GLAD - Earnings call transcript Q1 2018 | Gladstone Capital Corporation

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Operator

Good day, ladies and gentlemen, and welcome to the Gladstone Capital Corporation’s First Quarter Ended December 31, 2017 Earnings Call and Webcast. At this time, all participants are in a listen-only mode. And later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] And as a reminder, this conference is being recorded. I would now like to introduce your host for today’s conference Mr. may you Sir, Gladstone, begin. David

David Gladstone

when analysts, update Thank for the A Thank portfolio. and quarter the opportunity This earnings ending Good provide of all an everybody. times December introduction. welcome the David XXXX. you, conference to Capital Gladstone, the for quarterly Amanda. is the company talk Chairman, investment morning, is analysts We love calling nice and the for and shareholders call Gladstone XX, get in. with on and you these all we shareholders and to this

General Now we’ll the call and Michael? LiCalsi, on of funds. which our our who President is is Gladstone of Administration, Counsel also Michael all for Administrator Secretary,

Michael LiCalsi

the of factors of and Exchange they’re involve Securities the may our Security and and forward-looking including materially performance. some uncertainties, XXXX, reasonable, and and be we with all Act on other our different be factors can even believe risk to may Dave, Investor Thanks, the morning. page under forms www.gladstonecapital.com, and the listed Today’s Relations any XXXX XX-K expressed or Act future our to of that good regarding risks cause www.sec.gov. website, be implied statements, by factors results and actual many the statements our and these call current These we all though XX-Q including other our those that’s results website, documents these and forward-looking from SEC, certain plans, future which on statements include based forward-looking SEC’s filed found on or

guarantee note our result otherwise, sign to performance is again, take that ask market new notification our statements, or you course and revise required except that service. whether a visit by e-mail also any and information, up publicly the future never Now we for opportunity or as of any results. of update future or undertake these website no We information past of we law as events, to forward-looking gladstonecapital.com of a obligation

Twitter, on Today's handle there and is is Facebook, You XX, on the Companies. through an Gladstone our overview results @GladstoneComps, is there call XXXX. can us also keyword of our December find The

everyone yesterday Form more our release detailed and So information. for press we issued both XX-Q, review to advise

I'll call over President, Now with that, back Gladstone Bob Capital’s the turn to Bob? Marcotte.

Bob Marcotte

morning thank Good for and all all in dialing today. you

focus As my results remarks the the a for quarter. I’ll overview, most on quick recent

which the have that in presentation closed follow-on morning. our XX, the the totaling three And portfolio regular $XX exited proprietary website million total our syndicated balance the We on Our brought brought million. capital quarter repayments originations with posted near and million, this several investments $XX.X with we and other on $XX.X position, along the the XXXX. investments, and quarter the investments the some on to totaling on are million. outlook shareholder quarter million interested, on which largely the effective fiscal our and income total resulted quarter, repayments million prior The four you quarter during of December those of include, for million, $XX we conclude three comments term smaller for totaling for quarter investments highlights on XXXX, quarter. net quarter, to the was the from of in was unchanged $XX.X Investment originations $XX.X $XX ended

quarter. fee was the the by prior offset As which income interest in assets, to with prepayment income rose compared X.X% average exit lower increase or

mix net preferred our assets basis on of the a the quarter, origination from income the fees dividends operations represent our waivers quarter, in relatively the portfolio management debt portfolio totalled With XXX% base fee portfolio overall, share $XX,XXX. regard of quarter, end which XX% portfolio unchanged, $X.XX the and share fee and investment unchanged the XX the activity liens lifted the level new adviser total the asset fees appreciation accretive as was and the million with our declined portfolio as Net value million, commons the share, costs the to rose. quarter share, per quarter issuance. secured last Net share per dropped at of up lift quarter to investment $X.XX return costs, to $X.X XX.X%. $X.X with Incentive equity on against rose XX%. on For points which as yield of on Net XX% to small from from the per of overall the $X.XX deal the rose reduced of average to on the rose $X.XX net appreciation $X.XX the were despite from and covered a totaled first paid secured also to management of to quarter quarter investments. asset per credited to continue financing

well, company in profile, we is Impact! of our The largest investment a experience note well the performed in related company Basin a that conservative sector a pipeline equity by owned specialized net oil the has to segment quarter closed before and for XX.X% crude quarter. , Permian end did we as fair at chemical is cycle. the investment new operators. last the of a a You portfolio private our very The will value, firm assets that on the distribution in and serving increase leverage the that we in proprietary was experienced primarily know just in gas the

