PHILADELPHIA, Nov. 9, 2016 /PRNewswire/ -- FS Investment
Corporation (NYSE: FSIC), a publicly traded business development company focused on providing customized credit solutions to
private middle market U.S. companies, announced its operating results for the quarter ended September 30,
2016, and announced that its board of directors has declared its fourth quarter 2016 regular distribution.
Financial Highlights for the Quarter Ended September 30, 20161
- Net investment income of $0.20 per share, compared to $0.26
per share for the quarter ended September 30, 2015.
- Adjusted net investment income of $0.20 per share, compared to $0.21 per share for the quarter ended September 30, 2015.2
- Total net realized gain of $0.01 per share and total net change in unrealized appreciation
of $0.26 per share, compared to a total net realized loss of $0.09
per share and a total net change in unrealized depreciation of $0.20 per share for the quarter
ended September 30, 2015.
- Paid cash distributions to stockholders totaling $0.22275 per share.3
- Total purchases of $217.3 million versus $290.8 million of
sales and repayments.
- Net asset value of $9.42 per share, compared to $9.18 per
share as of June 30, 2016.
"Corporate credit markets rallied in the third quarter of 2016 amid generally solid U.S. economic conditions and stable
commodity prices," said Michael C. Forman, Chairman and Chief Executive Officer of FSIC. "Given
the continued strength of the credit markets, we took gains where appropriate and continued to free up capital to take advantage
of a very healthy pipeline of new investments."
Declaration of Regular Distribution for Fourth Quarter 2016
FSIC's board of directors has declared a regular cash distribution for the fourth quarter of $0.22275 per share, which will be paid on or about January 4, 2017, to
stockholders of record as of the close of business on December 21, 2016.
Summary Consolidated Results
|
|
Three Months Ended
|
|
(dollars in thousands, except per share data)
(all per share amounts are basic and diluted)1
|
September 30, 2016
|
June 30, 2016
|
September 30, 2015
|
|
Total investment income
|
$100,557
|
$110,211
|
$103,668
|
|
Net investment income
|
49,003
|
56,840
|
63,766
|
|
Net increase (decrease) in net assets resulting from operations
|
114,369
|
140,157
|
(5,279)
|
|
|
|
|
|
Net investment income per share
|
$0.20
|
$0.23
|
$0.26
|
|
Adjusted net investment income per share2
|
$0.20
|
$0.24
|
$0.21
|
|
Total net realized and unrealized gain (loss) per share
|
$0.27
|
$0.34
|
$(0.29)
|
|
Net increase (decrease) in net assets resulting from operations (Earnings
per Share)
|
$0.47
|
$0.58
|
$(0.02)
|
|
Stockholder distributions per share3
|
$0.22275
|
$0.22275
|
$0.22275
|
|
Net asset value per share at period end
|
$9.42
|
$9.18
|
$9.64
|
|
Weighted average shares outstanding
|
243,488,590
|
243,435,681
|
242,227,762
|
|
Shares outstanding, end of period
|
243,488,590
|
243,488,590
|
242,274,372
|
|
|
|
|
|
|
|
|
(dollar amounts in thousands)
|
|
|
As of
September 30, 2016
|
As of
December 31, 2015
|
|
Total fair value of investments
|
|
$3,937,526
|
$4,029,371
|
|
Total assets
|
|
4,128,618
|
4,149,663
|
|
Total stockholders' equity
|
|
2,294,455
|
2,208,928
|
Portfolio Highlights as of September 30, 2016
- Total fair value of investments was $3.9 billion.
- Core investment strategies4 represented 97% of the portfolio by fair value as of September 30, 2016, including 85% from direct originations and 12% from opportunistic investments. Broadly
syndicated/other investments represented the remaining 3% of the portfolio by fair value.
- Gross portfolio yield prior to leverage (based on amortized cost and excluding non-income producing assets)5 was
10.2%, unchanged from June 30, 2016.
- Total commitments to direct originations (including unfunded commitments) made during the third quarter of 2016 was
$144.2 million in 7 companies, 6 of which were existing portfolio companies.
