Press Release
August 04, 2017

Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2017

Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2017

Fiscal First Quarter and Other Recent Highlights:

  • Net investment income per share for the quarter was $0.15, compared to $0.17for the quarter ended March 31, 2017
  • Net asset value per share as of the end of the quarter was $6.73 compared to $6.74 as of March 31, 2017
  • Declared a distribution of $0.15 per share
  • Net leverage as of the end of the quarter was 0.62 x, compared to 0.55 x as of March 31, 2017 providing us with substantial investment capacity to further execute our portfolio repositioning strategy
  • Continued to successfully execute our portfolio repositioning strategy, which included increasing core assets (1) to 74% of the portfolio as of the end of the quarter, at fair value

NEW YORK--(BUSINESS WIRE)-- Apollo Investment Corporation (NASDAQ:AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its first fiscal quarter ended June 30, 2017. The Company’s net investment income was $0.15 per share for the quarter ended June 30, 2017, compared to $0.17 per share for the quarter ended March 31, 2017. The Company’s net asset value (“NAV”) was $6.73per share as of June 30, 2017, compared to $6.74 as of March 31, 2017.

On August 3, 2017, the Board of Directors declared a distribution of $0.15 per share, payable on October 5, 2017 to shareholders of record as of September 21, 2017.

Mr. James Zelter, Apollo Investment’s Chief Executive Officer, commented, “We are pleased to report that we continue to successfully execute the repositioning strategy that we outlined last year. We continue to reduce our exposure to non-core and legacy assets and deploy capital into our core strategies including investments made pursuant to our co-investment order. We have also continued to improve the risk profile of our portfolio by increasing our exposure to first lien and floating rate loans, and decreasing our average borrower exposure.” Mr. Zelter continued, “Looking ahead, we will continue to focus on deploying capital into opportunities sourced from the Apollo direct origination platform. We believe that our strong investment capacity is a distinct advantage for when market conditions improve.”

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(1)   Core strategies include corporate lending, aviation, life sciences, asset based and lender finance.
 

FINANCIAL HIGHLIGHTS

         
 
($ in billions, except per share data)June 30,
2017
March 31,
2017
December 31,
2016
September 30,
2016
June 30,
2016
Total assets $ 2.49 $ 2.41 $ 2.64 $ 2.65 $ 2.79
Investment portfolio (fair value) $ 2.42 $ 2.32 $ 2.53 $ 2.55 $ 2.62
Debt outstanding $ 0.92 $ 0.85 $ 1.03 $ 1.01 $ 1.10
Net assets $ 1.48 $ 1.48 $ 1.51 $ 1.54 $ 1.55
Net asset value per share $ 6.73 $ 6.74 $ 6.86 $ 6.95 $ 6.90
 
Debt-to-equity ratio 0.62 x 0.57 x 0.69 x 0.66 x 0.71 x
Net leverage ratio (1) 0.62 x 0.55 x 0.66 x 0.63 x 0.66 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 currencies, divided by net assets.
 

PORTFOLIO AND INVESTMENT ACTIVITY

   
 
(in millions)*

Three Months
Ended June 30,
2017

Investments made in portfolio companies $ 342.0
Investments sold (9.9 )
Net activity before repaid investments 332.1
Investments repaid (242.0 )
Net investment activity $ 90.1
 
Portfolio companies at beginning of period 86
Number of new portfolio companies 11
Number of exited portfolio companies (13 )
Portfolio companies at end of period 84  
 
Number of investments made in existing portfolio companies 11
____________________
*   Totals may not foot due to rounding.
 

OPERATING RESULTS

   
 
(in millions) *

Three Months
Ended June 30,
2017

Net investment income $ 33.3
Net realized and change in unrealized gains (losses) (4.5 )
Net increase (decrease) in net assets resulting from operations $ 28.8  
 
(per share) *
Net investment income on per average share basis $ 0.15
Net realized and change in unrealized gain (loss) per share (0.02 )
Earnings per share — basic $ 0.13  
____________________
*   Totals may not foot due to rounding.
 

CONFERENCE CALL / WEBCAST AT 10:00 AM EDT ON AUGUST 4, 2017

The Company will host a conference call on Friday, August 4, 2017 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 #46731904 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 29, 2017 by dialing (800) 585-8367; international callers please dial (404) 537-3406, reference Conference ID # 46731904. 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 on the Investor Relations section of the Company’s website at www.apolloic.com.

Our portfolio composition and weighted average yields as of June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016, and June 30, 2016 were as follows:

  June 30,
2017
  March 31,
2017
  December 31,
2016
  September 30,
2016
  June 30,
2016
Portfolio composition, at fair value:
Secured debt 77% 75% 69% 64% 65%
Unsecured debt 7% 7% 10% 9% 9%
Structured products and other 6% 7% 9% 12% 12%
Preferred equity 1% 1% 1% 3% 3%
Common equity/interests and warrants 9% 10% 11% 12% 11%

Weighted average yields, at amortized
cost, exclusive of investments on
non-accrual status (1):

Secured debt portfolio 10.2% 10.2% 10.9% 11.0% 11.0%
Unsecured debt portfolio 11.1% 11.1% 10.7% 10.8% 10.8%
Total debt portfolio 10.3% 10.3% 10.9% 11.0% 11.0%
Interest Rate Type, at fair value (2):
Fixed rate amount $0.2 billion$0.2 billion$0.2 billion$0.2 billion$0.3 billion
Floating rate amount $1.2 billion$1.1 billion$1.0 billion$0.9 billion$0.8 billion
Fixed rate, as percentage of total 14% 16% 16% 21% 23%
Floating rate, as percentage of total 86% 84% 84% 79% 77%
Interest Rate Type, at amortized cost (2):
Fixed rate amount $0.2 billion$0.2 billion$0.2 billion$0.2 billion$0.3 billion
Floating rate amount $1.1 billion$1.0 billion$1.0 billion$0.9 billion$0.9 billion
Fixed rate, as percentage of t