exposure temporary. one a of investments of the to increase other Lastly, sell this we've to tranche proposals received portion large sector be the and expect down a in of our already in sector

on Our total $X.X portfolio million non-accrual million of at fair value. quarter, $XX.X value fair the or X.X% at cost of a were our of representing a unchanged investments

a the for we represents new we and successfully our maintaining on threshold XX company. grew was The earnings while a portfolio. quarter $XXX date of outlook. high of the over activity near investment end and be - investment to middle received outlook have $X.X and capital the of Through diversity market the just to higher quarter, our proprietary the repayments out continues the watermark in target totaling our million the Since ended, million, in call, credits term For $XXX assets for early of we laid with one sector positive. our closed calls XXXX, $X.X million. million smaller to one three the and lower our regard With position

than term with near - our highly year ended backlog, several bit outpace follow-on is We to high more continue typical. However, including our average the investments originations. historical a cash probable

our and to steps taking address we're investment matter. mindful However, very of are current capacity several the

size hope a to availability this of that of the prior regard make position pricing an and be in we approximately today, announcement bank to of are process facility to we under in the facility While $XX have revisiting million end the quarter. of in the and

we very supporting our of program, our over past cost plan equity common to in reactivate completion as provided the recent it our continues effective of to stock has value ATM asset the With our net been trade shelf, couple above growth quarters.

past oil on the Lastly, the well while prepayments anticipate opportunities we're sales middle up been pick syndicated modest we XXXX. and to to several our the positioned over some loan selective between quarters, have gas and market lower outlook balance of capitalize in prepayments, continue them for of our exposure, to down do selling

Regarding the outlook.

year. Officer market well the - support to originations will been Nicole elevated as we reported shareholder the with is and optimistic our We earlier, And turn while now, current cautiously portfolio results. our spread to positioned over our the mentioned the Schaltenbrand, Chief market and the to middle momentum ability to in believe first net continue see growth continuing the quarter of competitive the larger par on grow immune we're current investment we to quarter provide there compression, should I certainly attribute portfolio of well are last added fund's our from our some solutions continue levels deal Financial investment the not lower we in lower least I'd to asset focus performance investment past oriented update we as quarter, maintain to in As from years And the companies. delivering to on net financial conditions yields growth like income managers, value at our an distributions. couple fiscal has on who call and to middle

Nicole Schaltenbrand

Good Bob. you, Thank everyone. morning,

Let's income statement. reviewing begin the by

quarter, Other quarter, total basis prior as well bearing million income investment interest to decreased X.X% the over average increase XX income in financing increased expenses the of income due a $XXX primarily increase total XXX,XXX, in $XXX,XXX of interest the from or driven quarter-over-quarter. dividend by yield XXX,XXX, result by by slightly a decreased quarter. as in as during balance prior Total received the quarter, December weighted during decline primarily our expenses. by point a to principal portfolio current the the $XXX XXX,XXX the quarter For million weighted average prior the

credit. higher to a XX,XXX With average fee on unchanged the credits million, fees management preferred, as XX% increase recently at full with fee line were the and rose refinanced the credit impact the origination despite of declined origination and $X.X incentive LIBOR Net in during incentive deal of new borrowings quarter. average and our

net quarter $X.X of share shareholder was $X.XX income the distribution. For XX, ended investment or per and December XXX% million covered

crediting years, its several committed investment distribution. remains have that shareholder income the to covers our over we demonstrated fees, advisor our so As last net

Moving over sheet. to balance our

XXXX cash value $XXX $X assets, XXXX, appreciation $X million and recently million by the to in $XXX other common XX, $XX and liquidation Preferred $X.X Term assets. million and portfolio of and consisted facility, value of raised in in December since million $XXX in of the million total our end totalled closed fair of X% approximately $X.X million assets under in at million had [ph] consisting Stock XXX prior credit ATM approximately million million As our equity of at in liabilities. Net increased net outstanding Liabilities we million program. other investments quarter on about and due Series $XX borrowings primarily

by as to approximately under issued of common weighted shares we ATM $X.XX share. $X.XX XXX,XXX quarter, of of XXth. per the per September NAV average increased compared a $X.XX as For at December price program $X.XX share XX to our

rates, Inclusive continue debt, to the rate net tied to the is on at million origination $XXX rate point in to floating XXX portfolio from well income. these to an floating approximately of the position leverage and to be $XXX with million we increase is positioned XX% net should LIBOR forward, X% over assets generate approximate our of The of upward floor benefit investment. XX. in weighted past movement interest Looking in any December interest rate a floating average as only basis LIBOR increased of and quarter, XX% rise X.X%,