- As of September 30, 2016, approximately 0.7% of investments were on non-accrual based on fair
value.6
Total Portfolio Activity
|
Three Months Ended
|
|
(dollar amounts in thousands)
|
September 30, 2016
|
June 30, 2016
|
September 30, 2015
|
|
Purchases
|
$217,337
|
$389,802
|
$283,968
|
|
Sales and redemptions
|
(290,764)
|
(413,039)
|
(129,667)
|
|
Net portfolio activity
|
$(73,427)
|
$(23,237)
|
$154,301
|
|
|
Portfolio Data
|
As of September 30, 2016
|
As of December 31, 2015
|
|
Total fair value of investments
|
$3,937,526
|
$4,029,371
|
|
Number of Portfolio Companies
|
103
|
114
|
|
Average Annual EBITDA of Portfolio Companies
|
$104,100
|
$113,200
|
|
Weighted Average Purchase Price of Debt Investments
(as a % of par)
|
98.2%
|
98.3%
|
|
% of Investments on Non-Accrual
(based on fair value)6
|
0.7%
|
—
|
|
|
|
Asset Class (based on fair value)
|
|
|
Senior Secured Loans — First Lien
|
52%
|
54%
|
|
Senior Secured Loans — Second Lien
|
16%
|
15%
|
|
Senior Secured Bonds
|
4%
|
6%
|
|
Subordinated Debt
|
11%
|
11%
|
|
Collateralized Securities
|
2%
|
2%
|
|
Equity/Other
|
15%
|
12%
|
|
|
|
Portfolio Composition by Strategy (based on fair
value)4
|
|
|
Direct Originations
|
85%
|
85%
|
|
Opportunistic
|
12%
|
12%
|
|
Broadly Syndicated/Other
|
3%
|
3%
|
|
|
|
Interest Rate Type (based on fair value)
|
|
|
% Variable Rate
|
65.2%
|
66.8%
|
|
% Fixed Rate
|
20.4%
|
21.6%
|
|
% Income Producing Equity/Other Investments
|
3.7%
|
4.1%
|
|
% Non-Income Producing Equity/Other Investments
|
10.7%
|
7.5%
|
|
|
|
Yields (based on amortized cost)5
|
|
|
Gross Portfolio Yield Prior to Leverage
|
9.2%
|
9.8%
|
|
Gross Portfolio Yield Prior to Leverage — Excluding Non-Income Producing
Assets
|
10.2%
|
10.4%
|
|
|
|
|
|
Direct Origination Activity
|
Three Months Ended
|
|
(dollar amounts in thousands)
|
September 30, 2016
|
June 30, 2016
|
September 30, 2015
|
|
Total Commitments
(including unfunded commitments)
|
$144,226
|
$398,896
|
$192,637
|
|
Exited Investments (including partial paydowns)
|
(198,010)
|
(386,600)
|
(35,090)
|
|
Net Direct Originations
|
$(53,784)
|
$12,296
|
$157,547
|
|
Direct Originations Portfolio Data
|
As of September 30, 2016
|
As of December 31, 2015
|
|
Total Fair Value of Direct Originations
|
$3,343,749
|
$3,434,588
|
|
Number of Portfolio Companies
|
66
|
71
|
|
Average Annual EBITDA of Portfolio Companies
|
$67,700
|
$61,500
|
|
Average Leverage Through Tranche of Portfolio Companies —
Excluding Equity/Other and Collateralized Securities
|
4.8x
|
4.9x
|
|
% of Investments on Non-Accrual (based on Fair
Value)6
|
0.6%
|
—
|
|
|
|
|
|
Three Months Ended
|
|
New Direct Originations by Asset Class (including unfunded
commitments)
|
September 30, 2016
|
June 30, 2016
|
September 30, 2015
|
|
Senior Secured Loans — First Lien
|
94%
|
76%
|
69%
|
|
Senior Secured Loans — Second Lien
|
5%
|
6%
|
20%
|
|
Senior Secured Bonds
|
—
|
2%
|
1%
|
|
Subordinated Debt
|
—
|
3%
|
7%
|
|
Collateralized Securities
|
—
|
—
|
—
|
|
Equity/Other
|
1%
|
13%
|
3%
|
|
Average New Direct Origination Commitment Amount
|
$20,604
|
$49,862
|
$12,842
|
|
Weighted Average Maturity for New Direct Originations
|
12/11/2021
|
7/21/2020
|
10/8/2021
|
|
Gross Portfolio Yield Prior to Leverage (based on amortized cost) of New
Direct Originations Funded during Period5
|
9.3%
|
9.1%
|
9.0%
|
|
Gross Portfolio Yield Prior to Leverage (based on amortized cost) of New
Direct Originations Funded during Period —
Excluding Non-Income Producing Assets5
|
9.3%
|
10.8%
|
9.3%
|
|
Gross Portfolio Yield Prior to Leverage (based on amortized cost) of Direct
Originations Exited during Period5
|
8.6%
|
10.3%
|
10.8%
|
|
|
|
|
|
Leverage and Liquidity as of September 30, 2016
- Debt to equity ratio was 76%, based on $1.73 billion in total debt outstanding and
stockholders' equity of $2.29 billion. FSIC's weighted average effective interest rate (including
the effect of non-usage fees) was 3.95%.
