two cent per share accretive impact to NAV from stock buybacks during the quarter. We also recently announced that our Investment Adviser agreed to reduce fees for fiscal year 2017. Importantly, the revised incentive fee includes a performance adjustment.”
Mr. Zelter continued, “In addition, we are extremely pleased that we recently received co-investment exemptive relief from the SEC which allows Apollo Investment to participate in negotiated investment opportunities with other funds managed by Apollo Global Management. We believe the ability to co-invest alongside affiliated Apollo funds on a negotiated basis will broaden the investment opportunities available to us, which will greatly benefit Apollo Investment's shareholders.”
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FINANCIAL HIGHLIGHTS | |||||||||||||||||||
| ($ in billions, except per | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
| share data) | 2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||
| Total assets | $ | 3.09 | $ | 3.22 | $ | 3.30 | $ | 3.45 | $ | 3.56 | |||||||||
| Investment portfolio (fair value) | $ | 2.92 | $ | 3.07 | $ | 3.19 | $ | 3.31 | $ | 3.35 | |||||||||
| Debt outstanding | $ | 1.33 | $ | 1.38 | $ | 1.37 | $ | 1.39 | $ | 1.50 | |||||||||
| Total net assets | $ | 1.65 | $ | 1.72 | $ | 1.83 | $ | 1.90 | $ | 1.94 | |||||||||
| Net asset value per share | $ | 7.28 | $ | 7.56 | $ | 7.83 | $ | 8.01 | $ | 8.18 | |||||||||
| Debt-to-equity ratio | 0.81 | x | 0.80 | x | 0.75 x | 0.73 x | 0.77 x | ||||||||||||
| Net leverage ratio (1) | 0.76 | x | 0.76 | x | 0.73 x | 0.72 x | 0.72 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. | |
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PORTFOLIO AND INVESTMENT ACTIVITY | ||||||||||||||||
| Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||
| (in millions)* | 2016 | 2015 | 2016 | 2015 | ||||||||||||
| Investments made in portfolio companies | $ | 178.5 | $ | 371.7 | $ | 1,088.5 | $ | 2,211.1 | ||||||||
| Investments sold | (189.9 | ) | (336.3 | ) | (738.4 | ) | (1,406.9 | ) | ||||||||
| Net activity before repaid investments | (11.4 | ) | 35.4 | 350.1 | 804.1 | |||||||||||
| Investments repaid | (75.4 | ) | (139.3 | ) | (600.3 | ) | (843.8 | ) | ||||||||
| Net investment activity | $ | (86.8 | ) | $ | (103.9 | ) | $ | (250.2 | ) | $ | (39.7 | ) | ||||
| Portfolio companies at beginning of period | 95 | 109 | 105 | 111 | ||||||||||||
| Number of new portfolio companies | 4 | 8 | 22 | 60 | ||||||||||||
| Number of exited portfolio companies | (10 | ) | (12 | ) | (38 | ) | (66 | ) | ||||||||
| Portfolio companies at end of period | 89 | 105 | 89 | 105 | ||||||||||||
| Number of investments in existing portfolio companies | 12 | 15 | 35 | 47 | ||||||||||||
| ____________________ | ||
| * | Totals may not foot due to rounding. | |
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OPERATING RESULTS | ||||||||||||||||
| Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||
| (in millions) | 2016 | 2015 | 2016 | |||||||||||||