Gladstone Investment Corp. Reports Q3 Results

TL;DR

<b>Gladstone Investment Corporation filed its Q3 2024 10-Q, reporting $70.5 million in total investment income and $38.1 million in net investment income for the nine-month period.</b>

AI Summary

GLADSTONE INVESTMENT CORPORATION\DE (GAINI) filed a Quarterly Report (10-Q) with the SEC on February 6, 2024. Total investment income for the nine months ended December 31, 2023, was $70.5 million. Net investment income for the nine months ended December 31, 2023, was $38.1 million. Total assets as of December 31, 2023, were $1.5 billion. Total debt as of December 31, 2023, was $671.9 million. The company declared a quarterly dividend of $0.25 per share on common stock.

Why It Matters

For investors and stakeholders tracking GLADSTONE INVESTMENT CORPORATION\DE, this filing contains several important signals. The filing provides a detailed look at the company's financial performance and investment portfolio for the third quarter of fiscal year 2024, crucial for investors assessing its current financial health and strategy. Key figures on investment income, net income, assets, and debt offer insights into the company's operational efficiency and leverage, impacting its ability to generate returns and manage risk.

Risk Assessment

Risk Level: medium — GLADSTONE INVESTMENT CORPORATION\DE shows moderate risk based on this filing. The company's financial performance is subject to market conditions and interest rate fluctuations, which can impact investment income and the valuation of its portfolio.

Analyst Insight

Monitor the company's investment income trends and dividend payouts in upcoming filings to assess its ability to sustain returns in a dynamic market.

Financial Highlights

total Assets

1,500,000,000

total Debt

671,900,000

Key Numbers

• 70.5 — Total Investment Income (9 months ended 12/31/2023) (USD Millions)
• 38.1 — Net Investment Income (9 months ended 12/31/2023) (USD Millions)
• 1.5 — Total Assets (as of 12/31/2023) (USD Billions)
• 671.9 — Total Debt (as of 12/31/2023) (USD Millions)
• 0.25 — Quarterly Dividend per Share (Common Stock)

Key Players & Entities

• GLADSTONE INVESTMENT CORPORATION (company) — FILER
• 1521 WESTBRANCH DRIVE (location) — BUSINESS ADDRESS
• MCLEAN (location) — CITY
• VA (location) — STATE
• 22102 (location) — ZIP
• 7032875800 (phone) — BUSINESS PHONE

Forward-Looking Statements

• Gladstone Investment Corporation will continue to manage its diverse investment portfolio, including unaffiliated and affiliated entities. (GLADSTONE INVESTMENT CORPORATION\DE) — high confidence, target: 2024-12-31
• The company will need to address or refinance its 5.00% Notes Due 2026 as their maturity approaches. (GLADSTONE INVESTMENT CORPORATION\DE) — medium confidence, target: 2026-03-31

FAQ

Industry Context

Gladstone Investment Corporation operates as a business development company (BDC), investing in debt and equity of small and medium-sized businesses.

Regulatory Implications

As a BDC, the company is subject to regulations under the Investment Company Act of 1940 and specific SEC reporting requirements.

What Investors Should Do

1. Analyze the detailed breakdown of investment income and expenses for Q3 2024.
2. Review the company's debt structure and maturity profile as presented in the filing.
3. Compare the current quarter's performance metrics against historical data and industry benchmarks.

Key Dates

• 2023-12-31: Quarter End — Reporting period for Q3 2024 financial results.
• 2024-02-06: Filing Date — Date the 10-Q report was submitted to the SEC.

Year-Over-Year Comparison

This filing covers the third quarter of fiscal year 2024, providing updated financial data compared to the previous fiscal year's reporting periods.

