November 03, 2017
Apollo Investment Corporation Reports Financial Results for the Quarter Ended September 30, 2017
Fiscal Second Quarter and Other Recent Highlights:
- Net investment income per share for the quarter was $0.16 compared to $0.15for the quarter ended June 30, 2017
- Net asset value per share as of the end of the quarter was $6.72 compared to $6.73 as of June 30, 2017
- Declared a distribution of $0.15 per share
- Net leverage as of the end of the quarter was 0.59x, compared to 0.62x as of June 30, 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 73% of the portfolio as of the end of the quarter, at fair value
- Repurchased 0.7 million shares of common stock for an aggregate cost of $4.0 million during the quarter
NEW YORK--(BUSINESS WIRE)-- Apollo Investment Corporation (NASDAQ: AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its second fiscal quarter ended September 30, 2017. The Company’s net investment income was $0.16 per share for the quarter ended September 30, 2017, compared to $0.15 per share for the quarter ended June 30, 2017. The Company’s net asset value (“NAV”) was $6.72per share as of September 30, 2017, compared to $6.73 as of June 30, 2017.
On November 2, 2017, the Board of Directors declared a distribution of $0.15 per share, payable on January 5, 2018 to shareholders of record as of December 21, 2017.
Mr. James Zelter, Apollo Investment’s Chief Executive Officer, commented, “We continue to make steady progress with respect to our investment portfolio repositioning strategy that we outlined last year. We continue to deploy capital into our core strategies including investments made pursuant to our co-investment order.”
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(1) Core strategies include corporate lending, aviation, life sciences, asset based and lender finance.
FINANCIAL HIGHLIGHTS
| ($ in billions, except per share data) | September 30, 2017 | June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | |||||||||||||||||||||
| Total assets | $ | 2.45 | $ | 2.49 | $ | 2.41 | $ | 2.64 | $ | 2.65 | ||||||||||||||||
| Investment portfolio (fair value) | $ | 2.36 | $ | 2.42 | $ | 2.32 | $ | 2.53 | $ | 2.55 | ||||||||||||||||
| Debt outstanding | $ | 0.86 | $ | 0.92 | $ | 0.85 | $ | 1.03 | $ | 1.01 | ||||||||||||||||
| Net assets | $ | 1.47 | $ | 1.48 | $ | 1.48 | $ | 1.51 | $ | 1.54 | ||||||||||||||||
| Net asset value per share | $ | 6.72 | $ | 6.73 | $ | 6.74 | $ | 6.86 | $ | 6.95 | ||||||||||||||||
| Debt-to-equity ratio | 0.59 | x | 0.62 | x | 0.57 | x | 0.69 | x | 0.66 | x | ||||||||||||||||
| Net leverage ratio (1) | 0.59 | x | 0.62 | x | 0.55 | x | 0.66 | x | 0.63 | 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 and cash equivalents, less foreign currencies, divided by net assets.
PORTFOLIO AND INVESTMENT ACTIVITY
Three Months Ended | Six Months Ended | ||||||||||||||||||||
| (in millions)* | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
| Investments made in portfolio companies | $ | 265.4 | $ | 127.6 | $ | 607.5 | $ | 250.4 | |||||||||||||
| Investments sold | (11.7 | ) | (17.9 | ) | (21.7 | ) | (164.0 | ) | |||||||||||||
| Net activity before repaid investments | 253.7 | 109.7 | 585.8 | 86.4 | |||||||||||||||||
| Investments repaid | (328.1 | ) | (197.1 | ) | (570.1 | ) | (390.5 | ) | |||||||||||||
| Net investment activity | $ | (74.4 | ) | $ | (87.4 | ) | $ | 15.7 | $ | (304.1 | ) | ||||||||||
| Portfolio companies at beginning of period | 84 | 81 | 86 | 89 | |||||||||||||||||
| Number of new portfolio companies | 12 | 6 | 23 | 11 | |||||||||||||||||
| Number of exited portfolio companies | (9 | ) | (5 | ) | (22 | ) | (18 | ) | |||||||||||||
| Portfolio companies at end of period | 87 | 82 | 87 | 82 | |||||||||||||||||
Number of investments made in existing portfolio | 11 | 10 | 16 | 22 | |||||||||||||||||
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* Totals may not foot due to rounding.
OPERATING RESULTS
Three Months Ended | Six Months Ended | ||||||||||||||||||||
| (in millions)* | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
| Net investment income | $ | 34.2 | $ | 39.5 | $ | 67.5 | $ | 75.6 | |||||||||||||
| Net realized and change in unrealized gains (losses) | (2.4 | ) | 1.6 | (6.9 | ) | (76.6 | ) | ||||||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 31.8 | $ | 41.1 | $ | 60.6 | $ | (1.0 | ) | ||||||||||||
| (per share)* | |||||||||||||||||||||
| Net investment income on per average share basis | $ | 0.16 | $ | 0.18 | $ | 0.31 | $ | 0.34 | |||||||||||||
| Net realized and change in unrealized gain (loss) per share | $ | (0.01 | ) | $ | 0.01 | $ | (0.03 | ) | $ | (0.34 | ) | ||||||||||
| Earnings (loss) per share | $ | 0.14 | $ | 0.18 | $ | 0.28 | $ | 0.00 | |||||||||||||
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* Totals may not foot due to rounding.
SHARE REPURCHASE PROGRAM
On September 15, 2016, the Company announced that its Board of Directors expanded the Company’s stock repurchase program by $50 million which increased the total amount available to be repurchased to $150 million.
During the three months ended September 30, 2017, the Company repurchased 660,300 shares at a weighted average price per share of $5.99, inclusive of commissions, for a total cost of $4.0 million.
During the period from October 1, 2017 through November 2, 2017, the Company repurchased 591,800 shares at a weighted average price per share of $5.97, inclusive of commissions, for a total cost of $3.5 million.
Since the ince