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Jun 30, 2020
Gladstone Capital Q3 2020 Earnings Report
Reported financial results for the third quarter ended June 30, 2020.
Key Takeaways
Gladstone Capital Corporation reported an increase in net assets resulting from operations of $15.0 million, driven by $9.0 million in net portfolio appreciation, while net investment income was $6.1 million, a decrease of 7.1% compared to the prior quarter.
Interest income increased by $0.6 million, or 5.7%, driven by an increase in the weighted average principal balance of interest-bearing investment portfolio.
Other income decreased by $0.4 million, or 79.4%, quarter over quarter, primarily due to a decrease in success fees received.
Total expenses increased by 14.2% quarter over quarter, primarily due to a $0.8 million decrease in fee credits granted by the Adviser.
Net Investment Income for the quarter ended June 30, 2020 was $6.1 million, or $0.195 per share.
Forward Guidance
Gladstone Capital is well positioned to expand its investment portfolio as a value-added capital provider to growth oriented lower middle market companies.
Positive Outlook
- Portfolio performed well.
- Non-accrual assets declined.
- Closed on several attractive investments to grow earning asset base.
- Lifted core net interest income.
- Investment principles and strategies are intact.
Challenges Ahead
- The ramifications and impact of COVID-19 last quarter were certainly unprecedented.
- May be additional challenges ahead.
- Have a ways to go to fully recover from the unrealized losses of the prior quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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