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8-K - FORM 8-K - APOLLO INVESTMENT CORP | d357699d8k.htm |
Exhibit 99.1
Apollo Investment Corporation
Reports Financial Results for Quarter and Year Ended March 31, 2012
Recent Highlights:
| Net investment income per share for the quarter ended March 31, 2012 was $0.21 compared to $0.20 for the quarter ended December 31, 2011 |
| Net asset value per share at March 31, 2012 was $8.55 compared to $8.16 at December 31, 2011, a 5% increase |
| Declared a dividend of $0.20 per share for the first fiscal quarter of 2013 |
| Entered new four year $1.14 billion senior secured revolving credit facility with stated interest rate of LIBOR plus 225 basis points in May 2012 |
| Invested $40.4 million in equity in a newly launched Madison Capital Funding senior loan vehicle in April 2012 |
| Apollo Global Management purchased $50 million of Apollo Investment Corporation common stock at net asset value in April 2012 |
| New Houston energy team made first two investments subsequent to quarter end |
New York, NY May 23, 2012 Apollo Investment Corporation (NASDAQ: AINV) or the Company, Apollo Investment, we or our today announced financial results for its fourth fiscal quarter and year ended March 31, 2012. The Companys net investment income was $0.21 per share for the quarter ended March 31, 2012 and net asset value (NAV) was $8.55 per share as of March 31, 2012.
Additionally, the Company also announced that its Board of Directors has declared a dividend of $0.20 per share for the first fiscal quarter of 2013, payable on July 5, 2012 to stockholders of record as of June 14, 2012. The specific tax characteristics of this dividend will be reported to stockholders on Form 1099 after the end of the calendar year.
On April 2, 2012, a subsidiary of Apollo Global Management, LLC purchased $50 million or 5,847,953 of newly issued shares, of Apollo Investments common stock at NAV as of March 31, 2012. The Companys Investment Advisor, Apollo Investment Management, L.P. is waiving the base management and incentive fees associated with this equity capital for a one year period.
Mr. James Zelter, Apollo Investment Corporations Chief Executive Officer, said, During our fourth fiscal quarter, we continued to reposition our investment portfolio and diversify into additional investment strategies. We methodically sold select investments, reduced leverage and redeployed capital into other strategies which we believe have more attractive risk adjusted
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returns. As we look ahead, we will continue to rotate out of some of our subordinated debt investments and expand our investment footprint to provide a wider array of proprietary private financing solutions to be better aligned with the current lending landscape.
FINANCIAL HIGHLIGHTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2012:
Select Balance Sheet Data and Other Data |
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At 3/31/12 | At 3/31/11 | |||||||
Total assets |
$ | 2.78 billion | $ | 3.15 billion | ||||
Investment portfolio |
$ | 2.68 billion | $ | 3.05 billion | ||||
Net assets |
$ | 1.69 billion | $ | 1.96 billion | ||||
Net asset value per share |
$ | 8.55 | $ | 10.03 | ||||
Number of portfolio companies |
62 | 69 |
Portfolio Activity |
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For the quarter ended 3/31/12 |
For the year ended 3/31/12 |
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Investments made during the period |
$ | 147.0 million | $ | 1.48 billion | ||||
Number of new portfolio companies invested |
4 | 21 | ||||||
Investments sold or prepaid |
$ | 339.7 million | $ | 1.63 billion | ||||
Number of portfolio company exits |
9 | 28 |
Operating Results (in thousands, except per share) |
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For the quarter ended 3/31/12 |
For the year ended 3/31/12 |
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Net investment income |
$ | 41,010 | $ | 172,742 | ||||
Net realized and unrealized gains (losses) |
$ | 76,223 | $ | (259,006 | ) | |||
Net increase (decrease) in net assets from operations |
$ | 117,233 | $ | (86,264 | ) | |||
Net investment income per share |
$ | 0.21 | $ | 0.88 | ||||
Net realized and unrealized gain (loss) per share |
$ | 0.39 | $ | (1.32 | ) | |||
Earnings (loss) per share basic |
$ | 0.60 | $ | (0.44 | ) | |||
Earnings (loss) per share diluted |
$ | 0.57 | $ | (0.44 | )* |
* | In applying the if-converted method, conversion shall not be assumed for purposes of computing diluted EPS if the effect would be anti-dilutive. For the fiscal year ended March 31, 2012, anti-dilution would total $0.08. |
CONFERENCE CALL / WEBCAST AT 10:00 AM EDT ON MAY 23, 2012
The Company will host a conference call on Wednesday, May 23, 2012 at 10:00 a.m. Eastern Time. All interested parties are welcome to participate in the conference call by dialing (888) 802-8579 approximately 5-10 minutes prior to the call; international callers should dial (973) 633-6740. Participants should reference Apollo Investment Corporation or Conference ID # 75904920 when prompted. A simultaneous webcast of the conference call will be available to the public on a listen-only basis and can be accessed through the Event Calendar in the Investor Relations section of our website at www.apolloic.com. Following the call you may access a replay of the event either telephonically or via audio webcast. The telephonic replay will be available approximately two hours after the live call and through June 6, 2012 by dialing (800)
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585-8367; international callers please dial (404) 537-3406, reference Conference ID # 75904920. A replay of the audio webcast will also be available later that same day. To access the audio webcast please visit the Event Calendar in the Investor Relations section of our website at www.apolloic.com.
