NASDAQ$GLAD

Gladstone Capital Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Announced earnings for its fourth quarter and fiscal year ended September 30, 2020.

Gladstone Capital Corporation reported a 7.2% increase in investment income to $12.6 million for the fourth quarter, driven by higher average earning assets, stable investment yields, and increased fee income. Net asset value increased by 3.1% to $7.40 per share. The company invested $20.7 million in a new portfolio company and $1.3 million in existing ones, while receiving $22.6 million in repayments and net proceeds.

  • Investment income increased by 7.2% to $12.6 million due to higher average earning assets, stable investment yields, and higher fee income.
  • Invested $20.7 million in one new portfolio company and $1.3 million in existing portfolio companies.
  • Non-accruals decreased to 1.4% of the portfolio at fair value, indicating strong company performance.
  • Net asset value increased 3.1% from June 30, 2020, to $7.40 per share as of September 30, 2020.

Headline financials

Total Revenue

$12.6M

Previous: $12.7M-1.1%
EPS (adj)

$0.40

Previous: $0.42-4.8%
Net Income

$6.12M

No prior period
Operating Income

$6.12M

No prior period
Cash & Equivalents

$234M

No prior period
Total Assets

$450M

No prior period

Revenue & EPS history

Gladstone Capital · Revenue · Quarterly

$12.6M

Q4 2020-1.1%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Gladstone Capital's President, Bob Marcotte, stated that the portfolio performed well despite the unprecedented impact of Covid-19, closing the fiscal year on a strong note with favorable earnings momentum, and the company is well-positioned to grow its earning asset base and net interest income as it transitions into fiscal 2021.

Tailwinds

  • Portfolio performed well on balance.
  • Closing fiscal year on a strong note with favorable earnings momentum.
  • Investment principles and strategies are intact.
  • Modest leverage provides a solid foundation.
  • Well-positioned to grow earning asset base and net interest income as it transitions into fiscal 2021.

Headwinds

  • The ramifications and impact of Covid-19 were certainly unprecedented.
  • There may be additional challenges ahead.
  • The company has a ways to go to fully recover the unrealized losses of fiscal 2020.
  • U.S. loan market has exhibited a heightened level of volatility and wider credit spreads associated with the uncertainty and potentially adverse economic ramifications of the spread of COVID-19.
  • Unrealized depreciation of investments for year ended September 30, 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

-0.6%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+0.5%

Avg return

30 days after

45%

29 / 64 earnings

Positive

+8.4%

Q2 2022

Best reaction

-15.6%

Q2 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+4.1%+2.2%
Q1 2026+2.1%-5.6%-9.3%
Q4 2025+5.8%+8.2%+11.0%
Q2 2025-0.2%+2.4%+6.5%
Q1 2025+0.5%+4.0%-4.1%
Q4 2024+0.5%+4.4%+9.7%
Q3 2024-0.5%-0.4%-0.6%
Q2 2024-0.8%+1.4%+4.6%
Q1 2024-6.1%-4.4%-2.9%
Q4 2023+1.8%+0.1%+5.6%
Q3 2023+2.6%+3.4%-6.4%
Q2 2023-1.5%-0.9%-0.9%
Q1 2023+3.8%+1.7%-4.1%
Q4 2022+4.8%+3.2%-2.2%
Q3 2022-2.6%-2.0%-6.8%
Q2 2022+8.4%+5.7%+0.3%
Q1 2022+2.1%+3.6%-2.0%
Q4 2021+4.6%+1.2%-3.7%
Q3 2021-0.2%+2.8%+1.7%
Q2 2021-0.8%-0.5%+5.4%
Q1 2021+3.5%+6.6%+4.4%
Q4 2020+6.7%+8.2%+10.8%
Q3 2020+1.9%+1.1%+5.4%
Q2 2020-12.3%-3.4%+11.8%
Q1 2020-0.1%+1.2%-13.6%
Q4 2019+3.0%+2.4%+2.6%
Q3 2019-1.8%-0.9%+0.0%
Q2 2019-1.5%-0.1%-5.3%
Q1 2019+1.2%-1.4%+1.8%
Q4 2018-1.8%-4.0%-9.8%
Q3 2018+1.3%+1.7%+4.4%
Q2 2018+0.5%+1.4%+4.4%
Q1 2018-7.5%-0.4%-2.3%
Q4 2017+0.2%+0.2%-5.0%
Q3 2017-0.6%-0.3%-7.3%
Q2 2017-0.6%+2.0%-0.2%
Q1 2017-0.9%-4.5%-9.6%
Q4 2016+0.4%+2.6%+16.5%
Q3 2016+1.1%+3.6%+8.1%
Q2 2016-3.1%
Q1 2016-5.8%
Q4 2015+1.0%
Q3 2015+3.0%
Q2 2015-6.5%
Q1 2015+2.8%
Q4 2014+0.3%
Q3 2014-10.2%
Q2 2014-2.4%
Q1 2014-1.6%
Q4 2013+1.4%
Q3 2013-0.5%
Q2 2013-5.2%
Q1 2013-0.4%
Q4 2012-10.7%
Q3 2012-1.5%
Q2 2012-0.1%
Q1 2012+3.7%
Q4 2011-0.5%
Q3 2011-3.3%
Q2 2011-0.4%
Q1 2010+4.6%
Q4 2010-5.1%
Q3 2010-3.2%
Q2 2010-15.6%

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