Apollo Investment Corp. (AINV) Misses Q4 EPS by $2.67

Apollo Investment Corp. (NASDAQ: AINV) reported Q4 EPS of ($2.22), $2.67 worse than the analyst estimate of $0.45. Revenue for the quarter came in at $71.6 million versus the consensus estimate of $69.98 million.

Fiscal Fourth Quarter and Other Recent Highlights:

• Net investment income per share for the quarter was $0.59 compared to $0.54 for the quarter ended December 31, 2019
• Net asset value per share as of the end of the quarter was $15.70 compared to $18.27 as of December 31, 2019, a 14.1% decrease driven by the disruption in the global economy which has resulted from the COVID-19 pandemic and which has negatively impacted the fair value of the Company’s investment portfolio
• New investment commitments made during the quarter totaled $153 million (1)
• Gross fundings during the quarter totaled $210 million (2)
• Net fundings during the quarter totaled $8 million, including $47 million for revolvers
• Net leverage (3) as of the end of the quarter was 1.71x, compared to 1.43x as of December 31, 2019
• Received 97% of contractual interest payments during the quarter
• Declared a distribution of $0.45 per share
• Repurchased 1,286,565 shares of common stock at a weighted average price per share of $11.62, inclusive of commissions, for an aggregate cost of $15.0 million during the quarter
• Commitments to the Company’s Senior Secured Facility (“Facility”) increased by $100 million during the quarter from an existing lender bringing total commitments to $1.81 billion
• $224 million of immediately available liquidity and $131 million of additional capacity under the Facility as of March 31, 2020 (4)

Mr. Howard Widra, Chief Executive Officer commented, “Prior to the onset of the COVID-19 pandemic, our business continued to execute on its business plan of de-risking and diversifying its portfolio, and as our net investment income for the quarter shows, we were continuing to improve our underlying performance metrics. As a result, we entered this volatile period with a well-diversified senior corporate lending portfolio which we believe will generally withstand the current volatility. However, our non-core portfolio continued to pressure our performance with the economic volatility disproportionately impacting that portfolio. In this regard, non-core and legacy assets accounted for half of the net loss incurred during the period, while only representing 10% of the total portfolio at fair value.”

Mr. Widra continued, “Going forward, we are focused on being good partners to our portfolio companies and working with them to manage through these unprecedented times. In addition, we are spending significant time with our Merx team to ensure that we protect the long-term value of our market leading business. In this regard, we believe our diversified fleet and durable financing structure, and growing servicing fee stream gives us good tools to navigate this challenging time.”

Mr. Gregory W. Hunt, Chief Financial Officer commented, “In February 2020, we were pleased to secure an additional $100 million commitment to the Company’s revolving credit facility, bringing total commitments to $1.81 billion. As of March 31, 2020, we were in compliance with all covenants under our revolving credit facility. We believe that we have sufficient available liquidity to meet potential funding requirements and withstand additional asset depreciation.”

For earnings history and earnings-related data on Apollo Investment Corp. (AINV) click here.

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