AIV - Apartment Investment And Management Co News Story
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Last Trade - 03/03/21
| Market Cap | £512.1m |
| Enterprise Value | £3.58bn |
| Revenue | £637.0m |
| Position in Universe | 3125th / 6642 |
Apollo Investment Corporation Reports Financial Results for the Quarter Ended September 30, 2020
Thu 5th November, 2020 9:00pm
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Fiscal Second Quarter and Other Recent Highlights:
* Net investment income per share for the quarter was $0.43 compared to $0.43
for the quarter ended June 30, 2020
* Net asset value per share as of the end of the quarter was $15.44 compared
to $15.29 as of June 30, 2020, an increase of 1.0% driven by a net gain on the
corporate lending portfolio((1)) and retained earnings, partially offset by a
net loss on Merx and on non-core and legacy assets((2))
* New investment commitments made during the quarter totaled $18 million((3))
* Gross fundings during the quarter totaled $106 million consisting of $54
million of term loans and $52 million of revolvers
* Gross exits during the quarter totaled $209 millions consisting of $13
million of term loan sales, $1 million of revolver sales, $108 million of term
loan repayments, and $87 million of gross revolver paydowns
* Net paydowns during the quarter totaled $103 million, consisting of $67
million of net term loan paydowns and $36 million of net revolver paydowns
- Gross paydowns subsequent to quarter end total approximately $130
million((4))
* Net leverage((5)) as of the end of the quarter was 1.56x, down from to 1.66x
as of June 30, 2020
* Declared a distribution of $0.31 per share and a supplemental distribution
of $0.05 per share for the quarter ending December 31, 2020
* $268 million of immediately available liquidity and $287 million of
additional capacity under the Senior Secured Facility as of September 30,
2020((6))
NEW YORK, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Apollo Investment Corporation
(NASDAQ: AINV) or the “Company,” or “Apollo Investment,” today
announced financial results for its second fiscal quarter ended September 30,
2020. The Company’s net investment income was $0.43 per share for the
quarter ended September 30, 2020, compared to $0.43 per share for the quarter
ended June 30, 2020. The Company’s net asset value (“NAV”) was $15.44
per share as of September 30, 2020, compared to $15.29 as of June 30, 2020.
On November 5, 2020, the Board of Directors declared a distribution of $0.31
per share payable on January 7, 2021 to shareholders of record as of
December 21, 2020. On November 5, 2020, the Company’s Board also declared a
supplemental distribution of $0.05 per share payable on January 7, 2021 to
shareholders of record as of December 21, 2020.
Mr. Howard Widra, Apollo Investment’s Chief Executive Officer commented,
“During the quarter, we made significant progress deleveraging to within our
target range of 1.40x to 1.60x. Net leverage at the end of September was
1.56x, down from 1.66x at the end of June. The quarter over quarter decline
was due to a combination of strong repayment activity, a net gain on the
portfolio, and retained earnings. Notably, repayments included $21 million
from non-core assets which we continue to seek to monetize. Furthermore, we
have visibility into meaningful additional repayments for the remainder
December quarter. Given the reduction in our leverage, combined with our
better understanding of how our portfolio companies have been affected by the
pandemic and of their expected performance, we can now shift our focus to
making new commitments.” Mr. Howard Widra continued, “As announced last
quarter, in addition to a quarterly base distribution of 31-cents per share,
the Company’s Board of Directors expects to also declare a supplemental
distribution in an amount to be determined each quarter. To that end, the
Board of Directors, at the recommendation of management, has declared a 5-cent
supplemental distribution for the quarter.”
___________________
((1) Corporate lending portfolio includes leveraged lending, life sciences,
asset based and lender finance. Excludes Merx Aviation Finance, LLC ("Merx")
and non-core and legacy assets.)
((2) Non-core and legacy assets include oil & gas, renewables, shipping,
commodities, and legacy assets.)
((3) For corporate lending portfolio.)
((4) From October 1, 2020 through November 3, 2020.)
((5) The Company’s net leverage ratio is defined as debt outstanding plus
payable for investments purchased, less receivable for investments sold, less
cash and cash equivalents, less foreign currencies, divided by net assets.)
((6) As of September 30, 2020, aggregate lender commitments under the Senior
Secured Facility (the “Facility”) totaled $1.81 billion and there were
$1.25 billion of outstanding borrowings under the Facility and $0.2 million of
letters of credit issued under the Facility. Accordingly, there was $555
million of unused capacity under the Facility as of September 30, 2020, which
is subject to compliance with a borrowing base that applies different advance
rates to different types of assets in the Company’s portfolio. As of
September 30, 2020, the Company had immediate access to $268 million under the
Facility based on the Company’s borrowing base and $287 million of
additional capacity.)
