PHILADELPHIA, March 1, 2018 /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 and year ended December 31,
2017, and that its board of directors has declared its first
quarter 2018 regular distribution.
Financial Highlights for the Quarter Ended December 31, 20171
- Net investment income of $0.22
per share, compared to $0.21 per
share for the quarter ended December 31,
2016
- Adjusted net investment income of $0.24 per share, compared to $0.23 per share for the quarter ended
December 31,
20162
- Total net realized loss of $0.04 per share and total net change in
unrealized depreciation of $0.12 per
share, compared to a total net realized loss of $0.18 per share and a total net change in
unrealized appreciation of $0.18 per
share for the quarter ended December
31, 2016
- Paid cash distributions to stockholders totaling
$0.19 per share3
- Total purchases of $262.6
million versus $234.6 million
of sales and repayments
- Net asset value of $9.30 per
share, compared to $9.43 per share as
of September 30, 2017
Financial Highlights for the Year Ended December 31, 20171
- Net investment income of $0.83
per share, compared to $0.85 per
share for the year ended December 31,
2016
- Adjusted net investment income of $0.85 per share, compared to $0.87 per share for the year ended December 31, 20162
- Total net realized loss of $0.58 per share and total net change in
unrealized appreciation of $0.49 per
share, compared to a total net realized loss of $0.26 per share and a total net change in
unrealized appreciation of $0.62 per
share for the year ended December
31, 2016
- Paid cash distributions to stockholders totaling
$0.85825 per share
- Total purchases of $1.3
billion versus $1.1 billion of
sales and repayments
"Since announcing the strategic partnership with KKR in
December, the transition of advisory services is advancing as
expected and we continue to provide our portfolio companies and
their sponsors with timely, flexible capital, as evidenced by
several financings we have recently executed," said Michael Forman, Chairman and Chief Executive
Officer of FSIC. "We are confident that our new partnership
will allow us to grow stockholder value and our share repurchase
program demonstrates our commitment to FSIC investors."
Declaration of Regular Distribution for First Quarter
2018
FSIC's board of directors has declared a regular cash
distribution for the first quarter of $0.19 per share, which will be paid on or about
April 3, 2018 to stockholders of
record as of the close of business on March
21, 2018.
Share Repurchase Program
In February 2018, FSIC's board of
directors authorized a stock repurchase program. Under the program,
FSIC may repurchase up to $50 million in the aggregate of its
outstanding common stock in the open market at prices below the
current net asset value per share. The timing, manner, price and
amount of any share repurchases will be determined by FSIC, in its
discretion, based upon the evaluation of economic and market
conditions, FSIC's stock price, applicable legal and regulatory
requirements and other factors. The program will be in effect
through February 21, 2019, unless extended or until the
aggregate repurchase amount that has been approved by FSIC's board
of directors has been expended. The program does not require FSIC
to repurchase any specific number of shares and FSIC cannot assure
stockholders that any shares will be repurchased under the program.
The program may be suspended, extended, modified or discontinued at
any time.
Summary Consolidated Results
|
|
Three Months
Ended
|
(dollars in
thousands, except per share data)
(all per share amounts are basic and
diluted)1
|
December 31,
2017
|
September 30,
2017
|
December 31,
2016
|
Total investment
income
|
$110,861
|
$103,691
|
$108,978
|
Net investment
income
|
54,061
|
50,648
|
51,542
|
Net increase
(decrease) in net assets resulting from operations
|
14,754
|
85,398
|
51,862
|
|
|
|
|
Net investment income
per share
|
$0.22
|
$0.21
|
$0.21
|
Adjusted net
investment income per share2
|
$0.24
|
$0.21
|
$0.23
|
Total net realized
and unrealized gain (loss) per share
|
$(0.16)
|
$0.14
|
$0.00
|
Net increase
(decrease) in net assets resulting from operations
(Earnings per
Share)
|
$0.06
|
$0.35
|
$0.21
|
Stockholder
distributions per share3
|
$0.19000
|
$0.22275
|
$0.22275
|
Net asset value per
share at period end
|
$9.30
|
$9.43
|
$9.41
|
Weighted average
shares outstanding
|
245,725,416
|
245,678,745
|
244,016,474
|
Shares outstanding,
end of period
|
245,725,416
|
245,725,416
|
244,063,357
|
|
|
|
|
|
|
(dollar amounts in
thousands)
|
|
As
of December 31,
2017
|
As
of December 31,
2016
|
Total fair value of
investments
|
|
$3,926,234
|
$3,726,816
|
Total
assets
|
|
4,104,275
|
4,110,071
|
Total stockholders'
equity
|
|
2,284,723
|
2,297,377
|
Portfolio Highlights as of December 31, 2017
- Total fair value of investments was $3.9
billion.
