WOODSIDE, Calif., Aug. 6, 2015 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV") (Nasdaq:GSVC), today announced financial results for the second quarter ended June 30, 2015. Net assets totaled $303.6 million, or $15.72 per share, at June 30, 2015, as compared to $15.66 per share at March 31, 2015 and $14.86 per share at June 30, 2014.
"We are pleased that our NAV per share is again at an all-time high this quarter," said Michael Moe, Chief Executive Officer of GSV Capital. "Our focus remains on systematically identifying and investing in what we believe are the world's most dynamic growth companies, while capitalizing on attractive opportunities to monetize positions in our portfolio."
Investment Portfolio as of June 30, 2015
At June 30, 2015, GSV owned positions in 52 portfolio companies with an aggregate fair value of $390.3 million. Excluding Treasuries, the Company's three largest investments comprised 30.0% of the total portfolio value, while its top ten portfolio companies accounted for approximately 57.4% of the total portfolio value.
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Top Ten Investments at June 30, 2015 |
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|
|
|
|
|
Fair |
% of Total |
|
$ in millions (rounded) |
Value |
Portfolio |
|
Palantir Technologies, Inc. |
$ 48.8 |
12.5% |
|
2U, Inc. |
38.2 |
9.8 |
|
Dropbox, Inc. |
30.0 |
7.7 |
|
Twitter, Inc. |
29.0 |
7.4 |
|
Coursera, Inc. |
14.5 |
3.7 |
|
Solexel, Inc. |
14.0 |
3.6 |
|
PayNearMe, Inc. |
14.0 |
3.6 |
|
SugarCRM, Inc. |
12.3 |
3.2 |
|
Dataminr, Inc. |
11.9 |
3.0 |
|
Avenues Global Holdings, LLC |
11.3 |
2.9 |
|
Total (rounded) |
$ 224.0 |
57.4% |
Of the five key investment themes GSV has identified in its portfolio, Education Technology continues to be its largest commitment, constituting 36.4% of the total portfolio. Cloud Computing and Big Data represents 32.1% of the total portfolio, and Social Mobile, Marketplaces and Sustainability make up 15.3%, 10.4% and 5.8% of the total portfolio, respectively.
Second Quarter 2015 Portfolio Investment Activity
In the second quarter of 2015, GSV invested approximately $1.6 million, including in two follow-on investments of $1.5 million in GSVlabs and $50,000 in EarlyShares. Subsequent to quarter-end, GSV also invested $4.0 million in Enjoy Technology.
During the second quarter of 2015, GSV sold shares in the following public portfolio company:
|
|
|
Average |
|
|
|
|
|
Shares |
Share |
Net |
Realized |
|
|
Portfolio Company |
Sold |
Price |
Proceeds |
Gain/(Loss) |
IRR |
|
|
|
|
|
|
|
|
Twitter, Inc. |
400,000 |
$51.52 |
$20,608,011 |
$13,666,419 |
43.5% |
At June 30, 2015, GSV had investments in 48 private companies and 4 public companies (2U, Chegg, Cricket Media (f/k/a ePals Inc.) and Twitter). In general, management intends to liquidate its public securities holdings within one year following the expiration of the corresponding IPO lock-up.
At quarter-end, GSV had $18.0 million of borrowing capacity available to it under its credit facility. As of August 6, 2015, GSV has $18.0 million of borrowing capacity available to it under its credit facility.
As GSV's portfolio matures, and to the extent GSV realizes a cumulative net realized gain, GSV intends to distribute a portion of such gains to shareholders in the form of a distribution, subject to approval by the Board of Directors, though it is not certain as to when GSV will be able to do so.