- Cash and foreign currency of approximately $113.7 million and availability under its
financing arrangements of $218.7 million, subject to borrowing base and other limitations.
- Nineteen unfunded debt investments with aggregate unfunded commitments of $137.2
million.
Conference Call Information
FSIC will host a conference call at 10:00 a.m. (Eastern Time) on Thursday, November 10, 2016, to discuss its third quarter 2016 results. All interested parties are welcome to
participate. You can access the conference call by dialing (877) 443-2408 and using the conference ID 51809117 approximately 10
minutes prior to the call. The conference call will also be webcast, which can be accessed from the Investor Relations section of
FSIC's website at www.fsinvestmentcorp.com under Presentations and Reports.
A replay of the call will be available for a period of 30 days following the call by visiting the Investor Relations section
of FSIC's website at www.fsinvestmentcorp.com under Presentations and Reports.
Supplemental Information
An investor presentation of financial information will be made available prior to the call in the Investor Relations section
of FSIC's website at www.fsinvestmentcorp.com under Presentations and Reports.
About FS Investment Corporation
FS Investment Corporation (NYSE: FSIC) is a publicly traded business development company ("BDC") focused on providing
customized credit solutions to private middle market U.S. companies. FSIC seeks to invest primarily in the senior secured debt
and, to a lesser extent, the subordinated debt of private middle market companies to achieve the best risk-adjusted returns for
its investors. In connection with its debt investments, FSIC may receive equity interests such as warrants or options.
FSIC is advised by FB Income Advisor, LLC, an affiliate of FS Investments, and is sub-advised by GSO / Blackstone Debt Funds
Management LLC, an affiliate of GSO Capital Partners ("GSO"). GSO, with approximately $89.3 billion
in assets under management as of September 30, 2016, is the credit platform of Blackstone, one of
the world's leading managers of alternative investments. For more information, please visit www.fsinvestmentcorp.com.
About FS Investments
FS Investments is a leading asset manager that designs alternative investments to help institutional, advisory and individual
investors build better portfolios. Its solutions provide access to alternative asset classes and top managers through a spectrum
of structures, including business development companies, closed-end credit funds and operating companies. The firm is dedicated
to setting industry standards for investor-centric service, education and transparency.
FS Investments was founded in 2007 as Franklin Square Capital Partners. It is headquartered in Philadelphia with offices in Orlando and Washington, DC. The firm currently manages six funds with over $18 billion in
assets under management as of June 30, 2016, and co-manages an operating company. Its affiliated
broker-dealer, FS Investment Solutions, LLC (member FINRA/SIPC), distributes its offerings.
Visit www.fsinvestments.com to learn more.
Forward-Looking Statements and Important Disclosure Notice
This announcement may contain certain forward-looking statements, including statements with regard to future events or the
future performance or operations of FSIC. Words such as "believes," "expects," "projects," and "future" or similar expressions
are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties
in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected
in these forward-looking statements. Factors that could cause actual results to differ materially include changes in the economy,
risks associated with possible disruption in FSIC's operations or the economy generally due to terrorism or natural disasters,
future changes in laws or regulations and conditions in FSIC's operating area, and the price at which shares of FSIC's common
stock trade on the New York Stock Exchange. Some of these factors are enumerated in the filings FSIC makes with the SEC. FSIC
undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise.
The press release above contains summaries of certain financial and statistical information about FSIC. The information
contained in this press release is summary information that is intended to be considered in the context of FSIC's SEC filings and
other public announcements that FSIC may make, by press release or otherwise, from time to time. FSIC undertakes no duty or
obligation to update or revise the information contained in this press release. In addition, information related to past
performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which
cannot be assured. Investors should not view the past performance of FSIC, or information about the market, as indicative of
FSIC's future results.
Individual investors and endowments may have different investment horizons, liquidity needs and risk tolerances. In
addition, fees that may be incurred by an investor in a fund sponsored by FS Investments may be different than fees incurred by
an endowment investing in similar assets as those in which the funds invest.