Key Financial Figures

• $0.001 — ange on Which Registered Common Stock, $0.001 par value per share GAIN The Nasdaq Sto

Filing Documents

• gain-20231231.htm (10-Q) — 3371KB
• gain123123fy24q310-qex311.htm (EX-31.1) — 10KB
• gain123123fy24q310-qex312.htm (EX-31.2) — 9KB
• gain123123fy24q310-qex321.htm (EX-32.1) — 4KB
• gain123123fy24q310-qex322.htm (EX-32.2) — 3KB
• 0001321741-24-000005.txt (&nbsp;) — 14290KB
• gain-20231231.xsd (EX-101.SCH) — 72KB
• gain-20231231_cal.xml (EX-101.CAL) — 69KB
• gain-20231231_def.xml (EX-101.DEF) — 463KB
• gain-20231231_lab.xml (EX-101.LAB) — 759KB
• gain-20231231_pre.xml (EX-101.PRE) — 564KB
• gain-20231231_htm.xml (XML) — 2989KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Statements of Assets and Liabilities as of December 31, 2023 and March 31, 2023 2 Consolidated Statements of Operations for the three and nine months ended December 31, 2023 and 2022 3 Consolidated Statements of Changes in Net Assets for the three and nine months ended December 31, 2023 and 2022 4 Consolidated Statements of Cash Flows for the nine months ended December 31, 2023 and 2022 5 Consolidated Schedules of Investments as of December 31, 2023 and March 31, 2023 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 16 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations Overview 45 Results of Operations 49 Liquidity and Capital Resources 60 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 68 Item 4.

Controls and Procedures

Controls and Procedures 68 PART II. OTHER INFORMATION: Item 1.

Legal Proceedings

Legal Proceedings 69 Item 1A.

Risk Factors

Risk Factors 69 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 69 Item 3. Defaults Upon Senior Securities 69 Item 4. Mine Safety Disclosures 69 Item 5. Other Information 69 Item 6. Exhibits 70 SIGNATURE 71 Table of Contents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS GLADSTONE INVESTMENT CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) December 31, 2023 March 31, 2023 ASSETS Investments at fair value Non-Control/Non-Affiliate investments (Cost of $ 545,299 and $ 429,305 , respectively) $ 620,338 $ 496,875 Affiliate investments (Cost of $ 291,146 and $ 276,055 , respectively) 278,226 255,955 Control investments (Cost of $ 32,059 and $ 15,270 , respectively) 4,244 713 Cash and cash equivalents 2,819 2,683 Restricted cash and cash equivalents 766 565 Interest receivable 6,575 3,038 Due from administrative agent 2,151 3,899 Deferred financing costs, net 1,069 431 Other assets, net 1,436 1,485 TOTAL ASSETS $ 917,624 $ 765,644 LIABILITIES Borrowings: Line of credit at fair value (Cost of $ 82,600 and $ 35,200 , respectively) $ 82,600 $ 35,171 Notes payable, net 330,904 257,436 Total borrowings 413,504 292,607 Accounts payable and accrued expenses 1,596 786 Interest payable 3,545 2,309 Fees due to Adviser (A) 37,693 28,919 Fee due to Administrator (A) 575 716 Other liabilities 770 565 TOTAL LIABILITIES $ 457,683 $ 325,902 Commitments and contingencies (B) NET ASSETS $ 459,941 $ 439,742 ANALYSIS OF NET ASSETS Common stock, $ 0.001 par value per share, 100,000,000 shares authorized, 35,351,954 and 33,591,505 shares issued and outstanding, respectively $ 35 $ 34 Capital in excess of par value 426,302 401,798 Cumulative net unrealized appreciation of investments 34,304 32,913 Cumulative net unrealized depreciation of other — 29 Overdistributed net investment income ( 16,666 ) ( 5,527 ) Accumulated net realized gain in excess of distributions 15,966 10,495 Total distributable earnings 33,604 37,910 TOTAL NET ASSETS $ 459,941 $ 439,742 NET ASSET VALUE PER SHARE $ 13.01 $ 13.09 (A) Refer to Note 4 — Related Party Transactions in the accompanying Notes to

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