GSV Capital Corp. (NASDAQ:GSVC) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 05:00 pm ET

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GSV Capital Corp. (NASDAQ:GSVC) Q3 2018 Earnings Conference Call Transcript

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Operator
Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the GSV Capital's Third Quarter 2018 Earnings Conference Call. (Operator Instructions) This call is being recorded today, Wednesday, November 7, 2018.

I will now turn the conference over to Ben Fife with GSV Capital. Please go ahead, sir.

Executive
Ben Fife

Thank you for joining us on today's call. I'm joined today by the Chairman of GSV Capital's Board of Directors, Michael Moe; and SVP and Controller, Allison Green. Please note that a slide presentation that corresponds to today's prepared remarks by management is available on our website at www.gsvcap.com under IR. Today's call is being recorded and broadcast live on our website, www.gsvcap.com. Replay information is included in our press release issued earlier today. This call is the property of GSV Capital Corp., and the unauthorized reproduction of this call in any form is strictly prohibited.

(Forward-Looking Cautionary Statements)

Now I'd like to turn the call over to Michael Moe.

Executive
Michael Moe

Thank you, Ben. Good afternoon, everybody. We are pleased to share results of GSV Capital's third quarter 2018. First, I'll review the recent quarter, including key initiatives that we are executing to enhance shareholder value. Then I will provide update on the key developments in the portfolio. To conclude, I'll hand the call over to Allison Green for a brief financial overview, and then we'll open up the call for questions.

Let's start with Slide 3. At the end of the third quarter, net asset value is $10.58 per share, up from $10.46 per share in the second quarter and up from $9.69 per share in the third quarter last year. Net asset value totaled approximately $213 million, compared to $217 million in the second quarter. We anticipate that the strong growth of our portfolio companies that have been exhibited will drive NAV in the coming months, and we're optimistic about the future of our portfolio, as we've been in recent memory.

As I've emphasized to varying degrees on previous earnings calls, we are focused on three core areas to drive GSV Capital's performance and investor returns. First, we have continued to execute key initiatives to systematically enhance shareholder value. In 2017, GSV Capital's board authorized a $10 million discretionary open market share repurchase program, and in May, the board authorized a $5 million expansion of this program, to an aggregate of $15 million. To date, we have repurchased approximately $14.2 million in shares of common stock under the program, including $4.1 million in the third quarter of 2018 and an additional $1.8 million subsequent to quarter end. We've retired nearly 11% of shares outstanding since the repurchase program was announced on August 8, 2017.

We are pleased to announce today that our board has authorized a $5 million expansion of the program to an aggregate of $20 million, which leaves approximately $5.8 million for repurchases under the program. The share repurchase program complements the shareholder-centric adjustments we have made in our fee structure this year. During the quarter, we've