November 08, 2016
Apollo Investment Corporation Reports Financial Results for the Quarter Ended September 30, 2016
Fiscal Second Quarter and Other Recent Highlights:
- Net investment income per share for the quarter was $0.18, compared to $0.16 for the quarter ended June 30, 2016
- Net asset value per share as of the end of the quarter was $6.95 compared to $6.90 as of June 30, 2016, a 0.7% increase
- Declared a dividend of $0.15 per share
- Net leverage as of the end of the quarter was 0.63 x, compared to 0.66 x as of June 30, 2016
- Continued to make steady progress toward the successful execution of our portfolio repositioning strategy including reducing exposure to oil & gas and structured credit investments
- Expanded the share repurchase program by $50 million in September which increased the total amount available to be repurchased to $150 million, and continued to actively repurchase stock during the quarter
NEW YORK--(BUSINESS WIRE)--Nov. 8, 2016-- Apollo Investment Corporation (NASDAQ:AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its second fiscal quarter ended September 30, 2016. The Company’s net investment income was $0.18 per share for the quarter ended September 30, 2016, compared to $0.16 per share for the quarter ended June 30, 2016. The Company’s net asset value (“NAV”) was $6.95 per share as of September 30, 2016 compared to $6.90 as of June 30, 2016.
On November 7, 2016, the Board of Directors declared a dividend of $0.15 per share, payable on January 5, 2017 to shareholders of record as of December 21, 2016.
Mr. James Zelter, Apollo Investment’s Chief Executive Officer, commented, “We continue to make steady progress toward the successful execution of the strategy that we outlined last quarter. During the period, we reduced our exposure to certain existing verticals including oil and gas and structured credit and closed two life sciences co-investment transactions. Given the competitive environment, we were disciplined investors and reduced our net leverage ratio during the period which provides us with dry powder to deploy in more proprietary asset classes when attractive opportunities become available.” Mr. Zelter continued, “During the quarter, we continued to actively repurchase our stock below NAV which is a component of our strategy to deliver value to our shareholders.”
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FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||||||||||||
| ($ in billions, except per share data) |
September 30, 2016 |
June 30, 2016 |
March 31, 2016 |
December 31, 2015 |
September 30, 2015 | |||||||||||||||||||||||||||||
| Total assets | $ | 2.65 | $ | 2.79 | $ | 3.09 | $ | 3.22 | $ | 3.30 | ||||||||||||||||||||||||
| Investment portfolio (fair value) | $ | 2.55 | $ | 2.62 | $ | 2.92 | $ | 3.07 | $ | 3.19 | ||||||||||||||||||||||||
| Debt outstanding (1) | $ | 1.01 | $ | 1.10 | $ | 1.31 | $ | 1.38 | $ | 1.37 | ||||||||||||||||||||||||
| Net assets | $ | 1.54 | $ | 1.55 | $ | 1.65 | $ | 1.72 | $ | 1.83 | ||||||||||||||||||||||||
| Net asset value per share | $ | 6.95 | $ | 6.90 | $ | 7.28 | $ | 7.56 | $ | 7.83 | ||||||||||||||||||||||||
| Debt-to-equity ratio (1) | 0.66 | x | 0.71 | x | 0.80 | x | 0.80 | x | 0.75 x | |||||||||||||||||||||||||
| Net leverage ratio (1) (2) | 0.63 | x | 0.66 | x | 0.75 | x | 0.76 | x | 0.73 x | |||||||||||||||||||||||||
| ___________________ |
| (1) Numbers for March 31, 2016 were updated due to the retrospective application of the new accounting pronouncements (ASU 2015-03 and ASU 2015-15) adopted as of April 1, 2016. |
| (2) 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 currencies, divided by net assets. |
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PORTFOLIO AND INVESTMENT ACTIVITY | ||||||||||||||
| (in millions)* |
Three Months |
Six Months | ||||||||||||
| Investments made in portfolio companies | $ | 127.6 | $ | 250.4 | ||||||||||
| Investments sold | (17.9 | ) | (164.0 | ) | ||||||||||
| Net activity before repaid investments | 109.7 | 86.4 | ||||||||||||
| Investments repaid | (197.1 | ) | (390.5 | ) | ||||||||||
| Net investment activity | $ | (87.4 | ) | $ | (304.1 | ) | ||||||||
| Portfolio companies at beginning of period | 81 | 89 | ||||||||||||
| Number of new portfolio companies | 6 | 11 | ||||||||||||
| Number of exited portfolio companies | (5 | ) | (18 | ) | ||||||||||
| Portfolio companies at end of period | 82 | 82 | ||||||||||||
| Number of investments in existing portfolio companies | 10 | 22 | ||||||||||||
| ____________________ |
| * Totals may not foot due to rounding. |
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OPERATING RESULTS | ||||||||||||||
| (in millions) |
Three Months |
Six Months | ||||||||||||
| Net investment income | $ | 39.5 | $ | 75.6 | ||||||||||
| Net realized and change in unrealized gains (losses) | 1.6 | |||||||||||||