GSV Capital Corp. (“GSV Capital” or the “Company”)
(Nasdaq:GSVC) today announced financial results for the quarter
ended March 31, 2016.
Date |
|
|
Net Assets (Millions) |
|
|
Net Asset Value (per share) |
|
As of March 31, 2016 |
|
|
$ |
243.1 |
|
|
|
$ |
10.96 |
|
|
As of December 31,
2015 |
|
|
$ |
268.0 |
|
|
|
$ |
12.08 |
|
|
As of March 31, 2015 |
|
|
$ |
302.6 |
|
|
|
$ |
15.66 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“Despite first quarter volatility in both public and private
markets, we are pleased with the fundamentals of the GSV Capital
portfolio," said Michael Moe, Chief Executive Officer of GSV
Capital. “Due to markdowns in leading positions, including
Palantir, Dropbox and Twitter, where growth remains robust, our net
asset value per share decreased $1.12 in the quarter. We believe
that over time, growth drives enterprise value, and ultimately
stockholder returns. Accordingly, GSV Capital remains committed to
building a portfolio of companies with high, sustainable growth
rates.”
Moe continued, "We would also like to invite our stockholders to
GSV Capital’s annual Investor Day on Wednesday, June 1, at GSVlabs
in Redwood City from 1:00PM-5:00PM (Pacific Time), where we will
feature CEOs of our portfolio companies. Presenting companies
include Coursera, Enjoy, Lytro, PayNearMe, OZY, DogVacay, Declara
and Curious. To RSVP, please visit gsv.com/gsvc-investor-day."
Investment Portfolio as of March 31, 2016
At March 31, 2016, GSV Capital held positions in 46 portfolio
companies with an aggregate fair value of $325.3 million. Excluding
Treasuries, the Company’s three largest investments comprised 25.1%
of its total portfolio at fair value, while its top ten portfolio
company investments accounted for 53.8% of the total portfolio at
fair value.
Top Ten
Investments at March 31, 2016 |
|
|
|
|
|
$ in
millions (rounded) |
|
Fair Value |
% of Total Portfolio |
|
Palantir Technologies,
Inc. |
|
$ |
46.1 |
|
14.2 |
% |
Dropbox, Inc. |
|
|
19.2 |
|
5.9 |
|
Spotify Technology
S.A. |
|
|
16.2 |
|
5.0 |
|
Coursera, Inc. |
|
|
14.4 |
|
4.4 |
|
Solexel, Inc. |
|
|
14.0 |
|
4.3 |
|
PayNearMe, Inc. |
|
|
14.0 |
|
4.3 |
|
Lyft, Inc. |
|
|
13.7 |
|
4.2 |
|
Twitter, Inc. |
|
|
13.2 |
|
4.1 |
|
Declara, Inc. |
|
|
12.0 |
|
3.7 |
|
Curious.com, Inc. |
|
|
12.0 |
|
3.7 |
|
Total
(rounded) |
|
$ |
174.9 |
|
53.8 |
% |
|
|
|
|
|
|
|
Of the five key investment themes GSV Capital has identified in
its portfolio, Cloud Computing and Big Data is its largest
commitment, constituting 32.9% of the total portfolio at fair
value. Education Technology represents 30.3% of the total
portfolio at fair value, and Social Mobile, Marketplaces and
Sustainability represent 17.6%, 13.3% and 5.9% of the total
portfolio at fair value, respectively.
First Quarter 2016 Portfolio Investment
Activity
In the first quarter of 2016, GSV Capital invested approximately
$6.0 million, including follow-on investments of approximately $2.5
million in Lytro, $2.0 million in Curious.com, $1.0 million in
Fullbridge, and $500,000 in nestGSV (d/b/a GSVlabs).
Subsequent to first quarter-end, through May 9, 2016, GSV
Capital invested approximately $4.0 million in Snapchat.