- Core investment strategies4 represented 99% of the
portfolio by fair value as of December 31,
2017, including 92% from direct originations and 7% from
opportunistic investments. Broadly syndicated/other investments
represented the remaining 1% of the portfolio by fair value.
- Gross portfolio yield prior to leverage (based on amortized
cost and excluding non-income producing assets)5 was
10.5%, compared to 10.3% as of September 30,
2017.
- Total commitments to direct originations (including unfunded
commitments) made during the fourth quarter of 2017 was
$220.2 million in 13 companies, 10 of
which were existing portfolio companies.
- Approximately 0.2% of investments were on non-accrual based on
fair value.6
Total Portfolio Activity
|
Three Months
Ended
|
|
(dollar amounts in
thousands)
|
December 31,
2017
|
September 30,
2017
|
December 31,
2016
|
|
Purchases
|
$262,562
|
$183,384
|
$495,071
|
|
Sales and
redemptions
|
(234,638)
|
(255,483)
|
(715,567)
|
|
Net portfolio
activity
|
$27,924
|
$(42,099)
|
$(220,496)
|
|
|
|
Portfolio
Data
|
As of
December 31, 2017
|
As of
December, 2016
|
|
Total fair value of
investments
|
$3,926,234
|
$3,726,816
|
|
Number of Portfolio
Companies
|
100
|
102
|
|
Average Annual EBITDA
of Portfolio Companies
|
$85,700
|
$100,000
|
|
Weighted Average
Purchase Price of Debt Investments (as a % of par)
|
99.5%
|
98.6%
|
|
% of Investments on
Non-Accrual
(based on fair
value)6
|
0.2%
|
0.2%
|
|
|
|
|
Asset Class
(based on fair value)
|
|
|
Senior Secured Loans
— First Lien
|
64%
|
52%
|
|
Senior Secured Loans
— Second Lien
|
5%
|
16%
|
|
Senior Secured
Bonds
|
4%
|
4%
|
|
Subordinated
Debt
|
13%
|
12%
|
|
Collateralized
Securities
|
1%
|
2%
|
|
Equity/Other
|
13%
|
14%
|
|
|
|
|
Portfolio
Composition by Strategy (based on fair
value)4
|
|
|
Direct
Originations
|
92%
|
88%
|
|
Opportunistic
|
7%
|
9%
|
|
Broadly
Syndicated/Other
|
1%
|
3%
|
|
|
|
|
Interest Rate
Type (based on fair value)
|
|
|
% Variable
Rate
|
69.4%
|
67.0%
|
|
% Fixed
Rate
|
17.8%
|
19.4%
|
|
% Income Producing
Equity/Other Investments
|
2.3%
|
2.7%
|
|
% Non-Income
Producing Equity/Other Investments
|
10.5%
|
10.9%
|
|
|
|
|
Yields (based
on amortized cost)5
|
|
|
Gross Portfolio Yield
Prior to Leverage
|
9.6%
|
9.1%
|
|
Gross Portfolio Yield
Prior to Leverage — Excluding Non-Income Producing
Assets
|
10.5%
|
10.1%
|
|
|
|
|
|
|
|
|
Direct Origination Activity
|
Three Months
Ended
|
(dollar amounts in
thousands)
|
December 31,
2017
|
September 30,
2017
|
December 31,
2016
|
Total
Commitments
(including unfunded
commitments)
|
$220,159
|
$199,157
|
$526,589
|
Exited Investments
(including partial paydowns)
|
(159,678)
|
(169,035)
|
(598,468)
|
Net Direct
Originations
|
$60,481
|
$30,122
|
$(71,879)
|
Direct
Originations Portfolio Data
|
As of December 31,
2017
|
As of December 31,
2016
|
Total Fair Value of
Direct Originations
|
$3,606,608
|
$3,264,395
|
Number of Portfolio
Companies
|
75
|
67
|
Average Annual EBITDA
of Portfolio Companies
|
$68,600
|
$64,600
|
Average Leverage
Through Tranche of Portfolio Companies —
Excluding
Equity/Other and Collateralized Securities
|
4.9x
|
4.8x
|
% of Investments on
Non-Accrual (based on fair value)6
|
—
|
0.1%
|
|
|
|
|
|
|
Three Months
Ended
|
|
New Direct
Originations by Asset Class
(including unfunded commitments)
