Gladstone Capital Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Gladstone Capital Corp. filed its 10-Q report for the period ending March 31, 2024, detailing financial performance and investment activities.</b>

AI Summary

GLADSTONE CAPITAL CORP (GLAD) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Gladstone Capital Corp. reported its financial results for the period ending March 31, 2024. The company's fiscal year ends on September 30. The filing covers the period from October 1, 2023, to March 31, 2024. Key financial data points and investment details are included in the report. The filing was submitted on May 1, 2024.

Why It Matters

For investors and stakeholders tracking GLADSTONE CAPITAL CORP, this filing contains several important signals. This 10-Q filing provides investors with a quarterly update on Gladstone Capital Corp.'s financial health, investment portfolio, and operational performance, crucial for assessing the company's current standing and future prospects. Understanding the details within this report allows stakeholders to evaluate the company's investment strategies, risk exposure, and overall financial stability in the current market environment.

Risk Assessment

Risk Level: medium — GLADSTONE CAPITAL CORP shows moderate risk based on this filing. The company operates in the business development sector, which is sensitive to economic cycles and interest rate fluctuations, potentially impacting its investment income and portfolio value.

Analyst Insight

Investors should review the detailed investment portfolio and debt levels in the 10-Q to assess Gladstone Capital Corp.'s risk profile and income generation capabilities.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed Period of Report)
• 2024-05-01 — Filing Date (Filed as of date)
• 0930 — Fiscal Year End (Fiscal Year End)
• 88 — Public Document Count (Public Document Count)

Key Players & Entities

• GLADSTONE CAPITAL CORP (company) — Filer
• 2024-03-31 (date) — Conformed Period of Report
• 2024-05-01 (date) — Filed as of date
• MD (state) — State of Incorporation
• 0930 (date) — Fiscal Year End
• 1934 Act (regulation) — SEC Act
• 814-00237 (regulation) — SEC File Number
• 703-287-5800 (phone) — Business Phone

FAQ

Industry Context

Gladstone Capital Corp. is a business development company (BDC) that invests in debt and equity of small and medium-sized businesses. BDCs are subject to specific regulatory requirements and market conditions affecting middle-market lending.

Regulatory Implications

As a BDC, Gladstone Capital Corp. is regulated under the Investment Company Act of 1940. Filings like the 10-Q are mandated by the Securities Exchange Act of 1934 to ensure transparency for investors.

What Investors Should Do

1. Review the detailed breakdown of the investment portfolio, including types of investments and industry concentrations.
2. Analyze the company's debt structure and leverage ratios to understand its financial risk.
3. Examine any disclosed changes in management strategy or outlook for the upcoming quarters.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q report was officially filed with the SEC.
• 2024-09-30: Fiscal Year End — Marks the end of the company's annual fiscal year.

Year-Over-Year Comparison

This is the 10-Q filing for the period ending March 31, 2024, providing an update from previous filings which would have covered earlier periods.

Key Financial Figures

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

Filing Documents

• glad-20240331.htm (10-Q) — 3354KB
• exhibit108-keyamendment6.htm (EX-10.8) — 11KB
• glad-2024331x10qex311.htm (EX-31.1) — 8KB
• glad-2024331x10qex312.htm (EX-31.2) — 8KB
• glad-2024331x10qex321.htm (EX-32.1) — 4KB
• glad-2024331x10qex322.htm (EX-32.2) — 4KB
• glad-2024331x10qex991.htm (EX-99.1) — 2KB
• exhibit108-keyamendment6001.jpg (GRAPHIC) — 249KB
• exhibit108-keyamendment6002.jpg (GRAPHIC) — 206KB
• exhibit108-keyamendment6003.jpg (GRAPHIC) — 236KB
• exhibit108-keyamendment6004.jpg (GRAPHIC) — 64KB
• exhibit108-keyamendment6005.jpg (GRAPHIC) — 59KB
• exhibit108-keyamendment6006.jpg (GRAPHIC) — 56KB
• exhibit108-keyamendment6007.jpg (GRAPHIC) — 38KB
• 0001143513-24-000006.txt (&nbsp;) — 16562KB
• glad-20240331.xsd (EX-101.SCH) — 76KB
• glad-20240331_cal.xml (EX-101.CAL) — 73KB
• glad-20240331_def.xml (EX-101.DEF) — 486KB
• glad-20240331_lab.xml (EX-101.LAB) — 724KB
• glad-20240331_pre.xml (EX-101.PRE) — 572KB
• glad-20240331_htm.xml (XML) — 3536KB

