 MCLEAN, Va., July 28, 2020 GLOBE NEWSWIRE -- Gladstone Investment Corporation Nasdaq: GAIN the Company today announced earnings for its first quarter ended June 30, 2020. Please read the Companys Quarterly Report on Form 10-Q filed today with the U.S. Securities and Exchange Commission the SEC, which is available on the SECs website at or the investor relations section of the Companys website at Summary Information: dollars in thousands, except per share data unaudited: June 30, 2020 March 31, 2020 Change Change For the quarter ended: Total investment income 10,707 11,982 1,27510.6 Total expenses, netA 6,534 2,7849,318 NM Net investment incomeA 4,173 14,766 10,59371.7 Net realized gain loss 753 10,87911,632 NM Taxes on deemed distribution of long-term capital gains 10,26010,260 NM Net unrealized depreciation 4,88731,22926,342 84.4 Net increase decrease in net assets resulting from operationsA 39 37,60237,641 NM Net investment income per weighted-average common shareA 0.13 0.45 0.3271.1 Adjusted net investment income per weighted-average common shareB 0.11 0.19 0.842.1 Net increase decrease in net assets resulting from operations per weighted-average common shareA 1.151.15 100.0 Cash distribution per common share from net investment income 0.28 0.19 0.09 47.4 Cash distribution per common share from net realized gainsC 0.02 0.03 0.0133.3 Weighted-average yield on interest-bearing investments 11.8 12.4 0.64.8 Total dollars invested 300 50,145 49,84599.4 Total dollars repaid and collected from sales 620 2,943 2,32378.9 As of: Total investments, at fair value 561,342 565,924 4,5820.8 Fair value, as a percent of cost 92.092.80.80.9 Net assets 360,869 369,031 8,1622.2 Net asset value per common share 10.87 11.17 0.302.7 Number of portfolio companies 28 28 A Inclusive of 0.8 million, or 0.02 per weighted-average common share, and 8.4 million, or 0.26 per weighted-average common share, of capital gains-based incentive fees reversed during the three months ended June 30, 2020 and March 31, 2020, respectively. These fees were accruedreversed in accordance with United States generally accepted accounting principles U.S. GAAP, where such amounts were not contractually due under the terms of the investment advisory agreement for the respective periods. Also see discussion under Non-GAAP Financial Measure Adjusted Net Investment Income below. B See Non-GAAP Financial Measure Adjusted Net Investment Income below for a description of this non-GAAP measure and a reconciliation from Net investment income to Adjusted net investment income, including on a weighted-average per share basis. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. C Estimates of tax characterization made on a quarterly basis may not be representative of the actual tax characterization of distributions for the full year. Estimates made on a quarterly basis are updated as of each interim reporting date. Highlights for the Quarter: During the quarter ended June 30, 2020, the following significant events occurred: Distributions and Dividends: Paid the following monthly cash distributions to common stockholders and dividends to preferred stockholders for each of April, May, and June 2020: 0.07 per common share; 0.13020833 per share to holders of our 6.25 Series D Cumulative Term Preferred Stock Series D Term Preferred Stock; and 0.13281250 per share to holders of our 6.375 Series E Cumulative Term Preferred Stock Series E Term Preferred Stock. Paid a 0.09 per common share supplemental distribution in June 2020. At-the-market ATM program activity: Sold 155,560 shares of our common stock under our Common Stock ATM Program with Wedbush Securities, Inc. Wedbush at a weighted-average gross price of 11.39 per share and raised approximately 1.7 million in net proceeds. These sales were above our then current estimated NAV per share. Sold 95,475 shares of our Series E Term Preferred Stock under our Series E ATM Program with Wedbush with a total liquidation preference of 2.4 million and raised approximately 2.3 million in net proceeds.First Quarter Results: Net investment income for the quarters ended June 30, 2020 and March 31, 2020 was 4.2 million, or 0.13 per weighted-average common share, and 14.8 million, or 0.45 per weighted-average common share, respectively. This decrease was primarily a result of an increase in total expenses, net of credits as well as a decrease in total investment income, quarter over quarter.Total investment income during the quarters ended June 30, 2020 and March 31, 2020 was 10.7 