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Gladstone Capital Corporation Has Tough Q1/16

|Includes: Gladstone Capital (GLAD)

GLAD Reports NII of $0.2100 compared to a Div of $0.21/quarter
What They Earned Gladstone Capital Corp. reported for Q1-16 ending 3-31-16 (or what GLAD calls its 2nd quarter) Total Investment Income of $9.456 million, or $0.4039/share. Net Investment Income was $4.917 million or $0.2100/share. The NII/TII ratio was 52%. Net Increase in Net Assets Resulting from Operations was - $6.139 million, or - $0.2622/share. Net asset value was $7.92/share compared to $8.38 last quarter - a fall of 5.5%.

The analyst consensus numbers from Yahoo Finance:

Earnings Est Current Qtr.
Mar 16
Next Qtr.
Jun 16
Current Year
Sep 16
Next Year
Sep 17
Avg. Estimate 0.21 0.21 0.84 0.84
No. of Analysts 2.00 2.00 2.00 2.00
Low Estimate 0.21 0.21 0.84 0.84
High Estimate 0.21 0.21 0.84 0.84
Year Ago EPS 0.18 0.23 0.84 0.84
Revenue Est Current Qtr.
Mar 16
Next Qtr.
Jun 16
Current Year
Sep 16
Next Year
Sep 17
Avg. Estimate 10.05M 10.40M 41.30M 45.56M
No. of Analysts 2 2 2 2
Low Estimate 9.57M 9.93M 39.85M 43.13M
High Estimate 10.52M 10.87M 42.75M 47.99M
Year Ago Sales 9.22M 9.94M 38.06M 41.30M

My historical context spreadsheets:

  Q1-16 Q4-15 Q3-15 Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13 Q3-13 Q2-13 Q1-13
Realized & Unrealized Gains -11.056 -13.463 -10.176 -1.529 5.849 -3.360 18.549 -25.238 -6.587 6.096 23.968 -6.469 -9.966
Realized & Unrealized Gains/share -$0.4722 -$0.5934 -$0.4846 -$0.0728 $0.2785 $0.1600 $0.8854 -$1.2018 -$0.3137 $0.2903 $1.1413 -$0.3080 -$0.4746

  Q1-16 Q4-15 Q3-15 Q2-15 Q1-15 Q4-14 Q3-14 Q2-14 Q1-14 Q4-13
Total investment income 9.456 10.060 10.174 9.935 9.223 8.726 8.682 10.180 9.331 8.392
Net investment income 4.917 4.759 5.480 4.836 3.693 3.691 4.410 5.063 4.485 4.410
Investments @ fair value 0.293 0.300 0.366 0.347 0.364 0.327 0.281 0.265 0.293 0.283
Wt Av Share Count 23.413 22.687 21.000 21.000 21.000 21.000 21.000 21.000 21.000 21.000
TII/share $0.4039 $0.4434 $0.4845 $0.4731 $0.4392 $0.4155 $0.4134 $0.4848 $0.4443 $0.3996
NII/share $0.2100 $0.2098 $0.2609 $0.2303 $0.1759 $0.1758 $0.2100 $0.2411 $0.2136 $0.2100
NAV/share $7.92 $8.38 $9.06 $9.49 $9.55 $9.31 $9.51 $8.62 $9.79 $10.10
Wt Av Yield 11.2% 11.3% 11.3% 11.2% 11.3% 11.5% 11.6% 11.5% 11.6% 11.6%

On 4-29-16 GLAD at $7.64 sold at a yield of 10.99%. A BDC with poor dividend coverage and a falling NAV should not sell at a yield that is lower than its portfolio weighted average yield.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.