UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED JUNE 30, 2007
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 814-00237
GLADSTONE CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
MARYLAND |
54-2040781 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
1521 WESTBRANCH DRIVE, SUITE 200
MCLEAN, VIRGINIA 22102
(Address of principal executive office)
(703) 287-5800
(Registrants telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes x No o.
Indicate by check mark whether the registrant is large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12 b-2 of the Exchange Act. (Check One):
Large accelerated filer o Accelerated filer x Non-accelerated filer o.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x.
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date. The number of shares of the issuers Common Stock, $0.001 par value, outstanding as of July 31, 2007 was 14,612,574.
GLADSTONE CAPITAL CORPORATION
TABLE OF CONTENTS
GLADSTONE CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(Unaudited)
|
|
June 30, 2007 |
|
September 30, 2006 |
|
||
ASSETS |
|
|
|
|
|
||
Investments at fair value (Cost 6/30/2007: $369,975,398; 9/30/2006: $216,202,986) |
|
$ |
368,949,247 |
|
$ |
217,642,750 |
|
Cash and cash equivalents |
|
3,491,495 |
|
731,744 |
|
||
Interest receivable investments in debt securities |
|
2,221,606 |
|
1,394,942 |
|
||
Interest receivable employees |
|
32,739 |
|
37,396 |
|
||
Due from custodian |
|
3,129,891 |
|
3,587,152 |
|
||
Deferred financing fees |
|
246,333 |
|
145,691 |
|
||
Prepaid assets |
|
186,643 |
|
226,747 |
|
||
Due from employees |
|
|
|
1,803,283 |
|
||
Other assets |
|
352,796 |
|
213,510 |
|
||
TOTAL ASSETS |
|
$ |
378,610,750 |
|
$ |
225,783,215 |
|
|
|
|
|
|
|
||
LIABILITIES |
|
|
|
|
|
||
Accounts payable |
|
$ |
5,160 |
|
$ |
4,072 |
|
Interest payable |
|
516,780 |
|
247,530 |
|
||
Administration fee due to Administrator |
|
186,895 |
|
|
|
||
Fees due to Adviser (Refer to Notes 4 and 5) |
|
404,240 |
|
240,363 |
|
||
Borrowings under line of credit |
|
161,188,000 |
|
49,993,000 |
|
||
Withholding taxes payable |
|
|
|
1,803,283 |
|
||
Accrued expenses and deferred liabilities |
|
854,322 |
|
721,287 |
|
||
Funds held in escrow |
|
202,433 |
|
203,193 |
|
||
TOTAL LIABILITIES |
|
163,357,830 |
|
53,212,728 |
|
||
NET ASSETS |
|
$ |
215,252,920 |
|
$ |
172,570,487 |
|
|
|
|
|
|
|
||
ANALYSIS OF NET ASSETS |
|
|
|
|
|
||
Common stock, $0.001 par value, 50,000,000 shares authorized and 14,249,683 and 12,305,008 shares issued and outstanding, respectively |
|
$ |
14,250 |
|
$ |
12,305 |
|
Capital in excess of par value |
|
225,449,718 |
|
181,270,565 |
|
||
Notes receivable employees |
|
(9,947,366 |
) |
(10,248,308 |
) |
||
Net unrealized appreciation on investments |
|
(1,026,151 |
) |
1,439,764 |
|
||
Unrealized depreciation on derivative |
|
(279,593 |
) |
(253,716 |
) |
||
Realized loss on sale of investments |
|
(780,197 |
) |
(861,695 |
) |
||
Realized gain on settlement of derivative |
|
46,212 |
|
15,014 |
|
||
Accumulated undistributed net investment income |
|
1,776,047 |
|
1,196,558 |
|
||
TOTAL NET ASSETS |
|
$ |
215,252,920 |
|
$ |
172,570,487 |
|
NET ASSETS PER SHARE |
|
$ |
15.11 |
|
$ |
14.02 |
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
2
GLADSTONE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
AS OF JUNE 30, 2007
(UNAUDITED)
Company(1) |
|
Industry |
|
Investment(2) |
|
Cost |
|
Fair Value |
||
Access Television Network, Inc. |
|
Service-cable airtime (infomercials) |
|
Line of Credit (7)(8) |
|
$ |
|
|
$ |
|
AccessTV PIN Acquisition LLC |
|
|
|
(12.3% Due 3/2009) |
|
|
|
|
||
Product Information Network |
|
|
|
Senior Term Debt (7) |
|
2,979,835 |
|
2,948,401 |
||
Venture |
|
|
|
(12.3% Due 3/2009) |
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
ActivStyle Acquisition Co. ActivStyle, Inc. |
|
Service-medical products distribution |
|
Line of Credit (5) (9) |
|
450,000 |
|
448,313 |
||
|
|
|
|
Senior Term Debt (5) |
|
2,960,000 |
|
2,956,300 |
||
|
|
|
|
Senior Term Debt (3) (5) |
|
2,500,000 |
|
2,496,875 |
||
|
|
|
|
|
|
|
|
|||
Advanced Homecare Management, Inc. |
|
Service-home health nursing services |
|
Senior Subordinated Term Debt (5) (6) |
|
6,300,000 |
|
6,300,000 |
||
|
|
|
|
|
|
|
|
|
||
Allison Publications, LLC |
|
Service-publisher of consumer |
|
Senior Term Debt (7) |
|
8,014,728 |
|
7,933,000 |
||
D. Magazine Partners, L.P. |
|
oriented magazines |
|
(10.3%, Due 12/2011) |
|
|
|
|
||
Allison Media, Inc. |
|
|
|
|
|
|
|
|
||
City Newspapers, LP |
|
|
|
|
|
|
|
|
||
City Newspapers, Management, LLC |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|||
Anitox Acquisition Company |
|
Manufacturing-preservatives for |
|
Senior Real Estate Term Debt |
|
3,412,939 |
|
3,360,000 |
||
Anitox Holding, Inc. |
|
animal feed |
|
(8.8%, Due 1/2012) |
|
|
|
|
||
|
|
|
Line of Credit (10) |
|
|
|
|
|||
|
|
|
(9.6%, Due 1/2010) |
|
|
|
|
|||
|
|
|
Senior Term Debt (5) |
|
2,750,000 |
|
2,746,563 |
|||
|
|
|
(9.6%, Due 1/2012) |
|
|
|
|
|||
|
|
|