FINANCIAL HIGHLIGHTS
($ in billions, except per share data) September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019
Total assets $ 2.65 $ 2.81 $ 2.87 $ 3.06 $ 2.89
Investment portfolio (fair value) $ 2.59 $ 2.67 $ 2.79 $ 2.97 $ 2.80
Debt outstanding $ 1.60 $ 1.76 $ 1.79 $ 1.79 $ 1.58
Net assets $ 1.01 $ 1.00 $ 1.02 $ 1.22 $ 1.25
Net asset value per share $ 15.44 $ 15.29 $ 15.70 $ 18.27 $ 18.69
Debt-to-equity ratio 1.59 x 1.76 x 1.75 x 1.47 x 1.26 x
Net leverage ratio (1) 1.56 x 1.66 x 1.71 x 1.43 x 1.24 x
___________________
((1) The Company’s net leverage ratio is defined as debt outstanding plus
payable for investments purchased, less receivable for investments sold, less
cash and cash equivalents, less foreign currencies, divided by net assets.)
PORTFOLIO AND INVESTMENT ACTIVITY
Three Months Ended Six Months Ended
September 30, September 30,
(in millions)* 2020 2019 2020 2019
Investments made in portfolio companies $ 105.9 $ 476.7 $ 243.8 $ 912.0
Investments sold (14.2 ) (20.0 ) (83.3 ) (29.6 )
Net activity before repaid investments 91.7 456.7 160.5 882.4
Investments repaid (194.8 ) (249.7 ) (358.6 ) (460.4 )
Net investment activity $ (103.1 ) $ 207.1 $ (198.1 ) $ 422.1
Portfolio companies at beginning of period 149 129 152 113
Number of new portfolio companies 2 14 3 35
Number of exited portfolio companies (4 ) (4 ) (8 ) (9 )
Portfolio companies at end of period 147 139 147 139
Number of investments made in existing portfolio companies 29 48 49 54
___________________
(* Totals may not foot due to rounding.)
OPERATING RESULTS
Three Months Ended Six Months Ended
September 30, September 30,
(in millions)* 2020 2019 2020 2019
Net investment income $ 27.9 $ 35.7 $ 56.1 $ 70.3
Net realized and change in unrealized gains (losses) 5.4 (28.7 ) (19.9 ) (39.4 )
Net increase in net assets resulting from operations $ 33.3 $ 7.1 $ 36.3 $ 30.9
(per share)* (1)
Net investment income on per average share basis $ 0.43 $ 0.53 $ 0.86 $ 1.03
Net realized and change in unrealized gain (loss) per share 0.08 (0.43 ) (0.30 ) (0.58 )
Earnings per share — basic $ 0.51 $ 0.10 $ 0.56 $ 0.45
___________________
(* Totals may not foot due to rounding.)
((1) Based on the weighted average number of shares outstanding for the period
presented.)
SHARE REPURCHASE PROGRAM *
During the three months ended September 30, 2020, the Company did not
repurchase any shares.
Since the inception of the share repurchase program and through November 4,
2020, the Company repurchased 13,654,578 shares at a weighted average price
per share of $16.34, inclusive of commissions, for a total cost of $223.1
million, leaving a maximum of $26.9 million available for future purchases
under the current Board authorization of $250 million.
(* Share figures have been adjusted for the 1-for-3 reverse stock split which
was completed after market close on November 30, 2018.)
LIQUIDITY
As of September 30, 2020, the Company’s outstanding debt obligations,
excluding deferred financing cost and debt discount of $4.3 million, totaled
$1.605 billion which was comprised of $350 million of Senior Unsecured Notes
(the “2025 Notes”) which will mature on March 3, 2025 and $1.255 billion
outstanding under the Facility. As of September 30, 2020, $0.2 million in
standby letters of credit were issued through the Facility. The available
remaining capacity under the Facility was $555 million as of September 30,
2020, which is subject to compliance with a borrowing base that applies
different advance rates to different types of assets in the Company’s
portfolio.
