Gladstone Capital Corporation Reports Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2011
January 31, 2012 at 04:30 pm EST
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Gladstone Capital Corporation reported unaudited consolidated earnings results for the first quarter ended December 31, 2011. The company reported total interest income of $9.3 million for the quarter ended December 31, 2011 compared to $7.8 million a year ago. Net investment income for the quarter ended December 31, 2011 was $4.4 million, or $0.21 per share, as compared to $4.6 million, or $0.22 per share, for the prior year period, a decrease in Net Investment Income of 4.7%. The decrease in net investment income was largely due to an increase in interest and dividend expense for the three months ended December 31, 2011 of a combined $1.7 million, partially offset by an increase in interest income of $1.5 million compared to the first quarter of fiscal 2011. Net realized loss on investments was $8.2 million. Net loss on investments and borrowings was $5.7 million compared to $2.5 million a year ago. Net decrease in net assets resulting from operations was $1.3 million or $0.06 per basic and diluted share compared to net increase in net assets resulting from operations of $2.1 million or $0.10 per basic and diluted share a year ago. Net asset value was $9.90 per share as of December 31, 2011, as compared to $10.16 per share as of September 30, 2011.
Gladstone Capital Corporation is a closed-end, non-diversified management investment company. The Companyâs investment objectives are to: achieve and grow current income by investing in debt securities of established lower middle market companies (which generally define as companies with annual earnings before interest, taxes, depreciation and amortization (EBITDA) of $3 million to $15 million) in the United States that will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time and provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that can grow over time to permit to sell its equity investments for capital gains. It focuses on investing in lower middle market companies. The Company externally managed by Gladstone Management Corporation (the Adviser).