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Mar 31, 2022
Gladstone Capital Q2 2022 Earnings Report
Reported earnings for the second fiscal quarter ended March 31, 2022.
Key Takeaways
Gladstone Capital Corporation reported a net investment income of $8.7 million, or $0.25 per share, for the quarter ended March 31, 2022. The net increase in net assets resulting from operations was $8.3 million, or $0.24 per share. The company's net asset value per common share increased to $9.49.
Invested $10.8 million in existing portfolio companies.
Received $50.9 million in repayments and net proceeds, primarily from exits of two portfolio companies and repayment of debt investment in NetFortris Corp.
Net investment income of $8.7 million for the quarter covered distributions by 130%.
Net asset value increased to $325.5 million, or $9.49 per share.
Forward Guidance
Gladstone Capital is well-positioned to benefit from impending increases in short-term interest rates due to its floating rate investment portfolio and fixed rate liabilities. They will continue to assess the outlook for portfolio growth and net interest income increases to sustain any future increases to shareholder distributions.
Positive Outlook
- Well-positioned to benefit from the impending increase in short-term interest rates
- Floating rate investment portfolio
- Fixed rate liabilities
- Portfolio performed well and generated an elevated level of fee income
- Dividend increase announced in April
Challenges Ahead
- Net originations were soft given market conditions
- Total expenses increased by 22.2% quarter over quarter
- Net investment income decreased by 5.1% as compared to the prior quarter
- Net increase in net assets resulting from operations decreased from $12.1 million to $8.3 million
Historical Earnings Impact
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Avg. Return Before/After Earnings
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