Welcome!

.NET Authors: Trevor Parsons, Peter Silva, Yeshim Deniz, Pat Romanski, Adine Deford

News Feed Item

Apollo Investment Corporation Reports Financial Results for Quarter Ended December 31, 2012

NEW YORK, NY -- (Marketwire) -- 02/06/13 -- Apollo Investment Corporation (NASDAQ: AINV)

Recent Highlights:

  • Net investment income per share for the quarter ended December 31, 2012 was $0.21, compared to $0.22 for the quarter ended September 30, 2012

  • Net asset value per share at December 31, 2012 was $8.14 compared to $8.46 at September 30, 2012

  • Declared a dividend of $0.20 per share for the fourth fiscal quarter of 2013

  • Invested $515 million during the quarter ended December 31, 2012, representing the third highest quarterly level of new investment activity since inception driven by strong primary originations

  • Net investment activity before repayments was $208 million for the quarter ended December 31, 2012

  • Invested $41.1 million into second Madison Capital Funding senior loan vehicle in October

  • Aircraft operating subsidiary made first investment subsequent to quarter-end

Apollo Investment Corporation (NASDAQ: AINV) or the "Company," or "Apollo Investment," today announced financial results for its third fiscal quarter ended December 31, 2012. The Company's net investment income was $0.21 per share for the quarter ended December 31, 2012 compared to $0.22 for the quarter ended September 30, 2012. The Company's net asset value ("NAV") was $8.14 per share as of December 31, 2012 down from $8.46 at September 30, 2012. The decline in NAV was driven primarily by losses on two investments partially offset by appreciation on the remainder of the portfolio.

Additionally, the Company also announced that its Board of Directors has declared a dividend of $0.20 per share for the fourth fiscal quarter of 2013, payable on April 4, 2013 to stockholders of record as of March 21, 2013. The specific tax characteristics of this dividend will be reported to stockholders on Form 1099 after the end of the calendar year.

Mr. James Zelter, Apollo Investment Corporation's Chief Executive Officer, said, "We had our third highest origination quarter and we continued to sell select investments given the strength in the credit markets in the December quarter. Since we announced a variety of strategic initiatives one year ago, we believe we have made great strides in accomplishing many of our objectives including the migration of our portfolio to a greater amount of secured debt, renewing our credit facility on favorable terms, diversifying our funding sources with the issuance of unsecured debt, and expanding our specialist sourcing capabilities. Looking ahead, we will continue to focus on diversifying into additional investment strategies with attractive risk adjusted returns."

FINANCIAL HIGHLIGHTS FOR THE QUARTER ENDED DECEMBER 31, 2012


Select Balance Sheet Data and Other Data
----------------------------------------------------------------------------
                                     December 31, 2012      March 31, 2012
                                    -------------------  -------------------
Total assets                              $2.78 billion        $2.78 billion
Investment portfolio                      $2.63 billion        $2.68 billion
Net assets                                $1.65 billion        $1.69 billion
Net asset value per share                         $8.14                $8.55
Number of portfolio companies                        71                   62


Portfolio Activity
----------------------------------------------------------------------------
                              Three months ended        Nine months ended
                               December 31, 2012        December 31, 2012
                            -----------------------  -----------------------
Investments made during the
 period                             $   515 million          $ 1,109 million
Number of new portfolio
 companies invested                              16                       38

Investments sold                    $ (307) million          $ (619) million
                                   ----------------         ----------------
Net activity before repaid
 investments                        $   208 million          $   490 million

Investments repaid                  $ (204) million          $ (490) million
                                   ----------------         ----------------
Net investment activity             $     4 million          $             0

Number of portfolio company
 exits                                           14                       29


Operating Results
---------------------------------------------------------------------------
                                 Three months ended     Nine months ended
                                  December 31, 2012     December 31, 2012*
                                --------------------  ---------------------
Net investment income (in
 thousands)                            $      42,080          $     126,364
Net investment income per share        $        0.21          $        0.63
Net realized and unrealized loss
 per share                             $       (0.32)         $       (0.43)
Earnings (loss) per share -
 basic                                 $       (0.11)         $        0.20
Earnings (loss) per share -
 diluted                               $       (0.11)         $        0.20

* Exclusive of non-recurring expenses related to refinancing of revolving credit facility. During the June 2012 quarter, the company recognized net $1.1 million in non-recurring expenses relating to the refinancing of its revolving credit facility.

