EXHIBIT 99.1

Gladstone Capital Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended September 30, 2016

MCLEAN, Va., Nov. 21, 2016 (GLOBE NEWSWIRE) -- Gladstone Capital Corporation (NASDAQ:GLAD) (the “Company”) today announced earnings for its fourth quarter and fiscal year ended September 30, 2016.  Please read the Company’s Annual Report on Form 10-K filed today with the U.S. Securities and Exchange Commission (the “SEC”), which can be retrieved from the SEC’s website at www.sec.gov, or from the Company’s website at www.GladstoneCapital.com

Summary Information (dollars in thousands, except per share data) (unaudited):

 For the Quarter Ended: September 30,
2016
 June 30,
2016
 Change % Change 
          
Total investment income $9,749 $9,844 $(95)(1.0)%
Total expenses, net of credits (4,847)(4,937)90 (1.8)
Net investment income 4,902 4,907 (5)(0.1)
Net investment income per common share 0.21 0.21   
Cash distribution per common share 0.21 0.21   
Net realized loss (2,621)(84)(2,537)NM 
Net unrealized appreciation 18,414 693 17,721 NM 
Net increase in net assets resulting from operations 20,695 5,516 15,179 275.2 
Weighted average yield on interest-bearing investments 11.0%10.9%0.1%0.9 
Total invested $20,163 $33,994 $(13,831)(40.7)
Total repayments and proceeds 22,719 20,389 2,330 11.4 
          
As of: September 30,
2016
 June 30,
2016
 Change % Change 
Total investments, at fair value $322,114 $308,226 $13,888 4.5%
Fair value, as a percent of cost 84.4%79.8%4.6%5.8 
Net asset value per common share $8.62 $7.95 $0.67 8.4 
NM=Not Meaningful            
             


For the Year Ended: September 30,
2016
 September 30,
2015
 Change % Change 
          
Total investment income $39,112 $38,058 $1,054 2.8%
Total expenses, net of credits (19,625)(20,358)(733)(3.6)
Net investment income 19,487 17,700 1,787 10.1 
Net investment income per common share 0.84 0.84   
Cash distribution per common share 0.84 0.84   
Total net realized gain (loss) 7,152 (34,176)41,328 NM 
Total net unrealized (depreciation) appreciation (15,272)24,960 (40,232)NM 
Net increase in net assets resulting from operations 11,367 8,484 2,883 34.0 
Weighted average yield on interest-bearing investments 11.1%10.9%0.2%1.8 
Total invested $89,546 $134,097 $(44,551)(33.2)
Total repayments and proceeds 130,666 40,273 90,393 224.5 
          
As of: September 30,
2016
 September 30,
2015
 Change % Change 
Total investments, at fair value $322,114 $365,891 $(43,777)(12.0)
Fair value as a percent of cost 84.4%89.2%(4.8)(5.4)
Net asset value per common share $8.62 $9.06 $(0.44)(4.9)
NM=Not Meaningful            
             

Fourth Fiscal Quarter 2016 Highlights:

Fourth Fiscal Quarter 2016 Results:

Total investment income decreased by 1.0% compared to the prior quarter as interest income increased by $0.9 million, or 10.4%, due to an increase in the average balance of our interest-bearing portfolio and other income declined to $0.6 million, or 6.5% of investment income, compared to the prior quarter. Total expenses decreased by 1.8% quarter over quarter, primarily as a result of a $0.2 million decrease in professional and other general and administrative expenses.

Net Investment Income for the quarter ending September 30, 2016 was $4.9 million, or $0.21 per share, which is consistent with the prior quarter. 

Net Increase in Net Assets Resulting from Operations for the quarter ended September 30, 2016 and June 30, 2016 was $20.7 million, or $0.89 per share, compared to $5.5 million, or $0.24 per share, respectively.  The quarter over quarter increase is primarily due to an increase in unrealized appreciation of $17.7 million largely attributed to the RBC sale.

Fiscal Year Ended 2016 Results: 

Total investment income increased by 2.8% during the fiscal year ended September 30, 2016 compared to the prior year as other income increased by $0.7 million and interest income increased by $0.3 million due to an increase in the weighted average yield on our interest-bearing investments from 10.9% to 11.1% year over year.  Total expenses decreased 3.6% year over year, primarily due to a $0.9 million, or 24.3%, decrease in interest expense on borrowings driven by a lower weighted average balance outstanding on our credit facility during the year.

Net Investment Income for the years ended September 30, 2016 and 2015, was $19.5 million, or $0.84 per share, and $17.7 million, or $0.84 per share, respectively. 

Net Increase in Net Assets Resulting from Operations for the years ended September 30, 2016 and 2015, was $11.4 million, or $0.49 per share, compared to $8.5 million, or $0.40 per share, respectively.  The year over year change is driven by the increase in net investment income and lower net realized and unrealized loss compared to the prior year. 

Subsequent Events:  Subsequent to September 30, 2016, the following significant events occurred:

       
Record Date Payment
Date
 Distribution
per Common
Share
 Distribution per
Series 2021 Term
Preferred Share
October 21 October 31 $0.07 $0.140625
November 17 November 30 0.07 0.140625
December 20 December 30 0.07 0.140625
Total for the Quarter $0.21 $0.421875
       

Conference Call for Stockholders: The Company will hold its earnings release conference call on Tuesday, November 22, 2016, at 8:30 a.m. EST.  Please call (855) 465-0177 to enter the conference.  An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through December 22, 2016.  To hear the replay, please dial (855) 859-2056 and use conference number 46710429.  The replay of the conference call will be available beginning approximately one hour after the call concludes. The live audio broadcast of the Company’s quarterly conference call will also be available online at www.GladstoneCapital.com.  The event will be archived and available for replay on the Company’s website through January 22, 2017.

About Gladstone Capital Corporation: Gladstone Capital Corporation is a publicly traded business development company that invests in debt and equity securities, consisting primarily of secured first and second lien term loans to small and medium sized businesses in the United States.  Including distributions through today, the Company has paid 165 consecutive monthly or quarterly cash distributions on its common stock, which over the past five years total approximately $90.1 million, or $4.20 per share.  Information on the business activities of all the Gladstone funds can be found at www.GladstoneCompanies.com.      

To obtain a paper copy of the Company’s most recent Form 10-K, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean, VA 22102, ATTN:  Investor Relations.  The financial information above is not comprehensive and is without notes, so readers should obtain and carefully review the Company’s Form 10-K for the year ended September 30, 2016, including the notes to the consolidated financial statements contained therein.

Investor Relations Inquiries: Please visit www.gladstone.com or +1-703-287-5893.