Gladstone Investment Corporation - Business Development Company · NASDAQ:GAIN
Gladstone Investment Corporation - Business Development — Gladstone Investment — Q2 2021 Earnings Presentation
19 slides from Gladstone Investment Corporation - Business Development's earnings presentation, Sep 30, 2020
Slide 1: Gladstone Investment Quarterly Overview
GLADSTONE INVESTMENT Quarterly Overview September 30, 2020
Slide 2: Legal Disclaimer
Legal Disclaimer This presentation may include forward‐looking statements. These forward‐looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any futu
Slide 3: Gladstone Investment Overview
Gladstone Investment | Overview(1) BDC differentiated through buyout investment strategy • Nasdaq symbol “GAIN” | market cap of $302 million Publicly traded business • Two series of preferred stock listed on Nasdaq under the symbols “GAINM” and “GAINL,” with dividend development company rates of 6.2
Slide 4: Investment Highlights
Investment Highlights Leveraged buyout investor with history of increasing distributions and realizing capital gains Focus on Risk Management & Equity Value Creation 1 GAIN strives for prudent purchase multiples in companies with strong growth prospects. GAIN’s investment discipline and risk managem
Slide 5: Investment Focus and Process
Investment Focus and Process • Target stable lower middle market companies with EBITDA of $3 ‐ 20 million • Investment size (debt & equity) up to $30 million (typically 25% equity & 75% debt) • Lead or co‐lead prospective transactions Investment • Focused on cash‐flow positive businesses with proven
Slide 6: Risk Management and Value Creation
Risk Management and Value Creation GAIN is typically a long‐term investor with a strategy to deploy debt & equity designed to streamline post‐close value creation 1 2 Certainty and Speed to Close Investment Horizon No third party capital required to Long term investment horizon as a close transactio
Slide 7: Upside Potential Driven by Focus on Equity Securities
Upside Potential Driven by Focus on Equity Securities • GAIN’s equity ownership provides further upside to shareholders through prospective capital gains and other income from successful exits • Since inception, GAIN has generated approximately $278 million in net realized gains and dividends on the
Slide 8: Successful Realizations Enhance Shareholder Value
Successful Realizations Enhance Shareholder Value History of exits generating significant capital gains. GAIN’s target investment mix of 75% debt and 25% equity provides potential for high returns through consistent current yield and capital appreciation at exit. $ in ‘000s Investment Exit Invested
Slide 9: Growing Portfolio and Investment Income
Growing Portfolio and Investment Income From 3/31/2016 to 3/31/2020, we have: • Made investments in 14 new companies, deploying new capital of approximately $310 million(1); • Exited 14 companies, returning approximately $180 million(1) of invested capital and realizing approximately $169 million of
Slide 10: Growing Portfolio and Investment Income (cont.)
Growing Portfolio and Investment Income (cont.) As of September 30, 2020, we had total investments at fair value of approximately $609 million. During the six months ended September 30, 2020, we: • Invested in one new company, deploying new capital of approximately $47 million;(1) • Generated a yiel
Slide 11: Strong and Growing Monthly and Supplemental Distributions
Strong and Growing Monthly and Supplemental Distributions • From inception through 9/30/20, GAIN has paid 183 consecutive monthly distributions to common shareholders • GAIN’s regular annual distribution run‐rate was increased to $0.84 per common share in January 2020 • In addition to regular distri
Slide 12: History of Driving High Shareholder Returns
History of Driving High Shareholder Returns Return on Equity Outperforming Industry Peers(1) Greater Total Return vs. BDC Peers(2) 300% 5 Year Total Return 35% 250% 101% 200% 30% 27% 150% +85% 25% 100% 16% 21% 50% 20% Sep‐15 Sep‐16 Sep‐17 Sep‐18 Sep‐19 Sep‐2 200% 14% 3 Year Total Return 15% 160% 22%
Slide 13: Financial Highlights
Financial Highlights Three Months Ended September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 S Total investment income $ 11,840 $ 10,707 $ 11,982 $ 15,996 Net investment income (loss) (NII/NIL) 4,368 4,173 14,766 6,158 (1) Adjusted net investment income 4,820 3,419 6,344 7,516 Realized
Slide 14: Financial Highlights (Non-GAAP Measure)
Financial Highlights (Non‐GAAP Measure) Three Months Ended September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 Amount Net investment income $ 4,368 $ 4,173 $ 14,766 $ 6,158 (+) Capital gains-based incentive fee 452 (754) (8,422) 1,358 Adjusted net investment income $ 4,820 $ 3,419 $ 6,
Slide 15: Portfolio is Broad and Diversified
Portfolio is Broad and Diversified Manufacturing Business Services/Distribution Consumer Products 14
Slide 16: Geographic Diversification
Geographic Diversification 15
Slide 17: Why own Gladstone Investment's Common Stock?
Why own Gladstone Investment’s Common Stock? • Annual yield of approximately 8.7% as of November 17, 2020 Consistent Monthly • Increased regular monthly distributions annual run‐rate by 12% since April 2015 to $0.84 per share as Distributions of September 30, 2020 • Supplemental distributions to be
Slide 18: Why own Gladstone Investment's Preferred Stock?
Why own Gladstone Investment’s Preferred Stock? • Preferred annual dividends ranging from 6.25% to 6.375% (depending upon series) are paid monthly High Monthly Distributions and generally compare favorably to current fixed yield investment alternatives • Strong coverage of the preferred dividends: A
Slide 19: Corporate Data
Corporate Data Key Executive Officers Research Coverage Websites David Gladstone Janney Montgomery Scott Gladstone Investment: Chairman & CEO Mitchel Penn www.gladstoneinvestment.com Terry Lee Brubaker Jefferies & Company Vice Chairman & COO Investment Adviser: Kyle Joseph David Dullum www.gladstone