Other Information
The information in this press release is summary information only and should be read in conjunction with FSIC's quarterly
report on Form 10-Q for the quarterly period ended September 30, 2016, which FSIC filed with the
U.S. Securities and Exchange Commission (the "SEC") on November 9, 2016, as well as FSIC's other
reports filed with the SEC. A copy of FSIC's quarterly report on Form 10-Q for the quarterly period ended September 30, 2016, and FSIC's other reports filed with the SEC can be found on FSIC's website at www.fsinvestmentcorp.com and the SEC's website at www.sec.gov.
Certain Information About Distributions
The determination of the tax attributes of FSIC's distributions is made annually as of the end of its fiscal year based upon
its taxable income and distributions paid, in each case, for the full year. Therefore, a determination as to the tax attributes
of the distributions made on a quarterly basis may not be representative of the actual tax attributes for a full year. FSIC
intends to update stockholders quarterly with an estimated percentage of its distributions that resulted from taxable ordinary
income. The actual tax characteristics of distributions to stockholders will be reported to stockholders annually on Form
1099-DIV.
The timing and amount of any future distributions on FSIC's shares of common stock are subject to applicable legal
restrictions and the sole discretion of its board of directors. There can be no assurance as to the amount or timing of any such
future distributions.
FSIC may fund its cash distributions to stockholders from any sources of funds legally available to it, including proceeds
from the sale of shares of FSIC's common stock, borrowings, net investment income from operations, capital gains proceeds from
the sale of assets, non-capital gains proceeds from the sale of assets and dividends or other distributions paid to it on account
of preferred and common equity investments in portfolio companies. FSIC has not established limits on the amount of funds it may
use from available sources to make distributions. There can be no assurance that FSIC will be able to pay distributions at a
specific rate or at all.
Contact Information:
Investors:
Dominic Mammarella
Director, Investor Relations
dominic.mammarella@fsinvestments.com
215-220-4280
Media:
FS Investments Media Team
media@fsinvestments.com
215-495-1174
Income Statement
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
Investment income
|
|
|
|
|
|
|
|
|
|
|
From non-controlled/unaffiliated investments:
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
$
|
93,380
|
|
|
$
|
99,468
|
|
|
$
|
285,151
|
|
|
$
|
319,180
|
|
|
|
Fee income
|
|
4,214
|
|
|
3,290
|
|
|
21,191
|
|
|
33,707
|
|
|
|
Dividend income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,519
|
|
|
|
From non-controlled/affiliated investments:
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
2,013
|
|
|
910
|
|
|
4,092
|
|
|
1,628
|
|
|
|
Fee income
|
|
—
|
|
|
—
|
|
|
633
|
|
|
—
|
|
|
|
Dividend income
|
|
—
|
|
|
—
|
|
|
224
|
|
|
—
|
|
|
|
From controlled/affiliated investments:
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
950
|
|
|
—
|
|
|
2,540
|
|
|
—
|
|
|
|
Total investment income
|
|
100,557
|
|
|
103,668
|
|
|
313,831
|
|
|
360,034
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
17,872
|
|
|
18,852
|
|
|
53,258
|
|
|
56,993
|
|
|
|
Capital gains incentive fees
|
|
—
|
|
|
(13,811)
|
|
|
—
|
|
|
(18,418)
|
|
|
|
Subordinated income incentive fees
|
|
12,250
|
|
|
12,485
|
|
|
38,945
|
|
|
47,661
|
|
|
|
Administrative services expenses
|
|
750
|
|
|
900
|
|
|
2,846
|
|
|
2,773
|
|
|
|
Accounting and administrative fees
|
|
243
|
|
|
261
|
|
|
706
|
|
|
822
|
|
|
|
Interest expense
|
|
18,283
|
|
|
19,352
|
|
|
55,241
|
|
|
55,699
|
|
|
|
Directors' fees
|
|
277
|
|
|
232
|
|
|
780
|
|
|
688
|
|
|
|
Other general and administrative expenses
|
|
1,879
|
|
|
1,631
|
|
|
6,274
|
|
|
4,877
|
|
|
|
Total operating expenses
|
|
51,554
|
|
|
39,902
|
|
|
158,050
|
|
|
151,095
|
|
|
|
Net investment income
|
|
49,003
|
|
|
63,766
