Gladstone Investment Corporation - Business Development Company · NASDAQ:GAIN
Gladstone Investment Corporation - Business Development — Gladstone Investment — Q2 2022 Earnings Presentation
19 slides from Gladstone Investment Corporation - Business Development's earnings presentation, Sep 30, 2021
Slide 1: Gladstone Investment Quarterly Overview
GLADSTONE INVESTMENT Quarterly Overview September 30, 2021
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 $461 million Publicly traded business • 2026 Notes listed on Nasdaq under the symbol “GAINN,” with an interest rate of 5.00% development company • 2028 Notes listed on Nasd
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 $40 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 $296 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 Invested Capital(1) Equit
Slide 9: Growing Portfolio and Consistent Investment Income
Growing Portfolio and Consistent Investment Income From 3/31/2017 to 3/31/2021, we have: • Made investments in 10 new companies, deploying new capital of approximately $288 million(1); • Exited 13 companies, returning approximately $154 million(1) of invested capital and realizing approximately $158
Slide 10: Growing Portfolio and Investment Income (cont.)
Growing Portfolio and Investment Income (cont.) As of September 30, 2021, we had total investments at fair value of approximately $737 million. During the six months ended September 30, 2021, we: • Invested in two new portfolio companies, deploying new capital of approximately $34 million;(1) • Gene
Slide 11: Strong and Growing Monthly and Supplemental Distributions
Strong and Growing Monthly and Supplemental Distributions • From inception through 9/30/21, GAIN has paid 195 consecutive monthly distributions to common shareholders • GAIN’s regular annual distribution run‐rate was increased to $0.90 per common share in October 2021 • 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) 35% 270% 5 Year Total Return 136% 230% 190% 30% +145% 28% 150% 110% (9)% 25% 23% 70% 30% 20% Sep‐16 Sep‐17 Sep‐18 Sep‐19 Sep‐20 Sep‐21 210% 180% 3 Year Total Return 15%
Slide 13: Financial Highlights
Financial Highlights Three Months Ended September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 Total investment income $ 18,538 $ 18,026 $ 16,708 $ 17,372 Net investment income (loss) (NII/NIL) 2,165 (2,304) 3,142 6,255 Adjusted net investment income(1) 7,759 8,006 6,722 8,009 Realized ga
Slide 14: Financial Highlights (Non-GAAP Measure)
Financial Highlights (Non‐GAAP Measure) Three Months Ended September 30, 2021 June 30, 2021 March 31, 2021 December 31, 2020 Amount Net investment income $ 2,165 $ (2,304) $ 3,142 $ 6,255 (+) Capital gains-based incentive fee 5,594 10,310 3,580 1,754 Adjusted net investment income $ 7,759 $ 8,006 $
Slide 15: Portfolio is Broad and Diversified
Portfolio is Broad and Diversified Manufacturing Business/Consumer Services 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 5.4% as of November 18, 2021 Consistent Monthly • Increased regular monthly distributions annual run‐rate by 20% since April 2016 to $0.90 per share as Distributions of November 18, 2021 • Supplemental distributions to be m
Slide 18: Why own Gladstone Investment's Registered Notes?
Why own Gladstone Investment’s Registered Notes? • Annual interest rate ranging from 4.875% to 5% depending on the series with interest paid quarterly Strong Quarterly Interest • Strong coverage of interest: Adjusted NII(1) before interest expense for the twelve months ended Strong Interest Coverage
Slide 19: Corporate Data
Corporate Data Key Executive Officers Research Coverage Websites David Gladstone Oppenheimer & Co. Gladstone Investment: Chairman & CEO Mitchel Penn www.gladstoneinvestment.com Terry Lee Brubaker Jefferies & Company Vice Chairman & COO Investment Adviser: Kyle Joseph David Dullum www.gladstonemanage