SUPPLEMENTAL INFORMATION
The Company provides a supplemental information package to offer more transparency into its financial results and make its reporting more informative and easier to follow. The supplemental package is available in the investor relations section of the Companys website at www.apolloic.com.
PORTFOLIO AND INVESTMENT ACTIVITY
During our fiscal year ended March 31, 2012, we invested $1.5 billion across 21 new and 18 existing portfolio companies through a combination of primary and secondary market purchases. This compares to investing $1.1 billion in 21 new and 18 existing portfolio companies for the previous fiscal year ended March 31, 2011. Investments sold or prepaid during the fiscal year ended March 31, 2012 totaled $1.6 billion versus $977 million for the fiscal year ended March 31, 2011.
During the three months ended March 31, 2012, we invested $147 million across 4 new and 7 existing portfolio companies through a combination of primary and secondary market purchases. This compares to investing $298 million in 8 new and 11 existing portfolio companies for the three months ended March 31, 2011. Investments sold or prepaid during the three months ended March 31, 2012 totaled $340 million versus $255 million for the three months ended March 31, 2011.
At March 31, 2012, our net portfolio consisted of 62 portfolio companies and was invested 30% in senior secured loans, 60% in subordinated debt, 1% in preferred equity and 9% in common equity and warrants measured at fair value versus 69 portfolio companies invested 33% in senior secured loans, 58% in subordinated debt, 1% in preferred equity and 8% in common equity and warrants at March 31, 2011.
The weighted average yields on our senior secured loan portfolio, subordinated debt portfolio and total debt portfolio as of March 31, 2012 at our current cost basis were 10.2%, 12.7% and 11.9%, respectively. At March 31, 2011, the yields were 9.0%, 13.1%, and 11.6%, respectively.
Since the initial public offering of Apollo Investment in April 2004, and through March 31, 2012, invested capital totaled $8.8 billion in 166 portfolio companies. Over the same period, Apollo Investment completed transactions with more than 100 different financial sponsors.
At March 31, 2012, 67% or $1.6 billion of our income-bearing investment portfolio is fixed rate debt and 33% or $0.8 billion is floating rate debt, measured at fair value. On a cost basis, 65% or $1.7 billion of our income-bearing investment portfolio is fixed rate debt and 35% or $0.9 billion is floating rate debt. At March 31, 2011, 59% or $1.7 billion of our income-bearing investment portfolio was fixed rate debt and 41% or $1.2 billion was floating rate debt. On a cost basis, 60% or $1.7 billion of our income-bearing investment portfolio is fixed rate debt and 40% or $1.1 billion is floating rate debt.