GSV Capital sold shares in the following portfolio companies
during the first quarter:
|
|
|
Shares |
|
Net Share |
|
Net |
|
Realized |
|
Portfolio Company |
|
|
Sold |
|
Price 1 |
|
Proceeds |
|
Gain/(Loss) 2 |
|
|
|
|
|
|
|
|
|
|
|
|
Bloom
Energy Corporation |
|
|
201,589 |
|
$ |
14.75 |
|
$ |
2,973,437 |
$ |
|
(882,162 |
) |
|
Gilt
Groupe Holdings, Inc. 3 |
|
|
248,600 |
|
$ |
1.72 |
|
|
427,270 |
|
|
(6,167,164 |
) |
|
Lyft,
Inc. |
|
|
65,557 |
|
$ |
25.00 |
|
|
1,638,925 |
|
|
974,224 |
|
|
Total |
|
|
|
|
|
$ |
5,039,632 |
$ |
|
(6,075,102 |
) |
|
__________
(1) The average net share price is the net share price realized
after deducting all commissions and fees on the sale(s).(2)
Realized gains/(losses) exclude any realized gains/(losses)
incurred on the maturity of GSV Capital’s treasury investments.(3)
In January 2016, Gilt Groupe Holdings, Inc. sold for $250 million
to Hudson’s Bay Co., the parent company of Saks Fifth Avenue.
Subsequent to first quarter-end, through May 9, 2016, GSV
Capital sold shares in the following portfolio company:
|
|
|
Shares |
|
Net Share |
|
Net |
|
Realized |
|
Portfolio Company |
|
|
Sold |
|
Price 1 |
|
Proceeds |
|
Gain 2 |
|
|
|
|
|
|
|
|
|
|
|
|
Lyft,
Inc. |
|
|
27,582 |
|
$ |
24.00 |
|
$ |
661,968 |
$ |
382,078 |
|
__________
(1) The average net share price is the net share price realized
after deducting all commissions and fees on the sale(s).(2)
Realized gains/(losses) exclude any realized gains/(losses)
incurred on the maturity of GSV Capital’s treasury investments.
At quarter-end, and as of May 9, 2016, GSV Capital had no
borrowings outstanding and $18.0 million of borrowing capacity
available to it under its credit facility.
First Quarter 2016 Financial Results
|
Three Months Ended March 31,
2016 |
Three Months EndedMarch 31,
2015 |
$ in millions (rounded) |
per share |
$ in millions (rounded) |
per share |
Net investment
income/(loss) |
$ |
0.5 |
|
$ |
0.02 |
|
$ |
(7.6 |
) |
$ |
(0.39 |
) |
|
|
|
|
|
Net realized
gains/(losses) |
$ |
(6.1 |
) |
$ |
(0.27 |
) |
$ |
13.2 |
|
$ |
0.68 |
|
|
|
|
|
|
Provision for taxes on net
realized gains |
|
- |
|
|
- |
|
$ |
(5.4 |
) |
$ |
(0.28 |
) |
|
|
|
|
|
Net change in unrealized
appreciation/(depreciation) of investments |
$ |
(19.4 |
) |
$ |
(0.87 |
) |
$ |
27.8 |
|
$ |
1.44 |
|
|
|
|
|
|
Provision for taxes on
unrealized appreciation of investments |
|
- |
|
|
- |
|
$ |
(11.4 |
) |
$ |
(0.59 |
) |
|
|
|
|
|
Net increase/(decrease) in
net assets resulting from operations - basic |
$ |
(24.9 |
) |
$ |
(1.12 |
) |
$ |
16.7 |
|
$ |
0.86 |
|
|
|
|
|
|
Weighted-average common basic shares outstanding were
approximately 22.2 million for the three months ended March 31,
2016 and 19.3 million for the three months ended March 31,
2015.
GSV Capital’s liquid assets ended the quarter at $41.0 million,
consisting of $4.4 million of cash, $18.0 million of unused
borrowings available under the Company’s credit facility and $18.7
million of public securities not subject to lock-up agreements,
$133,678 of which are subject to periodic sales
restrictions.