CONFERENCE CALL / WEBCAST AT 10:00 AM EST ON FEBRUARY 6, 2013

The Company will host a conference call on Wednesday, February 6, 2013 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 # 85998517 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 February 20, 2013 by dialing (800) 585-8367; international callers please dial (404) 537-3406, reference Conference ID # 85998517. 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 Company's website at www.apolloic.com.

PORTFOLIO AND INVESTMENT ACTIVITY

During the three months ended December 31, 2012, we invested $515 million across 16 new and 13 existing portfolio companies, through a combination of primary and secondary market purchases. This compares to investing $95 million in 3 new and 6 existing portfolio companies for the three months ended December 31, 2011. Investments sold or repaid during the three months ended December 31, 2012 totaled $511 million versus $175 million for the three months ended December 31, 2011.

At December 31, 2012, our portfolio consisted of 71 portfolio companies and was invested 40% in secured loans, 48% in subordinated debt, 0% in preferred equity, 12% in common equity and warrants(1), measured at fair value, versus 62 portfolio companies invested 30% in secured loans, 60% in subordinated debt, 1% in preferred equity, and 9% in common equity and warrants(1), measured at fair value at March 31, 2012.

The weighted average yields on our secured loan portfolio, subordinated debt portfolio and total debt portfolio as of December 31, 2012 at our current cost basis were 11.2%, 12.6% and 11.9%, respectively, exclusive of securities on non-accrual status. At December 31, 2011, the yields were 9.7%, 12.6% and 11.7%, respectively, exclusive of securities on non-accrual status.

Since the initial public offering of Apollo Investment in April 2004, and through December 31, 2012, invested capital totaled $9.9 billion in 204 portfolio companies. Over the same period, Apollo Investment completed transactions with more than 100 different financial sponsors.

At December 31, 2012, 61% or $1.4 billion of our income-bearing investment portfolio is fixed rate and 39% or $0.9 billion was floating rate, measured at fair value. On a cost basis, 61% or $1.5 billion of our income-bearing investment portfolio is fixed rate and 39% or $1.0 billion is floating rate. At March 31, 2012, 67% or $1.6 billion of our income-bearing investment portfolio was fixed rate and 33% or $0.8 billion is floating rate, measured at fair value. On a cost basis, 65% or $1.7 billion of our income-bearing investment portfolio was fixed rate and 35% or $0.9 billion was floating rate at March 31, 2012.

(1) Includes value of collateralized loan obligations.


                       APOLLO INVESTMENT CORPORATION
                    STATEMENTS OF ASSETS AND LIABILITIES
                  (in thousands, except per share amounts)


                                                December 31,
                                                    2012        March 31,
                                                (unaudited)        2012
                                               -------------  -------------
Assets
Non-controlled/non-affiliated investments, at
 fair value (cost--$2,514,108 and $2,642,702,
 respectively)                                 $   2,355,739  $   2,490,672
Controlled investments, at fair value (cost--
 $301,791 and $208,882, respectively)                271,284        186,408
Cash                                                  41,521          1,665
Foreign currency (cost--$2,168 and $1,013,
 respectively)                                         2,169          1,013
Receivable for investments sold                       36,128         19,606
Interest receivable                                   42,949         54,409
Dividends receivable                                       1          2,898
Deferred financing costs                              28,621         17,309
Prepaid expenses and other assets                      1,086          1,283
                                               -------------  -------------
    Total assets                               $   2,779,498  $   2,775,263
                                               -------------  -------------

