Exhibit 99.1
GLADSTONE INVESTMENT CORPORATION REPORTS JUNE 30, 2005 FINANCIAL RESULTS
MCLEAN, Va., Aug. 10 /PRNewswire-FirstCall/ -- Gladstone Investment Corp.
(Nasdaq: GAIN) (the "Company") today announced earnings for the period June
22, 2005 (commencement of operations) to June 30, 2005. On June 22, 2005, the
Company priced its initial public offering and the stock began trading June
23, 2005 on NASDAQ under the trading symbol "GAIN."
On June 28, 2005, the Company closed the sale of 14,400,000 shares in
connection with the initial public offering at an aggregate public offering
price of $216.0 million, reflecting a public offering price of $15.00 per share.
On July 14, 2005, the underwriters exercised in full their option to purchase an
additional 2,160,000 shares of common stock. The exercise of the over-allotment
option brought the total number of shares sold in the initial public offering to
16,560,000 and provided the Company with an additional $30.1 million in net
proceeds. Total net proceeds received by the Company from the offering were
approximately $230.2 million after underwriting discounts and estimated offering
expenses.
Total assets were $200,628,803 at June 30, 2005. Net asset value was
$200,137,980 or $13.90 per actual common share outstanding at June 30, 2005. The
Company realized a net increase in stockholders' equity resulting from
operations of $19,800 for the period June 22, 2005 (commencement of operations)
to June 30, 2005. The net increase in stockholders' equity from operations per
basic and diluted common share for the period June 22, 2005 (commencement of
operations) to June 30, 2005 was $0.00.
The Company made no investments during the period June 22, 2005
(commencement of operations) to June 30, 2005. Subsequent to June 30, 2005, the
Company invested in three loans for an aggregate investment of $8.5 million.
Results reported today for investment income and operating expenses are not
expected to be indicative of future operating performance. In particular, the
Company expects investment income to increase in future quarters, as compared to
the period June 22, 2005 (commencement of operations) to June 30, 2005, as a
result of the investment of the net proceeds from the initial public offering
and as investments are made in portfolio company securities that the Company
expects will yield a greater return than the cash and cash equivalents in which
the vast majority of the net proceeds of our initial public offering are
currently invested.
"We have been pleased with the inflow of opportunities since the fund was
launched in June and anticipate that the investment income will grow as the
funds are deployed," said Chip Stelljes, President and Chief Investment Officer.
On July 7, 2005, the Company announced that the Board of Directors declared
its initial monthly cash dividends of $0.02 per common share for each of the
months of July, August and September of 2005. The dividend declaration in July
was the first for Gladstone Investment since it began trading.
Gladstone Investment will host a conference call at 9:30 am EDT, August 11,
2005. To enter the call please dial 888-413-5357 and use the confirmation code
745631. An operator will monitor the call and set a queue for questions. To hear
the replay of the call please dial 888-266-2081 and use the confirmation code
745631.
The live audio broadcast of Gladstone Investment's earnings conference call
will be available online at http://www.GladstoneInvestment.com and
http://www.vcall.com/vcall/index.asp , with an online replay to follow shortly
after the call.
Gladstone Investment Corporation is an investment company that seeks to make
debt and equity investments in small and mid-sized private businesses in the
U.S. in connection with acquisitions, changes in control and recapitalizations.
For more information please visit our website at
http://www.GladstoneInvestment.com.
For further information contact our Investor Relations Manager, Kelly
Sargent at 703-287-5835.
This press release may include statements that may constitute "forward-
looking statements" within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including statements with regard to the future performance of the
Company. Words such as "believes," "expects," "anticipates," "estimated,"
"approximately" "projects" and "future" or similar expressions are intended to
identify forward-looking statements. These forward-looking statements inherently
involve certain risks and uncertainties, although they are based on the
Company's current plans that are believed to be reasonable as of the date of
this press release. Factors that may cause the Company's actual results, levels
of activity, performance or achievements to be materially different from any
future results, levels of activity, performance or achievements expressed or
implied by such forward-looking statements include, among others, those factors
listed under the caption "Risk factors" of the Company's prospectus dated June
22, 2005, as filed with the Securities and Exchange Commission on June 23, 2005.
The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
GLADSTONE INVESTMENT CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
(UNAUDITED)
June 30,
2005
--------------
ASSETS
Cash and cash equivalents $ 200,611,011
Prepaid assets 17,792
Deferred offering costs -
TOTAL ASSETS $ 200,628,803
LIABILITIES
Accounts payable $ 128,029
Administration fee payable to Gladstone Administration 27,083
Loan payable to affiliate -
Accrued offering costs and expenses 335,711
Total Liabilities 490,823
NET ASSETS $ 200,137,980
ANALYSIS OF NET ASSETS:
Common stock, $0.001 par value, 100,000,000 shares
authorized and 14,400,100 shares issued and outstanding $ 14,400
Capital in excess of par value 200,103,780
Undistributed net investment income 19,800
Total Net Assets $ 200,137,980
GLADSTONE INVESTMENT CORPORATION
STATEMENT OF OPERATIONS
For the Period June 22, 2005 (Commencement of Operations) to June 30, 2005
(UNAUDITED)
INVESTMENT INCOME
Interest income - cash and cash equivalents $ 48,198
EXPENSES
Administration fee to Gladstone Administration 27,083
Interest 378
Stockholder related costs 635
General and administrative 302
Expenses 28,398
NET INVESTMENT INCOME 19,800
NET INCREASE IN STOCKHOLDERS' EQUITY RESULTING
FROM OPERATIONS $ 19,800
NET INCREASE IN STOCKHOLDERS' EQUITY RESULTING
FROM OPERATIONS PER COMMON SHARE:
Basic and Diluted $ -
SHARES OF COMMON STOCK OUTSTANDING:
Basic and Diluted 14,400,100
GLADSTONE INVESTMENT CORPORATION
FINANCIAL HIGHLIGHTS
For the Period June 22, 2005 (Commencement of Operations) to June 30, 2005
(UNAUDITED)
Per Share Data (1)
Net proceeds from initial public offering (2) $ 13.95
Offering costs (0.05)
Income from investment operations:
Net investment income -
Total from investment operations -
Distributions -
Net asset value at end of period $ 13.90
Per share market value at beginning of period $ 15.00
Per share market value at end of period 15.05
Total Return (3) (4) 0.33%
Shares outstanding at end of period 14,400,100
Ratios/Supplemental Data
Net assets at end of period $ 200,137,980
Average net assets (5) $ 200,137,980
Ratio of expenses to average net assets-annualized 0.06%
Ratio of net investment income to average net
assets-annualized 0.04%
(1) Based on actual shares outstanding.
(2) Net of initial underwriting discount of $1.05 per share.
(3) Total return equals the increase of the ending market value over the
beginning market value divided by the monthly beginning market value.
(4) Amounts were not annualized.
(5) Average net assets calculated from June 22, 2005 (commencement of
operations) to June 30, 2005.
CONTACT: Kelly Sargent, Investor Relations Manager of Gladstone
Investment Corporation, +1-703-287-5835/
Web site: http://www.gladstoneinvestment.com /