Conference Call and Webcast
Management will hold a conference call and webcast for investors
today at 2:00 p.m. PT (5:00 p.m. ET). The conference call number
for U.S. participants is 888-523-1232, and the conference call
number for participants outside of the United
States is 1-719-325-2201. The conference ID number for
both call numbers is 9445452. Additionally, interested
parties can listen to a live webcast of the call from the
“Investors” section of GSV Capital’s website at
http://investors.gsvcap.com/. An archived replay of the webcast
will also be available for 12 months following the live
presentation.
A replay of the conference call may be accessed through May 16,
2016 by dialing 888-203-1112 (U.S.)
or 1-719-457-0820 (international) and using conference ID
number 9445452.
About GSV Capital
Corp.
GSV Capital Corp. (GSVC) is a publicly traded investment fund
that seeks to invest in high-growth, venture-backed private
companies. Led by industry veteran Michael Moe, the Company
seeks to create a portfolio of high-growth emerging private
companies via a repeatable and disciplined investment approach, as
well as to provide investors with access to such companies through
its publicly traded common stock. GSV Capital is headquartered in
Woodside, CA. www.gsvcap.com
Follow GSV Capital on Twitter: @gsvcap
The GSV Capital Corp. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=12750
Forward-Looking Statements
Statements included herein may constitute “forward-looking
statements,” which relate to future events or our future
performance or financial condition. These statements are not
guarantees of our future performance, condition or results of
operations and involve a number of risks and uncertainties.
Actual results may differ materially from those in the
forward-looking statements as a result of a number of factors,
including those described from time to time in our filings with the
SEC. GSV Capital Corp. undertakes no duty to update any
forward-looking statements made herein, unless required to do so by
law.
GSV CAPITAL
CORP. AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES |
|
|
|
|
|
March 31, 2016 |
|
December 31, 2015 |
ASSETS |
(Unaudited) |
|
|
Investments at fair
value: |
|
|
|
|
|
Investments in controlled
securities (cost of $22,330,392 and $21,830,392, respectively)
(1) |
$ |
|
23,105,062 |
|
|
$ |
|
22,871,790 |
|
Investments in affiliated
securities (cost of $71,994,560 and $73,942,123, respectively)
(1) |
|
|
67,935,085 |
|
|
|
|
66,075,585 |
|
Investments in
non-controlled/non-affiliated securities (cost of $193,925,756 and
$197,577,328, respectively) |
|
|
234,248,249 |
|
|
|
|
260,861,392 |
|
Investments in treasury bill (cost
of $29,999,883 and $29,999,968, respectively) |
|
|
29,999,883 |
|
|
|
|
30,000,000 |
|
Investments owned and pledged
(amortized cost of $1,845,845 and $3,675,192, respectively)
(2) |
|
|
1,847,613 |
|
|
|
|
3,676,693 |
|
Total Investments (cost of
$320,096,436 and $327,025,003, respectively) |
|
|
357,135,892 |
|
|
|
|
383,485,460 |
|
|
|
|
|
|
|
Cash |
|
|
4,381,411 |
|
|
|
|
13,349,877 |
|
Restricted cash |
|
|
75,681 |
|
|
|
|
52,931 |