|
December 31,
2017
|
September 30,
2017
|
December 31,
2016
|
|
Senior Secured Loans
— First Lien
|
74%
|
85%
|
88%
|
|
Senior Secured Loans
— Second Lien
|
7%
|
2%
|
5%
|
|
Senior Secured
Bonds
|
11%
|
—
|
1%
|
|
Subordinated
Debt
|
—
|
13%
|
2%
|
|
Collateralized
Securities
|
—
|
—
|
—
|
|
Equity/Other
|
8%
|
—
|
4%
|
|
Average New Direct
Origination Commitment Amount
|
$16,935
|
$49,789
|
$29,255
|
|
Weighted Average
Maturity for New Direct Originations
|
10/8/2023
|
5/5/2023
|
6/20/2023
|
|
Gross Portfolio Yield
Prior to Leverage (based on
amortized cost) of New Direct Originations Funded
during Period5
|
8.6%
|
9.6%
|
8.8%
|
|
Gross Portfolio Yield
Prior to Leverage (based on
amortized cost) of New Direct Originations Funded
during Period —
Excluding Non-Income
Producing Assets5
|
9.3%
|
9.6%
|
9.1%
|
|
Gross Portfolio Yield
Prior to Leverage (based on
amortized cost) of Direct Originations Exited during
Period5
|
8.9%
|
12.0%
|
8.0%
|
|
|
|
|
|
|
|
Leverage and Liquidity as of December 31, 2017
- Debt to equity ratio of 75%, based on $1.72 billion in total debt outstanding and
stockholders' equity of $2.28
billion. FSIC's weighted average effective interest rate
(including the effect of non-usage fees) was 4.26%
- Cash and foreign currency of approximately $138.7 million and availability under its
financing arrangements of $260.8
million, subject to borrowing base and other
limitations
- Twenty unfunded debt investments with aggregate unfunded
commitments of $154.1 million and two
unfunded equity commitments with aggregate unfunded commitments of
$299 thousand
Conference Call Information
FSIC will host a conference call at 10:00
a.m. (Eastern Time) on Friday, March 2, 2018, to discuss its
fourth quarter and year ended December 31,
2017 financial results. All interested parties are welcome
to participate. You can access the conference call by dialing (877)
443-2408 and using the conference ID 2167236 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 currently sub-advised by GSO / Blackstone Debt
Funds Management LLC, an affiliate of GSO Capital Partners ("GSO").
GSO, with approximately $138.1
billion in assets under management as of December 31, 2017, 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 dedicated to helping
individuals, financial professionals and institutions design better
portfolios. The firm provides access to alternative sources of
income and growth and focuses on setting industry standards for
investor protection, education and transparency.
FS Investments is headquartered in Philadelphia, PA with offices in Orlando, FL, New
York, NY and Washington,
DC. The firm had more than $20
billion in assets under management as of December 31, 2017.
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.
Other Information
The information in this press release is summary information
only and should be read in conjunction with FSIC's annual report on
Form 10-K for the year ended December 31,
2017, which FSIC filed with the U.S. Securities and Exchange
Commission (the "SEC") on March 1,
2018, as well as FSIC's other reports filed with the SEC. A
copy of FSIC's annual report on Form 10-K for the year ended
December 31, 2017 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, including the special distribution referenced
herein.