Senior Term Debt (3) (5) |
|
2,750,000 |
|
2,746,563 |
|||
|
|
|
(11.8%, Due 1/2012) |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
||
Badanco Acquisition Corp. |
|
Service-luggage design and distribution |
|
Senior Subordinated Term Debt (5) |
|
9,701,250 |
|
9,701,250 |
||
|
|
|
|
|
|
|
|
|||
Bresnan Communications, LLC |
|
Service-telecommunications |
|
Senior Term Debt (6) |
|
3,001,880 |
|
2,992,500 |
||
|
|
|
Senior Subordinated Term Debt (6) |
|
1,510,393 |
|
1,505,625 |
|||
|
|
|
|
|
|
|
|
|
||
CCS, LLC |
|
Service-cable tv franchise owner |
|
Senior Term Debt (7) |
|
3,455,580 |
|
3,424,146 |
||
|
|
|
|
|
|
|
|
|||
CHG Companies, Inc. |
|
Service-healthcare staffing |
|
Letter of Credit (5) (6) |
|
400,000 |
|
404,000 |
||
CHG Medical Staffing, Inc. |
|
|
|
(7.9%, Due 12/2012) |
|
|
|
|
||
|
|
|
Senior Term Debt (5) (6) |
|
1,596,000 |
|
1,605,975 |
|||
|
|
|
Senior Subordinated Term Debt (5) (6) |
|
500,000 |
|
503,125 |
|||
3
GLADSTONE
CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
AS OF JUNE 30, 2007
(UNAUDITED)
Company(1) |
|
Industry |
|
Investment(2) |
|
Cost |
|
Fair Value |
||
Chinese Yellow Pages Company |
|
Service-publisher of Chinese |
|
Line of Credit (7)(11) |
|
$ |
150,071 |
|
$ |
150,071 |
|
language directories |
|
(12.3%, Due 9/2010) |
|
|
|
|
|||
|
|
|
Senior Term Debt (7) |
|
1,235,008 |
|
1,222,435 |
|||
|
|
|
(12.3%, Due 9/2010) |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
||
Clinton Holdings, LLC |
|
Distribution-aluminum sheets |
|
Senior Subordinated Term Debt (5) |
|
15,500,000 |
|
15,519,375 |
||
Clinton Aluminum Acquisition, |
|
and stainless steel |
|
(12.6%, Due 1/2013) |
|
|
|
|
||
LLC |
|
|
|
Common Stock Warrants |
|
109,124 |
|
125,864 |
||
Metal Transportation, LLC |
|
|
|
|
|
|
|
|
||
Clinton Distribution Center, LLC |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|||
CMI Acquisition, LLC |
|
Service-recycling |
|
Senior Subordinated Term Debt (7) |
|
6,500,000 |
|
6,500,000 |
||
TMC Acquisition, LLC |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Community Media Corporation |
|
Service-publisher of free weekly newspapers |
|
Senior Term Debt (7) |
|
2,572,497 |
|
2,547,350 |
||
|
|
|
|
|
|
|
|
|||
Country Road |
|
Service-telecommunications |
|
Senior Subordinated Term Debt (5) (6) |
|
5,965,833 |
|
6,030,000 |
||
Communications LLC |
|
|
|
(13.2%, Due 7/2013) |
|
|
|
|
||
Country Road Management, Inc. |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Defiance Acquisition Corporation |
|
Manufacturing-trucking parts |
|
Senior Term Debt (3) (5) |
|
6,325,000 |
|
6,317,094 |
||
|
|
|
|
|
|
|
|
|||
Doe & Ingalls Management LLC |
|
Distributor-specialty chemicals |
|
Senior Term Debt (5) |
|
4,100,000 |
|
4,110,250 |
||
Doe & Ingalls of North Carolina Operating LLC |
|
|
|
Senior Term Debt (3) (5) |
|
4,466,250 |
|
4,471,833 |
||
Doe & Ingalls of Florida Operating LLC |
|
|
|
|
|
|
|
|
||
Doe & Ingalls of Virginia Operating LLC |
|
|
|
|
|
|
|
|
||
Doe & Ingalls of Maryland Operating LLC |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Emdeon Business Services, Inc. |
|
Service-healthcare technology solutions |
|
Senior Term Debt (6) |
|
2,440,341 |
|
2,450,020 |
||
|
|
|
|
Senior Subordinated Term Debt (6) |
|
2,013,460 |
|
2,020,000 |
||
|
|
|
|
|
|
|
|
|||
Express Courier International, Inc. |
|
Service-ground delivery and logistics |
|
Line of Credit (12) |
|
|
|
|
||
|
|
|
Senior Term Debt (5) |
|
4,347,500 |
|
4,347,500 |
|||
|
|
|
Senior Term Debt (3) (5) |
|
3,950,000 |
|
3,950,000 |
|||
4
GLADSTONE
CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
AS OF JUNE 30, 2007
(UNAUDITED)
Company(1) |
|
Industry |
|
Investment(2) |
|
Cost |
|
Fair Value |
||
Finn Corporation |
|
Manufacturing-landscape equipment |
|
Common Stock Warrants |
|
$ |
37,000 |
|
$ |
2,972,858 |
|
|
|
|
|
|
|
|
|
||
Florida Cable, Inc. |
|
Service-cable and internet |
|
Senior Term Debt (7) |
|
5,906,391 |
|
5,849,810 |
||
Lakepointe Limited Partnership |
|
system operator |
|
(11.8%, Due 7/2010) |
|
|
|
|
||
|
|
|
|
|
|
|
|
|||
FR X Ohmstede Holdings, LLC |
|
Service & Manufacturing-heat |
|
Senior Term Debt (6) |
|
2,739,130 |
|
2,756,250 |
||
FR X Ohmstede Acquisitions Co. |
|
exchangers |
|
(7.9%, Due 8/2013) |
|
|
|
|
||
|
|
|
Senior Subordinated Term Debt (6) |
|
3,011,190 |
|
3,015,000 |
|||
|
|
|
|
|
|
|
|
|
||
Global Materials Technologies, Inc. |
|
Manufacturing-steel wool products and metal fibers |
|
Senior Term Debt (3) (5) |
|
5,150,000 |
|
4,944,000 |
||
|
|
|
|
|
|
|
|
|||
GTM Holdings, Inc. |
|
Manufacturing-socks |
|
Senior Term Debt (6) |
|
497,500 |
|
499,988 |
||
Gold Toe Investment Corp. |
|
|
|
(8.1%, Due 10/2013) |
|
|
|
|
||
|
|
|
Senior Subordinated Term Debt (6) |
|
500,000 |
|
505,000 |
|||
|
|
|
|
|
|
|
|
|
||
Greatwide Logistics Services, Inc. |
|
Service - logistics and transportation |
|
Senior Term Debt (6) |
|
3,980,000 |
|
3,880,500 |
||
|
|
|
|
Senior Subordinated Term Debt (6) |
|
4,000,000 |
|
3,840,000 |
||
|
|
|
|
|
|
|
|
|||
Harrington Holdings, Inc. |
