Fiscal First Quarter and Other Recent Highlights:
- Net investment income per share for
the quarter was $0.15, compared to $0.17 for the quarter
ended March 31, 2017
- Net asset value per share as of the
end of the quarter was $6.73 compared to $6.74 as of March 31,
2017
- Declared a distribution of $0.15 per
share
- Net leverage as of the end of the
quarter was 0.62 x, compared to 0.55 x as of March 31, 2017
providing us with substantial investment capacity to further
execute our portfolio repositioning strategy
- Continued to successfully execute
our portfolio repositioning strategy, which included increasing
core assets (1) to 74% of the portfolio as of the end
of the quarter, at fair value
Apollo Investment Corporation (NASDAQ:AINV) or the “Company,” or
“Apollo Investment,” today announced financial results for its
first fiscal quarter ended June 30, 2017. The Company’s net
investment income was $0.15 per share for the quarter ended
June 30, 2017, compared to $0.17 per share for the quarter
ended March 31, 2017. The Company’s net asset value (“NAV”)
was $6.73 per share as of June 30, 2017, compared to $6.74 as
of March 31, 2017.
On August 3, 2017, the Board of Directors declared a
distribution of $0.15 per share, payable on October 5, 2017 to
shareholders of record as of September 21, 2017.
Mr. James Zelter, Apollo Investment’s Chief Executive Officer,
commented, “We are pleased to report that we continue to
successfully execute the repositioning strategy that we outlined
last year. We continue to reduce our exposure to non-core and
legacy assets and deploy capital into our core strategies including
investments made pursuant to our co-investment order. We have also
continued to improve the risk profile of our portfolio by
increasing our exposure to first lien and floating rate loans, and
decreasing our average borrower exposure.” Mr. Zelter continued,
“Looking ahead, we will continue to focus on deploying capital into
opportunities sourced from the Apollo direct origination platform.
We believe that our strong investment capacity is a distinct
advantage for when market conditions improve.”
___________________ (1) Core strategies include corporate
lending, aviation, life sciences, asset based and lender finance.
FINANCIAL HIGHLIGHTS
($ in billions, except
per share data) June 30, 2017 March 31,
2017 December 31, 2016 September 30,
2016 June 30, 2016 Total assets $ 2.49 $ 2.41
$ 2.64 $ 2.65 $ 2.79 Investment portfolio (fair value) $ 2.42 $
2.32 $ 2.53 $ 2.55 $ 2.62 Debt outstanding $ 0.92 $ 0.85 $ 1.03 $
1.01 $ 1.10 Net assets $ 1.48 $ 1.48 $ 1.51 $ 1.54 $ 1.55 Net asset
value per share $ 6.73 $ 6.74 $ 6.86 $ 6.95 $ 6.90
Debt-to-equity ratio 0.62 x 0.57 x 0.69 x 0.66 x 0.71 x Net
leverage ratio (1) 0.62 x 0.55 x 0.66 x 0.63 x 0.66 x
___________________ (1) The Company’s net leverage ratio is
defined as debt outstanding plus payable for investments purchased,
less receivable for investments sold, less cash, less foreign
currencies, divided by net assets.
PORTFOLIO AND INVESTMENT
ACTIVITY
(in millions)*
Three Months Ended June 30,
2017
Investments made in portfolio companies $ 342.0 Investments sold
(9.9 ) Net activity before repaid investments 332.1 Investments
repaid (242.0 ) Net investment activity $ 90.1 Portfolio
companies at beginning of period 86 Number of new portfolio
companies 11 Number of exited portfolio companies (13 ) Portfolio
companies at end of period 84 Number of investments
made in existing portfolio companies 11 ____________________ *
Totals may not foot due to rounding.
OPERATING RESULTS
(in millions) *
Three Months Ended June 30,
2017
Net investment income $ 33.3 Net realized and change in unrealized
gains (losses) (4.5 ) Net increase (decrease) in net assets
resulting from operations $ 28.8
(per share) *
Net investment income on per average share basis $ 0.15 Net
realized and change in unrealized gain (loss) per share (0.02 )
Earnings per share — basic $ 0.13 ____________________ *
Totals may not foot due to rounding.
