PHILADELPHIA, May 10, 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 ended March 31, 2018, and
that its board of directors has declared its second quarter 2018
regular distribution.
Financial Highlights for the Quarter Ended March 31, 20181
- Net investment income of $0.21
per share, compared to $0.22 per
share for the quarter ended March 31,
2017
- Adjusted net investment income of $0.21 per share, compared to $0.22 per share for the quarter ended
March 31, 20172
- Total net realized loss of $0.02 per share and total net change in
unrealized depreciation of $0.13 per
share, compared to a total net realized loss of $0.41 per share and a total net change in
unrealized appreciation of $0.45 per
share for the quarter ended March 31, 2017
- Paid cash distributions to stockholders totaling
$0.19 per share3
- Total purchases of $116.0
million versus $216.0 million
of sales and repayments
- Net asset value of $9.16 per
share, compared to $9.30 per share as
of December 31, 2017
"We are pleased with the progress we made during the first
quarter to transition the management of our franchise to the new
joint adviser we've established with KKR," said Michael Forman, Chairman and Chief Executive
Officer of FSIC. "Now that the transition is complete, we are
collectively focused on serving the needs of our existing
borrowers, sourcing attractive new investment opportunities and
delivering consistent and strong performance for our
investors."
Declaration of Regular Distribution for Second Quarter
2018
FSIC's board of directors has declared a regular cash
distribution for the second quarter of $0.19 per share, which will be paid on or about
July 3, 2018 to stockholders of
record as of the close of business on June
20, 2018.
Summary Consolidated Results
|
|
Three Months
Ended
|
(dollars in
thousands, except per share data)
(all per share amounts are basic and
diluted)1
|
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
Total investment
income
|
$101,018
|
$110,861
|
$106,064
|
Net investment
income
|
50,547
|
54,061
|
52,590
|
Net increase
(decrease) in net assets resulting from operations
|
12,925
|
14,754
|
63,393
|
|
|
|
|
Net investment income
per share
|
$0.21
|
$0.22
|
$0.22
|
Adjusted net
investment income per share2
|
$0.21
|
$0.24
|
$0.22
|
Total net realized
and unrealized gain (loss) per share
|
$(0.15)
|
$(0.16)
|
$0.04
|
Net increase
(decrease) in net assets resulting from operations (Earnings per
Share)
|
$0.05
|
$0.06
|
$0.26
|
Stockholder
distributions per share3
|
$0.19000
|
$0.19000
|
$0.22275
|
Net asset value per
share at period end
|
$9.16
|
$9.30
|
$9.45
|
Weighted average
shares outstanding
|
245,713,188
|
245,725,416
|
244,554,969
|
Shares outstanding,
end of period
|
245,587,856
|
245,725,416
|
244,599,661
|
|
|
|
|
|
|
|
|
(dollar amounts in
thousands)
|
|
As
of March 31,
2018
|
As
of March 31,
2017
|
Total fair value of
investments
|
|
$3,804,014
|
$3,924,168
|
Total
assets
|
|
4,057,505
|
4,286,351
|
Total stockholders'
equity
|
|
2,249,962
|
2,311,635
|
Portfolio Highlights as of March 31, 2018
- Total fair value of investments was $3.8
billion.
- Core investment strategies4 represented 100% of the
portfolio by fair value as of March 31,
2018, including 92% from direct originations and 8% from
opportunistic investments. Broadly syndicated/other investments
represented less than 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
10.9%, compared to 10.5% as of December
31, 2017.
- Total commitments to direct originations (including unfunded
commitments) made during the first quarter of 2018 was $79.6 million in 6 companies, all of which were
existing portfolio companies.
