November 05, 2019
Apollo Investment Corporation Reports Financial Results for the Quarter Ended September 30, 2019
Fiscal Second Quarter and Other Recent Highlights:
- Net investment income per share for the quarter was $0.53 compared to $0.50 for the quarter ended June 30, 2019
- Net asset value per share as of the end of the quarter was $18.69 compared to $19.00 as of June 30, 2019
- $0.22 cents of the decline was from our oil and gas investments due to the decline in the price of oil
- $0.06 cents of the decline was attributable to the early redemption of our 2043 Notes(1)
- Continued to successfully execute portfolio growth strategy with core strategies(2) representing 85% of the portfolio(3) as of the end of the quarter
- Increased first lien debt exposure to 77% of the corporate lending portfolio and reduced second lien debt exposure to 22%(3)
- Reduced shipping exposure to 5.0% of the portfolio(3)
- Reduced exposure to Merx Aviation to 12.9% of the portfolio(3)
- Gross corporate lending commitments made during the quarter totaled $377 million
- Gross fundings during the quarter totaled $358 million(4) and net fundings totaled $207 million(5)
- Net leverage(6) as of the end of the quarter was 1.24x, compared to 1.03x as of June 30, 2019
- Declared a distribution of $0.45 per share
- Repurchased 0.9 million shares of common stock for an aggregate cost of $14.2 million during the quarter
- Redeemed $150 million of 6.875% senior unsecured notes due 2043 during the quarter(1)
NEW YORK, Nov. 05, 2019 (GLOBE NEWSWIRE) -- Apollo Investment Corporation (NASDAQ: AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its second fiscal quarter ended September 30, 2019. The Company’s net investment income was $0.53 per share for the quarter ended September 30, 2019, compared to $0.50 per share for the quarter ended June 30, 2019. The Company’s net asset value (“NAV”) was $18.69 per share as of September 30, 2019, compared to $19.00 as of June 30, 2019.
On November 5, 2019, the Board of Directors declared a distribution of $0.45 per share payable on January 6, 2020 to shareholders of record as of December 20, 2019.
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(1) On August 12, 2019, the Company redeemed $150 million of 6.875% senior unsecured notes due 2043. The Company recognized a realized loss on the extinguishment of these notes of approximately $(4.4) million or $(0.06) per share during the three months ended September 30, 2019.
(2) Core strategies include corporate lending, aviation, life sciences, asset based and lender finance.
(3) On a fair value basis.
(4) Excludes $8 million of gross fundings for Merx Aviation and $111 million of gross fundings for revolvers.
(5) Includes $18 million net repayment from Merx Aviation and $24 million net fundings for revolvers.
(6) The Company’s net leverage ratio is defined as debt outstanding plus payable for investments purchased, less receivable for investments sold, less cash and cash equivalents, less foreign currencies, divided by net assets.
Mr. Howard Widra, Apollo Investment’s Chief Executive Officer, commented, “During the quarter, we continued to successfully implement our plan to prudently grow our portfolio. We had a strong origination quarter and grew our portfolio 7% by increasing our exposure to first lien floating rate corporate loans sourced by the Apollo Direct Origination platform. Consistent with our plan, we also successfully reduced our exposure to second lien corporate loans, shipping assets and aircraft leasing. We believe the shift in the composition of our portfolio and the resultant improvement in our ratios and metrics illustrate that we have meaningfully improved the risk profile of our portfolio.” Mr. Widra continued, “The 31 cent net reduction in NAV per share was due in part to a 22 cent decline in the value of our oil and gas investments due to the decline in the price of oil, and a 6 cent loss due to the extinguishment of our 2043 baby bonds.”
FINANCIAL HIGHLIGHTS
| ($ in billions, except per share data) | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | ||||||||||||||
| Total assets | $ | 2.89 | $ | 2.70 | $ | 2.50 | $ | 2.38 | $ | 2.39 | |||||||||
| Investment portfolio (fair value) | $ | 2.80 | $ | 2.62 | $ | 2.41 | $ | 2.31 | $ | 2.32 | |||||||||
| Debt outstanding | $ | 1.58 | $ | 1.35 | $ | 1.13 | $ | 0.99 | $ | 0.95 | |||||||||
| Net assets | $ | 1.25 | $ | 1.29 | $ | 1.31 | $ | 1.32 | $ | 1.37 | |||||||||
| Net asset value per share | $ | 18.69 | $ | 19.00 | $ | 19.06 | $ | 19.03 | $ | 19.40 | |||||||||
| Debt-to-equity ratio | 1.26 | x | 1.05 | x | 0.86 | x | 0.76 | x | 0.69 | x | |||||||||
| Net leverage ratio (1) | 1.24 | x | 1.03 | x | 0.83 | x | 0.74 | x | 0.68 | 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 September 30, | Six Months Ended September 30, | ||||||||||||||
| (in millions)* | 2019 | 2018 | 2019 | 2018 | |||||||||||
| Investments made in portfolio companies | $ | 476.7 | $ | 363.6 | $ | 912.0 | $ | 722.5 | |||||||
| Investments sold | (20.0 | ) | (163.2 | ) | (29.6 | ) | (178.1 | ) | |||||||
| Net activity before repaid investments | 456.7 | 200.3 | 882.4 | 544.4 | |||||||||||
| Investments repaid | (249.7 | ) | (372.1 | ) | (460.4 | ) | (465.8 | ) | |||||||
| Net investment activity | $ | 207.1 | $ | (171.7 | ) | $ | 422.1 | $ | 78.6 | ||||||
| Portfolio companies at beginning of period | 129 | 96 | 113 | 90 | |||||||||||
| Number of new portfolio companies | 14 | 9 | 35 | 16 | |||||||||||
| Number of exited portfolio companies | (4 | ) | (7 | ) | (9 | ) | (8 | ) | |||||||
| Portfolio companies at end of period | 139 | 98 | 139 | 98 | |||||||||||
| Number of investments made in existing portfolio companies | 48 | 16 | 54 | 24 | |||||||||||
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* Totals may not foot due to rounding.
OPERATING RESULTS
| Three Months Ended September 30, | Six Months Ended September 30, | ||||||||||||||
| (in millions)* | 2019 | 2018 | 2019 | 2018 | |||||||||||
| Net investment income | $ | 35.7 | $ | 32.2 | $ | 70.3 | |||||||||