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
Chris Condelles
christopher.condelles@fsinvestments.com
267-439-4365
Media
Marc Yaklofsky / Kate Beers
media@fsinvestments.com
215-495-1174
Income
Statement
|
|
Year Ended
December 31,
|
|
|
2017
|
|
2016
|
|
2015
|
Investment
income
|
|
|
|
|
|
|
From
non-controlled/unaffiliated investments:
|
|
|
|
|
|
|
Interest
income
|
|
$
|
319,155
|
|
|
$
|
344,639
|
|
|
$
|
397,613
|
|
Paid-in-kind interest
income
|
|
32,440
|
|
|
28,519
|
|
|
23,221
|
|
Fee income
|
|
41,136
|
|
|
35,541
|
|
|
43,392
|
|
Dividend
income
|
|
21
|
|
|
2,727
|
|
|
6,499
|
|
From
non-controlled/affiliated investments:
|
|
|
|
|
|
|
Interest
income
|
|
10,768
|
|
|
6,087
|
|
|
2,295
|
|
Paid-in-kind interest
income
|
|
2,469
|
|
|
737
|
|
|
308
|
|
Fee income
|
|
2,880
|
|
|
752
|
|
|
790
|
|
Dividend
income
|
|
—
|
|
|
224
|
|
|
299
|
|
From
controlled/affiliated investments:
|
|
|
|
|
|
|
Interest
income
|
|
4,373
|
|
|
2
|
|
|
380
|
|
Paid-in-kind interest
income
|
|
6,069
|
|
|
3,581
|
|
|
—
|
|
Total investment
income
|
|
419,311
|
|
|
422,809
|
|
|
474,797
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Management
fees
|
|
72,797
|
|
|
71,280
|
|
|
75,401
|
|
Capital gains
incentive fees
|
|
—
|
|
|
—
|
|
|
(21,075)
|
|
Subordinated income
incentive fees
|
|
50,297
|
|
|
51,830
|
|
|
61,036
|
|
Administrative
services expenses
|
|
3,051
|
|
|
3,475
|
|
|
4,182
|
|
Accounting and
administrative fees
|
|
1,014
|
|
|
966
|
|
|
1,082
|
|
Interest
expense
|
|
79,145
|
|
|
74,058
|
|
|
75,127
|
|
Directors'
fees
|
|
1,149
|
|
|
1,139
|
|
|
1,026
|
|
Other general and
administrative expenses
|
|
5,415
|
|
|
7,184
|
|
|
6,872
|
|
Total operating
expenses
|
|
212,868
|
|
|
209,932
|
|
|
203,651
|
|
Management fee
waiver
|
|
(2,575)
|
|
|
—
|
|
|
—
|
|
Net expenses
|
|
210,293
|
|
|
209,932
|
|
|
203,651
|
|
Net investment income
before taxes
|
|
209,018
|
|
|
212,877
|
|
|
271,146
|
|
Excise
taxes
|
|
5,259
|
|
|
5,554
|
|
|
6,056
|
|
Net investment
income
|
|
203,759
|
|
|
207,323
|
|
|
265,090
|
|
|
|
|
|
|
|
|
Realized and
unrealized gain/loss
|
|
|
|
|
|
|
Net realized gain
(loss) on investments:
|
|
|
|
|
|
|
Non-controlled/unaffiliated investments
|
|
$
|
(98,580)
|
|
|
$
|
(63,535)
|
|
|
$
|
(62,426)
|
|
Non-controlled/affiliated investments
|
|
8,690
|
|
|
—
|
|
|
—
|
|
Controlled/affiliated
investments
|
|
(52,879)
|
|
|
(26)
|
|
|
—
|
|
Net realized gain
(loss) on secured borrowing
|
|
(21)
|
|
|
—
|
|
|
—
|
|
Net realized gain
(loss) on foreign currency
|
|
247
|
|
|
330
|
|
|
(640)
|
|
Net change in
unrealized appreciation (depreciation) on investments:
|
|
|
|
|
|
|
Non-controlled/unaffiliated investments
|
|
137,342
|
|
|
138,719
|
|
|
(212,155)
|
|
Non-controlled/affiliated investments
|
|
(17,041)
|
|
|
8,519
|
|
|
44,247
|
|
Controlled/affiliated
investments
|
|
6,211
|
|
|
1,453
|
|
|
743
|
|
Net change in
unrealized appreciation (depreciation) on secured
borrowing
|
|
49
|
|
|
(49)
|
|
|
—
|
|
Net change in
unrealized gain (loss) on foreign currency
|
|
(5,790)
|
|
|
1,557
|
|
|
3,526
|
|
Total net realized and
unrealized gain (loss)
|
|
(21,772)
|
|
|
86,968
|
|
|
(226,705)
|
|
Net increase
(decrease) in net assets resulting from operations
|
|
$
|
181,987
|
|
|
$
|
294,291
|
|
|
$
|
38,385
|
|
Per share
information—basic and diluted
|
|
|
|
|
|
|
Net increase
(decrease) in net assets resulting from operations (Earnings per
Share)
|
|
$
|
0.74
|
|
|
$
|
1.21
|
|
|
$
|
0.16
|
|
Weighted average
shares outstanding
|
|
245,270,969
|
|
|
243,448,610
|
|
|
241,946,850
|
|
Balance
Sheet
|
|
December
31,
|
|
|
2017
|
|
2016
|
Assets
|
|
|
|
|
Investments, at fair
value
|
|
|
|
|
Non-controlled/unaffiliated investments (amortized
cost—$3,532,517 and $3,509,899, respectively)
|
|
$
|
3,600,911
|
|
|
$
|
3,440,951
|
|
Non-controlled/affiliated investments (amortized
cost—$197,468 and $153,167, respectively)
