Gladstone Capital Corporation (NASDAQ:GLAD) Q1 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 08:30 am ET


Gladstone Capital Corporation (NASDAQ:GLAD) Q1 2019 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Gladstone Capital Corporation's First Quarter Ended December 31, 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Mr. David Gladstone. Sir, you may begin.

David J. Gladstone

All right. Thank you, Lauren, nice introduction. Good morning everybody. This is David Gladstone, Chairman, and this is the quarterly earnings conference call for shareholders and analysts of Gladstone Capital for the quarter ending December 31, 2018. Thank you all for calling in. We are always happy to talk with our shareholders and analysts and welcome the opportunity to provide updates for the Company and our investments that we are in.

And now we'll hear from our General Counsel, Michael LiCalsi, he will make a statement regarding forward-looking statements. Michael?

Michael LiCalsi

Thanks, David and good morning. Today's report may include forward-looking statements under the Securities Act of 1933 and Securities Exchange Act of 1934, including those regarding our future performance. These forward-looking statements involve certain risks and uncertainties that are based on our current plans, which we believe to be reasonable. Many factors may cause our actual results to be materially different from any future results expressed or implied by these forward-looking statements, including all risk factors listed on our Forms 10-Q, 10-K and other documents that we file with the SEC. Those can now be found on the Investor Relations page of our website,, and on the SEC's website at We undertake no obligation to publicly update or revise any of these forward-looking statements whether as a result of new information, future events or otherwise except as required by law.

We also ask that you take the opportunity to visit our website, once again,, sign up for our e-mail notification service. We can also be found on Twitter and that's @GladstoneComps and on Facebook, keyword there is, The Gladstone Companies.

Today's call is simply an overview of our results, so we ask that you review our press release and Form 10-Q, both issued yesterday for more detailed information. Again, those can be found on the Investor Relations page of our website.

With that, I'll turn the presentation back over to Gladstone Capital's President, Bob Marcotte. Bob?

Bob Marcotte

Thank you, Michael. Good morning and thank you all for dialing in today. Let's get into the results for last quarter and our portfolio performance and capital position, and I'll conclude with some comments regarding the outlook for the balance of fiscal 2019.

The highlights for the quarter ended December 31 include, per our prior quarter guidance, our originations on the quarter were very strong, totaling $59.2 million and included three new proprietary senior secured investments. Exits and repayments totaled $8.9 million, so net originations for the quarter were $50.4 million, excluding any appreciation or depreciation on the