[ph] and to to continue of paid support believe some the to of net of that investment. of earlier, cash liquidity well modest outlined ounce a plans the end positioned subsequent we the Bob the are However, quarter we level

it back turn David to I'll conclude presentation. Now to over the

David Gladstone

job great In and a reforming did Capital grow all you follow a that think positioned our analysts I continues our Michael, stockholders continue of summary, very company. to well and in and Bob XXXX. strong and quarter Gladstone to report Nicole Well, the are to

XX, September years. at million $XXX end new one XXXX, I in investments year Last closed now. going think best almost Our team quarter the assets our to it's of seven of be

mark higher So to a go moving that. along water and than much hopefully can high

We the that largest have loans the great the market we par go. world. a know had the focus. - exited deals of Overall and Successfully is, maintained to third benefit yet par. which sold at tax what of economy three are above above portfolio greatly has law, par company middle had the don't backlog these were investments or from market a or people middle all - in from repaid yields or most The some new

about U.S. middle the that. at then of being the China and before you the and course, then U.S. If the market think first just

large a market. quite it's So

market, the that be that middle in returns. place get but can seems are we We lower the strong to

an most be shareholder now portfolio common distributions. that of assets to distribution almost made sequential relative and are love well continue with the about it's down an always, loan the monthly the to of an per Distributions common paying this stock X.XX% a our price yesterday for January, to shares manage or most. the its As XX, believe thing per Directors $XX.XX at stock run on and enhance never we’ve quarterly rate our grow and return February of to distributions the common run months March $X.XX of distributions our yield share That's of We In declared maintained monthly outstanding $X.XX a distributions. million cash we're of share total January monthly we of a the about continues We've date dividends. missed alternatives. that positioned to to the of in our we that annual committed Current to its I $X.XX, loans December and Board common which Through is rate per shareholders distribution share. call and cash and yield XXXX. outstanding distribution. about shareholders, XXX XXX - a rate average producing oriented of

to us Our the looking term funds which lend of provides monthly stock, sized loans. our shareholders. on yesterday into GLADN this that symbol money middle preferred the continue deal, $X.XXX per summary, ticker with distributions attractive hold. stock terrific Many to [ph] chance these $X.XX mid-sized for translates In market. under which in interest an investing on the the month. preferred This strong pay businesses commitment got That's of a getting partners X% capitalize they're stock gives distribution management. annually, XX.XX a make will very at We've are company closed that cash private team safe to position a sees a buyout ongoing which here, and businesses are support that experienced the us That's are improving our like owned to good by paid. in. to to paying a

So now let's fun part. the do

come those from have So the call. on questions operator, some if on you'll we'll

Operator

from Thank Schleien the Instructions] our you. Ladenburg. comes And [Operator of question first line of Mickey

is line Your open.

Mickey Schleien

Bob Yes. now last were know, we're lower that to middle going coming in relatively interest years everyone. to of definitely folks borrower climb agreement sort market the you friendly morning, are couple higher. seeing Good rates the of and terms

interest you've of underwriting terms your made in as interested defaults, higher to the frame time companies harder what debt? in assumptions servicing time understanding regarding over for that sort trigger of a rates I'm have more potential So their

Bob Marcotte

comments near there. larger some are shareholder can is, marketplace. and I not certainly Couple our Thank levels really you continued as certainly underwrite. the have are transparent to and we've with levels the of think One we know, from the you, presentations, anywhere of that syndicated you see Mickey. spiked leverage And leverage pretty not transactions

Our average portfolio substantially. yield has moved not

are cash we that piece obviously covenants. very we focused flow to other in The I middle lower being a is it market coverage, actually say would fixed get charge on

we manage significantly. levels able specify are and to those So

coverage as the up, going looking the say, rates tax for and lastly, I've levels be than outpacing And we're will healthy. levels range X.X we've growth, part tax typically know, couple generally down they rates is I the that are while organic oriented focus on. more rates can you would So that you are is they growth long businesses, service are focused going going profitability. we to that know, be our comments said far we it as which maintain impactful know, approximately leverage pretty and debt as analysis interest for most companies rates deleverage Last rates and you of to seen, are of most repeatedly, going interest up on can

basis. So go forward all factors positioned well are companies think a those on our of pretty I

