Gladstone Capital (GLAD) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.62 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 7.55%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.56 per share when it actually produced earnings of $0.25, delivering a surprise of -55.36%. Over the last fo ...

J Studios/DigitalVision via Getty Images Overview Gladstone Capital (NASDAQ:GLAD) operates as a business development company that focuses on investing in lower middle market businesses. GLAD provides financing to these companies and assists with equity buyouts, supporting individual business growth milestones, acquisitions, and collecting interest from these debts for their support and efforts. The BDC was founded in 2001 and has invested over $2.5B since then. They typically focus on businesses that genera ...

Financial Data and Key Metrics Changes - Total interest income rose by $700,000 or 3% to $23.7 million due to an increase in average earning assets [9][43] - Net investment income declined by 9.7% to $10.8 million, reflecting a decrease of $1.2 million compared to the prior quarter [6][43] - Net realized gains increased to $2.2 million, contributing to a total of $12.9 million in net realized and unrealized gains, which lifted the return on equity (ROE) for the quarter to 22.3% [40][41] Business Line Data and Key Metrics Changes - Fundings for the quarter were modest at $45 million, with about two-thirds being add-ons to existing portfolio investments [5] - The investment portfolio's weighted average balance increased to $680 million, up $23 million or 3.5% compared to the prior quarter [9] - Senior debt represented 71% of the portfolio, with only 2 non-earning debt investments totaling $20.4 million at cost [20] Market Data and Key Metrics Changes - The company ended the quarter with total assets of $812 million, consisting of $792 million in investments at fair value [23] - The net asset value (NAV) rose 3% from $9.61 per share as of December 31 to $9.90 per share as of March 31 [44] - The current distribution run rate produces a yield of about 9.1% based on the common stock price of approximately $21.77 per share [45] Company Strategy and Development Direction - The company continues to focus on supporting growth-oriented businesses across various industry sectors, particularly in the lower middle market [41] - There is an emphasis on finding good growth opportunities to redeploy capital from expected prepayment activities [37] - The company is optimistic about the potential for growth in the broadband sector due to significant funding from the Infrastructure Act [52] Management's Comments on Operating Environment and Future Outlook - Management noted a small uptick in non-performing assets but expressed confidence in the overall portfolio performance [26] - The company is positioned to grow earning assets and fee income to support shareholder distributions in the coming year [21] - Management highlighted the expectation of an uptick in prepayment activities and the need to originate new investments to maintain net asset growth [59] Other Important Information - Monthly distributions to common shareholders were announced at $0.165 per share, with an annual run rate of $1.98 per share [11] - A 1 for 2 reverse stock split was executed, resulting in an approximate NAV per share of $19.80 [44] Q&A Session Summary Question: What is the outlook for DKI and B&T? - DKI is transitioning from a franchise-oriented business to a TPA model, which involves altering marketing and cost structures [30] - B&T is positioned in a competitive engineering market with opportunities for growth, particularly in wireless engineering [64] Question: What is the current average EBITDA and debt to EBITDA ratio? - The overall leverage profile is in the roughly 4x range, consistent with previous levels [54] Question: Can you provide more details on the nonaccrual WB Xcel? - Xcel faced challenges due to consumer-oriented exposure and a significant pullback in retail channels post-COVID, but management is optimistic about repositioning the brand [56][57] Question: What is the outlook for loan spreads in the lower middle market? - The company expects less price compression in the lower middle market compared to the upper middle market, where spreads have been driven down significantly [49][50]

For the quarter ended March 2024, Gladstone Capital (GLAD) reported revenue of $24 million, up 16.7% over the same period last year. EPS came in at $0.25, compared to $0.52 in the year-ago quarter.The reported revenue represents a surprise of -0.35% over the Zacks Consensus Estimate of $24.08 million. With the consensus EPS estimate being $0.56, the EPS surprise was -55.36%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Total investment income increased by $0.8 million, or 3.3%, for the quarter ended March 31, 2024, compared to the prior quarter ended December 31, 2023, driven by a $0.7 million increase in interest income. The increase in interest income was driven by a 3.5% increase in the weighted average principal balance of our interest-bearing investments from $657.6 million during the quarter ended December 31, 2023 to $680.4 million during the quarter ended March 31, 2024. Exhibit 99.1 Gladstone Capital Corporation ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark one): ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO _______ COMMISSION FILE NUMBER: 814-00237 GLADSTONE CAPITAL CORPORATION (Exact name of registrant as specified in its charter) (S ...

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da-kuk Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company ("BDC") sector from both the bottom-up - highlighting individual news and events - as well as the top-down - providing an overview of the broader market. We also try to add some historical context as well as relevant themes that look to be driving the market or that investors ought to be mindful of. This update covers the period through the second week of April. Mar ...

Adam Gault Welcome to another installment of our BDC Market Weekly Review, where we discuss market activity in the Business Development Company ("BDC") sector from both the bottom-up - highlighting individual news and events - as well as the top-down - providing an overview of the broader market. We also try to add some historical context as well as relevant themes that look to be driving the market or that investors ought to be mindful of. This update covers the period through the first week of April. ...

Hiroshi Watanabe In December last year, I wrote an article on Gladstone Capital (NASDAQ:GLAD) issuing a buy rating due to truly defensive portfolio and attractive yield generation. In a nutshell, the thesis boiled down to the following drivers: Solid track record - Based on the historical performance, we can identify GLAD's ability to deliver outsized returns even in upwards trending markets, where theoretically BDCs that are heavily skewed towards defense should underperform the overall BDC space. Heal ...