Gladstone Capital (NASDAQ:GLAD) Q3 2019 Earnings Conference Call August 6, 2019 8:30 AM ET Company Participants David Gladstone - Chairman and Chief Executive Officer Michael LiCalsi - General Counsel and Secretary Bob Marcotte - President Nicole Schaltenbrand - Chief Financial Officer Conference Call Participants Henry Coffey - Wedbush Securities Mickey Schleien - Ladenburg Operator Good day, ladies and gentlemen, and thank you for standing by and welcome to the Gladstone Capital Corporation's Third Quar ...

Financial Data and Key Metrics Changes - Total interest income declined by $600,000 or 5.5% from the prior quarter, primarily due to a 30 basis point decline in average yield on the investment portfolio and non-earning and restructured investments [19] - Total investment income rose by $600,000 or 5.1% to $12.5 million for the quarter [20] - Net investment income was $6 million or $0.21 per share, covering 100% of shareholder distribution [21] - Net assets rose by $7.5 million since the prior quarter end, with net realized and unrealized portfolio appreciation of $3.3 million [22] - Net asset value per share increased by $0.13 to $8.11 as of March 31 [23] Business Line Data and Key Metrics Changes - Originations for the quarter were down, typical for the first calendar quarter, with one small syndicated investment of $3.3 million closed [9] - Exits and repayments were elevated at $49 million, including a $2.1 million realized gain from the sale of United Flexible [10] - The asset mix shifted slightly, with senior secured assets dropping 5% to 49% of the investment portfolio at fair value, while second-lien investments rose to 38% [14] Market Data and Key Metrics Changes - The company noted a decline in average yield due to a mix shift with older assets rolling off and newer assets being less effective in driving yield [32] - The energy portfolio was consolidated, reducing net energy exposure while supporting the growth of the combined entity [36] Company Strategy and Development Direction - The company is focused on reinvesting payments from the previous quarter into lower middle market businesses, positioning itself for growth in the fiscal year ending September 30, 2019 [26] - The company remains committed to paying cash dividends, with a declared monthly distribution of $0.07 per common share for April, May, and June [27] - The company sees improved positioning in private businesses and aims to support ongoing commitments to cash distributions to shareholders [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the near-term outlook, expecting higher average investment balances and core net interest income due to recent investments and a current investment backlog [17] - The management team is monitoring potential spikes in prepayment activity as borrowers consider selling amid elevated market valuations [18] - Management remains positive about the outlook for LWO, despite challenges, and is working with the management team to address operational issues [40] Other Important Information - The company completed the restructuring of its senior secured position in LWO Acquisition, converting $9.7 million of exposure to a success-based fee term loan [16] - The company has approximately $74 million of availability under its line of credit, with leverage increasing to approximately 85% post quarter-end [24] Q&A Session Summary Question: Decline in portfolio's average yield - Management clarified that the yield is based on actual LIBOR rates and noted a slight change in aggregate yield due to older assets rolling off and non-earning assets affecting the average yield [31][32] Question: Catalyst for Impact! and WadeCo merger - The merger was driven by efficiency and scale, as both companies were in the chemical distribution business and owned by the same sponsor, aiming to support growth in a competitive market [33][34] Question: Outlook for LWO given valuation decline - Management believes the sector continues to grow, and they are working with the management team to address operational issues, maintaining a positive outlook despite challenges [39][40] Question: Impact of Chinese tariffs on Meridian - Management indicated that the tariffs were a temporary issue, and with adjustments made, they expect Meridian to return to accrual status soon [46][50] Question: New Trident's nonaccrual status - Management explained that New Trident was being marketed for sale, and once it became clear that a sale was unlikely, the decision was made to proceed with bankruptcy and restructuring [54][55]

Gladstone Capital (NASDAQ:GLAD) Q1 2019 Earnings Conference Call February 7, 2019 8:30 AM ET Company Participants David Gladstone - CEO Michael LiCalsi - General Counsel Bob Marcotte - President Nicole Schaltenbrand - CFO Conference Call Participants Christopher Testa - National Securities Mickey Schleien - Ladenburg Operator Good day, ladies and gentlemen, and welcome to the Gladstone Capital Corporation's first quarter ended December 31, 2018 earnings conference call. At this time, all participants are in ...