|
Service - healthcare products |
|
Senior Term Debt (6) |
|
2,493,750 |
|
2,506,219 |
||
Harrington Acquisition Corp. |
|
distribution |
|
(7.8%, Due 1/2014) |
|
|
|
|
||
|
|
|
Senior Subordinated Term Debt (6) |
|
5,000,000 |
|
5,025,000 |
|||
|
|
|
|
|
|
|
|
|
||
Heartland Communications Group, LLC |
|
Service-radio station operator |
|
Line of Credit (7)(13) |
|
9,856 |
|
9,856 |
||
Heartland Comm. License, LLC |
|
|
|
Senior Term Debt (7) |
|
4,873,531 |
|
4,823,237 |
||
Heartland Comm. Houghton |
|
|
|
(11.8%, Due 5/2011) |
|
|
|
|
||
License, LLC |
|
|
|
|
|
|
|
|
||
Tu-Mar Broadcasting, Inc. |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|||
International Junior Golf |
|
Service-golf training |
|
Line of Credit (5) (14) |
|
500,000 |
|
499,375 |
||
|
|
|
Senior Term Debt (5) |
|
2,650,000 |
|
2,646,688 |
|||
|
|
|
Senior Term Debt (3) (5) |
|
2,500,000 |
|
2,493,750 |
|||
|
|
|
|
|
|
|
|
|
||
Its Just Lunch International, LLC |
|
Service-dating service |
|
Line of Credit (5) (15) |
|
550,000 |
|
514,250 |
||
|
|
|
|
Senior Term Debt (5) |
|
3,300,000 |
|
3,085,500 |
||
|
|
|
|
Senior Term Debt (3) (5) (15) |
|
500,000 |
|
467,500 |
||
5
GLADSTONE
CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
AS OF JUNE 30, 2007
(UNAUDITED)
Company(1) |
|
Industry |
|
Investment(2) |
|
Cost |
|
Fair Value |
||
John Henry Holdings, Inc. Multi Packaging Solutions, Inc. |
|
Manufacturing-packaging products |
|
Senior Subordinated Term Debt (6) |
|
$ |
8,000,000 |
|
$ |
8,000,000 |
|
|
|
|
|
|
|
|
|
||
Kinetek Acquisition Corp. |
|
Manufacturing-custom engineered motors & controls |
|
Senior Term Debt (6) |
|
1,498,218 |
|
1,492,500 |
||
|
|
|
|
Senior Subordinated Term Debt (6) |
|
1,509,209 |
|
1,507,500 |
||
|
|
|
|
|
|
|
|
|||
KMBQ Corporation |
|
Service-AM/FM radio broadcaster |
|
Line of Credit (7) (16) |
|
150,000 |
|
150,000 |
||
|
|
|
Senior Term Debt (7) |
|
1,825,404 |
|
1,806,543 |
|||
|
|
|
|
|
|
|
|
|
||
LocalTel, Inc. |
|
Service-yellow pages publishing |
|
Line of Credit (5) (17) |
|
1,275,000 |
|
1,096,500 |
||
|
|
|
|
Senior Term Debt (5) |
|
2,687,500 |
|
2,311,250 |
||
|
|
|
|
Senior Term Debt (3) (5) |
|
2,750,000 |
|
2,282,500 |
||
|
|
|
|
|
|
|
|
|||
Macfadden Performing Arts Media, LLC |
|
Service-magazine publisher |
|
Line of Credit (7) |
|
515,979 |
|
515,979 |
||
|
|
|
Senior Term Debt (7) |
|
6,775,441 |
|
6,700,000 |
|||
|
|
|
|
|
|
|
|
|
||
MCA Communications, LLC |
|
Service-internet-based data |
|
Line of Credit (7) |
|
798,349 |
|
792,063 |
||
MCA Internet, LLC |
|
publisher |
|
(non-accrual, Due 9/2006) |
|
|
|
|
||
|
|
|
|
|
|
|
|
|||
Meteor Holding Corporation |
|
Manufacturing-bar code scanning |
|
Senior Term Debt (6) |
|
2,354,100 |
|
2,364,281 |
||
Metrologic Instruments, Inc. |
|
and data capture |
|
(8.3%, Due 12/2013) |
|
|
|
|
||
|
|
|
Senior Subordinated Term Debt (6) |
|
1,500,000 |
|
1,509,375 |
|||
|
|
|
(11.6%, Due 12/2013) |
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
||
Multi-Ag Media LLC |
|
Service-dairy magazine publisher/ |
|
Senior Term Debt (7) |
|
2,643,911 |
|
2,618,764 |
||
HFW Communications, Inc. |
|
information database |
|
(12.3%, Due 12/2009) |
|
|
|
|
||
Dairy Radio, LLC |
|
|
|
|
|
|
|
|
||
DPW Publishing, Inc. |
|
|
|
|
|
|
|
|
||
Phoenix Data Processing, LLC |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|||
Newhall Holdings, Inc. (d/b/a Newhall Laboratories) |
|
Service-distributor of personal care products and supplements |
|
Line of Credit (7) (20) |
|
|
|
|
||
Golden Sun, Inc. |
|
|
|
Senior Term Debt (3) (7) |
|
4,500,000 |
|
4,500,000 |
||
|
|
|
Senior Term Debt (3) (7) |
|
4,500,000 |
|
4,500,000 |
|||
6
GLADSTONE
CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
AS OF JUNE 30, 2007
(UNAUDITED)
Company(1) |
|
Industry |
|
Investment(2) |
|
Cost |
|
Fair Value |
||
Northern Contours |
|
Manufacturing-veneer and |
|
Senior Subordinated Term Debt (5) |
|
$ |
7,000,000 |
|
$ |
7,008,750 |
Northern Contours of Kentucky, Inc. |
|
laminate components |
|
(12.3%, Due 5/2010) |
|
|
|
|
||
Norcon Holding LLC |
|
|
|
|
|
|
|
|
||
Norcon Lewis LLC |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Pinnacle Treatment Centers, Inc. |
|
Service-Addiction treatment centers |
|
Line of Credit (21) |
|
|
|
|
||
|
|
|
|
Senior Term Debt (5) |
|
2,500,000 |
|
2,496,875 |
||
|
|
|
|
Senior Term Debt (3)(5) |
|
4,500,000 |
|
4,494,375 |
||
|
|
|
|
|
|
|
|
|||
Precision Acquisition Group |
|
Manufacturing-consumable |
|
Equipment Note (5) (22) |
|
591,228 |
|
591,228 |
||
Holdings, Inc. |
|
components for the aluminum |
|
(9.8%, Due 10/2011) |
|
|
|
|
||
Precision Asset Acquisition |
|
industry |
|
Senior Term Debt (5) |
|
5,000,000 |
|
5,012,500 |
||
Company, LLC |
|
|
|
(9.8%, Due 10/2010) |
|
|
|
|
||
|
|
|
Senior Term Debt (3)(5) |
|
4,200,000 |
|
4,210,500 |
|||
|
|
|
|
|
|
|
|
|
||
PROFITSystems Acquisition Co. |
|
Service-design and develop |
|
Line of Credit (23) |
|
|
|
|
||
PROFITSystems, Inc. |
|
ERP software |
|
(9.6%, Due 7/2009) |
|
|
|
|
||
|
|
|
|
Senior Term Debt (5) |