|
Due from: |
|
|
|
|
|
GSV Asset Management (1) |
|
|
1,623 |
|
|
|
|
220,770 |
|
Portfolio companies (1) |
|
|
52,491 |
|
|
|
|
56,371 |
|
Interest and dividends
receivable |
|
|
185,534 |
|
|
|
|
97,183 |
|
Prepaid expenses and
other assets |
|
|
161,223 |
|
|
|
|
227,826 |
|
Deferred financing
costs (3) |
|
|
328,820 |
|
|
|
|
352,653 |
|
Total Assets |
|
|
362,322,675 |
|
|
|
|
397,843,071 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Due to: |
|
|
|
|
|
GSV Asset Management (1) |
|
|
25,690 |
|
|
|
|
5,047,429 |
|
Accounts payable and
accrued expenses |
|
|
393,161 |
|
|
|
|
105,587 |
|
Accrued incentive fees
(1) |
|
|
12,195,980 |
|
|
|
|
17,314,565 |
|
Accrued management fees
(1) |
|
|
655,912 |
|
|
|
|
683,423 |
|
Accrued interest
payable |
|
|
150,938 |
|
|
|
|
1,056,563 |
|
Payable for securities
purchased |
|
|
26,499,883 |
|
|
|
|
26,499,357 |
|
Deferred tax
liability |
|
|
12,476,155 |
|
|
|
|
12,476,155 |
|
Convertible Senior
Notes payable 5.25% due September 15, 2018 (2)(3) |
|
|
66,863,075 |
|
|
|
|
66,649,047 |
|
Total
Liabilities |
|
|
119,260,794 |
|
|
|
|
129,832,126 |
|
Commitments and
contingencies (Note 6) |
|
|
|
|
|
Net
Assets |
$ |
|
243,061,881 |
|
|
$ |
|
268,010,945 |
|
|
|
|
|
|
|
NET
ASSETS |
|
|
|
|
|
Common stock, par value
$0.01 per share |
|
|
|
|
|
(100,000,000
authorized; 22,181,003 issued and outstanding, respectively) |
$ |
|
221,810 |
|
|
$ |
|
221,810 |
|
Paid-in capital in
excess of par |
|
|
237,757,527 |
|
|
|
|
237,757,527 |
|
Accumulated net
investment loss |
|
|
(16,087,030 |
) |
|
|
|
(16,634,037 |
) |
Accumulated net
realized gains/(losses) on investments |
|
|
(3,393,728 |
) |
|
|
|
2,681,342 |
|
Accumulated net
unrealized appreciation of investments |
|
|
24,563,302 |
|
|
|
|
43,984,303 |
|
Net Assets |
$ |
|
243,061,881 |
|
|
$ |
|
268,010,945 |
|
|
|
|
|
|
|
Net Asset Value Per
Share |
$ |
|
10.96 |
|
|
$ |
|
12.08 |
|
|
|
|
|
|
|
(1) This balance is a related-party
transaction. (2) In accordance with the terms of the Company’s
Convertible Senior Notes payable, the Company deposited $10,867,500
in an escrow account with U.S. Bank National Association, the
trustee. These funds were used to purchase six U.S. Treasury Strips
with an original cost of $10,845,236. As of March 31, 2016, five of
the government securities purchased had matured and the proceeds
were used by the trustee in accordance with the terms of the escrow
agreement. At March 31, 2016, the remaining government securities
are shown on the Condensed Consolidated Statements of Assets and
Liabilities as “Investments owned and pledged” with an amortized
cost of $1,845,845. The Convertible Senior Notes have a face value
of $69,000,000 due to the Company’s investors. (3) Deferred
debt issuance costs of $1,947,572 related to the Company’s issuance
of the Convertible Senior Notes payable was previously classified
as Deferred Financing costs as of December 31, 2015. In
accordance with ASU 2015-03, this balance has been retrospectively
reclassified as a direct deduction from the Convertible Senior
Notes on the Condensed Consolidated Statements of Assets and
Liabilities.