CONFERENCE CALL / WEBCAST AT 5:00 PM EST ON NOVEMBER 5, 2020
The Company will host a conference call on Thursday, November 5, 2020 at 5:00
p.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 #8085183 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 Events
Calendar in the Shareholder 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 November 26, 2020 by dialing (800)
585-8367; international callers please dial (404) 537-3406, reference
Conference ID #8085183. A replay of the audio webcast will also be available
later that same day. To access the audio webcast please visit the Events
Calendar in the Shareholder section of the Company’s 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
Shareholders section of the Company’s website under Presentations at
www.apolloic.com.
Our portfolio composition and weighted average yields as of September 30,
2020, June 30, 2020, March 31, 2020, December 31, 2019, and September 30, 2019
were as follows:
September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019
Portfolio composition, at fair value:
First lien secured debt 77 % 78 % 81 % 78 % 74 %
Second lien secured debt 11 % 12 % 13 % 14 % 17 %
Total secured debt 89 % 90 % 94 % 92 % 91 %
Unsecured debt 1 % — % — % — % — %
Structured products and other 0 % 0 % 0 % 0 % 2 %
Preferred equity 0 % 0 % 0 % 1 % 1 %
Common equity/interests and warrants 10 % 10 % 6 % 7 % 6 %
Weighted average yields, at amortized cost (1):
First lien secured debt (2) 7.9 % 7.9 % 8.5 % 8.7 % 9.0 %
Second lien secured debt (2) 9.8 % 9.8 % 10.2 % 10.7 % 11.0 %
Total secured debt (2) 8.1 % 8.1 % 8.7 % 9.1 % 9.4 %
Unsecured debt portfolio (2) 5.3 % — % — % — % — %
Total debt portfolio (2) 8.1 % 8.1 % 8.7 % 9.1 % 9.4 %
Total portfolio (3) 6.7 % 6.8 % 8.0 % 8.6 % 8.9 %
Interest rate type, at fair value (4):
Fixed rate amount — — — — —
Floating rate amount $2.0 billion $2.1 billion $2.2 billion $2.2 billion $2.0 billion
Fixed rate, as percentage of total — — — — —
Floating rate, as percentage of total 100 % 100 % 100 % 100 % 100 %
Interest rate type, at amortized cost (4):
Fixed rate amount — — — — —
Floating rate amount $2.1 billion $2.2 billion $2.3 billion $2.3 billion $2.0 billion
Fixed rate, as percentage of total — % — % — % — % — %
Floating rate, as percentage of total 100 % 100 % 100 % 100 % 100 %
((1) An investor’s yield may be lower than the portfolio yield due to sales
loads and other expenses.)
((2) Exclusive of investments on non-accrual status.)
((3) Inclusive of all income generating investments, non-income generating
investments and investments on non-accrual status.)
((4) The interest rate type information is calculated using the Company’s
corporate debt portfolio and excludes aviation, oil and gas, structured
credit, renewables, shipping, commodities and investments on non-accrual
status.)
APOLLO INVESTMENT CORPORATION
STATEMENTS OF ASSETS AND LIABILITIES
(In thousands, except share and per share data)
September 30, 2020 March 31, 2020
(Unaudited)
Assets
Investments at fair value:
Non-controlled/non-affiliated investments (cost — $2,110,330 and $2,298,548, respectively) $ 2,046,701 $ 2,191,327
Non-controlled/affiliated investments (cost — $146,430 and $135,346, respectively) 56,976 60,241
Controlled investments (cost — $633,778 and $655,719, respectively) 482,906 533,865
Cash and cash equivalents 25,825 37,301
Foreign currencies (cost — $5,539 and $6,369, respectively) 5,509 6,375
Receivable for investments sold 609 978
Interest receivable 16,876 19,151
Dividends receivable 3,160 5,034
Deferred financing costs 13,732 16,054
Prepaid expenses and other assets 1,075 732
Total Assets $ 2,653,369 $ 2,871,058
Liabilities
Debt $ 1,600,328 $ 1,794,617
Payable for investments purchased 39 —
Distributions payable 23,493 29,367
Management and performance-based incentive fees payable 9,262 10,289
Interest payable 2,440 2,887
Accrued administrative services expense 2,324 2,796
Other liabilities and accrued expenses 7,745 6,787
Total Liabilities $ 1,645,631 $ 1,846,743
Net Assets $ 1,007,738 $ 1,024,315
Net Assets
Common stock, $0.001 par value (130,000,000 shares authorized; 65,259,176 and 65,259,176 shares issued and outstanding, respectively) $ 65 $ 65
Capital in excess of par value 2,099,876 2,099,876