|
|
230,055
|
|
|
202,795
|
|
Controlled/affiliated
investments (amortized cost—$86,861 and $80,874,
respectively)
|
|
95,268
|
|
|
83,070
|
|
Total investments, at
fair value (amortized cost—$3,816,846 and $3,743,940,
respectively)
|
|
$
|
3,926,234
|
|
|
$
|
3,726,816
|
|
Cash
|
|
134,932
|
|
|
264,594
|
|
Foreign currency, at
fair value (cost—$3,685 and $4, respectively)
|
|
3,810
|
|
|
4
|
|
Receivable for
investments sold and repaid
|
|
3,477
|
|
|
75,921
|
|
Income
receivable
|
|
30,668
|
|
|
36,106
|
|
Deferred financing
costs
|
|
3,459
|
|
|
5,828
|
|
Prepaid expenses and
other assets
|
|
1,695
|
|
|
802
|
|
Total
assets
|
|
$
|
4,104,275
|
|
|
$
|
4,110,071
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Payable for
investments purchased
|
|
$
|
1,978
|
|
|
$
|
5,748
|
|
Credit facilities
payable (net of deferred financing costs of $3,179 and $0,
respectively)
|
|
638,571
|
|
|
619,932
|
|
Unsecured notes
payable (net of deferred financing costs of $1,402 and $1,884,
respectively)
|
|
1,073,445
|
|
|
1,070,701
|
|
Secured borrowing, at
fair value (proceeds of $0 and $2,831, respectively)
|
|
—
|
|
|
2,880
|
|
Stockholder
distributions payable
|
|
46,704
|
|
|
54,364
|
|
Management fees
payable
|
|
15,450
|
|
|
18,022
|
|
Subordinated income
incentive fees payable
|
|
12,871
|
|
|
12,885
|
|
Administrative
services expense payable
|
|
294
|
|
|
516
|
|
Interest
payable
|
|
22,851
|
|
|
20,144
|
|
Directors' fees
payable
|
|
276
|
|
|
281
|
|
Other accrued
expenses and liabilities
|
|
7,112
|
|
|
7,221
|
|
Total
liabilities
|
|
1,819,552
|
|
|
1,812,694
|
|
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, 245,725,416 and
244,063,357 shares issued and outstanding, respectively
|
|
246
|
|
|
244
|
|
Capital in excess of
par value
|
|
2,272,591
|
|
|
2,261,040
|
|
Accumulated
undistributed net realized gain/loss on investments and gain/loss
on foreign currency
|
|
(245,288)
|
|
|
(104,274)
|
|
Accumulated
undistributed (distributions in excess of) net investment
income
|
|
144,062
|
|
|
148,026
|
|
Net unrealized
appreciation (depreciation) on investments and secured borrowing
and unrealized gain/loss on foreign currency
|
|
113,112
|
|
|
(7,659)
|
|
Total
stockholders' equity
|
|
2,284,723
|
|
|
2,297,377
|
|
Total
liabilities and stockholders' equity
|
|
$
|
4,104,275
|
|
|
$
|
4,110,071
|
|
Net asset value per
share of common stock at year end
|
|
$
|
9.30
|
|
|
$
|
9.41
|
|
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
|
|
December 31,
2017
|
September 30,
2017
|
December 31,
2016
|
GAAP net investment
income per share
|
$0.22
|
$0.21
|
$0.21
|
Plus capital gains
incentive fees per share
|
—
|
—
|
—
|
Plus excise taxes per
share
|
0.02
|
—
|
0.02
|
Plus one-time
expenses per share
|
—
|
—
|
—
|
Adjusted net
investment income per share2
|
$0.24
|
$0.21
|
$0.23
|
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 per
share of our common stock to stockholders of
record during each
applicable period.
|
|
|
4)
|
See FSIC's annual
report on Form 10-K for the year ended December 31, 2017 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. FSIC's estimated gross portfolio yield may be
higher than an investor's yield on an
investment in shares
of FSIC's common stock because it does not reflect sales
commissions or charges that may be incurred
in connection with
the purchase or sale of such shares, or operating expenses that may
be incurred by FSIC. FSIC's estimated
gross portfolio yield
does not represent an actual investment return to stockholders, is
subject to change and, in the future,
may be greater or
less than the rates set forth herein.
|
|
|
6)
|
Interest income is
recorded on an accrual basis. See FSIC's annual report on Form 10-K
for the year ended December 31,
2017 for a
description of FSIC's revenue recognition policy.
|
|
|
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SOURCE FS Investment Corporation