Financial Statements (Unaudited)

Financial Statements (Unaudited) Consolidated Statements of Assets and Liabilities as of March 31 , 202 4 and September 30, 202 3 2 Consolidated Statements of Operations for the three and six months ended March 31, 202 4 and 202 3 3 Consolidated Statements of Changes in Net Assets for the six months ended March 31 , 202 4 and 202 3 4 Consolidated Statements of Cash Flows for the six months ended March 31 , 202 4 and 202 3 5 Consolidated Schedules of Investments as of March 31, 202 4 and September 30, 202 3 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 18 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 43 Overview 43 Results of Operations 47 Liquidity and Capital Resources 54 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61 Item 4.

Controls and Procedures

Controls and Procedures 62 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 63 Item 1A.

Risk Factors

Risk Factors 63 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 63 Item 3. Defaults Upon Senior Securities 63 Item 4. Mine Safety Disclosures 63 Item 5. Other Information 63 Item 6. Exhibits 63

SIGNATURES

SIGNATURES 66 1 Table of Contents

Financial information

Part I. Financial information

Financial Statements (Unaudited)

Item 1 Financial Statements (Unaudited) GLADSTONE CAPITAL CORPORATION CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) March 31, 2024 September 30, 2023 ASSETS Investments, at fair value: Non-Control/Non-Affiliate investments (Cost of $ 737,440 and $ 671,397 , respectively) $ 744,180 $ 663,544 Affiliate investments (Cost of $ 16,746 and $ 16,746 , respectively) 10,382 10,421 Control investments (Cost of $ 36,356 and $ 34,126 , respectively) 37,026 30,850 Cash and cash equivalents 5,284 1,306 Restricted cash and cash equivalents 128 95 Interest receivable, net 7,684 6,100 Due from administrative agent 2,640 2,936 Deferred financing costs, net 1,118 1,335 Other assets, net 3,612 2,911 TOTAL ASSETS $ 812,054 $ 719,498 LIABILITIES Line of credit at fair value (Cost of $ 117,200 and $ 47,800 , respectively) $ 117,200 $ 47,800 Notes payable, net of unamortized deferred financing costs of $ 3,385 and $ 3,886 , respectively 253,615 253,114 Accounts payable and accrued expenses 1,009 1,006 Interest payable 3,011 2,956 Fees due to Adviser (A) 3,906 3,872 Fee due to Administrator (A) 705 479 Other liabilities 241 1,576 TOTAL LIABILITIES $ 379,687 $ 310,803 Commitments and contingencies (B) Preferred Stock, $ 0.001 par value per share, 6,000,000 and 6,000,000 shares authorized, respectively, and 70,044 and 0 shares issued and outstanding, respectively $ 1,576 $ — NET ASSETS Common stock, $ 0.001 par value per share, 44,000,000 and 44,000,000 shares authorized, respectively, and 43,508,897 and 43,508,897 shares issued and outstanding, respectively $ 44 $ 44 Capital in excess of par value 481,478 481,480 Cumulative net unrealized appreciation (depreciation) of investments 1,046 ( 17,454 ) Under (over) distributed net investment income 5,694 4,741 Accumulated net realized losses ( 57,471 ) ( 60,116 ) Total distributable loss ( 50,731 ) ( 72,829 ) TOTAL NET ASSETS $

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View this 10-Q filing on SEC EDGAR