million and 12.0 million, respectively. The quarter over quarter decrease was due to a 0.9 million decrease in interest income, primarily due to placing one investment on non-accrual status in the current quarter, as well as a 0.4 million decrease in success fee income, the timing of which can be variable.Total expenses, net of credits, during the quarters ended June 30, 2020 and March 31, 2020, were 6.5 million and 2.8 million, respectively. The quarter over quarter increase was primarily a result of a 0.8 million reversal of previously accrued capital gains-based incentive fees due to the net impact of realized and unrealized gains and losses in the current quarter compared to an 8.4 million reversal in the prior quarter and a 1.1 million reduction of credits to fees from the Adviser. Remaining expenses were relatively consistent quarter over quarter, with a slight increase primarily due to higher tax and stockholder expenses.Net asset value per common share as of June 30, 2020 decreased to 10.87, compared to 11.17 as of March 31, 2020. The quarter over quarter decrease was primarily due to 9.9 million, or 0.30 per common share, of distributions paid to common shareholders, and 4.9 million, or 0.15 per common share, of net unrealized depreciation of investments, partially offset by 4.2 million, or 0.13 per common share, of net investment income and 0.8 million, or 0.02 per common share, of net realized gains on investments.Subsequent Events: After June 30, 2020, the following significant events occurred: Investment Activity: In July 2020, we invested 46.9 million in Mason West, LLC Mason West through a combination of secured first lien debt and preferred equity. Mason West, headquartered in Placentia, California, is a provider of engineered seismic restraint and vibration isolation solutions. ATM program activity: Subsequent to June 30, 2020 and through July 20, 2020, we sold 1,802 shares of our Series E Term Preferred Stock under our Series E ATM Program with Wedbush with a total liquidation preference of 45 thousand and raised approximately 43 thousand in net proceeds. Distributions and dividends: In July 2020, our Board of Directors declared the following monthly cash distributions to common stockholders and monthly dividends to holders of our series of term preferred stock:Record Date Payment Date Distribution per Common Share Dividend per Share of Series D Term Preferred Stock Dividend per Share of Series E Term Preferred Stock July 24, 2020 July 31, 2020 0.07 0.13020833 0.13281250 August 24, 2020 August 31, 2020 0.07 0.13020833 0.13281250 September 23, 2020 September 30, 2020 0.07 0.13020833 0.13281250 Total for the Quarter: 0.21 0.39062499 0.39843750 COVID-19 Impact: We continue to closely monitor and work with our portfolio companies to navigate the significant challenges created by the COVID-19 pandemic and are focused on ensuring the safety of the Advisers and Administrators personnel and of the employees of our portfolio companies, while also managing our ongoing business activities. While we are closely monitoring all of our portfolio companies, our portfolio continues to be diverse from a geographic and industry perspective. Through proactive measures and continued diligence, the management teams of our portfolio companies continue to demonstrate their ability to respond effectively and efficiently to the challenges posed by COVID-19 and related orders imposed by state and local governments, including paused or reversed reopening orders. We believe we have sufficient levels of liquidity to support our existing portfolio companies, as necessary, and selectively deploy capital in new investment opportunities. Non-GAAP Financial Measure Adjusted Net Investment Income: On a supplemental basis, the Company discloses Adjusted net investment income, including on a per share basis, which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with U.S. GAAP non-GAAP. Adjusted net investment income represents net investment income, excluding capital gains-based incentive fees. The Company uses this non-GAAP financial measure internally in analyzing financial results and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company. The Companys investment advisory agreement provides that a capital gains-based incentive fee is determined and paid annually with respect to realized capital gains but not unrealized appreciation to the extent such realized capital gains exceed realized capital losses and unrealized depreciation on investments for such year. 