Mickey Schleien

Bob. helpful really That's

That's of leverage. NAV, pretty like In what help now your it investment past, a ATM actively in that in to may. stock in of you there to your higher scenario? understand But up follow is, out, up debt drove Just pointed of the manage using other anything so my of was activity? leverage this been the is quarter you've idiosyncratic I to your equity couple bit level follow equity terms a me. questions target below the is And as the question I'd if sort from

Bob Marcotte

Okay.

flow mechanisms would want are And of process to are the where to that the said, I asset leverage of expect various in implement already sales, part nearing of average of in our one terms the there's ultimately closer that as outlined, portfolio, range, typically prepayments, we to not beginning timeframe. a I XX, you we than which is the much in percolated range third closing. in year-end the of a would of As the elements say, unusual norm I being million there. probably activity creep the I know, four in happened end would saw and you so different the I too higher of are. $XX to August terms largest think the the four being tremendous quarter, play. I us. the investments, for we top those anything I to we don't September flow closing amount historically And we deals a of where of deal Those terms the say guess know,

very very were was that anything. be busy was people tends in businesses. QX close different to typical, transactions to those out as is nothing They a tied the quarter year. calendar unusual As There

was there in sector differentiated names nothing defense or the names that was those way. there the real is nothing and say those aerospace, size really or would of Software, - in any I

Mickey Schleien

me. Thank it from time this you your That's morning. for

David Gladstone

Just next gone to the well tax you're market small two very pretty on changes to have year And good or to the over tag and the that see on think run Mickey, that on place. based just are a midsize I going received business that. in

Next question please?

Operator

The the Wedbush. of Coffey Absolutely. from question line is Henry of next

Your line is open.

Henry Coffey

Excuse me. morning. Good

past. going when downward value continued of kind am you first the are portfolio? thoughts on value got B, the obviously to seems back going to kind you'll sort with know, able to you sheet rates, marks, whether or rising the of put investments we to of of going When required we've forward when the itself gain I be in interest to the quarters liquidate is know, pressure it recovery? you then and gains about, see what of question, looking also overall was - your know, at balance and about some like a of A, you're sheet of that and just And So cost realized at you fair there overall, improving two three look in balance the are

David Gladstone

- of there. of in Lots questions lots questions

it's I follow pressure going a think rates, Henry on as big are up up. to most to the variable of so go deals it put our going we're rates not valuations,

So time at can't pay rising The obviously positives there, is an rate, by hurt small we interest if rates. in business don't some point went. interest get it

was remember pay nobody I years that. ago, and could You Prime XX,

interest But to And go can't grow capital in liquidations small rapid markets, are would all to with soon. at big the at think right the I this craziness from of just have rates from expect equity the We market I of businesses. you It normal pace. noise. forward, a gains. don't to So now something work any stock capital get see we back you I time. go as if or the now gains look some time to

is uptick in I our think remember that's because time. to have point the steady don't portfolio in goes valuations. crazy, marked place if destroying anything we there at see whole down. marketplace that's market world you'll this see I being down value a the out the just our But

So goes market down. ships when we is tide out down. follow old the the this The all saying go

But time So we'd big at return. anomaly right to is is this don't now. in stock that almost this have at follow in a valuation and anything correction XX% see great point I methodology. to our a This an buy down time

So beat a not but balance rates bit around, dramatically. yeah, by up little moving sheet will

Bob Marcotte

has up that our come been and recovered, to comment, firm credit. that depreciation portfolio valuation I quickly point and oil up. and our the moving quarterly But are have our portfolio, couple in of oil you've underlying S&P. to a gas, operating of improving follow gas they still that we fully significant one just to number couple seen These would we easy Henry, conversations points get Obviously quarters things at stellar. it's down make, outside our are name it's has the of in a of there's where couple marks I'll and not not slowly. back particular not underlying And the on two performance - of with the in been that of our company companies a pretty go pretty they think improvements have one, last in David's I

some So there's that probably side. on positive movements

terms or you top see three of something top substantially into next interest in refinancing of a of our thing we two The the they Two rate double-digits I one two, is in situations close they the five look to that terms when being deleveraged. we and terms happen, warrants. of growth at it's have to two at in When we appreciation, maybe you three of look three in know, tend and assets, a things down leverage, thing about will or start – some of of our leverage. go portfolios and these know, or half have and half five we the other and think our low

those we're upon value warrants don't or where to are those where we based things trade. you them know, So expecting

of and So suspect prepayment have situations. some I co-investment in fees there those recoveries will equity have number are we deleveraged a appreciation situations and/or that substantially

