Apollo Investment Corporation’s (AINV - Free Report) shares lost 1.3% following the release of first-quarter fiscal 2020 (ended Jun 30) results last week. Net investment income of 43 cents per share lagged the Zacks Consensus Estimate by a penny. Also, the bottom line declined 14% year over year.
The results were hurt by lower total investment income. However, decline in expenses and decent portfolio activity during the quarter were tailwinds.
Net investment income was $28.2 million, down 18.3% from the prior-year quarter.
Total Investment Income & Expenses Decline
Total investment income was $56.7 million, down 14.8% year over year. The fall was mainly due to lower Payment-in-kind interest income.
Total expenses, net of management and performance-based incentive fee waive, and expense reimbursements declined 11.1% year over year to $28.4 million.
Decent Balance Sheet Position
As of Jun 30, 2020, the company’s cash and cash equivalents (including foreign currencies) totaled $44.4 million, up from $43.7 million on Mar 31, 2020.
Further, as of Jun 30, 2020, Apollo Investment had $1.76 billion of debt obligations. This included $350 million of Senior Unsecured Notes and $1.410 billion outstanding under the credit facility.
Apollo Investment’s total assets amounted to $2.81 billion, down from $2.87 billion as of Mar 31, 2020.
Net asset value was $15.29 per share, down from $15.70 as of Mar 31, 2020.
Modest Portfolio Activity
The fair value of Apollo Investment’s total investment portfolio was $2.67 billion as of Jun 30, 2020.
In the reported quarter, the company originated $137.9 million of investments and had $163.8 million of repayments.
Continued decent origination volumes are expected to support Apollo Investment’s financials. Also, lower expenses will likely aid the bottom line to some extent.
Currently, it carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
Hercules Capital Inc.’s (HTGC - Free Report) second-quarter 2020 net investment income of 32 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line also declined 11.1% from the year-ago reported figure.
Ares Capital Corporation’s (ARCC - Free Report) second-quarter 2020 core earnings of 39 cents per share beat the Zacks Consensus Estimate by a penny. However, the bottom line declined 20.4% year over year.
TriplePoint Venture Growth BDC Corp.’s (TPVG - Free Report) second-quarter 2020 net investment income of 38 cents per share surpassed the Zacks Consensus Estimate of 36 cents. However, the bottom line declined 7% from the year-ago quarter.
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