Liabilities
Debt                                           $   1,040,944  $   1,009,337
Payable for investments                                4,000             --
Dividends payable                                     40,578         39,409
Management and performance-based incentive
 fees payable                                         25,213         24,402
Interest payable                                      12,078         10,102
Accrued administrative expenses                        1,385          3,420
Other liabilities and accrued expenses                 3,153          3,362
                                               -------------  -------------
    Total liabilities                          $   1,127,351  $   1,090,032
                                               -------------  -------------

Net Assets
Common stock, par value $.001 per share,
 400,000 and 400,000 common shares authorized,
 respectively, and 202,891 and 197,043 issued
 and outstanding, respectively                 $         203  $         197
Paid-in capital in excess of par                   2,936,321      2,886,327
Over-distributed net investment income               (31,337)       (34,896)
Accumulated net realized loss                     (1,064,137)      (995,426)
Net unrealized depreciation                         (188,903)      (170,971)
                                               -------------  -------------
    Total net assets                           $   1,652,147  $   1,685,231
                                               -------------  -------------
    Total liabilities and net assets           $   2,779,498  $   2,775,263
                                               -------------  -------------
Net asset value per share                      $        8.14  $        8.55
                                               -------------  -------------


                       APOLLO INVESTMENT CORPORATION
                    STATEMENTS OF OPERATIONS (unaudited)
                  (in thousands, except per share amounts)


                         Three months ended           Nine months ended
                     --------------------------  --------------------------
                     December 31,  December 31,  December 31,  December 31,
                         2012          2011          2012          2011
                     ------------  ------------  ------------  ------------
INVESTMENT INCOME:
From non-
 controlled/non-
 affiliated
 investments:
  Interest           $     73,245  $     77,220  $    216,157  $    238,264
  Dividends                    84         1,125         2,102         5,410
  Other income              5,121         3,521        13,620        16,761
From non-
 controlled/affiliat
 ed investments:
  Interest                     --            --            --           899
From controlled
 investments:
  Interest                  2,431         1,297         5,025         2,565
  Dividends                 2,331           652        10,473         8,489
                     ------------  ------------  ------------  ------------
    Total investment
     income          $     83,212  $     83,815  $    247,377  $    272,388
                     ------------  ------------  ------------  ------------
EXPENSES:
  Management fees    $     13,456  $     14,693  $     40,346  $     46,171
  Performance-based
   incentive fees          10,047         9,634        29,919        29,398
  Interest and other
   debt expenses           14,651        16,926        42,757        50,222
  Administrative
   services expense         1,118         1,500         2,637         3,887
  Other general and
   administrative
   expenses                 1,860         2,524         6,424        10,978
                     ------------  ------------  ------------  ------------
    Total expenses         41,132        45,277       122,083       140,656
                     ------------  ------------  ------------  ------------
      Net investment
       income        $     42,080  $     38,538  $    125,294  $    131,732
                     ------------  ------------  ------------  ------------
REALIZED AND
 UNREALIZED GAIN
 (LOSS) ON
 INVESTMENTS, CASH
 EQUIVALENTS AND
 FOREIGN CURRENCIES:
  Net realized gain
   (loss):
    Investments and
     cash
     equivalents     $    (10,366) $   (276,031) $    (69,380) $   (340,621)
    Foreign
     currencies             1,061         1,036           669          (507)
                     ------------  ------------  ------------  ------------
      Net realized
       loss                (9,305)     (274,995)      (68,711)     (341,128)
                     ------------  ------------  ------------  ------------
  Net change in
   unrealized
   depreciation/appr
   eciation:
    Investments and
     cash
     equivalents          (51,309)      298,005       (14,426)       (7,464)
    Foreign
     currencies            (4,210)        2,149        (3,506)       13,363
                     ------------  ------------  ------------  ------------
      Net change in
       unrealized
       depreciation/
       appreciation       (55,519)      300,154       (17,932)        5,899
                     ------------  ------------  ------------  ------------
  Net realized and
   unrealized gain
   (loss) from
   investments, cash
   equivalents and
   foreign
   currencies             (64,824)       25,159       (86,643)     (335,229)
                     ------------  ------------  ------------  ------------
NET INCREASE
 (DECREASE) IN NET
 ASSETS RESULTING
 FROM OPERATIONS     $    (22,744) $     63,697  $     38,651  $   (203,497)
EARNINGS GAIN (LOSS)
 PER SHARE - BASIC   $      (0.11) $       0.32  $       0.19  $      (1.04)
                     ------------  ------------  ------------  ------------
EARNINGS GAIN (LOSS)
 PER SHARE - DILUTED $      (0.11) $       0.31  $       0.19  $      (1.04)
                     ------------  ------------  ------------  ------------