|
2,875,000 |
|
2,878,594 |
||
|
|
|
|
Senior Term Debt (3)(5) |
|
2,900,000 |
|
2,903,625 |
||
|
|
|
|
|
|
|
|
|||
Puerto Rico Cable Acquisition Company, Inc. |
|
Service-telecommunications |
|
Senior Subordinated Term Debt (5)(6) |
|
7,802,222 |
|
7,755,841 |
||
|
|
|
|
|
|
|
|
|
||
Reading Broadcasting, Inc. |
|
Service-television station operator |
|
Senior Term Debt (7) |
|
7,087,084 |
|
7,017,930 |
||
|
|
|
|
|
|
|
|
|||
RCS Management Holding Co. |
|
Service-healthcare supplies |
|
Senior Term Debt (3) (5) |
|
3,000,000 |
|
2,910,000 |
||
|
|
|
Senior Term Debt (4) (5) |
|
3,000,000 |
|
2,895,000 |
|||
|
|
|
|
|
|
|
|
|
||
RedPrairie Holding, Inc. |
|
Service-design and develop |
|
Senior Term Debt (6) |
|
4,457,500 |
|
4,457,500 |
||
RedPrairie Corporation |
|
supply chain software |
|
(8.4%, Due 7/2012) |
|
|
|
|
||
Blue Cube Software, Inc. |
|
|
|
Senior Subordinated Term Debt (6) |
|
3,000,000 |
|
3,000,000 |
||
|
|
|
|
|
|
|
|
|||
RiskMetrics Group Holdings, LLC |
|
Service - develop risk and wealth management solutions |
|
Senior Term Debt (6) |
|
1,995,000 |
|
1,999,988 |
||
|
|
|
Senior Subordinated Term Debt (6) |
|
500,000 |
|
505,000 |
|||
|
|
|
|
|
|
|
|
|
||
SCI Cable, Inc. |
|
Service-cable, internet, voice provider |
|
Senior Term Debt (7) (14.3%, Due 10/2008) |
|
2,485,032 |
|
2,459,885 |
||
7
GLADSTONE
CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
AS OF JUNE 30, 2007
(UNAUDITED)
Company(1) |
|
Industry |
|
Investment(2) |
|
Cost |
|
Fair Value |
||
SCS Acquisition Corp. (d/b/a Specialty Coatings Systems) |
|
Service-chemically treated equipment distribution |
|
Senior Term Debt (5) (17) |
|
$ |
5,442,311 |
|
$ |
5,442,311 |
|
|
|
Senior Term Debt (3) (5) (17) |
|
6,531,250 |
|
6,531,250 |
|||
|
|
|
|
|
|
|
|
|
||
Sunburst Media - Louisiana, LLC |
|
Service-radio station operator |
|
Senior Term Debt (7) |
|
7,875,441 |
|
7,800,000 |
||
|
|
|
|
|
|
|
|
|||
Sunshine Media Holdings |
|
Service-publisher regional B2B trade magazines |
|
Credit Facility (5) (24) |
|
600,000 |
|
598,500 |
||
|
|
|
Senior Term Debt (5) |
|
17,000,000 |
|
16,978,750 |
|||
|
|
|
Senior Term Debt (3) (5) |
|
10,000,000 |
|
9,975,000 |
|||
|
|
|
|
|
|
|
|
|
||
Thibaut Acquisition Co. |
|
Service-design and disbribute wall covering |
|
Credit Facility (5) (25) |
|
500,000 |
|
499,375 |
||
|
|
|
|
Senior Term Debt (5) |
|
2,887,500 |
|
2,887,500 |
||
|
|
|
|
Senior Term Debt (3) (5) |
|
3,000,000 |
|
3,000,000 |
||
|
|
|
|
|
|
|
|
|||
U.S. HealthCare Communications, LLC |
|
Service-magazine publisher/operator |
|
Senior Term Debt (7) |
|
2,244,182 |
|
2,219,035 |
||
|
|
|
|
|
|
|
|
|
||
Viapack, Inc. |
|
Manufacturing-polyethylene |
|
Senior Real Estate Term Debt |
|
975,000 |
|
975,000 |
||
P&O Packaging Acquisition LLC |
|
film |
|
(9.8%, Due 3/2011) |
|
|
|
|
||
|
|
|
|
Senior Term Debt (3) (5) (19) |
|
4,223,438 |
|
4,202,320 |
||
|
|
|
|
|
|
|
|
|||
Visual Edge Technology, Inc. |
|
Service-office equipment |
|
Senior Subordinated Term Debt (5) |
|
5,000,000 |
|
3,625,000 |
||
Graphic Enterprises, Inc. |
|
distribution |
|
(13.3%, Due 8/2011) |
|
|
|
|
||
Copeco, Inc. |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Wesco Holdings, Inc. |
|
Service-aerospace parts and |
|
Senior Term Debt (6) |
|
2,478,317 |
|
2,466,436 |
||
Wesco Aircraft Hardware Corp. |
|
distribution |
|
(7.6%, Due 9/2013) |
|
|
|
|
||
|
|
|
|
Senior Subordinated Term Debt (6) |
|
2,271,494 |
|
2,289,375 |
||
|
|
|
|
|
|
|
|
|||
West Coast Yellow Pages, Inc. |
|
Service-directory publisher |
|
Senior Term Debt (7) |
|
1,624,251 |
|
1,605,390 |
||
|
|
|
|
|
|
|
|
|
||
Westlake Hardware, Inc. |
|
Retail-hardware and variety |
|
Senior Subordinated Term Debt (5) |
|
15,000,000 |
|
14,925,000 |
||
WHI Holding Corp. |
|
|
|
(12.6%, Due 1/2011) |
|
|
|
|
||
|
|
|
|
|
|
|
|
|||
Winchester Electronics |
|
Manufacturing-high bandwidth connectors and cables |
|
Senior Term Debt (5) |
|
2,000,000 |
|
2,002,500 |
||
|
|
|
Senior Subordinated Term Debt (5) |
|
10,000,000 |
|
10,012,500 |
|||
|
|
|
|
|
|
|
|
|
||
WP Evenflo Group Holdings Inc. |
|
Manufacturing-infant and |
|
Senior Term Debt (6) |
|
1,990,000 |
|
1,999,950 |
||
WP Evenflo Acquisition, Inc. |
|
juvenile products |
|
(7.8%, Due 2/2013) |
|
|
|
|
||
|
|
|
|
Senior Subordinated Term Debt (6) |
|
2,000,000 |
|
2,000,000 |
||
Total: |
|
|
|
|
|
$ |
369,975,398 |
|
$ |
368,949,247 |
8
(1) We do not Control, and are not an Affiliate of, any of our portfolio companies, each as defined in the Investment Company Act of 1940, as amended (the 1940 Act). In general, under the 1940 Act, we would Control a portfolio company if we owned 25% or more of its voting securities and would be an Affiliate of a portfolio company if we owned 5% or more of its voting securities.
(2) Percentage represents interest rates in effect at June 30, 2007 and due date represents the contractual maturity date.
(3) Last Out Tranche of senior debt, meaning if the company is liquidated then the holder of the Last Out Tranche is paid after the senior debt.