CONFERENCE CALL / WEBCAST AT 10:00 AM EDT ON AUGUST 4,
2017
The Company will host a conference call on Friday, August 4,
2017 at 10:00 a.m. Eastern Time. All interested parties are welcome
to participate in the conference call by dialing (888) 802-8579
approximately 5-10 minutes prior to the call; international callers
should dial (973) 633-6740. Participants should reference Apollo
Investment Corporation or Conference ID #46731904 when prompted. A
simultaneous webcast of the conference call will be available to
the public on a listen-only basis and can be accessed through the
Event Calendar in the Investor Relations section of our website at
www.apolloic.com. Following the call
you may access a replay of the event either telephonically or via
audio webcast. The telephonic replay will be available
approximately two hours after the live call and through August 29,
2017 by dialing (800) 585-8367; international callers please dial
(404) 537-3406, reference Conference ID # 46731904. A replay of the
audio webcast will also be available later that same day. To access
the audio webcast please visit the Event Calendar in the Investor
Relations section of the Company’s website at www.apolloic.com.
SUPPLEMENTAL INFORMATION
The Company provides a supplemental information package to offer
more transparency into its financial results and make its reporting
more informative and easier to follow. The supplemental package is
available on the Investor Relations section of the Company’s
website at www.apolloic.com.
Our portfolio composition and weighted average yields as of June
30, 2017, March 31, 2017, December 31, 2016, September 30, 2016,
and June 30, 2016 were as follows:
June 30, 2017 March 31,
2017 December 31, 2016
September 30, 2016 June 30, 2016
Portfolio composition, at fair value: Secured debt 77% 75%
69% 64% 65% Unsecured debt 7% 7% 10% 9% 9% Structured products and
other 6% 7% 9% 12% 12% Preferred equity 1% 1% 1% 3% 3% Common
equity/interests and warrants 9% 10% 11% 12% 11%
Weighted average yields, at
amortized cost, exclusive of investments on
non-accrual status (1):
Secured debt portfolio 10.2% 10.2% 10.9% 11.0% 11.0% Unsecured debt
portfolio 11.1% 11.1% 10.7% 10.8% 10.8% Total debt portfolio 10.3%
10.3% 10.9% 11.0% 11.0%
Interest Rate Type, at fair value
(2): Fixed rate amount $0.2 billion $0.2 billion $0.2 billion
$0.2 billion $0.3 billion Floating rate amount $1.2 billion $1.1
billion $1.0 billion $0.9 billion $0.8 billion Fixed rate, as
percentage of total 14% 16% 16% 21% 23% Floating rate, as
percentage of total 86% 84% 84% 79% 77%
Interest Rate Type, at
amortized cost (2): Fixed rate amount $0.2 billion $0.2 billion
$0.2 billion $0.2 billion $0.3 billion Floating rate amount $1.1
billion $1.0 billion $1.0 billion $0.9 billion $0.9 billion Fixed
rate, as percentage of total 15% 17% 17% 22% 24% Floating rate, as
percentage of total 85% 83% 83% 78% 76% ____________________ (1)
An investor’s yield may be lower than the portfolio yield
due to sales loads and other expenses. (2) The Company has
modified the calculation of its interest rate type information. The
interest type information is calculated using the Company’s
corporate debt portfolio and excludes aviation, oil and gas,
structured credit, renewables, shipping, commodities and
investments on non-accrual status. Prior periods have been modified
to reflect this definition.
APOLLO INVESTMENT CORPORATION
STATEMENTS OF ASSETS AND
LIABILITIES
(In thousands, except share and per
share data)
June 30, 2017 March 31, 2017
(Unaudited) Assets Investments at fair value:
Non-controlled/non-affiliated investments (cost — $1,493,015 and
$1,510,980, respectively) $ 1,475,682 $ 1,402,409
Non-controlled/affiliated investments (cost — $242,840 and
$417,471, respectively) 220,149 239,050 Controlled investments
(cost — $729,539 and $676,972, respectively) 720,748 675,249
Total investments at fair value (cost — $2,465,394 and
$2,605,423, respectively) 2,416,579 2,316,708 Cash and cash
equivalents 29,853 9,783 Foreign currencies (cost — $2,801 and
$1,494, respectively) 2,837 1,497 Receivable for investments sold
4,812 40,226 Interest receivable 18,709 17,072 Dividends receivable
3,163 6,489 Deferred financing costs 16,633 17,632 Prepaid expenses
and other assets 857 713
Total Assets $
2,493,443 $ 2,410,120
Liabilities Debt
$ 920,674 $ 848,449 Payable for investments purchased 26,109 13,970
Distributions payable 32,954 32,954 Management and
performance-based incentive fees payable 17,345 16,306 Interest
payable 11,612 7,319 Accrued administrative services expense 1,166
2,250 Other liabilities and accrued expenses 5,959 7,075
Total Liabilities $ 1,015,819 $ 928,323
Net Assets $ 1,477,624 $ 1,481,797
Net Assets Common stock, $0.001 par value
(400,000,000 shares authorized; 219,694,654 and 219,694,654 shares
issued and outstanding, respectively) $ 220 $ 220 Paid-in capital
in excess of par 2,924,775 2,924,775 Accumulated underdistributed
