Gladstone Capital (US:GLAD)2021-02-04 19:04Financial Data and Key Metrics Changes - Total interest income increased by $147,000 or 1.2% to $12.1 million, primarily due to an increase in the average balance of interest-bearing investments [15] - Net investment income for the quarter was $6.3 million, unchanged compared to the prior quarter, equating to $0.195 per share [18] - Net assets from operations rose to $12.3 million or $0.38 per share, compared to $12.2 million or $0.33 per share in the previous quarter [18] - NAV increased by 2.8% from $7.40 per share at the end of the previous quarter to $7.61 per share as of December 31 [23] Business Line Data and Key Metrics Changes - Originations for the quarter totaled approximately $29 million, including two new proprietary investments, while repayments and proceeds totaled $34 million [7] - Interest income rose slightly over the prior quarter, with the portfolio yield remaining relatively unchanged at 10.8% [7][16] - The asset mix shifted slightly in favor of first lien loans, which rose to 51% at cost, while second lien exposure declined to 41% [11] Market Data and Key Metrics Changes - The portfolio has recovered approximately 70% of the unrealized depreciation reported in the March 31, 2020 quarter due to the onset of the COVID pandemic [19] - The only decliners in the portfolio were related to energy sector exposures, which continue to face soft fundamentals [11] Company Strategy and Development Direction - The company intends to continue managing its leverage around a one-to-one debt to equity ratio while enhancing overall net interest income [13][14] - The focus remains on investing in midsized private businesses with strong management, supported by private equity funds seeking experienced partners [29] Management's Comments on Operating Environment and Future Outlook - Management remains cautious regarding any lasting COVID-related financial impacts on new business opportunities and the sustainability of recent growth [14] - The company is in the final stages of closing several new investments, positioning itself well to absorb expected prepayments and grow its investment portfolio [12] Other Important Information - Total assets as of December 31 were $459 million, consisting of $452 million in investments at fair value and $7 million in cash and other assets [20] - The company declared monthly distributions of $0.065 per common share for January, February, and March, resulting in an annual rate of $0.78 per share [24] - The current distribution rate yields approximately 8.2%, which is considered attractive relative to low market yields [25] Q&A Session Summary - No questions were received during the Q&A session, indicating that all relevant information was effectively communicated during the presentation [31][32]