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Second Quarter 2015 Financial Results |
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Three Months Ended |
Three Months Ended |
|
|
June 30, 2015 |
June 30, 2014 |
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|
$ in millions |
|
$ in millions |
|
|
|
(rounded) |
per share |
(rounded) |
per share |
|
Net investment loss |
($3.6) |
($0.19) |
($3.4) |
($0.18) |
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|
|
|
|
Net realized gain(loss) |
$13.6 |
$0.71 |
($7.2) |
($0.38) |
|
|
|
|
|
|
|
(Provision)/Benefit for taxes on net realized capital gains/losses |
($5.6) |
($0.29) |
$3.0 |
$0.15 |
|
|
|
|
|
|
|
Net change in unrealized appreciation/(depreciation) of investments |
($5.7) |
($0.29) |
$11.5 |
$0.60 |
|
|
|
|
|
|
|
(Provision)/Benefit for taxes on unrealized appreciation/ (depreciation) of investments |
$2.4 |
$0.12 |
($4.7) |
($0.24) |
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|
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Net increase/(decrease) in net assets resulting from operations - basic |
$1.1 |
$0.06 |
($0.9) |
($0.05) |
Weighted average common basic shares outstanding were approximately 19.3 million for the three months ended June 30, 2015 and June 30, 2014.
Our liquid assets ended the quarter at $102.8 million, consisting of $8.0 million of cash, $18.0 million of unused borrowings available under the credit facility, and $76.7 million of public securities not subject to lock-up agreements, of which $38.5 million are subject to periodic sales restrictions.
Conference Call and Webcast
Management will hold a conference call and webcast for investors today at 2:00 p.m. PT (5:00 p.m. ET). The conference call number for U.S. participants is 888-299-7212, and the conference call number for participants outside the U.S. is 1 719-457-2659. The conference ID number for both call numbers is 5002085. Additionally, interested parties can listen to a live webcast of the call from the "Investors" section of GSV Capital's website at http://investors.gsvcap.com/. An archived replay of the webcast will also be available for 12 months following the live presentation.
A replay of the conference call may be accessed through August 13, 2015 by dialing 888-203-1112 (U.S.) or 1 719-457-0820 (international), using conference ID number 5002085.
About GSV Capital Corp.
GSV Capital Corp. (GSVC) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. Led by industry veteran Michael Moe, the fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. GSV Capital is headquartered in Woodside, CA. www.gsvcap.com
Follow GSV Capital on Twitter: @gsvcap
The GSV Capital Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12750
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of our future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the SEC. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein, unless required to do so by law.
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GSV CAPITAL CORP. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES |
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|
|
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June 30, 2015 |
December 31, 2014 |
|
ASSETS |
(Unaudited) |
|
|
Investments at fair value: |
|
|
|
Investments in controlled securities (cost of $19,031,912 and $17,933,651 respectively) (1) |
$ 20,666,877 |
$ 18,819,335 |
|