- Approximately 0.0% of investments were on non-accrual based on
fair value.6
Total Portfolio Activity
|
Three Months
Ended
|
|
(dollar amounts in
thousands)
|
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
|
Purchases
|
$115,990
|
$262,562
|
$539,689
|
|
Sales and
redemptions
|
(215,945)
|
(234,638)
|
(364,308)
|
|
Net portfolio
activity
|
$(99,955)
|
$27,924
|
$175,381
|
|
|
Portfolio
Data
|
|
As of March
31, 2018
|
As of March
31, 2017
|
Total fair value of
investments
|
|
$3,804,014
|
$3,924,168
|
Number of Portfolio
Companies
|
|
94
|
108
|
Average Annual EBITDA
of Portfolio Companies
|
|
$82,400
|
$86,100
|
Weighted Average
Purchase Price of Debt Investments (as a % of par)
|
|
99.6%
|
97.2%
|
% of Investments on
Non-Accrual
(based on fair
value)6
|
|
0.0%
|
0.0%
|
|
|
|
|
Asset Class
(based on fair value)
|
|
|
|
Senior Secured Loans
— First Lien
|
|
65%
|
57%
|
Senior Secured Loans
— Second Lien
|
|
4%
|
9%
|
Senior Secured
Bonds
|
|
4%
|
4%
|
Subordinated
Debt
|
|
13%
|
15%
|
Collateralized
Securities
|
|
1%
|
2%
|
Equity/Other
|
|
13%
|
13%
|
|
|
|
|
Portfolio
Composition by Strategy (based on fair
value)4
|
|
|
|
Direct
Originations
|
|
92%
|
87%
|
Opportunistic
|
|
8%
|
10%
|
Broadly
Syndicated/Other
|
|
0%
|
3%
|
|
|
|
|
Interest Rate
Type (based on fair value)
|
|
|
|
% Variable
Rate
|
|
69.2%
|
65.5%
|
% Fixed
Rate
|
|
18.4%
|
21.8%
|
% Income Producing
Equity/Other Investments
|
|
2.3%
|
2.7%
|
% Non-Income
Producing Equity/Other Investments
|
|
10.1%
|
10.0%
|
|
|
|
|
Yields (based
on amortized cost)5
|
|
|
|
Gross Portfolio Yield
Prior to Leverage
|
|
10.0%
|
9.3%
|
Gross Portfolio Yield
Prior to Leverage — Excluding Non-Income
Producing Assets
|
|
10.9%
|
10.2%
|
|
|
|
|
|
Direct Origination Activity
|
|
Three Months
Ended
|
(dollar amounts in
thousands)
|
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
Total
Commitments
(including unfunded
commitments)
|
$79,590
|
$220,159
|
$429,407
|
Exited Investments
(including partial paydowns)
|
(186,236)
|
(159,678)
|
(322,068)
|
Net Direct
Originations
|
$(106,646)
|
$60,481
|
$107,339
|
Direct
Originations Portfolio Data
|
|
As of March 31,
2018
|
As of March 31,
2017
|
Total Fair Value of
Direct Originations
|
|
$3,495,945
|
$3,430,320
|
Number of Portfolio
Companies
|
|
72
|
73
|
Average Annual EBITDA
of Portfolio Companies
|
|
$70,200
|
$64,700
|
Average Leverage
Through Tranche of Portfolio Companies —
Excluding
Equity/Other and Collateralized Securities
|
|
5.1x
|
4.5x
|
% of Investments on
Non-Accrual (based on fair value)6
|
|
0.0%
|
—
|
|
|
|
|
|
Three Months
Ended
|
New Direct
Originations by Asset Class
(including unfunded commitments)
|
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
Senior Secured Loans
— First Lien
|
90%
|
74%
|
81%
|
Senior Secured Loans
— Second Lien
|
5%
|
7%
|
1%
|
Senior Secured
Bonds
|
—
|
11%
|
2%
|
Subordinated
Debt
|
1%
|
—
|
15%
|
Collateralized
Securities
|
—
|
—
|
—
|
Equity/Other
|
4%
|
8%
|
1%
|
Average New Direct
Origination Commitment Amount
|
$13,265
|
$16,935
|
$35,784
|
Weighted Average
Maturity for New Direct Originations
|
9/15/2023
|
10/8/2023
|
3/2/2023
|
Gross Portfolio Yield
Prior to Leverage (based on
amortized cost) of New Direct Originations Funded
during Period5
|
10.9%
|
8.6%
|
9.8%
|
Gross Portfolio Yield
Prior to Leverage (based on
amortized cost) of New Direct Originations Funded
during Period — Excluding
Non-Income Producing Assets5
|
10.9%
|
9.3%
|
10.0%
|
Gross Portfolio Yield
Prior to Leverage (based on
amortized cost) of Direct Originations Exited
during Period5
|
10.6%
|
8.9%
|
9.1%
|
|
|
|
|
|
Leverage and Liquidity as of March 31, 2018
- Debt to equity ratio of 77%, based on $1.72 billion in total debt outstanding and
stockholders' equity of $2.25
billion. FSIC's weighted average effective interest rate
(including the effect of non-usage fees) was 4.31%
- Cash and foreign currency of approximately $215.1 million and availability under its
financing arrangements of $260.4
million, subject to borrowing base and other
limitations
- Nineteen unfunded debt investments with aggregate unfunded
commitments of $133.3 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, May 11, 2018, to discuss its first quarter
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 6081268 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. FSIC is advised by
FS/KKR Advisor, LLC. For more information, please visit
www.fsinvestmentcorp.com.
About FS/KKR Advisor, LLC
FS/KKR Advisor, LLC
("FS/KKR") is a partnership between FS Investments and KKR Credit
that serves as the investment adviser to six BDCs with
approximately $18 billion in assets
under management as of December 31,
2017. The BDCs managed by FS/KKR include FS Investment
Corporation, FS Investment Corporation II, FS Investment
Corporation III, FS Investment Corporation IV, Corporate Capital
Trust, Inc. and Corporate Capital Trust II.