GSV CAPITAL CORP. AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
|
|
|
|
Three months ended |
|
|
Three months ended |
|
|
|
|
March 31, 2016 |
|
|
March 31, 2015 |
|
INVESTMENT
INCOME |
|
|
|
|
|
|
|
Interest income from
controlled securities (1) |
|
$ |
|
4,889 |
|
|
$ |
|
- |
|
|
Interest income from
affiliated securities (1) |
|
|
|
92,478 |
|
|
|
|
51,231 |
|
|
Interest income from
non-controlled/non-affiliated securities |
|
|
|
5,285 |
|
|
|
|
7,793 |
|
|
Total Investment Income |
|
|
|
102,652 |
|
|
|
|
59,024 |
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES |
|
|
|
|
|
|
|
Management fees
(1) |
|
|
|
1,958,000 |
|
|
|
|
1,921,128 |
|
|
(Reversal of Incentive
fee accrual)/Incentive fees (1) |
|
|
|
(5,118,584 |
) |
|
|
|
8,211,728 |
|
|
Costs incurred under
Administration Agreement (1) |
|
|
|
599,950 |
|
|
|
|
802,396 |
|
|
Directors’ fees |
|
|
|
86,250 |
|
|
|
|
85,306 |
|
|
Professional fees |
|
|
|
637,128 |
|
|
|
|
341,744 |
|
|
Interest expense |
|
|
|
1,183,163 |
|
|
|
|
1,368,803 |
|
|
Other expenses |
|
|
|
209,738 |
|
|
|
|
121,325 |
|
|
Total Operating
Expenses |
|
|
|
(444,355 |
) |
|
|
|
12,852,430 |
|
|
|
|
|
|
|
|
|
|
Benefit for taxes on net investment
loss |
|
|
|
- |
|
|
|
|
5,223,611 |
|
|
|
|
|
|
|
|
|
|
Net Investment
Income/(Loss) |
|
|
|
547,007 |
|
|
|
|
(7,569,795 |
) |
|
|
|
|
|
|
|
|
|
Net Realized
Gains/(Losses): |
|
|
|
|
|
|
|
From non-controlled/non-affiliated
securities |
|
|
|
(6,075,070 |
) |
|
|
|
13,218,403 |
|
|
Net Realized Gains/(Losses)
on investments |
|
|
|
(6,075,070 |
) |
|
|
|
13,218,403 |
|
|
|
|
|
|
|
|
|
|
Provision for taxes on net
realized |
|
|
|
|
|
|
|
gains on
investments |
|
|
|
- |
|
|
|
|
(5,397,074 |
) |
|
|
|
|
|
|
|
|
|
Net Change in Unrealized
Appreciation/ |
|
|
|
|
|
|
|
(Depreciation) of
investments: |
|
|
|
|
|
|
|
From controlled
securities (1) |
|
|
|
(266,728 |
) |
|
|
|
(141,656 |
) |
|
From affiliated
securities (1) |
|
|
|
(1,148,187 |
) |
|
|
|
249,522 |
|
|
From non-controlled/non-affiliated
securities |
|
|
|
(18,006,086 |
) |
|
|
|
27,676,215 |
|
|
Net Change in Unrealized
Appreciation/ |
|
|
|
|
|
|
|
(Depreciation) of
investments |
|
|
|
(19,421,001 |
) |
|
|
|
27,784,081 |
|
|
|
|
|
|
|
|
|
|
Provision for taxes on
unrealized |
|
|
|
|
|
|
|
appreciation of
investments |
|
|
|
- |
|
|
|
|
(11,370,993 |
) |
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in
Net Assets |
|
|
|
|
|
|
|
Resulting from
Operations |
|
$ |
|
(24,949,064 |
) |
|
$ |
|
16,664,622 |
|
|
|
|
|
|
|
|
|
|
Net Increase/(Decrease) in
Net Assets Resulting |
|
|
|
|
|
|
|
from Operations per Common
Share |
|
|
|
|
|
|
|
Basic |
|
$ |
|
(1.12 |
) |
|
$ |
|
0.86 |
|
|
Diluted (2) |
|
$ |
|
(1.12 |
) |
|
$ |
|
0.73 |
|
|
|
|
|
|
|
|
|
|
Weighted-Average Common
Shares Outstanding |
|
|
|
|
|
|
|
Basic |
|
|
|
22,181,003 |
|
|
|
|
19,320,100 |
|
|
Diluted (2) |
|
|
|
22,181,003 |
|
|
|
|
23,564,228 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) This balance is a related-party
transaction. (2) For the three months ended March 31, 2016,
5,710,212 potentially dilutive common shares were excluded from the
weighted-average common shares outstanding for diluted net decrease
in net assets resulting from operations per common share because
the effect of these shares would have been anti-dilutive.