Investments in affiliated securities (cost of $85,207,517 and $80,760,208 respectively) (1) |
75,297,514 |
70,172,313 |
|
Investments in non-controlled/non-affiliated securities (cost of $194,193,416 and $202,417,830 respectively) |
294,378,268 |
281,992,669 |
|
Investments in treasury bill (cost of $100,001,569 and $100,001,692 respectively) |
100,001,569 |
100,000,056 |
|
Investments owned and pledged (amortized cost of $5,485,542 and $7,286,332 respectively) (2) |
5,498,112 |
7,298,042 |
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Total Investments (cost of $403,919,956 and $408,399,713 respectively) |
495,842,340 |
478,282,415 |
|
|
|
|
|
Cash |
8,049,760 |
3,472,880 |
|
Restricted cash |
41,181 |
48,889 |
|
Due from: |
|
|
|
GSV Asset Management(1) |
1,124 |
204,825 |
|
Portfolio companies(1) |
68,371 |
85,356 |
|
Interest and dividends receivable |
119,248 |
26,671 |
|
Prepaid expenses and other assets |
63,982 |
596,926 |
|
Deferred financing costs |
2,514,558 |
2,928,134 |
|
Total Assets |
506,700,564 |
485,646,096 |
|
|
|
|
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LIABILITIES |
|
|
|
Due to: |
|
|
|
GSV Asset Management(1) |
29,325 |
23,396 |
|
Accounts payable and accrued expenses |
62,169 |
292,950 |
|
Accrued incentive fees (1) |
23,914,966 |
14,137,899 |
|
Accrued management fees (1) |
670,128 |
641,276 |
|
Accrued interest payable |
1,056,563 |
1,139,458 |
|
Payable for securities purchased |
89,501,569 |
90,001,692 |
|
Current taxes payable |
134,733 |
134,733 |
|
Deferred tax liability |
19,153,303 |
6,907,666 |
|
Line of credit payable |
-- |
18,000,000 |
|
Convertible Senior Notes embedded derivative liability |
-- |
1,000 |
|
Convertible Senior Notes payable 5.25% due September 15, 2018 |
68,528,012 |
68,462,353 |
|
Total Liabilities |
203,050,768 |
199,742,423 |
|
Commitments and contingencies (Note 6) |
|
|
|
Net Assets |
$ 303,649,796 |
$ 285,903,673 |
|
|
|
|
|
NET ASSETS |
|
|
|
Common stock, par value $0.01 per share |
|
|
|
(100,000,000 authorized; 19,320,100 issued and outstanding) |
$ 193,201 |
$ 193,201 |
|
Paid-in capital in excess of par |
275,837,514 |
275,837,514 |
|
Accumulated net investment loss |
(43,157,161) |
(31,972,292) |
|
Accumulated net realized gain on investments |
16,386,895 |
496,782 |
|
Accumulated net unrealized appreciation on investments |
54,389,347 |
41,348,468 |
|
Net Assets |
$ 303,649,796 |
$ 285,903,673 |
|
|
|
|
|
Net Asset Value Per Share |
$ 15.72 |
$ 14.80 |
|
|
|
|
|
(1) This balance is a related-party transaction. |
|
(2) In accordance with the terms of the Company's Convertible Senior Notes payable, the Company deposited $10,867,500 in an escrow account with the Trustee. These funds were used to purchase U.S. Treasury Strips with an original cost of $10,845,236. As of June 30, 2015, three of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement. |
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GSV CAPITAL CORP. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(Unaudited) |
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|
|
2015 |
2014 |
2015 |
2014 |
|
INVESTMENT INCOME |
|
|
|
|
|
Interest income from controlled securities (1) |
$ -- |
$ 667 |
$ -- |
$ 5,733 |
|
Interest income from affiliated securities(1) |
69,165 |
68,591 |
120,396 |
103,453 |
|
Interest income from non-controlled/non-affiliated securities |
7,945 |
27,775 |
15,738 |
27,775 |
|
Dividend income from non-controlled/non-affiliated securities |
46,781 |
-- |
46,781 |
887 |
