Gladstone Investment Corp (GAIN) Reports Q2 2023 Earnings
Net investment loss for Q2 2023 was $1.7 million, compared to net investment income of $8.4 million for Q1 2023.
Total investment income remained steady at $20.3 million for both Q2 and Q1 2023.
Net increase in net assets resulting from operations rose by 439.0% to $47.4 million in Q2 2023 from $8.8 million in Q1 2023.
Net asset value per common share increased by 8.0% to $14.03 in Q2 2023 from $12.99 in Q1 2023.
On November 1, 2023, Gladstone Investment Corp (NASDAQ:GAIN) announced its earnings for the second fiscal quarter ended September 30, 2023. The company reported a net investment loss of $1.7 million, or $(0.05) per weighted-average common share, compared to net investment income of $8.4 million, or $0.25 per weighted-average common share, for the quarter ended June 30, 2023. This decrease was primarily due to increased accruals for capital gains-based incentive fees and interest expense.
Financial Highlights
The company's total investment income remained steady at $20.3 million for both the quarters ended September 30, 2023, and June 30, 2023. The slight decrease quarter over quarter was due to a $1.9 million decrease in dividend and success fee income related to fees that did not reoccur in the current quarter, partially offset by a $1.9 million increase in interest income.
Net increase in net assets resulting from operations rose by 439.0% to $47.4 million in Q2 2023 from $8.8 million in Q1 2023. This was primarily due to $48.7 million, or $1.44 per common share, of net unrealized appreciation on investments and $0.3 million, or $0.01 per common share, of realized gains on investments.
Portfolio and Dividend Activities
During the quarter, Gladstone Investment Corp (NASDAQ:GAIN) invested an additional $18.7 million in Nocturne Villa Rentals, Inc. and $46.0 million in a new portfolio company, The E3 Company, LLC. The company also paid a $0.08 per common share distribution to common stockholders in each of July, August, and September 2023, and a $0.12 per common share supplemental distribution to common stockholders in September 2023.
Subsequent Events
After September 30, 2023, the company invested an additional $64.7 million in SFEG Holdings, Inc. and exited its investment in Counsel Press, Inc., which resulted in success fee income of $1.4 million, a realized gain of $43.5 million, and the repayment of its debt investment of $27.5 million at par.
The company's Board of Directors declared monthly and supplemental distributions to common stockholders for October, November, and December 2023, totaling $1.24 per common share for the quarter.
Adjusted Net Investment Income
On a supplemental basis, the company disclosed Adjusted net investment income, a non-GAAP financial measure. Adjusted net investment income for Q2 2023 was $8.1 million, or $0.24 per weighted-average common share, compared to $8.5 million, or $0.25 per weighted-average common share, for Q1 2023.
Gladstone Investment Corp (NASDAQ:GAIN) will hold its earnings release conference call on Thursday, November 2, 2023, at 8:30 a.m. Eastern Time.
Explore the complete 8-K earnings release (here) from Gladstone Investment Corp for further details.
This article first appeared on GuruFocus.