FS/KKR seeks to leverage the size of its platform,
differentiated origination capabilities and expertise in capital
markets to maximize returns and preserve capital for investors.
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 New York, NY,
Orlando, FL and Washington, DC. Visit www.fsinvestments.com to
learn more.
KKR Credit is a subsidiary of KKR & Co. LP, a leading global
investment firm that manages multiple alternative asset classes,
including private equity, energy, infrastructure, real estate and
credit, with strategic manager partnerships that manage hedge
funds. KKR aims to generate attractive investment returns for its
fund investors by following a patient and disciplined investment
approach, employing world-class people, and driving growth and
value creation with KKR portfolio companies. KKR invests its own
capital alongside the capital it manages for fund investors and
provides financing solutions and investment opportunities through
its capital markets business. References to KKR's investments may
include the activities of its sponsored funds. For additional
information about KKR & Co. L.P. (NYSE: KKR), please visit
KKR's website at www.kkr.com and on Twitter @KKR_Co.
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 quarterly report on Form 10-Q for the
quarterly period ended March 31,
2018, which FSIC filed with the U.S. Securities and Exchange
Commission (the "SEC") on May 10,
2018, 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 March 31, 2018 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
Marc
Yaklofsky
marc.yaklofsky@fsinvestments.com
215-309-6763
Media
Kate Beers
media@fsinvestments.com
215-495-1174
Income
Statement
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2018
|
|
2017
|
Investment
income
|
|
|
|
|
From
non-controlled/unaffiliated investments:
|
|
|
|
|
Interest
income
|
|
$
|
75,269
|
|
|
$
|
72,838
|
|
Paid-in-kind interest
income
|
|
8,448
|
|
|
6,881
|
|
Fee income
|
|
2,453
|
|
|
19,530
|
|
Dividend
income
|
|
7,355
|
|
|
—
|
|
From
non-controlled/affiliated investments:
|
|
|
|
|
Interest
income
|
|
1,428
|
|
|
3,684
|
|
Paid-in-kind interest
income
|
|
3,147
|
|
|
606
|
|
Fee income
|
|
—
|
|
|
29
|
|
From
controlled/affiliated investments:
|
|
|
|
|
Interest
income
|
|
1,120
|
|
|
1,502
|
|
Paid-in-kind interest
income
|
|
1,798
|
|
|
994
|
|
Total investment
income
|
|
101,018
|
|
|
106,064
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Management
fees
|
|
17,854
|
|
|
18,367
|
|
Subordinated income
incentive fees
|
|
11,999
|
|
|
13,147
|
|
Administrative
services expenses
|
|
734
|
|
|
734
|
|
Accounting and
administrative fees
|
|
254
|
|
|
265
|
|
Interest
expense
|
|
20,053
|
|
|
19,439
|
|
Directors'
fees
|
|
496
|
|
|
271
|
|
Other general and
administrative expenses
|
|
1,632
|
|
|
1,251
|
|
Total operating
expenses
|
|
53,022
|
|
|
53,474
|
|
Management fee
waiver
|
|
(2,551)
|
|
|
—
|
|
Net expenses
|
|
50,471
|
|
|
53,474
|
|
Net investment
income
|
|
50,547
|
|
|
52,590
|
|
|
|
|
|
|
Realized and
unrealized gain/loss
|
|
|
|
|
Net realized gain
(loss) on investments:
|
|
|
|
|
Non-controlled/unaffiliated investments
|
|
(4,351)
|
|
|
(48,447)
|
|
Non-controlled/affiliated investments
|
|
8
|
|
|
305
|
|
Controlled/affiliated
investments
|
|
—
|
|
|
(52,879)
|
|
Net realized gain
(loss) on foreign currency
|
|
61
|
|
|
123
|
|
Net change in
unrealized appreciation (depreciation) on investments:
|
|
|
|
|
Non-controlled/unaffiliated investments
|
|
(17,501)
|
|
|
129,260
|
|
Non-controlled/affiliated investments
|
|
(5,530)
|
|
|
(12,328)
|
|
Controlled/affiliated
investments
|
|
(9,707)
|
|
|
(4,499)
|
|
Net change in
unrealized appreciation (depreciation) on secured
borrowing
|
|
—
|
|
|
(10)
|
|
Net change in
unrealized gain (loss) on foreign currency
|
|
(602)
|
|
|
(722)
|
|
Total net realized and
unrealized gain (loss)
|
|
$