Accumulated under-distributed (over-distributed) earnings (1,092,203 ) (1,075,626 )
Net Assets $ 1,007,738 $ 1,024,315
Net Asset Value Per Share $ 15.44 $ 15.70
APOLLO INVESTMENT CORPORATION
STATEMENTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
Three Months Ended September 30, Six Months Ended September 30,
2020 2019 2020 2019
Investment Income
Non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind (“PIK”) interest income) $ 46,139 $ 51,489 $ 93,502 $ 98,493
Dividend income — 5 — 66
PIK interest income 925 732 2,073 5,438
Other income 163 2,185 547 3,122
Non-controlled/affiliated investments:
Interest income (excluding PIK interest income) 4 — 12 —
Dividend income 331 313 676 632
PIK interest income — — — —
Other income — — — —
Controlled investments:
Interest income (excluding PIK interest income) 6,438 12,271 12,331 24,910
Dividend income 891 2,451 1,691 2,451
PIK interest income — 872 728 1,722
Other income — — — —
Total Investment Income $ 54,891 $ 70,318 $ 111,560 $ 136,834
Expenses
Management fees $ 9,262 $ 10,190 $ 18,786 $ 19,729
Performance-based incentive fees — 1,911 — 1,911
Interest and other debt expenses 13,845 18,735 29,237 36,246
Administrative services expense 1,201 1,542 2,389 3,267
Other general and administrative expenses 2,777 2,305 5,224 5,609
Total expenses 27,085 34,683 55,636 66,762
Management and performance-based incentive fees waived — — — —
Expense reimbursements (100 ) (99 ) (210 ) (196 )
Net Expenses $ 26,985 $ 34,584 $ 55,426 $ 66,566
Net Investment Income $ 27,906 $ 35,734 $ 56,134 $ 70,268
Net Realized and Change in Unrealized Gains (Losses)
Net realized gains (losses):
Non-controlled/non-affiliated investments $ 590 $ (5,701 ) $ (8,039 ) $ (5,710 )
Non-controlled/affiliated investments (3,653 ) — (3,653 ) 1,089
Controlled investments — — — —
Foreign currency transactions 64 (1,387 ) 276 (1,185 )
Extinguishment of debt — (4,375 ) — (4,375 )
Net realized gains (losses) (2,999 ) (11,463 ) (11,416 ) (10,181 )
Net change in unrealized gains (losses):
Non-controlled/non-affiliated investments 21,680 (7,463 ) 32,248 (11,508 )
Non-controlled/affiliated investments 5,957 (1,659 ) (3,006 ) (750 )
Controlled investments (11,769 ) (13,069 ) (29,017 ) (22,765 )
Foreign currency translations (7,486 ) 4,988 (8,660 ) 5,833
Net change in unrealized gains (losses) 8,382 (17,203 ) (8,435 ) (29,190 )
Net Realized and Change in Unrealized Gains (Losses) $ 5,383 $ (28,666 ) $ (19,851 ) $ (39,371 )
Net Increase (Decrease) in Net Assets Resulting from Operations $ 33,289 $ 7,068 $ 36,283 $ 30,897
Earnings (Loss) Per Share — Basic $ 0.51 $ 0.10 $ 0.56 $ 0.45
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 invests primarily in various
forms of debt investments, including secured and unsecured debt, loan
investments, and/or equity in private middle-market companies. The Company may
also invest in the securities of public companies and structured products and
other investments such as collateralized loan obligations and credit-linked
notes. 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, Inc., a leading global
alternative investment manager. For more information, please visit
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; our contractual arrangements and relationships with third parties;
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: macro- and micro-economic impact of the COVID-19 pandemic;
the severity and duration of the COVID-19 pandemic; actions taken by
governmental authorities to contain the COVID-19 pandemic or treat its impact;
the impact of the COVID-19 pandemic on our financial condition, results of
operations, liquidity and capital resources; 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 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.
For additional information about the COVID-19 pandemic and its potential
impact on the Company’s results of operations and financial condition,
please refer to the COVID-19 Developments section and additional disclosure in
our Form 10-Q for the period ended September 30, 2020.
Contact
Elizabeth Besen
Investor Relations Manager
Apollo Investment Corporation
212.822.0625
ebesen@apollo.com
(https://www.globenewswire.com/NewsRoom/AttachmentNg/53ecb91e-18d3-4f16-9050-e10a275ab473)
GlobeNewswire, Inc. 2020
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