|
|
|
155,781
|
|
|
208,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized and unrealized gain/loss
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) on investments:
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/unaffiliated investments
|
|
2,363
|
|
|
(21,246)
|
|
|
(19,064)
|
|
|
(42,135)
|
|
|
|
Controlled/affiliated investments
|
|
(26)
|
|
|
—
|
|
|
(26)
|
|
|
—
|
|
|
|
Net realized gain (loss) on foreign currency
|
|
86
|
|
|
266
|
|
|
264
|
|
|
(631)
|
|
|
|
Net change in unrealized appreciation (depreciation) on
investments:
|
|
|
|
|
|
|
|
|
|
|
Non-controlled/unaffiliated investments
|
|
64,039
|
|
|
(74,848)
|
|
|
96,258
|
|
|
(88,560)
|
|
|
|
Non-controlled/affiliated investments
|
|
(4,463)
|
|
|
27,220
|
|
|
3,823
|
|
|
36,615
|
|
|
|
Controlled/affiliated investments
|
|
4,354
|
|
|
—
|
|
|
6,692
|
|
|
—
|
|
|
|
Net change in unrealized appreciation (depreciation) on secured
borrowing
|
|
(33)
|
|
|
—
|
|
|
(33)
|
|
|
—
|
|
|
|
Net change in unrealized gain (loss) on foreign currency
|
|
(954)
|
|
|
(437)
|
|
|
(1,266)
|
|
|
2,625
|
|
|
|
Total net realized and unrealized gain
(loss)
|
|
65,366
|
|
|
(69,045)
|
|
|
86,648
|
|
|
(92,086)
|
|
|
|
Net increase (decrease) in net assets resulting from
operations
|
|
$
|
114,369
|
|
|
$
|
(5,279)
|
|
|
$
|
242,429
|
|
|
$
|
116,853
|
|
|
|
Per share information—basic and diluted
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations (Earnings
per Share)
|
|
$
|
0.47
|
|
|
$
|
(0.02)
|
|
|
$
|
1.00
|
|
|
$
|
0.48
|
|
|
|
Weighted average shares outstanding
|
|
243,488,590
|
|
|
242,227,762
|
|
|
243,257,941
|
|
|
241,659,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet
|
|
September 30, 2016
|
|
|
|
|
(Unaudited)
|
|
December 31, 2015
|
|
Assets
|
|
|
|
|
|
Investments, at fair value
|
|
|
|
|
|
Non-controlled/unaffiliated investments (amortized cost—$3,790,661 and
$4,027,950, respectively)
|
|
$
|
3,679,252
|
|
|
$
|
3,820,283
|
|
|
Non-controlled/affiliated investments (amortized cost—$126,209 and $91,248,
respectively)
|
|
171,141
|
|
|
132,357
|
|
|
Controlled/affiliated investments (amortized cost—$79,698 and $75,988,
respectively)
|
|
87,133
|
|
|
76,731
|
|
|
Total investments, at fair value (amortized cost—$3,996,568 and $4,195,186,
respectively)
|
|
3,937,526
|
|
|
4,029,371
|
|
|
Cash
|
|
112,648
|
|
|
80,807
|
|
|
Foreign currency, at fair value (cost—$1,011 and $1,175,
respectively)
|
|
1,013
|
|
|
1,180
|
|
|
Receivable for investments sold and repaid
|
|
27,160
|
|
|
66
|
|
|
Interest receivable
|
|
49,014
|
|
|
34,600
|
|
|
Deferred financing costs
|
|
573
|
|
|
1,420
|
|
|
Prepaid expenses and other assets
|
|
684
|
|
|
729
|
|
|
Total assets
|
|
$
|
4,128,618
|
|
|
$
|
4,148,173
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Payable for investments purchased
|
|
$
|
6,984
|
|
|
$
|
—
|
|
|
Credit facilities payable
|
|
81,286
|
|
|
34,625
|
|
|
Unsecured notes payable (net of deferred financing costs of $1,231 and
$1,490, respectively)
|
|
990,333
|
|
|
988,274
|
|
|
Repurchase agreement payable
|
|
650,000
|
|
|
800,000
|
|
|
Secured borrowing, at fair value (proceeds of $2,830 and $0,
respectively)
|
|
2,863
|
|
|
—
|
|
|
Stockholder distributions payable
|
|
54,236
|
|
|
54,093
|
|
|
Management fees payable
|
|
17,872
|
|
|
18,415
|
|
|
Subordinated income incentive fees payable
|
|
12,250
|
|
|
13,374
|
|
|
Administrative services expense payable
|
|
714
|
|
|
946
|
|
|
Interest payable
|
|
16,113
|
|
|
22,061
|
|
|
Directors' fees payable
|
|
204
|
|
|
282
|
|
|
Other accrued expenses and liabilities
|
|
1,308
|
|
|
7,175
|
|
|
Total liabilities
|
|
1,834,163
|
|
|
1,939,245
|
|
|
Commitments and contingencies
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
Stockholders' equity
|
|
|
|
|
|
Preferred stock, $0.001 par value, 50,000,000 shares authorized, none
issued and outstanding
|
|
—
|
|
|
—
|
|
|
Common stock, $0.001 par value, 450,000,000 shares authorized, 243,488,590
and 242,847,016 shares issued and outstanding, respectively
|
|
243
|
|
|
243
|
|
|
Capital in excess of par value
|
|
2,270,010
|
|
|
