Gladstone Capital Corporation Has Tough Q1/16
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.
Analyst's Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.