August 08, 2018
Apollo Investment Corporation Reports Financial Results for the Quarter Ended June 30, 2018
Fiscal First Quarter and Other Recent Highlights:
- Net investment income per share for the quarter was $0.15 compared to $0.15for the quarter ended March 31, 2018
- Net asset value per share as of the end of the quarter was $6.47 compared to $6.56 as of March 31, 2018, a 1.3% decline
- Continued to successfully execute portfolio repositioning strategy, including increasing exposure to core strategies(1) to 80% of the portfolio(2) as of the end of the quarter
- Net leverage(3) as of the end of the quarter was 0.78x, compared to 0.57x as of March 31, 2018
- Declared a distribution of $0.15 per share
- Repurchased 1.4 million shares of common stock for an aggregate cost of $7.9 million during the quarter ended June 30, 2018
- Fitch Ratings affirmed the Company’s investment grade rating in June, and Kroll Bond Rating Agency assigned an investment grade rating to the Company in July(4)
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, 2018. The Company’s net investment income was $0.15 per share for the quarter ended June 30, 2018, compared to $0.15 per share for the quarter ended March 31, 2018. The Company’s net asset value (“NAV”) was $6.47per share as of June 30, 2018, compared to $6.56 as of March 31, 2018.
On August 8, 2018, the Board of Directors declared a distribution of $0.15 per share, payable on October 9, 2018 to shareholders of record as of September 24, 2018.
Mr. Howard Widra, Apollo Investment’s Chief Executive Officer commented, “We continue to make considerable progress executing our strategy. During the quarter, we deployed over $350 million with a focus on our core strategies, which now account for 80% of the portfolio, on a fair value basis. We also continue to prepare for the increase in our regulatory leverage which will become effective in April 2019 and which we believe will enable us to accelerate our de-risking investment strategy.”
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| (1) | Core strategies include corporate lending, aviation, life sciences, asset based and lender finance. | ||
| (2) | On a fair value basis. | ||
| (3) | The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets. | ||
| (4) | Fitch Ratings affirmed the Company’s ‘BBB-’ long-term issuer default rating, secured debt rating and unsecured debt rating; removed the ratings from rating watch negative and assigned a negative outlook in June. Kroll Bond Rating Agency assigned ‘BBB-’ issuer and senior unsecured debt ratings with a stable outlook to the Company in July. | ||
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FINANCIAL HIGHLIGHTS | ||||||||||||||||||||||||||
| ($ in billions, except per share data) | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | June 30, 2017 | |||||||||||||||||||||
| Total assets | $ | 2.57 | $ | 2.31 | $ | 2.42 | $ | 2.45 | $ | 2.49 | ||||||||||||||||
| Investment portfolio (fair value) | $ | 2.50 | $ | 2.25 | $ | 2.35 | $ | 2.36 | $ | 2.42 | ||||||||||||||||
| Debt outstanding | $ | 1.10 | $ | 0.79 | $ | 0.88 | $ | 0.86 | $ | 0.92 | ||||||||||||||||
| Net assets | $ | 1.39 | $ | 1.42 | $ | 1.44 | $ | 1.47 | $ | 1.48 | ||||||||||||||||
| Net asset value per share | $ | 6.47 | $ | 6.56 | $ | 6.60 | $ | 6.72 | $ | 6.73 | ||||||||||||||||
| Debt-to-equity ratio | 0.79 | x | 0.56 | x | 0.61 | x | 0.59 | x | 0.62 | x | ||||||||||||||||
| Net leverage ratio (1) | 0.78 | x | 0.57 | x | 0.62 | x | 0.59 | x | 0.62 | 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. | ||
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PORTFOLIO AND INVESTMENT ACTIVITY | |||||||||||
| Three Months Ended June 30, | |||||||||||
| (in millions)* | 2018 | 2017 | |||||||||
| Investments made in portfolio companies | $ | 359.0 | $ | 342.0 | |||||||
| Investments sold | (14.8 | ) | (9.9 | ) | |||||||
| Net activity before repaid investments | 344.1 | 332.1 | |||||||||
| Investments repaid | (93.8 | ) | (242.0 | ) | |||||||
| Net investment activity | $ | 250.3 | $ | 90.1 | |||||||
| Portfolio companies at beginning of period | 90 | 86 | |||||||||
| Number of new portfolio companies | 7 | 11 | |||||||||
| Number of exited portfolio companies | (1 | ) | (13 | ) | |||||||
| Portfolio companies at end of period | 96 | 84 | |||||||||
| Number of investments made in existing portfolio companies | 20 | 11 | |||||||||
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* Totals may not foot due to rounding. |
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OPERATING RESULTS | |||||||||||
| Three Months Ended June 30, | |||||||||||
| (in millions)* | 2018 | 2017 | |||||||||
| Net Investment Income | $ | 31.5 | $ | 33.3 | |||||||
| Net Realized and Change in Unrealized Losses | (18.3 | ) | (4.5 | ) | |||||||
| Net Increase in Net Assets Resulting from Operations | |||||||||||