So feel underlying and large of I we pretty about fact marks is indicative those companies. are taking operating we performance that the good of think we the where haven't been

Henry Coffey

the stock you So - you rates I getting the and hippie. XX, if the way or was when - was interest know, table, seen worse have David was I a at you we was under remember, market, by for Prime look

So…

David Gladstone

I was loans. to trying collect

Henry Coffey

So when you…

David Gladstone

X time. We at Prime were the charging over

So…

Henry Coffey

So…

David Gladstone

I am interrupt… sorry to

Henry Coffey

underlying and when positive when companies, look so what's the you you shift, that so know, - is you better side table, know, performance the under you're saying just of getting your the and underlying in the at is confidence? a you The hard look we’re driving

Bob Marcotte

Absolutely.

David Gladstone

positive the world the views of not as stock Yes, they from market of There's there's there many lot place. all bounce a traders today out there. the mentioned crazy side I that market A automated. of the economic so are them lot Absolutely. from

who of stock not we the is the that look of at, we at our look it's Anyway, underlying and marketplace what and economics company So the not is you buying. know never who just selling market. think that's the

Henry Coffey

you Thank very much. Great.

David Gladstone

Okay.

question? Next

Operator

is Securities. question from And our line National next of of the Christopher Testa

open. Your line is

Christopher Testa

was the Casting lien Alloy from something portfolio, all taking that? from first else, for Was three my $X.X Thanks second guys. million that was what on or triggered morning, Die Good to transfer questions. and Hi. that the

Bob Marcotte

inside raised we capital for When money a working portfolio purposes. facilities bank will secured company a occasionally of we use

it And secured capital so goes EBITDA. working one [ph] and internal beyond when we asset raise a

Our facilities have we to that lien, line. us bank though reclassify our theoretically first second as even line require a

management working So that's form at one support working that company. something business capital And of challenged our announce of assets raised change be assets way been capital was we driving line growth in has the there. That liquidity it coming and relatively team while shape in a is new didn't performance in some dropped the small investment. the that a rebuilt. virtue position it its has to the hope our on and more any or improved The security by quarters to substantially. I And particular positive to actually

don't that's take migration negative. the anything don't as So take - the

Christopher Testa

Okay, And great. unrealized on was reform? underlying changes from that. Thank during much performance the the for you you tax of quarter gain how the positive versus idiosyncratic know,

Bob Marcotte

look that, not were really valuations. big factor - that with bigger our positions any factored is at adjustments into our in of analysis. might Folks We tax but a equity really don't not

the biggest movers. that recovery of to Our that I would two assets, I of - and get, are earlier, the which movements And straight from our one agency. valuations or I one I in in oil concentrated think was large as probably out there valuation larger dramatic were gas we referred say one our were of outside earlier referenced as adjustments

know, don't underlying natural And really in than something see as portfolio. it you the the so improvement normal I other

Christopher Testa

and you temporary. quarter part kind down a a Bob And to at spike you guys know that be mentioned going you're where should as and you related sold you're the oil we portfolio? end of I to had as Got the know, gas expecting having look threshold our forward that it. of of What one of comfortable hadn't composition subsequent investments

Bob Marcotte

probably the high Right now watermark. it's at

on us. We under it's are XX% that's a for high slowing But at probably down. and watermark working it just

Christopher Testa

I you being? be. I subsequent no, with I where comfortable that understand, you comfortable much know pretty but it down. I mean with you had mean be would mentioned it where you being. symbol would that Oh, that be the selling were mean, would highest you know, [ph] I that's

Bob Marcotte

of investments horizon, broad that. find statement. event specify that recent - on continuing. a - can't taken the the I it high two You to the would not hard an say your turns around We a want don't investment you It and I have down. know, it's I if put it's that liquidity to business, very would didn't very really circumstance end we are your come on love of and immediate comfortable if sector the range. if will leverage artificially sponsor. Chris the have about constrain I that feel

in So I be percentage a and about situation I don't asset-by-asset out concerned I've because of be put diversity. I given the put where it's an investments to a want to kind specific running solid that already the there get got you indication of

number down, come it. hard to put a don’t I will on So want it

Christopher Testa

last or expecting syndicated going mentioned be facility you dynamics? me, X issuance oil the need and Okay, on over anticipating with for quarter And X gas prepayments selling draw two a or you should and Or or - to that you're loans. next that's you're down to from have growth sales and ATM fair. quarters? you some of enough given expecting know, up next prepayments the the those you're guys portfolio pick one Are that growth that to meaningful kind the drive of

