February 06, 2017
Apollo Investment Corporation Reports Financial Results for the Quarter Ended December 31, 2016
Fiscal Third Quarter and Other Recent Highlights:
- Net investment income per share for the quarter was $0.17, compared to $0.18 for the quarter ended September 30, 2016
- Net asset value per share as of the end of the quarter was $6.86 compared to $6.95 as of September 30, 2016, a 1.3% decrease
- Declared a distribution of $0.15 per share
- Net leverage as of the end of the quarter was 0.66 x, compared to 0.63 x as of September 30, 2016
- Continued to make what we believe to be steady progress toward the successful execution of our portfolio repositioning strategy including reducing structured credit exposure to approximately 4.9% of the portfolio and reducing renewables exposure to 7.3% of the portfolio(1)
- Extended the final maturity of the Senior Secured Facility to December 22, 2021
NEW YORK--(BUSINESS WIRE)--Feb. 6, 2017-- Apollo Investment Corporation (NASDAQ:AINV) or the “Company,” or “Apollo Investment,” today announced financial results for its third fiscal quarter ended December 31, 2016. The Company’s net investment income was $0.17 per share for the quarter ended December 31, 2016, compared to $0.18 per share for the quarter ended September 30, 2016. The Company’s net asset value (“NAV”) was $6.86 per share as of December 31, 2016 compared to $6.95 as of September 30, 2016.
On February 3, 2017, the Board of Directors declared a distribution of $0.15 per share, payable on April 6, 2017 to shareholders of record as of March 21, 2017.
Mr. James Zelter, Apollo Investment’s Chief Executive Officer, commented, “We believe that we have made considerable progress repositioning the portfolio, consistent with the strategy that we outlined last year. We have meaningfully reduced our exposure to structured credit and renewables. In addition, we funded three transactions entered into pursuant to our co-investment exemptive order during the quarter. Since receiving the order, we have entered into eight transactions including several in the March quarter.” Mr. Zelter continued, “We are also pleased to have extended the final maturity of our revolving credit facility during the period. We are extremely appreciative of the support from our lenders.”
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| (1) | Includes the impact of exits subsequent to quarter end. From January 1, 2017 through February 3, 2017, the Company exited its investment in MCF CLO III, LLC and reduced its exposure to Solarplicity Group Limited. Exposures are measured at fair value. Assumes the fair value of the total investment portfolio is unchanged. | |
FINANCIAL HIGHLIGHTS
| ($ in billions, except per share data) |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, | ||||||||||||||||
| Total assets | $ | 2.64 | $ | 2.65 | $ | 2.79 | $ | 3.09 | $ | 3.22 | |||||||||||
| Investment portfolio (fair value) | $ | 2.53 | $ | 2.55 | $ | 2.62 | $ | 2.92 | $ | 3.07 | |||||||||||
| Debt outstanding (1) | $ | 1.03 | $ | 1.01 | $ | 1.10 | $ | 1.31 | $ | 1.38 | |||||||||||
| Net assets | $ | 1.51 | $ | 1.54 | $ | 1.55 | $ | 1.65 | $ | 1.72 | |||||||||||
| Net asset value per share | $ | 6.86 | $ | 6.95 | $ | 6.90 | $ | 7.28 | $ | 7.56 | |||||||||||
| Debt-to-equity ratio (1) | 0.69 | x | 0.66 | x | 0.71 | x | 0.80 | x | 0.80 | x | |||||||||||
| Net leverage ratio (1) (2) | 0.66 | x | 0.63 | x | 0.66 | x | 0.75 | x | 0.76 | x | |||||||||||
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| (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. | |
PORTFOLIO AND INVESTMENT ACTIVITY
| (in millions)* |
Three Months |
Nine Months | ||||||||
| Investments made in portfolio companies | $ | 201.3 | $ | 451.7 | ||||||
| Investments sold | (17.1 | ) | (181.1 | ) | ||||||
| Net activity before repaid investments | 184.2 | 270.6 | ||||||||
| Investments repaid | (178.2 | ) | (568.7 | ) | ||||||
| Net investment activity | $ | 6.0 | $ | (298.1 | ) | |||||
| Portfolio companies at beginning of period | 82 | 89 | ||||||||
| Number of new portfolio companies | 13 | 24 | ||||||||
| Number of exited portfolio companies | (10 | ) | (28 | ) | ||||||
| Portfolio companies at end of period | 85 | 85 | ||||||||
| Number of investments made in existing portfolio companies | 8 | 21 | ||||||||
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| * | Totals may not foot due to rounding. | |
OPERATING RESULTS
| (in millions) * |
Three Months |
Nine Months | ||||||||
| Net investment income | $ | 36.4 | $ | 112.0 | ||||||
| Net realized and change in unrealized gains (losses) | (25.0 | ) | (101.6 | ) | ||||||
| Net increase (decrease) in net assets resulting from operations | $ | 11.3 | $ | 10.3 | ||||||
| (per share) * | ||||||||||
| Net investment income on per average share basis | $ | 0.17 | $ | 0.50 | ||||||
| Net realized and change in unrealized gain (loss) per share | (0.12 | ) | (0.46 | ) | ||||||
| Earnings per share — basic | $ | 0.05 | $ | 0.05 | ||||||
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| * | Totals m | |