|
Total Investment Income |
123,891 |
97,033 |
182,915 |
137,848 |
|
|
|
|
|
|
|
OPERATING EXPENSES |
|
|
|
|
|
Management fees (1) |
2,010,385 |
1,933,663 |
3,931,513 |
3,689,859 |
|
Incentive fees (1) |
1,565,339 |
844,633 |
9,777,067 |
1,814,285 |
|
Costs incurred under administration agreement(1) |
785,036 |
929,701 |
1,587,432 |
1,838,233 |
|
Directors' fees |
107,500 |
65,000 |
192,806 |
130,000 |
|
Professional fees |
394,228 |
402,555 |
735,972 |
859,094 |
|
Interest and credit facility expense |
1,228,783 |
1,533,971 |
2,597,586 |
2,713,696 |
|
Other expenses |
143,153 |
186,028 |
264,478 |
318,927 |
|
Gain on fair value adjustment for embedded derivative |
(1,000) |
(20,000) |
(1,000) |
(640,000) |
|
Total Operating Expenses |
6,233,424 |
5,875,551 |
19,085,854 |
10,724,094 |
|
|
|
|
|
|
|
Benefit for taxes on net investment loss |
2,494,459 |
2,359,369 |
7,718,070 |
4,372,283 |
|
|
|
|
|
|
|
Net Investment Loss |
(3,615,074) |
(3,419,149) |
(11,184,869) |
(6,213,963) |
|
|
|
|
|
|
|
Net Realized Gain(Loss): |
|
|
|
|
|
From affiliated securities |
-- |
-- |
-- |
10,419 |
|
From non-controlled/non-affiliated securities |
13,636,614 |
(7,249,566) |
26,855,017 |
671,760 |
|
Net Realized Gain(Loss) on investments |
13,636,614 |
(7,249,566) |
26,855,017 |
682,179 |
|
|
|
|
|
|
|
(Provision)/Benefit for taxes on realized gains/losses on investments |
(5,567,830) |
2,959,998 |
(10,964,904) |
(278,533) |
|
|
|
|
|
|
|
Net Change in Unrealized Appreciation |
|
|
|
|
|
(Depreciation) on investments: |
|
|
|
|
|
From controlled securities |
(8,277) |
(24,693) |
(33,572) |
(439,092) |
|
From affiliated securities |
(804,967) |
(3,566,018) |
(657,088) |
(3,764,212) |
|
From non-controlled/non-affiliated securities |
(4,931,155) |
15,063,436 |
22,730,342 |
12,602,350 |
|
Total Change in Unrealized Appreciation (Depreciation) on investments |
(5,744,399) |
11,472,725 |
22,039,682 |
8,399,046 |
|
|
|
|
|
|
|
(Provision)/Benefit for taxes on unrealized appreciation/depreciation on investments |
2,372,190 |
(4,684,314) |
(8,998,803) |
(3,429,331) |
|
|
|
|
|
|
|
Net Increase(Decrease) in Net Assets Resulting from Operations |
$ 1,081,501 |
$ (920,306) |
$ 17,746,123 |
$ (840,602) |
|
|
|
|
|
|
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Net Increase(Decrease) in Net Assets Resulting from Operations per Common Share |
|
|
|
|
|
Basic |
$ 0.06 |
$ (0.05) |
$ 0.92 |
$ (0.04) |
|
Diluted(2) |
$ 0.06 |
$ (0.05) |
$ 0.81 |
$ (0.04) |
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding |
|
|
|
|
|
Basic |
19,320,100 |
19,320,100 |
19,320,100 |
19,320,100 |
|
Diluted(2) |
19,320,100 |
19,320,100 |
23,564,228 |
19,320,100 |
|
|
|
|
|
|
|
(1) This balance is a related-party transaction. |
|
(2) For the three months ended June 30, 2015, 4,244,128 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net increase in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive. |
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|
GSV CAPITAL CORP. AND SUBSIDIARIES |
|
FINANCIAL HIGHLIGHTS |
|
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Three months ended |
|
Three months ended |
|
|
|
June 30, 2015 |
|
June 30, 2014 |
|
|
Per Share Data: |
(Unaudited) |
|
(Unaudited) |
|
|
Net asset value at beginning of period |
$ 15.66 |
|
$ 14.91 |
|
|
Net investment loss |
(0.19) |
(1) |
(0.18) |
(1) |
|
Net realized gain(loss) |
0.71 |
(1) |
(0.38) |
(1) |
|
(Provision)/Benefit for taxes on Net Realized Capital Gains/Losses |