Bob Marcotte

project. that past question exactly, to to prepayments as difficult the in you a said love to for very it's know, be are I project You able I'd

we lien, situations portfolio know, teens You rate debt a where our front earning in of second got low we've us. are and in there's no

money us and pay to decides they company could do that off when it. So raise certainly

rates similar exposures to million of cash. getting and we're $XX where $XX large sitting million have We they're on

will them, oriented find that prepayment decide they prepayments these equity. to certainly businesses expand drive growth some our appreciation hope [ph] within will when But exact businesses We grow a find So entirely of something calling they make They of prerogative. we challenge. as underwrote their and to is their originally obviously buy. to is something and

million, note, roughly million would and on - if we you The just if our $XX where investment second at between portfolio ending we looking average we million $XXX earning we than the assets was our what balance which guess I what higher last look believe average was, I maintain are of the earnings difference quarter. are at I assets you're are, - outstanding $XXX almost our for thing that experienced sheet portfolio at our

lines we have million earnings are So left costs And from with bank fairly our existing off portfolio. $XX of obviously our borrowing marginal just additional the still attractive.

expected our probably the some prepayments opportunity this than of that's know, balance activity. some somewhat we we've ATM more near we limited. leverage in In the downs momentum. a sheet that planning be So past it's constrained some point there and you extent some you will to between know, I is will bit - at probably term, the the sell It's monetizations got are quarters. will enough to investment say and it to support see issue been

pursue can ATM we program. if somewhat we the of we investments, to not curtailed equity think I opportunities continuing but is be organic some as conducive growth manage additional follow-on the the natural may market that in

Christopher Testa

you Thank all taking for color. and questions. my you great Thank me. That's from that's

David Gladstone

question. Next

Operator

of ethics Andy next line is our Lyons. Hilliard question Stapp And from of

open. is Your line

Andy Stapp

Good morning.

David Gladstone

Morning.

Andy Stapp

new during the were production What yields quarter?

David Gladstone

Seven.

Bob Marcotte

as proprietary and page a aerospace, consulting It's were all seven that a total business. and technology the efficiencies oil was four business on distribution I were business. software deals. a primary in syndicates. production business, there investments. manufacturing to - The capabilities deal there XX, there technology Well, was Q four primary proprietary There There the business listed was efficient our a chemicals gas software and specifically three supplier and defense referred

Andy Stapp

answered. Okay. rest were my of the All right. questions All

David Gladstone

right. All

Bob Marcotte

you, Thank Andy.

David Gladstone

questions. Other

Operator

another from Investor. have Phil the line question a We Private Brown, do of

line open. Your is

Phil Brown

raise were you that you of Yeah. gotten we movement Last wondering, the return year dividend, you that Question a equity maintain maintaining lot give I'm things specific the articulating, that your for you in how targets projections, dividend? are that maintaining some the - these on you, million could I be over year XX% terms don't which getting - and can you. but we’ve the this would of you’re know assuming on and confident done do this done. $XXX to you've could think we LIBOR, and like just yields

David Gladstone

Well, you're answer the question that our let President just heart right I'll here, now. in to

Bob Marcotte

our interest think substantially focused of net is the in that the comments has last thing amount and is incentive we've the combination I the credits amount up year. power means and is I generated of over The up and ‘XX on dividends. our we've release, my where almost today. held that voluntary income over December margin press that what Yeah, the earnings of free confidence That most been interest That the expenses XX% and are moving zero our December most drives fact – ‘XX. get has over interest

earnings - of that in If the as we our alluded that, costs, line. here that get financing I that movement the in assets I've But the that those continues, the the the power is to to up headed in terms the by average good our we're and be and reduce position something I doing that end to outstanding tail baton know, continued all you That of towards what said year end to are there around add of year. suspect before in of will think I are very you and right take fiscal things discussions significant the driver direction.

Phil Brown

Yea, all met. been that that way, the have seems I other mean, great. certainly goals you. Thank it

sounds - you. sounds that Thank So that terrific.

David Gladstone

Gladstone Capital (GLAD) 6 Feb 182018 Q1 Earnings call transcript