2,264,345
|
|
|
Accumulated undistributed net realized gain/loss on investments and
gain/loss on foreign currency
|
|
(64,574)
|
|
|
(45,748)
|
|
|
Accumulated undistributed (distributions in excess of) net investment
income
|
|
141,160
|
|
|
147,946
|
|
|
Net unrealized appreciation (depreciation) on investments and secured
borrowing and unrealized gain/loss on foreign currency
|
|
(52,384)
|
|
|
(157,858)
|
|
|
Total stockholders'
equity
|
|
2,294,455
|
|
|
2,208,928
|
|
|
Total liabilities and stockholders'
equity
|
|
$
|
4,128,618
|
|
|
$
|
4,148,173
|
|
|
Net asset value per share of common stock at period end
|
|
$
|
9.42
|
|
|
$
|
9.10
|
|
Non-GAAP Financial Measures
This press release contains certain financial measures that have not been prepared in accordance with generally accepted
accounting principles in the United States ("GAAP"). FSIC uses these non-GAAP financial measures
internally in analyzing financial results and believes that the use of these non-GAAP financial measures is useful to investors
as an additional tool to evaluate ongoing results and trends and in comparing FSIC's financial results with other BDCs.
Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial
measures, and should be read only in conjunction with FSIC's consolidated financial statements prepared in accordance with GAAP.
A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures has been provided in this press
release, and investors are encouraged to review the reconciliation.
Reconciliation of Non-GAAP Financial Measures1
|
Three Months Ended
|
|
September 30, 2016
|
June 30, 2016
|
September 30, 2015
|
|
GAAP net investment income per share
|
$0.20
|
$0.23
|
$0.26
|
|
Plus capital gains incentive fees per share
|
—
|
—
|
(0.06)
|
|
Plus excise taxes per share
|
—
|
—
|
—
|
|
Plus one-time expenses per share
|
—
|
0.00
|
—
|
|
Adjusted net investment income per share2
|
$0.20
|
$0.24
|
$0.21
|
|
1)
|
Per share data was derived by using the weighted average shares of FSIC's
common stock outstanding during the applicable period. Per share numbers may not sum due to rounding.
|
|
|
|
2)
|
Adjusted net investment income is a non-GAAP financial measure. Adjusted
net investment income is presented for all periods as GAAP net investment income excluding (i) the accrual for the
capital gains incentive fee for realized and unrealized gains; (ii) excise taxes; and (iii) certain non-recurring
operating expenses that are one-time in nature and are not representative of ongoing operating expenses incurred during
FSIC's normal course of business (referred to herein as one-time expenses). FSIC uses this non-GAAP financial measure
internally in analyzing financial results and believes that the use of this non-GAAP financial measure is useful to
investors as an additional tool to evaluate ongoing results and trends and in comparing its financial results with other
business development companies. The presentation of this additional information is not meant to be considered in
isolation or as a substitute for financial results prepared in accordance with GAAP. A reconciliation of GAAP net
investment income to adjusted net investment income can be found above.
|
|
|
|
3)
|
The per share data for distributions reflects the amount of distributions
paid on October 4, 2016, to stockholders of record as of the close of business on September 21, 2016.
|
|
|
|
4)
|
See FSIC's quarterly report on Form 10-Q for the quarter ended September
30, 2016, for a description of FSIC's investment strategies.
|
|
|
|
5)
|
Gross portfolio yield represents the expected annualized yield of FSIC's
investment portfolio based on the composition of the portfolio as of the applicable date.
|
|
|
|
6)
|
Interest income is recorded on an accrual basis. See FSIC's quarterly
report on Form 10-Q for the quarter ended September 30, 2016 for a description of FSIC's revenue recognition
policy.
|
|
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/fsic-reports-third-quarter-2016-financial-results-and-declares-regular-distribution-for-fourth-quarter-300360092.html
SOURCE FS Investment Corporation