net investment income 88,500 88,134 Accumulated net realized loss
(1,511,380 ) (1,277,625 ) Net unrealized loss (24,491 ) (253,707 )
Net Assets $ 1,477,624 $ 1,481,797
Net Asset Value Per Share $ 6.73 $ 6.74
APOLLO INVESTMENT CORPORATION
STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share
data)
Three Months Ended June 30, 2017
2016 Investment Income
Non-controlled/non-affiliated investments: Interest income $ 41,008
$ 48,343 Dividend income — 1,104 Other income 1,129 1,699
Non-controlled/affiliated investments: Interest income 2,551 262
Dividend income 1,087 3,046 Other income (306 ) 70 Controlled
investments: Interest income 16,392 17,245 Dividend income 4,850
4,700 Other income — —
Total Investment Income
$ 66,711 $ 76,469
Expenses Management fees $
12,125 $ 14,398 Performance-based incentive fees 7,912 8,451
Interest and other debt expenses 14,215 16,793 Administrative
services expense 1,675 1,526 Other general and administrative
expenses 2,557 5,038 Total expenses 38,484
46,206 Management and performance-based incentive fees
waived (5,009 ) (5,717 ) Expense reimbursements (84 ) (84 )
Net
Expenses $ 33,391 $ 40,405
Net Investment
Income $ 33,320 $ 36,064
Net Realized and
Change in Unrealized Gains (Losses) Net realized gains
(losses): Non-controlled/non-affiliated investments $ (89,839 ) $
(57,475 ) Non-controlled/affiliated investments (146,840 ) 65,830
Controlled investments — (191 ) Foreign currency transactions 2,924
361 Net realized gains (losses) (233,755 ) 8,525
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments 91,238 18,721
Non-controlled/affiliated investments 155,730 (93,787 ) Controlled
investments (7,068 ) (24,299 ) Foreign currency translations
(10,684 ) 12,690 Net change in unrealized gains (losses)
229,216 (86,675 )
Net Realized and Change in Unrealized
Gains (Losses) $ (4,539 ) $ (78,150 )
Net Increase
(Decrease) in Net Assets Resulting from Operations $ 28,781
$ (42,086 ) Earnings (Loss) Per Share — Basic $ 0.13
$ (0.19 ) Earnings (Loss) Per Share — Diluted
N/A
N/A
About Apollo Investment Corporation
Apollo Investment Corporation (NASDAQ:AINV) is a closed-end
investment company that has elected to be treated as a business
development company under the Investment Company Act of 1940. The
Company invests primarily in various forms of debt investments,
including secured and unsecured debt, loan investments, and/or
equity in private middle-market companies. The Company may also
invest in the securities of public companies and structured
products and other investments such as collateralized loan
obligations and credit-linked notes. The Company seeks to provide
private financing solutions for private companies that do not have
access to the more traditional providers of credit. Apollo
Investment Corporation is managed by Apollo Investment Management,
L.P., an affiliate of Apollo Global Management, LLC, a leading
global alternative investment manager. For more information, please
visit www.apolloic.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements involve risks and uncertainties,
including, but not limited to, statements as to our future
operating results; our business prospects and the prospects of our
portfolio companies; the impact of investments that we expect to
make; our contractual arrangements and relationships with third
parties; the dependence of our future success on the general
economy and its impact on the industries in which we invest; the
ability of our portfolio companies to achieve their objectives; our
expected financings and investments; the adequacy of our cash
resources and working capital; and the timing of cash flows, if
any, from the operations of our portfolio companies.
We may use words such as “anticipates,” “believes,” “expects,”
“intends,” “will,” “should,” “may” and similar expressions to
identify forward-looking statements. Such statements are based on
currently available operating, financial and competitive
information and are subject to various risks and uncertainties that
could cause actual results to differ materially from our historical
experience and our present expectations. Statements regarding the
following subjects, among others, may be forward-looking: the
return on equity; the yield on investments; the ability to borrow
to finance assets; new strategic initiatives; the ability to
reposition the investment portfolio; the market outlook; future
investment activity; and risks associated with changes in business
conditions and the general economy. Undue reliance should not be
placed on such forward-looking statements as such statements speak
only as of the date on which they are made. We do not undertake to
update our forward-looking statements unless required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20170804005040/en/
Apollo Investment CorporationElizabeth Besen,
212-822-0625Investor Relations Managerebesen@apollolp.com
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