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APOLLO INVESTMENT CORPORATION
STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share amounts)
March 31, 2012 | March 31, 2011 | |||||||
Assets |
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Non-controlled/non-affiliated investments, at value (cost$2,642,702 and $2,900,378, respectively) |
$ | 2,490,672 | $ | 2,901,295 | ||||
Non-controlled/affiliated investments, at value (cost$0 and $22,407, respectively) |
| 37,295 | ||||||
Controlled investments, at value (cost$208,882 and $376,051, respectively) |
186,408 | 111,568 | ||||||
Cash |
1,665 | 5,471 | ||||||
Foreign currency (cost$1,013 and $881, respectively) |
1,013 | 883 | ||||||
Receivable for investments sold |
19,606 | 13,461 | ||||||
Interest receivable |
54,409 | 45,686 | ||||||
Dividends receivable |
2,898 | 5,131 | ||||||
Miscellaneous income receivable |
1,150 | | ||||||
Receivable from investment adviser |
| 576 | ||||||
Prepaid expenses and other assets |
17,442 | 27,447 | ||||||
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Total assets |
$ | 2,775,263 | $ | 3,148,813 | ||||
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Liabilities |
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Debt |
$ | 1,009,337 | $ | 1,053,443 | ||||
Payable for investments and cash equivalents purchased |
| 37,382 | ||||||
Dividends payable |
39,409 | 54,740 | ||||||
Management and performance-based incentive fees payable |
24,402 | 27,553 | ||||||
Interest payable |
10,102 | 9,703 | ||||||
Accrued administrative expenses |
3,420 | 1,738 | ||||||
Other liabilities and accrued expenses |
3,362 | 3,223 | ||||||
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Total liabilities |
$ | 1,090,032 | $ | 1,187,782 | ||||
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Net Assets |
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Common stock, par value $.001 per share, 400,000 and 400,000 common shares authorized, respectively, and 197,043 and 195,502 issued and outstanding, respectively |
$ | 197 | $ | 196 | ||||
Paid-in capital in excess of par |
2,886,327 | 2,871,559 | ||||||
Undistributed (over-distributed) net investment income |
(34,896 | ) | 56,557 | |||||
Accumulated net realized loss |
(995,426 | ) | (713,873 | ) | ||||
Net unrealized depreciation |
(170,971 | ) | (253,408 | ) | ||||
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Total net assets |
$ | 1,685,231 | $ | 1,961,031 | ||||
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Total liabilities and net assets |
$ | 2,775,263 | $ | 3,148,813 | ||||
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Net Asset Value Per Share |
$ | 8.55 | $ | 10.03 | ||||
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APOLLO INVESTMENT CORPORATION
STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
Year Ended March 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
INVESTMENT INCOME: |
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From non-controlled/non-affiliated investments: |
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Interest |
$ | 313,992 | $ | 316,183 | $ | 297,123 | ||||||
Dividends |
6,998 | 4,713 | 11,450 | |||||||||
Other income |
18,505 | 15,143 | 10,003 | |||||||||
From non-controlled/affiliated investments: |
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Interest |
899 | 10,296 | 1,002 | |||||||||
From controlled investments: |
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Interest |
3,746 | | | |||||||||
Dividends |
13,444 | 12,334 | 20,660 | |||||||||
Other income |
| 110 | | |||||||||
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Total Investment Income |
357,584 | 358,779 | 340,238 | |||||||||
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EXPENSES: |
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Management fees |
$ | 60,321 | $ | 59,831 | $ | 54,069 | ||||||
Performance-based incentive fees |
39,651 | 47,793 | 49,853 | |||||||||
Interest and other debt expenses |
66,360 | 48,025 | 24,480 | |||||||||
Administrative services expense |
5,387 | 5,529 | 4,725 | |||||||||
Insurance expense |
838 | 927 | 1,100 | |||||||||
Other general and administrative expenses |
12,285 | 5,502 | 5,383 | |||||||||
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Total expenses |
184,842 | 167,607 | 139,610 | |||||||||
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Net investment income before excise taxes |
172,742 | 191,172 | 200,628 | |||||||||
Excise tax expense |
| | (1,218 | ) | ||||||||
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Net investment income |
$ | 172,742 | $ | 191,172 | $ | 199,410 | ||||||
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, CASH EQUIVALENTS AND FOREIGN CURRENCIES: |
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Net realized gain (loss): |
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Investments and cash equivalents |
$ | (340,915 | ) | $ | (144,350 | ) | $ | (467,275 | ) | |||
Foreign currencies |
(528 | ) | (7,667 | ) | (5,752 | ) | ||||||
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Net realized loss |
(341,443 | ) | (152,017 | ) | (473,027 | ) | ||||||
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Net change in unrealized gain (loss): |
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Investments and cash equivalents |
74,233 | 140,227 | 548,530 | |||||||||
Foreign currencies |
8,204 | 1,030 | (11,623 | ) | ||||||||
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Net change in unrealized gain (loss) |