GSV CAPITAL CORP. AND
SUBSIDIARIES |
FINANCIAL HIGHLIGHTS |
|
|
|
|
Three months ended |
|
|
Three months ended |
|
|
|
|
|
March 31, 2016 |
|
|
March 31, 2015 |
|
|
Per Share
Data |
|
|
(Unaudited) |
|
|
(Unaudited) |
|
|
Net asset value at
beginning of period |
|
$ |
|
12.08 |
|
|
$ |
|
14.80 |
|
|
|
Net investment
income/(loss) |
|
|
|
0.02 |
|
|
(1 |
) |
|
|
(0.39 |
) |
|
(1 |
) |
|
Realized
gain/(loss) |
|
|
|
(0.27 |
) |
|
(1 |
) |
|
|
0.68 |
|
|
(1 |
) |
|
Provision for taxes on
net realized capital gains |
|
|
|
- |
|
|
(1 |
) |
|
|
(0.28 |
) |
|
(1 |
) |
|
Net change in
unrealized appreciation/(depreciation) |
|
|
|
(0.87 |
) |
|
(1 |
) |
|
|
1.44 |
|
|
(1 |
) |
|
Provision for taxes on
unrealized appreciation of investments |
|
|
|
- |
|
|
(1 |
) |
|
|
(0.59 |
) |
|
(1 |
) |
|
Net asset value at end
of period |
|
$ |
|
10.96 |
|
|
$ |
|
15.66 |
|
|
|
|
|
|
|
|
|
|
|
|
Per share market value
at end of period |
|
$ |
|
5.60 |
|
|
$ |
|
9.80 |
|
|
|
Total return based on
market value |
|
|
|
(15.28 |
) |
%(2) |
|
|
13.56 |
|
% (2) |
|
Total return based on
net asset value |
|
|
|
(9.27 |
) |
%(2) |
|
|
5.81 |
|
% (2) |
|
Shares outstanding at
end of period |
|
|
|
22,181,003 |
|
|
|
|
19,320,100 |
|
|
|
|
|
|
|
|
|
|
|
|
Ratio/Supplemental Data: |
|
|
|
|
|
|
|
|
Net assets at end of
period |
|
$ |
|
243,061,881 |
|
|
$ |
|
302,568,295 |
|
|
|
Average net assets |
|
$ |
|
275,907,870 |
|
|
$ |
|
296,308,650 |
|
|
|
|
|
|
|
|
|
|
|
|
Annualized
ratios |
|
|
|
|
|
|
|
|
Ratio of gross
operating expenses to average net assets (3) |
|
|
|
(0.65 |
) |
% |
|
|
17.59 |
|
% |
|
Ratio of net income tax
provisions to average net assets (3) |
|
|
|
- |
|
% |
|
|
(15.80 |
) |
% |
|
Ratio of net operating
expenses to average net assets (3) |
|
|
|
(0.65 |
) |
% |
|
|
1.79 |
|
% |
|
|
|
|
|
|
|
|
|
|
Ratio of
net investment income (loss) to |
|
|
|
|
|
|
|
|
average net assets (3) |
|
|
|
0.80 |
|
% |
|
|
(10.36 |
) |
% |
|
|
|
|
|
|
|
|
|
|
Portfolio Turnover
Ratio |
|
|
|
1.55 |
|
% |
|
|
2.33 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Based on weighted-average number of shares outstanding for
the period. (2) Total return based on market value is based on the
change in market price per share between the opening and ending
market values per share in the period. Total return based on net
asset value is based upon the change in net asset value per share
between the opening and ending net asset values per share. (3)
Financial Highlights for periods of less than one year are
annualized and the ratios of operating expenses to average net
assets and net investment loss to average net assets are adjusted
accordingly. Non-recurring expenses are not annualized. For each of
the three months ended March 31, 2016 and 2015, the Company did not
incur any non-recurring expenses. Because the ratios are calculated
for the Company’s common stock taken as a whole, an individual
investor’s ratios may vary from these ratios.
Contact
GSV Capital Corp.
(650) 235-4769
IR@gsvam.com
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