Earnings Highlights and Review: Apollo Investment’s Q4 Bottom-line Outperformed Market Expectations

Research Desk Line-up: Eaton Vance Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 6, 2017 / Pro-Trader Daily publishes post-earnings coverage on Apollo Investment Corp. (NASDAQ: AINV) following the Company’s posting of its financial results for the fourth quarter fiscal 2017 (Q4 FY17) and full year fiscal 2017 (FY17) on May 18, 2017. The New York-based Company posted quarterly diluted EPS versus diluted loss per share in the year ago same quarter. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Earnings Reviewed

In Q4 FY17, Apollo Investment’s quarterly total investment income was $66.30 million, which came in lower than $85.34 million reported in the year ago comparable quarter. Total investment income numbers for the reported quarter lagged behind Wall Street’s estimates of $69.1 million.

For the quarter ended March 31, 2017, the Company reported net investment income of $37.29 million, or $0.17 per share, compared to $44.62 million, or $0.20 per share, in Q4 FY16. The Company’s net investment income topped market consensus estimates of $0.16 per share. Meanwhile, the Company posted earnings of $0.04 per diluted share in Q4 FY17 compared to loss of $0.10 per diluted share in prior year’s corresponding quarter.

During FY17, the Company’s total investment income stood at $279.86 million compared to $379.75 million in FY16. Apollo Investment’s net investment income for FY17 was $149.24 million, or $0.67 per average share, versus $193.26 million, or $0.83 per share, in the last year’s comparable period. Additionally, the Company reported earnings of $0.08 per diluted share in FY17 compared to loss of $0.19 per diluted share in FY16.

Operating Metrics

The Company’s net asset value as on March 31, 2017, stood at $6.74 per share compared to $7.28 per share as on March 31, 2016. At the close of the reported quarter, weighted average yield on total debt portfolio stood at 10.3% compared to 11.0% as on March 31, 2016. Additionally, the Company’s net increase in net assets resulting from operations was $8.05 million in Q4 FY17 against net decrease in net assets resulting from operations of $23.40 million in the last year’s comparable period.

Portfolio Standings and Liquidity

At the end of March quarter of FY17, the Company’s portfolio consisted 75% of secured debt, 7% of unsecured debt, 7% of structured products and other, 1% preferred equity, and the remaining 10% in the form of common equity/interests and warrants. The Company’s net investment activity before repaid investments was $111.0 million in Q4 FY17 compared to a negative net investment activity before repaid investments 11.4 million in Q4 FY16. Furthermore, net investment activity for the reported quarter was (195.4) million versus (86.8) million in the prior year’s same period.

Apollo Investment’s total assets as on March 31, 2017, was $2.41 billion compared to $3.08 billion at March 31, 2016. The Company’s fair value of its investment portfolio was $2.32 billion as on March 31, 2017, versus $2.92 billion at March 31, 2016.

As of March 31, 2017, Apollo Investment’s cash and cash equivalents balance was $9.78 million, down from $16.52 million as on March 31, 2016. The Company’s debt also fell to $848.45 million as on March 31, 2017, from $1.31 billion as on March 31, 2016. Furthermore, the Company’s debt-to-equity ratio was 0.57x as on March 31, 2017, compared to 0.80x as on March 31, 2016. While, the Company’s net leverage ratio was 0.55x as March 31, 2017, compared to 0.75x as on March 31, 2016.

Dividend and Share Repurchase

On May 17, 2017, Apollo Investment’s Board of Directors declared a dividend distribution of $0.15 per share, payable on July 06, 2017 to shareholders of record as of June 21, 2017.

On September 15, 2016, the Company’s Board of Directors had announced an expansion of stock repurchase program by $50 million to $150 million. In the year ended March 31, 2017, the Company repurchased 6,461,842 shares at weighted average price per share of $5.87, inclusive of commissions, for a total cost of $37.9 million. Furthermore, the Company has repurchased a total of 7,046,697 shares at weighted average price per share of $5.89, inclusive of commissions, for a total cost of $100.4 million, since the start of the share repurchase program.

Stock Performance

On Monday, June 05, 2017, the stock closed the trading session at $6.38, slightly down 0.47% from its previous closing price of $6.41. A total volume of 509.04 thousand shares have exchanged hands. Apollo Investment’s stock price surged 5.63% in the past six months and 19.92% in the previous twelve months. Moreover, the stock gained 8.87% since the start of the year. The stock is trading at a PE ratio of 75.06 and has a dividend yield of 9.40%. At Monday’s closing price, the stock’s net capitalization stands at $1.40 billion.

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