82,437 | 141,257 | 536,907 | |||||||||
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Net realized and unrealized gain (loss) from investments, cash equivalents and foreign currencies |
(259,006 | ) | (10,760 | ) | 63,880 | |||||||
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NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS |
$ | (86,264 | ) | $ | 180,412 | $ | 263,290 | |||||
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EARNINGS (LOSS) PER SHARE BASIC AND DILUTED |
$ | (0.44 | ) | $ | 0.93 | $ | 1.65 |
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APOLLO INVESTMENT CORPORATION
STATEMENTS OF OPERATIONS (unaudited)
(in thousands, except per share amounts)
Three months ended | ||||||||
March 31, 2012 | March 31, 2011 | |||||||
INVESTMENT INCOME: |
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From non-controlled/non-affiliated investments: |
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Interest |
$ | 75,728 | $ | 83,018 | ||||
Dividends |
1,588 | 1,001 | ||||||
Other income |
1,744 | 3,185 | ||||||
From non-controlled/affiliated investments: |
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Interest |
| 1,208 | ||||||
From controlled investments: |
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Interest |
1,181 | | ||||||
Dividends |
4,955 | 6,303 | ||||||
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Total Investment Income |
85,196 | 94,715 | ||||||
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EXPENSES: |
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Management fees |
$ | 14,150 | $ | 15,044 | ||||
Performance-based incentive fees |
10,253 | 12,509 | ||||||
Interest and other debt expenses |
16,138 | 13,946 | ||||||
Administrative services expense |
1,500 | 1,181 | ||||||
Insurance expense |
838 | 927 | ||||||
Other general and administrative expenses |
1,307 | 1,070 | ||||||
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Total expenses |
44,186 | 44,677 | ||||||
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Net investment income |
$ | 41,010 | $ | 50,038 | ||||
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REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS, CASH EQUIVALENTS AND FOREIGN CURRENCIES: |
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Net realized gain (loss): |
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Investments and cash equivalents |
$ | (294 | ) | $ | (1,573 | ) | ||
Foreign currencies |
(21 | ) | 6 | |||||
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Net realized loss |
(315 | ) | (1,567 | ) | ||||
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Net change in unrealized gain (loss): |
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Investments and cash equivalents |
81,697 | 69,087 | ||||||
Foreign currencies |
(5,159 | ) | (5,506 | ) | ||||
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Net change in unrealized gain |
76,538 | 63,581 | ||||||
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Net realized and unrealized gain from investments, cash equivalents and foreign currencies |
76,223 | 62,014 | ||||||
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NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
$ | 117,233 | $ | 112,052 | ||||
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EARNINGS PER SHARE BASIC |
$ | 0.60 | $ | 0.57 | ||||
EARNINGS PER SHARE DILUTED |
$ | 0.57 | $ | 0.55 |
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About Apollo Investment Corporation
Apollo Investment Corporation (NASDAQ: AINV) is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company provides private debt market solutions to middle market companies in the form of senior secured, mezzanine and asset based loans and may also acquire equity interests. The Company seeks to provide private financing solutions for private companies that do not have access to the more traditional providers of credit. Apollo Investment Corporation is managed by Apollo Investment Management, L.P., an affiliate of Apollo Global Management, LLC, a leading global alternative investment manager. For more information, please visit http://www.apolloic.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties, including, but not limited to, statements as to our future operating results; our business prospects and the prospects of our portfolio companies; the impact of investments that we expect to make; the dependence of our future success on the general economy and its impact on the industries in which we invest; the ability of our portfolio companies to achieve their objectives; our expected financings and investments; the adequacy of our cash resources and working capital; and the timing of cash flows, if any, from the operations of our portfolio companies.
We may use words such as anticipates, believes, expects, intends, will, should, may and similar expressions to identify forward-looking statements. Such statements are based on currently available operating, financial and competitive information and are subject to various risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations. Undue reliance should not be placed on such forward-looking statements as such statements speak only as of the date on which they are made. We do not undertake to update our forward-looking statements unless required by law.
Contact
Elizabeth Besen
Investor Relations Manager
Apollo Investment Corporation
(212) 822-0625
ebesen@apolloic.com
SOURCE: Apollo Investment Corporation
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