(4) Last Out Tranche of senior debt, meaning if the company is liquidated then the holder of the Last Out Tranche is paid after the senior debt, however the debt is junior to another Last Out Tranche.
(5) Fair value was based on opinions of value submitted by Standard & Poors Securities Evaluations, Inc.
(6) Marketable securities, such as syndicated loans, are valued based on the indicative bid price, as of June 29, 2007, from the respective originating syndication agents trading desk.
(7) Investment valued at cost due to recent acquisition.
(8) Availability under the Access TV credit facility totals $500,000. There were no borrowings outstanding as of June 30, 2007.
(9) Availability under the ActivStyle credit facility totals $1,500,000. Borrowings of $450,000 were outstanding at June 30, 2007.
(10) Availability under the Anitox credit facility totals $3,000,000. There were no borrowings outstanding at June 30, 2007.
(11) Availability under the Chinese Yellow Pages credit facility totals $950,000. Borrowings of $150,071 were outstanding at June 30, 2007.
(12) Availability under the Express Courier credit facility totals $1,500,000. There were no borrowings outstanding at June 30, 2007.
(13) Availability under the Heartland credit facility totals $500,000. Borrowings of $9,856 were outstanding at June 30, 2007.
(14) Availability under the International Junior Golf credit facility totals $1,000,000. Borrowings of $500,000 were outstanding at June 30, 2007.
(15) Remaining availability under the Its Just Lunch revolving credit facility totals $200,000, borrowings of $550,000 were outstanding at June 30, 2007. The company may borrow an additional $1,750,000 of the senior term debt facility, subject to certain conditions including Gladstone Capitals approval, borrowings of $500,000 were outstanding at June 30, 2007.
(16) Availability under the KMBQ credit facility totals $200,000. Borrowings of $150,000 were outstanding at June 30, 2007.
(17) Availability under the LocalTel credit facility totals $3,000,000. Borrowings of $1,275,000 were outstanding at June 30, 2007.
(18) Availability under the MacFadden credit facility totals $1,400,000. Borrowings of $515,979 were outstanding at June 30, 2007.
(19) The MCA credit facility was matured as of June 30, 2007. The investment is currently not income producing.
(20) Availability under the Newhall credit facility totals $4,000,000. There were no borrowings outstanding as of June 30, 2007.
(21) Availability under the Pinnacle credit facility totals $500,000. There were no borrowings outstanding at June 30, 2007.
(22) Precision may borrow up to $1,000,000 for purposes of acquiring equipment. Borrowings of $591,228 were outstanding at June 30, 2007.
(23) Availability under the ProfitSystems credit facility totals $1,250,000. There were no borrowings outstanding at June 30, 2007.
(24) Availability under the Sunshine credit facility totals $3,000,000. Borrowings of $600,000 were outstanding at June 30, 2007.
(25) Availability under the Thibaut credit facility totals $500,000. Borrowings of $500,000 were outstanding at June 30, 2007.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
9
GLADSTONE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
AS OF SEPTEMBER 30, 2007
Company (1) |
|
Industry |
|
Investment (2) |
|
Cost |
|
Fair Value |
|
||
ActivStyle Acquisition Co. |
|
Service-medical |
|
Line of Credit (16) |
|
$ |
|
|
$ |
|
|
ActivStyle, Inc. |
|
products distribution |
|
(9.6%, Due 7/2009) |
|
|
|
|
|
||
|
|
|
Senior Term Debt (5) |
|
3,200,000 |
|
3,200,000 |
|
|||
|
|
|
(9.6%, Due 7/2011) |
|
|
|
|
|
|||
|
|
|
Senior Term Debt (3) (5) |
|
2,500,000 |
|
2,500,000 |
|
|||
|
|
|
(11.8%, Due 7/2011) |
|
|
|
|
|
|||
Advanced Homecare Management, Inc. |
|
Service-home health |
|
Senior Subordinated Term |
|
|
|
|
|
||
|
|
nursing |
|
Debt(5)(6) |
|
5,000,000 |
|
5,000,000 |
|
||
|
|
services |
|
(11.33%, Due 12/2013) |
|
|
|
|
|
||
Allied Extruders, LLC |
|
Manufacturing-polyethylene |
|
Senior
Real Estate Term Debt |
|
1,000,000 |
|
1,000,000 |
|
||
|
film |
|
Senior Term Debt (3) (5) |
|
8,000,000 |
|
8,030,000 |
|
|||
|
|
|
(11.3%, Due 3/2011) |
|
|
|
|
|
|||
Badanco Acquisition Corp. |
|
Manufacturing-luggage |
|
Senior Term Debt (5) |
|
5,145,019 |
|
5,157,881 |
|
||
|
|
|
|
(10.8%, Due 2/2010) |
|
|
|
|
|
||
|
|
|
|
Senior Term Debt (3)(5) |
|
8,585,125 |
|
8,628,051 |
|
||
|
|
|
|
(13.8%, Due 2/2010) |
|
|
|
|
|
||
Benetech, Inc. |
|
Service & Manufacturing- |
|
Senior Term Debt (5) |
|
2,112,500 |
|
2,144,187 |
|
||
|
dust management systems for the coal and electric |
|
(10.3%,
Due 5/2009) |
|
3,046,875 |
|
3,107,813 |
|
|||
|
utility industries |
|
(13.3%, Due 5/2009) |
|
|
|
|
|
|||
Bresnan Communications, LLC |
|
Service-telecommunications |
|
Senior
Term Debt (6) |
|
1,002,115 |
|
997,500 |
|
||
|
|
|
|
Senior Subordinated Term Debt |
|
1,511,554 |
|
1,533,750 |
|
||
|
|
|
|
(9.9%, Due 3/2014) |
|
|
|
|
|
||
Consolidated Bedding, Inc. |
|
Manufacturing-mattresses |
|
Senior
Subordinated Term |
|
2,438,359 |
|
2,306,991 |
|
||
|
|
|
(14.4%, Due 3/2009) |
|
|
|
|
|
|||
Country
Road |
|
Service-telecommunications |
|
Senior
Subordinated Term |
|
5,961,594 |
|
6,015,000 |
|
||
Country Road Management, Inc. |
|
|
|
(13.3%, Due 7/2013) |
|
|
|
|
|
||
Defiance Stamping Company |
|
Manufacturing-trucking parts |
|
Senior
Term Debt (3) (5) |
|
6,325,000 |
|
6,332,906 |
|
||
Doe
& Ingalls ManagementLLC |
|
Distributor-specialty chemicals |