|
(37,622)
|
|
|
$
|
10,803
|
|
Net increase
(decrease) in net assets resulting from operations
|
|
$
|
12,925
|
|
|
$
|
63,393
|
|
|
|
|
|
|
Per share
information—basic and diluted
|
|
|
|
|
Net increase
(decrease) in net assets resulting from operations (Earnings per
Share)
|
|
$
|
0.05
|
|
|
$
|
0.26
|
|
Weighted average
shares outstanding
|
|
245,713,188
|
|
|
244,554,969
|
|
Balance
Sheet
|
|
March 31,
2018
|
|
|
|
|
(Unaudited)
|
|
December 31,
2017
|
Assets
|
|
|
|
|
Investments, at fair
value
|
|
|
|
|
Non-controlled/unaffiliated investments (amortized
cost—$3,434,363 and $3,532,517, respectively)
|
|
$
|
3,485,256
|
|
|
$
|
3,600,911
|
|
Non-controlled/affiliated investments (amortized
cost—$201,717 and $197,468, respectively)
|
|
228,774
|
|
|
230,055
|
|
Controlled/affiliated
investments (amortized cost—$91,284 and $86,861,
respectively)
|
|
89,984
|
|
|
95,268
|
|
Total investments, at
fair value (amortized cost—$3,727,364 and $3,816,846,
respectively)
|
|
3,804,014
|
|
|
3,926,234
|
|
Cash
|
|
209,609
|
|
|
134,932
|
|
Foreign currency, at
fair value (cost—$5,291 and $3,685, respectively)
|
|
5,448
|
|
|
3,810
|
|
Receivable for
investments sold and repaid
|
|
1,195
|
|
|
3,477
|
|
Income
receivable
|
|
32,352
|
|
|
30,668
|
|
Deferred financing
costs
|
|
3,212
|
|
|
3,459
|
|
Prepaid expenses and
other assets
|
|
1,675
|
|
|
1,695
|
|
Total
assets
|
|
$
|
4,057,505
|
|
|
$
|
4,104,275
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Payable for
investments purchased
|
|
$
|
101
|
|
|
$
|
1,978
|
|
Credit facilities
payable (net of deferred financing costs of $2,903 and $3,179,
respectively)
|
|
639,205
|
|
|
638,571
|
|
Unsecured notes
payable (net of deferred financing costs of $1,245 and $1,402,
respectively)
|
|
1,074,160
|
|
|
1,073,445
|
|
Stockholder
distributions payable
|
|
46,683
|
|
|
46,704
|
|
Management fees
payable
|
|
15,303
|
|
|
15,450
|
|
Subordinated income
incentive fees payable
|
|
11,999
|
|
|
12,871
|
|
Administrative
services expense payable
|
|
542
|
|
|
294
|
|
Interest
payable
|
|
18,190
|
|
|
22,851
|
|
Directors' fees
payable
|
|
490
|
|
|
276
|
|
Other accrued
expenses and liabilities
|
|
870
|
|
|
7,112
|
|
Total
liabilities
|
|
1,807,543
|
|
|
1,819,552
|
|
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, 245,587,856 and
245,725,416 shares
issued and outstanding,
respectively
|
|
246
|
|
|
246
|
|
Capital in excess of
par value
|
|
2,271,588
|
|
|
2,272,591
|
|
Accumulated
undistributed net realized gain/loss on investments and gain/loss
on foreign currency
|
|
(249,570)
|
|
|
(245,288)
|
|
Accumulated
undistributed (distributions in excess of) net investment
income
|
|
147,926
|
|
|
144,062
|
|
Net unrealized
appreciation (depreciation) on investments and secured borrowing
and unrealized gain/loss on foreign currency
|
|
79,772
|
|
|
113,112
|
|
Total
stockholders' equity
|
|
2,249,962
|
|
|
2,284,723
|
|
Total
liabilities and stockholders' equity
|
|
$
|
4,057,505
|
|
|
$
|
4,104,275
|
|
Net asset value per
share of common stock at period end
|
|
$
|
9.16
|
|
|
$
|
9.30
|
|
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
|
|
March 31,
2018
|
December 31,
2017
|
March 31,
2017
|
GAAP net investment
income per share
|
$0.21
|
$0.22
|
$0.22
|
Plus capital gains
incentive fees per share
|
—
|
—
|
—
|
Plus excise taxes per
share
|
—
|
0.02
|
—
|
Plus one-time
expenses per share
|
—
|
—
|
—
|
Adjusted net
investment income per share2
|
$0.21
|
$0.24
|
$0.22
|
|
|
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 quarterly
report on Form 10-Q for the three months ended March 31, 2018 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 quarterly report on Form
10-Q for the three months ended March 31, 2018 for a description of
FSIC's revenue recognition policy.
|
|
|
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SOURCE FS Investment Corporation