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Apollo Investment Corp. Reports Operating Results (10-Q)

November 04, 2010 | About:
10qk

10qk

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Apollo Investment Corp. (AINV) filed Quarterly Report for the period ended 2010-09-30.

Apollo Investment Corp. has a market cap of $2.17 billion; its shares were traded at around $11.2 with a P/E ratio of 9.9 and P/S ratio of 6.3. The dividend yield of Apollo Investment Corp. stocks is 10%. Apollo Investment Corp. had an annual average earning growth of 21.7% over the past 5 years.AINV is in the portfolios of David Williams of Columbia Value and Restructuring Fund, David Dreman of Dreman Value Management, Chuck Royce of Royce& Associates, Murray Stahl of Horizon Asset Management.
This is the annual revenues and earnings per share of AINV over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of AINV.


Highlight of Business Operations:

At September 30, 2010, 63% or $1.7 billion of our income-bearing investment portfolio is fixed rate and 37% or $1.0 billion is floating rate, measured at fair value. On a cost basis, 64% or $1.9 billion of our income-bearing investment portfolio is fixed rate and 36% or $1.0 billion is floating rate. At September 30, 2009, 66% or $1.5 billion of our income-bearing investment portfolio was fixed rate and 34% or $0.8 billion was floating rate. On a

Expenses totaled $41.3 million and $78.7 million, respectively, for the three and six months ended September 30, 2010, of which $27.6 million and $52.3 million, respectively, were base management fees and performance-based incentive fees and $10.7 million and $20.6 million, respectively, were interest and other credit facility expenses. Of these expenses, general and administrative expenses totaled $3.0 million and $5.8 million, respectively, for the three and six months ended September 30, 2010. Expenses totaled $33.0 million and $66.2 million, respectively, for the three and six months ended September 30, 2009, of which $26.1 million and $51.1 million, respectively, were base management fees and performance-based incentive fees and $4.4 million and $9.5 million, respectively, were interest and other credit facility expenses. Of these expenses, general and administrative expenses totaled $2.5 million and $5.7 million, respectively, for the three and six months ended September 30, 2009. Expenses consist of base investment advisory and management fees, insurance expenses, administrative services fees, legal fees, directors’ fees, audit and tax services expenses, and other general and administrative expenses. The increase in expenses from the three and six months periods ended September 2010 versus the three and six months periods ended September 2009 was primarily related to the increase in interest and other credit facility expenses due to the December 2009 amendment to our revolving credit facility.

The Company’s net investment income totaled $50.2 million and $91.0 million, or $0.26, and $0.48, on a per average share basis, respectively, for the three and six months ended September 30, 2010. For the three and six months ended September 30, 2009, net investment income totaled $51.4 million and $100.7 million, or $0.34, and $0.68, on a per average share basis, respectively.

The Company had investment sales and prepayments totaling $127 million and $241 million, respectively, for the three and six months ended September 30, 2010. For the three and six months ended September 30, 2009, investment sales and prepayments totaled $30 million and $101 million, respectively. Net realized losses for the three and six months ended September 30, 2010 were $89.4 million and $85.5 million, respectively. For the three and six months ended September 30, 2009, net realized losses totaled $3.1 million and $101.3 million, respectively. Net realized losses for the three and six months ended September 30, 2010 and the three and six months ended September 30, 2009 were primarily derived from selective exits of underperforming investments.

respectively. The earnings per average share were $0.35 for the three months ended September 30, 2010. The loss per average share was $0.08 for the six months ended September 30, 2010. For the three and six months ended September 30, 2009, earnings per average share were $0.71 and $1.31, respectively.

The Company’s liquidity and capital resources are generated and generally available through periodic follow-on equity offerings, our senior secured, multi-currency $1.61 billion revolving credit facility (see note 12 within the Notes to Financial Statements) (the “Facility”) , investments in special purpose entities in which we hold and finance particular investments on a non-recourse basis, as well as from cash flows from operations, investment sales of liquid assets and prepayments of senior and subordinated loans and income earned from investments. At September 30, 2010, the Company had $1.1 billion in borrowings outstanding and $515 million of unused capacity on its Facility. In the future, the Company may raise additional equity or debt capital, among other considerations. The primary use of funds will be investments in portfolio companies, reductions in debt outstanding and other general corporate purposes. On May 3, 2010, the Company closed on its most recent follow-on public equity offering of 17.25 million shares of common stock at $12.40 per share raising approximately $204 million in net proceeds. As of September 2010, Apollo Investment received an additional lender commitment with a maturity date of April 12, 2013 of $50,000 under the Facility. Additionally, on September 30, 2010, the Company entered into a note purchase agreement, providing for a private placement issuance of $225,000 in aggregate principal amount of five-year, senior secured notes with a fixed interest rate of 6.25% and a maturity date of October 4, 2015 (the “Senior Secured Notes”). On October 4, 2010, the Senior Secured Notes were sold to certain institutional accredited investors pursuant to an exemption from registration under the Securities Act of 1933, as amended. Interest on the Senior Secured Notes will be due semi-annually on April 4 and October 4, commencing on April 4, 2011. The proceeds from the issuance of the Senior Secured Notes were used to fund new portfolio investments, reduce other outstanding borrowings and/or commitments on the Company’s Facility and for general corporate purposes. As of October 4, 2010, the Company’s Facility had outstanding commitments totaling $1.58 billion.

Read the The complete Report

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