|
Senior
Term Debt (5) |
|
4,700,000 |
|
4,723,500 |
|
||
Carolina Operating LLC |
|
|
|
Senior Term Debt (3) (5) |
|
4,500,000 |
|
4,516,875 |
|
||
Doe & Ingalls of Florida |
|
|
|
(13.3%, Due 11/2010) |
|
|
|
|
|
||
Operating LLC |
|
|
|
|
|
|
|
|
|
||
Doe & Ingalls of Virginia |
|
|
|
|
|
|
|
|
|
||
Operating LLC |
|
|
|
|
|
|
|
|
|
||
Express Courier International, Inc. |
|
Service-ground delivery and logistics |
|
Line
of Credit (7) |
|
|
|
|
|
||
|
|
|
Senior Term Debt (5) |
|
4,700,000 |
|
4,700,000 |
|
|||
|
|
|
(9.6%, Due 6/2011) |
|
|
|
|
|
|||
|
|
|
Senior Term Debt (3) (5) |
|
3,950,000 |
|
3,950,000 |
|
|||
|
|
|
(11.8%, Due 6/2011) |
|
|
|
|
|
|||
Finn Corporation |
|
Manufacturing-landscape |
|
Common Stock Warrants |
|
37,000 |
|
709,431 |
|
||
|
|
equipment |
|
|
|
|
|
|
|
||
10
GLADSTONE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
AS OF SEPTEMBER 30, 2007
Company (1) |
|
Industry |
|
Investment (2) |
|
Cost |
|
Fair Value |
|
FR X Ohmstede Holdings, LLC |
|
Service & |
|
Senior Term Debt (6) |
|
3,000,000 |
|
3,026,250 |
|
FR X Ohmstede Acquisitions Co. |
|
Manufacuring-heat |
|
(8.5%, Due 8/2013) |
|
|
|
|
|
|
exchangers |
|
Senior
Subordinated Term |
|
3,012,369 |
|
3,030,000 |
|
|
|
|
|
(12.5%, Due 8/2014) |
|
|
|
|
|
|
Global Materials |
|
Manufacturing-steel wool |
|
Senior Term Debt (3) (5) |
|
5,300,000 |
|
5,233,750 |
|
Technologies, Inc. |
|
products and metal fibers |
|
(14.3%, Due 11/2009) |
|
|
|
|
|
Its Just Lunch International, |
|
Service-dating service |
|
Line of Credit (12) (5) |
|
200,000 |
|
199,500 |
|
LLC |
|
|
|
(9.2%, Due 6/2009) |
|
|
|
|
|
|
|
|
Senior Term Debt (13) (5) |
|
3,300,000 |
|
3,291,750 |
|
|
|
|
|
(9.6%, Due 6/2011) |
|
|
|
|
|
|
|
|
|
Senior Term Debt (3) (14) |
|
|
|
|
|
|
|
|
|
(11.8%, Due 6/2011) |
|
|
|
|
|
|
John
Henry Holdings, Inc. |
|
Manufacturing-packaging products |
|
Senior
Subordinated Term Debt (6) |
|
8,000,000 |
|
8,000,000 |
|
LocalTel, Inc. |
|
Service-yellow pages |
|
Line of Credit (5) (15) |
|
350,000 |
|
343,000 |
|
|
publishing |
|
(9.8%, Due 6/2009) |
|
|
|
|
|
|
|
|
|
Senior Term Debt (5) |
|
2,687,500 |
|
2,633,750 |
|
|
|
|
|
(9.8%, Due 6/2011) |
|
|
|
|
|
|
|
|
|
Senior Term Debt (3) (5) |
|
2,750,000 |
|
2,695,000 |
|
|
|
|
|
(12.3%, Due 6/2011) |
|
|
|
|
|
|
Mistras Holdings Corp. |
|
Service & Manufacturing |
|
Senior Term Debt (3) (5) |
|
9,499,999 |
|
9,737,499 |
|
|
|
nondestructive testing |
|
(11.5%, Due 8/2008) |
|
|
|
|
|
|
|
instruments, systems |
|
Senior Term Debt (4) (5) (18) |
|
5,250,001 |
|
5,620,124 |
|
|
|
and services |
|
(12.5%, Due 8/2008) |
|
|
|
|
|
Network Solutions LLC |
|
Service-internet domain registry and host |
|
Senior
Term Debt (6) |
|
4,464,358 |
|
4,499,747 |
|
Northern
Contours |
|
Manufacturing-veneer
and |
|
Senior
Subordinated Term Debt (5) |
|
7,000,000 |
|
7,017,500 |
|
of Kentucky, Inc. |
|
|
|
|
|
|
|
|
|
Norcon Holding LLC |
|
|
|
|
|
|
|
|
|
Norcon Lewis LLC |
|
|
|
|
|
|
|
|
|
PROFITSystems Acquisition Co. |
|
Service-design and develop ERP |
|
Line
of Credit (17) |
|
|
|
|
|
|
software |
|
Senior Term Debt (5) |
|
3,100,000 |
|
3,100,000 |
|
|
|
|
|
(9.6%, Due 7/2011) |
|
|
|
|
|
|
|
|
|
Senior Term Debt (5) |
|
2,900,000 |
|
2,900,000 |
|
|
|
|
|
(11.8%, Due 7/201) (3) |
|
|
|
|
|
|
Puerto
Rico Cable |
|
Service-telecommunications |
|
Senior
Subordinated Term Debt (5)(6) |
|
7,813,274 |
|
7,775,183 |
|
QCE, LLC (d/b/a Quiznos Corp.) |
|
Service-restaurant franchisor |
|
Senior
Term Debt (6) |
|
3,010,713 |
|
2,977,538 |
|
|
|
|
Senior Term Debt (3) (6) |
|
3,045,560 |
|
3,033,750 |
|
|
|
|
|
(11.1%, Due 11/2013) |
|
|
|
|
|
11
GLADSTONE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
AS OF SEPTEMBER 30, 2007
Company (1) |
|
Industry |
|
Investment (2) |
|
Cost |
|
Fair Value |
|
||
RCS Management Holding Co. |
|
Service-healthcare |
|
Senior Term Debt (3) (5) |
|
3,000,000 |
|
3,003,750 |
|
||
|
supplies |
|
(9.8%, Due 1/2011) |
|
|
|
|
|
|||
|
|
|
Senior Term Debt (4) (5) |
|
3,000,000 |
|
3,003,750 |
|
|||
|
|
|
(12.3%, Due 1/2011) |
|
|
|
|
|
|||
RedPrairie
Holding, Inc. |
|
Service-design and develop supply chain |
|
Senior
Term Debt (6) |
|
3,990,000 |
|
3,990,000 |
|
||
Blue Cube Software, Inc. |
|
software |
|
Senior
Subordinated Term Debt (6) |
|
2,000,000 |
|
2,005,000 |
|
||
SCPH Holdings, Inc. |
|
Manufacturing-underwater |
|
Credit
Facility (8) |
|
|
|
|
|
||
Phoenix Optix, Inc. |
|
and harsh environment |
|
Senior Term Debt (5) |
|
2,625,000 |
|
2,631,563 |
|
||
|
components |
|
(10.3%, Due 2/2010) |
|
|
|
|
|
|||
|
|
|
Senior Term Debt (3) (5) |
|
2,887,500 |
|
2,898,328 |
|
|||
|
|
|
(13.3%, Due 2/2010) |
|
|
|
|
|
|||
SCS Acquisition Corp. |
|
Service-chemically treated equipment |
|
Senior
Term Debt (3) (5) (9) |
|
6,250,000 |
|
6,257,812 |
|
||
|
|
distribution |
|
Senior Term Debt (3) (5) (10) |
|
6,568,750 |
|
6,576,961 |
|
||
|
|
|
|
(11.3%, Due 12/2011) |
|
|
|
|
|
||
Thibaut Acquisition Co. |
|
Design and |
|
Credit Facility (11) |
|
|
|
|
|
||
|
Disbtribution-wall |
|
(9.8%, Due 1/2011) |
|
|
|
|
|
|||
|
coverings |
|
Senior Term Debt (5) |
|
3,325,000 |
|
3,325,000 |
|
|||
|
|
|
(9.8%, Due 1/2011) |
|
|
|
|
|
|||
|
|
|
Senior Term Debt (3) (5) |
|
3,000,000 |
|
3,000,000 |
|
|||
|
|
|
(12.3%, Due 1/2011) |
|
|
|
|
|
|||
Visual
Edge Technology, Inc. |
|
Service-office equipment distribution |
|
Senior
Subordinated Term Debt (5) |
|
5,000,000 |
|
4,987,500 |
|
||
Copeco, Inc. |
|
|
|