(0.29) |
(1) |
0.15 |
(1) |
|
Net change in Unrealized Appreciation(Depreciation) of Investments |
(0.29) |
(1) |
0.60 |
(1) |
|
(Provision)/Benefit for taxes on Unrealized Appreciation/(Deprecation) of Investments |
0.12 |
(1) |
(0.24) |
(1) |
|
Net asset value at end of period |
$ 15.72 |
|
$ 14.86 |
|
|
|
|
|
|
|
|
Per share market value at end of period |
$ 10.31 |
|
$ 10.57 |
|
|
Total return based on market value |
5.20% |
(2) |
4.24% |
(2) |
|
Total return based on net asset value |
0.38% |
(2) |
(0.34)% |
(2) |
|
Shares outstanding at end of period |
19,320,100 |
|
19,320,100 |
|
|
|
|
|
|
|
|
Ratio / Supplemental Data: |
|
|
|
|
|
Net assets at end of period |
$ 303,649,796 |
|
$ 287,125,842 |
|
|
Average net assets |
$ 295,688,346 |
|
$ 275,480,154 |
|
|
|
|
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|
|
Annualized ratios |
|
|
|
|
|
Ratio of gross operating expenses to average net assets (3) |
8.55% |
|
8.55% |
|
|
Ratio of net income tax provisions to average net assets(3) |
(0.96)% |
|
(0.92)% |
|
|
Ratio of net operating expenses to average net assets (3) |
7.59% |
|
7.63% |
|
|
|
|
|
|
|
|
Ratio of net investment loss to average net assets (3) |
(4.96)% |
|
(4.98)% |
|
|
|
|
|
|
|
|
|
Six months ended |
|
Six months ended |
|
|
|
June 30, 2015 |
|
June 30, 2014 |
|
|
Per Share Data |
(Unaudited) |
|
(Unaudited) |
|
|
Net asset value at beginning of period |
$ 14.80 |
|
$ 14.91 |
|
|
Net investment loss |
(0.58) |
(1) |
(0.32) |
(1) |
|
Realized gain |
1.39 |
(1) |
0.04 |
(1) |
|
Provision for taxes on net realized capital gains |
(0.57) |
(1) |
(0.01) |
(1) |
|
Net change in unrealized appreciation |
1.15 |
(1) |
0.43 |
(1) |
|
Provision for taxes on unrealized appreciation of investments |
(0.47) |
(1) |
(0.19) |
(1) |
|
Net asset value at end of period |
$ 15.72 |
|
$ 14.86 |
|
|
|
|
|
|
|
|
Per share market value at end of period |
$ 10.31 |
|
$ 10.57 |
|
|
Total return based on market value |
19.47% |
(2) |
(12.57)% |
(2) |
|
Total return based on net asset value |
6.22% |
(2) |
(0.34)% |
(2) |
|
Shares outstanding at end of period |
19,320,100 |
|
19,320,100 |
|
|
|
|
|
|
|
|
Ratio / Supplemental Data: |
|
|
|
|
|
Net assets at end of period |
303,649,796 |
|
287,125,842 |
|
|
Average net assets |
293,486,377 |
|
281,410,486 |
|
|
|
|
|
|
|
|
Annualized ratios |
|
|
|
|
|
Ratio of gross operating expenses to average net assets (3) |
13.11% |
|
7.68% |
|
|
Ratio of net income tax provisions to average net assets(3) |
(8.41)% |
|
(0.48)% |
|
|
Ratio of net operating expenses to average net assets (3) |
4.70% |
|
7.20% |
|
|
|
|
|
|
|
|
Ratio of net investment loss to average net assets (3) |
(7.69)% |
|
(4.45)% |
|
|
|
|
|
|
|
|
(1) Based on weighted average number of shares outstanding for the year/period. |
|
(2) Total return based on market value is based on the change in market price per share between the opening and ending market values per share in the period. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share. |
|
(3) Financial Highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. Non-recurring expenses are not annualized. For the six months ended June 30, 2015, and 2014, the Company did not incur any non-recurring expenses. Because the ratios are calculated for the Company's common stock taken as a whole, an individual investor's ratios may vary from these ratios. |
CONTACT: GSV Capital Corp.
William Tanona
(650) 235-4769
IR@gsvam.com