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. Statements regarding the following subjects, among others, may be forward-looking: the return on equity; the yield on investments; the ability to borrow to finance assets; new strategic initiatives; the ability to reposition the investment portfolio; the market outlook; future investment activity; and risks associated with investing in real estate assets, including changes in business conditions and the general economy. 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
Technology is enabling a new approach to collecting and using data. This approach, commonly referred to as the "Internet of Things" (IoT), enables businesses to use real-time data from all sorts of things including machines, devices and sensors to make better decisions, improve customer service, and lower the risk in the creation of new revenue opportunities. In his General Session at Internet of @ThingsExpo, Dave Wagstaff, Vice President and Chief Architect at BSQUARE Corporation, discuss the real benefits to focus on, how to understand the requirements of a successful solution, the flow of ...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

Focused on this fast-growing market’s needs, Vitesse Semiconductor Corporation (Nasdaq: VTSS), a leading provider of IC solutions to advance "Ethernet Everywhere" in Carrier, Enterprise and Internet of Things (IoT) networks, introduced its IStaX™ software (VSC6815SDK), a robust protocol stack to simplify deployment and management of Industrial-IoT network applications such as Industrial Ethernet switching, surveillance, video distribution, LCD signage, intelligent sensors, and metering equipment. Leveraging technologies proven in the Carrier and Enterprise markets, IStaX is designed to work ac...
"There is a natural synchronization between the business models, the IoT is there to support ,” explained Brendan O'Brien, Co-founder and Chief Architect of Aria Systems, in this SYS-CON.tv interview at the 15th International Cloud Expo®, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
C-Labs LLC, a leading provider of remote and mobile access for the Internet of Things (IoT), announced the appointment of John Traynor to the position of chief operating officer. Previously a strategic advisor to the firm, Mr. Traynor will now oversee sales, marketing, finance, and operations. Mr. Traynor is based out of the C-Labs office in Redmond, Washington. He reports to Chris Muench, Chief Executive Officer. Mr. Traynor brings valuable business leadership and technology industry expertise to C-Labs. With over 30 years' experience in the high-tech sector, John Traynor has held numerous...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades.
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world. The next @ThingsExpo will take place November 4-6, 2014, at the Santa Clara Convention Center, in Santa Clara, California. Since its launch in 2008, Cloud Expo TV commercials have been aired and CNBC, Fox News Network, and Bloomberg TV. Please enjoy our 2014 commercial.
From a software development perspective IoT is about programming "things," about connecting them with each other or integrating them with existing applications. In his session at @ThingsExpo, Yakov Fain, co-founder of Farata Systems and SuranceBay, will show you how small IoT-enabled devices from multiple manufacturers can be integrated into the workflow of an enterprise application. This is a practical demo of building a framework and components in HTML/Java/Mobile technologies to serve as a platform that can integrate new devices as they become available on the market.
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Located in booth #314, the Bsquare team will present DataV demos and discuss how DataV will help customers put their data to work to improve business outcomes. DataV is unlocking new initiatives across a wide landscape of customers in industries such as industrial manufacturing, transportation, retail and mobile. The solution is designed to complement a new project start or help to enrich an existing machine investment.