|
|
|
|
|
|
||
Westlake Hardware, Inc. |
|
Retail-hardware and variety |
|
Senior
Subordinated Term Debt (5) |
|
15,000,000 |
|
14,981,250 |
|
||
Winchester Electronics |
|
Manufacturing-high |
|
Senior Term Debt (3) (5) |
|
6,000,000 |
|
6,007,500 |
|
||
|
|
bandwidth connectors |
|
(12.3%, Due 6/2012) |
|
|
|
|
|
||
|
|
and cables |
|
|
|
|
|
|
|
||
Xspedius Communications |
|
Service-telecommunications |
|
Senior
Subordinated Term Debt (5) |
|
5,157,821 |
|
5,306,110 |
|
||
Total: |
|
|
|
|
|
$ |
216,202,986 |
|
$ |
217,642,750 |
|
(1) We do not Control, and are not an Affiliate of, any of our portfolio companies, each as defined in the Investment Company Act of 1940, as amended (the 1940 Act). In general, under the 1940 Act, we would Control a portfolio company if we owned 25% or more of its voting securities and would be an Affiliate of a portfolio company if we owned 5% or more of its voting securities.
(2) Percentage represents interest rates in effect at September 30, 2006 and due date represents the contractual maturity date.
(3) Last Out Tranche of senior debt, meaning if the company is liquidated then the holder of the Last Out Tranche is paid after the senior debt.
(4) Last Out Tranche of senior debt, meaning if the company is liquidated then the holder of the Last Out Tranche is paid after the senior debt, however the debt is junior to another Last Out Tranche.
(5) Fair value was based on opinions of value submitted by Standard & Poors Securities Evaluations, Inc.
(6) Marketable securities, such as syndicated loans, are valued based on the indicative bid price, as of September 30, 2006 from the respective originating syndication agents trading desk.
(7) Availability under the credit facility totals $1,500,000. There were no borrowings outstanding at September 30, 2006.
(8) Availability under the credit facility totals $500,000. There were no borrowings outstanding at September 30, 2006.
(9) Availability under the debt facility totals $7,500,000. The outstanding balance of the debt facility was $6,250,000 at September 30, 2006.
(10) Availability under the debt facility totals $7,500,000. The outstanding balance of the debt facility was $6,568,750 at September 30, 2006.
(11) Availability under the credit facility totals $1,000,000. There were no borrowings outstanding at September 30, 2006.
(12) Availability under the credit facility totals $750,000. Borrowings of $200,000 were outstanding at September 30, 2006.
12
(13) The company may borrow an additional $500,000 under the senior term debt facility, subject to certain conditions including Gladstone Capitals approval.
(14) The company may borrow an additional $2,250,000 under the senior term debt facility, subject to certain conditions including Gladstone Capitals approval.
(15) Availability under the credit facility totals $3,000,000. Borrowings of $350,000 were outstanding at September 30, 2006.
(16) Availability under the credit facility totals $1,500,000. There were no borrowings outstanding at September 30, 2006
(17) Availability under the credit facility totals $1,250,000. There were no borrowings outstanding at September 30, 2006
(18) Includes a success fee with a fair value of $742,000 and no cost basis.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
13
GLADSTONE
CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
Three Months Ended June 30, |
|
||||
|
|
2007 |
|
2006 |
|
||
INVESTMENT INCOME |
|
|
|
|
|
||
Interest income investments |
|
$ |
8,911,643 |
|
$ |
5,775,522 |
|
Interest income cash and cash equivalents |
|
109,269 |
|
8,178 |
|
||
Interest income notes receivable from employees |
|
132,795 |
|
108,877 |
|
||
Prepayment fees and other income |
|
47,572 |
|
630,239 |
|
||
Total investment income |
|
9,201,279 |
|
6,522,816 |
|
||
|
|
|
|
|
|
||
EXPENSES |
|
|
|
|
|
||
Interest expense |
|
1,762,249 |
|
702,449 |
|
||
Loan servicing (Refer to Notes 4 and 5) |
|
897,634 |
|
693,965 |
|
||
Base management fee (Refer to Note 4) |
|
727,259 |
|
334,814 |
|
||
Incentive fee (Refer to Note 4) |
|
1,166,529 |
|
|
|
||
Administration fee (Refer to Note 4) |
|
186,895 |
|
|
|
||
Professional fees |
|
148,609 |
|
166,405 |
|
||
Amortization of deferred financing fees |
|
72,133 |
|
36,036 |
|
||
Stockholder related costs |
|
39,434 |
|
28,371 |
|
||
Directors fees |
|
56,250 |
|
27,500 |
|
||
Insurance expense |
|
66,246 |
|
50,589 |
|
||
Stock option compensation |
|
|
|
202,296 |
|
||
Other expenses |
|
82,062 |
|
35,083 |
|
||
Expenses before credit from Adviser |
|
5,205,300 |
|
2,277,508 |
|
||
Credit to base management and incentive fees from Adviser (Refer to Note 4) |
|
(1,708,888 |
) |
(542,774 |
) |
||
Total expenses net of credits to base management and incentive fees |
|
3,496,412 |
|
1,734,734 |
|
||
NET INVESTMENT INCOME |
|
5,704,867 |
|
4,788,082 |
|
||
|
|
|
|
|
|
||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
|
|
|
|
|
||
Realized loss on sale of investments |
|
(5,021 |
) |
(100,850 |
) |
||
Realized gain on settlement of derivative |
|
8,405 |
|
1,367 |
|
||
Unrealized (depreciation) appreciation on derivative |
|
(264 |
) |
41,486 |
|
||
Net unrealized appreciation on investments |
|
256,613 |
|
812,991 |
|
||
Net gain on investments |
|
259,733 |
|
754,994 |
|
||
|
|
|
|
|
|
||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
|
$ |
5,964,600 |
|
$ |
5,543,076 |
|
|
|
|
|
|
|
||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE: |
|
|
|
|
|
||
Basic |
|
$ |
0.44 |
|
$ |
0.49 |
|
Diluted |
|
$ |
0.44 |
|
$ |
0.48 |
|
|
|
|
|
|
|
||
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: |
|
|
|
|
|
||
Basic |
|
13,561,511 |
|
11,337,291 |
|
||
Diluted |
|
13,561,511 |
|
11,570,425 |
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
14
GLADSTONE
CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
|
|
Nine Months Ended June 30, |
|
||||
|
|
2007 |
|
2006 |
|
||
INVESTMENT INCOME |
|
|
|
|
|
||
Interest income investments |
|
$ |
25,064,702 |
|
$ |
18,497,893 |
|
Interest income cash and cash equivalents |
|
178,183 |
|
21,714 |
|
||
Interest income notes receivable from employees |
|
403,917 |
|
323,003 |
|
||
Prepayment fees and other income |
|
431,973 |
|
711,225 |
|
||
Total investment income |
|
26,078,775 |
|
19,553,835 |
|
||
|
|
|
|
|
|
||
EXPENSES |
|
|
|
|
|
||
Interest expense |
|
4,693,525 |
|
2,302,693 |
|
||
Loan servicing (Refer to Notes 4 and 5) |
|
2,377,409 |
|
2,144,024 |
|
||
Base management fee (Refer to Note 4) |
|
1,806,075 |
|
955,894 |
|
||
Incentive fee (Refer to Note 4) |
|
3,474,007 |
|
|
|
||
Administration fee (Refer to Note 4) |
|
481,746 |
|
|
|
||
Professional fees |
|
368,610 |
|
399,758 |
|
||
Amortization of deferred financing fees |
|
198,633 |
|
94,572 |
|
||
Stockholder related costs |
|
190,450 |
|
273,170 |
|
||
Directors fees |
|
167,470 |
|
81,712 |
|
||
Insurance expense |
|
191,338 |
|
151,956 |
|
||
Stock option compensation |
|
|
|
279,618 |
|
||
Other expenses |
|
219,522 |
|
151,663 |
|
||
Expenses before credit from Adviser |
|
14,168,785 |
|
6,835,060 |
|
||
Credit to base management and incentive fees from Adviser (Refer to Note 4) |
|
(4,682,160 |
) |
(1,765,774 |
) |
||
Total expenses net of credits to base management and incentive fees |
|
9,486,625 |
|
5,069,286 |
|
||
|
|
|
|
|
|
||
NET INVESTMENT INCOME BEFORE INCOME TAXES |
|
16,592,150 |
|
14,484,549 |
|
||
Income tax expense |
|
|
|
50,237 |
|
||
NET INVESTMENT INCOME |
|
16,592,150 |
|
14,434,312 |
|
||
|
|
|
|
|
|
||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: |
|
|
|
|
|
||
Net realized gain (loss) on sale of investments |
|
81,498 |
|
(903,945 |
) |
||
Realized gain on settlement of derivative |
|
31,198 |
|
1,367 |
|
||
Unrealized (depreciation) appreciation on derivative |
|
(25,877 |
) |
65,252 |
|
||
Net unrealized (depreciation) appreciation on investments |
|
(2,465,915 |
) |
5,769,820 |
|
||
Net (loss) gain on investments |
|
(2,379,096 |
) |
4,932,494 |
|
||
|
|
|
|
|
|
||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS |
|
$ |
14,213,054 |
|
$ |
19,366,806 |
|
|
|
|
|
|
|
||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE: |
|
|
|
|
|
||
Basic |
|
$ |
1.12 |
|
$ |
1.71 |
|
Diluted |
|
$ |
1.12 |
|
$ |
1.68 |
|
|
|
|
|
|
|
||
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING: |
|
|
|
|
|
||
Basic |
|
12,701,845 |
|
11,317,437 |
|
||
Diluted |
|
12,701,845 |
|
11,549,054 |
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
15
GLADSTONE
CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(UNAUDITED)
|
|
Nine Months Ended June 30, |
|
||||
|
|
2007 |
|
2006 |
|
||
Operations: |
|
|
|
|
|
||
Net investment income |
|
$ |
16,592,150 |
|
$ |
14,434,312 |
|
Net realized gain (loss) on sale of investments |
|
81,498 |
|
(903,945 |
) |
||
Realized gain on settlement of derivative |
|
31,198 |
|
1,367 |
|
||
Unrealized (depreciation) appreciation on derivatives |
|
(25,877 |
) |
65,252 |
|
||
Net unrealized (depreciation) appreciation on investments |
|
(2,465,915 |
) |
5,769,820 |
|
||
Net increase in net assets from operations |
|
14,213,054 |
|
19,366,806 |
|
||
|
|
|
|
|
|
||
Capital transactions: |
|
|
|
|
|
||
Issuance of common stock under shelf offering |
|
46,075,000 |
|
|
|
||
Distributions to stockholders |
|
(16,012,661 |
) |
(13,751,539 |
) |
||
Shelf offering costs |
|
(405,708 |
) |
|
|
||
Repayment of principal on employee notes |
|
300,941 |
|
129,943 |
|
||
Stock option compensation |
|
|
|
279,618 |
|
||
Issuance of common stock under stock option plan |
|
|
|
1,150,245 |
|
||
Stock surrendered in settlement of withholding tax |
|
(1,488,193 |
) |
|
|
||
Increase (decrease) in net assets from capital share transactions |
|
28,469,379 |
|
(12,191,733 |
) |
||
|
|
|
|
|
|
||
Total increase in net assets |
|
42,682,433 |
|
7,175,073 |
|
||
Net assets at beginning of year |
|
172,570,487 |
|
151,610,683 |
|
||
Net assets at end of period |
|
$ |
215,252,920 |
|
$ |
158,785,756 |
|
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.
16
GLADSTONE
CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
Nine Months Ended June 30, |
|
||||
|
|
2007 |
|
2006 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
||
|
|
|
|
|
|
||
Net increase in net assets resulting from operations |
|
$ |
14,213,054 |
|
$ |
19,366,806 |
|
Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities: |
|
|
|
|
|
||
Purchase of investments |
|
(253,727,829 |
) |
(105,076,400 |
) |
||
Principal repayments on investments |
|
99,802,867 |
|
107,876,077 |
|
||
Net amortization of premiums and discounts |
|
29,872 |
|
(144,501 |
) |
||
Amortization of deferred financing fees |
|
198,633 |
|
94,572 |
|
||
Stock compensation expense |
|
|
|
279,618 |
|
||
Realized loss on investments |
|
122,680 |
|
1,329,458 |
|
||
Unrealized depreciation (appreciation) on derivative |
|
25,877 |
|
(65,252 |
) |
||
Change in net unrealized depreciation (appreciation) on investments |
|
2,465,915 |
|